Projections of total living veterans in civil life,' by 5-year age groups, 5-year intervals, 1955-2000, June 30 1 Includes veterans of Spanish-American War, World War I, World War II, and Korean conflict. Projected number of living Spanish-American War veterans,1 by age group, 1955-75, as of June 30 Projections of World War I veterans in civil life, by age Projections of World War II veterans in civil life, by age Projections of all Korean conflict veterans in civil life, by age, 1955–20001 1 Service between June 27, 1950 and Jan. 31, 1955. Includes veterans who also served during World War II. 69.5 2 Less than 500. Projections of Korean conflict (no World War II service) veterans in civil life, by 5-year age groups: 5-year intervals, 1955-20001 1 Service between June 27, 1950 and Jan. 31, 1955. Excludes veterans who also served during World War II. 2 Less than 500. STATEMENTS OF GUY H. BIRDSALL, ASSISTANT ADMINISTRATOR FOR LEGISLATION, VETERANS' ADMINISTRATION, ACCOMPANIED BY HOWARD BERNSTEIN, OFFICE OF LEGISLATION, VETERANS' ADMINISTRATION; AND W. B. DYESS, DEPARTMENT OF VETERANS' BENEFITS, VETERANS' ADMINISTRATION Mr. BIRDSALL. Mr. Chairman, we have had excellent cooperation from the committee, and I will say that one of the biggest jobs we had was in connection with the matter of estimates of cost, where we do have a smaller organization. I would like to mention that specifically because they have done a wonderful job in the time allotted in trying to go through all these measures. We have endeavored in this presentation to briefly cover the substance of the bills by subject-matter; also indicating the highlights of effects and costs as we go along. Preliminary to that statement, I thought maybe it might be well to indicate a little bit about the nature of the benefits that you are dealing with, remembering, first, that as a matter of law there is a distinction between compensation and pension. Compensation for disability or death pertains solely to service-connected disability or or death. Pension, on the other hand, is not related to service connection. It is related to age, disability, and other requirements of the particular law. We have had, as has been indicated by the previous witnesses, a long history of pension legislation predicated upon war service. Pensions have not been previously granted for any but war service, including in that category the Indian wars, so to speak. Those pensions started with the Revolutionary War. The very first legislation to encourage the retention of the Armed Forces had to do with pay certificates, one-half pay for life. At that time the condi tions were unfavorable financially, and it was necessary later for the United States Congress to recognize the deficiencies in that and provide a more liberal provision on those certificates, as well as providing a service pension, as we refer to it. In the War of 1812, the pension law for them occurred many years after the war, compared to other wars. But it was eventually provided before the Civil War pension, and was provided for both the veterans and their dependents. The Civil War pension law's first enactment was in 1890, 24 years after the termination of hostilities, with a 90-day service requirement. Pensions were provided under that law for both the veterans and the dependents of the deceased veterans. As for the Spanish-American War, the first legislation was in 1918, when the widows of Spanish-American War veterans were provided a pension. The veterans came in in 1920 with a service pension, and under the current law we do not have the income limitation in connection with those pensions. As to World War I, the first legislation to grant benefits predicated upon non-service-connected disabilities was the act of July 3, 1930, which amended the World War Veterans Act, 1924, as amended, and incorporated a new paragraph, which established a benefit known as disability allowance. Provision was made in that law for the payment of a disability allowance to any veteran who was exempt from the payment of an income tax for the year preceding the time of application, at a rate of $12 a month for 25 percent disability, $18 a month for 50 percent, $24 a month for 75 percent, and $40 if he were permanently and totally disabled. By June 30, 1933, the effective date of the Economy Act, the act of March 20, 1933, Public Law No. 2 of the 73d Congress, there were approximately, as I recall it, 412,000 some World War I veterans on the disability allowance rolls; bearing in mind that with the passage of time from World War I it is obvious that with a 25-percent disability allowance there would be a considerable number on the rolls. That law was repealed, along with other laws, including even the Spanish War pension laws, by the Economy Act. In 1935, the service pension laws pertaining to Spanish-American War veterans and their dependents were restored without limitation. Under the Economy Act, Public Law No. 2, 73d Congress, March 20, 1933, part III, set up a disability pension pertaining to both veterans of the Spanish-American War and World War I. It is contained in Veterans Regulation 1 (a), as amended, which you have often heard referred to here. The pension provisions set up a disability pension, not an age pension, one for permanent and total disability not shown to be due to service. Under that part we do now have the rates of pension payable to veterans of World War I, World War II, and the Korean conflict, provided they show a permanent and total disability, and are otherwise eligible. In connection with that permanent and total disability, we do have a rate of $78.75, which is the rate if he is age 65, or if he has been on the rolls for 10 years at permanent and total, he gets $78.75. If he is just permanently and totally disabled without having been on the rolls any length of time, he then gets $66.15. 73987-56- If he is so disabled, so helpless, as to be in need of regular aid and attendance, his rate is $135.45. That part III pension, as we refer to it, originally was subject to an income limitation of $1,000 if single and $2,500 if he had a dependent or dependents. That remained unchanged until some years later, when that limitation was changed in 1952 for the single veteran to $1,400, and the one with dependents, to $2,700. Those are your current income limitations. Now, in connection with the determination of permanent-total disability, that is carried partly in the rating schedule of 1945, and partly in the extension of the schedule, No. 5, which carries in detail not only the manner in which we determine permanent and total disability, which is under what we believe to be a liberal basis, but also gives you more detail at the end of it, showing what we do with marginal employment, farm employment, et cetera. I believe probably you will want that in the record. Mr. Bernstein will later in the statement cover the large aspects of that. The CHAIRMAN. That may be made a part of the record. (The material referred to follows:) EXCERPTS FROM SCHEDULE FOR RATING DISABILITIES, VETERANS' ADMINISTRATION, 1945 EDITION Paragraph 16 provides: "16. Total Disability Ratings Based on Unemployability of the Individual.— Total disability ratings under Veterans Regulation 1 (a), Parts I and II, and, when the requirements of permanence are met, under Part III, may be assigned without regard to the specific provisions of the rating schedule when the disabled person is, in the judgment of the rating agency, unable to secure or follow a substantially gainful occupation as a result of his disabilities: provided that, if there is only one disability, this disability shall be ratable at 60 percent or more, and that, if there are two or more disabilities, there shall be at least one disability ratable at 40 percent or more, and sufficient additional disability to bring the combined rating to 70 percent or more. Total disability ratings, when the above conditions are met, may be granted for deafness, the organic loss of speech, for the amputation or loss of use of either hand or of either lower extremity above the knee when followed by unemployability, as single disabilities, or for other organic disabilities or combinations including organic disabilities. For the above purpose of one 60 percent disability, or one 40 percent disability in combination, or the reduced numerical requirements according to age, the following will be considered as one disability: (1) disabilities of one or both upper extremities, or of one or both lower extremities, including the bilateral factor, if applicable, (2) disabilities resulting from a single accident, or (3) disabilities affecting a single body system, e. g., digestive, respiratory, cardiovascular-renal, neuropsychiatric, or (4) multiple injuries incurred in action." Paragraph 17, as revised by Extension 5, provides: When "17. For the purpose of Veterans Regulation 1 (a), part III only, the percentage requirements of the preceding paragraph are reduced, on the attainment of age 55, to a 60 percent rating for one or more disabilities, with no percentage requirement for any one disability. The requirement at age 60 will be a 50 percent rating for one or more disabilities. At age 65, there will be no percentage requirement other than one disability ratable at 10 percent or more. these reduced percentage requirements are met, and the disabilities involved are of permanent nature, rating as permanently and totally disabled will be assigned if the veteran is determined to be unable to secure and follow substantially gainful employment by reason of such disability. In making such determinations the following will be used as guides. "(a) Marginal employment, for example, on own farm, in own business, or at odd jobs, at less than half the usual hours of work or less than half the usual remuneration will not be considered incompatible with a deter |