69–010

Calendar No. 216

106TH CONGRESS REPORT

1st Session " ! SENATE 106–108

VETERANS’ COMPENSATION COST-OF-LIVING ADJUSTMENT

ACT OF 1999

JULY 19, 1999.—Ordered to be printed

Mr. SPECTER, from the Committee on Veterans’ Affairs,

submitted the following

REPORT

[To accompany S. 1393]

The Committee on Veterans’ Affairs, reported an original bill S.

1393 to provide a cost-of-living adjustment in rates of compensation

for veterans with service-connected disabilities and dependency and

indemnity compensation for survivors of such veterans, to amend

title 38, United States Code, to codify the previous cost-of-living adjustment in such rates, and for other purposes, having considered

the same, reports favorably an original bill and recommends that

the original bill do pass.

INTRODUCTION

On May 19, 1999, Committee Chairman Arlen Specter introduced

S. 1076, the proposed ‘‘Veterans Benefits Act of 1999.’’ S. 1076

would have provided for a December 1, 1999, cost-of-living adjustment (COLA), equal to the December 1, 1999, COLA in Social Security benefits, in the rates of compensation for veterans who have

service-connected disabilities and in the rates of dependency and

indemnity compensation (DIC) for the survivors of those who died

from service-connected causes. In addition, S. 1076 would have,

among other things: reauthorized, modified, and enhanced certain

programs providing health care, education, and other benefits for

veterans; authorized major medical facility projects; reformed eligibility for burial in Arlington National Cemetery; granted fund raising and borrowing authorities to facilitate the construction of a

World War II Memorial; and modified provisions of law relating to

the retirement of judges on the United States Court of Appeals for

Veterans’ Claims.
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COMMITTEE HEARING

On May 20, 1999, the Committee held a hearing on a number of

bills pending before the Committee, including S. 1076. The Committee received testimony from Senator Kent Conrad; from representatives of the Department of Veterans Affairs (VA) and the

Department of Army; and from representatives of The American

Legion, the Veterans of Foreign Wars, the Disabled American Veterans, the Paralyzed Veterans of America, AMVETS, and the Vietnam Veterans of America. In addition, the Committee received

written statements for the record from the Chief Judge of the

United States Court of Appeals for Veterans Claims; and from representatives of the American Federation of Government Employees,

AFL-CIO, the National Association of Government Employees, the

National Association of VA Physicians and Dentists, the Nurses

Organization of Veterans Affairs, and National Coalition for Homeless Veterans.

COMMITTEE MEETING

On June 23, 1999, the Committee met in open session to consider

S. 1076, as amended, and other legislation pending before the Committee. Among the measures so considered was S. 1393 (hereinafter, the ‘‘Committee bill’’), an original bill which was derived from

and, except for technical changes, restated the text of Title I of S.

1076, as introduced. The Committee voted by unanimous voice vote

to report the Committee bill favorably to the Senate.

SUMMARY OF THE COMMITTEE BILL AS REPORTED

The Committee bill contains freestanding provisions that would

require the Secretary of Veterans Affairs to increase, effective December 1, 1999, the rates of and limitations on certain benefits

paid by VA by the same percentage as the COLA provided to Social

Security recipients and VA pension beneficiaries that become effective on the same date. The COLA would apply to:

1. basic compensation rates for veterans with service-connected disabilities and the rates payable for certain severe disabilities;

2. the allowances for spouses, children, and dependent parents paid to service-connected-disabled veterans rated 30 percent or more disabled;

3. the annual clothing allowance paid to veterans whose compensable disability requires the use of a prosthetic or orthopedic appliance (including a wheelchair) that tends to tear or

wear out clothing, or requires the use of a medication prescribed by a physician for a service-connected skin condition if

the medication causes irreparable damage to the veteran’s

outer garments; and

4. the DIC rates paid to:

(a) surviving spouses of veterans whose deaths were

service connected;

(b) surviving spouses for dependent children;

(c) surviving spouses who are so disabled that they need

aid and attendance or are permanently housebound; and
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(d) the children of veterans whose deaths were service connected if no surviving spouse is entitled to DIC, the child

is age 18 through 22 and attending an approved educational institution, or the child is age 18 or over and became permanently incapable of self-support prior to reaching age 18.

The Congressional Budget Office (CBO) currently estimates that

the COLA to be provided to Social Security recipients will be 2.7

percent.

The Committee bill also contains revisions to Title 38, United

States Code, that would codify in title 38, United States Code, increases in the above-summarized benefits provided by VA effective

December 1, 1998, under authority specified in Title XI of Public

Law 105–368.

BACKGROUND

Disability compensation

The service-connected disability compensation program under

chapter 11 of title 38, United States Code, provides monthly cash

benefits to veterans who have disabilities incurred or aggravated

during active duty in the Armed Forces.

The amount of compensation paid depends on the nature of the

veteran’s disability or combination of disabilities and the extent to

which the disability impairs earning capacity. VA rates compensable disabilities according to its Schedule for Rating Disabilities

on a graduated scale ranging from 0 to 100 percent, in 10-percent

increments. VA pays higher monthly rates (known as ‘‘special

monthly compensation’’) to totally disabled veterans with certain

specific, very severe disabilities or combinations of disabilities.

As of March 31, 1999, VA was providing disability compensation

to 2,283,425 veterans with service-connected disabilities. Among

the veterans receiving such compensation were 110 World War I

veterans; 559,345 World War II veterans; 176,716 Korean-conflict

veterans; 732,241 Vietnam-era veterans; and 259,961 veterans of

the Persian Gulf War era.

A veteran with a disability rated at 30 percent or more may receive additional compensation on behalf of the veteran’s spouse,

children, and dependent parents. These dependents’ allowances are

prorated according to the percentage of disability. As of March 31,

1999, 710,866 veterans received additional compensation on behalf

of 1,077,523 dependents.

Dependency and indemnity compensation

Under chapter 13 of title 38, VA pays dependency and indemnity

compensation to the survivors of service members or veterans who

died on or after January 1, 1957, from a disease or injury incurred

or aggravated during military service. Survivors eligible for DIC include surviving spouses, unmarried children under the age of 18,

certain helpless children age 18 or older, children between the ages

of 18 and 22 who are enrolled in school, and certain needy parents.

Under section 5312 of title 38, parents’ DIC rates are adjusted

automatically at the same time and by the same percentage as Social Security and VA pension benefits. Surviving spouses, children,
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and parents who are receiving death compensation based on deaths

before January 1, 1957, may elect to receive DIC instead of death

compensation.

For deaths prior to January 1, 1993, surviving spouses received

DIC at rates determined by the pay grade (service rank) of the deceased veteran. For deaths on or after January 1, 1993, surviving

spouses currently receive $861 per month and, if the deceased veteran was totally disabled for 8 years prior to death, an additional

$187 per month. Surviving spouses who had been receiving benefits

under the prior DIC program are paid under whichever program

will pay the higher benefit.

A surviving spouse who is so disabled as to be housebound or in

need of regular aid and attendance is eligible to receive an additional amount. A surviving spouse also may receive additional allowances on behalf of the veteran’s surviving children.

Children are entitled to DIC if there is no surviving spouse, if

they are 18 years or older and became permanently incapable of

self-support before reaching age 18, or if they are 18 to 22 years

old and pursuing an approved course of education.

As of March 31, 1999, VA was paying DIC benefits to, or on behalf of, 282,706 surviving spouses, 33,293 children, and 12,210

needy surviving parents.

Under section 1318(b) of title 38, VA pays benefits at DIC rates

to the surviving spouses and children of veterans whose deaths are

not service connected if the veteran, immediately prior to his or her

death, had been receiving (or had been entitled to receive) compensation at the 100-percent rate continuously for 10 or more years

or for at least 5 years from the date of discharge or release from

active duty.

History of cost-of-living increases

The Committee periodically reviews the service-connected disability compensation and DIC programs to ensure that the benefits

provide reasonable and adequate compensation for disabled veterans and their families. Based on this review, the Congress acts periodically to provide a cost-of-living adjustment in compensation

and DIC benefits. In fact, the Congress has provided annual increases in these rates for every fiscal year since 1976. The following table shows the percentage increases since 1975.

HISTORY OF SERVICE-CONNECTED DISABILITY COMPENSATION INCREASES, 1975 TO PRESENT

Fiscal year Effective date Increase

(percent)

Cumulative

(1969=$100)

1976 ................................................................. August 1975 .................................................... 11.8 158.55

1977 ................................................................. October 1976 ................................................... 8.0 171.23

1978 ................................................................. October 1977 ................................................... 6.6 182.53

1979 ................................................................. October 1978 ................................................... 7.3 195.86

1980 ................................................................. October 1979 ................................................... 9.9 215.25

1981 ................................................................. October 1980 ................................................... 14.3 246.03

1982 ................................................................. October 1981 ................................................... 11.2 273.58

1983 ................................................................. October 1982 ................................................... 7.4 293.82

1984 ................................................................. April 1983 ........................................................ 3.5 304.11

1985 ................................................................. December 1984 ................................................ 3.2 313.84

1986 ................................................................. December 1985 ................................................ 3.1 323.57

1987 ................................................................. December 1986 ................................................ 1.5 328.42

1988 ................................................................. December 1987 ................................................ 4.2 342.22
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HISTORY OF SERVICE-CONNECTED DISABILITY COMPENSATION INCREASES, 1975 TO PRESENT—

Continued

Fiscal year Effective date Increase

(percent)

Cumulative

(1969=$100)

1989 ................................................................. December 1988 ................................................ 4.1 356.25

1990 ................................................................. December 1989 ................................................ 4.7 372.99

1991 ................................................................. December 1990 1 ............................................. 5.4 393.13

1992 ................................................................. December 1991 ................................................ 3.7 407.68

1993 ................................................................. December 1992 ................................................ 3.0 419.91

1994 ................................................................. December 1993 ................................................ 2.6 430.83

1995 ................................................................. December 1994 2 ............................................. 2.8 442.89

1996 ................................................................. December 1995 2 ............................................. 2.6 454.41

1997 ................................................................. December 1996 ................................................ 2.9 467.59

1998 ................................................................. December 1997 2 ............................................. 2.1 477.41

1999 ................................................................. December 1998 2 ............................................. 1.3 483.62

2000 ................................................................. December 1999 2 ............................................. 2.7 3 496.68 3

1 Payment of the December 1990 increase was delayed until January 1992 by section 8005(b) of Public Law 101–508.

2 December 1994, 1995, 1997, 1998, and 1999 increases are rounded to the next lower dollar amount pursuant to sections 2(c)(2) of Public Law 103–418 and Public Law 104–57, and section 8031 of Public Law 105–33. 3 Estimate.

COMMITTEE BILL

The Committee bill would direct VA to compute and provide increases in the monthly rates of compensation and DIC, effective

December 1, 1999. The rates would be increased by the same percentage as the Social Security and VA pension COLA that will take

effect on that date. In accordance with section 8031 of the Balanced

Budget Act of 1997 (Public Law 105–33), amounts of compensation

so computed that are not even multiples of $1 will be rounded

down to the next lower whole dollar amount.

The increases in DIC automatically would result in identical percentage increases in benefits paid at DIC rates under section 1318

of title 38 to the surviving spouses and children of veterans who

had a service-connected disability at the time of death for which

they continuously were rated totally disabled for at least either (1)

10 years, or (2) 5 years from the date of discharge from active duty.

Under section 156(e)(1)(A) of Public Law 97–377, the DIC increases also automatically would result in the same percentage increases in Social Security benefits that were terminated by section

2205 of the Omnibus Budget Reconciliation Act of 1981 (OBRA

1981) (Public Law 97–35). Prior to OBRA 1981, those benefits had

been paid to certain surviving spouses of those who died on active

duty or from a service-connected disability on behalf of their children under 18 and children over age 19 who were secondary-school

students; OBRA 1981 reduced the eligibility cutoff age from 18 to

16 years old.

Section 314 of Public Law 100–322 amended section 156(a)(1) of

Public Law 97–377 to restore the benefits eliminated by the OBRA

1981. The DIC increase also would apply to these restored benefits,

effective December 1, 1999.

CBO, in its most recent baseline, estimated that the fiscal year

2000 Social Security COLA, and thus the COLA provided for by the

Committee bill, will be 2.7 percent. The actual Social Security

COLA could differ from this estimate. Rather than selecting any

particular percentage adjustment at the time the Committee ordered the bill reported, the Committee followed its prior practice of
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setting the COLA by reference to the Social Security increase. The

Committee believes this is the most equitable means of providing

increases in these important service-connected benefits.

COST ESTIMATE

In compliance with paragraph 11(a) of rule XXVI of the Standing

Rules of the Senate, the Committee, based on information supplied

by CBO, estimates that, compared to the CBO baseline, there

would be no costs or savings resulting from enactment of the Committee bill.

The cost estimate provided by CBO follows:

U.S. CONGRESS,

CONGRESSIONAL BUDGET OFFICE,

Washington, DC, June 30, 1999.

Hon. ARLEN SPECTER,

Chairman, Committee on Veterans’ Affairs,

U.S. Senate, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office (CBO)

has prepared the enclosed cost estimate for the Veterans Benefits

Act of 1999.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Charles Riemann.

Sincerely.

DAN L. CRIPPEN, Director.

Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

Veterans Compensation Cost-of-Living Adjustment Act of 1999

The bill 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, 1999, and the results of the adjustment would

be rounded to the next lower dollar. However, the COLA is assumed in the budget resolution 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). As a result, the bill would

have no budgetary effect relative to the baseline. Relative to current law, enacting this bill would increase spending for these programs by about $360 million in 2000 and about $360 million in

2000 and about $480 million a year thereafter.

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would

not affect the budgets of state, local or tribal governments.

The estimate was prepared by Charles Riemann. This estimate

was approved by Robert A. Sunshine, Deputy Assistant Director for

Budget Analysis.
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REGULATORY IMPACT STATEMENT

In compliance with paragraph 11(b) of rule XXVI of the Standing

Rules of the Senate, the Committee on Veterans’ Affairs has made

an evaluation of the regulatory impact that would be incurred in

carrying out the Committee bill. The Committee finds that the

Committee bill would not entail any regulation of individuals or

businesses or result in any impact on the personal privacy of any

individuals and that the paperwork resulting from enactment

would be minimal.

TABULATION OF VOTES CAST IN COMMITTEE

In compliance with paragraph 7 of rule XXVI of the Standing

Rules of the Senate, the following is a tabulation of votes cast in

person or by proxy by members of the Committee on Veterans’ Affairs at its June 23, 1999, meeting. On that date, the Committee,

by unanimous voice vote, ordered S. 1393, an original bill to provide a cost-of-living adjustment in rates of compensation paid to

veterans with service-connected disabilities, to amend title 38,

United States Code, to codify the previous cost-of-living adjustment

in such rates, and for other purposes, reported favorably to the

Senate.

AGENCY REPORT

On May 20, 1999, the Honorable Togo D. West, Jr., Secretary of

Veterans Affairs, appeared before the Committee and submitted

testimony on, among other things, certain provisions of S. 1076.

Excerpts from these statements are reprinted below:

STATEMENT OF TOGO D. WEST, JR., SECRETARY OF

VETERANS AFFAIRS

Good afternoon, Mr. Chairman and Members of the

Committee: It is a pleasure for me to appear before you to

provide our Department’s views on the various proposals

that comprise today’s agenda. These include S. 555 and S.

695, which deal with education and burial benefits, respectively, and S. 940, an Administration bill you introduced

on our behalf which we view as critical to our having an

organizational structure needed to accomplish VA’s mission as we enter the next millennium. You also asked that

we testify on the provisions of a draft omnibus Committee

bill you plan to introduce.

* * * * * * *

OMNIBUS DRAFT BILL

Turning now to the draft Committee bill, I want to provide the following comments on selected provisions that I

will identify by their associated section numbers and headings as they appear in the draft summary we were furnished.
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TITLE I—COMPENSATION COST-OF-LIVING

ADJUSTMENT

Subtitle A—Compensation Cost-of-Living Adjustment (Secs.

102 and 103)

Sections 102 and 103 of the draft bill would direct the

Secretary of Veterans Affairs to increase administratively

the rates of compensation for service-disabled veterans and

of dependency and indemnity compensation (DIC) for the

survivors of veterans whose deaths are service related, effective December 1, 1999. The President’s fiscal year 2000

budget submission proposes a cost of living adjustment

(COLA) for compensation and DIC recipients at the same

rate of increase as the COLA that will be provided under

current law to veterans’ pension and Social Security recipients, which is currently estimated to be 2.4 percent. Pursuant to sections 1104(a) and 1303(a) of title 38, United

States Code, in determining the new rates, we would be

required to round any fractional dollar amounts to the

next lower whole dollar. We believe this proposed COLA is

necessary and appropriate in order to protect the affected

benefits from the eroding effects of inflation. Therefore, we

strongly support its enactment.

We estimate enactment would cost $293.3 million during

FY 2000 and $4.97 billion over the period FY’s 2000–2004.

Subtitle B—Compensation Rate Amendments (Secs. 111

through 116)

Sections 111 through 116 of the draft bill would amend

appropriate sections of title 38, United States Code, to codify the rates of disability compensation and DIC that were

increased, effective December 1, 1998, pursuant to section

1101 of Public Law 105–368. We support the enactment of

this provision.

* * * * * * *

CHANGES IN EXISTING LAW MADE BY THE COMMITTEE BILL, AS

REPORTED

In compliance with paragraph 12 of Rule XXVI of the Standing

Rules of the Senate, changes in existing law made by the Committee bill, as reported, are shown as follows (existing law proposed to

be omitted is enclosed in black brackets, new matter is printed in

italic, existing law in which no change is proposed is shown in

roman):

TITLE 38, UNITED STATES CODE

* * * * * * *
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PART II—GENERAL BENEFITS

CHAPTER 11—COMPENSATION FOR SERVICECONNECTED DISABILITY OR DEATH

* * * * * * *

Subchapter II—Wartime Disability Compensation

* * * * * * *

§ 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 ø$95¿ $96;

(b) if and while the disability is rated 20 percent the monthly

compensation shall be ø$182¿ $184;

(c) if and while the disability is rated 30 percent the monthly

compensation shall be ø$279¿ $282;

(d) if and while the disability is rated 40 percent the monthly

compensation shall be ø$399¿ $404;

(e) if and while the disability is rated 50 percent the monthly

compensation shall be ø$569¿ $576;

(f) if and while the disability is rated 60 percent the monthly

compensation shall be ø$717¿ $726;

(g) if and while the disability is rated 70 percent the monthly

compensation shall be ø$905¿ $916;

(h) if and while the disability is rated 80 percent the monthly compensation shall be ø$1,049¿ $1,062;

(i) if and while the disability is rated 90 percent the monthly

compensation shall be ø$1,181¿ $1,196;

(j) if and while the disability is rated as total the monthly

compensation shall be ø$1,964¿ $1,989;

(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, or

has suffered complete organic aphonia with constant inability

to communicate by speech, or deafness of both ears, having absence of air and bone conduction, the rate of compensation

therefor shall be $75 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 ø$2,443¿ $2,474 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 $75 per month for each such loss or loss of use,

but in no event to exceed ø$3,426¿ $3,470 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 help-
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less as to be in need of regular aid and attendance, the monthly compensation shall be ø$2,443¿ $2,474;

(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 ø$2,694¿ $2,729;

(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 ø$3,066¿ $3,105;

(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 ø$3,426¿ $3,470;

(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 ø$3,426¿ $3,470.

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 ø$3,426¿ $3,470. In the

event the veteran has suffered service-connected blindness,

having only light perception or less, and has also suffered bi-
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lateral 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 ø$3,426¿ $3,470. 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 ø$3,426¿ $3,470. Any

intermediate rate under this subsection shall be established at

the arithmetic mean, rounded down to the nearest dollar, between the two rates concerned;

(q) * * *

(r) subject to section 5503(e) 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 ø$1,471¿ $1,490; 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 ø$2,190¿ $2,218, 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. For the

purposes of clause (2) of this subsection, need for a higher

level of care shall be considered to be need for personal

health-care services provided on a daily basis in the veteran’s home by a person who is licensed to provide such

services or who provides such services under the regular

supervision of a licensed health-care professional. The existence of the need for such care shall be determined by a

physician employed by the Department or, in areas where

no such physician is available, by a physician carrying out

such function under contract or fee arrangement based on

an examination by such physician. For the purposes of section 1134 of this title, such allowance shall be considered

as additional compensation payable for disability.

(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 ø$2,199¿ $2,227. 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-con-
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nected disability or disabilities which it is reasonably certain

will remain throughout such veteran’s lifetime.

§ 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, ø$114¿ $115;

(B) has a spouse and one or more children, ø$195¿ $197

plus $60 for each child in excess of one;

(C) has no spouse but one or more children, ø$78¿ $79

plus $60 for each child in excess of one;

(D) has a parent dependent upon such veteran for support, then, in addition to the above amounts, ø$92¿ $93 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

ø$215¿ $217 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 ø$180¿ $182 for a totally disabled veteran and proportionate amounts for partially disabled veterans in accordance with paragraph (2) of this

section.

* * * * * * *

§ 1162. Clothing allowance

The Secretary under regulations which the Secretary shall prescribe, shall pay a clothing allowance of ø$528¿ $534 per year to

each veteran who—

(1) * * *

* * * * * * *

CHAPTER 13—DEPENDENCY AND INDEMNITY

COMPENSATION FOR SERVICE-CONNECTED DEATHS

* * * * * * *

Subchapter II—Dependency and Indemnity Compensations

* * * * * * *
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§ 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 ø$850¿ $861.

(2) The rate under paragraph (1) shall be increased by ø$185¿

$187 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):

øPay grade Monthly

rate Pay grade Monthlyrate

E–1 ......................................................................... $850 W–4 ...................................................................... $1,017

E–2 ......................................................................... 850 O–1 ...................................................................... 898

E–3 ......................................................................... 850 O–2 ...................................................................... 928

E–4 ......................................................................... 850 O–3 ...................................................................... 992

E–5 ......................................................................... 850 O–4 ...................................................................... 1,049

E–6 ......................................................................... 850 O–5 ...................................................................... 1,155

E–7 ......................................................................... 879 O–6 ...................................................................... 1,302

E–8 ......................................................................... 928 O–7 ...................................................................... 1,406

E–9 ......................................................................... 1 968 O–8 ...................................................................... 1,541

W–1 ........................................................................ 898 O–9 ...................................................................... 1,651

W–2 ........................................................................ 934 O–10 .................................................................... 2 1,811

W–3 ........................................................................ 962

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 402 of this title,

the surviving spouse’s rate shall be $1,044. 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 402 of this title, the surviving spouse’s rate shall be $1,941.¿

Pay grade Monthly

rate Pay grade Monthlyrate

E–1 ......................................................................... $861 W–4 ...................................................................... $1,030

E–2 ......................................................................... 861 O–1 ...................................................................... 909

E–3 ......................................................................... 861 O–2 ...................................................................... 940

E–4 ......................................................................... 861 O–3 ...................................................................... 1,004

E–5 ......................................................................... 861 O–4 ...................................................................... 1,062

E–6 ......................................................................... 861 O–5 ...................................................................... 1,170

E–7 ......................................................................... 890 O–6 ...................................................................... 1,318

E–8 ......................................................................... 940 O–7 ...................................................................... 1,424

E–9 ......................................................................... 1 980 O–8 ...................................................................... 1,561

W–1 ........................................................................ 909 O–9 ...................................................................... 1,672

W–2 ........................................................................ 946 O–10 .................................................................... 2 1,834

W–3 ........................................................................ 974

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 $1,057. 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 $1,966.
14

(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 ø$215¿ $217 for each such child.

(c) The monthly rate of dependency and indemnity compensation

payable to a surviving spouse shall be increased by ø$215¿ $217

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 ø$104¿ $105

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.

* * * * * * *

§ 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, ø$361¿ $365;

(2) two children, ø$520¿ $526;

(3) three children, ø$675¿ $683; and

(4) more than three children, ø$675¿ $683, plus ø$132¿ $133

for each child in excess of three.

(b) * * *

§ 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 ø$215¿ $217.

(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 selfsupport, 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 ø$361¿ $365.

(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
15

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 ø$182¿ $184.

* * * * * * *

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