LEGISLATION RELATING TO SERVICE-CONNECTED COMPENSATION FOR VETERANS AND THEIR DEPENDENTS (ALL WARS) WEDNESDAY, MARCH 21, 1956 HOUSE OF REPRESENTATIVES, Washington, D. C. The committee met, pursuant to call, at 10 a. m., in room 356, Old House Office Building, Hon. Olin E. Teague (chairman) presiding. The CHAIRMAN. The committee will come to order. The committee is meeting this morning to hear testimony concerning service-connected compensation for veterans and their dependents. (The various bills and the explanation of compensation bills are as follows:) [H. R. 147, 84th Cong., 1st sess.] A BILL Relating to compensation for veterans of World War II who have a service-connected or a service. aggravated tuberculous condition Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That any person, who, while serving in the Armed Forces of the United States at any time between December 6, 1941, and January 1, 1947, (1) contracted a tuberculous disease of a degree compensable under any law or regulation administered by the Veterans' Administration, or (2) suffered to a compensable degree an aggravation of a tuberculous disease, shall receive for life compensation at a rate not less than the rate provided by law or regulation for a 50 per centum disability incurred in service during World War II. VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Hon. OLIN E. TEAGUE, Chairman, Committee on Veterans' Affairs, House of Representatives, Washington 25, D. C. DEAR MR. TEAGUE: Reference is made to your request for a report by the Veterans' Administration on H. R. 340, 84th Congress, a bill to amend paragraph (A) (1) of Public Law No. 662, 79th Congress, chapter 869, 2d session, and for other purposes. The bill would amend paragraph (A) (1), section 1 of the act of August 8, 1946 (60 Stat. 908; 38 U. S. C. 739), to read as follows: "That (A). (1) where any veteran having neither wife, child, nor dependent parent is being furnished hospital treatment, institutional or domiciliary care by the Veterans' Administration in any Federal or State institution, including those controlled entirely under State laws such as State soldiers' homes or hospitals wherein the veterans and their wives are cared for, any pension, compensation, or retirement pay otherwise payable shall continue without taxation or reduction for any purpose whatever." For the convenience of the committee there is attached hereto a copy of paragraph (A) (1), section 1, of the act of August 8, 1946, new language proposed by the subject bill being italicized and language proposed to be deleted being enclosed in brackets. From the standpoint of legislative drafting it should be stated that paragraph (A) (2) which is not specifically repealed by the bill is inconsistent with its terms. Enactment of the bill would in effect repeal the existing paragraph (A) and also disrupt paragraph (B) relating to payments to incompetent veterans unless paragraph (B) were amended to stand alone. The purpose of including a reference to State homes in the bill is not understood for the reason that under the present provisions of paragraph (A) (1) of Public Law 662, 79th Congress, the prescribed partial suspension of pension, compensation, or retirement pay, otherwise payable, is applicable only to cases where the hospital or domiciliary care is being furnished by the Veterans' Administration. The domiciliary care in State homes is not furnished by the Veterans' Administration and consequently there is no existing provision requiring the reduction or suspension by the Veterans' Administration of benefits during the period when the veteran is in such State home. The relationship which the Federal Government bears to State soldiers' homes is defined in the act of August 27, 1888, as amended (24 U. S. C. 134), under which the Veterans' Administration is authorized to pay State homes at the rate of $700 per annum for every eligible veteran who is being maintained therein. The act provides that no State may be paid a sum exceeding one-half the cost of maintenance of each veteran, and also that "one-half of any sum or sums retained by State homes on account of pensions received from inmates shall be deducted from the aid provided for in this section." The significance of the provision in the bill that pension, compensation, or retirement pay shall "continue without taxation" is not apparent. Section 3 of the act of August 12, 1935 (49 Stat. 609; 38 U. S. C. 454a) provides that "Payments of benefits due or to become due shall not be assignable, and such payments made to, or on account of, a beneficiary under any of the laws relating to veterans shall be exempt from taxation." Certain benefits administered by the Veterans' Administration are thus exempted generally from taxation, including compensation, pension, and World War Î emergency officer disability retirement pay. The retirement pay of persons retired from active military service for disability is likewise exempted under existing laws from Federal income tax. The retired pay of personnel of the armed services retired for length of service or age is not exempt from Federal income tax, and such personnel are eligible, under certain conditions, to receive hospitalization or domiciliary care from the Veterans' Administration. The purpose of the bill as applied to the taxation of nondisability retired pay during periods of hospitalization or domiciliary care is not clear, since the bill does not specifically amend the tax laws and merely states that "retirement pay" shall "continue" without taxation. Should there be any intention to enlarge the groups now exempted from taxation, the committee will doubtless desire the views of the service departments and the Treasury Department, all of which departments would be primarily concerned in this phase. It is believed the committee will be interested in the legislative history of the present law which the bill seeks to amend. When the proposal which later became section 1 of the act of August 8, 1946, was pending before the Committee on World War Veterans' Legislation, House of Representatives, Gen. Omar N. Bradley, then Administrator of Veterans' Affairs, stated to the committee that after serious consideration of all the factors involved it was his conclusion that there was need for liberalization of the law then in effect (par. VI, Veterans Regulation No. 6 (a), as amended by sec. 13, Public Law 144, 78th Cong., July 13, 1943) which provided for reduction of pension, compensation, or retirement pay in the case of any veteran without dependents who was being furnished hospital treatment, institutional or domiciliary care by the United States or any political subdivision thereof so that a service-connected case would receive not more than $20 a month and a non-service-connected case not more than $8 a month. To remove the hardships and injustices which appeared to be prevalent in the majority of cases affected by the then-existing law, it was his recommendation that, except as to insane veterans being maintained in Government institutions, the law be changed to provide that "*** there shall be no reduction of pension, compensation, or retirement pay for any veteran having neither wife, child, nor dependent parent, who is being furnished hospital treatment, institutional or domiciliary care by the United States or any political subdivision thereof." The foregoing testimony appears at the bottom of page 51 of the committee hearings (hearings on H. R. 6340, 79th Cong.). While the committee recommended enactment of a less liberal rule than that suggested above, Public Law 662 represents considerable liberalization over the previous law (par. VI, Veterans Regulation No. 6 (a), as amended). H. R. 340 apparently is not designed to either increase or decrease the amount of pension, compensation, or retirement pay to which veterans are entitled under paragraph (A) (1), section 1, of the act of August 8, 1946, but to change the manner of payment. Pursuant to this purpose the Veterans' Administration would dis continue the withholding and lump-sum payment procedure prescribed by existing law. Such change could result in some saving in administrative costs but it is not possible to make a worthwhile estimate of such saving or to attempt a fiscal evaluation of other elements of the bill because of uncertainty respecting their effects. H. R. 340, 84th Congress, is identical with H. R. 4192, 80th Congress, H. R. 1238, 81st Congress, H. R. 1354, 82d Congress, and H. R. 322, 83d Congress, none of which passed the House of Representatives. In view of the various technical deficiencies of the bill and the difficulty of determining its exact purpose and effects, the Veterans' Administration would not be prepared to express a recommendation on the measure. Advice has been received from the Bureau of the Budget that while there would be no objection to the presentation of the report to the committee, the Bureau of the Budget recommends against the favorable consideration of legislation of this character because the President's Commission on Veterans' Pension is studying the entire complex of veterans' compensation and pension legislation and it is believed that any basic revisions in this field should be deferred pending such studies. Sincerely yours JOHN S. PATTERSON, Deputy Administrator (For and in the absence of H. V. Higley, Administrator). "That (A) (1) where any veteran having neither wife, child, nor dependent parent is being furnished hospital treatment, institutional or domiciliary care by the Veterans' Administration[,] in any Federal or State institution, including those controlled entirely under State laws such as State soldiers' homes or hospitals wherein the veterans and their wives are cared for, any pension, compensation, or retirement pay otherwise payable shall continue without taxation or reduction for any purpose whatever [until the first day of the seventh calendar month following the month of enactment hereof or the month of admission of such veteran for treatment or care, whichever is the later. If treatment or care extends beyond that period, the pension, compensation, or retirement pay, if $30 per month or less, shall continue without reduction, but if greater than $30 per month, the pension, compensation, or retirement pay shall not exceed 50 per centum of the amount otherwise payable or $30 per month, whichever is the greater: Provided, That if such veteran is discharged from such treatment or care upon certification by the officer in charge of the hospital, institution, or home, that maximum benefits have been received or that release is approved, he shall be paid in a lump sum such additional amount as would equal the total sum by which his pension, compensation, or retirement pay has been reduced under this section: Provided further, That where treatment or care is terminated by the veteran against medical advice or as the result of disciplinary action the amount by which any pension, compensation, or retirement pay is reduced hereunder, shall be paid to him at the expiration of six months after such termination or, in the event of his prior death, as provided in paragraph (2) hereof; and the pension, compensation, or retirement pay of any veteran leaving against medical advice or as the result of disciplinary action shall, upon a succeeding readmission for treatment or care, be subject to reduction, as herein provided, from the date of such readmission, but if such subsequent treatment or care is continued until discharge therefrom upon certification, by the officer in charge of the hospital, institution, or home in which treatment or care was furnished, that maximum benefits have been received or that release is approved, the veteran shall be paid in a lump sum such additional amount as would equal the total sum by which his pension, compensation, or retirement pay has been reduced under this section subsequent to such readmission]." [H. R. 340, 84th Cong., 1st sess.] A BILL To amend paragraph (A) (1) of Public Law Numbered 662, Seventy-ninth Congress, chapter 869, second session, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (A) (1) of Public Law Numbered 662, Seventy-ninth Congress, chapter 869, second session, be amended to read after the words, "Veterans' Administration", as follows: "In any Federal or State institution, including those controlled entirely under State laws such as State soldiers' homes or hospitals wherein the veterans and their wives are cared for, any pension, compensation, or retirement pay otherwise payable shall continue without taxation or reduction for any purpose whatever". [H. R. 373, 84th Cong., 1st sess.] A BILL To amend Veterans Regulation Numbered 1 (a), as amended, to establish for persons who served in the Armed Forces a statutory award for the total loss of hearing in one ear Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subparagraph (k), paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, is hereby amended to read as follows: "(k) If the disabled person, as the result of service-incurred disability, has suffered the anatomical loss or loss of use of one foot, or one hand, or blindness of one eye, having only light perception, or deafness of one ear, having absence of air and bone conduction, the rate of compensation provided in part I, paragraph II, subparagraphs (a) to (j), shall be increased by $42 per month; and in the event of anatomical loss or loss of use of one foot, or one hand, or blindness of one eye, having only light perception, or deafness of one ear, having absence of air and bone conduction, in addition to the requirement for any of the rates specified in subparagraphs (1) to (n), inclusive, of part I, paragraph II, as herein amended, the rate of compensation shall be increased by $42 per month for each such loss or loss of use, but in no event to exceed $360 per month." SEC. 2. The increased rates provided by this Act shall be effective from the first day of the first month following the passage of the Act. [H. R. 424, 84th Cong., 1st sess.] A BILL To amend Veterans Regulation Numbered 1 (a) to provide that certain chronic and tropical diseases becoming manifest within two years after separation from active service shall be presumed to be serviceconnected Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph I (c) of part I and paragraph I (d) of part II of Veterans Regulation Numbered 1 (a), as amended, are hereby amended by striking out "one year", and wherever appearing therein, and inserting in lieu therefor "two years". [H. R. 579, 84th Cong., 1st sess.] A BILL To provide increases in the monthly rates of compensation and pension payable to certain veterans and their dependents Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-RATES OF COMPENSATION SECTION 1. Subparagraphs (a) to (j), inclusive, of paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, are amended to read as follows: (a) If and while the disability is rated 10 per centum the monthly compensation shall be $19. "(b) If and while the disability is rated 20 per centum the monthly compensation shall be $38. "(c) If and while the disability is rated 30 per centum the monthly compensation shall be $57. "(d) If and while the disability is rated 40 per centum the monthly compensation shall be $76. "(e) If and while the disability is rated 50 per centum the monthly compensation shall be $95. "(f) If and while the disability is rated 60 per centum the monthly compensation shall be $114. "(g) If and while the disability is rated 70 per centum the monthly compensation shall be $133. "(h) If and while the disability is rated 80 per centum the monthly compensation shall be $152. "(i) If and while the disability is rated 90 per centum the monthly compensation shall be $171. "(j) If and while the disability is rated as total the monthly compensation shall be $190." SEC. 2. (a) Subparagraph (k), paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, is amended by deleting "$47" wherever it appears and inserting in lieu thereof "$50", and the subparagraph is further amended by increasing the maximum rate of compensation set forth therein to $440 per month. (b) The rate of compensation payable under subparagraph (1), paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, is hereby increased to $293. (c) The rate of compensation payable under subparagraph (m), paragraph II, part I Veterans Regulation Number 1 (a), as amended, is hereby increased to $344. (d) The rate of compensation payable under subparagraph (n), paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, is hereby increased to $388. (e) The rates of compensation payable under subparagraphs (o) and (p), paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, are hereby increased to $440. (f) The minimum rate of compensation payable under subparagraph (q), paragraph II, part I, Veterans Regulation Numbered 1 (a), as amended, for an arrested tuberculous disease, is hereby increased to $70. SEC. 3. The basic rate of compensation provided by section 202 of the World War Veterans' Act, 1924, as amended, for any disability rated as total is hereby increased to $190 per month. If and while the disability is rated as partial, the monthly compensation shall be a percentage of the compensation herein authorized for total disability, equal to the degree of the reduction in earning capacity resulting from the disability, but no compensation shall be payable for a reduction in earning capacity rated at less than 10 per centum. SEC. 4. The rate of compensation payable under section 202 (3) of the World War Veterans' Act, 1924, as amended, for the loss of the use of both eyes is hereby increased to $243; the rate payable under that section for the loss of use of both eyes and one or more limbs is hereby increased to $315; the rate payable under that section for double total permanent disability is hereby increased to $315; and the additional compensation payable under that section for the loss of the use of creative organ or one or more feet or hands is hereby increased to $50. SEC. 5. The additional sum payable under section 202 (5) of the World War Veterans' Act, 1924, as amended, for a disabled person in need of a nurse or attendant, is hereby increased to $74. SEC. 6. The minimum rate of compensation payable under section 202 (7) of the World War Veterans' Act, 1924, as amended, for an arrested tuberculous disease, is hereby increased to $70. TITLE II-RATES OF PENSION SEC. 7. Section 2 of the Act of June 28, 1934 (48 Stat. 1281), as amended (38 U. S. C. 504), is amended to read as follows: "SEC. 2. The monthly rates of pension shall be as follows: Widow but no child, $54; widow and one child, $67.50 (with $8 for each additional child); no widow but one child, $29; no widow but two children, $44 (equally divided); no widow but three children, $58.50 (equally divided) with $9 for each additional child (the total amount to be equally divided).' SEC. 8. (a) Subparagraph I (f), part III, Veterans Regulation Numbered 1 (a), as amended, is hereby amended to read as follows: "(f) The amount of pension payable under the terms of part III shall be $68 monthly, except (1) that where an otherwise eligible person shall have been rated permanent and total and in receipt of pension for a continuous period of ten years or reaches the age of sixty-five years, the amount of pension shall be $80 monthly; and "(2) that where an otherwise eligible person is or hereafter becomes, on account of age or physical or mental disabilities, helpless or blind or so nearly helpless or blind as to need or require the regular aid and attendance of another person, the amount of pension shall be $136 monthly.' SEC. 9. Section 2 of the Act of August 4, 1951 (65 Stat. 174), as amended (38 U. S. C. 370h), is hereby amended to read as follows: "SEC. 2. The minimum monthly rates of pension payable to veterans by virtue of the laws referred to in section 1 as modified by this Act shall be $103 in cases where the veteran served ninety days or more or was discharged for disability incurred in service in line of duty unless such veteran is now or hereafter becomes on account of age or physical or mental disabilities, helpless or blind, or so nearly helpless or blind as to need or require the regular aid and attendance of another person, the monthly rate shall be $136; and $68 in cases where the veteran served |