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Human Resources Division 

B-254134 

November 24,1993 

The Honorable Frank H. Murkowski 

Ranking Minority Member 

Committee on Veterans’ Affairs 

United States Senate 

Dear Senator Murkowsld: 

In response to your request, we are reporting on disabled veterans’ benefits in the United States 

and foreign countries. We examined how veterans’ benefits provided by the United States 

compared with those provided by other counties. 

We are sending copies of the report to interested congressional committees, the Secretary of 

Veterans Affairs, the Director of the Office of Management and Budget, and other interested 

parties. We also will make copies available to others upon request. 

If you have any questions concerning the report, please call me at (202) 512-7215. Other major 

contributors are listed in appendix XI. 

Sincerely yours, 

Joseph F. Delfico 

Director, Income Security Issues 
Executive Summary 

Purpose Growing budget deficits have forced the Congress to scrutinize 

expenditures in the country’s entitlement programs. The Department of 

Veterans Affairs (VA) administers some of the largest entitlement programs 

in the country. The Ranking Minority Member of the Senate Committee on 

Veterans’ Affairs asked GAO to compare the benefits the United States 

provides to disabled veterans with benefits provided by other countries. 

He was particularly interested in differences in types and amounts of 

benefits, eligibility for benefits, and types of agencies administering 

programs for disabled veterans. 

Background The United States provided over $33 billion in benefits to the nation’s 

veterans, their survivors, and dependents in 1992. These benefits include 

income support, health care, and a variety of other benefits for disabled 

veterans. GAO reviewed programs of five foreign countries-Australia, 

Canada, Finland, Germany, and the United Kingdom-and compared the 

benefits those countries provide with benefits provided by the United 

States. 

While reasonable comparisons can be made of the eligibility for and types 

of benefits provided, meaningful comparisons of the amounts of cash 

received by veterans under individual programs cannot be made because 

(I) the programs are not provided by all countries and (2) complete data 

are not available on the number of veterans receiving benefits under more 

than one major program at the same time or on benefits provided to 

disabled veterans under programs serving the general population. (See 

p. 16.) 

The nine program areas compared and the U.S. expenditures for each area 

during fiscal year 1992 are 

(1) compensation for service-connected disabilities-Cash is provided to 

veterans and their survivors for disabilities resulting from injuries or 

diseases that were incurred or aggravated during active military service 

($12.7 billion); 

(‘2) compensation for war veterans based on need-Cash is provided to 

permanently and totally disabled wartime veterans and their survivors, 

usually for nonservice-connected disabilities, on the basis of financial 

need ($3.6 billion); 

Page 2 GAO/HRD-94-6 Disabled Veterans Programs 
Executive Summary 

(3) military disability retirement-Cash is provided to military service 

members and their survivors because the members became physically 

unfit to perform duties required of their grade, office, rank, or rating 

($1.5 billion); 

(4) health care-Medical care is provided for veterans and some 

dependents and survivors ($13.6 billion); 

(5) education benefits-Cash is provided for educational needs of veterans 

and dependents of deceased veterans or of veterans totally disabled from 

service-connected causes ($692 million); 

(6) job assistance-Training and job placement assistance is provided for 

veterans and some dependents and survivors ($348 million); 

(7) housing benefits-A guaranty to lenders is provided against financial 

losses on loans to veterans, active duty military personnel, and certain 

surviving spouses seeking to buy, build, refinance, or repair a home 

($63 1 million); 

(8) burial benefits-Such items as burial plots in national cemeteries, 

headstones, flags, and other allowances are provided to veterans and their 

survivors ($104 million); 

(9) life insurance-Protection is provided for military personnel and 

veterans, largely at their own expense. 

Results in Brief The United States offers benefits specifically for disabled veterans and 

their survivors in more program areas than any of the five other countries 

studied. However, there are major differences in the types of benefits 

offered, the eligibility requirements used to qualify for the benefits, and the 

methods used to compute the benefits. Where they do not have special 

programs for disabled veterans, the foreign countries provide some of the 

benefits the United States provides through programs that serve the 

general population as well. In fact, Germany and the United Kingdom 

administer most of their special veterans programs through general social 

service agencies rather than a separate veterans agency like the United 

States, Australia, Canada, and Finland. 

Countries differ in the extent to which a veteran’s disability must be 

service-connected in order for the veteran to receive benefits. Most foreign 

Page 3 GAO/HRD-94-6 Disabled Veterans Programs 
Executive Summary 

countries require that a disability be closely related to the performance of 

military duty to qualify for disability benefits; no such link is required in 

the United States. As a result of the difference in eligibility requirements, 

the United States provides benefits for some disabilities that other 

countries would not. In a 1989 report,’ GAO recommended that the 

Congress consider tightening the U.S. criteria. 

Principal Findings 

Differences in Veterans 

Benefits 

The United States offers several benefits to its veterans that most of the 

other countries do not offer. For example, the United States is one of two 

countries in GAO’S study offering life insurance for veterans and one of 

three countries providing special job assistance for veterans. AIso, only 

the United States provides educational benefits to its veterans; the five 

other countries limit educational benefits to children of disabled or 

deceased veterans. However, most countries provide health care for 

disabled veterans. (See p. 24-28.) 

All countries have programs that provide cash benefits for 

service-connected disabilities. However, the countries use different 

considerations in establishing the eligibility for and amount of 

compensation. For example, U.S. disability compensation is based on the 

average loss of earning capacity due to the service-connected disability. 

Australia’s program compensates the veteran on the basis of physical or 

mental impairment and restriction of lifestyle due to the disability; the 

United Kingdom bases its compensation on the veteran’s condition 

compared with that of a normal healthy person of the same age and sex, 

with earning capacity not considered. (See p. 19-20.) 

Differences in Survivors 

Benefits 

All countries provide benefits to SLLMVOTS of veterans who died of 

service-connected disabilities. However, there are differences in eligibility 

for benefits when the death of these veterans is from 

nonservice-connected causes. In the United States, sukvors of veterans 

who died from nonservice-connected causes can qualify for survivors 

benefits for disability compensation only when the veteran had been 

totally disabled from a service-connected disability for at least 10 years 

immediately preceding death or continuously since separation from the 

‘VA Benefits: Law Allows Compensation for Disabilities Unrelated to Military Service 

(GAO/HRD-S9-60, July 341989). 

Page 4 GAO/HRD-94-6 Disabled Veterans Programs 
Executive Summary 

military for a period of at least 5 years. In Canada, F’inland, and Germany, 

however, veterans who had service-connected disabilities but died from a 

nonservice-connected cause do not have to have been totally disabled for 

their survivors to qualify for benefits under counterpart programs. 

Australia and the United Kingdom, on the other hand, have more 

restrictive eligibility requirements for survivors benefits than the United 

States. In the United Kingdom, only survivors of veterans whose death was 

service-connected qualify for benefits. Nearly 90 percent of Australian 

survivors had to demonstrate that the veteran’s death was 

service-connected in order to qualify for benefits. (See p. 29-30.) 

Differences in Relationship The definition of service connection is important because it determines 

of Disability to Military eligibility for cash compensation and can affect eligibility for, or amounts 

Service of, other types of benefits. In the United States, a disease or injury 

resulting in disability is considered service-connected if it was incurred 

during a veteran’s military tour or, if incurred before service, was 

aggravated by that service. The definition used by most other countries 

requires a close relationship between the disability and events occurring 

while performing military duties. To gain additional insight into these 

differences, GAO asked officials in each country whether they would 

compensate veterans for service-connected disabilities in 12 hypothetical 

cases. In general, the responses show that other countries will compensate 

veterans for service-connected disabilities under many of the same 

circumstances that the United States will, but they are less likely to do so 

when diseases are unrelated to military service, when the relationship of 

the disease to military service could not be established, or for off-duty 

injuries such as those that happen while on vacation. (See p. 35-38.) 

Agency Comments In a letter dated September 8, 1993, the Secretary of Veterans Affairs 

stated that the report provides an interesting comparison of US. veterans’ 

benefits with similar benefits provided by several foreign countries. (See 

p. 95.) The Secretary said, however, that the report did not discuss the 

policy and socioeconomic issues that define each country’s veterans 

programs and did not present any quantitative data showing the cost 

impact of offering the programs. He believes that this information is 

essential to make a meaningful comparison of benefits. He also stated that 

the GAO should limit use of the term “compensation” to describe 

service-connected disability payments since this is the term traditionally 

Page 5 GAOIHRD-94-6 Disabled Veterans Programs 
Executive Summary 

associated with this program, Finally, he noted that his staff had provided 

GAO with some technicaI CIarifrCatiOns. 

It was not within the scope of this assignment to explore the historical 

evolution of veterans benefits programs in the U.S. or elsewhere. Rather, 

GAO was requested to compare benefit types, elig,ibilily, and administration 

between the U.S. and other countries. 

GAO agrees that quantitative data comparing the monetary value of the 

various programs would be beneficial However, as noted in the report 

(p. 16), such a comparison is not possible because not all countries 

provide all programs and, in those countries having the programs, data are 

lacking to make such a comparison. 

GAO does not agree with the Secretary’s concern about the use of the term 

“compensation.” Given the context in which this term is used in the report, 

GAO beieves that the term’s meaning should be sufficiently clear. 

The technical ckuifications the Secretary refers to were provided to GAO 

before receipt of his letter and were incorporated in the report where 

appropriate. 

Page 6 GAOIHRD-94-6 Disabled Veterans Programs 
Page 7 GAO/HRD-94-6 Disabled Veterans Programs 
Contents 

Executive Summary 

Chapter 1 

Introduction U.S. Programs for Disabled Veterans 

Objective, Scope, and Methodology 

Perspective on Countries Included in This Report 

Chapter 2 

Differences 

Benefits for 

in All Countries Compensate Veterans for Service-Connected 

Disabilities but Use Different Payment Bases 

Disabled U.S. Compensation Program for Needy Veterans Has Different 

Veterans Eligibility Requirements Than Similar Programs in Other 

Countries 

Military Disability Retirement Programs Differ in Ways 

Compensation Amounts Are Determined 

U.S. Criteria for Receiving Compensation From Multiple Cash 

Programs Differ From Other Countries 

Most Countries Provide Specific Health Care Programs for 

Disabled Veterans 

The United States Is the Only Country That Provides Educational 

Benefits to Veterans 

The United States and Two Other Countries Have Job Assistance 

Programs Specifically for Veterans 

Veterans Housing Programs Vary in Scope 

Some Countries Provide Burial Benefits Only for Veterans With 

Service-Connected Disabilities 

The United States and Canada Have Life Insurance Programs for 

Disabled Veterans 

21 ! 

I 

22 ] 

24 / 

25 

26 [ 

27 

27 j 

28 1 

Chapter 3 

Differences in Eligibility Criteria Differ Among Countries Regarding 

Benefits for Survivors 

Compensation for Survivors of Disabled Veterans 

Needs-Based Compensation Is Provided to Survivors by the 

of Disabled Veterm United States and Four Other Countries 

Survivors’ Military Disability Retirement Benefits Computed 

Differently Among the Countries 

The United States and Two Other Countries Offer Special Health 

Care Benefits to Survivors 

U.S. Survivors’ Education Benefits Differ From Other Countries’ 

in Beneficiaries Covered and in Eligibility Requirements 

29 j 

29 j 

I I 

31 

31 1 

32 : 

33 j 

Page 8 GAO/HRD-94-6 Disabled Veterans Programs ; 
. 

Contents 

The United States Is the Only Country Providing Special 

Assistance to Survivors Seeking Jobs 

The United States and Three Other Countries Provide Survivors’ 

Housing Benefits 

The United States, Australia, and Germany Are the Only 

Countries That Provide Survivors Burial Benefits 

Chapter 4 

Differences Among 

Countries in 

Relationship of 

Disability to Military 

United Sates Defines Service-Connection More Broadly Than 

Other Countries 

Hypothetical Cases Show United States Would Compensate for 

More Types of Disabilities 

36 

Service 

Appendix I 

United States 

Programs for Disabled 

Veterans, Their 

Survivors, and 

Dependents During 

1990 

Appendix II 

Australian Programs 

for Disabled Veterans, 

Their Survivors, and 

Dependents During 

1990 

52 

Page 9 GAO/HFtD-94-6 Disabled Veterans Programs 
Contents 

Appendix III 

Canadian Programs 

for Disabled Veterans, 

Their Survivors, and 

Dependents During 

1990 

60 

Appendix IV 

Finnish Programs for 

Disabled Veterans, 

Their Survivors, and 

Dependents During 

1990 

68 

Appendix V 

German Programs for 

Disabled Veterans, 

Their Survivors, and 

Dependents During 

1990 

Appendix VI 

United Kingdom 

Programs for Disabled 

Veterans, Their 

Survivors, and 

Dependents During 

1990 

82 

Page 10 GAO/HRD-94-6 Disabled Veterans Programs 
Content9 

Appendix VII 

Average Amount Paid 

in Fiscal Year 1990 for 

Major Compensation 

Programs SpecifkaIly 

for Disabled Veterans 

Appendix VIII 

Average Amount Paid 

in Fiscal Year 1990 for 

Major Compensation 

Programs Specifically 

for Survivors of 

Disabled Veterans 

89 

Appendix IX 

Administration of 

Veterans Benefits 

Programs 

Several Countries Have Agencies Specifically for Veterans 

Other Countries’ Social Services Agencies Administer F’rograms 

for Disabled Veterans 

90 

90 

91 

The Workings of the Appeals Process 92 

Appendix X 

a 

95 

Comments From the 

Department of 

Veterans Affairs 

Appendix XI 96 

Major Contributors to Human Resources Division, Washington, D.C. 96 Trmlatim 96 

This Report 

Tables Table 1.1: Demographic Information on Countries Studied 17 

Table 1.2: 1990 Gross Domestic Product of Countries Studied 18 

Page 11 GAO/I-IRD-94-6 Disabled Veterans Programs 
Contents 

Table 2.1: Availability of Specific Programs for Disabled Veterans 

During 1990 

19 

Table 2.2: Differences in Range of Disabilities Covered by the 

United States and Other Countries 

Table 2.3: Comparison of U.S., Australian, and Canadian 

Compensation Reduction Features for Needs-Based Veterans 

Programs 

20 

22 

Table 3.1: Specific Programs Available to Survivors of Disabled 

Veterans During 1990 

29 

Table 3.2: Methods of Computing Military Disability Retirement 

Survivors Benefits in the Four Countries Studied That Have Such 

a Program 

32 

Table 4.1: How the United States and Five Other Countries Would 

Compensate Veterans for Disabilities in 12 Hypothetical Cases 

37 

Abbreviations 

DIC Dependency and Indemnity Compensation 

DOL Department of Labor 

GAO General Accounting Office 

OPM Office of Personnel Management 

VA Department of Veterans Affairs 

Page 12 GAO/HRD-94-6 Disabled Veterans Programs 
Page 13 GAOMRD-94-6 Disabled Veterans Programs 
4 

Chapter 1 

Introduction 

U.S. PrograJ.ns for 

Disabled Veterans 

. 

. 

. 

I 

. 

For fiscal year 1992, benefits for veterans, their survivors, and dependents 

totaled $33 billion, including programs for income support, health care, 

and a variety of other programs specifically for veterans who have 

disabilities. The Department of Veterans Affairs (VA) administers the 

majority of these programs. Many foreign countries also have programs 

designed to provide benefits for disabled veterans. 

The delivery of benefits to disabled veterans in the United States can be 

categorized into nine program areas. These areas and the fiscal year 1992 

expenditures are as follows: 

Compensation for service-connected disabilities. This program provides 

cash benefits to veterans and their survivors for disabilities resulting from 

ir&.u-ies or diseases that are incurred or aggravated during active military 

service. ($12.7 billion.) 

Compensation for disabled war veterans based on need (called the 

Pension program in the United States). This program provides cash to 

permanently and totally disabled wartime veterans and their survivors, 

usually for nonservice-connected disabilities, based on their financial 

need. ($3.6 billion.) 

Military disability retirement, This program, administered by the 

Department of Defense, provides cash benefits to active-duty service 

members who become physically unfit to perform duties required of their 

grade, office, rank, or rating, and their survivors. ($1.5 billion.) 

Health care. This program provides comprehensive health care to eligible 

veterans and some dependents and survivors. ($13.6 billion.) 

Education benefits. This program provides cash for the educational needs 

of veterans and, in some cases, their dependents and survivors. 

($692 million.) 

Job assistance. These programs fund training and job placement 

assistance, including preference for federal civil service employment for 

veterans with service-connected disabilities and some dependents and 

survivors. (Department of Veterans Affairs-$198 million and Department of 

Labor-$1 50 million.) 

Housing benefits. This program provides a guaranty to lenders against 

financial loss pertaining to the acquisition, building, refinance, or repair of 

a home by veterans, active-duty military personnel, and certain surviving 

spouses. ($631 million.) 

Burial benefits. This program provides burial in national cemeteries for 

veterans, spouses, and dependent children and allowances on behalf of 

Page 14 GAO/EIRD-94-6 Disabled Veterans Programs 
Chapter 1 

Introduction 

disabled veterans and their survivors for such items as headstones, plots, 

and flags. ($104 million.) 

l Life insurance. This program provides life insurance to military personnel 

and certain veterans largely at their own expense. 

Objective, Scope, and The Ranking Minority Member of the Senate Committee on Veterans’ 

Methodology 

Affairs asked us to review the benefits other countries provide to disabled 

veterans and compare these benefits with those provided by the United 

States. Specifically, he was interested in 

l differences in eligibility for benefits, 

l types and amounts of benefits that are available, and 

l types of agencies administering programs for disabled veterans. 

We compared the disabled veterans benefits programs of the United States 

with those of Australia, Canada, Finland, Germany, and the United 

Kingdom. We selected these countries on a judgmental basis, considering 

that each (1) provides benefits specifically for disabled veterans, (2) has 

an active military establishment that has been involved in at least one war 

in the past 50 years, and (3) is among the economically advanced countries 

in the world. 

Our analyses for each country included data on (1) the veteran population; 

(2) the disabled veteran population; (3) program expenditures for fiscal 

year 1990, the base year used in our comparisons; (4) objectives and 

eligibility criteria for the programs; (5) numbers and types of program 

participants; (6) the range of monetary benefits or services provided; 

(7) methods of computing benefit amounts; (8) the structure of the 

veterans appeals process; and (9) the types of agencies administering 

programs. Germany provided this information in German; we used 

translators from VA and the Department of State to translate these 

documents into English. We prepared summaries of information used in 

this report and asked officials in the other countries to review and 

comment on these summaries. Their comments were considered in 

finalizing this reportWe did not make an in-depth analysis of policy perspectives behind each 

country’s veterans programs nor did we attempt to review the entire 

income security system in each country that may provide additional 

benefits to veterans as well as other citizens. Where a country did not have 

a program in a benefit area specifically for disabled veterans, we identified 

Page 15 GAO/IIRD-94-6 Disabled Veterans Programs 
Chapter 1 

Introduction 

that country’s social services programs to determine whether disabled 

veterans might be able to get benefits from programs serving that 

country’s general population. Where appropriate, benefits from these 

nonveteran-specific programs are described. 

Also, comparisons among the countries of benefim paid to disabled 

veterans for the major cash programs--compensation for 

service-connected disabilities, needs-based compensation, and military 

disability retirement-are not possible. This is because (1) not all 

countries provide benefits under all major cash programs, (2) veterans 

may receive benefits under more than one major cash program and an 

unduplicated count of veterans receiving program benefits is not available 

for other countries, and (3) complete data are not available on benefits 

provided to disabled veterans in programs designed for the general 

population. 

To quantify the monetary benefits of the programs, we collected data on 

each country’s expenditures for its own fiscal year 1990. We used 1990 

benchmark purchasing power parities1 published in National Accounts, a 

1991 Organization for Economic Cooperation and Development document, 

to convert these expenditure levels to their equivalent in U.S. dollars, The 

converted amounts are used throughout this report. 

To examine the conditions under which other countries would provide 

compensation to veterans for service-connected disabihties, we developed 

12 hypothetical cases and asked officials in other countries whether and to 

what extent compensation would be provided by their countries for each 

case. The United States would provide compensation in all but two of 

these hypothetical cases. The hypothetical cases were developed using 

examples from a prior report2 as a guideline. The cases were discussed 

with VA’S then Assistant Director for Adjudication Procedures, 

Compensation and Pension Service to obtain his concurrence that they 

represented the types of cases the VA approves. While the cases represent 

the broad range of situations VA adjudicates, we did not ascertain the 

numbers of each type of case the VA encountered in 1990. Thus, we do not 

know the extent to which these cases represent VA’S actual experience. 

‘Purchasing power parities are the units of each currency required to purchase the same quantity of 

goods and services within each respective country as a U.S. dollar can purchase in the United States 

In this sense, purchasing power parities are the terms of exchange that equal national price levels. 

%‘A Benefits: Law Aliows Compensation for Disabilities Unrelated to Military Service 

(GAO/HRD-89a, July 31, 1989). 

Page 16 GAOIWRD-94-6 Disabled Veterans Programs 
Chapter 1 

Introduction 

Perspective on 

Countries Included in 

This Report 

We conducted our review from April 1991 through January 1993. Our 

review was conducted in accordance with generally accepted government 

auditing standards. 

The United States and each of the five foreign countries studied have 

programs to provide benefits for disabled veterans and an active military 

establishment. Each of these countries was involved in World War II, and, 

except for Germany, each has been involved in military activities around 

the world in more recent years. All six countries define a veteran as a 

former member of the armed forces, including at least the army, navy, and 

air force. Finland considers only those who served in war as veterans, but 

provides benefits also to armed forces members who served in peacetime. 

Table 1.1 shows each country’s estimated mid-1990 population, veterans 

population, and number of disabled veterans. 

Table 1.1: Demographic Information on Countries Studied 

Estimated Number of 

population veterans 

Country (millions) (thousands) 

U.S. 251.4 26,885 

Veterans as a Number of Disabled veterans 

percent of disabled veterans as a percent of all 

population {thousands) veterans 

11 2,184 a 

Australia 17.1 632 4 160 25 

Canada 26.6 613 2 95 15 

Finland 5.0 262 5 41 15 

Germanv 63.2 a a a a 

United 

Kingdom 57.4 5,000 

a Germany did not provrde this data. 

9 192 4 

All the countries we studied except for Germany provide benefits to 

veterans disabled during war and peacetime. Germany provides benefits 

only to veterans and civilians who incurred disabilities during World Wars 

I and II, as well as their dependents and survivors. Benefits for disabilities 

incurred by service members after World War II are provided for under 

separate laws, which together serve Germany’s general population. 

Each of these countries also has a substantial economic base. Table 1.2 

shows each country’s 1990 Gross Domestic Product3 in total and per 

capita. 

3Gross Domestic Product is the total of gross expenditures on the final uses of the domestic supply of 

goods and services valued at purchasers’ values less the value of imports of goods and services. 

Page 17 GAO/HRD-94-6 Disabled Veterans Programs 
Chapter 1 

Introduction 

Table 1.2: 1990 Gross Domestic 

Product of Countries Studied Gross Domestic Product in U.S. Dollars at Purchasing 

Power Parity 

Country Millions Per capita 

U.S. $5,329,200 $21,198 

Australia 272,918 15,960 

Canada 507,575 19,119 

Finland 81,866 16,373 

Germany 1,157,065 18,298 

United Kingdom 975,345 16,992 

Appendixes I through VI describe each of the countries’ programs for 

disabled veterans, their survivors, and dependents during 1990. 

Appendixes VII and VIII provide information on the average benefits for 

veterans and survivors under the three major compensation programs for 

each country. Appendix IX describes the administration of veterans 

benefits programs in each country studied. The Department of Veterans 

Affairs provided written comments on a draft of this report. These 

comments appear in appendix X. 

Page 18 GAO/HRD-94-6 Disabled Veterans Programs I 
Chabter 2 

. 

Differences in Benefits for Disabled 

Veterans 

The United States provides a more extensive array of programs 

specifically for disabled veterans than the five other countries we studied. 

However, the foreign countries provide some of these benefits to veterans 

through programs that provide benefits to nonveterans as well. TabIe 2.1 

shows the areas where countries have programs specifically for disabled 

veterans. The United States has programs specifically for disabled 

veterans in each area. Germany’s benefits are limited to disabilities 

incurred in World Wars I and II by veterans and civilians who were victims 

of the wars. 

Table 2.1: Availability of Specific 

Programs for Disabled Veterans 

During 1990 Program area Australia 

Compensation for Yes 

service-connected 

disabilities 

Compensation based on Yes 

need 

United 

Canada Finland Germany Kingdom 

Yes Yes Yes Yes 

Yes Yes Yes No 

Military disability 

retirement 

Yes Yes No No Yes 

Health Yes Yes Yes Yes No 

Education No No No No No 

Job assistance 

Housing 

No 

Yes 

Yes 

Yes 

No 

Yes 

YC?S 

Yes 

No 

Yes 

Burial Yes Yes Yes Yes Yes 

Life insurance No Yes No No No 

Our analysis of types of benefits in each of the program areas follows. 

Al1 Countries The United States and all of the other countries in our study have a 

Compensate Veterans program that provides compensation for veterans with service-connected 

disabilities. The foreign countries differ from the United States in how 

for Service-Connected compensation is determined for these disabilities. We do not know, 

Disabilities but Use however, to what extent these differences would result in varying 

Different Payment 

assessments of a veteran’s degree of disability. 

Bases The United States compensates for the veteran’s reduction in earning 

capacity. This compensation is based on the average loss of earning 

capacity due to the service-connected disability. In addition, veterans may 

receive additional compensation if (1) they have dependents and are at 

least 30-percent disabled or (2) they have certain special disabilities, such 

as missing limbs. 

Page 19 GAOIHRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

Other countries’ service-connected compensation programs use different s 

payment bases from that of the U.S. program. Australia’s program 

I 

compensates the veteran on the basis of the physical or mental 

impairment and restriction of lifestyle. Canada’s program compensates the 

veteran on the basis of loss of body wholeness or loss of working capacity. 

Finland’s program compensates the veteran for the general impairment of 

i 

the ability to enjoy life. Gerrnany’s program is based on the veteran’s 

1 

I 

, 

(I) additional living expenses resulting from the disability, (2) impairment 

of body integrity, or (3) financial losses that the disability causes in 

activities outside his or her primary j0b.l In the United Kingdom, 

service-connected compensation is based on a comparison of the veteran’s 

condition with that of a normal healthy person of the same age and sex, 

with earning capacity not considered. 

. 

The other countries also differ from the United States in the percentage 

range of disabilities for which compensation is paid. Table 2.2 shows these 

differences based on each country’s own assessment of degree of 

dklbility. 

Disabilities Covered by the Ukted 

States and Other Countries 

Country Range of disabilities 

United States 0 to 100 percent 

Australia 10 to 100 percent 

Canada 1 to 100 percent 

Finland 10 to 100 percent 

Germany 30 to 100 percent 

United Kingdom 20 to 100 percent 

Increments / 

IO percent ; 

10 percent f 

1 percent ’ 

5 percent 

10 percent 1 

10 percent 

The higher the percentage of disability, the more compensation the 

veteran receives in each country. 

‘Financial losses that tie& the primary job are considered under compensation based on need. 

Compensation for service-connected disabilities and compensation based on need together form a 

single system for providing benefits to disabled persons. They are not separate programs, but are listed 

as separate program areas for purposes of comparison with programs of the United States. 1 

Page 20 GAOMRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

, 

U.S. Compensation 

Program for Needy 

Veterans Has 

Different Eligibility 

Reauirements Than 

Except for the United Kingdom, all of the countries studied have programs 

specifically for certain disabled veterans who are in financial need. The 

eligibility requirements for programs in the United States, however, differ 

from the eligibility requirements for the other countries’ programs in the 

areas of (1) whether the disability must be total and (2) income allowed 

before needs-based compensation is reduced. 

SinGlar Programs in 

Other Countries 

The United States and the four other countries that have needs-based, or 

income support, programs for veterans share a similar general 

objective-to provide cash benefits to needy veterans who served in the 

military during a period of war. The U.S. program provides income to 

needy veterans who served in time of war and who are totally and 

permanently disabled for reasons that are generally not traceable to 

military service. The Australian, Canadian, F’innish, and German programs 

for needy disabled war veterans, in contrast to the U.S. program, provide 1 

benefits for partial disabilities rather than require that the veteran be 

totally disabled. Each country except Finland and Germany provides these 

benefits whether or not the disability is related to military service. In 

Finland and Germany, the disability must be service-connected. 

The United States, Australia, Canada, and F’inland have established a 1 

maximum benefit amount available from their needs-based, or income 

support, programs. Except in Finland, this maximum amount varies by 

family size, and in all four countries the benefit amount is adjusted 

downward by income received by veterans in these countries; however, in ! 

Australia, Canada, and Finland deductions are made only if incomes 

exceed certain amounts. 

Table 2.3 illustrates how these differing features would operate for a ! 

married veteran with annual income of $5,000. Insufficient data were 

provided by Germany to ascertain to what extent income is allowed before 

needs-based compensation was reduced or by Finland to ascertain the 

amount of benefit reduction when income exceeds established limits. 

Page 21 GAOIHRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

Table 2.3: Comparison of U.S., 

Australian, and Canadian 

Compensation Reduction Features for 

Needs-Based Veterans Programs {in 

U.S. Dollars) 

Income 

Income allowed before 

compensation is reduced 

United States Australia 

$5,000 $5,000 

0 1,309 

Canada 

$5,000 

3,312 

Income exceeding cutoff 5,000 3.691 I ,688 

Reduction factor 

(in percent) 100 50 100 

Reduction amount $5,000 $1,846 $1,688 

Military Disability 

Retirement Programs 

Differ in Ways 

Compensation 

Amounts Are 

Determined . 

. 

. 

. 

The objectives of the military disability retirement programs in the United 

States, Australia, Canada, and the United Kingdom (the only countries in 

our study that have such programs) are similar-to compensate military 

personnel who incur a disability that prevents them from performing 

military duties. However, the other three countries differ from the United 

States in the way retirement compensation amounts are determined. 

U.S. military disability retirement payments are baaed on military pay 

combined with a factor of either degree of disability or length of service. 

Australian military disability retirement compensation is based on the 

veteran’s pay while in military service and the veteran’s capacity to 

perform civilian work. If retirement based on length of service yields a 

greater payment, the veteran may receive that instead. 

Canadian military disability retirement pay is baaed on length of service 

and military pay for the 6 years during which that pay was highest 

(2 percent of pay times years of service), but not on degree of disabiliw. 

Payments are financed by service members’ contributions while on 

active-duty and government matching contributions. 

United Kingdom military disability retirement compensation is determined 

differently for veterans in two groups: (1) those with service-connected 

disabilities 20 percent or greater, and (2) those with service-connected 

disabilities less than 20 percent or any nonservice-connected disabilities. 

Those with 20 percent or greater service-connected disabilities receive a 

military disability retirement annuity that increases with rank and degree 

of disability, but not length of service. Those in the second group receive 

an annuity pIus a lump sum that increases with length of service and is 

higher for officers than for nonofficers. Degree of disability does not enter 

into annuity compensation for the latter group. 

Page 22 GAO!I-IRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

U.S. Criteria for 

Receiving 

Compensation FFom 

Multiple Cash 

The United States differs from other countries in overall eligibility for the 

three major cash programs: (1) compensation for service-connected 

disabilities, (2) compensation based on need, and (3) military disability 

retirement income. Moreover, the United States differs from other 

countries in the extent to which compensation in one program is offset 

Programs Differ From 

against compensation in others. 

Other Countries A U.S. veteran cannot receive compensation under all three major cash 

programs. The veteran can receive compensation for (1) 

service-connected disabilities and military disability retirement at the 

same time or (2) military disability retirement and compensation based on 

need. The veteran cannot, however, simultaneously receive compensation 

based on a service-connected disability and need. This differs from 

Australia and Canada where a veteran can receive compensation for all 

three programs at the same time, and in Finland and Germany where a 

veteran can receive compensation based on service-connected disabilities 

and compensation based on need. There is no military disability retirement 

program in Finland or Germany. 

The United States also differs from other countries in provisions for 

offsets between compensation for service-connected disabilities and 

military disability retirement. U.S. law requires that military disability 

retirement pay be reduced dollar for dollar by any compensation received 

for service-connected disabilities. However, the three foreign countries 

with a military disability retirement program-Australia, Canada, and the 

United Kingdom-do not call for an offset of compensation between these 

programs. 

Offsets between military disability retirement and needs-based 

compensation are similar in the countries that have both programs-the 

United States, Australia, and Canada U.S. law requires that needs-based 

compensation be reduced dollar for dollar by any military disability 

retirement pay received. The other two countries also count military 

disability retirement payments as income for needs-based compensation, 

with a resulting offset. Canada also counts compensation for 

service-connected disabilities as income for needs-based compensation, 

while Australia does not. 

Page 23 GAO/IIRD-94-6 Disabled Veterans Programs ’ 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

Most Countries All countries provide heakh care to veterans through their general medical 

Provide Specific 

systems to some extent. However, the United States, Australia, Canada, 

and Finland have separate veterans health facilities, while the remaining 

Health Care Programs two countries provide veterans health care at facilities of their general 

for Disabled Veterans medical systems. In general, only veterans who receive compensation for 

service-connected disabilities or needs-based compensation are eligible 

for health care services in the five foreign countries studied. In the United 

States, veterans who receive compensation for service-connected 

disabilities are entitled to health care, and veterans who are needy also are 

eligible. However, veterans who do not have service-connected disabilities 

and who are not needy may receive health care, but they must share in the 

costs of such care. However, veterans in the United Kingdom receive 

health care only through the general medical system without funding from 

the agency which administers most veterans programs. 

The U.S. veterans health care system is composed of 171 hospit& 

providing inpatient and outpatient care, plus nursing homes, outpatient 

clinics, and domiciharies. In 1991, VA estimated that about 10 percent of 

US, veterans used the VA health care system. VA also pays for care on a 

contract basis in non-VA facilities under some circumstances. U.S. veterans 

may also obtain care under the general medical system, either at their own 

expense, through private insurance, or through other government 

programs, such as Medicare and Medicaid. 

Three of the other countries we studied also have health facilities 

specifically for veterans with service-connected disabilities or who are 

needy. In 1990, Australia operated nine hospitals, 11 artificial limb and 

brace centers, and one nursing home for veterans. Canada administers one 

hospital and two nursing homes for veterans, and pays for the health 

needs of disabled veterans who can receive services in their own homes 

under its Veterans Independence Program. Both Australia and Canada are 

in the process of turning over their veterans hospitals and other veterans 

care facilities to their states and provinces, respectively. For example, as 

of 1993, Australia operated six hospitals, nine artificial limb and brace 

centers, and one nursing home. Finland’s Disabled War Veterans 

Association operates three hospitals, three rehabilitation centers, and 

three nursing homes--largely at the expense of Finland’s 

government-with over 50 rehabilitation centers and health spas 

cooperating with the Association. 

S 

Health care also is available to veterans who have service-connected 

disabilities or who are needy through these countries’ general health care 

Page 24 GAO/HID-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

systems. Australia’s Department of Veterans Affairs pays for veterans 

health care at, for example, public hospitals and, on an outpatient basis, 

through an extensive network of local medical and dental care providers. 

Canadian disabled veterans also may receive health care at provincial 

hospitals and other health facilities at the Department of Veterans Affairs 

expense. In Finland, veterans with at least 30 percent service-connected 

disabilities can obtain medical care primarily at veterans’ agency expense 

through the general medical system. 

In Germany and the United Kingdom, there are no facilities specifically for 3 

veterans, and the general health system provides health care for disabled 

veterans. The cost of services for German veterans with service-connected 1 

disabilities is reimbursed by the social service agency that administers i 

veterans benefits. Reimbursements are made to either (1) health insurance 

companies or (2) local health insurance funds set up to cover the health 1 

needs of citizens who are not covered by the health insurance companies. 

In the United Kingdom, the National Health Service bears the cost of 

providing health care to all citizens, including veterans, out of general tax 

revenue. Veterans with service-connected disabilities receive priority for 

treatment for these disabilities over all but emergency cases at National 

Health Service hospitals. 

The United States Is Benefits for U.S. veterans may be awarded for such studies as those 

the Only Country That 

leading to a college degree or technical school certificate, apprenticeship 

or on-the-job training, and farm cooperative courses. Certain disabled 

Provides Educational veterans may also be eligible for educational benefits under the vocational 

Benefits to Veterans rehabilitation program as discussed in the next section. The veteran may 

not, however, receive benefits from both programs at the same time. 

Other countries’ educational programs are limited to children of disabled 

or deceased veterans. The United States also provides educational benefits 

to spouses and children of certain disabled or deceased veterans. (See 

ch. 3.) 

Page 25 GAOIHRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

The United States and The United States, Canada, and Germany operate programs that provide 

Two Other Countries 

veterans assistance to obtain and maintain employment. In the United 

States, veterans rated at 20-percent disabled or more who have an 

Have Job Assistance employment handicap are eligible for vocational rehabilitation services 

Programs Specifically provided by VA.~ Services provided include job counseling and assistance 

for Veterans 

and cash for trade, business, technical, or college training, on-the-job 

training or apprenticeship, farm training, or use of special rehabilitation 

facilities when necessary. 

The U.S. Department of Labor assists veterans in finding jobs through 

(1) the Disabled Veterans Outreach Program, (2) Local Veterans 

Employment Representatives, (3) the Job Training Partnership Act 

Program, and (4) the Homeless Veteran Reintegration Project. In general, 

these programs provide veterans with assistance, as needed, in counseling; 

testing; vocational selection and training; assistance with readjustment 

problems; job search; and placement; and in the case of the homeless 

veteran, with housing referral assistance. In addition, Labor works with 

the Department of Defense and VA to provide job and other assistance to 

separating military members and their spouses to help readjustment to 

civilian life. 

U.S. disabled veterans who were separated from active military duty under 

other than dishonorable conditions and who have a compensable 

service-connected disability also are eligible for preference when applying 

for and retaining jobs under the federal civil service. 

As in the United States, Canada provides cash for many of the same types 

of training opportunities funded by the United States, subsistence 

specifically for disabled veterans’ living expenses during job training, and 

additional amounts for dependents. These payments are in addition to 

those received under the disability compensation program. Veterans can 

be trained at vocational schools, colleges, or universities. 

Germany provides vocational rehabilitation in training and job assistance 

centers and provides cash to veterans who cannot perform full-time work 

because of their disabilities or who need subsistence support. Unlike US. 

and Canadian participants, however, German vocational rehabilitation 

program participants may not receive both cash associated with job 

training and compensation for a service-connected disability at the same 

time. 

2Effective October 1, 1993, in accordance with Public Law 102-568, veterans with a IO-percent 

disability rating are eligible if they have a serious employment handicap. 

Page 26 GAO/HRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits for Disabled 

Veterans 

Veterans Housing 

PrograJns vary in 

Scope 

The other countries in our study provide job assistance services to 

disabled government employees or the general disabled population, but 

not specifically for disabled veterans. However, beginning in 1991, Finland 

instituted a vocational rehabilitation program for disabled veterans. 

All of the countries in our study provide housing related benefits to 

veterans, although the types of benefits differ. The United States assists 

veterans in buying a home by providing loan guarantees. Additionally, the 

United States provides grants to veterans who are severely disabled by 

service-connected disabilities for adapting their homes to allow increased 

movement from place to place and offers up to $40,000 of mortgage life 

insurance (to cover these home adaptations), with premiums to be paid by 

the veteran. 

Some of the other countries provide home buying assistance, others 

provide funds for home adaptation, but none provide both. Australia and 

Germany provide home acquisition benefits for veterans, the former 

through mortgage interest subsidies and the latter by allowing lump-sum 

payments of future compensation for service-connected disabilities on the 

basis of the veteran’s age. Canada, Finland, and the United Kingdom pay 

for home adaptations for disabled veterans. Canada also provides veterans 

priority in renting housing originally designed for veterans but which is 

now open to the general population. Australia offers homeowner-financed 

home insurance. 

Some Countries 

Provide Burial 

Benefits Only for 

Veterans With 

Service-Connected 

Disabilities 

All countries provide burial benefits for veterans. The three European 

countries, however, limit these benefits to veterans whose death was the 

result of, or who had service-connected disabilities. 

The United States provides a burial grant and plot allowance for veterans 

who had received compensation based on either service-connected 

disabilities or need, although the amount of the grant is greater if the death 

was a result of a service-connected disability. The United States also 

provides all veterans burial flags and either grave markers or, until 

November 1990, a headstone allowance. Veterans are also eligible for 

burial in national cemeteries. 

Australia and Canada pay for burial of veterans who had received 

compensation for service-connected disabilities. Australia also provides 

burial benefits for veterans who (1) received needs-based compensation, 

Page 27 GAOEIRD-94-6 Disabled Veterans Programs 
Chapter 2 

Differences in Benefits Par Disabled 

Veterans 

(2) were indigent and whose deaths were war-caused, or (3) died while 

receiving medical treatment in health facilities approved by the agency 

that administers most veterans programs. The amount of benefits for those 

who received compensation for service-connected disabilities is larger 

than the amounts for veterans who received compensation based on need. 

Also, Australia provides commemorative plaques to mark the graves of 

veterans who died of war-related causes. Canada also may pay for burials 

and grave markers for veterans who had received needs-based 

compensation depending on the value of the estate. 

The European countries are more restrictive. Finland, Germany, and the 

United Kingdom limit payment of burial costs to veterans who had died of 

or had service-connected disabilities. 

The United States and Of the countries studied, only the United States and Canada have life 

Canada Have Life insurance programs for veterans. Canada also provides disability 

insurance to service persons, while the United States does not. Premiums 

Insurance Programs are paid in whole or in part by the veterans in both countries except in 

for Disabled Veteram Canada where premiums for life insurance are waived for totally disabled 

veterans under 65 years of age. 

The other countries in our study did not offer life insurance specifically for 

veterans. F’intand, however, sponsored life insurance for all 

employees-including military personnel--financed by premiums paid by 

the employer and employee. 

Page 28 GAO/HRD-94-6 Disabled Veterans Programs 
Chapter 3 

Differences in Benefits for Survivors of 

Disabled Veterans 

Table 3.1: Specific Programs Available 

to Survivors of Disabled Veterans 

During 1990 

The United States provides more types of benefits to veterans’ survivors 

than the other countries included in our study. Similar to programs for 

disabled veterans (see ch. 2), foreign counties provide some benefits to 

survivors of disabled veterans through programs that serve the general 

population. Areas where other countries have programs specifically for 

veterans’ survivors are shown in table 3.1. The United States has programs 

in each of these areas for survivors of disabled veterans, but neither the 

United States nor any other country offered survivor life insurance 

benefits. Survivor benefits in Germany are available only for survivors of 

veterans disabled in World Wars I or II. 

Program area Australia 

United 

Canada Finland Germanv Kingdom 

Compensation for 

service-connected 

disabilities 

Yes Yes Yes Yes Yes 

Compensation based on Yes 

need 

Military disability Yes 

retirement 

Yes 

Yes 

Yes 

NO 

Yes 

No 

No 

Yes 

Health 

Education 

Yes 

Yes 

No 

Yes 

No 

Yes 

Yes 

Yes 

No 

Yes 

Job assistance No No No No NO 

Housing 

Burial 

Yes 

Yes 

No 

No 

No 

No 

Yes 

Yes 

Yes 

NC-I 

All countries provide benefits to the survivors of veterans with 

service-connected disabilities, but significant differences exist between 

the United States and the other countries in rules for establishing 

entitlement to these benefits. Also, there are few similarities between the 

United States and other countries in the methods they use for computing 

survivor benefits. Our analysis of benefits in each program area follows. 

Eligibility Criteria 

Differ hong 

Countries Regarding 

Compensation for 

Survivors of Disabled 

Veterans 

All countries provide monthly cash benefits to survivors of veterans who 

died as a result of a service-connected disability-the Dependency and 

Indemnity Compensation (DE) program provides these benefits in the 

United States. When a veteran has a service-connected disability but dies 

of a nonservice-connected cause, eligibility criteria for survivors benefits 

vary; some countries have less restrictive criteria than the United States 

while others have more. 

Page 29 GAO/HRD-94-6 Disabled Veterans Programs 
Chapter 3 

Differences in Benefits for Survivors of 

Disabled Veterans 

In the United States, the DIG program also covers survivors of veterans 

who died from nonservice-connected causes, but only when the veteran 

had been rated totally disabled from a service-connected disability for at 

least 10 years immediately preceding death or continuously since 

separation from the military for a period of at least 5 years, 

In Canada, Finland, and Germany, however, disabled veterans who died 

from a nonservice-connected cause need not have been totally disabled for 

their survivors to qualify for compensation. In Canada, surviving spouses 

and dependent children are eligible for compensation when the veteran 

had a disability rating of at least 5 percent at the time of death. Full 

compensation is provided if the veteran had been rated at 48 percent or 

more disabled or the veteran’s death was from a service-connected 

dkability. 

Survivors of veterans in Finland are eligible for at least partial 

compensation if the veteran had a disability rating of 30 percent or more at 

the time of death and compensation at the highest amount if the veteran’s 

disability was rated 75 percent or more or the death was 

service-connected. 

In general, compensation for survivors of German disabled veterans is not 

dependent on the cause of death. Surviving spouses can receive 

compensation for the veteran’s lost earning capacity and compensation for 

nursing a veteran over many years. Partial compensation is provided when 

the disabled veteran’s death is not service-connected. Similar benefits 

(except nursing compensation) are available for orphans and surviving 

dependent parents. 

Australia and the United Kingdom, on the other hand, have more 

restrictive eligibility requirements for survivors benefits than the United 

States does. In the United Kingdom, only survivors of veterans whose 

deaths were service-connected qualify for compensation. Survivors of 

Australian veterans in two of Australia’s four rates of compensation for 

service-connected disabilities must demonstrate that the veteran’s death 

was service-connected in order to qualify for compensation. At the end of 

fiscal year 1990, survivors receiving compensation under these two rates 

represented about 87 percent of those receiving compensation. Survivors 

of veterans in the other two rates-one for extreme disability and the 

other for loss of income due to the disability--are eligible for 

compensation regardless of the cause of death. 

Page 30 GAOIHRD-94-6 Disabled Veterans Programs : 
Chapter 3 

Differences in Benefita for Survivors of 

Disabled Veterans 

Needs-Based 

Compensation Is 

Provided to Survivors 

by the United States 

and Four Other 

Countries 

In the United States and Canada, survivors of war veterans are eligible for 

needs-based compensation. However, needs-based compensation in 

Australia, Finland, and Germany is provided only to survivors of veterans 

who were receiving compensation for a service-connected disability. 

Income limits and compensation offsets similar to those for the veteran 

(see ch. 2) apply to survivors, and benefits are reduced by the income 

received. 

The United States provides needs-based compensation to surviving 

spouses based on flat rates that depend on the number of dependent 

children. Additional amounts are paid for spouses in need of aid and 

attendance or who are housebound. Orphan children also are eligible and 

are paid at a flat rate less any countable income they may receive. 

Other countries compute benefits much the same way, although Australia 

differs slightly in that it computes benefits for widows at one-half of the 

amount paid to the couple when the veteran was alive. Australia provides 

an additional amount for dependent children on the basis of age and 

student status. Canada develops the flat rate for surviving spouses on the 

basis of family size with higher amounts for blindness. Orphan children 

also receive a flat amount. Finland provides a flat annuity to a spouse, 

orphan, or parent who survives a veteran with at least a 30-percent 

disability, Lump sums are provided instead of an annuity for the surviving 

children or widow of a veteran with LO- to $%-percent disabilities. Germany 

provides surviving spouses, orphans, and dependent parents 

compensation based on need and also provides surviving spouses 

compensation for the estimated income the veteran would have earned 

had he or she lived. 

Survivors’ Military 

Disability Retirement 

Benefits Computed 

Differently Among the 

Countries 

Survivors of veterans in the United States and three other 

countries-Australia, Canada, and the United Kingdom-are eligible for 

military disability retirement compensation. To be eligible for these 

benefits, the veteran must have been receiving military disability 

retirement at the time of death. 

Survivors in each country receive cash benefits that are a percentage of 

the compensation received by the retiree. However, the percentage varies 

by country and within a country, depending on the survivor’s relationship 

to the deceased veteran. Details are shown in table 3.2. 

Page 31 GAOLHRD-94-6 Disabled Veterans Programs 
Chapter 3 

Differences in Benefits for Survivors of 

Disabled Veterans 

Table 3.2: Methods of Computing Military Disability Retirement Survivors Benefits in the Four Countries Studied That Have 

Such a Program 

Countrv Surviving Spouse Survivina Deoendent OrDhans 

U.S. Fifty-five percent of the amount paid to the 

veteran reduced to 35 percent when spouse 

becomes age 62. 

No additional benefit. Same amount as paid to spouse, 

divided evenly among the 

veteran’s orphans. 

Australia Five-eighths of the amount paid to the veteran. One-sixth of the amount paid One-eighth of the amount that 

to the spouse plus $312 per would have been paid to a 

year; indexed surviving spouse plus $702 per 

annually. year. 

Canada Fifty percent of the amount paid to the veteran One-fifth of the amount paid to Two-fifths of the amount paid to 

at time of death. the surviving spouse for each the surviving spouse for each 

child (up to four children). orphan (up to four children). 

United Kingdom If the veteran died from service-connected If the death was service- If the veteran’s death was 

disabilities, the spouse receives 90 percent of connected, 20 percent of the service-connected, 40 percent of 

the full career annuity for the veteran’s rank veteran’s career annuity the veteran’s career annuity 

reduced by third-party compensation for the reduced by amounts the reduced by amounts the children 

death and any other pension the spouse children receive from any other receive from any other sources. 

receives. source. 

If the veteran’s death was If death was not If the veteran’s death was not 

nonservice-connected, continuation of the service-connected, 50 percent service-connected, 50 percent of 

veteran’s annuity (or any nonservice-connected of the veteran’s annuity divided the veteran’s annuity divided 

annuity for which the veteran was eligible but equally among the children, among the veteran’s children. No 

did not receive) for 3 to 6 months. Thereafter a with no child receiving more child may receive more than 

spouse would receive 50 percent of the than one-quarter of the one-fourth of the veteran’s annuity. 

veteran’s annuity. veteran’s annuity. 

The United States and Although eligibility requirements differ, certain survivors and dependents 

Two Other Countries 

Offer Special Health 

Care Benefits to 

Survivors 

of disabled veterans in the United States and survivors in Australia and 

Germany are eligible for health benefits specifically because of their 

relationship to the deceased or disabled veteran. In the United States, four 

categories of survivors and dependents are eligible for VA health care. 

These are the spouse and/or children of (1) a service member who died in 

service, (2) a veteran who died as a result of a service-connected disability, 

(3) a veteran who had a total disability, permanent in nature, but whose 

death was not a result of the disability, and (4) a living veteran who has a 

total permanent service-connected disability. 

Health care for U.S. dependents and survivors normally is obtained from 

civilian sources; however, VA facilities may be used under certain 

conditions, for example, if the needed services and necessary resources 

are available. Dependents and survivors eligible for medical care under 

Page 32 GAO/HRD-94-6 Disabled Veterans Programs 
Chapter 3 

Differences in Benefits for Survivors of 

Disabled Veterans 

other government programs or from the military services are not eligible 

for VA medical care. 

Australia provides health care services to survivors of veterans, including 

children of (1) veterans who had received compensation for 

service-connected disabilities and (2) deceased veterans who had war 

service if the children are not being cared for by the remaining parent. 

Dependents of Vietnam veterans in need of urgent treatment can also 

receive health care benefits. Care is provided in Australia-operated 

facilities as well as through a network of medical and dental providers. 

Germany pays for health care to survivors who are receiving state 

assistance. Survivors can receive medical care if the veteran had at least a 

50-percent disability. However, German survivors must meet 

need-requirements. Survivors are not eligible if (1) their earnings exceed 

those that would entitle them to health insurance, (2) a health insurance 

carrier is obligated to pay for the health services, (3) the treatment is 

guaranteed under another law, or (4) the individual has private health 

insurance. Eligible survivors’ health care costs are paid for in the same 

way as are those for veterans. (See ch. 2.) 

U.S. Survivors’ 

Education Benefits 

Differ From Other 

The United States and each other country studied provided education 

benefits for survivors. The United States is the only country, however, that 

provides education benefits for surviving spouses. Other countries provide 

education benefits only to the children of disabled or deceased veterans. 

Countries’ in 

Beneficiaries Covered 

In the United States, spouses and children are eligible for educational 

benefits if the veteran died or was permanently and totally disabled as a 

and in Eligibility 

Requirements 

result of a disability caused by military service, or died from any cause 

while rated permanently and totalIy disabled from a service-connected 

di~abilily.~ Canada, F’inland, and Germany, unlike the United States, do not 

require that the veteran (1) die from service-connected causes or (2) have 

had a permanent and total disability. They generally require only that the 

recipient be the child of a disabled veteran who died, regardless of the 

cause of death. In Germany, however, the family must be needy; income 

and assets reduce the education benefits otherwise payable. Australia 

veterans’ deaths generally must be service-connected in order for their 

children to qualify for educational benefits. In the United Kingdom, the 

‘Educational benefits are also available to spouses and children of service persons missing in action, 

captured, or detained in the line of duty by a foreign government. 

Page 33 GAOIHRD-94-6 Disabled Veterans Programs 
Chapter 3 

Differences in Benefits for Survivors of 

Disabled Veterans 

maximum education benefit for children has been frozen since 1961 and 

the program was terminated in April 1993. 

The United States Is 

the Only Country 

Providing Special 

Assistance to 

Survivors Seeking 

Jobs 

While all countries provide job assistance to veterans, either in special 

programs or in programs serving a wider population (see ch. Z), the United 

States is the only country that provides special benefits to certnin 

survivors. Spouses and, in some cases, mothers of disabled US. veterans L 

are eligible for preference when applying for a federal civil service 1 

position. This preference is available when the veteran cannot perform I 

work in a federal civil service position, along the general lines of his or her j 

usual occupation, as a result of the veterans’ service-connected disability, 

Surviving spouses and mothers of U.S. veterans who died while on active : 

duty during time of war or served at designated times are also eligible. L I 

The United States and 

Three Other Countries 

Provide Survivors’ 

Housing Benefits 

Housing benefits for survivors of veterans are provided by the United / 

States, Australia, Germany, and the United Kingdom. The United States 1 

provides a loan guaranty while Australia provides low interest loans, 

Germany provides a lump-sum payout of service-connected compensation, 

and the United Kingdom provides rent assistance. e 

The United States, 

Australia, and 

Germany Are the Only 

Countries That 

Provide Survivors 

Burial Benefits 

All three countries pay for burial of certain dependents, although eligibility 

rules differ. In the United States, spouses and dependent children of living 

and deceased veterans--whether disabled or not-are eligible to be buried 

in a national cemetery. In Australia, widows and children of deceased 

veterans are eligible for a grant to help pay for funeral costs. However, in 

order for the dependents to be eligible for the grant, the Australian veteran 

generally must have been severely disabled from a service-connected 

disability or died from a war-related occurrence, and the dependent must 

be indigent. In Germany, funeral benefits are provided to (1) a widow who 

leaves a child who has rights to orphans’ compensation or (2) other 

survivors who have a right to compensation. 

Page 34 GAO/HEW-94-6 Disabled Veterans Programs 
Chapter 4 

Differences Among Countries in 

Relationship of Disability to Military Service 

A key factor in establishing eligibility for major disability benefits is 

whether the veteran’s disability is service-connected. Most foreign 

countries require that a disability be closely related to the performance of 

military duty to qualify for disability benefits; no such link is required in 

the United States. As a result of these differences in eligibility 

requirements, the United States provides benefits for some disabilities that 

other countries would not. 

United States Defines While all countries provide cash and other benefits to veterans with 

Service-Connection 

More Broadly Than 

Other Countries 

service-connected disabilities, the United States differs from other 

countries in what circumstances are considered service-connected. The 

definition of service-connection is important not only because it 

determines eligibility for cash compensation, but also because it can affect 

eligibility for, or amounts of, other types of benefits. In the United States, 

for example, only veterans with service-connected disabilities are eligible 

for vocational rehabilitation, and only veterans who have severe 

service-connected disabilities are eligible for home or automobile 

adaptation grants and certain education benefits for dependents. In 

addition, veterans with service-connected disabilities receive higher 

priority than other veterans for health care, and their survivors are entitled 

to greater burial benefits if the veteran’s death was service-connected. 

In the United States, a disease or injury resulting in disability is considered 

service-connected if it was incurred during a veteran’s military tour of duty 

or, if incurred before the veteran entered service, was aggravated by 

service. No causal connection is required between the circumstances of 

the disability and official military duty. A disability resulting from the 

veteran’s willful misconduct, however, is not considered 

service-connected under any circumstances. 

In July 1989, we reported1 on the US. practice of compensating veterans 

for conditions that had no relation to military service. We estimated that 

about 32 percent of the disabilities for which veterans were being 

compensated were probably neither caused nor aggravated by military 

service. These included several “ordinary diseases of life”-such as 

arteriosclerotic heart disease, diabetes, and chronic obstructive 

pulmonary disease-which had no relation to military service. We 

estimated that about $1.7 billion in compensation was paid for these types 

of disabling diseases in 1986. We suggested that the Congress reconsider 

‘VA Benefits: Law AluIows Compensation for Disabilities Unrelated to Military Service 

(GAOL-IRD49-60, July 341989). 

Page 35 GAOIHRD-94-6 Disabled Veterans Programs 
Chapter 4 

Differences Among Countries in 

Relationship of Disability to Military Service 

whether veterans should be compensated for conditions they incurred 

while in military service but which probably were neither caused nor 

aggravated by that service. No action has been taken on that 

recommendation. 

Except for Australia and some Canadian veterans, the service-connection 

definition differed from the United States’ in the other countries we 

studied. Often the definition requires a link between the disability and 

events occurring while actively performing military duty. For example, 

United Kingdom veterans must have a disability that is directly connected 

to military duties; it is not sufficient for the disability to simply have 

occurred during the period of service. In Germany, there must be a causal 

relationship between military service and the event that results in a 

disability. For Canadian veterans other than active duty war veterans, the 

injury or disease or its aggravation resulting in a disability must arise out 

of or be directly connected to military duties. In Finland, an injury need 

not result directly from performance of military duties, but must occur in a 

place set aside for performing those duties or an adjoining area The 

Finnish program also covered personnel for injuries incurred while on 

service-connected travel or travel to or from leave. Illnesses are covered if 

causally related to service. 

Definitions of service-connection in Australia and for active duty Canadian 

war veterans are similar to that of the United States in that disabilities 

incurred during a service member’s tour of duty, but not necessarily 

resulting from that service, are considered service-connected. 

Hypothetical Cases 

Show United States 

Would Compensate 

for More ‘Q-pes of 

Disabilities 

To further refine each country’s deftition of service-connection, we asked 

officials in each country to tell us whether they would compensate 

veterans for serviceconnected disabilities in 12 hypothetical cases. In 

general, the responses showed that other countries will compensate 

veterans for service-connected disabilities under many of the same 

circumstances that the United States will, but are less likely to do so 

where diseases were unrelated to military service, where the relationship 

of the disease to miLitaxy service could not be established, or for off-duty 

injuries. Table 4.1 describes the hypothetical cases and shows whether 

each country would provide compensation for each case. 

Page 36 GAOLHRD-94-6 Disabled Veterans Programs 
Chapter 4 

Differences Among Countries in 

Relationship of Disability to Military Service 

Table 4.1: How the United States and Five Other Countries Would Compensate Veterans for Disabilities in 12 Hypothetical 

Cases 

Condition 

Injury cases: 

Injury related to combat 

The veteran lost a leg in combat, resulting in loss of earning power and body 

wholeness. 

Countries that would compensate for case 

us AUS CAN8 FIN GER UK 

Y Y Y Y Y Y 

Injury occurred while performing peacetime military task Y Y Y Y P Y 

The veteran lost the use of an arm after falling out of a jeep during a peacetime 

training exercise. The injury was not due to any willful misconduct on the veteran’s 

part. 

Precondition aggravated by military service Y Y Y Y Y Y 

The veteran hurt his back while playing sports in high school. This was listed on 

his record when he entered the military, but the preinduction physical showed no 

evidence of the injury. The veteran’s military duties caused the back injury to 

worsen, resulting in the veteran’s discharge. 

Injury not related to military task; veteran was off duty Y NC N Nd N D 

The veteran was involved in an automobrle accident while in the military service, 

but off duty on vacation. The veteran lost the use of both legs as a result of the 

accident (which involved no willful misconduct) and, as a result, was discharged. 

injury occurred after separation N N N N N N 

The veteran, who had served during wartime and who is indigent, suffered no 

disability while serving in the military. Five years after separation from the military, 

he lost the use of both legs from back injuries resulting from falling off a ladder. 

Injury not related to military task; occurred during normal duty hours Y Y Y Y Y Y 

The veteran injured his back while playing basketball during normal duty hours. 

This recreation was condoned and encouraged by the military during certain 

periods of the work day, and did not involve willful misconduct by the veteran. As 

a result of the injury, the soldier was discharged. 

Disease cases: 

Disease related to military service Y Y Y Y Y Y 

While serving in combat in a tropical area, the veteran contracted malaria and 

consequently was discharged. 

Mental disability related to performing military tasks Y Y Y D Y Y 

The veteran suffered post-traumatic stress disorder while in the military after 

serving during hostilities. As a result of this mental condition, he was discharged 

and later showed impairment in obtaining and retaining employment. 

Relationship of disease to service could not be established N N N N N D 

The veteran had no apparent disability upon discharge from service, but suffered 

a hearing loss a few years later. No evidence was provided that the hearing loss 

occurred during or was aggravated by military service. 

Disease unrelated to military service; manifests itself during service Y D D Y D D 

The veteran developed intestinal symptoms, including severe diarrhea and weight 

loss, while in military service. He had many episodes of diarrhea and abdominal 

pain both during and after military service, and underwent intestinal surgery. The 

illness was diagnosed as Crohn’s disease. 

(continued) 

Page 37 GAO/HRD-94-6 Disabled Veterans Programs 
Chapter 4 

Dlfl’erences Among Countries in 

Relationship of Disability to Military Service 

Disease cases: 

Condition Countries that would compensate for case 

us AUS CANa FIN GER UK 

Disease unrelated to military service; manifests itself after service Y N N N D D 

The veteran was discharged in apparent good health, but multiple sclerosis was 

diagnosed 5 years later. Consulting physicians believed that military service had 

no influence on the veteran’s condition. Deterioration of leg muscles and balance 

was normal for the progress of the disease. 

Disease related to military service Y Y Y D D Y 

The veteran suffered anxiety disorder during basic training and received a 

medical discharge because of this condition. The veteran was impaired in work 

and social abilities. 

Legend 

Y = Yes 

N = No 

D = Depends on other circumstances involved 

Canadian responses are for peacetime veterans. War veterans’ disabilities are covered as in the 

United States. 

bAlthough officials told us Germany would compensate for this case, the actual compensation 

would be made under Germany’s program that serves the general population and not as special 

veterans benefits. 

CAustralia would most likely pay compensation if this event occurred during wartime. 

dUnder recent legislation, Finland would pay compensation in this case if the disability occurred 

on or after January 1, 1991. At the time of our field work, no veteran had received compensation 

under the new legislation, and under prior law, no compensation would have been paid, 

The United States and all countries would pay compensation for injuries 

that occurred in combat, peacetime training, or sports activities during 

duty hours; injuries aggravated by service; or diseases contracted in a 

combat zone. Neither the United States nor any of the other countries 

would pay compensation for an iqjury that occurred after separation and 

was unconnected to military duties. 

Page 38 GAOEfRD-94-6 Disabled Veterans Programs i 
Page 39 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area 

Compensation for 

service-connected disabilities 

Administering agency 

Department of Veterans Affairs 

Number of recipients in 

fiscal year 1990 

Fiscal year 1990 

expenditures 

Veterans 2.2 million $9.3 billion 

Survivors 320,000 2.3 billion 

Page 40 GAOIHRD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veteraus, Their Survivors, and Dependents 

During 1990 

Obiectives 

To compensate veterans for the average loss Disability must have occurred during or 

or reduction of earning capacity as a result of been aggravated by military service, but 

service-connected disabilities. need not have resulted from service. 

To provide compensation to the spouses and 

dependents of veterans who died as a result 

of mititary service or from service-connected 

disabilities (Dependency and Indemnity 

Compensation program). In some cases, the 

spouses of veterans who were totally and 

permanently disabled receive compensation, 

even if the veterans’ deaths are not from 

service-connected disabilities. 

Basis for eligibility Type or range of benefits 

Surviving spouses, dependent children or 

parents are eligible if the veteran (1) died 

from a disease or injury incurred or 

aggravated in line of duty or (2) was totally 

disabled from service-connected disability 

but did not die from that disability. In the 

latter instance, the veteran must have been 

totally disabled for at least 10 years 

immediately preceding death or 

continuously since separation from the 

military for a period of at least 5 years. 

Payment amounts are based on (1) degree 

of disability, (2) legal provisions relative to 

such conditions as loss of limbs, need for 

skilled care, or need for the aid and 

attendance of another person, and (3) 

number of dependents. Degree of disability 

is measured in increments of 10 ranging 

from 0 to 100 percent, based on a rating 

schedule. Payments ranged from $76 to 

$1,537 a month. Those with disabilities 

rated less than 10 percent receive no 

monthly compensation but are eligible for 

health care. Payments based on legal 

provisions relative to special conditions 

ranged from $67 to $4,392 a month. 

Veterans with disabilities rated 30 percent 

or higher also receive an additional 

allowance for dependents depending on 

degree of disability. 

Payments based on the veteran’s military 

pay grade ranged from $564 to $1,446 a 

month for a surviving spouse plus $65 a 

month for each child. Children establishing 

entitlement in their own right received 

smaller amounts than surviving spouses. 

Spouses received an additional $83 a 

month if permanently housebound or $169 

a month if residing in a nursing home or 

requiring the regular aid and attendance of 

another person. Surviving spouses who 

began receiving payments as of January 1, 

1993, received $750 a month with additions 

of (1) $165 a month if the veteran was rated 

totally and permanently disabled for at least 

8 years before death and been married for 

the same period and (2) $100 for each 

dependent child. Those who began 

receiving compensation before January 1, 

1993, are paid at the higher of the new or 

old rates. 

(continued) 

Page 41 GAO/IIICD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Number of recipients in Fiscal year 1990 

Program area Administering agency fiscal year 1990 expenditures I 

Compensation based on need Department of Veterans Affairs 

(called the Pension Program) 1 

Veterans 571,000 $2.6 billion 

Survivors 534,000 1.3 billion 

Military disability retirement 

Veterans 

Military services 

134,000 1.5 billion 

Survivors Not available. Not available. 

Page 42 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range of benefits 

To provide monthly income to needy Veterans are eligible if they are Generally, the maximum allowable payment 

permanently and totally disabled veterans permanently and totally disabled (that is, for a veteran without dependents ranged 

who served in time of war. unemployable as a result of disability from $564 to $902 a month. Veterans with 

reasonably certain to continue throughout dependents received higher amounts. 

the life of the disabled person), served Allowed payments were reduced by 

during wartime, are needy, and their income, dollar for dollar. 

disability generally is not 

service-connected. 

To provide monthly income to the needy Needy spouses and dependent children of Allowable payments for surviving spouses 

survivors of these veterans (Death Pension). war veterans are eligible. without dependents ranged from $378 to 

$605 a month, reduced by income. 

Additional amounts were available for 

spouses with dependents, in need of aid or 

attendance, or housebound. Children 

received up to $1,150 a year, depending 

on income. 

To enable military personnel who become The veteran’s disability must be permanent Veterans receive an annuity paid monthly. 

physically unfit to perform their military duties and not the result of willful neglect, Payments are based on military pay 

to retire from service. misconduct, or absence without authorized combined with either length of service or 

leave. All members with 20 years of degree of disability and are limited to 75 

service qualify. Those with less than 20 percent of active-duty base military pay. 

years can qualify if (I) the disability is 

rated at least 30 percent and (2) they 

have either 8 years of service, a disability 

resulting from active duty, or a disability 

occurring in line of duty during time of war, 

national emergency, or after 

September 14, 1978. 

To compensate the survivors of these If retirees elect survivors’ coverage (and Survivors receive an annuity paid monthly. 

veterans (Survivor Benefit Plan). pay the premiums), spouses are eligible Payments to surviving spouses initially are 

for benefits, as are dependent children 5.5 percent of the retiree’s benefit, reduced 

and orphans. to 35 percent after the spouse reaches age 

62. Orphans up to age 18, or age 22 if 

students. receive eaual shares of 

55 perce’nt of the retiree’s benefit. 

(continued) 

Page 43 GAOMRD-94-6 Disabled Veterans Programs 
i 

Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

Duke 1990 

Number of recipients in Fiscal year 1990 

Program area 

Health care 

Administering agency 

Department of Veterans Affairs 

fiscal year 1990 expenditures 

Veterans 1 .I million inpatients 

22.6 million outpatient visits 

$1 1 5 billion 

Survivors and dependents Average 240 inpatients a day 90.5 million 

and 302,000 outpatient visits 

during the year. 

, 

Education 

Veterans 

Department of Veterans Affairs 

Current program 

75,333 veterans 102,233 reservists 

26,479 servicepersons 

Prior programs 

130,750 veterans 

26,345 servicepersons 

Current program 

163 million 86 million 

20 million 

Prior programs 

202 million 

18 million 

Page 44 GAOhIRD-94-6 Disabled Veterans Programs I 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range of benefits 

To provide medical services to veterans. Veterans with service-connected 

disabilities are entitled to health care. 

Veterans with nonservice-connected 

disabilities are entitled to hospital care if 

their income is below a certain amount. 

Otherwise, veterans may receive hospital 

and nursing home care if space is 

available, but must pay an amount equal to 

a similar deductible under Medicare and a 

daily charge. 

Veterans may receive hospitalization, 

outpatient services, nursing home care, 

surgical and dental services, optometric 

and podiatric services, and prosthetic 

devices. Facilities include 172 VA hospitals 

(171 as of 1992), nursing homes, 

domiciliaries, and outpatient clinics. Also 

VA-contracted care at state home facilities 

and with private physicians. 

Eligibility for other types of care differs by 

type of care, on the basis of considerations 

such as service-connection, degree of 

disability, need, and length of time 

separated from military service. 

To provide medical services to dependents Survivors and dependents of certain Survivors and dependents can receive 

and survivors of certain disabled veterans. disabled veterans can receive health care. medical services and supplies from civilian 

These are the spouse or child of a veteran sources-generally not at VA facilities. 

(1) with a permanent total 

service-connected disability, (2) who had 

such a disability at the time of death or 

died from a service-connected disability, 

or (3) died in active service in the line of 

duty. 

To assist education and training of veterans. All veterans, including disabled veterans, Veterans and reservists entering active duty 

are eligible for education benefits. For after June 30,1985, can receive cash for 

service beginning through December 31, 36 months of full-time training. Training may 

1976, no contributions were required for a include college study, technical school 

veteran to receive educational benefits. study, apprenticeship, on-the-job training, 

For service beginning after December 31, or correspondence courses. If the veteran 

1976, to July 1, 1985, veterans must have served on active duty for 3 years (or 2 

(1) elected to participate in the program years active-duty plus 4 years in the 

and (2) made contributions toward their reserves or National Guard), the veteran 

education while in the military. Beginning receives $350” a month for up to 36 

July 1, 1985, veterans’ base pay was months. A veteran who enlists for less than 

reduced by $100 for each of the first 12 3 years would receive $275a a month. Some 

months of service unless the veteran, at prior programs are still applicable for 

the time of induction, elected not to certain veterans. 

participate in the education program. 

Page 45 

(continued) 

GAO/HRD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area 

Education (continued) 

Number of recipients in Fiscal year 1990 

Administering agency fiscal year 1990 expenditures 

Department of Veterans Affairs 1 

, I 

Survivors and Dependents 42,06 1 $106 million 

Job Assistance 

Vocational rehabilitation Department of Veterans Affairs 27,800 136 million 

Disabled Veterans Outreach 

Program 

Department of Labor 801,000 applicants’ 73.4 milljon 

Local Veterans Employment 

Representatives 

636,000 68.5 million / 

Job Training Partnership Act 4,728 (goal) 6.8 million 

Homeless Veterans 

Reintegration Program 

6,600 1 .8 million I 

( 

Transition Assistance Program Departments of Defense, Labor, Not available for 1990; 22,000 Not available for 1990; $4.2 

and Veterans Affairs in 1991. million in 1991. j 

Preference for civil service 

employment 

Office of Personnel Management Not available. Not available. 

I 

Page 46 GACWHRD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range of benefits 

To assist education and training of survivors Eligible are spouses and children of 

and dependents of certain veterans. certain deceased or disabled veterans or 

veterans missing in action, captured, or 

detained in line of duty by a foreign 

government. Surviving spouses’ eligibility 

extends for 10 years from the date that the 

VA determines the spouse is eligible. 

Children aged 18 to 26 are eligible. 

Dependents can receive up to $404 a 

month for up to 45 months of full-time 

education or training directed toward a 

definite educational or vocational goal 

approved by VA. The same training 

opportunities are available to dependents 

as are available to veterans except that 

correspondence courses are available to 

spouses only (not children). 

To assist veterans, and in some cases their 

spouses or mothers, in obtaining and 

maintaining employment. 

The veteran must have (1) a The veteran receives a subsistence 

service-connected disability rated 20 allowance of $84 to $333 a month. Veterans J 

percent or more and (2) an employment with dependents receive additional 

handicap. Effective October 1, 1993, amounts. VA pays for the cost of school 

veterans with a lo-percent disability are supplies, books, tuition, and other services 

1 

eligible if they have a serious employment and equipment. College; trade, business, 

handicap. or technical school; on-the-job or 

I 

apprentice training; and farm training may I 

be funded. 

Veterans Veterans receive job search training and / 

assistance from specialists who provide, $ 

among other things, vocational guidance or 

counseling services. I, 

Veterans Veterans who participate in VA’s vocational ” 

rehabilitation program and other veterans 

receive job search training and assistance. i 

Veterans States and others provide classroom 1 0 

Homeless veterans 

Separating servicepersons and their 

spouses. 

training, on-the-job training, career a 

assessment, testing, counseling, and job 

placement as well as job search and job 

, 

referral and placement, I 

Veterans may be referred to counseling, 

basic skills and job search training, 

housing, and other services. 

Military personnel and spouses receive job 

search training and assistance, counseling, I 

and assessment. 

Veterans or in some cases spouses and Veterans and certain spouses and mothers 

I 

mothers. receive preference for hiring in federal civil 

service employment. 

(continued) 

Page 47 GAOBIRD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area Administering agency 

Housing Department of Veterans Affairs 

Number of recipients in 

fiscal year 1990 

Fiscal year 1990 

expenditures 

All veterans 196,166 home loan 

guarantees 

$15.8 billion in home loan 

guarantees 

548 million expenditures 

in fiscal year 1990 

Certain disabled 

veterans 

4,900 policy holders 165 million coverage 

383 12.6 million 

i 

60 350,000 

Burial benefits Department of Veterans Affairs 8,000 10.2 million 

j 

E 

108,500 42.7 million 

Pa6e 49 GAO/H.RD-94-6 Disabled Veterans Programs 
Appendix I 

United Staterr Programs for Disabled 

Veterans, Their Survivora, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range ot benefits 

To assist veterans or surviving spouses to 

acquire, build, repair, or refinance a home. 

All veterans, including disabled veterans Eligible recipients receive loan guarantees 

and certain unmarried surviving spouses. on home mortgages. Home loans are 

guaranteed for 50 percent of amounts up to 

$45,000, the greater of $22,500 or 

40 percent of loans over $45,000 up to 

$144,000, and 25 percent of loans over 

L§§4,,~ with a maximum guarantee of 

I . 

To aid certain veterans in acquiring 

adaptations to a veteran’s residence or 

acquiring a residence already adapted. 

Disabled veterans qualify for home Mortgage life insurance is available to 

adaptation grants and mortgage life cover the costs of home adaptations up to 

insurance to cover those grants if they are $40,000 ($90,000 as of December 1, 1992). / 

permanently and totally disabled, such as Premiums are to be paid by the veteran, 

with loss of both lower limbs; blind and either directly or as a deduction from VA 1 

loss of one tower limb; or blind in both benefit payments. 

eyes or loss of use of both hands. 

Home adaptation grants are available: 

Up to one-half the cost up to $38,000 to 

build, buy or remodel, or pay indebtedness I 

on an acquired home with adaptations. 

1 

Up to $6,500 to adapt existing housing for 1 

veterans who are blind or have lost both 

hands. ! 

To assist with burial expenses for certain Veteran must die as a result of a Up to $1,500 burial allowance is paid for a 

6 i 

veterans. service-connected disability or have been veteran if the death was service-connected. i 

entitled to receive VA compensation or 

1 0 

To provide burial in a VA national cemetery pension payments at the time of death or $300 funerat and burial allowance is paid 

for veterans, spouses, and certain children. must have been hospitalized or domiciled for veterans who had received 1 

in a VA facility or other facility at VA compensation for service-connected 

expense. Generally, all veterans, spouses, disabilities or based on need, but whose 

and dependent children are eligible for death was not service-connected. 

burial in 1 of 113 national cemeteries. 

(continued) 

f 

Page 49 GAO/HELD-94-6 Disabled Veterans Programs 
Appendix I 

United States Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area 

Burial (continued) 

Administering agency 

Number of recipients in 

fiscal year 1990 

316,400 

Fiscal year 1990 

expenditures 

$48.9 million 

347,000 

332.600 

57.000 

10.5 miltion 

23.9 million 

4.8 million 

29,000 3.2 million 

Life insurance 

All veterans 

Department of Veterans Affairs 

Total of 6.5 million policies in 211 billion in face value. 

force for veterans and 

servicepersons. 

Disabled veterans 162,000 policies in force. 1.4 billion in face value. 

Page 50 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix I 

United Statea Progrmna for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range of benefits 

$150 plot or interment allowance is paid for 

veterans receiving the $300 allowance 

described above. 

Generally, burial flags are provided to 

drape the casket of a veteran. 

Headstones/gravemarkers are provided for 

all veterans or family members buried in 

national cemeteries or upon request for 

veterans buried in other cemeteries. 

Headstone allowances are provided for 

veterans not buried in national cemeteries 

(this provision was terminated in November 

1990). 

Burials in national cemeteries are provided 

for veterans and their spouses and 

dependent children. 

To provide life insurance coverage to armed All members can elect coverage at their Up to $lOO,OOOc group term life insurance 

forces members. This coverage may be own expense and conversion after was available for service members, and 

converted to 5-year nonrenewable term life discharge. nonrenewable 5-year term insurance was 

insurance upon separation from military available for veterans. 

service. 

Supplementary coverage is available to 

disabled veterans. 

Mortgage life insurance is available to 

severely disabled veterans (see p, 49). 

Veterans under age 65 with Up to $lO,OOOd regular supplementary 

service-connected disabilities pay life coverage is available. 

insurance premiums at standard rates for 

supplementary coverage, 

BAfter April 1 I 1993. veterans who enlist for 3 years or more receive $400 a month; those who 

enlist for less than 3 years receive $325 a month. 

bProgram year 1990 (July 1, 1989, to June 30, 1990). 

CAs of December 1, 1992, veterans could purchase up to $200,000 of renewable 5year term 

insurance. Service members could purchase the same amount of group term insurance. 

d$20.000 of additional coverage as of December 1, 1992. provided the veteran is under age 65 

and applies for it within a certain time. 

Page 61 GAOKiRD-94-6 Disabled Veterans Programs 
AtmendixII 

Australian Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area Administering agency 

Number of recipients in 

fiscal year 1990 

Fiscal year 1990 

expenditures* 

Compensation for 

service-connected disabilities 

Veterans 

Repatriation Commission and 

Department of Veterans’ Affairs 

16‘1,500 $449 million 

Survivors 193,000 428 million P 

I 

Compensation based on need Repatriation Commission through 

the Department of Veterans’ Affairs 

Veterans 223,000 $926 million 

Page 62 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix II 

AustcaIian Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate veterans for injury or disease A veteran’s disability must occur during or There are four rates of disability 

incurred in war or defense service, on the be aggravated by service. compensation, as follows: 

basis of the degree to which the disability 

causes a physical or mental impairment and general rate-Disabilities 

restricts the veteran’s lifestyle. measured in percentage terms 

from 10 to 100 in lo-percent 

increments 

intermediate rate-Veteran 

suffers a loss of income that 

would not have occured except 

for the disability 

i 

special rate-Same criteria as 

for the intermediate rate, but 

greater disability 

extreme disablement-Veteran 

aged 65 or over with a degree 

of incapacity greater than that 

of veterans at the 100 percent 

general rate. 

Payments ranged from $14 to $141 

biweekly on the general rate, and as high 

as $373 biweekly on the special rate. 

To compensate survivors of these veterans. Widows or widowers of veterans on the Surviving spouses receive $220 biweekly. 

special or extreme disablement rate are Orphans receive lower amounts, at one rate 

; 

automatically eligible. If the veteran was on for an orphan who has lost one parent and 

the general or intermediate rate, the death another rate for orphans who have lost both 

must be service-related. parents. I 

I 

To provide income support for needy To be eligible, veterans must have served Payments are a maximum of $203 biweekly 

veterans for premature aging and loss of in war and be aged 60 (male); 55 (female) for a single veteran and $339 biweekly for a 

earning power and to allow these veterans a or permanently incapacitated for work. married veteran. Income and assets can 

standard of living at least equal to that They must be needy. Wives and carers reduce compensation payments. Annual 

provided by other government income (relatives who provide constant care to a income exceeding $1,496 for a single 

support programs. veteran in the home) also may receive veteran or $1,309 for a married veteran 

compensation. reduces the maximum compensation. 

Compensation is reduced $1 for $2 of 

income. 

(continued) 

Page 53 GAOLHRD-94-6 Disabled Veterans Programs 
Appendix II 

Atwtrallau Progrm for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area 

Compensation based on need 

(continued) 

Administering agency 

Number of recipients in 

fiscal year 1990 

Fiscal year 1990 

expenditure@ 

Survivors and dependents 163,000 wives and widows $615 million 

j 

Military disability retirement 

Veterans 

Retirement Benefits Office 

# 

3,066 30 million 

Survivors Not available. Not available. 

Health care 

Veterans 

Repatriation Commission 

Department of Veterans’ Affairs 

67,000 Repatriation 

Commission hospital 

admissions, 

1.3 million 

domiciliary 

nursing services, 

1 million nursing 

home services, 

700,000 services 

in hospitals, and 

nearly 6 miltion 

consultations and services 

from local medical officers and 

medical and dental specialists. 

726.1 million for veterans, 

survivors, and dependents 

Page 14 GAOKilW-94-6 Disabled Veterans Programs 
Appendix II 

Australian Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate wives and other persons who Spouses and surviving spouses are Surviving spouses receive half of the 

cared for these veterans. eligible. annuity the couple received when the 

veteran was alive. Payments to spouses are 

included in the benefit amounts above. 

Additional amounts are paid for dependent 

children of veterans. 

4 

To compensate military personnel who are 

medically discharged. 

The veterans must be unable to perform Payment amounts depend on degree of 

their military duties and thus have to retire disability to perform civilian work and 

early. Servicepersons on full-time military pay before retirement. 

continuous duty for not less than 1 year Class A: 60 percent or more 

contribute 5.5 percent of their pay toward disabled-76.5 percent of military pay. 

retirement. Class B: 30 percent to less than 60 percent 

disabled-38.25 percent of military pay. 

Class C: less than 30 percent 

disabled-refund of contributions plus lump 

sum of half contributions if the veteran has 

not served the minimum time (15 years) for 

regular retirement. If regular retirement 

based on length of service would be 

greater, the veteran in Class B or C 

receives it. Class A and B compensation is 

indexed. 

To compensate survivors of these retirees. Spouses, dependent children, and Surviving spouses receive five-eighths of 

orphans of military disability retirees are veteran’s annuity, with lesser amounts for 

eligible. dependent children and orphans. 

! 

To provide quality cost- effective health care The following veterans, among others, are Australia provides inpatient and/or 

services to veterans. eligible: outpatient services at 21 facilities operated 

by the Repatriation Commission, including : 

Veterans with war-caused injury or disease. six general hospitals, three auxiliary 

Veterans who receive compensation at or hospitals, 11 artificial limb and appliance 

above the 100 percent general rate. centers, and one nursing home. 

Veterans who receive compensation at or 

above 50 percent of the general rate and Also, Australia pays for inpatient and/or 

receiving compensation on the basis of outpatient services, including (1) treatment 

need. at public or private hospitals; (2) most 

Veterans who are receiving compensation medical and dental services; (3) 

on the basis of need and who are blind or optometrical treatment; (4) dental i 

meet an income or asset test. prosthetics; (5) domiciliary nursing, I 

Vietnam veterans in need of urgent rehabilitation appliances, and convalesent 

treatment. care; and (6) treatment at nursing homes. 

(continued) 

Page 55 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix II 

Australian Programs for Disabled Veterana, 

Their Survivors, and Dependents During 

1990 

Program area 

Health care (continued) 

Administering agency 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expenditures* 

Survivors and dependents: Included above. Included above. 

r 

Education Repatriation Commission through 

State Veterans Children Education 

Boards 

Veterans 

Survivors 2,187 $3.1 million 

Job assistanceb No program 

Housing 

Veterans 

Department of Veterans’ Affairs 

Interest Subsidy: 129,600 

home loans as of June 30, 

1990; 9,000 new homes in 

1990. 

1 19 million 

in subsidies 

during 1990. 

Home Insurance: 173,600 

homes insured as of June 30, 

1990. 

Not available for 1990; 274 in 

1989. 

9.7 million 

during 1990. 

in claims 

Not available for 1990; 

112,000 in 1989. 

Survivors 

Page 66 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix II 

Austmlian Programs for Dieabled Veterans, 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To provide quality cost-effective health care Eligible survivors include war or defense Surviviors and dependents may receive 

services to certain dependents. widows and their dependent children, the health care in Repatriation Commission, 

child of a deceased veteran who had war federal, or state hospitals, or other facilities 

service if the child is not being cared for where the Commission has arranged care. 

by the remaining parent, and dependents 

of Vietnam veterans in need of urgent 

treatment. 

Not applicable. Not elinible. 

To provide support services and financial A veteran’s death or incapacity must be 

assistance to children of deceased, blind, or service-connected. Children only can 

totally and permanently incapacitated qualify for educational assistance, and 

veterans, veterans receiving an extreme they must be under 25 years of age when 

disablement adjustment, or prisoners of war. applying for assistance. Benefits extend 

only to the first college degree or technical 

certificate. There is no time limit for 

receiving benefits other than the age 

criteria. 

Cash assistance is provided for grades 1 

through 6, secondary, or college-level 

study or technical training. Elementary 

education assistance is $72 a year. 1 

Students under age 16 receive an 

/ 

allowance of $14 to $151 every 2 weeks. e 

Those aged 18 or over receive $99 to $180 

every 2 weeks. The assistance can cover 

fees, tuition, textbooks, and living 

expenses. Assistance is reduced by any 1 

personal income over $3,595 a year for 

students aged 16 years or more. 

To provide assistance to veterans in buying, Veterans are eligible if they served in Veterans may receive a home loan interest 

building, or renovating a home in which they World Wars I or II, or subsequent wariike subsidy of all interest greater than 

will live. activities, or served at least 3 years after 6.85 percent on the first $17,975. Home 

December 7,1972, extended to 6 years in insurance covers up to $143,800 of home 

1978. value with premiums paid by the 

homeowner. 

c 

To provide such assistance to certain 

survivors, 

Widows or widowers of these veterans are Eligible survivors may receive housing 

eligible. loans at 3.75percent interest to help retain 

or maintain an existing home, reduce 

monthly loan installments, or pay for repairs. 

(continued) 

Page 57 &iO/HRD-94-6 Disabled VeCerans Programs 
Appendix II 

Australian Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area 

Burial benefits 

Administering agency 

Repatriation Commission 

Department of Veterans’ Affairs 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expenditures’ 

I 

9,000 recipients (does not $3.8 million for all veterans ’ 

include an unknown number of and dependents. 

veterans who had received 

compensatjon on the basis of * 

need or their survivors). 

Page 58 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix II 

AustraUan Programs for Dhnbled Vetemu, 

Their Snrvlvors, and Dependenti During 

1990 

Objectives 

To assist in paying funeral expenses for 

certain veterans or dependents. 

Basis for eligibility Type or range of benefits i 

The following are eligible for burial benefits: I 

Veterans or dependents of deceased Up to $395 is paid for funeral expenses 

veterans who had received compensation plus reasonable costs for transporting the 

for service-connected disabilities at the body from place of death to the veteran’s 

special rate or as amputees; veterans ordinary residence for all recipients except 

whose deaths were war-caused and who veterans who had received compensation 

died indigent or died in an institution to on the basis of need or their survivors. 

which they were admitted with Repatriation Veterans whose death was attributed to war 

Commission approval; and indigent service receive a commemorative plaque 

widows and children of deceased veterans marking their graves. 

whose deaths were war-caused and who 

had severe disabilities. 

%xpenditures and benefit amounts are expressed in U.S. dollars. Other countries’ currencies are 

converted to U.S. dollars using 1990 benchmark purchasing power parities. 

bAustralia operates a program to return injured federal government workers-including disabled 

veterans-to the same employer with the same duties, and if this is not possible, to find the 

employee work with an employer that is suitable to the employee, given the restriction on the 

employee due to the disability. 

Page 59 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix III 

Canadian Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area 

Compensation for 

service-connected disabilities 

Veterans 

Administering agency 

Department of Veterans Affairs 

Canadian Pension Commission 

(adjudication) 

Bureau of Pension Advocates 

(veterans’ legal counseling) 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expenditure& 

95,000 $479.5 million 

Survivors 50,000 205.6 million P 

I 

Compensation based on need Department of Veterans Affairs 

Veterans 132 million 

Page 60 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix III 

Canadian Programs for Disabled Veterans, 

Their Survivora, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate veterans for disabilities The disability must be service-connected. Payment is based on degree of disability in 

arising from military service. Disability must For war veterans, this means that the increments of 1 percent from 1 to 

cause loss of body wholeness or working disability must have occurred during, but 100 percent. Payment for disabilities rated 

capacity, as measured by a medical not necessarily as a result of, the veteran’s between 5 and 100 percent is based on 1 

examination in accordance with a table of military duties. For other veterans, this of 20 payment categories determined by 

disabilities. means that the disability must arise out of dividing the percentage of disability by five. 

or be directly connected to military duty. Lump sums are given instead of monthly 

payments for disabilities of 1 to 4 percent. 

Payments ranged from $54 to $1,076 a 

month for a single veteran, $67 to $1,345 

for a married veteran with no children. 

These amounts are increased for children. 

Lump sums ranged from $347 to $1,389. 

TO compensate survivors of these veterans. Compensation is available to surviving If the veteran’s disability was at least 

spouses, children, and dependent parents 48 percent or the veteran’s death was 

of veterans who received compensation for service-connected, a surviving spouse 

service-connected disabilities rated at received 75 percent of what would be paid 

least 5 percent. to a loo-percent disabled single 

veteran-a flat $807 a month. 

If the veteran’s disability was less than 

48 percent and the death was 

nonservice-connected, a surviving spouse 

received 50 percent of what the veteran 

was receiving before death (ranged from 

$34 to $302 a month, depending on the 

veteran’s degree of disability before death). 

Orphans and dependent parents received 

smaller amounts. 

To compensate needy war veterans who are The veteran must have served during war, Payments are up to $620 a month for a 

either aged or disabled. be aged or incapacitated, and be needy. single nonblind veteran, up to $967 a 

To be aged, males must be 60 years old month for a married blind veteran, A 

(females, 55). Veterans under these ages married veteran can earn up to $3,205 a 

may qualify if they are needy and unable to year and receive up to $107 in interest 

work because of the disability or the need income without reduction of benefits. 

to care for a child. Compensation is subject to a means test 

(comoensation is reduced bv income). 

(continued) 

c 

E 

Page 61 GAOLHRD-94-6 Disabled Veterans Programs 
Appendix III 

CknadLan Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area 

Compensation based on need 

(continued) 

Administering agency 

Number of recipients In 

fiscal year 1990 

Fiscal year 1990 

expenditures* 

Survivors 24,000 $ 56.6 million 

Military disability retirement 

Veterans 

Department of National Defense ! P 

I 

5,500b 28.3 millionb 

Survivors 12.oooc 47.7 millionC 

Health care Department of Veterans Affairs 224,000 322 million 

Education Department of Veterans Affairs 

Veterans 

r 

Page 62 GAO/HRD-94-6 Dieabled Veterans Program 
Appendix III 

Canadian Programs for Disabled Veterans, 

Their Swvivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate survivors of these veterans. Surviving spouses must satisfy the same A surviving spouse received up to $620 a 

age and need criteria as a veteran of the month. Orphans received smaller amounts. 

same sex, except as noted below. To i 

receive benefits at an earlier age, a 

surviving spouse must (I) be 

incapacitated or (2) care for a dependent 1 

child. Spouses receive an additional 

amount for dependents. Orphans also may E 

receive benefits. 

To provide income support for members of Veterans must have contributed to the The monthly annuity amount depends on 

the armed forces who retire from mititary duty retirement plan while a member of the length of service and military pay over the 6 

because of disabilities incurred while in armed forces and retired from military duty years when that pay was highest (2 percent 

military service. because of disabilities incurred while on of pay times years of service), but not on 

military duty. degree of disability. Members released with 

less than 10 years of service receive a lump 

sum rather than an annuity. 

To provide income support for survivors of 

these veterans, 

Spouse, dependent child, or orphan of Surviving spouses received a monthly 

veteran who received or was eligible to annuity equal to 50 percent of the monthly 

receive military disability retirement at the annuity amount paid to veteran. Lesser 

time of death. amounts were granted to children and 

OrDhans. 

To pay for the health care of certain veterans, Health care is available to veterans 

and in some instances to provide that care. receiving benefits for service-connected 

disabilities. Other veterans may receive 

care that is not covered under the health 

plan of the province if they are receiving 

needs-based compensation or are 

participating in the Veterans 

Independence Program, a home health 

care program. Survivors and dependents 

are not eligible for special veterans health 

services. 

The Department of Veterans Affairs 

operated one hospital and two nursing 

homes. Care also was provided by the 

general health system, without Department 

of Veterans Affairs reimbursement except 

for care for veterans receiving treatment for 

service-connected disabilities. Home health 

care also was available. Health care 

includes outpatient care, nursing, 

ambulance services, drugs, dental 

services, prosthetics, hospital care, and 

long-term care. 

Not applicable. Not eligible. 

(continued) 

Page 63 GAOmRD-94-6 Disabled Veterans Programs 
Appendix III 

Canadian Progrants for Disabled Veterans, 

Their Snrvivors, and Dependents During 

1990 

Program area 

Education (continued) 

Survivors 

Administering agency 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expenditures* 

340 $494,000 

Job assistance Department of Veterans Affairs 38 162,000 

Housing 

I 

Department of Veterans Affairs Not available. Not available. 

Canada Mortgage and Housing 

Corporation 

About 1 ,100 veterans and/or Not available. 

their families. 

Burial benefits Canadian Pension Commission 1,100 burials 2.0 million 

Department of Veterans Affairs 2,230 burials and funerals 3.7 mjllion 

1,732 gravemarkers 

r 

Last Post Fund 3,415 burials 

2,000 gravemarkers 

5.9 million 

Page 64 GAO/IIR.D-94-6 Disabled Veterans Programs 
Appendix III 

Canadian Programa for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Obiectives Basis for eligibility Type or range of benefits 

To provide cash assistance for the higher 

education of the children of certain 

deceased veterans. 

Children of deceased veterans with at Up to $1,145 a year for tuition and fees is 

least a 48-percent disability rating are available for college, university, or other 

eligible. Children must be less than 30 higher education studies. Also available is 

years old and must begin a course of a living allowance of $96 a month for 

instruction at a university, college, or other students under age 21 and $375 a month 

school of higher education within 15 for students aged 21 to 30. Cash 

months of high school graduation. assistance is limited to the lesser of 4 

academic years or 36 school months. 

To finance retraining of veterans receiving 

compensation for service-connected 

disabilities. 

To adapt homes for certain disabled 

veterans (component of the Veterans 

Independence Program (See p. 63.) 

Veterans who receive compensation for Cash is provided for vocational, community 

service-connected disabilities are eligible. college, or university training, and living 

expenses. Veterans with no dependents 

receive an average of $443 a month in 

living expenses plus $610 a year for tuition, 

books, and related fees. Additional 

amounts are received for dependents. 

To qualify for home adaptations, the Home adaptation assistance 

veteran must participate in the Veterans 

independence Program. 

To give priority to veterans or families of All veterans qualify for rental housing at 12 Priority for moderately priced rental housing 

veterans in obtaining certain rental housing. veterans housing projects. These are also 

open to the general population, but 

veterans and their families are given 

priority. 

To pay all or part of the costs of the last 

illness and burial of certain veterans. 

The veteran must have suffered a 

service-connected disability. 

The Commission, at its discretion, may 

direct that unpaid veterans benefits be 

used to pay for all or part of the veteran’s 

burial costs. 

To pay burial and funeral expenses for 

certain veterans, and to provide 

gravemarkers. 

The veteran must have received benefits Up to $2,243 is provided for each funeral 

for a service-connected disability or have plus burial costs, which are not subject to a 

died while receiving medical treatment for maximum. 

a service-connected disability (when the 

Canadian Pension Commission rules that 

the death is related to military service). In 

either case, the estate must be small. 

Veterans who received needs-based 

compensation also may qualify in some 

circumstances. 

To provide funerals, burials, and 

gravemarkers for veterans who are without 

means to provide these services. 

The veteran must have died destitute. Pay an amount toward the services of a 

funeral director, the cost of a cemetery plot, 

opening and closing grave, maintenance, 

and a aravemarker. 

(continued) 

Page 65 GAO/I-IltD-94-6 DImbled Veterans Programs 
Appendix III 

Canadian Programe for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area 

Life insurance 

Administering agency 

Service Insurance Board of 

Trustees 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expenditures’ 

4,037 veterans $284 million (face value) 

2,760 spouses 66 million 

Disability insurance Service Insurance Board of 

Trustees 

28.5 claimants 

L 

2.83 million 

Page 66 GAO/HRD-94-6 Disabled Veterans Programs I 
Appendis III 

Canadian Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To offer term life insurance for active-duty Life insurance is available to active-duty Insurance amounts are available up to 50 

military personnel and veterans (lump sum or personnel or veterans, or their spouses. times basic pay to a maximum of $228,900. 

an option for a long-term annuity} The veteran can convert insurance to 

postrelease coverage for self and/or 

spouse without evidence of insurability, 

within 60 days after the member’s release 

from the military. Coverage ends following 

the veteran’s 65th birthday. The veteran 

may accept a paid-up policy at 10 percent 

of the face value of the term policy or 

convert to individual coverage. Premiums 

are paid by the insured, but are waived for 

totally disabled veterans under 65 years of 

aae. 

To offer disability insurance for active-duty Available for active-duty personnel Veterans receive a monthly annuity of 

personnel released from military service because 75 percent of the salary the disabled / 

they are totally disabled. veteran would have earned, assuming they 

remained in service at the same rank as 

i 

when they became disabled. The annuity is 

reduced by any military disability 

retirement, pension, or part of any earned t 

income. Premiums are 0.4 percent of basic 

monthly military pay-O.3 percent paid by 

the government and 0.1 percent by the 

insured. 

*Expenditures and benefit amounts are expressed in U.S. dollars. Other countries’ currencies are 

converted to U.S. dollars using 1990 benchmark purchasing power parities. 

bAs of December 31, 1987; more recent data are not available. 

CAs of December 31, 1987, and includes survivors of both disabled and nondisabled veterans. 

Page 67 GAOMRD-94-6 Disabled Veterans Programs 
Appendix IV 

Finnish Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Program area 

Compensation for 

service-connected disabilities 

Administering agency 

State Accident Office 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expenditures* 

Veterans 43.500 $1 26 million 

Survivors 21,500 73 million (includes 

educational benefits 

discussed below) 

Compensation based on need State Accident Office 

Veterans 9,500 to 10,000 estimated 28.1 million ! 

Survivors 2,300 arrUties 

500 lump sums 

5.1 million 

2.1 million 

Military disability 

retirement 

No program 

Page 68 GAOMRD-94-6 Disabled Veterans Programs 
Appendix IV 

Finnish Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

j 

Objectives Basis for eligibility Type or range of benefits 

To compensate veterans for the effects of 

disabilities on their ability to work. 

Disabilities are covered only if 

service-connected. Injuries must occur at 

a place designated for carrying out duties, 

an adjoining area, or during 

service-connected travel or travel to or 

from leave. Illnesses must be causally 

related to service. 

To compensate survivors of these veterans. Survivor benefits are available to the 

widows, children, orphans, and other 

relatives of the veteran, 

Payments to veterans ranged from $45 to 

$915 a month, depending on degree of 

disability, age, and family size. Degree of 

disability is expressed as a percentage 

from IO to 100 percent in 5percent 

increments. The amount of compensation is t 

increased by 30 percent for the first 

dependent and 20 percent for each 

additional dependent up to four family / 

members. The compensation amount also 

is increased for veterans aged 56 to 65. 

The amount of compensatjon depends on 

/ 

the veteran’s degree of disability (must be I 

at least 30 percent), whether the death is 

service-connected or 

nonservice-connected, and relationship to 

the veteran. Payments ranged from $64 a 

(I 

month for a child of a veteran with a 30 to 

45 percent disability to $376 a month for a 1 

widow of a veteran with more than a 

75-percent disability. 

To provide income support for needy Veterans must have at least a 20-percent $36 to $428 a month 

veterans with service-connected disabilities. service-connected disability and low 

income. 

j 

To provide income support for the surviving Survivors of veterans who had at least a Survivors of veterans with at least a 

spouse, orphans, and parents of these lo-percent service-connected disability 30-percent disability received $27 to $330 

veterans. and who have low income. a month. If the disability was 10 to 25 

percent, spouses received a lump sum of 

$4,107 ($4,518 in big towns) and children, 

$2,310 ($2,541 in big towns). 

(continued) 

Page 69 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix IV 

Finnkh Programs for Disabled Veterans, 

Their Survivora, and Dependents During 

1990 

Program area Administering agency 

Health care State Accident Office 

Number of recipients in 

fiscal year 1990 

35,000 veterans received 

Fiscal year 1990 

expendituresa 

$82 million 

reimbursement for medical 

costs other than rehabilitation 

services. 

37,000 veterans received 

medical rehabilitation 

services. 

Education 

Veterans 

Children 

State Accident Office 

300 Included in compensation 

for service-connected 

disablities. 

Job assistance 

Housing 

No programb 

State Accident Office 

4 L 

450 1 .l million 

Burial benefits State Accident Office 

i 

1,700 2.2 million 

Life insurance No PrograW 

Page 70 GAOtHFtD-94-6 Disabled Veterans Programs 
Appendix IV 

Fiunish Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

Objectives 

To provide medical treatment to veterans 

receiving compensation for 

service-connected disabilities or 

compensate them for the cost of medical 

treatment. 

Basis for eligibility Type or range of benefits 

Medical services must be for The kinds of care provided depends on 

service-connected disabilities. Care is degree of disability. Veterans with at least 

provided by general health system IO-percent disability receive an annual 

facilities or at certain facilities set aside for medical checkup, any needed special 

veterans. tests, and outpatient or institutional 

rehabilitation. With at least a 30-percent 

1 

disability, veterans receive such services 1 

as municipal health and social services, 

nursing care at home, physical 

rehabilitation, prostheses, and travel. The 

patient pays first $18 a day for medical 

costs not related to service-connected 

disability. This can be reimbursed as an 

allowance to the basic compensation up to 

a ceiling. A few hospitals, rehabilitation t 

centers, and nursing homes operate for ! 

veterans largely at government expense. / 

Not applicable. 

To help educate children of disabled or 

deceased veterans. 

Not eligible. 

Children must be aged 17 to 23, unable to Assistance pays for college or vocational 

work because of studying, and must have studies. An addition to service-connected I 

insufficient other income to cover compensation for dependents ordinarily 

educational expenses for college or ends when a child reaches age 17. 

vocational school. However, the additional compensation is 

continued if the child is a student, 

I 

To finance home adaptations for disabled Veterans must have at least a 30-percent Home adaptations include widening doors; i 

veterans. service-connected disability. removing doorsills: installing ramps, I 

railings, and support bars; changing 

plumbing; and the location of electric light 

switches and outlets. 

To assist in paying the burial costs of certain Veterans who received benefits for Up to $1,283 in burial costs can be paid. 

veterans who received benefits for service-connected disabilities of at least Required accounting for the grant depends 

service-connected disabilities and died from 20 percent or who died from on who receives it. If the grant is paid to a i 

those disabilities. service-connected disabilities are eligible. close relative, the relative receives the 

maximum amount. If the grant is paid to a 

person outside the family, the grant covers 

actual expenses, up to the maximum. The 

grant can cover actual costs of memorial 

services, transport of the deceased, coffin, 

flowers, headstone, and fees to the parish 

or parish priest. 

Page 71 GAO/EIRD-94-6 Disabled Veterans Programs 
Appendix IV 

Finnish Programs for Disabled Veterans, 

Their Survivors, and Dependents During 

1990 

*ExpendiNras and benefit amounts are expressed in U.S. dollars. Other countries’ currencies are 

converted to U.S. dollars using 1990 benchmark purchasing power parities. 

bVocational rehabilitation services are offered to veterans for injuries incurred beginning in 1991, 

under legislation that parallels that covering on-the-job injuries for all employees. 

CFinland, however, sponsors life insurance for all employees-including military 

personnel--financed by premiums paid by the employer and employee. This insurance covers 

the employee while employed and for 3 years following employment unless the employee 

became disabled, in which case the insurance coverage remains in force for 5 years. The 

insurance amount fafls gradually after an employee becomes 50 years old and is discontinued at 

pension age (65 years). 

Page 72 GAO/HRD-94-6 Disabled Veterans Programs ” 
Pfbge 73 

Y 

GAO/HRD-94-6 Disabled Veterans Programs ’ 
Appendix V 

German Programs for Disabled Veterans,” ? 

Their Survivors, and Dependents During 

1990 

Program area 

Compensation for 

service-connected disabilities 

Administering agency 

Ministry for Labor and Social 

Welfare 

Number of recipients in 

fiscal year 1990 

Fiscal year 1990 

expendituresb 

Veterans Not available. Not available. 

Survivors Not available. Not available. 

Page 74 GAOAXRD-94-6 Disabled Veterans Programs 
Appendix V 

Germam Programs for Dieabled Veterana,. 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate disabled veterans for There must be a causal link between Payments depend on the degree of 

(1) additional living expenses resulting from service and the event that results in the disability, which is expressed as a 

a service-connected disability, (2) disability. In some cases, when certain percentage reduction in earning capacity 

impairment of bodily integrity, and (3) health problems have an unknown cause, ranging from 30 to 100 percent in 

financial lasses from activities other than the the Ministry has universally recognized lo-percent increments. Payments ranged 

primary job due to the disability. War victims them as service-connected. from $87 to $457 a month. Additional 

also may receive similar compensation. amounts are available (1) for those at least 

65 years of age and 50 percent or more 

disabled, (2) as a supplemental allowance 

far the especially severely disabled, and/or 

(3) if the services of a personal attendant 

are needed. Additional allowances are 

available if the recipient is blind and uses a 

seeing-eye dog or other guide, and/or to 

compensate for wear and tear on clothing, 

if needed. 

To compensate survivors of these individuals. Benefits are available to widows, orphans, Benefits include basic compensation and 

and parents who cannot adequately compensation for (1) lost earning capacity 

support themselves. Veteran’s death need and (2) nursing the veteran over an 

not result from service-connected extended period of time. A widow’s basic 

disabilities for the widow to get benefits. compensation was $271 a month. Orphan’s 

pensions were $77 a month if one parent 

was still living and $144 a month if both 

were dead. In addition, widows may 

receive compensation if they nursed a 

disabled person in need of a personal 

attendant for at least 20 years. Partial 

widow’s compensation is available in some 

cases when the disabled person’s death is 

not service-connected. 

(continued) 

Page 76 GAOlllR.D-94-6 Disabled Veterans Programs 
Appendix V 

German Programa for Disabled Veterans,* 

Their Survivors, and Dependents During 

1990 

Program area 

Compensation based on neecF 

Veterans 

Administering agency 

Ministry for Labor and Social 

Welfare 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expendituresb 

Not available. Not available 

Survivors Not available. Not available. 

Military disability retirement 

Health care 

No programd 

Ministry for Labor and Social 

Welfare 

Not available. $262.7 milljon 

Education Ministry for Labor and Social 

Welfare 

Veterans 

Page 76 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix V 

German Programs for Disabled Veterans,~ 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate for lost earning capacity and Disability must be service-connected and Eligible persons receive a compensatory 

maintain the veteran’s or war victim’s rated at least 50 percent. Veterans must pension dependent on income. Wages 

livelihood. be needy. Almost any income reduces the (minus transportation costs and costs of 

amount of compensation, but maintaining a double household) 

compensation for service-connected exceeding $1,392 a month or social 

disabilities is excluded from this means security benefits (with similar exclusions) 

test. exceeding $835 a month would preclude 

receipt of a compensatory pension. A 

supplement is available for married 

couples; the supplement is reduced to the 

extent the disabled person’s income 

exceeds the limits for a compensatory 

pension. Compensation for loss of income 

reimburses the disabled for at least 

42.5 percent of the difference between 

actual gross income and the gross income 

he or she would have been expected to 

earn were it not for the disability. If the 

difference based on net income is higher, 

then this differential is used to compute the 

benefit amount. 

To compensate survivors of these individuals. Widows, orphans, or parents of veterans Compensation for widows and orphans 

who received compensation on the basis ranged up to $332 a month, and widows 

of need are eligible. could also receive compensation for the 

veteran’s injury (like the veteran’s loss of 

income compensation). Parents’ pensions 

are dependent on need. 

To finance medical care of disabled veterans 

with service-connected disabilities to (1) 

improve the health of veterans whose 

earning capacity has been impaired; (2) 

prevent additional suffering; (3) alleviate 

physical symptoms; (4) lessen the 

aftereffects of disabilities; and (5) 

reincorporate the disabled veteran into work, 

occupation, and society. 

Veterans with service-connected Available health care includes ambulatory 

disabilities are eligible. Dependents of medical and dental care; prescription 

disabled veterans are eligible if the drugs; bandages; motion, speech, or 

disability is rated at least 50 percent. Care occupational therapy; glasses or contact 

for ailments other than the lenses; teeth replacement; hospital care or 

service-connected disability and for in-patient rehabilitation; prostheses, 

dependents and survivors is available only seeing-eye dogs, and other devices; and 

if the recipients are needy. handicap testing and work therapy. 

Not applicable. Not eligible. 

(continued) 

Page 77 GAOtHRD-94-6 Disabled Veterans Programs 
Appendix V 

German Programa Por Disabled Veteraun,L 

Their Survivors, and Dependents During 

1990 

Program area 

Education (continued) 

Administering agency 

Number of recipients in 

fiscal year 1990 

Fiscal year 1990 

expenditure@ 

Dependents or survivors 5,510 $16.2 million 

Job assistance Ministry for Labor and Social 

Welfare 

Not available. Not available. 

Housing Ministry for Labor and Social 

Welfare 

365 1.3 milljon 

1 

Burial benefits Ministry for Labor and Social 

Welfare 

Veterans 5,600 veterans and survivors 3.6 million for veterans and I 

survivors 

Survivors 

Life insurance No oroaram 

Page 78 GAOIHRD-94-6 Disabled Veterans Programs 
Appendix V 

German Programs for Disabled Veterans,. 

Their Survivors, and Dependents During 

1990 

Objectives Basis for eligibility Type or range of benefits 

To assist in the cost of educating the children 

of certain veterans. 

Children of deceased or disabled veterans 

or other disabled persons are eligible. 

Children must be under 27 years of age, 

but this age limit can be extended if 

education was interrupted by compulsory 

military or alternative service. The student 

and family must be needy. 

Assistance covers all expenses for study 

and work materials, training and 

examination fees, necessary travel between 

the child’s residence and the place of 

training, and a maintenance allowance. 

Assistance may not exceed the usual 

duration of the course of education or 

training. For students living at home, the 

amount of the allowance is double the 

similar allowance provided to certain needy 

students by the child’s state of residence. 

Students living away from home receive 

larger amounts. (Data were not provided on 

the types of education or training qualifying 

for assistance.) 

To assist disabled veterans in obtaining and Veteran must have a serviceconnected Rehabilitation services are provided in 

maintaining employment as well as disability that prevents the veteran from 

occupatlonal modification, training, and learning a trade or practicing his or her 

retraining. former profession. 

To finance the acquisition or upgrading of Veterans receiving benefits for 

housing for disabled veterans, war victims, or service-connected disabilities or their 

their surviving spouses. widows are eligible. 

training and job assistance centers and 

cash assistance is granted if (1) the veteran 

cannot work full-time or (2) requires 

support for subsistence. 

Cash can be used to finance a lease in 

perpetuity; apartment ownership; 

permanent dwelling rights: a savings 

account to build a home; home 

enlargement, repair, or modernization; or 

paying off a home mortgage. Payments are 

made in a lump sum of 5 or 10 years’ worth 

(depending on the survivor’s age) of future 

basic compensation for service-connected 

disabilities. 

To pay all or most of the funeral costs of 

certain disabled veterans. 

To pay such costs for widows and other 

survivors. 

Deceased veterans who had Funeral expenses are paid up to $1,068 if 

service-connected disabilities are eligible. death was the result of a service-connected 

disability and up to $534 if it was not. 

Eiigiblity extends to (1) widows who leave Funeral expenses are paid up to $1,068 for 

a child who has a right to orphan’s qualifying widows and up to $534 for other 

compensation or (2) other survivors with a qualifying survivors. 

right to compensation. 

Page 79 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix V 

German Programs for Disabled Veterans,’ 

Their Survivors, and Dependents During 

1990 

aBenefits are provided only to veterans and civilians (war victims)-as well as their dependents 

and survivors-who incurred disabilities in World Wars I or II. Benefits for disabilities incurred by 

service members after World War II are provided under separate laws that together serve the 

general population. 

bExpenditures and benefit amounts are expressed in U.S. dollars. Other countries’ currencies are 

converted to U.S. dollars using 1990 benchmark purchasing power parities. 

CThis and compensation for service-connected disabilities together form a single program for 

providing benefits to disabled veterans and war victims. These are not separate programs, but 

are listed as separate program areas for purposes of comparison with programs of other 

countries. Like programs of other countries. the provisions listed here depend on the income of 

disabled veterans, war victims, or their survivors 

dA professional soldier with at least 5 years’ service is given regular retirement if disabled, under 

section 31 of the Soldier’s Law. In the event that the soldier is disabled by a service accident, 

additional compensation is paid upon deduction of benefits (described above) based on 

service-connected disabilities and need. 

Page SO GAO/H&D-94-6 Disabled Veterans Programs 
Page 81 GAO/HBD-94-6 Disabled Veterans Programs 
Appendix VI 

United Kingdom Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area 

Compensation for 

service-connected disabilities 

Administering agency 

Department of Sociat Security 

Number of recipients in Fiscal year 1990 

fiscal year 1990 expendituresa 

Veterans 192.000 $792.8 miltion 

Survivors 57.000 345.4 million I 

Compensation based on need 

Military disability retirement 

No program 

Ministry of Defence 

Veterans 

196,000 1.5 billion 

Page 82 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix M 

United Kingdom Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate veterans for disabilities Disabilities must be due to or aggravated Payment amounts depend on degree of 

attributable to or aggravated by service. by military duties. It is not enough for the disability, whether the veteran was an 

Disabilities are measured by comparing the disability to have occurred during service. officer, and whether the veteran also 

veteran’s condition with that of a normal The burden of proof that the disability is receives military disability retirement. The 

healthy person of the same age and sex, not service-connected lies with the degree of disability is measured in 

without taking into consideration the disabled government for 7 years after separation. increments of IO percent ranging from 20 

veteran’s earning capacity. Thereafter veterans must prove to 100 percent. For (1) veterans who were 

service-connection, but receive the benefit not officers and (2) officers not also 

of any reasonable doubt regardless of receiving military disablity retirement, 

when the claim is filed. annual compensation ranged from $1,315 

for a private to $7,134 for a major-general. 

For officers also receiving military disability 

retirement, compensation from the 

Department of Social Security ranged from 

$1,330 to $6,655 a year. Since April 1993, ’ 

rank has not been a factor in compensation 

amounts. i 

To compensate survivors of these veterans, The veteran must have died from the Surviving spouses receive $1,208 to $5,708 

condition that made the veteran eligible for a year, depending on the veteran’s rank. 

compensation for service-connected Payments to other survivors (orphans, 

disability. parents, children, and adult dependent 

relatives) depend on rank and relationship :! 

to the veteran. 

To compensate service personnel retired 

from military duties because of injury or 

illness. 

See objective. The disability may be, but If the veteran’s disability is not 

does not have to be service-connected, as service-connected (or is service-connected 

defined by the Department of Social but less than 20 percent disabling), 

Security (see above). compensatttjon is based on rank and length 

of service. If the disability is 

service-connected and 20 percent or more 

disabling, compensation is based on rank 

and degree of disability. 

(continued) 

Page 83 GAO/HRD-94-6 Disabled Veterans Programs 
i 

Appendix Vl 

United Kingdom Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area 

Military disability retirement 

(continued) 

Administering agency 

Number 01 recipients in Fiscal year 1990 

fiscal year 1990 expenditures” 

Survivors 

s 

70,000 $394.3 million d 

Health care 

Education 

No program 

Department 01 Social Security 

Veterans 

Dependents or survivors 

I 

90 7,104 

1 

Job assistance 

Housing 

Veterans 

Survivors 

No programb 

Department of Social Security 

b 

Not available for 1990; 27 Not available. 

recipients in 1992, including 

both veterans and survivors. 

Not available. Not available. 

Page 84 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix VI 

United Kingdom Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives Basis for eligibility Type or range of benefits 

To compensate survivors of these veterans. Surviving spouses, dependent children, If the veteran’s disability was not 

orphans, needy parents, or other needy service-connected, a surviving spouse 1 

relatives of a military disability retiree are receives 50 percent of the compensation 

eligible. paid to veteran. Where the veteran’s 

disability was service-connected, a 

surviving spouse receives 90 percent of the 

full career pension for the veteran’s rank 1 

less any third-party compensation or other 

pensions the spouse receives. Lesser 

amounts are provided dependent children 

! 

or orphans. 4 

Not applicable. Not eligible. 

To assist in the cost of educating certain Children of current or deceased veterans A maximum annual grant of $213 was 

children of current or deceased recipients of who had received compensation for available. The average grant in fiscal year 

compensation for service- connected service-connected disabilities are eligible. 1990 was $80. 

disabilities. If the veteran is deceased, his or her death 

generally must be from service-connected 

causes. Children must be at least 5 years 

old, and the Department of Social Security 

must determine that the family needs 

assistance. This program was rendered 

largely obsolete by legislation that 

provided free education for all children. 

The veterans’ children’s program was 

discontinued in April 1993. 

To assist veterans who receive 

compensation for service-connected 

disabilities in adapting their homes. 

To provide rent assistance for certain 

survivors of disabled veterans. 

Veterans receiving compensation for Home adaptations costing up to $444 are 

service-connected disabilities are eligible. paid for. 

Certain widows or unmarried dependents Qualified survivors receive rent assistance. 

who lived as wives with now-deceased 

veterans who received compensation for 

service-connected disabilities are eligible. 

The household must inciude a child, and, 

in the case of married dependents, a child 

of the veteran. 

(continued) 

Page 85 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix Vl 

United Kingdom Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Program area Administering agency 

Burial benefits Department of Social Security 

Number of recipients in 

fiscal year 1990 

1,500 

Fiscal year 1990 

expendituresa 

$1.2 million 

Life insurance No program 

Page 86 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix VI 

United Kingdom Programs for Disabled 

Veterans, Their Survivors, and Dependents 

During 1990 

Objectives 

To pay the basic funeral costs of certain 

recipients of compensation for 

service-connected disabilities. 

Basis for eligibility Type or range of benefits 

Eligible recipients include veterans who Cash is provided to pay for (1) transporting 

received compensation for the body; (2) travel for a relative to arrange 

service-connected disabilities who (1) or attend the funeral; (3) death certificate; 

died of those disabilities or (2) had been (4) an ordinary coffin; (5) a car for the coffin 

receiving an allowance for the services of and bearers plus one other car; (6) flowers; 

a personal (not domestic) attendant. (7) fees for the undertaker, chaplain, and 

organist; (8) cemetery or crematorium fees; 

and (9) up to $133 extra costs to fulfill 

requirements or customs of the deceased’s 

religion. 

aExpendltures and benefits amounts are expressed in U.S. dollars. Other countries’ currencies 

are converted to U.S. dollars using 1990 benchmark purchasing power parities. 

bThe United Kingdom provides subsidized car or taxi fares to get disabled citizens to work: 

provides employers that hire the disabled with special tools and equipment; and gives disabled 

citizens counseling, rehabilitation services, training, and a cash training allowance. 

i 

Page 87 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix VII 

Average Amount Paid in Fiscal Year 1990 for 

Major Compensation Programs Specifically 

for Disabled Veterans” 

Country Program 

United States Compensation for service-connected disabilities 

Average 

compensation 

amountb 

$4,243 

Needs-based comDensation 4.521 

Military disability retirement 11,182 ’ 

Australia Compensation for service-connected disabilities 2,816 

Needs-based compensation 4,239 : 

Military disabitity retirement 9,768 

Canada Compensation for service-connected disabilities 5,412 

Needs-based compensation 4,554 

Military disability retirement 

Finland Compensation for service-connected disabilities 

5,138 j 

3,078 1 

Needs-based compensation 2,956 ; 

Military disability retirement c 1 

Germany Compensation for service-connected disabilities d 

Needs-based compensation d 

Military disability retirement c 

United Kingdom Compensation for service-connected disabilities 4,119 

Needs-based compensation c 

Milltarv disabilitv retirement 7.873 

%ompensation benefits cannot be compared among the countries because there are differences 

in programs available, benefits offered, and eligibility criteria. This appendix presents 

programmatic information on compensatron for disabled veterans in the United States and each 

foreign country studied. Information is provided only when the compensation is offered 

exclusively or primarily to disabled veterans and is not available to the general populatjon. 

bAll compensation amounts are expressed in U.S. dollars at 1990 benchmark purchasing power 

panty, which equalizes price levels among countries’ currencies. 

CProgram does not exist. 

dAmount not available 

Page 88 GACWHRD-94-6 Disabled Veterans Programs 
Appendix VIII 

Average Amount Paid in Fiscal Year 1990 for 

Major Compensation Programs Specifically 

for Survivors of Disabled Veterans” 

Average 

compensation 

Country Program amountb 

United States Compensation for service-connected disabilities $7,327 

Needs-based compensation 2,467 

Military disability retirement c 

Australia Compensation for service-connected disabilities 5,356 

Needs-based compensat!on 3,770 

Military disability retirement c 

Canada Compensation for service-connected disabilities 4,130 

Needs-based compensation 2,349 

Military disability retirement c 

Finland Compensation for service-connected disabilities 3,410 

Needs-based compensation 2,236 

Military disability retirement d 

Germany Compensation for service-connected disabilities 8,859e 

Needs-based compensation see above 

Military disability retirement u 

United Kingdom Compensation for service-connected disabilities 6,010 

Needs-based compensation d 

Military disability retirement 5,593 

aCompensation benefits cannot be compared among the countries because there are differences 

in programs available, benefits offered, and eligibility criteria. Information is provided only when 

the compensation is offered exclusively or primanly to survivors of disabled veterans and is not 

available to the general population. 

bAll compensation amounts are expressed in U.S. dollars at 1990 benchmark purchasing power 

parity, which equalizes price levels among countries’ currencies. 

CAmount not available. 

dProgram does not exist 

%cludes needs-based compensation. 

Page 89 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix IX 

Administration of Veterans Benefits 

Programs 

This appendix describes program administration of veterans benefits in j r 

countries that have agencies specifically for veterans, administration by 

other countries’ social services agencies, and the workings of the appeals 

process in each country. 

Several Countries 

Have Agencies 

Specifically for 

Veterans 

The United States, Australia, Canada, and Finland have established 

agencies specifically for serving veterans. In the United States, the 

Department of Veterans Affairs administers programs providing the 

majority of benefits to veterans, their dependents, and survivors. The 

Department of Labor administers employment and training programs for 1 

disabled and economically disadvantaged veterans. The Office of 

Personnel Management administers an employment program giving I 

special preference for disabled veterans and, in some cases, spouses and 1 

mothers for federal service employment. The military services administer 

the disability retirement program. They also administer, in partnership ] 

with Labor and VA, programs that provide transition services to members 

who are leaving the military. 

In Australia, benefits are administered by several agencies. Benefits 

specifically for disabled veterans are administered by the Repatriation 

Commission through the Department of Veterans’ Affairs. The Department 

administers, on the Commission’s behalf, programs providing 

compensation for service-connected disabilities, compensation based on 

need, and health and burial benefits. The Department also administers a 

housing program for veterans. Also, the Commission, through Veterans’ 

Children Education Boards, administers an education assistance program. 

The Retirement Benefits Office of the Defense Force Retirement and 

Death Benefits Authority administers a military disability retirement 

program. The Commission for Safety, Rehabilitation, and Compensation of 

Commonwealth Employees administers a program providing vocational 

rehabilitation for disabled federal employees, including veterans. 

In Canada, the Minister of Veterans Affairs administers programs for 

veterans through the Department of Veterans Affairs in conjunction with 

other independent agencies. The Department of Veterans Affairs in Canada 

pays alI forms of compensation and benefits for veterans as well as for 

certain civilians who had wartime service, and their families. The 

Canadian Pension Commission, a quasi-judicial agency, awards 

compensation to veterans for service-connected disabilities. The 

Department of National Defense administers a contributory military 

disability retirement program (members must contribute a portion of their 

Page 90 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix IX 

Administration of Veterans Benefits 

Programs 

pay to the program while in service) for persons who retired from military 

service because of a disability. The Canada Mortgage and Housing 

Corporation provides priority for moderately priced housing to veterans, 

including disabled veterans. The Last Post Fund pays for the burial of 

indigent veterans. And the Service Insurance Board of Trustees 

administers programs providing life and disability insurance to service 

members and veterans. 

In F’inland, the State Accident Office administers all programs providing 

benefits to disabled veterans, including compensation for 

service-connected disabilities, education benefits, vocational rehabilitation 

(for injuries incurred starting in 1991), health care, home adaptations, and 

burial benefits. This office pays benefits and maintains veterans’ medical 

records for hospital care received during military service. Also, the Social 

Insurance Institution operates a number of programs for disabled persons, 

for which veterans may qualify. 

Other Countries’ Germany and the United Kingdom do not have separate agencies 

Social Services specifically for veterans. Rather, veterans benefits generally are provided 

under programs administered by social service agencies. 

Agencies Administer 

Programs for Disabled In Germany the Ministry of Labor and Social Affairs administers a pension 

Veterans 

system providing compensation to persons (or their survivors) whose 

disabilities were caused by performance of military or paramilitary service 

or other causes. This German Ministry also operates a number of programs 

for the general population. These programs are available for veterans and 

survivors if they otherwise qualify. 

The United Kingdom’s Department of Social Security administers a 

number of social programs providing assistance to the disabled, in general, 

which includes veterans. The programs for veterans include a disability 

compensation program for service-connected disabilities, an education 

allowance program (ended in April 1993 for all new claims), a burial 

services program, a program for adapting housing to meet the needs of 

disabled veterans, and a war pensioner welfare service program designed 

to help compensation recipients with financial or practical problems. 

In the United Kingdom, other agencies also administer programs for 

disabled veterans. The Ministry of Defence administers a compensation 

program for veterans who leave service because of disabilities. The 

Employment Service @art of the Department of Employment) and local 

Page 91 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix IX 

Administration of Veterans Benefits 

Programs 

authorities operate programs for vocational rehabilitation and rental 

assistance, respectively, the latter funded largely by the Department of 

Social Security. These employment and housing programs are available to 

ah disabled persons, including disabled veterans. Also, the National Health 

Service (part of the Department of Health) provides medical services to all 

citizens, including disabled veterans, who are given priority treatment over 

all but emergency cases. 

The Workings of the 

Appeals Process 

d 

1 Veterans in the United States, Australia, Canada, and the United Kingdom 

can appeal decisions on their claims at multiple levels. U.S. veterans have 

the right, under law, to appeal the decisions made on their claims by the VA 

regional offices. Claimants have 1 year to appeal a decision. The U.S. 

appeals process begins when the claimant files a notice of disagreement I : 

with the regional office where the claim is reconsidered and the benefit 

granted or the original decision is upheld. Claimants’ disagreements with 

regional office decisions can be appealed to VA’S Board of Veterans 

1 

Appeals for review and further consideration. The claimant can request a 

hearing before the Board. Veterans who are dissatisfied with a decision by 

the Board can appeal to the U.S. Court of Veterans Appeals for further 

consideration. 

U.S. veterans may be represented by legal counsel throughout the appeals 

process. However, the Board and/or the Court of Veterans Appeals may 

(1) review the fee arrangement between the veteran and the legal counsel 

and (2) order a reduction if the fee is deemed excessive or unreasonable. 

The total fee paid to the legal counsel may not exceed 20 percent of the 

total amount of any past due benefits awarded on the basis of the claim. 

The fee is paid to the legal counsel by VA directly from any past due 

benefits awarded on the basis of the claim. 

In Australia, the appeals process is handled by the Repatriation 

Commission, the Veterans’ Review Board, the Administrative Appeals 

Tribunal, and the courts. The Repatriation Commission acts as the first 

appeal level by reviewing initial decisions at the request of the veteran. 

The Veterans’ Review Board, an independent body, hears appeals by 

veterans who are dissatisfied with Repatriation Commission decisions. 

The Administrative Appeals Tribunal hears appeals from decisions of the 

Veterans’ Review Board. The regular courts are the final route of appeal 

after the Administrative Appeals Tribunal and only based on a claimed 

error in law. Veterans can have legal representation for appeals brought 

before the Administrative Appeals Tribunal or the regular courts. There is 

Page 92 GAO/HRD-94-6 Disabled Veterans Programs I 
Appendix LX 

Administration of Veterans Benefits 

Programs 

no limit on the fees charged for legal representation and such fees are to 

be paid by the veteran. 

In Canada, the fiit avenue of appeal is to the agency making the initial 

decision. Appeals of disability compensation decisions may first be lodged 

with the Canadian Pension Commission which may reconsider eligibility 

decisions and disability ratings. If the veteran is dissatisfied with the 

Commission decision, the appeal can be filed with an ad hoc Entitlement 

Board composed of three members of the Commission. Similarly, an 

applicant for compensation based on need may appeal an unfavorable 

decision to the Department of Veterans Affairs for reconsideration. 

In Canada, appeals that still cannot be resolved can be taken to the 

Veterans Appeal Board. The Board can uphold, modify, or overturn 

decisions of the Canadian Pension Commission or the Department of 

Veterans Affairs, or can remand the case to the Commission or 

Department for further investigation. In addition, the Veterans Appeal 

Board can authoritatively interpret the statutes upon which disability 

compensation and needs-based compensation are awarded. The Appeal 

Board is generally the veteran’s last resort for appealing decisions. Court 

review is available for certain cases of error in law or fact, but very few 

cases enter the courts. 

In Canada, a veteran may be represented by counsel throughout the 

appeals process. The Bureau of Pensions Advocates, an independent 

agency, provides free legal services to veterans on claims for disability 

benefits. Alternatively, the veteran can hire private counsel to handle an 

appeti but is required to pay the attorney’s fee. 

In the United Kingdom, appeals are handled first by the administering 

agency and independent War Pension Committee, which represent the 

veteran’s interest. Further appeals can be made to the Pensions Appeal 

Tribunals and various courts, namely the High Court in England and 

Wales, the Court of Session in Scotland, and the Supreme Court of 

Northern Ireland. Veterans can be represented by legal counsel; however, 

the counsel’s fees must be paid by the veteran. There is no restriction on 

the amount of such fees. The Royal British Legion will, however, represent 

veterans at no cost. 

Appeals in Finland and Germany are handled by the court system rather 

than first being reviewed by the office that made the initial decision or by 

an appeak board. In Finland, decisions made on veterans’ claims are 

Page 93 

5 

GAOIHRD-94-6 Disabled Veterans Progranw 
Appendix 1X 

Administration of Veterans Benefitu 

Programs 

appealed to the J?innish Insurance Court. Further appeal can be made with 

the Finnish Supreme Court. Veterans can be represented by legal counsel ’ 

during the appeal process; however, veterans must pay the counsel’s fees. : 

These fees are not regulated. Legal advisors are available through the / 

municipal service system at no cost to the veteran. In Germany, appeals 6 

are handled through regional or federal courts. 

Page 94 GAO/fIRD-94-6 Disabled Veterans Programs 
Appendix X 

Comments From the Department of 

Veterans Affairs 

THE SECRETARY OF VETERANS AFFAIRS 

WASWNGTON 

SEf' a 1993 

Mr. Joseph F. Delfico 

Director, Income Security Issues 

U.S. General Accounting Office 

441 G Street, NW 

Washington, DC 20548 

tk3ar Mr. Belfico: 

I have reviewed your draft report, DISBLED VEIIWNS m: U.S. 

Eligibility and Benefit Types Compared to Five Other Countries 

~O/i-%B-93-L?91. This reoort orovides an interesting canoarison of United 

States veterans; benefits idministered by the Depart&t of Veterans Affairs 

(VA) with somewhat similar benefits administered by several selected foreign 

governments for their veterans. However, the utility of such an inventory of 

benefits is questionable without an analysis of the policy and socioeconamic 

issues that define each country’s veterans programs. I believe that this type 

of analysis is essential if any real comparison of benefits is to be made. In 

fact, I deem it absolutely necessary if the Congress intends to use this 

report in any reconsideration of veterans entitlement programs. 

There is considerable discussion regarding specific benefits 

(e.g. educational, job assistance, life insurance) the United States 

provides. However, the discussion lacks a presentation of any quantitative 

data to indicate a negative cost impact from offering these benefits. Such 

information would also be necessary if Congress is to use this report for 

reconsideration of benefits. 

The draft contained a rumrbet of substantive errors, and we have provided 

your staff corrections to those errors. We also provided them with some 

tecnnical clarifications to discussions ue believe could be misinterpreted as 

presented. However, we are concerned with the GAO’s nontraditional use of 

terms and statements regarding United States prograins. We can appreciate that 

GAO is trying to avoid confusion with other countries’ terms. However, we 

believe GAO should, for example, limit the use of the term f’canpensation” to 

refer to service-connected disability payments. Such nontraditional use of 

terms that are based in statute causes the reader to question the accuracy of 

the overall discussion. 

Thank you for the opportunity to comment on your report. 

Sincerely yours, 

9- 

Q+- 

Jesse Brown 

JB/VZ 

Page 95 GAO/HRD-94-6 Disabled Veterans Programs 
Appendix XI 

Major Contributors to This Report 

Human Resources James F. Walsh, Assistant Director, (202) 612-7206 

Division, Washington, 

William A. Hightower, Assignment Manager 

Paul T. Wagner, Jr., Evaluator-in-Charge 

DC. Joe A. Vance, Evaluator 

Daniel J. Tikvart, Evaluator 

Amy L. Ward, Research Assistant 

Henry E. Felder, Assistant Director 

Tmnslators Jan Donsbach, U.S. Department of Veterans Affairs 

Brigitta Lent, U.S. Department of State 

(105717) Page 96 GAO/IiRD-94-6 Disabled Veterans Pmgrams 
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