Explanation (Figures in parentheses are existing rates)

Provides for a pension of $100 a month to all veterans of World War I discharged under conditions other than dishonorable who had at least 1 days of service and who have attained the age of 60 years. Payable in addition to any pension, compensation, or retirement pay received by

veteran.

Provides for a pension of $100 a month to all veterans of World War I discharged under conditions other than dishonorable who had 90 days of service or were discharged for service-connected disability. Payable without regard to annual income, "whether derived from payments of social security benefits, railroad retirement benefits, pensions, annuities, or otherwise."

Provides for a pension of $100 a month to all honorably discharged veterans of World War I who had at least 1 day of service and who have attained the age of 62 years. Payable in addition to compensation benefits to which individual is otherwise entitled.

Provides for a pension of $100 a month, and $135.45 if in need of regular aid and attendance, which is the rate in effect prior to enactment of Public Law 86-211, to all veterans of World War I discharged under conditions other than dishonorable with 90 days' service or who were discharged for service-connected disability. Income limitations of $2,400 if unmarried and $3,800 if married or with children but excludes income from retirement (including social security and railroad retirement) pensions or annuities, whether payable by law, contract, or otherwise. See H.R. 210.

Extends all benefits available to veterans of World War I and their widows and children to persons who served in Mexico or the Mexican border between May 9, 1916, and April 6, 1917, and their widows and children.

Proposes a pension to all veterans of World War I, World War II, or Korean conflict, i discharged under conditions other than dishonorable who attain the age of 62 years (or suffering from at least 30% permanent service-connected disability) and who had 90 days of service, or discharged for service-connected disability, and to unremarried widows or children of veterans of all wars at such rates applicable in the case of veterans of the Spanish-American War and their widows and children.

Explanation

(Figures in parentheses are existing rates)

Excludes capital gain from sale of a home from income in computing annual income for pension purposes, as well as for purposes of death compensation and dependeney and indemnity compensation for parents.

See H.R. 209.

Provides veteran benefits for persons who served in the Women's Army Auxiliary Corps during World War II on a more liberal basis. Provides pension equivalent to compensa

tion paid to those with service-connected disability 20 percent in degree ($36.00) to veterans of World War I, World War II, or Korean conflict who are unable to obtain employment because of inability to meet reasonable standards of physical fitness.

Provides that if "competent medical evidence" is presented to VA indicating veteran is permanently and totally disabled, unemployability will not be a factor in determining eligibility for a pension.

Excludes payments under workmen's compensation or industrial accident law of a State or the United States in computing annual income for pension purposes.

Administration Position

*** as H.R. 397 would grant an unqualified exclusion inconsistent with the basic purpose of the benefits concerned, I do not favor the bill.

***enactment of H.R. 397 would not be in accord with the program of the President."

"I do not believe that the bill merits favorable consideration."

"The law and regulations governing assignment of permanent and total ratings are considered liberal and reasonable. accordingly, I do not recommend * ⚫ favorable consideration."

"Under existing law, non-serviceconnected disability and death pension is provided to otherwise eligible veterans and their dependents on the general principle of need. Any of the bills, if enacted, would have the effect of permitting persons ineligible for pension benefits because of excess income to become eligible therefor by not counting as income money available for their support. The authorization of such exclusions would not be in keeping with the philosophy of the programs which provide benefits based on need. In addition, the enactment of any of the bills might well stimulate requests for comparable exclusions by persons receiving other payments not covered under existing law or any of the proposals. Accordingly, for the reasons outlined, I recommend that none of the bills be favorably considered.*** "Advice has been received from the Bureau of the Budget that it believes the amount rather than the source of income should continue to determine, in general, eligibility for and the amount of veterans' pensions, and that enactment of any of these bills would seriously undermine the principle of need. The Bureau further advises that there is no objection to the presentation of this report, from the standpoint of the administration's program."

Explanation (Figures in parentheses are existing rates)

Repeals provisions of law requiring that wife's income in excess of $1,200 be counted as income of veteran and permitting consideration of net worth in determining eligibility of veteran or his dependents to pension payment. Excludes payments of retirement, annuities, endowments (such as social security or railroad retirement) in computing income. Pension paid to veteran who is married as follows: If annual income $1,500 ($600) or less, $100 ($85); if more than $1,500 ($600) but not more than $1,800 ($1,200), $75 ($70); if more than $1,800 (1,200), but not more than $2,100 ($1,800), $50 ($40).

un

Pension paid to married veterans, whether or not living with or supporting wife, or to veterans with child or children, on following basis: Annual income $2,400 ($1,000) or less, $100 ($90); income over $2,400 ($1,000) but not more than $2,800 ($2,000), $75 ($75); income over $2,800 ($2,000) but not more than $3,200 ($3,000), $50 ($45).

If veteran has children and wife, same income limits to apply and pay for wife and 1 child $110 ($95), $85 ($75), and $60 ($45); for wife and 2 children $120 ($100), 895 (875), $70 ($45); for wife and 3 children $130 ($100), $105 ($75), and $80 ($45).

Excludes $10,000 commercial life insurance from income for pension purposes.

Restores eligibility of remarried widows to pension, compensation, dependency, and indemnity compensation or housing where remarriage or remarriages dissolved by death or divorce without fault of widow." See H.R. 209.

Considers veterans with active pulmonary tuberculosis permanently and totally disabled for pension purposes while hospitalized therefor.

"the 86th Congress enacted legislation concerning reduction or discontinuance of benefits which is inconsistent with the apparent purpose of H.R. 728.

"It should be noted that payments made by the Veterans Administration to or on account of beneficiaries are exempt from taxation by existing law....

"In view of the need for technical revisions and clarification concerning the exact purpose of the bill, we have no further comments to submit."

Explanation (Figures in parentheses are existing rates)

Prohibits payment of pension to aliens for any month when not resident of United States for some portion of that month. If disqualified alien has dependents, payment may be apportioned but no amount paid in excess of pension paid to dependent if alien were dead.

Cost

Savings: 1st year, $18,509,000. "Based on indicated slight increases in foreign caseloads, it is estimated that savings would increase slightly over the next 4 years.

Administration Position

"Veterans with which the bill is concerned have performed honorable service in the Armed Forces of the United States during a period of war. Their alienage was not considered a bar to such service. With respect to alienage, it should also be noted that Filipino veterans of war service in our Armed Forces, and their dependents, became aliens without any individual decision on their part, upon establishment of the Republic of the Philippines in 1946. The bill would apply to such of these persons who are nonresidents, but would not apply to expatriated U.S. citizens residing, for example, in the Philippines. "Considering the impact of

H.R. 868 on foreign nationals, your committee may desire to secure the views of the Department of State on the bill.

"In view of the foregoing, I am unable to recommend favorable consideration of H.R. 868."

Explanation

(Figures in parentheses are existing rates)

Cost

"We are unable to furnish an estimate of cost of the bill as a whole because there are no data on which to base a worthwhile estimate of cost of sections 3 and 5. "However, for the first year section 2 of the bill is estimated to cost $262,234,000, affecting a total of 1,104,800 veterans; section 4 is esti

mated to cost $73,874,000, affecting 522,500 widows; and section 6 is estimated to cost $2,000,000, affecting 3,000 veterans The total estimated first year cost of all three sections is $338,108,000. "This partial estimate of first year additional cost assumes that all eligible persons would qualify.

Both existing law and bill provide Increase of $15 for each additional child.

Repeals provision which requires spouse's income in excess of $1,200 to be counted as veteran's income where he is living with his wife and wife's income may be reasonably expected to be available for his use.

Provides additional exclusions from income of (a) amounts equal to amounts paid by veteran for expenses of last illness and burial of his deceased spouse or child and (b) amounts paid by a veteran, widow, or child for unusual medical expenses.

Repeals provision for reduction of pension during VA hospitalization or domiciliary care.

Because of the limited amount of experience gained under the new pension law, this estimate, while in the proper magnitude, may not be firm.

For the same reasons, though an increased additional cost may reasonably be anticipated, no precise estimate for each of the succeeding 4 years can be indicated."

Administration Position

"The rates under the new pension program were considered reasonable when adopted by the Congress in August 1959. In our opinion, the proposed increases for this needs program are not warranted in the light of the change in the cost of living since that time. The Consumer Price Index of the Bureau of Labor Statistics for May 1961 shows an increase of only 2.1 percentum over the August 1959 index. Under these circumstances, and since the proposed reduced number of income categories would in effect be a step backward to the 'all or nothing pension feature purposely eliminated by the new law, I do not favor enactment of sections 2 and 4 of the bill.

"Section 3 of H.R. 886 proposes to repeal 38 U.S.C. 521 (e). That subsection provides essentially that in determining annual income for veterans' pension purposes, all income of a spouse which is reasonably available to or for the veteran, except $1,200, shall be considered as his income unless in the judgment of the Administrator to do so would work a hardship on the veteran. As you know, this provision was included in the new pension program under Public Law 86-211 to eliminate a deficiency under the old law by providing a more realistic test of need in the case of married veterans. I believe the provision is reasonable, consistent with the intended purpose of veterans' pension benefits, and should be retained. "Section 5 of H.R. 886 proposes to

vet

amend 38 U.S.C. 503 to authorize the exclusion of amounts equal to amounts paid by a veteran for expenses of the last illness and burial of his deceased spouse or child in determining annual income in the payment of disability pension under chapter 15, US. Code. The section would further amend 38 U.S.C. 503 to direct the Administrator of Veterans' Affairs to adopt regulations to exclude from income for pension purposes amounts paid by a eran, widow, or child for unusual medical expenses. We recognize the argument which can be made in support of these changes. However, as a practical matter, we do not have data to support the changes which are tantamount to additional income exclusions Exclusions from income are basically inconsistent with a program based on need and their further extension would tend to produce requests for additional ones.

"Section 6 of the bill would repeal subsection (d) of 38 U.S.C. 3203 and restore the provisions of section 3203 which were in effect on June 30, 1960.

"Section 6 of the Veterans' Pension Act of 1959 amended section 3203