organization authorized to serve with the Army, exclusive of the Army Nurse Corps. Thus, members of the corps served with, but not in, the Army. Section 11 of the 1942 act provided that members or their beneficiaries should have the benefits of the United States Employees' Compensation Act, as amended, where disability was incurred during service or death resulted from such a disability. However, hospitalization (including medical treatment), domiciliary care, and burial benefits administered by the Veterans' Administration were later made available to former members of the corps by Public Law 10, 78th Congress, approved March 17, 1943.

The act of July 1, 1943 (Public Law 110, 78th Cong.), which established the Women's Army Corps, repealed all of the 1942 act except section 11 which had conferred upon members of the Women's Army Auxiliary Corps the right to benefits under the Employees' Compensation Act. It was specifically provided that section 11 should not be applicable to personnel of the Women's Army Corps except in cases in which its applicability was based upon the status of such personnel as former members of the Women's Army Auxiliary Corps. Thus, while creating a new organization as a part of the Armed Forces to succeed the old organization which was not a part of the Armed Forces, the 1943 act did not purport to grant retroactive military status or benefits predicated upon a military status by reason of service in the Women's Army Auxiliary Corps.

It has been the general policy of the Congress to restrict benefits provided under laws administered by the Veterans' Administration to persons who actually served in the military or naval service of the United States, a distinction having usually been drawn as between members of the Armed Forces and persons engaged in civilian activities for the Government serving with or in aid of the Armed Forces. Examples of civilian groups performing related service were the merchant marine, the American National Red Cross, the Civil Air Patrol, the Women's Auxiliary Service Pilots, the American Field Service, civilian pilots of the Air Transport Command, the Army Transport Service, the Army Specialist Corps, and other organizations of a similar nature. Departure from the established policy by granting benefits based upon civilian service of a group which served with the Armed Forces might constitute a precedent for extending similar privileges to other civilian groups which also served with or in aid of our Armed Forces, and thus increased the demand upon the Congress for corresponding legislation in their favor.

It should be pointed out, however, that on March 2, 1954, the Senate of the United States passed S. 2040, 83d Congress, which would provide that active service in the Women's Army Auxiliary Corps on or after May 14, 1942, and before September 30, 1943, shall be deemed for all purposes to be active military service, provided active military service in the Armed Forces was also performed. This bill is now pending before the Committee on Armed Services, House of Representatives. The Senate committee report (Rept. No. 1031) to accompany S. 2040 contains a discussion of the nature of the service performed by members of the Women's Army Auxiliary Corps, with the conclusion of the committee that the facts indicated that such service was essentially military and different in certain respects from certain other civilian groups. Among other things, it was pointed out that members of other women's organizations, such as the

WAVES, Women Marines, and SPARS, established subsequent to the Women's Army Auxiliary Corps, were given the status of members of Reserve components at the outset and were serving in an active military capacity while their opposite members in the Army were considered to be in an auxiliary status only.

The broad question of whether service in the Women's Army Auxiliary Corps should be denominated military service retroactively in order to confer entitlement to veterans' benefits is peculiarly one for the Congress in view of the fact that the Congress has heretofore twice determined (Public Law 554, 77th Cong., and Public Law 110, 78th_Cong.) that such service should not be given a military status but has nevertheless made an exception with respect to hospital, medical, and burial benefits and has made provisions for the other mentioned women's organizations on a different basis.

Aside from this basic question of policy, the present bill raises a further question as to the extent to which such service should be recognized, if there is to be a change in the existing legislative policy on this group. S. 2040, 83d Congress, as passed by the Senate, requires that there must have been service in the Armed Forces in order for the service in the Women's Army Auxiliary Corps to be considered as military service for all purposes. In that respect it is somewhat similar to H. R. 56, 83d Congress, which is pending before your committee. In contrast, the subject bill does not contemplate subsequent service in the Armed Forces but does limit the coverage to those meeting the special conditions prescribed. Apparently the proposed restriction to persons discharged for disability rendering them physically unfit to perform further service in either the Women's Army Auxiliary Corps or the Women's Army Corps is based on the theory that such persons were thereby denied an opportunity to serve in an actual military capacity, with resulting benefits, in the

successor corps.

Others who may have incurred lesser disabilities as members of the Women's Army Auxiliary Corps would not be included. Moreover, the bill would not include those who served throughout the period without incurring disability and were honorably discharged. In each instance the kind and quality of service may have been substantially the same, and the question arises whether there is a sound basis for distinguishing one group from the other if legislation of this character is to be considered. The 90-day requirement, as well as the requirement that the discharge must have occurred prior to the establishment of the Women's Army Corps, also appear to be limitations which might seem to create preferences among those engaged in essentially the same kind of service with the Army of the United States.

Among the benefits which might become available in individual cases under the bill are disability and death compensation and pension, vocational rehabilitation training under Public Law 16, 78th Congress, as amended, loan assistance under title III of the Servicemen's Readjustment Act of 1944, as amended, assistance in obtaining an automobile under Public Law 187, 82d Congress, and assistance in acquiring specially adapted housing under Public Law 702, 80th Congress, as amended. Because of the delimiting dates under titles II and V of the Servicemen's Readjustment Act, it would appear that those covered by the bill would not be able to avail themselves of education and training or readjustment allowance benefits under that act.

Because of the lack of information indicating the number of persons who would meet the precise service requirements of the bill and the number among those eligible who would avail themselves of particular types of benefits, it is not feasible to attempt an estimate of the cost of this measure, if enacted. While it seems probable that the annual cost would not be relatively large, it is at the same time clear that a number of cases would be affected by the bill.

Advice has been received from the Bureau of the Budget that there would be no objection by that Office to the submission of this report to your committee.

Sincerely yours,

H. V. HIGLEY, Administrator.

[No. 210]

COMMITTEE ON VETERANS' AFFAIRS, HOUSE OF REPRESENTATIVES

VETERANS' ADMINISTRATION, Washington 25, D. C., March 22, 1954.

Hon. EDITH NOURSE ROGERS,

Chairman, Committee on Veterans' Affairs,

House of Representatives, Washington 25, D. C.

DEAR MRS. ROGERS: This is in reply to your letter of February 1, 1954, requesting a report by the Veterans' Administration relative to H. R. 7535, 83d Congress, a bill to amend and revise the laws relating to pensions.

H. R. 7535, which would be cited as the "Pension Act of 1954," proposes to revise the laws pursuant to which pension based on nonservice-connected disability is payable to certain veterans of the Spanish-American War (including the Philippine Insurrection and Boxer Rebellion), World War I, World War II, or the Korean campaign, and pension based on age is payable to certain veterans of the Spanish-American War group.

Under the service pension laws, as reenacted by the act of August 13, 1935 (49 Stat. 614; 38 U. S. C. 368, 369), as amended and supplemented, a veteran of the Spanish-American War, including the the Philippine Insurrection and Boxer Rebellion, who served for 90 days or more and was discharged from active service under conditions other than dishonorable, or was discharged for disability incurred in service in line of duty, is eligible for pension based on non-serviceconnected disability or age. The veteran must have served during the period April 21, 1898, to July 4, 1902, or to July 15, 1903, if he served in the Moro Province. The rate is $96.75 per month for a veteran who has one-tenth or more disability or has attained age 62, or $129 per month in the case of an otherwise eligible veteran who is, on account of age or physical or mental disability, helpless or blind, or so nearly helpless or blind as to need or require the regular aid and attendance of another person. The payment of pension under the service pension laws is not subject to annual income limitations or to a requirement that the veteran be unemployable, and those laws do not contain any restriction on the payment of pension in the event

the non-service-connected disability was incurred as the result of the veteran's own willful misconduct or vicious habits.

Veterans of the Spanish-American War group who served for 70 days or more but less than 90 days (who were not discharged for disability incurred in service in line of duty), and who meet the other requirements of the service pension laws, are eligible for pension at the rate of $64.50 per month, or $83.85 per month if they are in need of regular aid and attendance. Since the terminal date of the war period was more than 50 years ago, it is apparent that, as a practical matter, all Spanish-American War veterans who performed the requisite 90- or 70-day period of service and were discharged under conditions other than dishonorable are currently eligible for pension of $96.75 or $64.50 per month based upon age.

Under existing law (pt. III, Veterans Regulation No. 1 (a), as: amended), veterans of the Spanish-American War, including the Philippine Insurrection and Boxer Rebellion, World War I, World War II, or of service in the Armed Forces of the United States on or after June 27, 1950, and prior to such date as shall thereafter be determined by Presidential proclamation or concurrent resolution of the Congress are eligible for pension based on permanent and total nonservice-connected disability. Pension is payable to any such veteran who served in the active military or naval service for a period of 90 days or more during such wars or the Korean conflict and who was discharged therefrom under conditions other than dishonorable, or who, having served less than 90 days, was discharged for disability incurred in service in line of duty. In comparison with the SpanishAmerican War dates applicable under the service pension laws, mentioned above, the service dates applicable to part III are as follows: Spanish-American War, April 21, 1898, to August 12, 1898; Philippine Insurrection, August 13, 1898, to July 4, 1902, or to July 15, 1903, if the veteran served in the Moro Province; and Boxer Rebellion, June 20, 1900, to May 12, 1901.

In addition, in order to qualify for pension under part III, a veteran must have been in active service before the cessation of hostilities and be suffering from non-service-connected permanent and total disability not incurred as a result of his own willful misconduct or vicious habits. A veteran of the Philippine Insurrection or Boxer Rebellion must also show actual participation in the insurrection or rebellion, during his period of service. The rate is $63 per month, except that where the veteran shall have been rated permanent and total and has been in receipt of pension for a continuous period of 10 years or reaches the age of 65 years and is permanently and totally disabled, the rate is $75 per month. A rate of $129 per month is authorized in the case of an otherwise eligible veteran who is, on account of age or physical or mental disability, helpless or blind, or so nearly helpless or blind as to need or require regular aid and attendance of another person. Such pension is not payable to an unmarried person whose annual income exceeds $1,400 or to a married person or any person with minor children whose annual income exceeds $2,700.

In the administration of the aforementioned provisions of part III, the determination of permanent total disability is made on a very liberal basis. Such a rating is granted (where the requirement of permanence is met) when there is a single disability of 60 percent or

2 or more disabilities 1 of which is 40 percent in degree, combined with other disability or disabilities to a total of 70 percent, and unemployability attributed thereto. Although age alone is not considered as a basis for entitlement to such pension, it is considered in association with disability and unemployability in determining permanent and total disability. The aforementioned percentage requirements are reduced on the attainment of age 55 to a 60 percent rating for 1 or more disabilities, with no percentage requirement for any 1 disability; at age 60 to a 50 percent rating for 1 or more disabilities; and at age 65 to 1 disability ratable at 10 percent or more. When these reduced percentage requirements are met and the disability or disabilities involved are of a permanent nature, a permanent and total disability rating will be assigned, if the veteran is determined to be unable to secure and follow substantially gainful employment by reason of such disability.

H. R. 7535, if enacted into law, would render the pension laws discussed above inoperative as to all new claims for pension filed after the 1st day of the 13th month following the bill's enactment and would require all of such claims to be considered solely under the proposed Pension Act of 1954. It would have no effect on the laws governing the payment of death pension to the widows and children of veterans. The eligibility provisions of the bill are essentially the same as those of part III of Veterans Regulation No. 1 (a), as amended, although the phraseology of those provisions has been changed. Certain substantive differences between the provisions of part III and of the bill are noted. The proposed Pension Act of 1954 would liberalize the delimiting dates of the Spanish-American War group from those specified in part III to those prescribed by the service pension laws. It would also remove the requirement of part III that a veteran must have actually participated in the Philippine Insurrection or Boxer Rebellion. Another difference in eligibility requirements, which is not of great consequence, is that the proposal would preclude payment of the $75 per month rate of pension unless the veteran (under age 65) has been rated as permanently and totally disabled for a continuous period of 10 years and has been in receipt of pension throughout such period. At the present time it is possible, under certain circumstances, to award the $75 per month rate to a veteran who has been rated permanently and totally disabled for a continuous period of 10 years but has not received pension during that entire period.

Further, subsection 5 (b) of the bill provides that in determining annual income for purposes of the income limitations governing the payment of pension under the proposal, certain listed payments shall be excluded. Comparable exclusions exist with respect to determining annual income for purposes of the part III income limitations, but in addition, certain amounts payable as overtime or other additional compensation to employees of the Federal Government and of the District of Columbia municipal government are also excluded. (See 5 U. S. C. 948.) In this connection, it may be noted in passing that the necessity of including item (6), "Payments of insurance under laws administered by the Veterans' Administration" in the subsection is not readily apparent in view of item (1) "Payments under laws administered by the Veterans' Administration because of disability or death."