[H. R. 5815, 85th Cong., 1st sess.] A BILL To provide that amounts received under life insurance contracts on account of the death of the insured shall not be considered in determining eligibility for benefits under laws administered by the Veterans' Administration Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That amounts received (whether in a single sum or otherwise) by any person under a life insurance contract on account of the death of the insured shall not be considered as income for the purpose of determining the eligibility of such person for pension, compensation, or dependency and indemnity compensation under any law administered by the Veterans' Administration. [H. R. 6411, 85th Cong., 1st sess.] A BILL To amend part III of Veterans Regulation Numbered 1 (a) to provide that pension payments which are waived by retired policemen shall not be considered as income Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph II of part III of Veterans Regulation Numbered 1 (a) is amended by adding at the end thereof the following: "(d) In determining annual income for the purposes of this part, the Administrator shall not consider as income the portion of a pension payable to any retired policeman when the payment of such portion has been waived or declined under any law or ordinance which authorizes such payment to be waived or declined, and which provides that such waived or declined payment shall not thereafter be payable to any person." [H. R. 6837, 85th Cong., 1st sess.] A BILL Relating to the computation of income for purposes of non-service-connected pension benefits payable to certain veterans Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subparagraph II (a) of part III of Veterans Regulation Numbered 1 (a) is amended by adding at the end thereof the following new sentence: "In determining annual income, all or any portion of any retirement pay, pension, or annuity, the receipt of which has been waived and which is not recoverable, shall not be considered." SEC. 2. The amendment made by this Act shall take effect on the first day of the second calendar month which begins after the date of its enactment. [H. R. 6880, 85th Cong., 1st sess.] A BILL To provide that certain annuity payments, if waived, shall not be counted as income for the purposes of laws administered by the Veterans' Administration Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, for the purposes of all laws administered by the Veterans' Administration, in determining the annual income of any individual, the Administrator of Veterans' Affairs shall not consider as income any part of a pension or annuity which is waived or renounced by such individual and is not received by him (whether or not such waiver or renunciation may be revoked), but only if the portion of such pension or annuity which is so waived or renounced and not received is not payable thereafter to such individual or his successors in interest. [S. 2080, 85th Cong., 1st sess.] AN ACT Relating to the computation of annual income for the purpose of payment of pension for non-service-connected disability or death in certain cases Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in determining "annual income" under the provisions of paragraph II (a) of part III, Veterans Regulation Numbered 1 (a), as amended (38 U. S. C., ch. 12A), and section 1 (c) of the Act of June 28, 1934, as added by section 1 of the Act of July 19, 1939 (53 Stat. 1068), and as amended (38 U. S. C. 503 (c)), payment of a bonus or similar cash gratuity to a veteran or his survivors by any State based on service in the Armed Forces of the United States shall not be considered. The term "State" means each of the several States, Territories, and possessions of the United States, the District of Columbia, and the Commonwealth of Puerto Rico. SEC. 2. Section 1 of this Act shall take effect on the date of its enactment and shall cease to be in effect on January 1, 1958. SEC. 3. Section 403 of the Veterans' Benefits Act of 1957, Public Law 85-56, is amended by deleting the word "and" immediately preceding item (5); by substituting a semicolon followed by the word "and" at the end of section (5); and by adding the following new section: "(6) payments of bonus or similar cash gratuity by any State, Territory, possession, or Commonwealth of the United States, or the District of Columbia, based on military, naval or air service." Passed the Senate July 8, 1957. FELTON M. JOHNSTON, Secretary. VETERANS' ADMINISTRATION, Hon. OLIN E. TEAGUE, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Chairman, Committee on Veterans' Affairs, House of Representatives, Washington, D. C. DEAR MR. TEAGUE: This is in reply to your letter requesting reports by the Veterans' Administration relative to H. R. 5153, 85th Congress, a bill relating to the computation of annual income for the purpose of payment of pension for non-service-connected disability or death in certain cases, and H. R. 5212, 85th Congress, a bill to provide for the computation of annual income for the purpose of payment of pension for non-service-connected disability or death in certain cases. Except for their titles the bills are identical. The bills propose to exclude from computation as annual income for purposes of non-service-connected disability or death pension any payment of veterans' bonus by a State, Territory, possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico, to persons who served in the Armed Forces of the United States and their widows and children. Under existing law (pt. III, Veterans Regulation No. 1 (a), as amended), veterans of World War I, World War II, or the Korean conflict period are eligible, subject to specified requirements, to pension for permanent and total nonservice-connected disability. The pension rates are $66.15 per month, or $78.75 per month if the veteran has received the basic rate for a continuous period of 10 years or reaches the age of 65. A rate of $135.45 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 the regular aid or attendance of another person. Payment cannot be made if the veteran's annual income exceeds $1,400 if he is unmarried, or $2,700 if married or with minor children. Under the act of June 28, 1934 (48 Stat. 1281), as amended and extended (38 U. S. C. 503 et seq.), non-service-connected death pension is payable to the otherwise eligible widows and children of deceased veterans of World War I, World War II, and the Korean conflict period. The current monthly death pension rates are: Widow with no child, $50.40; widow with 1 child, $63, with $7.56 for each additional child: no widow but 1 child, $27.30; no widow but 2 children, $40.95, equally divided; no widow but 3 children, $54.60, equally divided; with $7.56 for each additional child, total equally divided. Subsection 1 (c) of the act of June 28, 1934, as amended, provides in that part pension shall not be paid to any widow without child or to a child whose annual income exceeds $1,400, or to a widow with a child or children whose annual income exceeds $2,700. At the present time for purposes of the foregoing income limitations of $1,400 and $2,700, annual income is determined in accordance with Veterans' Adminis 94843-57--2 tration Regulation 1228, copy of which was furnished your committee with the Veterans' Administration joint report on H. R. 74 and H. R. 922, 85th Congress, under date of March 29, 1957 (Committee Print No. 67, 85th Cong.). Under such regulations certain income, including adjusted compensation, is not considered in the computation of annual income as authorized by law. H. R. 5153 or H. R. 5212, if enacted into law, would not affect the existing exclusions in computing annual income for purposes of the governing limitations, and would add an exclusion of any payment of veterans' bonus by a State, Territory, possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico. In determining annual income for purposes of the income limitations governing the payment of non-service-connected disability or death pension benefits, certain types of income are excluded from computation. Pursuant to statute, or regulations of the Veterans' Administration as authorized by law, the following, among others, are not considered income: Any payments by the United States Government because of disability or death, and proceeds of matured endowment policies and dividends of Government insurance, under laws administered by the Veterans' Administrations, adjusted compensation, mustering-out pay, 6 months' death gratuity, value of maintenance furnished by a charitable organization or by a friend or relative, annuities received under the Uniformed Services Contingency Option Act of 1953, proceeds of a fire-insurance policy, the separate income of the wife of a disabled veteran, and value of an increase in stock inventory of a business at the end of a year. Congress has also enacted legislation which this agency does not administer but has an important impact on the annual income provisions of our pension program. Authority has been granted persons in the following groups to waive all or any part of an annuity or retirement compensation (and to revoke such waiver at any time) so as to become eligible for non-service-connected pension: Federal Civil Service annuitants (act of July 16, 1952), annuitants or pensioners under the Railroad Retirement Act of 1937, as amended (act of August 31, 1954), and beneficiaries of relief or retirement compensation of the District of Columbia Police and Firemen's Relief Fund (act of August 31, 1954). Although adjusted compensation, based on service in World War I was restricted to payments by the Federal Government, it is presumably the concept of the bill that a like payment by a State government may well be considered in the same income category since it is a monetary recognition of service rendered in time of war to those citizens who entered the Armed Forces to protect the State as well as the Nation. In this connection there appears to be involved consideration of the question whether exclusion by the Congress of a State bonus from the computation of annual income for pension purposes is to be regarded as corollary to its exclusion of adjusted compensation. Whether it is now advisable to so exclude bonus payments by a State, based on wartime service, is a matter primarily for determination by the Congress. Should it be determined as a matter of policy that such exclusion of State bonus payments should be authorized, the Veterans' Administration would interpose no objection thereto. There are no records in the Veterans' Administration on which to base an estimate of the cost of the proposed legislation. Advice has been received from the Bureau of the Budget that there would be no objection to the submission of this report to your committee. The Bureau has also requested that you be advised that it does not believe income from additional sources should be exempted from consideration in determining need for non-service-connected pensions. Sincerely yours, JOHN S. PATTERSON, (For and in the absence of H. V. Higley, Administrator). VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Hon. OLIN E. TEAGUE. Chairman, Committee on Veterans' Affairs, DEAR MR. TEAGUE: This is in reply to your requests for reports by the Veterans' Administration relative to H. R. 3225 and H. R. 6837, 85th Congress, identical bills, relating to the computation of income for purposes of non-service-connected pension benefits payable to certain veterans; H. R. 6411, 85th Congress, a bill to amend part III of Veterans Regulation No. 1 (a) to provide that pension payments which are waived by retired policemen shall not be considered as income; and H. R. 6880, 85th Congress, a bill to provide that certain annuity payments, if waived, shall not be counted as income for the purposes of laws administered by the Veterans' Administration. The general purpose of the bills is to preclude the Veterans' Administration from considering as income under applicable laws any portion of retirement pay, pension, or annuity which has been waived by the person entitled thereto and is not recoverable. Their principal effect would be in the field of pension. Under existing law, pension based on permanent and total non-service-connected disability is payable to otherwise eligible veterans of World War I, World War II, or of the Korean conflict. Such pension is not payable to any unmarried person whose annual income exceeds $1,400 or to any married person or any person with minor children whose annual income exceeds $2,700. Nonservice-connected death pension is payable to the otherwise eligible widow, child, or children of a veteran who served during any of the mentioned periods. Eligibility for such pension is subject to an annual income limitation of $1,400, with respect to a widow without child, or to a child, or $2,700 with respect to a widow with a child or children. Pursuant to Veterans' Administration regulations, in determining annual income for purposes of the income limitations governing payment of the mentioned pension benefits, retirement benefits are considered as income after the cost of the benefits to the annuitant (as personal contributions to the fund) has been recovered by him. This regulation contemplates that the entire amount of the worker's annuity following retirement will be applied each year to amortize the cost of the annuity after which the entire annuity will be considered as income. Waivers of these benefits are not recognized for the purpose of reducing a claimant's income to an amount which would render him eligible to receive pension, unless authorized by Federal statute. There are currently three such Federal statutes: Section 13 of the Civil Service Retirement Act, as amended (5 U. S. C. 716), relating to waiver of annuity from the civil service retirement and disability fund; section 20 of the Railroad Retirement Act of 1937, as amended (45 U. S. C. 228s-1), relating to waiver of annuity or pension under that act; and the act of August 31, 1954 (68 Stat. 1044), relating to waiver of relief or retirement compensation from the policemen's and firemen's relief fund of the District of Columbia. All of the bills would permit waivers not now recognized. H. R. 3225 and H. R. 6837 would require the recognition in connection with claims by veterans for pension of waivers of all or any portion of any retirement pay, pension, or annuity provided the waived portion is not recoverable. H. R. 6880 would have a similar effect and would also apply in claims for death pension as well as claims by parents for either death compensation or dependency and indemnity compensation under the Servicemen's and Veteran's Survivor Benefits Act. H. R. 6411 would require the recognition in connection with claims by veterans for pension of waiver of pension payable to a retired policeman when the waiver has been made under a law or ordnance authorizing it and provided the waived portion is not recoverable. In view of the many unknown factors, it is not possible to furnish an estimate of the cost of any of the bills. Attention is invited to the fact that all but H. R. 6880, would amend laws scheduled for repeal on January 1, 1958, by the Veterans' Benefits Act of 1957 (Public Law 85-56). Each of these bills would have the effect of permitting persons ineligible for pension because of excessive income to render themselves eligible for such pension by waiving certain money to which they are entitled. There is for consideration, whether the authorization of such waivers would be in keeping with the basic purpose of the mentioned programs to assist veterans and dependents of decreased veterans who are needy; i. e., those whose incomes do not exceed the limitations prescribed by law. In view of the lateness of the session and the President's message on veterans' matters scheduled for transmission to the Congress early in the next session, it is further suggested that the committee may desire to withhold definitive action on these bills at this time. Advice has been received from the Bureau of the Budget that there would be no objection to the submission of this report to your committee. The Bureau has also requested that you be advised that it does not believe that additional waivers of income should be permitted in determining need for non-service-connected pensions. Sincerely yours, JOHN S. PATTERSON, Deputy Administrator (For and in the absence of H. V. Higley, Administrator). VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Hon. OLIN E. TEAGUE, Chairman, Committee on Veterans' Affairs, House of Representatives, Washington, D. C. DEAR MR. TEAGUE: This is in reply to your requests for reports by the Veterans' Administration relative to H. R. 324, H. R. 326, H. R. 416, H. R. 904, H. R. 2007, and H. R. 5815, 85th Congress. The general purpose of these bills is to exclude amounts received from designated sources in determining annual income of claimants for certain benefits under laws administered by the Veterans' Administration. Their principal effect would be in the field of pension. Under existing law, pension based on permanent and total non-serviceconnected disability is payable to otherwise eligible veterans of World War I, World War II, or of the Korean conflict. Such pension is not payable to any unmarried person whose annual income exceeds $1,400 or to any married person or any person with minor children whose annual income exceeds $2,700. Non-service-connected death pension is payable to the otherwise eligible widow, child, or children of a veteran who served during any of the mentioned periods. Eligibility for such pension is subject to an annual income limitation of $1,400 with respect to a widow without child, or to a child, or $2,700 with respect to a widow with a child or children. Annual income is determined in accordance with Veterans' Administration Regulation 1228, a copy of which was furnished your committee with our report of March 29, 1957, on H. R. 74 and H. R. 922, 85th Congress (Committee Print No. 67, 85th Cong.). Under the regulation certain income is excluded in computation of annual income as authorized by law. Each of the bills under consideration proposes to extend the scope of excludable income. H. R. 904 would require that payments under title II of the Social Security Act (old-age and survivors insurance) be excluded in determining the annual income of an applicant for disability or death pension. Currently, such payments are counted only after the worker has recouped the full amount of his personal contribution. Benefits received by a widow on the basis of her husband's employment are considered annual income as received. H. R. 2007 is limited to death pension claimants. It would authorize a claimant to deduct from annual income for either the year in which the veteran died, or the following year, an amount equal to the amount paid by her toward the costs arising from (a) the final illness of the deceased veteran which accrued in the year immediately preceding death and (b) funeral and burial expenses of the deceased veteran. No such deductions are currently authorized. It is recognized that the payment of the expenses in question in some cases reduces the funds of the dependents which are available for their normal living expenses to a point below the applicable income limitation. To this extent the bill would render eligible for pension persons whose income under existing criteria exceeds the income limitations. Subsection 205 (g) (2) of the Servicemen's and Veterans' Survivor Benefits Act partly recognizes this situation by authorizing the Administrator of Veterans' Affairs to provide by regulation for the exclusion from income of amounts for unusual medical expenses paid by a parent who is claiming service-connected dependency and indemnity compensation. The enactment of this bill could entail substantial additional administrative work in ascertaining the precise deductions which it would authorize. From an administrative point of view either H. R. 74 or H. R. 922, 85th Congress, which have a similar objective, would be preferable to H. R. 2007. H. R. 5815 would require that amounts received under a life-insurance contract shall not be considered as income for the purpose of determining eligibility for pension as well as death compensation or dependency and indemnity com |