pensation would become a declining program. We doubt that it was intended that such benefits would thereafter be increased or extended. An increase in death compensation rates would be a distinct departure from the outlined concept. Accordingly, we oppose the enactment of sections 5 and 6. Under section 7 of S. 3072, certain non-service-connected deaths would be conclusively presumed service connected if the veteran (a) was discharged or retired for a service-connected disability permanent and total in nature, and at the time of his death was in receipt of or entitled to receive compensation for a service-connected disability permanent and total in nature; or (b) had been in receipt of or entitled to receive compensation for a permanently and totally serviceconnected disability for 20 or more years. Such presumption of service connection would be specifically inapplicable where death occurred as a result of accidental causes having no relationship to the serviceconnected disability. Where service-connected disability is found to be the principal or contributory cause of death, such death is considered to be service connected. These determinations are made on a very liberal basis. For example, there are disabilities which by their very nature are so overwhelming that eventual death can be anticipated irrespective of coexisting conditions. Even though such disabilities are non-serviceconnected and the primary cause of death, consideration is given as to whether the coexisting service-connected conditions were of such severity as to have a material influence in accelerating death. Where death has been so accelerated, it will be considered service connected. The proposal would thus place the survivors of certain veterans who die of a non-service-connected cause on a parity with the survivors of veterans who die of an actually service-connected cause. In the cases of war service veterans, the bill would have the liberalizing effect of providing (a) greater benefits for widows and children with no requirement as to need, and (b) basic eligibility of parents for benefits where none now exists. In the cases of veterans of peacetime service, the bill would provide basic eligibility for widows, children and parents for monetary death benefits where none now exists. The Veterans' Administration believes that existing law and regulations provide very liberal and equitable conditions for determining that death is service connected. Moreover, there is no justification for presuming a death to be service connected when the evidence does not support such a finding. We therefore oppose enactment of section 7. The estimated cost of enactment of S. 3072 approximates $95.4 million the first year, gradually increasing to $101.5 million the fifth year. In summary, we oppose enactment of S. 3072 for the reasons set forth above and urge, in lieu thereof, that the committee favorably consider the enclosed draft bill. Advice has been received from the Office of Management and Budget that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely, Enclosure. DONALD E. JOHNSON, A BILL To amend title 38, United States Code, to increase rates of disability compensation and dependency and indemnity compensation, and to provide for automatic adjustment thereof commensurate with future increases in the cost of living, and for other purpose Be it enacted by the Senate and House of Representatives of the United States in Congress assembled, That (a) section 314 of title 38, United States Code, is amended (1) by striking out "$28" in subsection (a) and inserting in lieu thereof "$31"; (2) by striking out "$51" in subsection (b) and inserting in lieu thereof "$57"; (3) by striking out "$77" in subsection (c) and inserting in lieu thereof "$86"; (4) by striking out "$106" in subsection (d) and inserting in lieu thereof "$119"; (5) by striking out "$149" in subsection (e) and inserting in lieu thereof "$167"; (6) by striking out "$179" in subsection (f) and inserting in lieu thereof "$200"; (7) by striking out "$212" in subsection (g) and inserting in lieu thereof "$237"; (8) by striking out "$245" in subsection (h) and inserting in lieu thereof "$274"; (9) by striking out "$275" in subsection (i) and inserting in leiu thereof "$308"; (10) by striking out "$495" in subsection (j) and inserting in lieu thereof "$554"; (11) by striking out "$616" and "$862" in subsection (k) and inserting in lieu thereof "$690" and "$965", respectively; (12) by striking out "$616" in subsection (1) and inserting in lieu thereof "$690"; (13) by striking out "$678" in subsection (m) and inserting in lieu thereof "$759"; (14) by striking out "$770” in subsection (n) and inserting in lieu thereof "$862"; (15) by striking out "$862" in subsections (o) and (p) and inserting in lieu thereof "$965"; (16) by striking out "$370" in subsection (r) and inserting in lieu thereof "$414"; and (17) by striking out “$554” in subsection (s) and inserting in lieu thereof "$620". (b) The Adininistrator of Veterans' Affairs may adjust administratively, consistent with the increases authorized by this section, the rates of disability compensation payable to persons within the purview of section 10 of Public Law 85-857 who are not in receipt of compensation payable pursuant to chapter 11 of title 38, United States Code. SEC. 2. Section 315 (1) of title 38, United States Code, is amended (1) by striking out "$31" in subparagraph (A) and inserting in lieu thereof "$35"; (2) by striking out "$53" in subparagraph (B) and inserting in lieu thereof "$59"; (3) by striking out "$67” in subparagraph (C) and inserting in lieu thereof "$75"; (4) by striking out "$83" and "$15" in subparagraph (D) and inserting in lieu thereof "$93" and "$17", respectively; (5) by striking out “$21" in subparagraph (E) and inserting in lieu thereof "$24"; (6) by striking out "$36” in subparagraph (F) and inserting in lieu thereof "$40"; (7) by striking out "$53" and "$15" in subparagraph (G) and inserting in lieu thereof "$59" and "$17", respectively; (8) by striking out "$25" in subparagraph (H) and inserting in lieu thereof "$28"; and (9) by striking out "$48" in subparagraph (I) and inserting in lieu thereof "$54". SEC. 3. (a) Chapter 11 of title 38, United States Code, is amended by adding at the end thereof the following new section: "§ 363. Automatic cost-of-living increases for disability compensation "(a) The rates payable under sections 314 (except the $47 rate in subsection (k)), and 315 of this title, shall be increased by such percentage as the Secretary of Health, Education, and Welfare shall certify in the Federal Register for social security recipients as a cost-of-living increase under section 215 of the Social Security Act, effective the same date as the latter increase. "(b) Where a rate so determined involves a fraction of a dollar, the amount payable shall be fixed at the nearest dollar, with fifty cents being increased to the next higher dollar. "(c) The Administrator shall adjust administratively, consistent with the increases authorized by this section, the rates of disability compensation payable to persons within the purview of section 10 of Public Law 85-857 who are not in receipt of compensation payable pursuant to chapter 11 of this title." (b) The analysis of such chapter 11 is amended by adding at the end thereof the following: "ş 363. Automatic cost-of-living increases for disability compensation." SEC. 4. Section 411 of title 38, United States Code, is amended to read as follows: "(a) Dependency and indemnity compensation shall be paid to a widow, based on the pay grade of her deceased husband, at monthly rates set forth in the following table: "If the veteran served as sergeant major of the Army, senior enlisted adviser of the Navy, chief master sergeant of the Air Force, or sergeant major of the Marine Corps, at the applicable time designated by sec. 402 of this title, the widow's rate shall be $308. "If the veteran served as Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, or Commandant of the Marine Corps, at the applicable time designated by sec. 402 of this title, the widow's rate shall be $573. "(b) If there is a widow with one or more children below the age of eighteen of a deceased veteran, the dependency and indemnity compensation paid monthly to the widow shall be increased by $25 for each such child. "(c) The monthly rate of dependency and indemnity compensation payable to a widow shall be increased by $63 if she is (1) a patient in a nursing home or (2) helpless or blind, or so nearly helpless or blind as to need or require the regular aid and attendance of another person. SEC. 5. Section 413 of title 38, United States Code, is amended to read as follows: . "Whenever there is no widow of a deceased veteran, entitled to dependency and indemnity compensation, dependency and indemnity compensation shall be paid in equal shares to the children of the deceased veteran at the following monthly rates: "(1) One child, $105. "(2) Two children, $152. (3) Three children, $196. "(4) More than three children, $196, plus $39 for each child in excess of three.' SEC. 3. (a) Subsection (a) of section 414 of title 38, United States Code, is amended by striking out "$55" and inserting in lieu thereof "$63". (b) Subsection (b) of section 414 of such title is amended by striking out "$92" and inserting in lieu thereof "$105". (c) Subsection (c) of sestion 414 of such title is amended by striking out “$47” and inserting in lieu thereof "$54". SEC. 6. (a) Chapter 13 of title 38, United States Code, is amended by adding at the end of subchapter II thereof the following new section: "§418. Automatic cost-of-living increases in dependency and indemnity compensation "(a) The rates of dependency and indemnity compensation payable under sections 411, 413, 414, and 415 of this chapter shall be increased by such percentage as the Secretary of Health, Education, and Welfare shall certify in the Federal Register for social security recipients as a cost-of-living increase under section 215, of the Social Security Act, effective the same date as the latter increase. "(b) Where a rate so determined involves a fraction of a dollar, the amount payable shall be fixed at the nearest dollar, with fifty cents being increased to the next higher dollar." (b) The analysis of such chapter 13 is amended by adding at the end of subchapter II thereof the following: § 418. Automatic cost-of-living increases in dependency and indemnity compensation." SEC. 7. This Act shall take effect as of March 1, 1974. [No. 117] COMMITTEE ON VETERANS' AFFAIRS, U.S. SENATE EXECUTIVE OFFICE OF THE PRESIDENT, Hon. VANCE HARTKE, OFFICE OF MANAGEMENT AND BUDGET, Chairman, Committee on Veterans' Affairs, DEAR MR. CHAIRMAN: This is in response to your request of March 11, 1974 for the views of this Office on S. 3072, a bill to amend title 38, Únited States Code, to liberalize the provisions relating to payment of dependency and indemnity compensation, and for other purposes. On March 12, 1974 draft legislation was submitted to the President of the Senate by the Administrator of Veterans' Affairs to provide for a 12-percent increase in veterans compensation benefits and a 14-percent increase for recipients of dependents and indemnity compensation (DIC) benefits. The draft bill would also provide for an automatic adjustment in these benefits to protect against future increases in the cost of living. In testimony before your Committee, also on March 12, 1974, the Veterans' Administration stated its reasons for recommending enactment of the Administration's proposal in lieu of S. 3072. We concur with the views expressed by the VA in its testimony and in its letter transmitting the Administration's draft bill to the Congress. Accordingly, we recommend enactment of the Administration's proposal in lieu of S. 3072. Enactment of the Administration's proposal would be in accord with the program of the President. Sincerely, WILFRED H. ROMMEL, Assistant Director for Legislative Reference. |