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108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-524
======================================================================
VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 2004
_______
June 3, 2004.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of New Jersey, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 4175]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred the
bill (H.R. 4175) to increase, effective as of December 1, 2004,
the rates of disability compensation for veterans with service-
connected disabilities and the rates of dependency and
indemnity compensation for survivors of certain service-
connected disabled veterans, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as ``Veterans' Compensation Cost-of-Living
Adjustment Act of 2004''.
SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY AND
INDEMNITY COMPENSATION.
(a) Rate Adjustment.--The Secretary of Veterans Affairs shall,
effective on December 1, 2004, increase the dollar amounts in effect
for the payment of disability compensation and dependency and indemnity
compensation by the Secretary, as specified in subsection (b).
(b) Amounts to Be Increased.--The dollar amounts to be increased
pursuant to subsection (a) are the following:
(1) Compensation.--Each of the dollar amounts in effect under
section 1114 of title 38, United States Code.
(2) Additional compensation for dependents.--Each of the
dollar amounts in effect under section 1115(1) of such title.
(3) Clothing allowance.--The dollar amount in effect under
section 1162 of such title.
(4) New dic rates.--The dollar amounts in effect under
paragraphs (1) and (2) of section 1311(a) of such title.
(5) Old dic rates.--Each of the dollar amounts in effect
under section 1311(a)(3) of such title.
(6) Additional dic for surviving spouses with minor
children.--The dollar amount in effect under section 1311(b) of
such title.
(7) Additional dic for disability.--The dollar amounts in
effect under sections 1311(c) and 1311(d) of such title.
(8) Dic for dependent children.--The dollar amounts in effect
under sections 1313(a) and 1314 of such title.
(c) Determination of Increase.--(1) The increase under subsection (a)
shall be made in the dollar amounts specified in subsection (b) as in
effect on November 30, 2004.
(2) Except as provided in paragraph (3), each such amount shall be
increased by the same percentage as the percentage by which benefit
amounts payable under title II of the Social Security Act (42 U.S.C.
401 et seq.) are increased effective December 1, 2004, as a result of a
determination under section 215(i) of such Act (42 U.S.C. 415(i)).
(3) Each dollar amount increased pursuant to paragraph (2) shall, if
not a whole dollar amount, be rounded down to the next lower whole
dollar amount.
(d) Special Rule.--The Secretary may adjust administratively,
consistent with the increases made under subsection (a), the rates of
disability compensation payable to persons within the purview of
section 10 of Public Law 85-857 (72 Stat. 1263) who are not in receipt
of compensation payable pursuant to chapter 11 of title 38, United
States Code.
SEC. 3. PUBLICATION OF ADJUSTED RATES.
At the same time as the matters specified in section 215(i)(2)(D) of
the Social Security Act (42 U.S.C. 415(i)(2)(D)) are required to be
published by reason of a determination made under section 215(i) of
such Act during fiscal year 2005, the Secretary of Veterans Affairs
shall publish in the Federal Register the amounts specified in
subsection (b) of section 2, as increased pursuant to that section.
SEC. 4. IMPROVED BENEFITS FOR FORMER PRISONERS OF WAR.
Section 1112(b)(3) of title 38, United States Code, is amended by
adding at the end the following new subparagraph:
``(L) Osteoporosis.''.
SEC. 5. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED IN PUBLIC
LAW 108-147.
(a) Veterans' Disability Compensation.--Section 1114 of title 38,
United States Code, is amended--
(1) by striking ``$104'' in subsection (a) and inserting
``$106'';
(2) by striking ``$201'' in subsection (b) and inserting
``$205'';
(3) by striking ``$310'' in subsection (c) and inserting
``$316'';
(4) by striking ``$445'' in subsection (d) and inserting
``$454'';
(5) by striking ``$633'' in subsection (e) and inserting
``$646'';
(6) by striking ``$801'' in subsection (f) and inserting
``$817'';
(7) by striking ``$1,008'' in subsection (g) and inserting
``$1,029'';
(8) by striking ``$1,171'' in subsection (h) and inserting
``$1,195'';
(9) by striking ``$1,317'' in subsection (i) and inserting
``$1,344'';
(10) by striking ``$2,193'' in subsection (j) and inserting
``$2,239'';
(11) in subsection (k)--
(A) by striking ``$81'' both places it appears and
inserting ``$82''; and
(B) by striking ``$2,728'' and ``$3,827'' and
inserting ``$2,785'' and ``$3,907'', respectively;
(12) by striking ``$2,728'' in subsection (l) and inserting
``$2,785'';
(13) by striking ``$3,010'' in subsection (m) and inserting
``$3,073'';
(14) by striking ``$3,425'' in subsection (n) and inserting
``$3,496'';
(15) by striking ``$3,827'' each place it appears in
subsections (o) and (p) and inserting ``$3,907'';
(16) by striking ``$1,643'' and ``$2,446'' in subsection (r)
and inserting ``$1,677'' and ``$2,497'', respectively; and
(17) by striking ``$2,455'' in subsection (s) and inserting
``$2,506''.
(b) Additional Compensation for Dependents.--Section 1115(1) of such
title is amended--
(1) by striking ``$125'' in subparagraph (A) and inserting
``$127'';
(2) by striking ``$215'' and ``$64'' in subparagraph (B) and
inserting ``$219'' and ``$65'', respectively;
(3) by striking ``$85'' and ``$64'' in subparagraph (C) and
inserting ``$86'' and ``$65'', respectively;
(4) by striking ``$101'' in subparagraph (D) and inserting
``$103'';
(5) by striking ``$237'' in subparagraph (E) and inserting
``$241''; and
(6) by striking ``$198'' in subparagraph (F) and inserting
``$202''.
(c) Clothing Allowance for Certain Disabled Veterans.--Section 1162
of such title is amended by striking ``$588'' and inserting ``$600''.
(d) Dependency and Indemnity Compensation for Surviving Spouses.--(1)
Section 1311(a) of such title is amended--
(A) by striking ``$948'' in paragraph (1) and inserting
``$967''; and
(B) by striking ``$204'' in paragraph (2) and inserting
``$208''.
(2) The table in section 1311(a)(3) of such title is amended to read
as follows:
Monthly Monthly
``Pay grade rate Pay grade rate
E-1...................... $967 W-4........ $1,157
E-2...................... $967 O-1........ $1,022
E-3...................... $967 O-2........ $1,056
E-4...................... $967 O-3........ $1,130
E-5...................... $967 O-4........ $1,195
E-6...................... $967 O-5........ $1,316
E-7...................... $1,000 O-6........ $1,483
E-8...................... $1,056 O-7........ $1,602
E-9...................... $1,102\1\ O-8........ $1,758
W-1...................... $1,022 O-9........ $1,881
W-2...................... $1,063 O-10....... $2,063\2\
W-3...................... $1,094
``\1\If the veteran served as sergeant major of the Army, senior
enlisted advisor of the Navy, chief master sergeant of the Air Force,
sergeant major of the Marine Corps, or master chief petty officer of
the Coast Guard, at the applicable time designated by section 1302 of
this title, the surviving spouse's rate shall be $1,189.
``\2\If the veteran served as Chairman or Vice-Chairman of the Joint
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
Operations, Chief of Staff of the Air Force, Commandant of the Marine
Corps, or Commandant of the Coast Guard, at the applicable time
designated by section 1302 of this title, the surviving spouse's rate
shall be $2,213.''.
(3) Section 1311(b) of such title is amended by striking ``$237'' and
inserting ``$241''.
(4) Section 1311(c) of such title is amended by striking ``$237'' and
inserting ``$241''.
(5) Section 1311(d) of such title is amended by striking ``$113'' and
inserting ``$115''.
(e) Dependency and Indemnity Compensation for Children.--(1) Section
1313(a) of such title is amended--
(A) by striking ``$402'' in paragraph (1) and inserting
``$410'';
(B) by striking ``$578'' in paragraph (2) and inserting
``$590'';
(C) by striking ``$752'' in paragraph (3) and inserting
``$767''; and
(D) by striking ``$752'' and ``$145'' in paragraph (4) and
inserting ``$767'' and ``$148'', respectively.
(2) Section 1314 of such title is amended--
(A) by striking ``$237'' in subsection (a) and inserting
``$241'';
(B) by striking ``$402'' in subsection (b) and inserting
``$410''; and
(C) by striking ``$201'' in subsection (c) and inserting
``$205''.
Introduction
On April 20, 2004, the Chairman and Ranking Member of the
Veterans' Affairs Committee, Honorable Christopher H. Smith and
Honorable Lane Evans, along with the Chairman and Ranking
Member of the Subcommittee on Benefits, Honorable Henry E.
Brown, Jr., and Honorable Michael H. Michaud, introduced H.R.
4175, which would provide a cost-of-living adjustment (COLA) in
the rates of service-connected disability compensation and
dependency and indemnity compensation, effective December 1,
2004.
On April 29, 2004, the Subcommittee on Benefits held a
hearing on ten bills, including H.R. 348, introduced on January
27, 2003, by Honorable Michael Bilirakis.
On May 13, 2004, the Subcommittee on Benefits met and
ordered H.R. 4175 reported favorably, as amended, to the full
Committee by unanimous voice vote.
On May 19, 2004, the full Committee met and ordered H.R.
4175 reported favorably, as amended, to the House by unanimous
voice vote.
Summary of the Reported Bill
H.R. 4175, as amended, would:
1. LProvide effective December 1, 2004, a cost-of-living
adjustment to the rates of disability compensation for veterans
with service-connected disabilities and to the rates of
dependency and indemnity compensation for survivors of certain
service-connected disabled veterans. The percentage amount
would be equal to the increase for benefits provided under the
Social Security Act, which is calculated based upon changes in
the Consumer Price Index.
2. LAdd osteoporosis to the list of diseases presumed to be
service connected for former prisoners of war for the purposes
of veterans' benefits.
3. LCodify the current dollar amounts of disability
compensation and dependency and indemnity compensation, as
provided for in Public Law 108-147.
Background and Discussion
Increase in rates of disability compensation and dependency
and indemnity compensation.--Section 2 of the bill would
increase, effective December 1, 2004, the rates of compensation
for service-connected disabilities and the rates of dependency
and indemnity compensation (DIC) for surviving spouses and
children of veterans who die of service-connected causes, as
well as the additional amounts for dependents and survivors,
and clothing allowances for certain veterans. With H.R. 4175,
the Committee is following its longstanding practice of setting
the cost-of-living adjustment (COLA) by reference to the yet-
to-be-determined Social Security increase. At the time of the
filing of this report, the increase is expected to be 1.7
percent, but it may be higher or lower depending on changes in
the Consumer Price Index; the exact percentage is calculated as
of September 30, 2004. Last year's increase was 2.1 percent.
More than 2.5 million veterans were receiving service-
connected disability compensation as of April 2004. The basic
purpose of the disability compensation program is to provide a
measure of relief from the impaired earning capacity of
veterans disabled as the result of their military service. The
amount of compensation payable varies according to the degree
of disability. This amount in turn is required by law to
represent, to the extent practicable, the average impairment in
earning capacity in civilian occupations resulting from such
disability or combination of disabilities.
To be eligible to receive disability compensation, a
veteran must have a disability incurred or aggravated during
military service, which is not the result of willful
misconduct, and have been discharged under other than
dishonorable conditions. The responsibility for determining a
veteran's entitlement to service-connection for a disability
rests solely with the Department of Veterans Affairs (VA).
As of April 2004, there were 301,328 surviving spouses and
29,938 children receiving dependency and indemnity compensation
(DIC). Surviving spouses and dependent children of veterans who
died of disabilities determined by VA to be service-connected
(including veterans who died while on active duty) or who had a
service-connected disability rated at 100 percent for certain
periods of time prior to death are entitled to receive monthly
DIC benefits.
The purpose of DIC benefits authorized under chapter 13 of
title 38, United States Code, is to provide partial
compensation to the appropriate survivors for the loss in
financial support due to the service-connected death. Income
and need are not factors in determining a surviving spouse's or
child's entitlement because the Nation in part assumes the
legal and moral obligation of the veteran to support the spouse
and children.
The Committee annually reviews the service-connected
disability compensation and DIC programs to ensure such
benefits provide reasonable and adequate compensation for
disabled veterans and their families. Based on this review,
Congress acts annually to provide a COLA in compensation and
DIC benefits. Congress has provided annual increases in these
rates for every fiscal year since 1976.
Improved veterans' benefits for former prisoners of war.--
Section 4 of the bill would add osteoporosis to the list of
diseases presumed to be the result of prisoner of war (POW)
status. Section 1112(b) of title 38, United States Code,
specifies 16 disabilities that VA presumes are related to the
POW experience for the purposes of veterans' and survivors'
benefits.
The Committee notes that in September 2003, the Secretary
of Veterans Affairs formed a Workgroup on Presumptive Medical
Conditions in Former Prisoners of War. Its mission is to
develop a methodology for a fair and balanced assessment of
medical conditions identified as associated with POW detention,
and recommend to the Secretary any conditions it believes
warrant either presumptive status or further study. Among other
responsibilities and functions, the workgroup will consider
diseases brought to their attention by the Secretary's Advisory
Committee on Former Prisoners of War, veterans service
organizations, and other interested parties. The workgroup is
comprised of representatives from the Veterans Health
Administration, Veterans Benefits Administration, and the
Office of General Counsel.
Codification of cost-of-living adjustment provided in
Public Law 108-147.--Section 5 of the bill would codify as
dollar amounts the current rates of compensation for service-
connected disabilities and the rates of dependency and
indemnity compensation for surviving spouses and children of
veterans who die of service-connected causes, as well as the
additional amounts for dependents and survivors, and clothing
allowances for certain veterans. These rates went into effect
on December 1, 2003, pursuant to Public Law 108-147, which was
signed by President Bush on December 3, 2003.
Section-By-Section Analysis
Section 1 would provide that this Act may be cited as the
``Veterans' Compensation Cost-of-Living Adjustment Act of
2004''.
Section 2(a) would authorize the Secretary of Veterans
Affairs to increase, effective December 1, 2004, the dollar
amounts in effect for the payment of disability compensation
and dependency and indemnity compensation.
Section 2(b) would specify the programs to receive
increased dollar amounts: compensation, additional compensation
for dependents, clothing allowance, rates under the ``new'' DIC
program, rates under the ``old'' DIC program, additional DIC
for surviving spouses with minor children, additional DIC for
disability, and DIC for dependent children.
Section 2(c)(1) would increase the dollar amounts for those
programs specified in subsection (b) based on the amount in
effect on November 30, 2004.
Section 2(c)(2) would specify that each amount shall be
increased by the same percentage by which benefits are
increased under title II of the Social Security Act (42 U.S.C.
401 et seq.).
Section 2(c)(3) would round down to the next lower dollar
amount all compensation and DIC benefits, when the amount is
not a whole dollar amount.
Section 2(d) would provide a special rule authorizing the
Secretary of Veterans Affairs to adjust administratively,
consistent with the increases made under subsection (a), the
rates of disability compensation payable to persons within the
purview of section 10 of Public Law 85-857 (72 Stat. 1263), who
are not in receipt of compensation payable pursuant to chapter
11 of title 38, United States Code.
Section 3 would require the Secretary of Veterans Affairs
to publish in the Federal Register the amounts specified in
subsection (b), as increased pursuant to that section.
Section 4 would amend section 1112(b)(3) by adding
osteoporosis to the list of diseases presumed to be the result
of prisoner of war status.
Section 5 would codify the cost-of-living adjustments
provided in Public Law 108-147.
Performance Goals and Objectives
The reported bill would authorize veterans benefits
enhancements under laws administered by the Secretary of
Veterans Affairs. The Department of Veterans Affairs'
performance goals and objectives are established in annual
performance plans and are subject to the Committee's regular
oversight and evaluation by the U.S. General Accounting Office.
VA also publishes a performance and accountability report for
each fiscal year.
Statements of the Views of the Administration
The Administration's fiscal year 2005 budget request,
submitted in February 2004, recommended a cost-of-living
adjustment based on the change in the Consumer Price Index
(CPI) be given to all compensation beneficiaries, including DIC
recipients, effective December 1, 2004. The estimated increase
in the CPI at that time was 1.3 percent.
STATEMENT OF ROBERT J. EPLEY, ASSOCIATE DEPUTY UNDER SECRETARY FOR
POLICY AND PROGRAM MANAGEMENT, VETERANS BENEFITS ADMINISTRATION,
DEPARTMENT OF VETERANS AFFAIRS
APRIL 29, 2004
* * * * * * *
H.R. 348
You also requested our views, Mr. Chairman, on H.R. 348, the
``Prisoner of War Benefits Act of 2003.''
Section 2(a) and (b) of H.R. 348 would eliminate the requirement
that a former prisoner of war (POW) be detained or interned for at
least thirty days in order to be eligible for a presumption of service
connection for certain diseases and at least ninety days in order to be
eligible to receive VA care and treatment for a dental condition or
disability. Congress dealt with the issues covered by subsections 2(a)
and (b) during the First Session of the 108th Congress. Section 201 of
the Veterans Benefits Act of 2003, Public Law 108-183, eliminated the
thirty-day detention requirement in order for a former POW to be
eligible for a presumption of service connection for psychosis, any of
the anxiety states, dysthymic disorder (or depressive neurosis),
organic residuals of frostbite, and post-traumatic osteoarthritis.
Section 101 of the Veterans Health Care, Capital Asset, and Business
Improvement Act of 2003, Public Law 108-170, eliminated the ninety-day
detention requirement in order for a former POW to be eligible for VA
care and treatment for a dental condition or disability.
Section 2(c) of H.R. 348 would add heart disease, stroke, liver
disease, type 2 diabetes, and osteoporosis to the list of diseases for
which a presumption of service connection is available pursuant to 38
U.S.C. ' 1112(b). Section 2(c) would also authorize the Secretary to
promulgate regulations creating a presumption of service connection for
any other disease which the Secretary determines has a ``positive
association with the experience of being a [POW].'' A ``positive
association'' would exist ``if the credible evidence for the
association is equal to or outweighs the credible evidence against the
association.'' In deciding whether to promulgate such a regulation, the
Secretary would be required to consider the recommendations of the
Advisory Committee on Former POWs and any other available sound medical
and scientific information and analyses. VA would have sixty days from
receipt of an Advisory Committee recommendation to make a determination
as to whether a presumption of service connection is warranted, and
then another sixty days to publish in the Federal Register either
proposed regulations, if VA determines that a presumption is warranted,
or a notice explaining the scientific basis for a determination that a
presumption is not warranted.
VA strongly supports enactment of section 2(c) of H.R. 348,
provided that the Congress can find offsetting savings. No one can
reasonably doubt that the stresses and privations endured by prisoners
of war take heavy tolls on their health in ways that may never be fully
understood. The majority of former POWs are aging veterans of World War
II who are unable to wait for science to provide definitive answers.
Moreover, former POWs as a group do not benefit from relatively relaxed
statutory standards--such as the positive-association standard applied
in the case of all Vietnam veterans because of their potential for
exposure to defoliants used there--for weighing the scientific evidence
regarding associations between their service experience and later
occurring diseases. There is some scientific evidence suggesting an
association between the POW experience and each of the illnesses
covered by the bill, and because these veterans are particularly
deserving of special consideration they too should be accorded the
benefit of the doubt.
VA is also working administratively to address the needs of former
POWs for full and fair compensation. In December 2003 the Secretary
tasked a work group of Veterans Health Administration, Veterans
Benefits Administration and Office of General Counsel officials to 1)
develop a methodology for the fair and balanced assessment of medical
conditions associated with detention as a POW, and 2) recommend to him
any conditions that, when this methodology is applied, warrant
designation as presumptively service connected.
The work group has met several times and will shortly be
recommending to the Secretary a proposed methodology for consideration
of additional diseases. In developing its recommendations, the group
has been mindful of the standards Congress has adopted for application
in other contexts; i.e., for herbicide-exposed Vietnam veterans and
veterans of the Gulf War. We pledge to work through these difficult
issues as quickly as possible and to keep this Committee informed of
our progress.
We estimate that enactment of section 2(a) and (c) of H.R. 348
would have mandatory costs of $33.8 million in fiscal year 2005 and a
10-year cost of $588.8 million.
* * * * * * *
Congressional Budget Office Cost Estimate
The following letter was received from the Congressional
Budget Office concerning the cost of the reported bill:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 25, 2004
Hon. Christopher H. Smith
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4175, the
Veterans' Compensation Cost-of-Living Adjustment Act of 2004.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright, who can be reached at 226-2840.
Sincerely,
Douglas Holtz-Eakin,
Director
Enclosure.
* * * * * * *
Congressional Budget Office Cost Estimate
May 25, 2004
H.R. 4175, Veterans' Compensation Cost-of-Living Adjustment Act of 2004
As ordered reported by the House Committee on Veterans' Affairs on May
19, 2004
H.R. 4175 would increase the amounts paid to veterans for
disability compensation and to their survivors for dependency
and indemnity compensation by the same cost-of-living
adjustment (COLA) payable to Social Security recipients. The
increase would take effect on December 1, 2004, and the results
of the adjustment would be rounded to the next lower dollar. In
addition, the bill would add osteoporosis to the list of
diseases that are presumed service-connected for former
prisoners-of-war (POWs), and codify the cost-of-living
adjustments (COLAs) provided by the Veterans' Compensation
Cost-of-Living Adjustment Act of 2003 (Public Law 108-147).
The COLA that would be authorized by this bill is assumed
in CBO's baseline, pursuant to section 257 of the Balanced
Budget and Emergency Deficit Control Act, and savings from
rounding it down were achieved by the Balanced Budget Act of
1997 (Public Law 105-33) and extended to 2013 by the Veterans
Benefits Act of 2003 (Public Law 108-183).
Because the COLA is assumed in the baseline, the COLA
provision would have no budgetary effect relative to the
baseline. Relative to current law, CBO estimates that enacting
this provision would increase spending for these programs by
about $466 million in 2005. (The annualized cost would be about
$620 million in subsequent years.) This estimate assumes that
the COLA effective on December 1, 2004, would be 1.5 percent.
Section 4 of the bill would add osteoporosis to the list of
disabilities that the Department of Veterans Affairs (VA)
assumes are service-connected for former POWs. Thus, under the
bill, former POWs with osteoporosis would be eligible for
disability compensation and, if a former POW dies as a result
of this condition certain, survivors would be eligible for
dependency and indemnity compensation (DIC).
Based on information provided by VA, CBO estimates that
there are currently 37,000 living former POWs. Applying
prevalence rates for osteoporosis obtained from the National
Center for Health Statistics and other sources, CBO estimates
that in 2005, about 440 former POWs would become newly eligible
for disability compensation for osteoporosis under section 4.
CBO assumes that about 50 percent of former POWs who are
not already receiving disability compensation and 60 percent of
former POWs who are currently receiving disability compensation
would apply for the new benefit. CBO assumes that new
compensation cases would phase in over three years so that by
2007 about 120 new compensation cases would begin receiving
disability compensation for osteoporosis. This figure excludes
veterans who already have a disability rating of 100 percent
for other service-connected disabilities and who would
therefore not be eligible for an increase in their disability
compensation rating.
CBO derived the weighted average of payments made to
veterans currently receiving disability compensation for
osteoporosis to determine the increase in disability
compensation payments under section 4. Based on information
provided by VA, veterans receiving payments for osteoporosis
were paid on average about $1,300 in 2003 in disability
compensation payments. These payments are adjusted annually for
increases in COLA. Former POWs not receiving disability
compensation payments for other disabilities would receive this
amount, while former POWs currently receiving disability
compensation would receive an increase above their current
level of disability compensation, unless they are already rated
at 100 percent disabled.
Under current law, certain survivors of former POWs can
qualify for DIC if one of the following two criteria:
The former POW died of a service-connected
disability; or
The former POW was continuously rated 100 percent
for a service-connected disability for one year prior to death.
Survivors of veterans who meet one of these criteria
would already be eligible for DIC under current law.
Because osteoporosis would be considered a service-
connected disability under section 4, certain survivors
of veterans who die as a result of one of the diseases
would become newly eligible for DIC under the bill.
CBO was unable to obtain mortality rates for
osteoporosis; however, because the disease has a low
prevalence rate in men and does not generally lead
directly to death, we estimate that the potential
increase in spending for DIC payments under section 4
from former POWs dying as a result of osteoporosis
would be insignificant.
Taken together, CBO estimates that enacting section 4
would increase payments for disability compensation and
DIC by less than $500,000 in 2005, about $1 million
over the 2005-2009 period, and $2 million over the
2005-2014 period.
H.R. 4175 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
On January 29, 2004, CBO transmitted a cost estimate for
H.R. 348, as introduced on January 27, 2003. H.R. 348 included
five additional diseases as presumed service-connected diseases
for former POWs--heart disease, stroke, diabetes mellitus,
liver disease, and osteoporosis.
CBO's estimate of the cost of adding osteoporosis to the
list of presumed service-connected diseases contained in H.R.
348 is identical to the cost estimated for Section 4 of H.R.
4175.
The CBO staff contact for federal costs is Dwayne M.
Wright, who can be reached at 226-2840. This estimate was
approved by Peter H. Fontaine, Deputy Assistant Director for
Budget Analysis.
Statement of Federal Mandates
The preceding Congressional Budget Office cost estimate
states that the bill contains no intergovernmental or private
sector mandates as defined in the Unfunded Mandates Reform Act.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 11--COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR DEATH
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SUBCHAPTER II--WARTIME DISABILITY COMPENSATION
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Sec. 1112. Presumptions relating to certain diseases and disabilities
(a) * * *
(b)(1) * * *
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(3) The diseases specified in this paragraph are the
following:
(A) * * *
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(L) Osteoporosis.
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Sec. 1114. Rates of wartime disability compensation
For the purposes of section 1110 of this title--
(a) if and while the disability is rated 10 percent
the monthly compensation shall be [$104] $106;
(b) if and while the disability is rated 20 percent
the monthly compensation shall be [$201] $205;
(c) if and while the disability is rated 30 percent
the monthly compensation shall be [$310] $316;
(d) if and while the disability is rated 40 percent
the monthly compensation shall be [$445] $454;
(e) if and while the disability is rated 50 percent
the monthly compensation shall be [$633] $646;
(f) if and while the disability is rated 60 percent
the monthly compensation shall be [$801] $817;
(g) if and while the disability is rated 70 percent
the monthly compensation shall be [$1,008] $1,029
(h) if and while the disability is rated 80 percent
the monthly compensation shall be [$1,171] $1,195;
(i) if and while the disability is rated 90 percent
the monthly compensation shall be [$1,317] $1,344;
(j) if and while the disability is rated as total the
monthly compensation shall be [$2,193] $2,239;
(k) if the veteran, as the result of service-
connected disability, has suffered the anatomical loss
or loss of use of one or more creative organs, or one
foot, or one hand, or both buttocks, or blindness of
one eye, having only light perception, has suffered
complete organic aphonia with constant inability to
communicate by speech, or deafness of both ears, having
absence of air and bone conduction, or, in the case of
a woman veteran, has suffered the anatomical loss of 25
percent or more of tissue from a single breast or both
breasts in combination (including loss by mastectomy or
partial mastectomy) or has received radiation treatment
of breast tissue, the rate of compensation therefor
shall be [$81] $82 per month for each such loss or loss
of use independent of any other compensation provided
in subsections (a) through (j) or subsection (s) of
this section but in no event to exceed [$2,728] $2,785
per month; and in the event the veteran has suffered
one or more of the disabilities heretofore specified in
this subsection, in addition to the requirement for any
of the rates specified in subsections (l) through (n)
of this section, the rate of compensation shall be
increased by [$81] $82 per month for each such loss or
loss of use, but in no event to exceed [$3,827] $3,907
per month;
(l) if the veteran, as the result of service-
connected disability, has suffered the anatomical loss
or loss of use of both feet, or of one hand and one
foot, or is blind in both eyes, with 5/200 visual
acuity or less, or is permanently bedridden or so
helpless as to be in need of regular aid and
attendance, the monthly compensation shall be [$2,728]
$2,785;
(m) if the veteran, as the result of service-
connected disability, has suffered the anatomical loss
or loss of use of both hands, or of both legs at a
level, or with complications, preventing natural knee
action with prostheses in place, or of one arm and one
leg at levels, or with complications, preventing
natural elbow and knee action with prostheses in place,
or has suffered blindness in both eyes having only
light perception, or has suffered blindness in both
eyes, rendering such veteran so helpless as to be in
need of regular aid and attendance, the monthly
compensation shall be [$3,010] $3,073;
(n) if the veteran, as the result of service-
connected disability, has suffered the anatomical loss
or loss of use of both arms at levels, or with
complications, preventing natural elbow action with
prostheses in place, has suffered the anatomical loss
of both legs so near the hip as to prevent the use of
prosthetic appliances, or has suffered the anatomical
loss of one arm and one leg so near the shoulder and
hip as to prevent the use of prosthetic appliances, or
has suffered the anatomical loss of both eyes, or has
suffered blindness without light perception in both
eyes, the monthly compensation shall be [$3,425]
$3,496;
(o) if the veteran, as the result of service-
connected disability, has suffered disability under
conditions which would entitle such veteran to two or
more of the rates provided in one or more subsections
(l) through (n) of this section, no condition being
considered twice in the determination, or if the
veteran has suffered bilateral deafness (and the
hearing impairment in either one or both ears is
service connected) rated at 60 percent or more
disabling and the veteran has also suffered service-
connected total blindness with 5/200 visual acuity or
less, or if the veteran has suffered service-connected
total deafness in one ear or bilateral deafness (and
the hearing impairment in either one or both ears is
service connected) rated at 40 percent or more
disabling and the veteran has also suffered service-
connected blindness having only light perception or
less, or if the veteran has suffered the anatomical
loss of both arms so near the shoulder as to prevent
the use of prosthetic appliances, the monthly
compensation shall be [$3,827] $3,907;
(p) in the event the veteran's service-connected
disabilities exceed the requirements for any of the
rates prescribed in this section, the Secretary may
allow the next higher rate or an intermediate rate, but
in no event in excess of [$3,827] $3,907. In the event
the veteran has suffered service-connected blindness
with 5/200 visual acuity or less and (1) has also
suffered bilateral deafness (and the hearing impairment
in either one or both ears is service connected) rated
at no less than 30 percent disabling, the Secretary
shall allow the next higher rate, or (2) has also
suffered service-connected total deafness in one ear or
service-connected anatomical loss or loss of use of one
hand or one foot, the Secretary shall allow the next
intermediate rate, but in no event in excess of
[$3,827] $3,907. In the event the veteran has suffered
service-connected blindness, having only light
perception or less, and has also suffered bilateral
deafness (and the hearing impairment in either one or
both ears is service connected) rated at 10 or 20
percent disabling, the Secretary shall allow the next
intermediate rate, but in no event in excess of
[$3,827] $3,907. In the event the veteran has suffered
the anatomical loss or loss of use, or a combination of
anatomical loss and loss of use, of three extremities,
the Secretary shall allow the next higher rate or
intermediate rate, but in no event in excess of
[$3,827] $3,907. Any intermediate rate under this
subsection shall be established at the arithmetic mean,
rounded down to the nearest dollar, between the two
rates concerned;
(r) Subject to section 5503(c) of this title, if any
veteran, otherwise entitled to compensation authorized
under subsection (o) of this section, at the maximum
rate authorized under subsection (p) of this section,
or at the intermediate rate authorized between the
rates authorized under subsections (n) and (o) of this
section and at the rate authorized under subsection (k)
of this section, is in need of regular aid and
attendance, then, in addition to such compensation--
(1) the veteran shall be paid a monthly aid
and attendance allowance at the rate of
[$1,643] $1,677; or
(2) if the veteran, in addition to such need
for regular aid and attendance, is in need of a
higher level of care, such veteran shall be
paid a monthly aid and attendance allowance at
the rate of [$2,446] $2,497, in lieu of the
allowance authorized in clause (1) of this
subsection, if the Secretary finds that the
veteran, in the absence of the provision of
such care, would require hospitalization,
nursing home care, or other residential
institutional care.
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(s) If the veteran has a service-connected disability
rated as total, and (1) has additional service-
connected disability or disabilities independently
ratable at 60 percent or more, or, (2) by reason of
such veteran's service-connected disability or
disabilities, is permanently housebound, then the
monthly compensation shall be [$2,455] $2,506. For the
purposes of this subsection, the requirement of
``permanently housebound'' will be considered to have
been met when the veteran is substantially confined to
such veteran's house (ward or clinical areas, if
institutionalized) or immediate premises due to a
service-connected disability or disabilities which it
is reasonably certain will remain throughout such
veteran's lifetime.
Sec. 1115. Additional compensation for dependents
Any veteran entitled to compensation at the rates provided in
section 1114 of this title, and whose disability is rated not
less than 30 percent, shall be entitled to additional
compensation for dependents in the following monthly amounts:
(1) If and while rated totally disabled and--
(A) has a spouse but no child, [$125] $127;
(B) has a spouse and one or more children,
[$215] $219 plus [$64] $65 for each child in
excess of one;
(C) has no spouse but one or more children,
[$85] $86 plus [$64] $65 for each child in
excess of one;
(D) has a parent dependent upon such veteran
for support, then, in addition to the above
amounts, [$101] $103 for each parent so
dependent;
(E) notwithstanding the other provisions of
this paragraph, the monthly payable amount on
account of a spouse who is (i) a patient in a
nursing home or (ii) helpless or blind, or so
nearly helpless or blind as to need or require
the regular aid and attendance of another
person, shall be [$237] $241 for a totally
disabled veteran and proportionate amounts for
partially disabled veterans in accordance with
paragraph (2) of this section; and
(F) notwithstanding the other provisions of
this paragraph, the monthly amount payable on
account of each child who has attained the age
of eighteen years and who is pursuing a course
of instruction at an approved educational
institution shall be [$198] $202 for a totally
disabled veteran and proportionate amounts for
partially disabled veterans in accordance with
paragraph (2) of this section.
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SUBCHAPTER VI--GENERAL COMPENSATION PROVISIONS
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Sec. 1162. Clothing allowance
The Secretary under regulations which the Secretary shall
prescribe, shall pay a clothing allowance of [$588] $600 per
year to each veteran who--
(1) * * *
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CHAPTER 13--DEPENDENCY AND INDEMNITY COMPENSATION FOR SERVICE-CONNECTED
DEATHS
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SUBCHAPTER II--DEPENDENCY AND INDEMNITY COMPENSATION
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Sec. 1311. Dependency and indemnity compensation to a surviving spouse
(a)(1) Dependency and indemnity compensation shall be paid to
a surviving spouse at the monthly rate of [$948] $967.
(2) The rate under paragraph (1) shall be increased by [$204]
$208 in the case of the death of a veteran who at the time of
death was in receipt of or was entitled to receive (or but for
the receipt of retired pay or retirement pay was entitled to
receive) compensation for a service-connected disability that
was rated totally disabling for a continuous period of at least
eight years immediately preceding death. In determining the
period of a veteran's disability for purposes of the preceding
sentence, only periods in which the veteran was married to the
surviving spouse shall be considered.
(3) In the case of dependency and indemnity compensation paid
to a surviving spouse that is predicated on the death of a
veteran before January 1, 1993, the monthly rate of such
compensation shall be the amount based on the pay grade of such
veteran, as set forth in the following table, if the amount is
greater than the total amount determined with respect to that
veteran under paragraphs (1) and (2):
Monthly Monthly
[Pay grade rate Pay grade rate
E-1...................... $948 W-4........ $1,134
E-2...................... 948 O-1........ 1,001
E-3...................... 948 O-2........ 1,035
E-4...................... 948 O-3........ 1,107
E-5...................... 948 O-4........ 1,171
E-6...................... 948 O-5........ 1,289
E-7...................... 980 O-6........ 1,453
E-8...................... 1,035 O-7........ 1,570
E-9...................... \1\1,080 O-8........ 1,722
W-1...................... 1,001 O-9........ 1,843
W-2...................... 1,042 O-10....... \2\ 2,021
W-3...................... 1,072
\1\[If the veteran served as sergeant major of the Army, senior enlisted
advisor of the Navy, chief master sergeant of the Air Force, sergeant
major of the Marine Corps, or master chief petty officer of the Coast
Guard, at the applicable time designated by section 1302 of this
title, the surviving spouse's rate shall be $1,165.
\2\[If the veteran served as Chairman or Vice-Chairman of the Joint
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
Operations, Chief of Staff of the Air Force, Commandant of the Marine
Corps, or Commandant of the Coast Guard, at the applicable time
designated by section 1302 of this title, the surviving spouse's rate
shall be $2,168.]
Monthly Monthly
Pay grade rate Pay grade rate
E-1...................... $967 W-4........ $1,157
E-2...................... $967 O-1........ $1,022
E-3...................... $967 O-2........ $1,056
E-4...................... $967 O-3........ $1,130
E-5...................... $967 O-4........ $1,195
E-6...................... $967 O-5........ $1,316
E-7...................... $1,000 O-6........ $1,483
E-8...................... $1,056 O-7........ $1,602
E-9...................... $1,102\1\ O-8........ $1,758
W-1...................... $1,022 O-9........ $1,881
W-2...................... $1,063 O-10....... $2,063\2\
W-3...................... $1,094
\1\If the veteran served as sergeant major of the Army, senior enlisted
advisor of the Navy, chief master sergeant of the Air Force, sergeant
major of the Marine Corps, or master chief petty officer of the Coast
Guard, at the applicable time designated by section 1302 of this
title, the surviving spouse's rate shall be $1,189.
\2\If the veteran served as Chairman or Vice-Chairman of the Joint
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
Operations, Chief of Staff of the Air Force, Commandant of the Marine
Corps, or Commandant of the Coast Guard, at the applicable time
designated by section 1302 of this title, the surviving spouse's rate
shall be $2,213.
(b) If there is a surviving spouse with one or more children
below the age of eighteen of a deceased veteran, the dependency
and indemnity compensation paid monthly to the surviving spouse
shall be increased by [$237] $241 for each such child.
(c) The monthly rate of dependency and indemnity compensation
payable to a surviving spouse shall be increased by [$237] $241
if the spouse 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.
(d) The monthly rate of dependency and indemnity compensation
payable to a surviving spouse shall be increased by [$113] $115
if the surviving spouse is, by reason of disability,
permanently housebound but does not qualify for the aid and
attendance allowance under subsection (c) of this section. For
the purposes of this subsection, the requirement of
``permanently housebound'' will be considered to have been met
when the surviving spouse is substantially confined to such
surviving spouse's home (ward or clinical areas, if
institutionalized) or immediate premises by reason of a
disability or disabilities which it is reasonably certain will
remain throughout such surviving spouse's lifetime.
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Sec. 1313. Dependency and indemnity compensation to children
(a) Whenever there is no surviving spouse 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, [$402] $410;
(2) two children, [$578] $590;
(3) three children, [$752] $767; and
(4) more than three children, [$752] $767, plus
[$145] $148 for each child in excess of three.
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Sec. 1314. Supplemental dependency and indemnity compensation to
children
(a) In the case of a child entitled to dependency and
indemnity compensation who has attained the age of eighteen and
who, while under such age, became permanently incapable of
self-support, the dependency and indemnity compensation paid
monthly to such child shall be increased by [$237] $241.
(b) If dependency and indemnity compensation is payable
monthly to a person as a surviving spouse and there is a child
(of such person's deceased spouse) who has attained the age of
eighteen and who, while under such age, became permanently
incapable of self-support, dependency and indemnity
compensation shall be paid monthly to each such child,
concurrently with the payment of dependency and indemnity
compensation to the surviving spouse, in the amount of [$402]
$410.
(c) If dependency and indemnity compensation is payable
monthly to a person as a surviving spouse and there is a child
(of such person's deceased spouse), who has attained the age of
eighteen and who, while under the age of twenty-three, is
pursuing a course of instruction at an educational institution
approved under section 104 of this title, dependency and
indemnity compensation shall be paid monthly to each such
child, concurrently with the payment of dependency and
indemnity compensation to the surviving spouse, in the amount
of [$201] $205.
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