THE UNDER SECRETARY OF VETERANS AFFAIRS FOR BENEFITS

WASHINGTON, D.C. 20420

Dear Reader:

We are pleased to present the Veterans Benefits Administration Annual Benefits Report for

Fiscal Year 2001. This report transforms the essential data of VBA's core activities into the

information that is important to fully comprehend the efforts of our dedicated employees as well

as our mission of serving the Nation's veterans.

This is the fourth publication of the Annual Benefits Report and reinforces VBA’s continued

commitment to our stakeholders and business partners to provide comprehensive data that

describes the activities of our five benefit programs. In this report, we summarize information

concerning veterans and dependents who first began receiving benefits during FY 2001 and

veterans and dependents whose benefits terminated last year. In the last chapter, we provide

projections of compensation program usage and the associated financial obligations to

veterans and their dependents through FY 2071.

In this year’s publication, we also introduce a discussion for the expanded use of analysis,

interpretation of reported data, and a comparison of those data against established

performance measures and objectives.

In the future, we anticipate the Annual Benefits Report will provide essential information to

become a dynamic management tool for those in the business of serving America’s veterans.

We plan to resume earlier publication and to enhance the content of the report with more

descriptive tables and graphs. We encourage meaningful and positive recommendations to

assist us in this improvement process.

Mindful of VA’s commitment to President Lincoln’s call to care for our Nation’s veterans and

their dependents, this edition of the Annual Benefits Report displays on its cover our sixteenth

president as he is enshrined at the Memorial in Washington, DC.

/s/

Daniel L. Cooper
TABLE OF CONTENTS

CHAPTER 1

INTRODUCTION TO THE VETERANS BENEFITS ADMINISTRATION AND

ITS BENEFITS PROGRAMS

Veterans Benefit Administration – Mission, Vision And Core Values ........................................... Page 1

Purpose Of VBA’s Annual Benefits Report.........................................................................................3

VBA’s Benefits Programs -- Overview ...............................................................................................7

CHAPTER 2

BUSINESS DURING FISCAL YEAR 2001

Beneficiaries Entering The Programs -- New Business

Summary Of All Programs ........................................................................................Page 14

Compensation – Disability ................................................................................................ 16

Compensation – Death .................................................................................................... 37

Pension – Disability.......................................................................................................... 40

Pension – Death .............................................................................................................. 41

Education ........................................................................................................................ 42

Life Insurance.................................................................................................................. 43

Home Loan Guaranty ....................................................................................................... 46

Vocational Rehabilitation And Employment ........................................................................ 50

Beneficiaries Leaving The Programs – Transitions

Summary Of All Programs ................................................................................................ 65

Compensation – Disability ................................................................................................ 66

Compensation – Death..................................................................................................... 67

Pension – Disability.......................................................................................................... 68

Pension – Death .............................................................................................................. 69

Education ........................................................................................................................ 70

Life Insurance.................................................................................................................. 70

Home Loan Guaranty ....................................................................................................... 73

Vocational Rehabilitation And Employment ........................................................................ 73
 Table of Contents

ii

CHAPTER 3

BUSINESS BEGINNING FISCAL YEAR 2002

Summary Of All Programs ..................................................................................................... Page 79

Compensation – Disability ..............................................................................................................81

Compensation – Death................................................................................................................. 101

Pension – Disability...................................................................................................................... 105

Pension – Death .......................................................................................................................... 107

Education .................................................................................................................................... 109

Life Insurance.............................................................................................................................. 111

Home Loan Guaranty ................................................................................................................... 117

Vocational Rehabilitation And Employment .................................................................................... 121

CHAPTER 4

THE FUTURE – FORECASTING PROGRAM LIABILITIES

Forecasting Of Program Liabilities .....................................................................................Page 127

Table 1 – Estimate of Compensation Liability................................................................................. 128

Table 2 – Estimated Future Compensation Benefits ....................................................................... 130

Table 3 – Discounted Estimated Future Compensation Payments................................................... 132

Table 4 – Veterans Receiving Compensation................................................................................. 133

Table 5 – Death Rates.................................................................................................................. 135

Table 6A – Projected Newly Adjudicated Compensation Cases....................................................... 137

Table 6B – Rates of Newly Adjudicated Compensation Cases ........................................................ 138

APPENDICES

Appendix A – Geographic Distribution Benefit Maps ............................................................. Page 139

Appendix B -- VBA Regional Office Addresses ............................................................................... 186

Appendix C – Contacting VA By Telephone 1................................................................................. 190

Appendix D -- Web Sites .............................................................................................................. 191

INDEX

Index .............................................................................................................................. Page 192

Index To Tables ........................................................................................................................... 199

Index To Maps/Tables .................................................................................................................. 205

Glossary ...................................................................................................................................... 206
CHAPTER 1

INTRODUCTION TO

THE VETERANS BENEFITS ADMINISTRATION

AND ITS BENEFITS PROGRAMS

VETERANS BENEFITS ADMINISTRATION--ITS MISSION

VBA’s Mission Statement

The mission of the Veterans Benefits Administration (VBA), in

partnership with the Veterans Health Administration and the

National Cemetery Administration, is to provide benefits and

services to veterans and their families in a responsive, timely and

compassionate manner in recognition of their service to the Nation.

VETERANS BENEFITS ADMINISTRATION--ITS VISION

VBA’s Vision Statement

Our vision is that the veterans whom we serve will feel that our

nation has kept its commitment to them; employees will feel that

they are both recognized for their contribution and are part of

something larger than themselves; and taxpayers will feel that

we’ve met the responsibilities they’ve entrusted to us. Courage,

honesty, trust, respect, open communication, and accountability will

be reflected in our day to day behavior.
Chapter 1 Introduction

2

VETERANS BENEFITS ADMINISTRATION – ITS CORE VALUES

VBA’s CORE VALUES

Veterans have earned our respect and are our reason for being,

our common purpose. All our efforts are directed toward meeting

their needs.

We are committed to communicating to our veterans and

employees in a timely, thorough, accurate, understandable and

respectful manner.

We listen to the concerns and views of veterans and our employees

to bring about improvement in benefits and services, and the

climate in which they are provided.

We value understandable business processes that consistently

produce positive results.

We foster an environment that promotes personal and corporate

initiative risk-taking and teamwork.

We are open to change and flexible in our attitudes.

Respect, integrity, trust and fairness are hallmarks of all our

interactions.

We value a culture where everyone is involved, accountable,

respected and appreciated.

We will perform at the highest level of competence, always, and

take pride in accomplishment. We are a “can do” organization.
Chapter 1 Introduction

3

PURPOSE OF VBA’S ANNUAL BENEFITS REPORT

For the past three years, the purpose of Veterans Benefits Administration Annual Benefits

Report has been to identify the current level of program participation by eligible persons and to

profile the veteran/beneficiary consumers of these program services. As we originally

intended, the Annual Benefits Report (ABR) has become a meaningful tool for VA, VBA and a

variety of interested program stakeholders.

Similar to the first three years of publication, this edition of the ABR does not attempt to

analyze work processes associated with the day-to-day administration of these benefit

programs. However, one of our goals is to broaden the analysis and use of the data contained

in the ABR. Towards that objective, we are exploring the feasibility of including in future

editions information about our performance against established measures. The intent is to

display and discuss these three critical means of performance measurement:

1. Production,

2. Quality, and

3. Productivity.

With increasing emphasis being placed on the Department’s accountability and program

activity disclosure, we are also considering the development of data analytical methods and

the inclusion of data to complement information published in the Annual Report of the

Secretary of Veterans Affairs.

Our goal in expanding the focus of the ABR is to establish consistent and understandable

information about VBA’s continued progress towards effectively and efficiently serving the

needs of our Nation’s veterans and their dependents.

PERFORMANCE MEASUREMENT DISCUSSION

Developing the ABR into an improved management tool will require VBA to establish a plan

and to implement those changes over a reasonable period of time. This edition will serve as a

starting point for the path VBA intends to travel. Performance measurements have long been

in place within the VBA operating environment. This measurement process can be enhanced

by utilizing data in the ABR. The critical component of performance measurement is ensuring

that the standard being utilized is one capable of providing insight towards improving

established success factors.
Chapter 1 Introduction

4

By way of example consider these three essential success factors:

1. Production (e.g., how many decisions were rendered?);

2. Quality (e.g., what was the accuracy of decisions rendered?); and

3. Productivity (e.g., how many decisions were rendered relative to the number of

decisions which could be rendered over a defined time period?).

The ABR currently provides data that can be utilized regularly to assess all three factors.

In future editions, VBA will consider performance measures established within the benefit

programs — derived from data sources other than those currently in the ABR and allow the

reader to assess these benchmarks of performance and to provide recommendations on

enhancing service to the veterans through these measures.

DATA ANALYTICAL DISCUSSION

Through the assembly, assessment and interpretation of historical participation and

performance data, VBA can reasonably construct decision-making models that utilize

knowledge gained from the past. Improved analysis and evaluation of the information

presented in the ABR are the tools that will assist VBA in the decision process. For that

purpose, we are formulating strategy to include discussion concerning our analysis and

evaluation activities as part of future editions of the ABR.

Many data analytical methodologies may be of value to both VBA and its stakeholders. We

intend to explore them all, [e.g., trending and “drilling down”], and incorporate those that

provide measurable value. As part of the process, we will continue to evolve our data

management capabilities to improve the development and identification of historical trends and

enhance forecasting capabilities.

VBA recognizes that the interpretation of data is more an art than a science. Accordingly, we

understand that much of the data and information we provide may be interpreted differently by

the stakeholders and readership of the ABR. To improve the understanding of presented

information, VBA will attempt to share with its readers both the methodology and interpretation

of selected data in future ABR editions.
Chapter 1 Introduction

5

FUTURE ABR CONSIDERATIONS

Providing meaningful information regarding the activity of VBA benefit programs is important.

The data contained herein must be capable of providing the reader with the ability to draw

conclusions about program activity and expectations. VBA will continue to enhance the

methods of data validation and ensure consistency in all publications released by VA through

comparative review of similar data shared in these documents.

The phrase “the data are what the data are” best describes compiled data without analysis.

Through data analysis, data modeling and other methods of critical evaluation, VBA will

ascertain the most meaningful data to present in the ABR. We will expand data and

information about those areas and elements of program activity where it is important for the

reader to understand meaning beyond a single line item. Conversely, we will seek to reduce

the volume of data presented by those elements that provide minimal value for the reader.

Lastly, we will continue to expand the presentation of data to include trending analysis and

descriptive information regarding the trends that become apparent.

VBA is committed to its mission of serving the needs of our Nations’ veterans and their

dependents. With a focus on continuous improvement, we will continue to ensure that the

present and future ABR assists VBA in meeting this commitment.
Chapter 1 Introduction

6
Chapter 1 Introduction

7

 VBA’s BENEFITS PROGRAMS -- OVERVIEW

Veterans' benefits represent an integral part of American history. Knowledge of benefits

history is important for all those who are interested in a comprehensive understanding of what

VBA does and why. VA Pamphlet 80-97-2, VA History in Brief, September, 1997, provides

such a history. This pamphlet is available on the VA Home Page:

http://www.va.gov/pubaff/histbrf.pdf.

In September 2001, the estimated veteran population was 25 million.1 Of this number nearly

three of every four veterans’ served during a war or an official period of hostility. About a

quarter of the nation’s population, approximately 70 million people, are potentially eligible for

VA benefits and services because they are veterans, family members or survivors of veterans.2

COMPENSATION -- BASED UPON SERVICE-CONNECTED DISABILITY OR DEATH

Disability compensation is a monetary benefit paid to veterans with service-connected

disabilities. “Service-connected” means that the disability was a result of a disease or injury

incurred or aggravated during active military service. To be eligible for disability

compensation, the veteran must:

• have been discharged under conditions other than dishonorable

• disability must not have resulted from the veteran’s willful misconduct.

Disability compensation is graduated according to the degree of the veteran’s disability

on a scale from 0 percent disabling to 100 percent disabling, in increments of 10

percent. Benefits in addition to the 100 percent disability rate are payable to veterans

with extremely severe disabilities such as the anatomical loss or loss of use of a hand or

foot, blindness, or deafness. The most seriously disabled veterans receive the highest

benefit amounts, and less severely disabled veterans receive lower benefits.

Dependency and Indemnity Compensation (DIC) benefits are generally payable to the

survivors of service members who died while on active duty or veterans who died from their

service-connected disabilities. However, VA may pay DIC benefits to survivors of veterans

whose deaths were not service-connected if the veterans were continuously rated totally

disabled due to service-connected disabilities for:

• Ten or more years immediately preceding the veteran’s death

• Five years from the date of veteran’s discharge.3

 

1

 Veteran Population Projections through September 30, 2001, VA Office of Policy and Planning

2

 Office of Public Affairs VA Fact Sheet, May 2001

3

 38 U.S.C. 1318
Chapter 1 Introduction

8

DIC benefits may also be paid to the survivors of former Prisoners of War (POW) who died

after September 30, 1999, and who were continuously rated totally disabled due to a serviceconnected disability for a period of not less than one year preceding death.4

Surviving spouses who are not remarried5 and dependent children are potentially eligible for

DIC benefits. An additional amount is payable if the veteran was rated totally disabled for a

period of at least eight years prior to death. For deaths prior to January 1, 1993, benefit rates

are based on the veteran’s military pay grade or the current monthly rate established by law,

whichever is the greater benefit.

Parents of veterans or service members who die as the result of a service-connected disease

or injury are also potentially eligible for DIC benefits. Parents’ DIC is a needs-based program

for financially dependent parents.

PENSION -- BASED UPON NONSERVICE DISABILITY OR DEATH AND FINANCIAL NEED

VA pension programs are designed to provide income support to veterans (with wartime

service) and their families for a nonservice-connected disability or death. These programs,

which serve veterans and survivors who are experiencing financial hardship, are means

tested. In other words, it is the total family income from sources other than VA that determines

the amount of the benefit. Laws establish income limits and regulate the rates of payments.

Wartime veterans who are determined permanently and totally disabled as the result of a

nonservice-connected disability may be eligible for a disability pension. Entitlement to this

disability pension is subject to income limitations. Additional amounts may be paid to a

veteran who has dependents; is so disabled as to require the aid and attendance of another

person; or is housebound. Benefits are also paid under two protected, or “grandfathered”,

prior pension programs. These rates and limits are fixed at the amounts in effect when the

programs were superseded.

Surviving spouses and dependent children of wartime veterans’ are potentially eligible for

death pensionbenefits, subject to income limitations. As with disability pension, death pension

is paid under the current pension program as well as under the two “grandfathered” prior

programs.

 

4

 Section 501 of Pub. L. 106-117 was enacted on November 30, 1999

5

 Public Law 105-178, amended 38 U.S.C. 1311, effective October 1, 1998, to reinstate eligibility to a surviving spouse of a veteran whose

remarriage after the veteran’s death is terminated by death, divorce, or annulment and to a surviving spouse of a veteran who ceases living

with another person and holding himself or herself out openly to the public as that person's spouse.
Chapter 1 Introduction

9

EDUCATION

VBA education programs provide veterans, reservists, and certain Veterans dependents with

educational resources to supplement opportunities missed because of military service. These

programs are also meant to help the armed forces and reserves to both recruit and retain

members. For members of the armed forces, VA educational benefits assist in the adjustment

to civilian life. On a broader scale, educational benefits are meant to enhance the Nation's

competitiveness through the development of a more highly educated and productive

workforce.

There are four active education programs:

1. Post-Vietnam Era Veterans Educational Assistance Program (VEAP)

VEAP was the first GI Bill program that required a contribution by the service member.

Requirements and features of VEAP are as follows:

• First entered on active duty after December 31, 1976, and before July 1, 1985;

• Contributed to VEAP while on active duty and before April 1, 1987;

• Maximum contribution of $2700 by the service member;

• Government matches contribution $2 for $1;

• Maximum entitlement is 36 months;

• Benefit must be used within 10 years of discharge from the service;

• Unused contributions may be refund

• Additional "kickers"6 or contributions from the Department of Defense (DoD)

 under certain circumstances; and

• Current full-time VEAP rate is $300 per month plus any DoD "kicker"

 adjustment.

2. Montgomery GI Bill - Active Duty (MGIB)

MGIB is a contributory program. The service member’s pay is automatically reduced by

$100 per month for 12 months unless the service member declines to participate at the

time of enlistment. Requirements and features of MGIB are as follows:

• Served on active duty after June 30, 1985;

• Must fulfill one's basic service obligation;

• Must have completed the requirements of a secondary school diploma, or its

 equivalent, before applying for benefits;

• Must receive an honorable discharge;

• Maximum entitlement is 36 months;

• Additional "kicker" may be available, as determined by Department of

Defense (DoD); and

• Generally, must use benefits within 10 years following discharge.

 

6

 A “kicker” is an additional monetary contribution paid by the military under certain circumstances.
Chapter 1 Introduction

10

3. Montgomery GI Bill - Selected Reserve (MGIB-SR)

MGIB-SR is the first GI Bill to provide educational assistance to members of the

Selected Reserve (including National Guard members). DoD funds this program and is

responsible for determining eligibility to MGIB-SR. VBA administers the program.

Requirements and features of MGIB-SR are as follows:

• Must agree to a six-year Selected Reserve obligation after July 1, 1985;

• Must have completed the requirements of a secondary school diploma, or its

• equivalent, before applying for benefits;

• Remain a member in good standing of the Selected Reserve;

• Maximum entitlement is 36 months; and

• Generally, must use benefits within 10 years of date eligibility began.

4. Dependents Educational Assistance Program (DEA)

DEA is the only VA educational assistance program designed for students who have

never served in the Armed Forces. Features and requirements of DEA are as

follows:

• Eligibility is based on the veteran's service-connected death, total

 service-connected disability, or MIA/POW/hostage status

• Maximum entitlement is 45 months;

• Children generally have eight years in which to use benefits;

• With some exceptions, children must be between ages 18 and 26;

• Spouses have 10 years in which to use benefits; and

• A spouse's remarriage bars further benefits7 while a child's marriage does not.

 LIFE INSURANCE

Government life insurance programs were created to provide life insurance at a “standard”

premium rate to members of the armed forces who are exposed to the extra hazards of military

service, including deadly hazards of war. Few commercial insurance companies offer

insurance that includes coverage against death while in the armed forces. Those that do,

charge a high premium rate because of the additional risk. Members leaving the armed forces

are eligible to maintain their VA insurance following discharge.

In general, a new life insurance program was created for each wartime period after World

War I. The following government life insurance programs are closed to the issuance of new

coverage but continue to have active policies. The “Years” column of the table indicates the

time period when VBA was authorized to issue coverage under the program.

 

7

 Public Law 106-117, signed on November 30, 1999, restores entitlement if a surviving spouse’s remarriage has been terminated by death or

divorce.
Chapter 1 Introduction

11

Insurance Programs That No Longer Issue Coverage

Program Years Maximum Coverage

United States Government Life Insurance (USGLI) 1919-1940 $10,000

National Service Life Insurance (NSLI) 1940-1951 $10,0001

Veterans Special Life Insurance (VSLI) 1951-1956 $10,0001

Veterans Reopened Insurance (VRI) 1965-1966 $10,0001

Table 1

1

 Since 1972, dividends can be used to increase coverage by purchasing paid-up additions to the basic insurance.

The following government life insurance programs continue to issue coverage. The “Year”

column indicates the date policies were first issued under each program.

Insurance Programs That Issue Coverage

Program Year Maximum Coverage

Service-Disabled Veterans Insurance (SDVI) 1951 $10,0001

Service members' Group Life Insurance (SGLI) 1965 $250,000

Veterans Mortgage Life Insurance (VMLI) 1971 $90,000

Veterans Group Life Insurance (VGLI) 1974 $250,000

Table. 2

1

 An additional $20,000 of supplemental coverage is available to totally disabled veterans.

HOME LOAN GUARANTY

The Loan Guaranty Program provides housing credit assistance to veterans and service

persons with the objective of enabling entry into the home-buying market. Assistance is

provided through the Government's partial guaranty of loans made by private lenders in lieu of

the substantial down payment and other investment safeguards required in conventional

mortgage transactions.

Veterans’ loans may be used:

• To purchase a home;

• To purchase a residential unit in certain condominium projects;

• To build a home;

• To refinance an existing home loan; or

• To improve a home by installing solar heating or other energy conservation

measures.
Chapter 1 Introduction

12

There is no maximum loan amount for a VA loan. Lenders set maximums based on rules of

the secondary market to which they sell their loans. The maximum VA guaranty is currently

$50,750 and lenders are usually willing to make a “no down-payment” loan of up to 4 times the

guaranty, or $203,000. Veterans pay a funding fee ranging from 1.25 percent to 3 percent of

the loan amount (0.5 percent for interest rate reduction loans). The funding fee can be

included in the loan. Veterans receiving VA compensation are exempt from paying the fee.

Since the program began in 1944, VA has guaranteed more than 16.6 million loans totaling

over $708 billion.

Severely disabled veterans, mostly those who are wheelchair bound, may obtain grants under

the specially adapted housing program. This program helps eligible veterans by using these

grants to buy, build or modify homes specifically adaptable for their use. These distinctive

housing needs may include:

• Wide doorways to accommodate wheelchairs,

• Ramps instead of steps, and

• Oversized specially equipped bathrooms

 Additionally, specially adapted housing grants are available for disabled veterans who are

either totally blind or have anatomical loss or loss of use of both hands.

VBA Loan Guaranty is also in the process of implementing the Native American Veteran Direct

VA Loan Program. This program will help our Native American Veterans in an effort to develop

positive working relationships with Native American groups and tribes, and relevant

government entities in fiscal year 2001. Loan Guaranty provides program information and

materials to all interested parties and to VA personnel. VA entered into a Memorandum of

Understanding (MOU) with 60 participating Native American tribes. During fiscal year 2001,

VA field offices closed 20 loans under this program. To date, VA has made 253 loans to

Native American veterans under this pilot program.

The table below shows a summary of eligibility criteria. In addition to these criteria, a veteran

must have been discharged or released from active duty under other than dishonorable

conditions. If the veteran served less than the minimum required period (See Table 3), he or

she could be eligible if discharged because of a service-connected disability.
Chapter 1 Introduction

13

Summary of Home Loan Guaranty Entitlements

Period of Service or Entitlement Service Dates Length of Service or Other Criteria

World War II 9/16/40 - 7/25/47 90 days

Post-World War II 7/26/47 - 6/26/50 181 continuous days

Korean War 6/27/50 - 1/31/55 90 days

Post-Korean War 2/1/55 - 8/4/64 181 continuous days

Vietnam Era 8/5/64 - 5/7/75 90 days

Post-Vietnam Era 5/8/75 - 9/7/80 181 continuous days

Enlisted 9/8/80 - 8/1/90 2 years

Officers 10/17/81 - 8/1/90 2 years

Gulf War Era 8/2/90 - 2 years; or period called to active duty, (not

less than 90 days)

Restored Entitlement Possible under certain situations

Service Personnel On active duty, after having served

continuously for at least 181 days (90 days for

Gulf War Era duty) unless discharged or

separated from a previous qualifying period of

active duty service

Reservists16 years

Un-Remarried Survivor Of an eligible veteran who died as a result of

service or service-connected conditions

Spouse of POW/MIA Active duty member who is missing in action

(MIA) or who is a prisoner of war (POW)

Table 3

1

 Entitlement expires on 9/30/03.

VOCATIONAL REHABILITATION AND EMPLOYMENT

The Vocational Rehabilitation and Employment (VR&E) Program helps veterans with serviceconnected disabilities become employable in order to obtain and maintain suitable

employment. When the severity of disability prohibits suitable employment, VR&E assists

those veterans achieve independence in daily living. Additionally, the VR&E program provides

educational and vocational counseling for eligible service members, veterans, and

dependents. The outcome of this counseling is to select an educational and vocational goal

and/or select an institution(s) of learning and training where the goal is pursued.

VR&E PROGRAM STATUTORY AUTHORITY

Vocational rehabilitation for service-connected disabled

veterans

38 U.S.C. Chapter 31

Vocational training and rehabilitation for Vietnam Veterans

children with spina bifida

38 U.S.C. Chapter 18

Vocational and educational counseling services are

provided under the following six authorities

38 U.S.C. Chapters 30, 32, 35, and 36;

10 U.S.C. Chapters 1606 and 107

Table 4
14

CHAPTER 2

BUSINESS DURING FISCAL YEAR 2001

 Summary Of Beneficiaries Entering All Benefits Program Rolls During

 Fiscal Year 2001

The following tables summarize information about the number of people who began receiving

a benefit during fiscal year 2001 and the monetary value of the benefits. Total annual amount

and average annual amounts reflected in the tables refer to fiscal year 2001 only.

Table 1 summarizes the benefits that pay a recurring monthly monetary amount.

Summary of Beneficiaries Who Began Receiving Benefits

for Programs That Pay Recurring Monthly Benefits

During Fiscal Year 2001

Benefit Programs Number

of People

Percent

of Total

Total

Annual Amounts

Paid in FY 2001

Average

Annual

Amounts Paid in

FY 2001

 Compensation - Disability 81,426 51.9% $484,049,996 $5,945

 Compensation - Death116,193 10.3% $176,413,293 $10,894

 Pension – Disability 39,477 25.2% $271,290,596 $6,872

 Pension – Death219,773 12.6% $71,377,743 $3,610

Total of All Programs 156,869 100.0% $1,003,131,627 $6,395

Table 1

1 This category represents the Dependency and Indemnity Compensation Program.

2

 Only includes Surviving Spouses.

Table 2 (found on the next page) summarizes the benefits that are paid on a monthly basis,

but only during a period of training attended by the person. The number of people receiving

Education benefits is the number of people who used their Education benefit for the first time

during fiscal year 2001. The number of people receiving the VR&E subsistence allowance

benefit (Chapter 31 benefit) is the number who were in an approved program of training during

fiscal year 2001 - not the number who used the benefit for the first time during fiscal year

2001. The annual amounts of money paid are not available at this time for Education or

VR&E.
Chapter 2 Business During FY 2001

15

Summary of Beneficiaries Who Began Receiving Benefits for

Programs That Pay Monthly Benefits During Training During

Fiscal Year 2001

Benefit Programs Number of

People

Percent of Total

Education 96,679 65%

Vocational Rehabilitation 52,402 35%

Total 149,081 100.0%

Table 2

Table 3 summarizes the benefits that provide for a payment if certain events occur, for

example, the death of the insured or default on a mortgage. For the Life Insurance program,

the coverage amount is the face value of the policies issued during fiscal year 2001. For

Home Loan Guaranty, the coverage amount is the guaranty obligations (not the value of the

underlying mortgages) established during fiscal year 2001. For the Life Insurance and Home

Loan Guaranty programs, the “Total Coverage Amounts” do not represent benefits actually

paid during the year.

Summary of Beneficiaries Who Obtained Coverage

During Fiscal Year 2001

Benefit Programs that Constitute Potential Liabilities

Benefit Programs Number of People Percent of

Total

Total Coverage

Amounts

Average

Coverage

Amounts

Life Insurance 394,572 61.2% $91,604,081,998 $232,161

Home Loan Guaranty 250,009 38.8% $9,153.835,567 $36,614

Total 644,581 100.0% $100,757,917,565 $268,775

Table 3
Chapter 2 Business During FY 2001

16

 Individual Data For Each Benefit Program

The following sections give specific information about each benefit program. The sections

describe the veterans, dependents, and survivors who began receiving benefits during fiscal

year 2001. This would include beneficiaries whose awards were stopped prior to the current

year but who reestablished eligibility during the year.

1. COMPENSATION -- BASED UPON SERVICE-CONNECTED DISABILITY

As in prior editions of this report, certain data relating to the rating of compensation claims in

this section have been generated from the Rating Board Automation (RBA) Database. This

database allows VBA to collect and provide essential information about the disposition and

demographics of veterans and their claims for compensation. In previous years, the RBA data

used to populate a number of the compensation tables in this section were based on a 60 and

70 percent sample of all ratings completed at the regional offices during the respective years.

For FY 2001, however, the sample is approximately 38 percent of the sample from the prior

years because of VBA’s conversion to the new RBA 2000 application. Linkage to the data

input by the field using RBA 2000 has not yet been perfected to the degree that will allow them

to replace the data previously collected through RBA.

Recognizing the value of this compensation information to report readers, VBA’s

Compensation and Pension Service and Data Management Office reviewed the data derived

from the smaller sample size to determine their adequacy for this year’s edition. These two

offices conducted a thorough analysis of the resulting data for FY 2001, which included a

comparison of these numbers with the prior three fiscal years. With a high level of

programmatic confidence, they determined the resulting data to be consistent, relevant and

informative. As such, the data from the RBA Database are included in nine of the tables in this

section, and are footnoted accordingly.

Disability compensation is payment for disabilities that the VA determines to have occurred

during or aggravated by a veteran’s military service (except when the disability resulted from

willful misconduct of the veteran). Only veterans (not dependents, survivors, or others) are

eligible to receive VA disability compensation. Disabilities are evaluated according to the VA

Schedule for Rating Disabilities in Title 38, Code of Federal Regulations, Part 4. The extent of

disability is expressed as a percentage from zero percent (for conditions that exist but are not

disabling to a compensable degree) to 100 percent, in increments of 10 percent.

The Rating Schedule is based on a “whole person” concept. This means that each disability is

evaluated for its disabling effect on the whole person. The range of disabling effects of a

specific disability on a person rarely includes every 10 percent increment from zero percent to

100 percent. For example, the Rating Schedule provides four possible evaluations for the

disabling effect of a disfiguring scar of the head, face, or neck: 0, 10, 30, or 50 percent,

according to the extent of the disfigurement. Active pulmonary tuberculosis, on the other hand,

is always rated 100 percent disabling.
Chapter 2 Business During FY 2001

17

a. Total Number of Veterans Who Began Receiving Disability Compensation During

Fiscal Year 2001

The following table shows data on veterans who began receiving disability

compensation during fiscal year 2001, total annual expenditures for those veterans, and

the average annual amount paid to these veterans.

Total Number of Veterans

Who Began Receiving Compensation

During Fiscal Year 2001

Number Total

Annual Amounts

Average

Annual Amounts

TOTAL 81,426 $484,049,996 $5,945

 Table 4

 Source: Benefits Delivery Network - COIN CP-127

b. Conditions Claimed and Disabilities Compensated Being Paid

This section shows information about:

• individual disabilities determined to be service-connected; and

• the combined degree of disability for veterans who began receiving compensation

payments during fiscal year 2001.

Number of Disabilities Per Claim

Any single application, original or subsequent, may include multiple disabilities to be

evaluated for service-connection. An “original” claim is the first application submitted by

a veteran. All claims submitted after resolution of the original application, whether they

involve re-evaluation of disabilities previously claimed or evaluation of new disabilities,

will be identified as “subsequent reopened claims” in this report. This table on the next

page shows the distributions (by percent) of the number of disabilities claimed in original

and subsequent reopened benefits applications. For example, 12.0 percent of original

applications rated during fiscal year 2001 claimed service connection for three individual

disabilities. The average, range, and median number of disabilities claimed are shown

at the bottom of the table.
Chapter 2 Business During FY 2001

18

Applications for Service-Connected Disability Compensation

by Number Of Disabilities Claimed for Fiscal Year 2001

Number of Disabilities Percent of Original

Claim Applications

Percent of Subsequent

Reopened Claim

Applications

1 21.1% 41.6%

2 16.5% 24.9%

3 12.0% 13.5%

4 9.4% 7.7%

5 7.9% 4.2%

6 6.2% 2.7%

7 4.5% 1.6%

8 5.1% 1.1%

9 3.8% 0.8%

10 3.0% 0.6%

11 thru 15 7.1% 0.9%

16 thru 20 2.2% 0.2%

21 thru 25 0.6% 0.0%

Over 25 0.4% 0.0%

Total 100.0% 100.0%

Average Number of

ddDDDDisabilities

5.0 2.5

Range of Disabilities 1 to 62 1 to 37

Median Number of Disabilities 4 2

Table 5

Source: RBA Database – Data Warehouse

Total Number of Service-Connected Individual Disabilities

Service-connected disabilities sorted by the percentage evaluation assigned to each

disability are provided on the next page. Data include veterans initially granted

compensation (based on either original or subsequent claims) and the average number

of service-connected disabilities per veteran for fiscal year 2001.

Note: “Zero percent” means that the disability exists and is related to the veteran’s service but

is not disabling to a degree that allows compensation. 8 The number of zero percent disabilities

shown in this table accounts only for those veterans who have individual disabilities rated zero

percent but who also receive compensation. This would occur when the veteran’s combined9

disability evaluation is 10 percent or greater, or when the veteran is entitled to payment under

one of the statutory provisions for specific disabilities; e.g. tuberculosis. Veterans who do not

receive compensation but have disabilities rated zero percent are not represented in the Tables

6 and 7.

 

8

 Service connection at zero percent entitles the veteran to medical treatment for the condition through the Veterans Health Administration.

9

 Combined disability evaluation is explained in the “note” on the next page.
Chapter 2 Business During FY 2001

19

Total Individual Service-Connected Disabilities by Percent for

Veterans Who Began Receiving Compensation During Fiscal Year

2001

Number of Disabilities Percent of All Disabilities

0% 96,823 36.6

10% 115,262 43.5%

20% 19,158 7.2%

30% 14,702 5.6%

40% 3,705 1.4%

50% 5,209 2.0%

60% 2,092 0.8%

70% 2,617 1.0%

80% 133 0.1%

90% 52 0.0%

100% 5,138 1.9%

Total 264,891 100.0%

Total Veterans 81,426

3.3

245,945

Average number of disabilities per

veteran

Number of Disabilities 0% thru 30%:

Percent of all Disabilities: 92.8%

 Table 6

 Source: Benefits Delivery Network - COIN CP-145 and COIN CP-127

Service-Connected Disabilities, by Combined Degree of Disability for Veterans

Who Began Receiving Compensation during Fiscal Year 2001

Combined degree of disability is expressed as a percentage and represents the overall

disabling effect on a veteran of all his or her service-connected disabilities. The

combined degree of disability determines the compensation payments. The following

table shows information about veterans who began receiving compensation during fiscal

year 2001 by the combined percentage of disability. The table also shows the total

annual amount and average annual amount of compensation paid to these veterans.

Note: “Percent of combined disability” is not calculated by summing all the individual degrees of

disability. Instead, a rating formula is applied to calculate the overall disabling effect of the

veteran’s service-connected disabilities. Under certain circumstances, a veteran with two or

more disabilities individually evaluated zero percent can still have 10 percent combined

disability and entitle the veteran to receive disability compensation (38 CFR 3.324). These will

be called “compensable zeros” and are shown in the 0% row of the next page.
Chapter 2 Business During FY 2001

20

Service-Connected Disabilities by Combined Percent for Veterans Who Began

Receiving Compensation During Fiscal Year 2001

Combined

Degree Number Percent of Total Total AnnualAmounts1

Average Annual

Amounts

0% 327 0.4% $275,151 $841

10% 25,161 30.9% $30,640,059 $1,218

20% 15,972 19.6% $37,295,898 $2,335

30% 12,785 15.7% $50,981,466 $3,988

40% 8,294 10.2% $47,578,365 $5,736

50% 5,976 7.3% $48,275,801 $8,078

60% 4,159 5.1% $57,374,736 $13,795

70% 3,230 4.0% $62,333,832 $19,298

80% 1,303 1.6% $28,436,724 $21,824

90% 529 0.6% $12,650,485 $23,914

100% 3,690 4.5% $108,207,479 $29,325

TOTAL 81,426 100.0% $484,049,996 $5,945

Number of Disabilities with Combined Percent 0%

thru 30%:

54,245

 Percent of All: 66.6%

Table 7

Source: Benefits Delivery Network - COIN CP-127

1 The total annual amounts of service-connected compensation for each combined degree is calculated by multiplying the Average

Benefit amount (derived from COIN CP-127) by 12 months, times the number of veterans who began receiving compensation during

fiscal year 2001.

c. Individual Service-Connected Disabilities by Body System

The following table shows all individual service-connected disabilities qualified by body

system for veterans compensated during fiscal year 2001. The table includes zero

percent disabilities only for those veterans who are in receipt of compensation benefits.

The body systems are shown in descending order of the number of disabilities found

service-connected within each system.

Ranking of Individual Service-Connected Disabilities by Body System for Veterans

Who Began Receiving Compensation During Fiscal Year 2001

Body System Total

Number

Percent of

Total

Body System Total

Number

Percent

of Total

Musculoskeletal System 110,520 41.7% Genitourinary System 6,270 2.4%

Impairment of Auditory Acuity 31,995 12.1% Endocrine System 5,918 2.2%

Skin 28,047 10.6% Eye 2,998 1.1%

Mental Disorders 16,065 6.1% Gynecological Conditions 2,285 0.9%

Digestive System 15,109 5.7% Infectious Diseases, Immune

Disorders, Nutritional Disorder

2,081 0.8%

Cardiovascular System 14,253 5.4% Dental and Oral Conditions 1,310 0.5%

Respiratory System 14,190 5.4% Hemic and Lymphatic Systems 923 0.3%

Neurological Conditions 12,927 4.9% Grand Total - All Conditions 264,891 100.0%

Table 8

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

21

d. Individual Service-Connected Disabilities by Diagnostic Code

During fiscal year 2001, 748 separate diagnostic codes were used in rating the 264,891

individual disabilities determined to be service-connected. Body system groupings are

displayed in VBA diagnostic code order. VA uses four-digit diagnostic code numbers that

signify specific medical conditions. These numeric diagnostic codes are in Title 38, Code

of Federal Regulations, Part 4. The following four-page table identifies the total number of

individual service-connected disabilities, grouped by body systems and percent of

disability assigned.
Chapter 2 Business During FY 2001

22

Total Individual Service-Connected Disabilities by Percent and Body Systems for

Veterans Who Began Receiving Compensation During Fiscal Year 2001

0% 10% 20%

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

32,485 29.4% 61,840 56.0% 11,201 10.1%

Eye

(Codes 6000-6099)

1,499 50.0% 833 27.8% 154 5.1%

Impairment of Auditory Acuity

(Codes 6100-6299)

12,001 37.5% 17,588 55.0% 764 2.4%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

1,743 83.8% 163 7.8% 26 1.2%

Respiratory System

(Codes 6501-6899)

7,104 50.1% 3,802 26.8% 24 0.2%

Cardiovascular System

(Codes 7000-7199)

2,918 20.5% 7,470 52.4% 1,294 9.1%

Digestive System

(Codes 7200-7399)

9,447 62.5% 4,237 28.0% 324 2.1%

Genitourinary System

(Codes 7500-7599)

3,203 51.1% 840 13.4% 509 8.1%

Gynecological Conditions

(Codes 7610-7699)

871 38.1% 326 14.3% 7 0.3%

Hemic and Lymphatic

Systems (Codes 7700-7799)

347 37.6% 90 9.8% 120 13.0%

Skin

(Codes 7800-7899)

20,443 72.9% 7,026 25.1% 73 0.3%

Endocrine System

(Codes 7900-7999)

299 5.1% 1,533 25.9% 3,459 58.4%

Neurological Conditions

(Codes 8000-8999)

2,947 22.8% 6,313 48.8% 1,094 8.5%

Mental Disorders

(Codes 9000-9599)

814 5.1% 2,743 17.1% 14 0.1%

Dental and Oral Conditions

(Codes 9900-9999)

702 53.6% 458 35.0% 95 7.3%

Grand Total - All Conditions

(Codes 5000-9999)

96,823 36.6% 115,262 43.5% 19,158 7.2%

Table 9

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

23

Total Individual Service-Connected Disabilities by Percent and Body Systems for

Veterans Who Began Receiving Compensation During Fiscal Year 2001

30% 40% 50%

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

1,722 1.6% 1,962 1.8% 146 0.1%

Eye

(Codes 6000-6099)

356 11.9% 49 1.6% 27 0.9%

Impairment of Auditory Acuity

(Codes 6100-6299)

571 1.8% 397 1.2% 250 0.8%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

42 2.0% 22 1.1% 2 0.1%

Respiratory System

(Codes 6501-6899)

1,689 11.9% 4 0.0% 585 4.1%

Cardiovascular System

(Codes 7000-7199)

1,595 11.2% 201 1.4% 7 0.0%

Digestive System

(Codes 7200-7399)

688 4.6% 56 0.4% 13 0.1%

Genitourinary System

(Codes 7500-7599)

341 5.4% 228 3.6% 0 0.0%

Gynecological Conditions

(Codes 7610-7699)

609 26.7% 24 1.1% 417 18.2%

Hemic and Lymphatic

Systems (Codes 7700-7799)

39 4.2% 9 1.0% 1 0.1%

Skin

(Codes 7800-7899)

424 1.5% 16 0.1% 56 0.2%

Endocrine System

(Codes 7900-7999)

48 0.8% 394 6.7% 3 0.1%

Neurological Conditions

(Codes 8000-8999)

1,569 12.1% 333 2.6% 264 2.0%

Mental Disorders

(Codes 9000-9599)

4,963 30.9% 6 0.0% 3,437 21.4%

Dental and Oral Conditions

(Codes 9900-9999)

46 3.5% 4 0.3% 1 0.1%

Grand Total - All Conditions

(Codes 5000-9999)

14,702 5.6% 3,705 1.4% 5,209 2.0%

Table 9

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

24

Total Individual Service-Connected Disabilities by Percent and Body Systems for

Veterans Who Began Receiving Compensation During Fiscal Year 2001

60% 70% 80%

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

657 0.6% 37 0.0% 6 0.0%

Eye

(Codes 6000-6099)

9 0.3% 24 0.8% 4 0.1%

Impairment of Auditory Acuity

(Codes 6100-6299)

98 0.3% 80 0.3% 59 0.2%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

49 2.4% 0 0.0% 0 0.0%

Respiratory System

(Codes 6501-6899)

299 2.1% 0 0.0% 0 0.0%

Cardiovascular System

(Codes 7000-7199)

498 3.5% 0 0.0% 2 0.0%

Digestive System

(Codes 7200-7399)

109 0.7% 6 0.0% 6 0.0%

Genitourinary System

(Codes 7500-7599)

148 2.4% 0 0.0% 21 0.3%

Gynecological Conditions

(Codes 7610-7699)

4 0.2% 0 0.0% 0 0.0%

Hemic and Lymphatic

Systems (Codes 7700-7799)

6 0.7% 7 0.8% 0 0.0%

Skin

(Codes 7800-7899)

0 0.0% 2 0.0% 1 0.0%

Endocrine System

(Codes 7900-7999)

97 1.6% 1 0.0% 1 0.0%

Neurological Conditions

(Codes 8000-8999)

112 0.9% 27 0.2% 33 0.3%

Mental Disorders

(Codes 9000-9599)

5 0.0% 2,433 15.1% 0 0.0%

Dental and Oral Conditions

(Codes 9900-9999)

1 0.1% 0 0.0% 0 0.0%

Grand Total - All Conditions

(Codes 5000-9999)

2,092 0.8% 2,617 1.0% 133 0.1%

Table 9

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

25

Total Individual Service-Connected Disabilities by Percent and Body Systems for

Veterans Who Began Receiving Compensation During Fiscal Year 2001

90% 100% Total

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

8 0.0% 456 0.4% 110,520 100.0%

Eye

(Codes 6000-6099)

8 0.3% 35 1.2% 2,998 100.0%

Impairment of Auditory Acuity

(Codes 6100-6299)

32 0.1% 155 0.5% 31,995 100.0%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

0 0.0% 34 1.6% 2,081 100.0%

Respiratory System

(Codes 6501-6899)

0 0.0% 683 4.8% 14,190 100.0%

Cardiovascular System

(Codes 7000-7199)

0 0.0% 268 1.9% 14,253 100.0%

Digestive System

(Codes 7200-7399)

0 0.0% 223 1.5% 15,109 100.0%

Genitourinary System

(Codes 7500-7599)

0 0.0% 980 15.6% 6,270 100.0%

Gynecological Conditions

(Codes 7610-7699)

0 0.0% 27 1.2% 2,285 100.0%

Hemic and Lymphatic

Systems (Codes 7700-7799)

0 0.0% 304 32.9% 923 100.0%

Skin

(Codes 7800-7899)

0 0.0% 6 0.0% 28,047 100.0%

Endocrine System

(Codes 7900-7999)

0 0.0% 83 1.4% 5,918 100.0%

Neurological Conditions

(Codes 8000-8999)

4 0.0% 231 1.8% 12,927 100.0%

Mental Disorders

(Codes 9000-9599)

0 0.0% 1,650 10.3% 16,065 100.0%

Dental and Oral Conditions

(Codes 9900-9999)

0 0.0% 3 0.2% 1,310 100.0%

Grand Total - All Conditions

(Codes 5000-9999)

52 0.0% 5,138 1.9% 264,891 100.0%

Table 9

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

26

e. Most Prevalent Service-Connected Disabilities

This section provides data about the most common disabilities found to be serviceconnected during fiscal year 2001.

By Body Systems

The next three pages show tables for the five disabilities most often found in proportion

to the total number of service-connected disabilities recorded within that body system.

The “Percent of Grand Total” is the frequency connected, by diagnostic code, within

each body system, during fiscal year 2001. The body systems are shown in descending

order by number of disabilities.

Note: The “Percent of System Total” is the frequency of service connection under each

diagnostic code as a of service connection under each diagnostic code as a proportion of the

total number of disabilities recorded under all body systems.
Chapter 2 Business During FY 2001

27

Most Common Service-Connected Disabilities within Body Systems for Veterans Who

Began Receiving Compensation During Fiscal Year 2001

Code Body System and Disability Total

Number

Percent of

System Total

Percent of

Grand Total

Musculoskeletal System 110,520 100.0% 41.7%

5299 Skeletal conditions 12,715 11.5% 4.8%

5010 Arthritis, due to trauma 12,047 10.9% 4.5%

5295 Lumbosacral strain 8,393 7.6% 3.2%

5293 Intervertebral disc syndrome 7,276 6.6% 2.7%

5257 Knee, other impairment of 5,859 5.3% 2.2%

Impairment of Auditory Acuity 31,995 100.0% 12.1%

6260 Tinnitus 15,740 49.2% 5.9%

6100 Auditory, acuity impairment, 0% 14,100 44.1% 5.3%

6200 Otitis media, suppurative, chronic 548 1.7% 0.2%

6211 Tympanic membrane, perforation of 488 1.5% 0.2%

6210 Auditory canal, disease of 211 0.7% 0.1%

Skin 28,047 100.0% 10.6%

7805 Scars, other19,787 34.9% 3.7%

7804 Scar, superficial, tender and painful on objective

demonstration

3,554 12.7% 1.3%

7806 Eczema 3,415 12.2% 1.3%

7899 Skin condition 3,092 11.0% 1.2%

7800 Scars, disfiguring, head, face, neck 2,665 9.5% 1.0%

Mental Disorders 16,065 100.0% 6.1%

9411 Post-traumatic stress disorder 10,060 62.6% 3.8%

9434 Major depressive disorder 1,771 11.0% 0.7%

9400 Generalized anxiety disorder 795 4.9% 0.3%

9432 Bipolar disorder 450 2.8% 0.2%

9433 Dysthymic disorder 403 2.5% 0.2%

Digestive System 15,109 100.0% 5.7%

7336 Hemorrhoids, external or internal 4,147 27.4% 1.6%

7346 Hernia, hiatal 2,656 17.6% 1.0%

7338 Hernia, inguinal 1,796 11.9% 0.7%

7399 Digestive system, disease of 1,477 9.8% 0.6%

7319 Irritable colon syndrome 808 5.3% 0.3%

Table 10

 Source: Benefits Delivery Network - COIN CP-145

1

38 CFR, Part 4, provides several diagnostic codes used in the evaluation of disabilities associated with scars. These include the following:

7800 - Disfiguring scars to the head, face, or neck; 7801 - Scars from 3rd degree burns; 7802 - Scars from 2nd degree burns; 7803 - Superficial

scars which are poorly nourished with repeated ulceration; 7804 - Superficial scars which are tender and painful on objective demonstration.

Other scars not covered under the above criteria are evaluated under diagnostic code 7805.
Chapter 2 Business During FY 2001

28

Most Common Service-Connected Disabilities within Body Systems for Veterans Who

Began Receiving Compensation During Fiscal Year 2001

Code Body System and Disability Total

Number

Percent of

System

Total

Percent of

Grand Total

Cardiovascular System 14,253 100.0% 5.4%

7101 Hypertensive vascular disease 6,502 45.6% 2.5%

7122 Cold injury residuals 3,135 22.0% 1.2%

7120 Varicose veins 1,319 9.3% 0.5%

7005 Arteriosclerotic heart disease 1,047 7.3% 0.4%

7000 Valvular heart disease 256 1.8% 0.1%

Respiratory System 14,190 100.0% 5.4%

6522 Allergic or vasometer rhinitis 2,665 18.8% 1.0%

6602 Asthma, bronchial 2,420 17.1% 0.9%

6513 Sinusitis maxillary, chronic 1,889 13.3% 0.7%

6502 Septum, nasal, deviation of 1,018 7.2% 0.4%

6847 Sleep apnea syndromes 983 6.9% 0.4%

Neurological Conditions and Convulsive Disorders 12,927 100.0% 4.9%

8100 Migraine 3,548 27.4% 1.3%

8515 Median nerve, paralysis of 1,803 13.9% 0.7%

8599 Peripheral nerve condition 832 6.4% 0.3%

8520 Paralysis of sciatic nerve 626 4.8% 0.2%

8045 Brain disease due to trauma 589 4.6% 0.2%

Genitourinary System 6,270 100.0% 2.4%

7528 Malignant neoplasm 1,498 23.9% 0.6%

7599 Genitourinary system condition 1,028 16.4% 0.4%

7527 Prostate gland injuries, infections, postoperative 963 15.4% 0.4%

7508 Nephrolithiasis 538 8.6% 0.2%

7522 Penis, deformity, with loss of erectile power 344 5.5% 0.1%

Endocrine System 5,918 100.0% 2.2%

7913 Diabetes mellitus 4,741 80.1% 1.8%

7903 Hypothyroidism 707 11.9% 0.3%

7900 Hyperthyroidism 191 3.2% 0.1%

7999 Endocrine system condition 88 1.5% 0.0%

7915 Neoplasm, benign 55 0.9% 0.0%

Table 10

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

29

Most Common Service-Connected Disabilities within Body Systems for Veterans Who

Began Receiving Compensation During Fiscal Year 2001

Code Body System and Disability Total

Number

Percent of

System Total

Percent of

Grand Total

Eye 2,998 100.0% 1.1%

6099 Eye Condition 431 14.4% 0.2%

6034 Eye, pterygium 278 9.3% 0.1%

6009 Eye, injury of, unhealed 242 8.1% 0.1%

6018 Eye, Conjunctivitis other, chronic 211 7.0% 0.1%

6013 Eye, Glaucoma, simple, primary, noncongestive 184 6.1% 0.1%

Gynecological Conditions 2,285 100.0% 0.9%

7618 Uterus, removal of, including corpus 488 21.4% 0.2%

7617 Uterus and ovaries, removal of, complete 379 16.6% 0.1%

7628 Benign neoplasms, gynecological or breast 219 9.6% 0.1%

7629 Endometriosis 189 8.3% 0.1%

7699 Gynecological condition or disorder of the breast 184 8.1% 0.1%

Infectious Diseases, Immune Disorders, and Nutritional

Deficiencies

2,081 100.0% 0.8%

6304 Malaria 1,543 74.1% 0.6%

6351 HIV-Related illness 107 5.1% 0.0%

6399 Infectious disease, immune disorder, nutritional deficiency 106 5.1% 0.0%

6350 Lupus erythematosus, systemic 78 3.7% 0.0%

6354 Chronic fatigue syndrome 76 3.7% 0.0%

Dental and Oral Conditions 1,310 100.0% 0.5%

9905 Temporomandibular articulation, limited motion 734 56.0% 0.3%

9999 Dental and oral conditions 252 19.2% 0.1%

9904 Mandible, malunion of 182 13.9% 0.1%

9913 Teeth, loss of, due to loss of body of maxilla or mandible 63 4.8% 0.0%

9916 Maxilla, malunion or nonunion 33 2.5% 0.0%

Hemic and Lymphatic Systems 923 100.0% 0.3%

7715 Non-Hodgkin's lymphoma 280 30.3% 0.1%

7700 Anemia, hypochromic-microcytic and megaloblastic 200 21.7% 0.1%

7706 Splenectomy 109 11.8% 0.0%

7709 Lymphoganulomatosis (Hodgkin's disease) 102 11.1% 0.0%

7799 Hemic and lymphatic system condition 97 10.5% 0.0%

Grand Total - All Body Systems 264,891 100.0% 100.0%

Table 10

Source: Benefits Delivery Network - COIN CP-145
Chapter 2 Business During FY 2001

30

By Disabilities Most Frequently Service-Connected

The next table shows the 20 disabilities most frequently found service-connected (by

diagnostic code) during fiscal year 2001.

Note: The “Percent Within System” column represents the frequency of service connection

under each diagnostic code as a proportion of all service-connected disabilities within the body

system. The “Percent of Total” column shows the frequency of service connection under each

diagnostic code as a proportion of all 264,891 disabilities found service-connected. The

“Cumulative Percent” column sums the percentages from the “Percent of Total” Column to

include the diagnostic code in that row and all preceding diagnostic codes. For example, the 20

most frequently service-connected disabilities (by diagnostic code) account for 54 percent of all

service-connected disabilities established in fiscal year 2001.

Disabilities Most Frequently Service-Connected

for Veterans Who Began Receiving Compensation

During Fiscal Year 2001

Diagnostic

Code

Disability Total Percent

Within System

FY 2001

Percent of

Total

FY 2001

Cumulative

Percent

FY 2001

6260 Tinnitus 15,740 49.2% 5.9% 5.9%

6100 Auditory, acuity impairment,

0%

14,100 44.1% 5.3% 11.3%

5299 Skeletal conditions 12,715 11.5% 4.8% 16.1%

5010 Arthritis, due to trauma 12,047 10.9% 4.5% 20.6%

9411 Post-traumatic stress disorder 10,060 62.6% 3.8% 24.4%

7805 Scars, other19,787 34.9% 3.7% 28.1%

5295 Lumbosacral strain 8,393 7.6% 3.2% 31.3%

5293 Intervertebral disc syndrome 7,276 6.6% 2.7% 34.0%

7101 Hypertensive vascular

disease

6,502 45.6% 2.5% 36.5%

5257 Knee, other impairment of 5,859 5.3% 2.2% 38.7%

5271 Ankle, limited motion of 5,149 4.7% 1.9% 40.6%

5003 Arthritis, degenerative 5,121 4.6% 1.9% 42.6%

7913 Diabetes mellitus 4,741 80.1% 1.8% 44.4%

5024 Tenosynovitis 4,521 4.1% 1.7% 46.1%

7336 Hemorrhoids, external or

internal

4,147 27.4% 1.6% 47.6%

7804 Scars, superficial, tender,

painful

3,554 12.7% 1.3% 49.0%

8100 Migraine 3,548 27.4% 1.3% 50.3%

7806 Eczema 3,415 12.2% 1.3% 51.6%

5260 Limited flexion of knee 3,235 2.9% 1.2% 52.8%

7122 Cold injury residuals 3,135 22.0% 1.2% 54.0%

Total Number of Disabilities

In FY 2001

264,891

Table 11

Source: Benefits Delivery Network - COIN CP-145

1

 See footnote for Table 10 of this chapter.
Chapter 2 Business During FY 2001

31

f. Demographic Characteristics of Veterans with Service-Connected Disabilities

The tables in this section present information about veterans with disabilities found

service-connected on original and in some cases subsequent reopened claims during

fiscal year 2001 in the following categories:

• Age

• Gender

• Race

• Period of Service

• Length of Service.

Most of the information in this segment is collected from the RBA Database, in

conjunction with data provided by the Defense Manpower Data Center (DMDC) on

service members recently discharged.

Note: As available from DMDC, the following table includes comparable demographic

information about military separations during fiscal year 2000. Not all original claims rated

during the fiscal year were filed by veterans who were discharged during the same period.

However, the information forms a basis for comparison.

By Age

The distribution by age among veterans who began receiving compensation during FY

2001 is shown below. Also shown is the age distribution of service members

discharged from active duty (i.e., new veterans) during FY 2000.

Service-connected Compensation by Age for Veterans Who Began Receiving

Compensation During FY 2001

Age Number of

Veterans

Percent of All

Ages

Number of

Discharges

in FY 2000 1

Percent of

Discharges

in FY 2000

Annual

Payments2

Under 25 5,872 7.2% 95,681 50.5% $34,907,052

25 - 35 16,857 20.7% 61,932 32.7% $100,209,157

36 - 45 20,716 25.4% 25,772 13.6% $123,149,605

46 - 55 18,735 23.0% 5,543 2.9% $111,373,231

56 - 65 8,138 10.0% 257 0.1% $48,377,654

66 - 75 5,520 6.8% 196 0.1% $32,814,531

Over 75 5,588 6.9% 0 0.0% $33,218,768

All Ages 81,426 100.0% 189,381 100.0% $484,049,996

Table 12

Source: Benefits Delivery Network - COIN CP-127

Source: Defense Manpower Data Center Activity Duty Loss Profile

1

 Discharge data for FY 2001 is not yet available from DMDC

2

 The total annual amounts of service-connected compensation for each age group is calculated by multiplying the percentage of veterans for

each age group by the total annual amounts, which have been calculated using average benefit indicated on COIN CP-127.
Chapter 2 Business During FY 2001

32

By Gender

The distributions by gender of veterans granted service connection (whether compensable

or not) during fiscal year 2001 based upon original and subsequent reopened claims

follow. Also shown is the gender distribution of service members discharged from active

duty during fiscal year 2000.

Service-Connected Disability

Original and Subsequent Reopened Claims Granted by Gender

During Fiscal Year 2001

Female Male Total

Percent of Original Claims Granted115.8% 84.2% 100.0%

Percent of Subsequent Reopened Claims Granted16.9% 93.1% 100.0%

Percent of Service Members Discharged in FY

20002

16.6% 83.4% 100.0%

Table 13

1Source: RBA Database - Data Warehouse

2Source: Defense Manpower Data Center "Officer and Enlisted Losses by Type" Report

 Discharge data for FY 2001 is not yet available from DMDC

By Race

The distributions by race (where known) of veterans granted service connection

(whether compensable or not) during fiscal year 2001 based upon original and

subsequent reopened claims are shown in the following table. Also shown is the race

distribution among service members discharged from active duty during fiscal year

2000.

Service-Connected Disability Original and Subsequent

Reopened Claims Granted by Race

During Fiscal Year 2001

Race Percent of

Original Claims

Granted1

Percent of

Subsequent

Reopened Claims

Granted1

Percent of

Service Members

Discharged in

Fiscal Year 20002

White 67.2% 63.1% 68.0%

Black 21.3% 29.1% 18.2%

Hispanic 6.1% 3.0% 8.0%

Asian/Pacific Islander 2.1% 2.2% 3.0%

American Indian/Alaskan 0.7% 0.8% 1.2%

Other 2.7% 1.8% 1.6%

Total 100.0% 100.0% 100.0%

Table 14

1Source: RBA Database - Data Warehouse

2Source: Defense Manpower Data Center “Active Duty Loss Profile”

Discharge data for FY 2001 is not yet available from DMDC
Chapter 2 Business During FY 2001

33

By Period of Service

The next table shows the distributions by period of service of veterans granted service

connection (whether compensable or not) during fiscal year 2001 based upon original

and subsequent reopened claims. When the data were collected for this table this year,

the peacetime category was better defined than in prior years.

Service-Connected Disability Original and Subsequent

Reopened Claims Granted by Period of Service

During Fiscal Year 2001

Period of Service Percent of

Original Claims

Percent of

Subsequent Reopened

Claims

World War I 0.0% 0.0%

World War II 2.2% 12.6%

Korean War 1.2% 4.2%

Vietnam Era 7.2% 25.3%

Gulf War Era 67.2% 21.3%

Peacetime 22.2% 36.5%

All Periods 100.0% 100.0%

Table 15

Source: RBA Database – Data Warehouse

By Length of Service

The next table shows the distributions by length of service of veterans granted service

connection (whether compensable or not) during fiscal year 2001 based upon original

and subsequent reopened claims.

Service-Connected Disability Claims Granted by Length of

Service During Fiscal Year 2001

Years of

Service

Percent of

Original Claims

Granted

Percent of Subsequent

Reopened Claims

Granted

Less than 1 3.3% 3.9%

1 – 3 27.1% 50.6%

4 – 9 18.3% 18.2%

10 – 14 8.7% 6.6%

15 – 19 4.8% 4.1%

20 – 24 21.5% 11.7%

25 – 29 3.7% 2.5%

30 – 34 1.8% 1.0%

35 – 39 0.5% 0.1%

40 and over 10.4% 1.2%

Total 100.0% 100.0%

Table 16

Source: RBA Database – Data Warehouse
Chapter 2 Business During FY 2001

34

g. Original and Subsequent Claims

Claims Received and Completed

The following table shows the number of original and subsequent reopened claims

received and completed during fiscal year 2001.

For administrative purposes, original claims are assigned to one of two categories

according to the number of disabilities presented for evaluation of service connection:

(1) one to seven disabilities; or (2) eight or more disabilities.

Original and Subsequent Disability Compensation Claims

During Fiscal Year 2001

Type of Claim Number

Received

Percent of

Grand Total

Received

Number

Completed

Percent of

Grand Total

Completed

Original Compensation – 1 to 7 Issues 115,223 21.7% 67,677 19.4%

Original Compensation – 8 or More Issues 22,776 4.3% 18,872 5.4%

 TOTAL 137,999 26.0% 86,549 24.9%

Subsequent Reopened Compensation 392,869 74.0% 261,583 75.1%

GRAND TOTAL 530,868 100.0% 348,132 100.0%

Table 17

Source: Benefits Delivery Network – COIN DOOR 1001

Subsequent Reopened Compensation Claims By Age of the Veteran

The next table shows the age distribution of subsequent reopened compensation claims for which rating 

decisions were completed during fiscal year 2001.

Subsequent Reopened Compensation Claims Decided

by Rating During FY 2001 by Age of the Veteran1

Age Percent of Claims

Less than 20 0.0%

20-24 0.9%

25-29 3.3%

30-34 4.9%

35-39 5.1%

40-44 8.9%

45-49 10.5%

50-54 16.1%

55-59 12.5%

60-69 12.7%

70-79 15.9%

80+ 9.2%

Total 100.0%

Table 18

Source: RBA Database – Data Warehouse

1Data only represents those cases where the age of the veteran is shown in

the RBA Database
Chapter 2 Business During FY 2001

35

h. Grants and Denials for Service-Connected Disability Claims

By Individual Disabilities Claimed

The following table shows the percentages of grants and denials of service connection

for individual disabilities for original claims. In a single claim for compensation, a

veteran may request service-connection for multiple disabilities and these become the

multiple issues in that original claim. Table 5 of this chapter shows a range of

disabilities claimed (issues raised) from one to 62, with an average of five. Table 22

that follows provides a different perspective of the disposition of original claims by

grouping the multiple disabilities (or issues) with the discrete veterans filing the claims.

Service-Connected Disability Original Claims

Grants and Denials by Individual Disabilities Claimed During

Fiscal Year 2001

Percent

Grants 56.0%

Denials 44.0%

Total 100.0%

Table 19

Source: RBA Database – Data Warehouse

Service-Connected Disability Compensation by Disability Percentage

The next table provides the distribution of percentages assigned among all disabilities

determined to be service-connected. Depicted are all zero percent service-connected

evaluations, whether compensable or not.

Service-Connected Disability

Original Claims Grants by Individual Disability

During Fiscal Year 2001

Disability Percent Percent Granted

0% 48.3%

10% 40.1%

20% 5.1%

30% 3.3%

40% 0.9%

50% 0.9%

60% 0.4%

70% 0.2%

80% 0.0%

90% 0.0%

100% 0.8%

Total 100.0%

Table 20

Source: RBA Database – Data Warehouse
Chapter 2 Business During FY 2001

36

By Claim

The percentages of grants and denials of original claims for service-connection follow.

As previously noted in the report, veterans may claim more than one disability in an

application for compensation. Information in the table below reflects three categories of

claims outcomes for original claims – all claimed disabilities were found serviceconnected (granted); all claimed disabilities were found not service-connected (denied);

or some combination of granted and denied. This perspective of the disposition of

claims contrasts with that provided in Tables 5 and 19 of this chapter, which displays

the disposition of the individual disabilities, claimed (issues raised).

Service-Connected Disability Original Claims Granted or

Denied During Fiscal Year 2001

Percent

Veterans Who Had All Issues Claimed Granted 20.5%

Veterans Who Had All Issues Claimed Denied 22.7%

Veterans Who Had A Combination of Issues Granted and Denied 56.8%

Total 100.0%

Table 21

Source: RBA Database
Chapter 2 Business During FY 2001

37

2. COMPENSATION – BASED UPON SERVICE-CONNECTED DEATH

Dependency and Indemnity Compensation (DIC) is a monetary death benefit for survivors of

certain deceased veterans or service members. DIC is payable to surviving spouses, children,

and/or dependent parents of the following:

• Service members who die during military service of causes that are not due to the

person’s willful misconduct;

• Veterans who die of a service-connected disease or injury

• Veterans who die from a non service-connected disability but who were continuously

rated 100 percent disabled for service-connected disabilities for at least 10 years

immediately preceding death (or at least five years from the date of discharge to the

date of death)10

• Veterans who are former POWs who die after September 30, 1999, and were

continuously rated 100 percent for service-connected disabilities for a period of not less

than one year immediately preceding death.11

Congress changed the law for payments to DIC surviving spouses for deaths occurring on or

after January 1, 1993. “Protected DIC” refers to payments made for deaths that occurred prior

to January 1, 1993. Payments under Protected DIC were based on the deceased veteran’s

pay grade. “Reformed DIC” refers to payments made for deaths occurring on or after January

1, 1993. Reformed DIC pays a standard fixed rate. An additional amount is added if the

veteran was rated totally disabled for eight years immediately preceding death. Surviving

spouses entitled to DIC under the protected program will be paid the reformed DIC fixed rate

(including the additional amount, if applicable) if it is a greater benefit.

a. Beneficiaries Who Began Receiving DIC during Fiscal Year 2001

The next table shows the number of surviving spouses, children (those not included as

dependents in a surviving spouse’s award), and dependent parents initially receiving

DIC benefits during fiscal year 2001. The table also identifies the total annual amount

and the average annual amount of DIC benefits paid to these survivors.

Total Beneficiaries Who Began Receiving Dependency and Indemnity

Compensation (DIC) During fiscal Year 2001

Type of Benefit Number Percent of

Total

Total

Annual Amounts

Average

Annual Amounts

Surviving Spouses 14,289 88.2% $169,398,154 $11,855

Surviving Children 1,737 10.7% $6,634,069 $3,819

Surviving Parents 167 1.0% $381,069 $2,282

TOTAL 16,193 100.0% $176,413,292 $10,894

Table 22

Source: Benefits Delivery Network - COIN CP-127

 

10 38 U.S.C. 1318

11 Section 501 of P. L. 106-117 enacted on November 30, 1999
Chapter 2 Business During FY 2001

38

b. Demographic Characteristics of Beneficiaries Who Began Receiving DIC during

Fiscal Year 2001

The following tables present information in the following categories about beneficiaries

who began receiving DIC benefits during fiscal year 2001:

• Age of surviving spouses

• Status categories of children

• Marital status of surviving parents.

By Age of Surviving Spouses

The next table shows the age distribution among surviving spouse DIC beneficiaries.

Surviving Spouses Who Began Receiving DIC by Age

During Fiscal Year 2001

Age Number Percent of All

Ages

Annual

Payments

Under Age 25 72 0.5% $827,527

25 – 35 263 1.8% $3,023,352

36 – 45 686 4.8% $7,978,883

46 – 55 1,938 13.6% $22,763,067

56 – 65 2,478 17.3% $29,410,875

66 – 75 3,685 25.8% $44,188,999

Over 75 5,167 36.2% $61,205,452

All Ages 14,289 100.0% $169,398,154

Table 23

Source: Benefits Delivery Network – COIN CP 127
Chapter 2 Business During FY 2001

39

By Age of Children

The following table shows the distribution of DIC children who are not in the custody of

a surviving spouse in two age categories: those over age 18 and those under age 18.

Children over age 18 are shown according to their beneficiary status: Those eligible to

receive DIC because of school attendance and those eligible because they are

helpless.

Children Who Began Receiving DIC by Age

During Fiscal Year 2001

Under Age 181 Age 18 and

Over in School

Age 18 and Over

and Helpless

Total All

Categories

 Number 479 1086 172 1,737

Percent 27.6% 62.5% 9.9% 100.0%

Annual Payments $2,436,793 $3,175,638 $1,021,639 $6,634,069

Table 24

Source: Benefits Delivery Network – COIN CP-127

1 Includes 248 consolidated awards that account for more than one child.

By Marital Status of Surviving Parents

The marital status of a surviving parent determines how he or she is paid DIC. Marital

status categories and their definitions follow:

• No Spouse – one parent is alive and has no spouse;

• Spouse – both parents are alive and married to other persons;

• Apart – both parents are alive and are not living together;

• Together – both parents are alive and living together; or

• Remarried – one parent is alive and has remarried.

The distribution of marital status among surviving dependent parents is shown in the

next table.

Surviving Parents Who Began Receiving DIC by Marital Status

During Fiscal Year 2001

No

Spouse

Spouse Apart Together Remarried Total

Number 117 4 17 26 3 167

Percent 70.1% 2.4% 10.2% 15.6% 1.8% 100.0%

Annual Payments $309,708 $7,185 $32,401 $27,927 $3,847 $381,069

Table 25

Source: Benefits Delivery Network - COIN CP-127
Chapter 2 Business During FY 2001

40

3. PENSION -- BASED UPON NONSERVICE-CONNECTED DISABILITY

a. Veterans Who Began Receiving Disability Pension During Fiscal Year 2001

The number of veterans added to the disability pension rolls during fiscal year 2001 is

shown in the next table. The table also shows the total annual amount and the average

annual amount of disability pension payments.

Note: The table groups the two older pension programs into one category called “Other

Pensions.” No original claims can be granted under the two protected, or “grandfathered,”

pension programs. However, former beneficiaries under these programs can have their benefits

restored if they meet certain income and eligibility criteria.

Veterans Who Began Receiving Disability Pension by Program

During Fiscal Year 2001

Type of Pension Number of

Veterans

Percent of

Total

Total Annual

Amounts

Average Annual

Amounts

PL 95-588 - New Law Pension 39,429 99.9% $271,222,628 $6,879

Other Pension Programs 48 0.1% $67,968 $1,416

TOTAL 39,477 100.0% $271,290,596 $6,872

Table 26

Source: Benefits Delivery Network - COIN CP-103

b. Demographic Characteristics of Veterans Who Began Receiving Disability

Pension During Fiscal Year 2001

By Age

The age distribution among veterans who began receiving disability pension in fiscal

year 2001 in the table below. The total annual amount of disability pension payments

for each age group is shown in the last column of the table.

Veterans Who Began Receiving Disability Pension by Age During Fiscal Year 2001

Other Pension1 New Law Pension All Pension

Programs

Age Number Percent of

All Ages

Number Percent of

All Ages

Total For

Age Group

Percent

of All

Ages

Annual

Payments

Under Age 25 0 0.0% 23 0.1% 23 0.1% $158,211

25 - 35 0 0.0% 281 0.7% 281 0.7% $1,932,932

36 - 45 0 0.0% 956 2.4% 956 2.4% $6,576,095

46 - 55 1 2.1% 12,627 32.0% 12,628 32.0% $86,859,519

56 - 65 3 6.3% 5,158 13.1% 5,161 13.1% $35,484,892

66 - 75 17 35.4% 8,163 20.7% 8,180 20.7% $56,175,390

Over 75 27 56.3% 12,221 31.0% 12,248 31.0% $84,103,558

All Ages 48 100.0% 39,429 100.0% 39,477 100.0% $271,290,596

Table 27

Source: Benefits Delivery Network - COIN CP-103

1

 The “Other Pension” category groups the two older pension programs (Protected Pension and Section 306 Pension) into one

category
Chapter 2 Business During FY 2001

41

4. PENSION -- BASED UPON NONSERVICE-CONNECTED DEATH

a. Beneficiaries Who Began Receiving Death Pension During Fiscal Year 2001

The number of surviving spouses added to the death pension rolls during fiscal year

2001 is shown in the next table (found on the next page) The table also shows the total

annual amount and the average annual amount of death pension payments.

Note: The table groups the two older pension programs into one category called “Other

Pensions.” Original claims can no longer be granted under the two older pension programs.

However, survivors whose awards were previously stopped can be reinstated if they meet

certain income and entitlement criteria.

Surviving Spouses Who Began Receiving Death Pension by Program

During Fiscal Year 2001

Type of Pension Number of

Surviving

Spouses

Percent of

Total

Total Annual

Amounts

Average Annual

Amounts

PL 95-588 - New Law Pension 19,739 99.8% $71,344,642 $3,614

Other Pension Programs 34 0.2% $33,101 $974

TOTAL 19,773 100.0% $71,377,743 $3,610

Table 28

Source: Benefits Delivery Network - COIN CP-103

b. Age Distribution of Surviving Spouses Who Began Receiving Death Pension

During Fiscal Year 2001

The next table shows the distribution among surviving spouses who began receiving

death pension in fiscal year 2001 by age groups.

Surviving Spouses Who Began Receiving Death Pension by Age

During Fiscal Year 2001

Other Pension1 New Law Pension All Pension Programs

Age Number Percent of

All Ages

Number Percent of

All Ages

Total For

Age Group

Percent of

All Ages

Annual Payments

Under Age 25 0 0.0% 52 0.3% 52 0.3% $187,949

25 - 35 0 0.0% 66 0.3% 66 0.3% $238,550

36 - 45 0 0.0% 573 2.9% 573 2.9% $2,071,051

46 - 55 2 5.9% 2,234 11.3% 2,236 11.3% $8,076,517

56 - 65 3 8.8% 2,830 14.3% 2,833 14.3% $10,231,673

66 - 75 6 17.6% 4,490 22.7% 4,496 22.7% $16,234,497

Over 75 23 67.6% 9,494 48.1% 9,517 48.1% $34,337,505

All Ages 34 100.0% 19,739 100.0% 19,773 100.0% $71,377,743

Table 29

 Source: Benefits Delivery Network - COIN CP-103

 1 The “Other Pension” category groups the two older pension programs (Protected Pension and Section 306 Pension) into one category.
Chapter 2 Business During FY 2001

42

5. EDUCATION

a. Beneficiaries Who Began Receiving Education Benefits During Fiscal Year

2001

The number of veterans, dependents, service members and reservists that began

receiving education benefits for the first time during fiscal year 2001 is shown in the

following table.

Beneficiaries Who Began Receiving Education Benefits

During Fiscal Year 2001

Program Number of

Beneficiaries

Percent

of Total

Dependents Education 6,328 6.5%

Montgomery GI Bill - Active Duty167,621 69.9%

Montgomery GI Bill – Reserves222,469 23.2%

Post-Vietnam Veterans Education 261 0.3%

Total 96,679 100.0%

Table 30

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve

b. Characteristics of the Training Being Pursued By Beneficiaries

By Type of Training

The distribution, by program, of the types of training of beneficiaries who began using

their education benefit, for the first time, during fiscal year 2001 follows.

Beneficiaries Who Began Receiving Education Benefits by Type of Training and

Program During Fiscal Year 2001

Education Program College

Non-Degree

Graduate UnderGraduateVocational/

Technical

Program

Totals

Percent

of All

Programs

Dependents Education 200 155 5,370 603 6,328 6.5%

Montgomery GI Bill - Active Duty12,607 2,900 56,066 6,048 67,621 69.9%

Montgomery GI Bill – Reserves2395 669 20,758 647 22,469 23.2%

Post-Vietnam Veterans Education 10 37 189 25 261 0.3%

Type Training Total 3,212 3,761 82,383 7,323 96,679 100.0%

Percent of Program Total 3.3% 3.9% 85.2% 7.6%

Table 31

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve
Chapter 2 Business During FY 2001

43

By Training Time

The following chart shows the distribution, by program, of the training times of the

beneficiaries who began using their education benefit for the first time during

fiscal year 2001.

Beneficiaries Who Began Receiving Education Benefits by Training Time and

Program During Fiscal Year 2001

Education Program Less Than

One-Half

Time

Half

Time

Three

Quarter

Time

Full

Time

Program

Totals

Percent

of All

Program

s

Dependents Education 291 668 655 4,714 6,328 6.5%

Montgomery GI Bill - Active Duty14,528 10,880 8,243 43,970 67,621 69.9%

Montgomery GI Bill – Reserves2974 2,392 2,343 16,760 22,469 23.2%

Post-Vietnam Veterans Education 46 61 25 129 261 0.3%

Training Time Total 5,839 14,001 11,266 65,573 96,679 100%

Percent of Program Total 6.0% 14.5% 11.7% 67.8%

Table 32

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve

6. LIFE INSURANCE

a. Coverage Established During Fiscal Year 2001

There are four government life insurance programs in which new coverage is issued.

Note: Throughout the Insurance program sections of this report, the term “face value” means

the amount of money that would be paid upon the death of the veteran. For some policies, the

face value can exceed the basic amount of the policy (which is usually $10,000) because of the

option of using

They are:

• Veterans Mortgage Life Insurance (VMLI)

• Service-Disabled Veterans Insurance (SDVI)

• Veterans Group Life Insurance (VGLI)

• Service members’ Group Life Insurance (SGLI).
Chapter 2 Business During FY 2001

44

The table that follows identifies the number of new policies issued during fiscal year

2001, the total face value of the policies, and the average face value of the policies.

In the case of SGLI, the military services maintain the records on insured service

members. The actual number of service members who enrolled in SGLI in fiscal year

2001 is not known. The information shown in this table is estimated based upon current

enrollment rates and the number of people who entered active military service during

fiscal year 2001.

New Insurance Coverage Issued

During Fiscal Year 2001

Insurance Number of

People Insured

Total

Coverage Amount

Average

Face Value

Maximum

Face Value

VMLI1158 $13,164,322 $83,318 $90,000

SDVI24,731 $53,571,753 $11,324 $10,0003

VGLI441,128 $6,097,710,000 $148,262 $250,0006

SGLI5348,555 $85,439,635,923 $245,125 $250,0006

TOTAL 394,572 $91,604,081,998 $232,160

Table 33

1

 Source: VMLI Quarterly Report

2

 Source: Insurance Master Record Database - 510 Monthly Report

3 Additional coverage, up to $20,000, is available for totally disabled policyholders. 992 new Supplemental SDVI policies

were issued.

4 Source: Veterans And Reservists Group Insurance System - OSGLI Monthly Report. VGLI data is for the policy year

ending June 30, 2001.

5 Estimates based upon accessions to Active Duty and Reserve forces in FY01. Data on accessions from Defense

Manpower Data Center.

6

 Effective April 1, 2001, the maximum coverage for VGLI and SGLI increased to $250,000.

The table that follows also displays information about new insurance coverage but

provides the data for the prior three years as well for purposes of comparison.

New Insurance Coverage Issued

Comparative Information for Four Fiscal Years

FY 2001 FY 2000 FY 1999 FY 1998

Number of People

 Insured

394,572 285,765 268,353 331,312

Total Coverage

 Amounts

$91,604,081,998 $50,426,291,177 $47,155,855,903 $59,531,024,898

Average Face Values $232,160 $176,461 $175,723 $179,683

 Table 33A

b. Insurance Payments Made During Fiscal Year 2001

Dividends, loans and disability payments are made on some government life insurance

policies. These are payments made from active policies to the veteran policyholder.

The following table shows data concerning the payments made during fiscal year 2001.
Chapter 2 Business During FY 2001

45

Note: Payments of death claims, cash surrenders and matured endowments end the policy.

See Table 67 of this chapter concerning “Benefits That Ended During Fiscal Year 2001” for data

in these categories of payments.

Insurance Payments Made During Fiscal Year 2001

Dividends Number1 Amount2 Average Payment

USGLI 16,280 $3,266,385 $201

NSLI 1,715,536 $551,054,524 $321

VSLI 242,608 $93,471,753 $385

VRI 77,638 $20,164,873 $260

TOTAL 2,052,062 $667,957,535 $326

Loans Number3,4 Amount5 Average Payment

USGLI 60 $128,361 $2,139

NSLI 13,872 $59,559,875 $4,294

VSLI 3,798 $11,299,845 $2,975

VRI 1,059 $3,059,274 $2,889

SDVI 9,674 $8,044,091 $832

TOTAL 28,463 $82,091,446 $2,884

Disability Number6 Amount7 Average Payment

USGLI 85 $49,027 $577

NSLI 18,101 $20,022,533 $1,106

VSLI 3,170 $4,404,796 $1,390

VRI 910 $645,463 $709

TOTAL 22,266 $25,121,819 $1,128

GRAND TOTAL 2,102,791 $775,170,800 $369

Table 34

1

 Source: Insurance Master Record Database - Insurance Statistical Report-700

2

 Source: Insurance General Ledger Accounting System - FY01 Statement of Cash Flows

3

 Source: Program numbers from an estimate based on a sample of loans from SQC in FY01 and a percent of

the total.

4

 Source: Program totals from Insurance Master Record Database - COIN 84 and Philadelphia MTC Records

Report-155

5

 Source: Insurance General Ledger Accounting System - Statement of Financial Condition Report

6

 Source: Insurance Master Record Database - 510 Monthly Report

7

 Source: Insurance General Ledger Accounting System - CFO FY01 Life Insurance Statements (Incurred

Basis)

The table that follows also displays information about dividend payments made but

provides the data for the prior three years as well for purposes of comparison.

Insurance Dividends Payments

Comparative Information for Four Fiscal Years

FY 2001 FY 2000 FY 1999 FY 1998

Number 2,052,062 2,136,512 2,254,469 2,372,303

Total Amounts $667,957,535 $717,236,383 $761,006,313 $825,364,169

Average Payments $326 $336 $338 $348

Table 34A
Chapter 2 Business During FY 2001

46

7. HOME LOAN GUARANTY

a. Total Loans Guaranteed

The following table shows the number of home loans guaranteed during fiscal year

2001, the total loan value, and the average value of a loan involved in the guaranty

program.

Loans Guaranteed During Fiscal Year 2001

Number of

Loans

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

TOTAL 250,009 $31,254,954,728 $125,015 $9,153,835,567 $36,614

Table 35

Source: LGY SAS File

Note: The guaranteed amount is less than the entire loan amount. Therefore, the table also

shows the total value of the guaranties involved and the average value of a guaranty.

b. Types of Loans Guaranteed during Fiscal Year 2001

Loans Guaranteed During Fiscal Year 2001

Based on Purchase Loan Versus Refinance Loans

Type of Loan Number

of

Loans

Percent

of

Total

Total

Loan

Amount

Avg.

Loan

Amount

Total

Guaranty

Amount

Avg.

Guaranty

Amount

Avg.

Interest

Purchase Loans 177,158 70.9% $22,051,891,703 $124,476 $6,490,422,813 $36,636 7.58%

Refinance –

Interest Rate

Reduction

67,696 27.1% $8,623,962,326 $127,392 $2,492,605,852 $36,821 6.98%

Refinance -

Other Reasons

5,155 2.1% $579,100,699 $112,338 $170,806,902 $33,134 7.42%

TOTAL 250,009 100.0% $31,254,954,72

8

$125,015 $9,153,835,56

7

$36,614 7.41%

Table 36

Source: LGY SAS File

Note: The three types of loans shown are defined by the purpose of the loan. A “Purchase

Loan” is a loan obtained for the purchase of a home. The other two types of loans are obtained

to refinance an existing mortgage. Refinancing to reduce the interest rate is shown as a

separate item because it is the most common reason for refinancing a loan.
Chapter 2 Business During FY 2001

47

c. Specially Adapted Housing Grants and Direct Loans to Native American

Veterans

The following table shows information concerning programs designed to provide

housing assistance grants to seriously disabled veterans and direct loans to Native

American veterans.

Specially Adapted Housing Grants And Direct Loans

During Fiscal Year 2001

Programs Number of

Grants/Loans

Amount of

Grants/Loans

Average Grant/Loan

Amount

Specially Adapted Housing Grants 456 $19,600,000 $42,982

Special Housing Adaptation Grants 49 $509,700 $10,402

TOTAL 505 $20,109,700 $39,821

 Direct Loans to Native Americans120 $1,544,363.61 $77,218

GRAND TOTAL 525 $21,654,064 $41,246

Table 37

Source: FY 2001 Budget, Construction Valuation

1

 Includes disbursements on loans not yet closed.

d. Characteristics of Home Loan Guaranties

By Down-payment Option

The following table shows the distribution of new home loan guaranties if a down

payment was involved in the loan.

Note: The objective of the VA loan guaranty program is to enable veterans (and other eligible

people12) to enter the home-buying market. The “no down-payment” feature is intended to help

a veteran purchase a home. As indicated below, this option was used in over 90 percent of the

loans guaranteed.

Purchase Loans Guaranteed During Fiscal Year 2001 by Downpayment Status

Status Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

No Down-payment 160,002 90.3% $19,600,478,720 $122,501 $5,815,055,536 $36,344

Down-payment 17,156 9.7% $2,451,412,983 $142,890 $675,367,277 $39,366

TOTAL 177,158 100.0% $22,051,891,703 $124,476 $6,490,422,813 $36,636

Table 38

Source: LGY SAS File

 

12 Service members, reservists, surviving spouses, and spouses of POW/MIA service members are also eligible under certain circumstances.
Chapter 2 Business During FY 2001

48

By Buyer Status

The distribution of new loan guaranties by buyer status is shown in the next table. “First

time homeowner” refers to those eligible persons who used their entitlement to

purchase their first home.

Purchase Loans Guaranteed During Fiscal Year 2001

Based on Buyer Status

Buyer Status Number

of Loans

Percent of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

First Time

Homeowner

96,266 54.3% $11,480,245,984 $119,255 $3,467,702,903 $36,022

Previous

Homeowner

80,892 45.7% $10,571,645,719 $130,688 $3,022,719,910 $37,367

TOTAL 177,158 100.0% $22,051,891,703 $124,476 $6,490,422,813 $36,636

Table 39

Source: LGY SAS File

e. Demographic Characteristics of People Who Obtained Home Loan Guaranties

By Periods of Service and Other Entitlement Criteria

Data regarding loans guaranteed during fiscal year 2001 by veteran’s period of service

and by other entitlement criteria follow. Brief definitions of the entitlement criteria can

be found in Chapter 1 on page 13. The following table is subdivided into two parts:

entitlements for veterans and other entitlement categories.

Loans Guaranteed During Fiscal Year 2001 by Period of Service (or Entitlement)

Entitlement Number

of Loans

Percent of

Grand

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

World War II 923 0.4% $87,988,696 $95,329 $29,175,400 $31,609

Post-World War II 107 0.0% $11,589,010 $108,309 $3,538,491 $33,070

Korean War 1,222 0.5% $119,565,967 $97,844 $39,372,764 $32,220

Post-Korean War 2,732 1.1% $285,286,967 $104,424 $90,784,175 $33,230

Vietnam Era 20,553 8.2% $2,306,217,067 $112,208 $708,601,835 $34,477

Post-Vietnam Era 34,293 13.7% $4,110,177,731 $119,855 $1,230,791,604 $35,890

Gulf War Era 66,478 26.6% $8,185,336,352 $123,128 $2,427,729,316 $36,519

Restored Entitlement 74,998 30.0% $10,053,709,121 $134,053 $2,830,334,576 $37,739

TOTAL 201,306 80.5% $25,159,870,911 $124,983 $7,360,328,161 $36,563

Service Personnel140,069 16.0% $5,040,100,821 $125,786 $1,480,396,100 $36,591

Reservists 8,051 3.2% $994,519,537 $123,527 $293,771,673 $36,591

Un-Remarried Survivor 578 0.2% $59,916,731 $103,662 $19,176,810 $33,178

Spouse of POW 5 0.0% $546,728 $109,346 $162,850 $32,570

TOTAL 48,703 20.0% $6,095,083,817 $125,148 $1,793,507,433 $36,825

GRAND TOTAL 250,009 100.0% $31,254,954,728 $125,015 $9,153,835,594 $36,614

Table 40

Source: LGY SAS File

1

 Based on when the loan was made
Chapter 2 Business During FY 2001

49

By Income

The next table shows the distribution of purchase loans guaranteed during fiscal year

2001 by the annual income of the eligible borrower.

Purchase Loans Guaranteed During Fiscal Year 2001

Based on Annual Income

Income Number

of

Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

Median

Assets

Less than $25,000 7,194 4.1% $535,298,576 $74,409 $203,351,774 $28,267 $2,351

$25,000 to $34,999 23,512 13.3% $2,107,876,693 $89,651 $751,487,826 $31,962 $2,957

$35,000 to $44,999 35,782 20.2% $3,834,631,936 $107,167 $1,236,538,407 $34,558 $3,908

$45,000 to $54,999 34,638 19.6% $4,277,241,708 $123,484 $1,264,233,957 $36,498 $4,689

$55,000 to $64,999 28,318 16.0% $3,869,167,508 $136,633 $1,080,921,841 $38,171 $5,500

$65,000 to $74,999 20,118 11.4% $2,968,746,018 $147,567 $797,366,433 $39,634 $6,528

$75,000 and over 27,596 15.6% $4,458,929,264 $161,579 $1,156,522,575 $41,909 $8,717

TOTAL 177,158 100.0% $22,051,891,703 $124,476 $6,490,422,813 $36,636 $4,921

Average Income: $54,895

Median Income: $51,276

Median Loan: $122,298

Table 41

Source: LGY SAS File

By Age

The distribution of new loan guaranties by age of the borrower is shown in the next

table.

Home Loans Guaranteed During Fiscal Year 2001

Based on Age

Age Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

18 - 25 10,511 4.2% $1,092,069,495 $103,898 $355,855,775 $33,856

26 - 35 93,771 37.5% $11,774,132,240 $125,563 $3,455,967,379 $36,855

36 - 45 77,386 31.0% $10,153,833,726 $131,210 $2,903,346,649 $37,518

46 - 55 44,683 17.9% $5,549,165,403 $124,190 $1,621,306,335 $36,285

56 - 65 16,098 6.4% $1,902,870,183 $118,205 $567,805,650 $35,272

Over 65 7,560 3.0% $782,883,681 $103,556 $249,553,916 $33,010

 TOTAL 250,009 100.0% $31,254,954,728 $125,015 $9,153,835,594 $36,614

Average overall age: 40

Table 42

Source: LGY SAS File
Chapter 2 Business During FY 2001

50

By Race

Providing race information on the application for a loan is voluntary. About 80 percent

of borrowers provided race information during fiscal year 2001. The race demographics

presented in the following table show the distribution among the 80 percent who

provided that information.

Home Loans Guaranteed During Fiscal Year 2001

Based on Known Race

Race Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

White 156,241 77.7% $19,343,358,533 $123,805 $5,695,426,629 $36,453

Black 28,462 14.1% $3,545,337,670 $124,564 $1,039,835,589 $36,534

Hispanic 12,526 6.2% $1,523,099,860 $121,595 $453,360,699 $36,194

Native American 1,266 0.6% $158,419,788 $125,134 $46,175,250 $36,473

Asian 2,714 1.3% $387,174,471 $142,658 $106,038,154 $39,071

TOTAL 201,209 100.0% $24,957,390,322 $124,037 $7,340,836,321 $36,484

Table 43

Source: LGY SAS File

8. VOCATIONAL REHABILITATION AND EMPLOYMENT (VR&E)

a. VR&E Veterans and Eligible Dependents Served during Fiscal Year 2001

The numbers in this table represent the number of services provided to the 60,588

veterans who were served by Vocational Rehabilitation and Employment Services

during FY 2001. These services include Evaluation and Planning Services,

Employment Services, and Rehabilitation Services. Note: A veteran may receive more

than one rendering of a service in a given year and, hence, will appear more than once

in a total count of services.

Services by the Vocational Rehabilitation Programs

During Fiscal Year 2001

Program Number Percent

Service-Connected Veterans (Chapter 31) 236,079 99.98%

Pension Recipients (Chapter 15) 0 0.00%

Vietnam Veterans Children With Spina Bifida (Chapter 18) 49 0.02%

Total 236,128 100%

Table 44

Sources: VR&E Program Management Reports (FY 2001) and Regional Office Reports
Chapter 2 Business During FY 2001

51

The mission of the Vocational Rehabilitation and Employment (VR&E) Program is to

provide comprehensive services and assistance necessary to enable veterans with

service-connected disabilities and employment handicaps to become employable, then

obtain and maintain stable suitable employment. When the severity of disability

prohibits suitable employment, VR&E assists those veterans to achieve maximum

independence in daily living activities.

Veterans may progress through a series of steps, or case statuses, that describe the

part of the program they are currently in, and what services may be provided. These

steps are described below:

• Step 1. Application for the benefit;

• Step 2. Evaluation to assess needs and determine services to which a veteran

may be entitled and conduct rehabilitation planning;

• Step 3. Provide rehabilitation services for employment (services and assistance

that lead to the veteran to become job-ready or able to live more independently in

the community);

• Step 4. Service in “job-ready” status assist the veteran in obtaining and

maintaining suitable employment; and

• Step 5. Rehabilitation - includes veterans who obtain and maintain suitable

employment or achieved maximum independence in daily living.

The following subsections provide information about veterans who participated in each

of the steps during fiscal year 2001. A veteran proceeds through the rehabilitation

process step by step. While a veteran may be counted in more than one step as a

result of completing a step and moving on, no veteran participates in more than one

step at a time. Basic data concerning the number of veterans involved in each step is

provided first, followed by demographic information.

b. Step 1: Applicants for a Program of Rehabilitation and Employment Services

A total of 58,594 veterans applied for rehabilitation and employment services during

fiscal year 2001. The following three tables show demographic characteristics of the

veterans who applied.

This first step (where the veteran enters Applicant Status) begins when the veteran’s

application is received by VA and the veteran is found to have basic eligibility. Basic

eligibility is determined when:

• the veteran has a discharge under other than dishonorable conditions, and

• the veteran has a compensable disability (i.e., the disability is evaluated as 10% or

more).
Chapter 2 Business During FY 2001

52

During Applicant Status, the veteran is scheduled for an individual appointment to

determine his/her entitlement to a program of services. At this time, he/she may be

provided with information on the nature and process of the program through either

individual communications or through a group briefing. Follow-up activities are conducted

to assure that the veteran meets the scheduled appointment or reschedules the

appointment date and time.

Applicants for Vocational Rehabilitation by Combined

Degree of Disability

During Fiscal Year 2001

Disability

Evaluation

Number Percent

0% 64 0.1%

10% 6,210 11.9%

20% 9,427 18.1%

30% 9,304 17.8%

40% 6,649 12.7%

50% 4,127 7.9%

60% 3,245 6.2%

70% 2,222 4.3%

80% 1,110 2.1%

90% 455 0.9%

100% 2,929 5.6%

Other16,462 12.4%

Total 52,2042100%

Table 45

VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse and Disability

Compensation Data

1Contains cases not rated and memo ratings.

2This number is a subset of the 58,594 shown above.

Note: The “Other” category includes applicants with non-compensable serviceconnected disabilities; i.e.:

• disabilities were not found to be service-connected, or

• disabilities were service-connected but not so disabling as to allow payment of

compensation, or

• no application for service connection was made (In this instance, a memorandum

rating is required to determine entitlement to vocational rehabilitation on the basis of

service-connected disability level.)
Chapter 2 Business During FY 2001

53

By Gender

Applicants for Vocational Rehabilitation by Gender

During Fiscal Year 2001

Female Male Total

Number 7,994 44,210 52,204

Percent 15.3% 84.7% 100%

Table 46

Source: VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse

By Age

Applicants for Vocational Rehabilitation by Age

During Fiscal Year 2001

Age

17 - 21

Age

22 - 29

Age

30 - 39

Age

40 - 49

Age

50 - 59

Age

>60

Total

All Ages

Number 1,027 8,726 13,074 16,584 10,433 2,360 52,204

Percent 2.0% 16.7% 25.0% 31.8% 20.0% 4.5% 100%

Table 47

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

c. Step 2: Evaluation and Planning or Extended Evaluation

Veterans are provided a comprehensive evaluation to assess needs and determine their

entitlement to a program of rehabilitation and employment services and conduct

rehabilitation planning. Each veteran goes through the Evaluation and Planning status,

and may also go through the Extended Evaluation status if it is needed in the individual

case. If entitlement is found, VR&E gathers information to develop an individualized

plan of services to help the veteran achieve either a specific occupational goal or

independence in daily living. If entitlement is not found, VR&E assists veterans with

developing their options before they exit the process.

In fiscal year 2001, 56,406 veterans participated in evaluation and planning and

extended evaluation processes. Demographic data for veterans found to be entitled (for

rehabilitation and employment services) during fiscal year 2001 are reflected in the

following tables.
Chapter 2 Business During FY 2001

54

Below is a brief description of the Evaluation and Planning status and the Extended

Evaluation status:

• Evaluation and Planning: A veteran who reports for his/her initial evaluation

appointment is placed in the Evaluation and Planning status. In this status, a

comprehensive evaluation of the veteran’s abilities, interests, and aptitudes is

accomplished by evaluating medical information, educational and work

histories, and other information specific to the circumstance of the veteran.

The Vocational Rehabilitation Counselor (VRC) or Counseling Psychologist

(CP) uses this information to determine if the veteran is entitled to a program

of services and, if found to be entitled, works with the veteran to develop a

specific plan of services to achieve the agreed upon goal.

• Extended Evaluation: During the Evaluation and Planning Status, the VRC

may determine that, due to the extent of the veteran’s disabilities, there is

insufficient information to determine if a veteran can benefit from a

rehabilitation and employment program. The VRC is also unable to determine

in these cases if the veteran will eventually achieve the goal of suitable

employment or maximization of independent living skills. In order to further

assess the veteran’s potential, he/she is placed in the Extended Evaluation

status.

• A specialized rehabilitation service provides the VRC CP with a more

detailed assessment of the veteran’s potential to achieve a rehabilitation goal.

This assessment aids the VRC or CP in developing the veteran’s plan for

services.

Note: Of the 56,406 veterans who were provided evaluation services in FY 2001, 31,533 were

found to be entitled to programs of rehabilitation services. The remainder was not found entitled

or dropped out of the evaluation process prior to this determination.
Chapter 2 Business During FY 2001

55

By Combined Degree of Service-connected Disability

Veterans Entitled to Vocational Rehabilitation by

Combined Degree of Disability During Fiscal

Year 2001

Disability

Evaluation

Number Percent

0% 6 0.0%

10% 1,355 4.3%

20% 6,037 19.1%

30% 6,091 19.3%

40% 5,049 16.0%

50% 3,227 10.2%

60% 2,912 9.2%

70% 2,091 6.6%

80% 1,168 3.7%

90% 502 1.6%

100% 2,301 7.3%

Other1794 2.5%

Total 31,533 100%

Table 48

Source: VR&E Program Management Reports (FY 2001)--Benefits Delivery

Network

Data Warehouse and Disability Compensation Data

1Contains cases not rated and memo ratings

Note: The “Other” category includes applicants with non-compensable (0%) evaluations for

service-connected disabilities or nonservice-connected disabilities.

By Gender

Veterans Entitled to Vocational Rehabilitation by Gender

During Fiscal Year 2001

Female Male Total

Number 5,486 26,047 31,533

Percent 17.4% 82.6% 100%

Table 49

Source: VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse

By Age

Veterans Entitled to Vocational Rehabilitation by Age

During Fiscal Year 2001

Age

17 - 21

Age

22 - 29

Age

30 - 39

Age

40 - 49

Age

50 - 59

Age

>60

Total For

All Ages1

Number 313 5,303 8,604 10,196 5,909 1,208 31,533

Percent 1.0% 16.8% 27.3% 32.3% 18.7% 3.8% 100%

Table 50

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse
Chapter 2 Business During FY 2001

56

By Period of Service

Veterans Entitled to Vocational Rehabilitation by Period of Service During

Fiscal Year 2001

World

War II

Post

World

War II1

Korean

War

Post

Korean

War1

Vietnam

Era

Post

Vietnam

Era1

Gulf

War Era

Total All

Service

Periods

Number 147 24 138 329 4,076 6,388 20,431 31,533

Percent 0.5% 0.1% 0.4% 1.0% 12.9% 20.3% 64.8% 100%

Table 51

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

1

These three periods are generally combined into “Peacetime” service in other sections of this report.

By Serious Employment Handicap

Veterans Entitled to Vocational Rehabilitation with a

Serious Employment Handicap During Fiscal Year 2001

Number Percent

Total Veterans 31,533

Total With SEH 14,492 46%

Table 52

Source: VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse

Note: A serious employment handicap is a significant impairment, caused in part by a

service-connected disability, in the veteran’s ability to prepare for, obtain, or retain

employment consistent with his/her abilities, aptitudes, and interests.

By Veterans Who Completed Evaluation and Developed Rehabilitation Plans

Veterans Participating in a Vocational Rehabilitation

Program and the Number of New Rehabilitation Plans

Developed During Fiscal Year 2001

Total Participants152,402

Training Plans Developed221,974

Percent of Training Plans 42%

Table 53

1Source: VR&E Program Management Reports (FY 2001)

 Benefits Delivery Network - Data Warehouse

2Source: COIN TAR 6001
Chapter 2 Business During FY 2001

57

Step 3: Participation in a Program of Rehabilitation Services

Upon the completion of the individualized rehabilitation plan, the veteran enters a

rehabilitation program to become:

• job-ready in the selected vocational choice,

• achieve the maximum ability to live independently in the community.

The majority of veterans participating in a plan of services follow the employment track

and may receive services that include:

• employment planning

• training or education

• medical or dental care

• other supportive services.

The length of time a veteran remains in a rehabilitation program varies according to the

individual circumstances of each veteran; however, the average time spent in the

program is approximately two and one-half years.

A total of 65,708 veterans actively participated in programs during fiscal year 2001.

Many of these veterans received subsistence allowance payments if their programs

included training or the veteran was eligible for this allowance through other program

provisions. Data shown in the tables below reflect only that part of this group that

received a subsistence allowance.

By Occupational Goal

Veterans Participating in a Vocational Training Program by Occupational

 Goal During Fiscal Year 2001

Total

Number

Percent of

Total

Number

of Male

Percent

of Total

Number

of Female

Percent

of Total

Agricultural, Fishery and Forestry 126 0.2% 96 0.2% 30 0.3%

Benchwork 291 0.6% 275 0.7% 16 0.1%

Clerical 2,130 4.1% 1,429 3.5% 701 6.1%

Independent Living 606 1.2% 527 1.3% 79 0.7%

Machine Trades 934 1.8% 914 2.2% 20 0.2%

Miscellaneous 1,669 3.2% 1,396 3.4% 273 2.4%

Processing(Butcher, Meat Processor, etc.) 43 0.1% 34 0.1% 9 0.1%

Professional, Technical, and Managerial 43,644 83.3% 33,627 82.2% 10,017 87.1%

Sales 324 0.6% 277 0.7% 47 0.4%

Service 1,049 2.0% 850 2.1% 199 1.7%

Structural (Building Trades) 1,204 2.3% 1,162 2.8% 42 0.4%

Unknown/Other 382 0.7% 318 0.8% 64 0.6%

Total 52,402 100% 40,905 100% 11,497 100%

Table 54

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse
Chapter 2 Business During FY 2001

58

By Type of Training Activity

Veterans Participating in a Vocational Training Program by Type of Training

and Gender During Fiscal Year 2001

Type of Training Total

Number

Percent

of Total

Number

of Male

Percent

of Total

Number

of

Female

Percent

of Total

Undergraduate 43,373 82.8% 33,198 81.2% 10,175 88.5%

Vocational/Technical 4,733 9.0% 4,184 10.2% 549 4.8%

Graduate 1,750 3.3% 1,261 3.1% 489 4.3%

College, Non-Degree 1,161 2.2% 1,020 2.5% 141 1.2%

Extended Evaluation 895 1.7% 798 2.0% 97 0.8%

On the Job 229 0.4% 211 0.5% 18 0.2%

Eval/Imp Rehab Potential 62 0.1% 56 0.1% 6 0.1%

High School 45 0.1% 38 0.1% 7 0.1%

Non/Nominal Pay in Gov. 70 0.1% 60 0.1% 10 0.1%

Gov’t Work Experience 0 0.0% 0 0.0% 0 0.0%

Apprenticeship 75 0.1% 70 0.2% 5 0.0%

Farm Co-op 9 0.0% 9 0.0% 0 0.0%

Total 52,402 100% 40,905 100% 11,497 100%

Table 55

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

By Serious Employment Handicap

Veterans Participating in a Vocational Training

Program with a Serious Employment Handicap During

Fiscal Year 2001

Total Participants 52,402

Number with Serious Employment Handicap 20,165

Percent with Serious Employment Handicap 38%

Table 56

Source: VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse

By Gender

Veterans Participating in a Vocational Training

Program By Gender During Fiscal Year 2001

Female Male Total

Number 11,497 40,905 52,402

Percent 21.9% 78.1% 100%

Table 57

Source: VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse
Chapter 2 Business During FY 2001

59

By Age

Veterans Participating in a Vocational Training Program by Age

During Fiscal Year 2001

Age

17-21

Age

22-29

Age

30-39

Age

40-49

Age

50-59

Age

>60

Total

for All

Ages

Number 149 8,729 17,440 18,218 7,088 778 52,402

Percent 0.3% 16.7% 33.3% 34.8% 13.5% 1.5% 100%

Average Age for Veterans in Training Status: 39

Table 58

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data

Warehouse

By Period of Service

Veterans Participating in a Vocational Training Program by Period of

Service During Fiscal Year 2001

World

War II

Post

World

War II1

Korean

War

Post

Korean

War1

Vietnam

Era

Post

Vietnam

Era1

Gulf

War

Era

Total

All

Service

Periods

Number 34 6 50 198 3,396 8,827 39,891 52,402

Percent 0.1% 0.0% 0.1% 0.4% 6.5% 16.8% 76.1% 100%

Table 59

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

1

 These three periods are generally combined into “Peacetime” service in other sections of this report.

By Branch of Service

Veterans Participating in a Vocational Training Program by Branch of

Service During Fiscal Year 2001

Army1 Navy Air

Force

Marine

Corps

Coast

Guard

Other2Total

Number 24,583 11,594 9,091 5,580 699 855 52,402

Percent 46.9% 22.1% 17.3% 10.6% 1.3% 1.6% 100%

Table 60

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

1Army includes 3 from Women’s Army Corps

2Other includes 1 from Special Philippine Scouts, 3 from Public Health Service and 851 records with no branch of

service data.
Chapter 2 Business During FY 2001

60

By Length of Service

Veterans Participating in a Vocational Training Program by

Length of Service During Fiscal Year 2001

Number Percent

3 Months or Less 297 0.6%

3-6 Months 685 1.3%

6 Months to 2 Year 5,453 10.4%

2-4 Years 12,781 24.4%

4-10 Years 14,883 28.4%

10-15 Years 5,608 10.7%

15-20 Years 3,904 7.5%

20-30 Years 8,633 16.5%

Over 30 Years 158 0.3%

Total 52,402 100%

Table 61

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data

Warehouse

By Dependency Status: Dependency status identifies known dependents for both

single and married veteran participants.

Veterans Participating in a Vocational Training Program by Dependency

Status During Fiscal Year 2001

Single Single With

Children

Married Married With

Children

Dependent

Parent(s)

Total1

Number 12,493 6,649 8,961 24,096 102 52,301

Percent 23.9% 12.7% 17.1% 46.1% 0.2% 100%

Table 62

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

1Does not include 101 veterans whose dependency status is unknown

By Prior Education Level: Distribution by level of education attained prior to the

veteran’s enrollment in a training program.

Veterans Participating in a Vocational Training Program by Prior

Education Level During Fiscal Year 2001

Less Than

High School

High

School

Post High

School

Four Year

College Degree

Graduate

Training

Total

Number 396 28,944 18,591 2,677 1,794 52,402

Percent 0.8% 55.2% 35.5% 5.1% 3.4% 100%

Table 63

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse
Chapter 2 Business During FY 2001

61

By Prior Use of VA Educational Benefits: VR&E program participants who

previously used VA education benefits during fiscal year 2001.

Veterans Participating in a Vocational Training Program by

Prior Use of VA Benefits During Fiscal Year 2001

Prior Use No Prior Use Total

Number 17,463 34,939 52,402

Percent 33.3% 66.7% 100%

Table 64

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data

Warehouse

e. Step 4: Job Ready - Preparing for and Searching for a Suitable Job

A veteran, while in the Evaluation and Planning Status, may be found:

• to need additional rehabilitation services before he/she is job-ready

• to have transferable skills developed through prior education or experience that

would allow him/her to successfully compete in the job market without additional

training

Whether the veteran becomes job-ready after participating through rehabilitation to the

point of Employability Status or is determined to be job-ready in the evaluation process,

he/she is placed in the Employment Services Status. Here, the employment assistance

needs of each veteran is assessed and a plan of services is developed that will lead to

moving into suitable employment. Services may include:

• job market exploration

• job seeking skills

• resume preparation

• interview skills

• other assistance.

Each veteran is provided a case manager who follows the veteran’s progress through

the program and assures that the prescribed services are delivered.
Chapter 2 Business During FY 2001

62

The following table shows those veterans who progressed from participating in a

program of rehabilitation services to employment services. In fiscal year 2001, a total of

13,886 veterans received services in the Employment Services status. This includes

1,025 veterans who were found (in the Evaluation and Planning Status) to possess

marketable skills without additional education or training, but needed specific

employment services to obtain and maintain suitable employment. Therefore, rather

than participate in a program of rehabilitation services that may have included training

or education, these veterans were able to move directly to the Employment Services

Status. The remaining 12,861 veterans received services in the Rehabilitation to the

Point of Employability Status.

Veterans in this status may be provided assistance in:

• resume preparation

• interview techniques

• job hunting strategies

• other direct employment services.

Veterans Participating in a Vocational Training Program by Veterans

Who Entered Employment Services During Fiscal Year 2001

Total Participants152,402

Employment Plans Developed213,886

Percent in Employment Plans 26%

Table 65

1Source: VR&E Program Management Reports (FY 2001)

2COIN TAR 6005

Note: Participants are all veterans who received subsistence allowance while in a training

program during FY 2001.
Chapter 2 Business During FY 2001

63

Veterans Served by the Programs by Race or Ethnic Background, Sorted by Case

Status

Veterans in Active Case Statuses During

FY 2001 by Race1

Applicant Status

American Indian/Alaskan 341

Asian/Pacific Island 819

Black 13,419

White 26,103

Hispanic 614

Other 1,637

Unknown 3,823

Unidentified 11,833

Total 58,589

Evaluation and Planning Status

American Indian/Alaskan 308

Asian/Pacific Island 834

Black 12,351

White 23,863

Hispanic 487

Other 1,463

Unknown 3,692

Unidentified 10,444

Total 53,442

Extended Evaluation Status

American Indian/Alaskan 11

Asian/Pacific Island 25

Black 592

White 932

Hispanic 12

Other 47

Unknown 303

Unidentified 1,034

Total 2,956

Independent Living Status

American Indian/Alaskan 10

Asian/Pacific Island 52

Black 224

White 747

Hispanic 6

Other 47

Unknown 838

Unidentified 2,324

Total 4,248
Chapter 2 Business During FY 2001

64

Veterans in Active Case Statuses During FY 2001

 by Race1

Rehabilitation to Employment

Status

American Indian/Alaskan 372

Asian/Pacific Island 912

Black 14,784

White 32,409

Hispanic 441

Other 1,464

Unknown 3,429

Unidentified 7,645

Total 61,456

Employment Status

American Indian/Alaskan 80

Asian/Pacific Island 267

Black 2,702

White 7,744

Hispanic 56

Other 264

Unknown 897

Unidentified 1,875

Total 13,885

Grand Total FY 2001 194,576

Table 66.

1This table represents veterans served by the program by their declared race(s).

f. Step 5: Rehabilitated: Rehabilitated Status represents the achievement of the veteran's

goal to be suitably employed or obtain independence in daily living and is the positive

outcome measure of the program. This step is presented in further detail starting with Table

77 of this chapter.
Chapter 2 Business During FY 2001

65

Summary of Beneficiaries Leaving The Rolls For All Benefits Programs

During Fiscal Year 2001

The Compensation and Pension, Education, Life Insurance, Loan Guaranty and Vocational

Rehabilitation and Employment Services programs serve diverse purposes, therefore, the

reasons benefits terminate vary from program to program.

For Compensation and Pension, benefits generally stop when entitlement ceases to exist,

such as with the improvement of a service-connected disability to a non-compensable level or

with the exceeding of the statutory income limit for a pension recipient. For Education, benefits

end when training ceases, when entitlement is exhausted or a delimiting date is reached. For

Insurance policyholders, termination means either lapse of policy coverage or payment of the

policy. For Home Loan Guaranty, termination means either the payment of the guaranty

amount to the lender or full payment of the mortgage by the veteran. For Vocational

Rehabilitation, termination means stopping of training, either by completing or withdrawing

from the program.

Summary of All

Active Benefits That Ended During Fiscal Year 2001

Benefits Programs Number of People Percent of Total

Compensation – Disability 71,009 10.0%

Compensation – Death117,947 2.5%

Pension – Disability 56,038 7.9%

Pension – Death 39,424 5.6%

Education221,146 3.0%

Life Insurance 137,886 19.4%

Home Loan Guaranty 350,548 49.4%

Vocational Rehabilitation315,471 2.2%

Total 709,469 100%

Table 67

1

 This category consists of the Death Compensation and DIC Programs.

2

 17,041 claimants exhausted their entitlement; 4,105 claimants reached their delimiting date.

3

 10,116 veterans completed training; 5,335 veterans discontinued training.
Chapter 2 Business During FY 2001

66

Individual Data for Each Benefit Program

The following sections provide additional information about benefits that ended for veterans,

dependents, and survivors under each program during fiscal year 2001.

1. COMPENSATION -- BASED UPON SERVICE-CONNECTED DISABILITY

The following table shows the most common reasons for ending disability compensation

payments during fiscal year 2001.

Note: Reasons for ending benefit payments are depicted in the boxes above the “Number Removed”

and “Percent of Period Removed” columns. “Percent of Period Removed” means the proportion of the

total number of veterans from that period of service whose benefits were ended.

Service-Connected Disability Compensation Reasons for Ending Payments

During Fiscal Year 2001

Death Of Veteran Veterans Whereabouts

Or Address Unknown

Reasons Not

Specifically Stated

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

 World War I 13 100.0% 0 0.0% 0 0.0%

 World War II 40,027 99.1% 115 0.3% 38 0.1%

 Korean War 7,273 98.6% 31 0.4% 17 0.2%

 Vietnam Era 12,054 95.2% 157 1.2% 200 1.6%

 Gulf War Era 843 36.8% 278 12.2% 387 16.9%

 Peacetime Periods 7,576 91.6% 241 2.9% 141 1.7%

Total 67,786 822 783

Percent Of Grand Total 95.5% 1.2% 1.1%

Veteran On Active

Duty Or In Receipt Of

Retirement Pay

All Others1 Grand Totals By

Periods Of Service

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Grand

Total

 World War I 0 0.0% 0 0.0% 13 0.0%

 World War II 14 0.0% 211 0.5% 40,405 56.9%

 Korean War 11 0.1% 44 0.6% 7,376 10.4%

 Vietnam Era 84 0.7% 162 1.3% 12,657 17.8%

 Gulf War Era 452 19.8% 328 14.3% 2,288 3.2%

 Peacetime Periods 157 1.9% 155 1.9% 8,270 11.6%

Total 718 900 71,009 100.0%

Percent Of Grand Total 1.0% 1.3% 100%

Table 68

Source: Benefits Delivery Network - RCS 20-0243

1This category combines some 10 other reasons for ending benefits .
Chapter 2 Business During FY 2001

67

2. COMPENSATION -- BASED UPON A SERVICE-CONNECTED DEATH

The following table shows the most common reasons for ending DIC and Death

Compensation13 payments during fiscal year 2001.

Service-Connected Death Benefits - Reasons for Ending Payments

During Fiscal Year 2001

Death Of Payee Child Over 18

Terminates School Or

Reaches Age 23

Child Reaches 18

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

 World War I and Earlier 492 97.4% 0 0.0% 3 0.6%

 World War II 7,033 94.8% 53 0.7% 16 0.2%

 Korean War 1,760 91.8% 29 5.7% 11 0.6%

 Vietnam Era 2,633 54.8% 887 18.5% 355 7.4%

 Gulf War Era 19 3.0% 264 42.1% 106 16.9%

 Peacetime Periods 1,447 54.0% 482 18.0% 362 13.5%

Total 13,384 1,715 853

Percent Of Grand Total 74.6% 9.6% 4.8%

Marital Status Change

– Person Entitled Or

Dependent

All Others1 Grand Totals By

Periods Of Service

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Grand

Total

 World War I and Earlier 1 0.2% 9 1.8% 505 2.8%

 World War II 99 1.3% 215 2.9% 7,416 41.3%

 Korean War 55 2.9% 63 3.3% 1,918 10.7%

 Vietnam Era 333 6.9% 595 12.4% 4,803 26.8%

 Gulf War Era 105 16.7% 133 21.2% 627 3.5%

 Peacetime Periods 130 4.9% 257 9.6% 2,678 14.9%

Total 723 1,272 17,947 100.0%

Percent Of Grand Total 4.0% 7.1% 100%

Table 69

 Source: Benefits Delivery Network - RCS 20-0243

 

1This category combines some 13 other reasons for ending benefits

 

13 The Death Compensation program preceded the DIC program. Basic entitlement generally exists for a surviving spouse, child/children,

and/or parents if the veteran died before January 1, 1957, of a service related death.
Chapter 2 Business During FY 2001

68

3. PENSION -- BASED UPON NONSERVICE-CONNECTED DISABILITY

The following table shows the most common reasons for ending disability pension payments

during fiscal year 2001.

Nonservice-Connected Disability Pension

 Reasons for Ending Payments During Fiscal Year 2001

Death Of Veteran Income Provisions Other Reasons Not

Specifically Stated

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

 World War I 98 97.0% 1 1.0% 0 0.0%

 World War II 27,378 84.4% 2,832 8.7% 812 2.5%

 Korean War 7,567 66.6% 2,593 22.8% 630 5.5%

 Vietnam Era 5,066 42.5% 5,116 42.9% 899 7.5%

 Gulf War Era 44 22.7% 109 56.2% 16 8.2%

 Peacetime Periods N/A N/A N/A

Total 40,153 10,651 2,357

Percent Of Grand Total 71.7% 19.0% 4.2%

Failed To File

Eligibility Verification

Report

All Others1 Grand Totals By

Periods Of Service

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Grand

Total

 World War I 0 0.0% 2 2.0% 101 0.2%

 World War II 783 2.4% 643 2.0% 32,448 57.9%

 Korean War 303 2.7% 269 2.4% 11,362 20.3%

 Vietnam Era 314 2.6% 538 4.5% 11,933 21.3%

 Gulf War Era 11 5.7% 14 7.2% 194 0.3%

 Peacetime Periods N/A N/A N/A

Total 1,411 1,466 56,038 100.0%

Percent Of Grand Total 2.5% 2.6% 100.0%

Table 70

Source: Benefits Delivery Network – RCS 20-0243

1This category combines some 15 other reasons for ending benefits.
Chapter 2 Business During FY 2001

69

4. PENSION -- BASED UPON NONSERVICE-CONNECTED DEATH

The following table shows the most common reasons for ending death pension payments to

survivors of wartime veterans during fiscal year 2001.

Nonservice-Connected Death Pension Reasons for Ending Payments

During Fiscal Year 2001

Death Of Payee Income Provisions Other Reasons Not

Specifically Stated

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

 World War I and Earlier 5,999 94.8% 110 1.7% 33 0.5%

 World War II 15,843 61.9% 7,364 28.8% 890 3.5%

 Korean War 1,000 20.0% 3,220 64.6% 255 5.1%

 Vietnam Era 288 11.6% 1,467 59.2% 136 5.5%

 Gulf War Era 1 2.6% 26 68.4% 1 2.6%

 Peacetime Periods N/A N/A N/A

Total 23,131 12,187 1,315

Percent Of Grand Total 58.7% 30.9% 3.3%

Failure To File Eligibility

Verification Report

(EVR)

All Others1 Grand Totals By

.1.1 Periods Of

Service

Periods Of Service Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Period

Removed

Number

Removed

Percent Of

Grand

Total

 World War I and Earlier 79 1.2% 109 1.7% 6,330 16.1%

 World War II 749 2.9% 742 2.9% 25,588 64.9%

 Korean War 188 3.8% 325 6.5% 4,988 12.7%

 Vietnam Era 169 6.8% 420 16.9% 2,480 6.3%

 Gulf War Era 3 7.9% 7 18.4% 38 0.1%

 Peacetime Periods N/A N/A N/A

Total 1,188 1,603 39,424 100.0%

Percent Of Grand Total 3.0% 4.1% 100%

Table 71

Source: Benefits Delivery Network - RCS 20-0243

1This category combines some 16 other reasons for ending benefits.
Chapter 2 Business During FY 2001

70

5. EDUCATION

Educational assistance ends for one of two reasons: entitlement is exhausted, or the delimiting

date (i.e., the deadline for using the benefit) is reached.

Entitlement Exhausted: Veterans, service members, and reservists are generally entitled to

36 months of educational assistance (entitlement). Dependents are entitled to 45 months of

educational assistance. Once 36 or 45 months of educational assistance is used, payment of

the benefit ends.

Delimiting Date: Dependents have a defined amount of time to use their educational

assistance. Veterans and service members, generally, have 10 years from the date of their

last discharge from active military service. Reservists have either 10 years from the date their

eligibility began or until the day following separation from the Selected Reserve, whichever is

the earlier. In the Dependents Educational Assistance program, children usually have until

age 26; and spouses, or surviving spouses, generally, have 10 years from their date of

eligibility.

Beneficiaries Whose Benefits Terminated

During Fiscal Year 2001

Program Entitlement

Exhausted

Delimiting

Date

Total

Terminations

Percent of

Total

Terminations

 Dependents Education 304 121 425 2.0%

 Montgomery GI Bill - Active Duty113,696 3,250 16,946 80.1%

 Montgomery GI Bill – Reserves22,835 605 3,440 16.3%

 Post-Vietnam Veterans Education 206 129 335 1.6%

Total 17,041 4,105 21,146 100%

Percent of Total Terminations 80.6% 19.4% 100%

Table 72

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve

6. LIFE INSURANCE

Life insurance policies end for two reasons - either they are “paid off” or they lapse. The

following two tables provide data concerning the policies that ended during fiscal year 2001.
Chapter 2 Business During FY 2001

71

Policies That Were “Paid Off”

Policies may be “paid off” in different ways. Death claims are paid to a veteran’s designated

beneficiary upon the death of the veteran. Cash surrenders and matured endowments are

paid to the veteran. The following table provides a distribution of payments by insurance

program.

Insurance Payments

During Fiscal Year 2001

Death Claims Number1 Amount2 Average Payment

USGLI 1,423 $5,093,810 $3,580

NSLI 91,497 $867,309,922 $9,479

VSLI 4,947 $55,650,783 $11,249

VRI 4,554 $36,130,742 $7,934

SDVI 4,318 $42,080,860 $9,745

VMLI 136 $8,767,212 $64,465

SGLI31,749 $334,095,536 $191,021

VGLI31,243 $114,059,507 $91,761

TOTAL 109,867 $1,463,188,372 $13,318

Matured Endowment Number1 Amount2 Average Payment

USGLI 16 $114,851 $7,178

NSLI 547 $5,468,946 $9,998

VSLI 311 $3,750,173 $12,058

VRI 5 $41,906 $8,381

SDVI 291 $2,117,201 $7,276

TOTAL 1,170 $11,493,077 $9,823

Cash Surrender Number1 Amount2 Average Payment

USGLI 161 $396,439 $2,462

NSLI 9,120 $47,091,721 $5,164

VSLI 1,135 $6,440,332 $5,674

VRI 459 $2,163,244 $4,713

SDVI 948 $6,220,088 $6,561

TOTAL 11,823 $62,311,824 $5,270

GRAND TOTAL 122,860 $1,536,993,273 $12,510

Table 73

1

 Sources: Insurance Master Record Database - 510 Monthly Report

 VMLI Database - VMLI Quarterly Report

 Veterans And Reservists Group Insurance System - OSGLI Monthly Report

2

 Source: Insurance General Ledger Accounting System - CFO FY01 Life Insurance Statements (Incurred Basis))

3

 Source: SGLI and VGLI data are for the policy year ending June 30, 2001
Chapter 2 Business During FY 2001

72

The table that follows also displays information about death claims paid provides the data for

the prior three years as well for purposes of comparison.

Number of Death Claims Paid

Comparative Information for Four Fiscal Years

FY 2001 FY 2000 FY 1999 FY 1998

Number of Claims Paid 109,867 109,003 108,138 108,613

Total Amounts Paid $1,463,188,372 $1,398,174,179 $1,358,061,052 $1,371,171,825

Average Amounts Paid $13,318 $12,827 $12,559 $12,624

Table 73A

Policies That Lapsed

Policies lapse mainly because the policyholder didn’t pay the premiums. The following table

provides data about policies that lapsed during FY 2001.

Policy Lapses

During Fiscal Year 2001

Policy Lapses Number1Face Value1 Average

Face Value

NSLI 12,379 $89,685,190 $7,245

VSLI 723 $5,810,000 $8,036

VRI 270 $1,373,750 $5,088

SDVI 1,654 $16,102,500 $9,735

Total 15,026 $112,971,440 $7,518

Table 74

1

 Sources: Insurance Master Record Database - 510 Monthly Report

 VMLI Database - VMLI Quarterly Report

 Veterans And Reservists Group Insurance System - OSGLI Monthly Report
Chapter 2 Business During FY 2001

73

7. HOME LOAN GUARANTY

A home loan guaranty is terminated in one of two ways. “Paid in Full” means that the loan was

paid in full, by the borrower, to the lending institution. Therefore, the guaranty is no longer

applicable and no payment was made based on the guaranty. “Loan Defaulted - Guaranty

Payment Made” means that the loan was defaulted by the borrower and the loan guaranty

claim was paid. The following table shows the disposition of loan guaranties terminated during

fiscal year 2001. Also shown is the amount of money paid to lending institutions under the

guaranty provisions during fiscal year 2001.

Disposition of Home Loans

During Fiscal Year 2001

Disposition Number

of Loans

Percent

of Total

Amount of

Payment

Average

Payment

Paid in Full by Borrower 327,683 93.5% --- ---

Loan Defaults - Guaranty Payment Made 22,865 6.5% $471,027,000 $20,600

TOTAL 350,548 100%

Table 75

Source: COIN GIL 01-01, 02-01 and 50-01; DOOR Report 6005

8. VOCATIONAL REHABILITATION AND EMPLOYMENT

The vocational rehabilitation program participants end their association with the program in

one of three ways:

• by completing the program and finding employment;

• by completing the program and achieving greater independence in living; or

• by discontinuing pursuit of the rehabilitation objectives.

Veterans Ending Their Participation in a Training Program

This table shows the veterans whose participation ended during fiscal year 2001, sorted by

termination reason.

Veterans Who Ended a Training Program

During Fiscal Year 2001

Reason For Ending Program Number Percent

Employment 8,559 55.3%

Independent Living 1,557 10.1%

Discontinue15,355 34.6%

TOTAL 15,471 100%

Table 76

Source: VR&E Program Management Reports (FY 2001)

1

Individual who had developed plans of services and discontinued
Chapter 2 Business During FY 2001

74

Step 5: Rehabilitated:

Rehabilitated Status represents the achievement of the veteran's goal to be suitably employed

or obtain independence in daily living and is the positive outcome measure of the program.

Each veteran is provided follow-up assistance to assure that his/her status can be maintained.

a. Participants with Serious Employment Handicaps Who Completed Their

 Program

Participants who had a serious employment handicap and completed a program of vocational

rehabilitation during fiscal year 2001.

Veterans with a Serious Employment

Handicap Who Completed Training During FY 2001

Number Percent

Total Veterans 10,116

Total With Serious Employment

Handicap

4,280 42%

Table 77

Source: VR&E Program Management Reports (FY 2001)

a. Pre- and Post-Training Annual Earnings

By Gender

Annual earnings of veterans, by gender, who completed their rehabilitation program and

gained employment.

Veterans Who Successfully Achieved Rehabilitation

Pre- and Post-Annual Earnings by Gender During Fiscal Year 2001

Number

Rehabilitated

Average

Annual

Earnings Prior

To Training

Total Annual

Earnings Prior

To Training

Average

Annual

Earnings At

Rehabilitation

Total Annual

Earnings At

Rehabilitation

Male 8,314 $5,190 $43,149,660 $29,092 $241,870,888

Female 1,802 $3,907 $7,040,414 $26,110 $47,050,220

Total 10,1161$50,190,074 $288,921,108

Table 78

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

1This total includes 1,557 persons who entered into independent living and do not have earnings.

Note: The table compares annual earnings before entering the program and after completing it

and finding employment. Both total annual earnings and average annual earnings for these

veterans are provided.
Chapter 2 Business During FY 2001

75

By Occupation Type

Veterans Who Successfully Achieved Rehabilitation

Pre- and Post-Annual Earnings by Occupational Category

During Fiscal Year 2001

Number

Rehabilitated

Average

Annual

Earnings

Prior to

Training

Total Annual

Earnings

Prior to

Training

Average

Annual

Earnings

at Rehab

Total

Annual

Earnings

at Rehab

Percent

 of

Increases

in

Earnings

Professional, Technical and Managerial 6,241 $5,804 $36,222,764 $31,111 194,163,751.00 436%

Clerical 654 $4,825 $3,155,550 $23,246 15,202,884.00 382%

Sales 177 $5,566 $985,182 $26,648 4,716,696.00 379%

Services 422 $4,837 $2,041,214 $23,406 9,877,332.00 384%

Agricultural, Fishery, and Forestry 37 $4,162 $153,994 $21,443 793,391.00 415%

Processing (Butcher, Meat Processor) 25 $6,635 $165,875 $24,946 623,650.00 276%

Machine Trades 303 $6,882 $2,085,246 $27,150 8,226,450.00 295%

Bench Work 102 $4,283 $436,866 $24,138 2,462,076.00 464%

Structural (Building Trades) 300 $4,855 $1,456,500 $28,178 8,453,400.00 480%

Miscellaneous 298 $3,591 $1,070,118 $22,936 6,834,928.00 539%

Total 8,5591$4,961 $47,773,309 $28,517 251,354,558.00 426%

Table 79

Source: VR&E Program Management Reports (FY 2001)

1Does not include 1557 persons who went to independent living and do not have earnings.

The following table shows the distribution of average annual earnings before entering

the program and following rehabilitation, by occupational categories.

b. Demographic Characteristics of Participants Who Successfully Completed

Training

By Gender

Veterans Who Successfully Achieved Rehabilitation

by Gender During Fiscal Year 2001

Female Male Total

Number 1,802 8,314 10,116

Percent 17.8% 82.2% 100.0%

Table 80

Source: VR&E Program Management Reports (FY 2001)

Benefits Delivery Network - Data Warehouse

Note: The distribution of participants by gender is shown for each type of training. A

subsistence allowance is paid to participants for some or all of the time they are in the training

program.
Chapter 2 Business During FY 2001

76

By Age

Veterans Who Successfully Achieved Rehabilitation by Age During Fiscal

Year 2001

Age

17 – 21

Age

22 – 29

Age

30 – 39

Age

40 - 49

Age

50 – 59

Age >60 Total for

All Ages

Number 8 1,007 3,079 3,324 2,231 467 10,116

Percent 0.1% 10.0% 30.4% 32.9% 22.1% 4.6% 100.0%

Table 81

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

By Prior Education Level

Veterans Who Successfully Achieved Rehabilitation by Prior Education

Level During Fiscal Year 2001

Less Than

High School

High School Post

High School

Four Year

College

Degree

Graduate

Training

Total

Number 116 5,350 3,443 854 353 10,116

Percent 1.1% 52.9% 34.0% 8.4% 3.5% 100%

Table 82

Source: VR&E Program Management Reports (FY 2001) - Benefits Delivery Network - Data Warehouse

By Dependency Status

Veterans Who Successfully Achieved Rehabilitation by Dependency

Status During Fiscal Year 2001

Single Single With

Children

Married Married

With

Children

Dependent

Parent(s)

Total1

Number 1,868 894 1,749 4,001 18 8,530

Percent 21.9% 10.5% 20.5% 46.9% 0.2% 100.0%

Table 83

VR&E Program Management Reports (FY 2001) – Benefits Delivery Network – Data Warehouse

1

 Does not include 1586 veterans whose dependency status is unknown.
Chapter 2 Business During FY 2001

77

By Branch of Service

Branch-of-service distribution among those who completed rehabilitation programs.

Note: Consistent with requirements established in Title 38 of the United States Code Section

101, service in the National Oceanic and Atmospheric Administration (NOAA) and the Public

Health Service qualify persons for vocational rehabilitation programs.

Veterans Who Successfully Achieved Rehabilitation by Branch Of Service

During Fiscal Year 2001

Army Navy Air

Force

Marine

Corps

Coast

Guard

Other1Total

Number 4,524 2,232 1,878 1,177 158 147 10,116

Percent 44.7% 22.1% 18.6% 11.6% 1.6% 1.5% 100.0%

Table 84

Source: VR&E Program Management Reports (FY 2001)-Benefits Delivery Network – Data Warehouse

1Other includes 2 from National Oceanic and Atmospheric Administration

By Length of Service

Length of time in service among veterans who completed rehabilitation programs

Veterans Participating in a Vocational Training

Program by Length of Service

Beginning Fiscal Year 2001

Number Percent

3 Months or Less 37 0.4%

3-6 Months 105 1.0%

6 Months-2 Years 1,114 11.1%

2-4 Years 2,453 24.3%

4-10 Years 2,730 27.1%

10-15 Years 1,014 10.1%

15-20 Years 876 8.7%

20-30 Years 1,692 16.2%

Over 30 Years 56 0.6%

Total 10,077 100%

Table 85

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network Data

Warehouse
Chapter 2 Business During FY 2001

78

By Period of Service

Veterans service periods among those who completed rehabilitation programs

Veteran Who Successfully Achieved Rehabilitation by Period of Service

During Fiscal Year 2001

World

War II

Post

World

War II1

Korean

War

Post

Korean

War1

Vietnam

Era

Post

Vietnam

Era1

Gulf War

Era

Total All

Service

Periods

 Number 57 14 55 93 1,240 1,996 6,661 10,116

 Percent 0.6% 0.1% 0.5% 0.9% 12.3% 19.7% 65.8% 100%

Table 86

Source : VR&E Program Management Reports (FY2001) – Benefits Delivery Network – Data Warehouse

1These three periods are generally combined in “Peacetime” service in other sections of this report.

Interrupted:

While not a step toward the goal of rehabilitation, another status, Interrupted, exists for those

veterans who must temporarily suspend active participation in their programs. A veteran who

is actively participating in a program of rehabilitation services may find that it is necessary to

temporarily suspend his/her rehabilitation program in order to resolve a pressing need, most

frequently related to his/her disabling condition. The case manager continues to provide

counseling and other assistance to the veteran and his/her family with the intent of resolving

the need and allowing the veteran to return to active participation in the program.
79

CHAPTER 3

BUSINESS BEGINNING FISCAL YEAR 2002

 Summary of Active Accounts for All Benefits Programs at the Beginning

 of Fiscal Year 2002

The following three tables summarize the number of active beneficiaries in VA benefits

programs at the beginning of fiscal year 2002 and the monetary value of their benefits.

Table 1 pertains to programs that pay monthly benefits. It shows the total number of people

who were receiving the benefit at the beginning of fiscal year 2002.

Summary of Beneficiaries Receiving Benefits for Programs That Pay Ongoing

Benefits at the Beginning of Fiscal Year 2002

Benefit Programs Number

of People

Percent

of Total

Total

Annual Amounts

Average

Annual Amounts

Compensation - Disability 2,321,103 72.0% $15,806,234,628 $6,810

Compensation - Death1313,540 9.7% $3,559,505,520 $11,353

Pension - Disability 348,052 10.8% $2,173,288,320 $6,244

Pension - Death 241,467 7.5% $647,578,584 $2,682

Total 3,224,162 100.0% $22,186,607,052 $6,881

Table 1

1 Includes the DIC and Death Compensation programs

Table 2 pertains to programs that pay monthly benefits to trainees only during a period of

training. The “Number of People” refers to those receiving benefits at the beginning of fiscal

year 2002.

Summary of Beneficiaries Receiving Benefits for Programs That

Pay Benefits During Training at the Beginning of Fiscal Year 2002

Benefit Programs Number of People Percent of Total

Education 230,551 88.2%

Vocational Rehabilitation 30,833 11.8%

Total 261,384 100%

Table 2
Chapter 3 Business Beginning in FY 2002

80

Table 3 pertains to programs that pay benefits when certain events occur, such as death of the

insured veteran or default on a mortgage. For Life Insurance, the monetary amount represents

the face value of policies in effect at the beginning of fiscal year 2002. For Home Loan

Guaranty, the monetary amount represents the guaranty obligations (not the value of the

underlying mortgages) of all guaranties in effect at the beginning of fiscal year 2002. For the

Life Insurance and Home Loan Guaranty programs, the “Total Coverage Amounts” do not

represent benefits actually paid out during the year. Instead, they represent potential liabilities

that could be paid at some time in the future.

Summary of All Benefits That Constitute Potential Liabilities at the Beginning of

Fiscal Year 2002

Benefit Programs Number of

Participants

Percent of

Total

Total Coverage

Amounts

Average

Coverage

Amounts

Life Insurance 4,867,612 61.4% $641,068,691,952 $131,701

Home Loan Guaranty13,055,903 38.6% $84,905,523,208 $27,784

Total 7,923,515 100% $725,974,215,160 $159,485

Table 3

1

 Includes direct loans sold and later guaranteed

Individual Data for Each Benefit Program

The following sections of this chapter are organized by benefit program. Each section

provides information about people receiving benefits at the beginning of fiscal year 2002.

Many of the tables below correspond with tables in Chapter 2 that provide similar information.

The distinction is that the following tables describe the entire population of program

beneficiaries at the beginning of fiscal year 2002. Tables in Chapter 2 describe only those

program beneficiaries who began receiving benefits during fiscal year 2002.
Chapter 3 Business Beginning in FY 2002

81

1. COMPENSATION -- BASED UPON SERVICE-CONNECTED DISABILITY

a. Total Veterans Receiving Service-Connected Disability Compensation

This table shows the total number of veterans, by period of service, receiving disability

compensation at the beginning of fiscal year 2002. Also shown are projected total

annual and average annual payments to these veterans if all continue on the benefit

rolls, receiving the same compensation throughout the fiscal year.

Total Veterans Receiving Service-Connected Disability

Benefits Beginning of Fiscal Year 2002

Period of

Service

Number of

Veterans

Percent of

Total

Total Annual

Amounts

Average Annual

Amounts

Mexican Border 5 0.0% $54,336 $10,867

World War I 26 0.0% $212,028 $8,155

World War II 470,186 20.3% $2,956,889,496 $6,289

Korean War 166,362 7.2% $1,228,628,004 $7,385

Vietnam Era 749,554 32.3% $6,504,538,848 $8,678

Gulf War Era 365,780 15.8% $1,761,775,788 $4,816

Peacetime

Periods

569,190 24.5% $3,354,136,128 $5,893

TOTAL 2,321,103 100.0% $15,806,234,628 $6,810

Table 4

Source: Benefits Delivery Network - RCS 20-0221

b. Total Number of Veterans Receiving Disability Compensation Shown by

Combined Degree of Disability

The combined degree of disability is expressed as a percentage (from zero to 100 in

increments of 10) and represents the overall disabling effect on a veteran of all his or

her service-connected disabilities. Disability compensation monetary amounts are set

by Congress and correspond to the combined degree of disability. The table (on the

next page) shows the number of veterans receiving compensation, sorted by combined

percentage of disability. It also shows the projected total annual and average annual

payments to these veterans for fiscal year 2002.

Note: “Percent of combined disability” is not calculated by summing all the individual degrees

of disability. Instead, a rating formula is applied to calculate the overall disabling effect of the

veteran’s service-connected conditions. Under certain circumstances, a number of disabilities

individually evaluated zero percent produce 10 percent combined disability (as directed in 38

Code of Federal Regulation 3.324) and entitle the veteran to receive disability compensation.

These will be called “compensable zeros” and are shown in the 0% column of this table.
Chapter 3 Business Beginning in FY 2002

82

Total Service-Connected Benefits by Combined Percent of Disability

Beginning of Fiscal Year 2002

Combined

Degree

Number Percent of Total Total Annual

Amounts

Average Annual

Amounts

0% 16,906 0.7% $14,227,032 $842

10% 822,788 35.4% $1,002,003,060 $1,218

20% 372,113 16.0% $868,942,068 $2,335

30% 308,156 13.3% $1,228,811,904 $3,988

40% 200,954 8.7% $1,152,790,848 $5,737

50% 121,316 5.2% $980,027,436 $8,078

60% 126,788 5.5% $1,749,085,776 $13,795

70% 93,913 4.0% $1,812,372,216 $19,298

80% 56,945 2.5% $1,242,776,412 $21,824

90% 26,908 1.2% $643,477,836 $23,914

100% 174,316 7.5% $5,111,720,040 $29,324

TOTAL 2,321,103 100.0% $15,806,234,628 $6,810

Number of beneficiaries by combined percentage of disability 0% thru 30% - 1,519,963

This group as a percentage of the whole - 65.5%

Table 5

Source: Benefits Delivery Network - RCS 20-0223

c. Total Number of Individual Service-Connected Disabilities

As noted above, a veteran may have more than one disability. In such cases, each

disability is evaluated according to its disabling effect, without regard to other disabling

conditions present. A rating formula is then applied to assess the overall disabling

effect (combined degree) of all the veteran’s service-connected conditions. In contrast

to the previous table, which organized information according to the number of serviceconnected veterans and their combined evaluations, the following table organizes

information according to the number of service-connected disabilities and their separate

evaluations. The table includes the total number of veterans receiving compensation

and the average number of service-connected disabilities per veteran. A “zero percent”

service-connected disability rating means that a disability exists and is related to the

veteran’s service but is not so disabling that it entitles the veteran to compensation

payments.

Data for the following tables are taken from compensation payment records.

Consequently, the disabilities of service-connected veterans who don’t receive

compensation (because their combined disability ratings are zero percent) are not

represented in the table. Zero percent disabilities shown in the table are veterans who

receive compensation.
Chapter 3 Business Beginning in FY 2002

83

Total Individual Service-Connected Disabilities by Percent

Veterans Receiving Compensation Beginning of Fiscal Year 2002

Number of Disabilities Percent of All

Disabilities

0% 2,087,669 35.0%

10% 2,262,854 37.9%

20% 530,818 8.9%

30% 469,345 7.9%

40% 158,554 2.7%

50% 114,140 1.9%

60% 106,754 1.8%

70% 54,290 0.9%

80% 8,315 0.1%

90% 2,689 0.0%

100% 172,254 2.9%

Total 5,967,682 100.0%

Total Veterans 2,321,103

Average number of disabilities per veteran 2.57

Number of Disabilities 0% thru 30%: 5,350,686

Percent of all Disabilities: 89.7%

Table 6

Source: Benefits Delivery Network - RCS 20-0227 and COIN CP-127

d. Individual Service-Connected Disabilities by Body Systems

The following table shows all service-connected disabilities for veterans receiving

compensation at the beginning of fiscal year 2002, sorted by body system and listed in

descending order of frequency.

Ranking of Individual Service-Connected Disabilities by Body System

Veterans Receiving Compensation Beginning of Fiscal Year 2002

Body System Total

Number

Percent

of Total

Body System Total

Number

Percent

of Total

Musculoskeletal System 2,412,412 40.4% Genitourinary System 145,938 2.4%

Skin 731,378 12.3% Eye 104,472 1.8%

Impairment of Auditory Acuity 530,931 8.9% Endocrine System 68,040 1.1%

Digestive System 434,606 7.3% Infectious Diseases, Immune

Disorders, Nutritional Disorder

46,714 0.8%

Mental Disorders 414,679 6.9% Gynecological Conditions 36,667 0.6%

Cardiovascular System 357,259 6.0% Dental and Oral Conditions 27,572 0.5%

Neurological Conditions 331,653 5.6% Hemic and Lymphatic Systems 21,471 0.4%

Respiratory System 303,890 5.1% Grand Total - All Conditions 5,967,682 100.0%

Table 7

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

84

Individual Service-Connected Disabilities by Body System and Degree of

Disability

VBA assigned 946 diagnostic codes to describe the 5,967,682 separate serviceconnected disabilities for veterans receiving disability compensation at the beginning of

fiscal year 2002. Diagnostic codes are four to eight-digit numbers that specify medical

conditions. These numeric diagnostic codes are in Title 38, Code of Federal

Regulations, Part 4.

The following four-page table identifies the total number of individual service-connected

disabilities, grouped by body systems and percent of disability assigned. Body system

groupings are shown in the numeric order of the diagnostic codes associated with the

body system. They body systems and their numeric codes are summarized here:

Musculoskeletal System (Codes 5000-5399)

Eye (Codes 6000-6099)

Impairment of Auditory Acuity (Codes 6100-6299)

Infectious Diseases, Immune Disorders,

Nutritional Disorder (Codes 6300-6399)

Respiratory System (Codes 6501-6899)

Cardiovascular System (Codes 7000-7199)

Digestive System (Codes 7200-7399)

Genitourinary System (Codes 7500-7599)

Gynecological Conditions (Codes 7610-7699)

Hemic and Lymphatic Systems (Codes 7700-7799)

Skin (Codes 7800-7899)

Endocrine System (Codes 7900-7999)

Neurological Conditions (Codes 8000-8999)

Mental Disorders (Codes 9000-9599)

Dental and Oral Conditions (Codes 9900-9999)
Chapter 3 Business Beginning in FY 2002

85

Total Individual Service-Connected Disabilities by Percent and Body System

for Veterans Receiving Compensation Beginning of Fiscal Year 2002

0% 10% 20%

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

628,351 26.0% 1,115,944 46.3% 354,902 14.7%

Eye

(Codes 6000-6099)

32,220 30.8% 29,157 27.9% 5,370 5.1%

Impairment of Auditory Acuity

(Codes 6100-6299)

275,212 51.8% 209,943 39.5% 16,517 3.1%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

37,830 81.0% 3,329 7.1% 626 1.3%

Respiratory System

(Codes 6501-6899)

142,499 46.9% 93,898 30.9% 8,816 2.9%

Cardiovascular System

(Codes 7000-7199)

56,294 15.8% 173,740 48.6% 29,490 8.3%

Digestive System

(Codes 7200-7399)

250,530 57.6% 114,427 26.3% 29,962 6.9%

Genitourinary System

(Codes 7500-7599)

73,088 50.1% 31,548 21.6% 11,100 7.6%

Gynecological Conditions

(Codes 7610-7699)

13,238 36.1% 5,974 16.3% 121 0.3%

Hemic and Lymphatic Systems

(Codes 7700-7799)

5,880 27.4% 1,519 7.1% 1,019 4.7%

Skin

(Codes 7800-7899)

480,836 65.7% 216,016 29.5% 4,602 0.6%

Endocrine System

(Codes 7900-7999)

5,714 8.4% 24,661 36.2% 23,241 34.2%

Neurological Conditions

(Codes 8000-8999)

51,498 15.5% 133,645 40.3% 43,012 13.0%

Mental Disorders

(Codes 9000-9599)

17,984 4.3% 101,373 24.4% 274 0.1%

Dental and Oral Conditions

(Codes 9900-9999)

16,495 59.8% 7,680 27.9% 1,766 6.4%

Grand Total - All Conditions

(Codes 5000-9999)

2,087,669 35.0% 2,262,854 37.9% 530,818 8.9%

Table 8

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

86

Total Individual Service-Connected Disabilities by Percent and Body System

for Veterans Receiving Compensation Beginning of Fiscal Year 2002

30% 40% 50%

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

136,635 5.7% 90,887 3.8% 19,093 0.8%

Eye

(Codes 6000-6099)

23,016 22.0% 7,298 7.0% 1,370 1.3%

Impairment of Auditory Acuity

(Codes 6100-6299)

8,900 1.7% 8,471 1.6% 2,736 0.5%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

1,861 4.0% 257 0.6% 66 0.1%

Respiratory System

(Codes 6501-6899)

35,255 11.6% 2,183 0.7% 3,821 1.3%

Cardiovascular System

(Codes 7000-7199)

55,919 15.7% 5,884 1.6% 2,400 0.7%

Digestive System

(Codes 7200-7399)

17,886 4.1% 8,536 2.0% 834 0.2%

Genitourinary System

(Codes 7500-7599)

11,792 8.1% 3,662 2.5% 36 0.0%

Gynecological Conditions

(Codes 7610-7699)

8,685 23.7% 337 0.9% 8,091 22.1%

Hemic and Lymphatic Systems

(Codes 7700-7799)

10,041 46.8% 170 0.8% 24 0.1%

Skin

(Codes 7800-7899)

23,154 3.2% 2,074 0.3% 4,117 0.6%

Endocrine System

(Codes 7900-7999)

1,594 2.3% 7,329 10.8% 57 0.1%

Neurological Conditions

(Codes 8000-8999)

42,597 12.8% 21,019 6.3% 10,288 3.1%

Mental Disorders

(Codes 9000-9599)

90,900 21.9% 153 0.0% 61,038 14.7%

Dental and Oral Conditions

(Codes 9900-9999)

1,110 4.0% 294 1.1% 169 0.6%

Grand Total - All Conditions

(Codes 5000-9999)

469,345 7.9% 158,554 2.7% 114,140 1.9%

Table 8

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

87

Total Individual Service-Connected Disabilities by Percent and Body System

for Veterans Receiving Compensation Beginning of Fiscal Year 2002

60% 70% 80%

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

43,578 1.8% 4,472 0.2% 2,027 0.1%

Eye

(Codes 6000-6099)

916 0.9% 1,063 1.0% 129 0.1%

Impairment of Auditory Acuity

(Codes 6100-6299)

2,805 0.5% 1,046 0.2% 1,586 0.3%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

1,548 3.3% 17 0.0% 81 0.2%

Respiratory System

(Codes 6501-6899)

9,754 3.2% 247 0.1% 404 0.1%

Cardiovascular System

(Codes 7000-7199)

21,378 6.0% 364 0.1% 121 0.0%

Digestive System

(Codes 7200-7399)

5,290 1.2% 109 0.0% 98 0.0%

Genitourinary System

(Codes 7500-7599)

7,207 4.9% 9 0.0% 350 0.2%

Gynecological Conditions

(Codes 7610-7699)

79 0.2% 3 0.0% 19 0.1%

Hemic and Lymphatic Systems

(Codes 7700-7799)

532 2.5% 134 0.6% 6 0.0%

Skin

(Codes 7800-7899)

84 0.0% 38 0.0% 304 0.0%

Endocrine System

(Codes 7900-7999)

3,660 5.4% 20 0.0% 10 0.0%

Neurological Conditions

(Codes 8000-8999)

9,774 2.9% 3,243 1.0% 3,124 0.9%

Mental Disorders

(Codes 9000-9599)

139 0.0% 43,522 10.5% 55 0.0%

Dental and Oral Conditions

(Codes 9900-9999)

10 0.0% 3 0.0% 1 0.0%

Grand Total - All Conditions

(Codes 5000-9999)

106,754 1.8% 54,290 0.9% 8,315 0.1%

Table 8

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

88

Total Individual Service-Connected Disabilities by Percent and Body System

for Veterans Receiving Compensation Beginning of Fiscal Year 2002

90% 100% Total

Body System Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Number of

Disabilities

Percent

of System

Musculoskeletal System

(Codes 5000-5399)

1,138 0.0% 15,385 0.6% 2,412,412 100.0%

Eye

(Codes 6000-6099)

445 0.4% 3,488 3.3% 104,472 100.0%

Impairment of Auditory Acuity

(Codes 6100-6299)

471 0.1% 3,244 0.6% 530,931 100.0%

Infectious Diseases, Immune

Disorders, Nutritional Disorder

(Codes 6300-6399)

2 0.0% 1,097 2.3% 46,714 100.0%

Respiratory System

(Codes 6501-6899)

4 0.0% 7,009 2.3% 303,890 100.0%

Cardiovascular System

(Codes 7000-7199)

14 0.0% 11,655 3.3% 357,259 100.0%

Digestive System

(Codes 7200-7399)

0 0.0% 6,934 1.6% 434,606 100.0%

Genitourinary System

(Codes 7500-7599)

0 0.0% 7,146 4.9% 145,938 100.0%

Gynecological Conditions

(Codes 7610-7699)

0 0.0% 120 0.3% 36,667 100.0%

Hemic and Lymphatic Systems

(Codes 7700-7799)

0 0.0% 2,146 10.0% 21,471 100.0%

Skin

(Codes 7800-7899)

6 0.0% 147 0.0% 731,378 100.0%

Endocrine System

(Codes 7900-7999)

10 0.0% 1,744 2.6% 68,040 100.0%

Neurological Conditions

(Codes 8000-8999)

596 0.2% 12,857 3.9% 331,653 100.0%

Mental Disorders

(Codes 9000-9599)

3 0.0% 99,238 23.9% 414,679 100.0%

Dental and Oral Conditions

(Codes 9900-9999)

0 0.0% 44 0.2% 27,572 100.0%

Grand Total - All Conditions

(Codes 5000-9999)

2,689 0.0% 172,254 2.9% 5,967,682 100.0%

Table 8

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

89

e. Most Prevalent Service-Connected Disabilities

This section presents data identifying the most common service-connected disabilities

at the beginning of the fiscal year.

By Body Systems

The three-page table identifies the five most prevalent individual disabilities (by

diagnostic code) for each of the body systems, in descending order of frequency.

Note: The “Percent of System Total” column indicates the proportion of service-connected

disabilities within each body system that have been assigned the diagnostic code shown at the

left of each row. The “Percent of Grand Total” column indicates the proportion of serviceconnected disabilities in all body systems that have been assigned the diagnostic code at the

left of each row.
Chapter 3 Business Beginning in FY 2002

90

Most Prevalent Service-Connected Disabilities within Body Systems for Veterans Receiving

Compensation Beginning of Fiscal Year 2002

Code Body System and Disability Total Number Percent of

System Total

Percent of

Grand Total

Musculoskeletal System 2,412,412 100.0% 40.4%

5299 Skeletal conditions 251,032 10.4% 4.2%

5257 Knee, other impairment of 227,434 9.4% 3.8%

5010 Arthritis, due to trauma 198,323 8.2% 3.3%

5295 Lumbosacral strain 174,447 7.2% 2.9%

5293 Intervertebral disc syndrome 139,997 5.8% 2.3%

Skin 731,378 100.0% 12.3%

7805 Scars, other1284,537 38.9% 4.8%

7800 Scars, disfiguring, head, face, neck 93,687 12.8% 1.6%

7899 Skin condition 84,379 11.5% 1.4%

7804 Scars, superficial, tender and painful on objective

demonstration

76,276 10.4% 1.3%

7806 Eczema 58,266 8.0% 1.0%

Impairment of Auditory Acuity 530,931 100.0% 8.9%

6260 Tinnitus 162,409 30.6% 2.7%

6100 Auditory, acuity impairment, 0% 158,097 29.8% 2.6%

6297 Hearing Loss 69,813 13.1% 1.2%

6200 Otitis media, suppurative, chronic 23,057 4.3% 0.4%

6101 Auditory, acuity impairment, 10% 12,982 2.4% 0.2%

Digestive System 434,606 100.0% 7.3%

7336 Hemorrhoids, external or internal 123,359 28.4% 2.1%

7305 Ulcer, duodenal 60,526 13.9% 1.0%

7338 Hernia, inguinal 49,216 11.3% 0.8%

7346 Hernia, hiatal 38,893 8.9% 0.7%

7399 Digestive system, disease of 30,663 7.1% 0.5%

Mental Disorders 414,679 100.0% 6.9%

9411 Post-traumatic stress disorder 144,958 35.0% 2.4%

9400 Generalized anxiety disorder 81,532 19.7% 1.4%

9203 Schizophrenic reaction, paranoid type 34,965 8.4% 0.6%

9204 Schizophrenic reaction, chronic undifferentiated type 23,067 5.6% 0.4%

9405 Depressive reaction 18,337 4.4% 0.3%

Table 9

Source: Benefits Delivery Network - RCS 20-0227

1

 See Footnote for Table 10, Chapter 2
Chapter 3 Business Beginning in FY 2002

91

Most Prevalent Service-Connected Disabilities within Body Systems for Veterans Receiving

Compensation Beginning of Fiscal Year 2002

Code Body System and Disability Total

Number

Percent of

System Total

Percent of

Grand Total

Cardiovascular System 357,259 100.0% 6.0%

7101 Hypertensive vascular disease 146,729 41.1% 2.5%

7122 Cold injury residuals 47,680 13.3% 0.8%

7120 Varicose veins 41,558 11.6% 0.7%

7005 Arteriosclerotic heart disease 35,929 10.1% 0.6%

7000 Valvular heart disease 13,081 3.7% 0.2%

Neurological Conditions and Convulsive Disorders 331,653 100.0% 5.6%

8100 Migraine 47,357 14.3% 0.8%

8515 Median nerve, paralysis of 26,098 7.9% 0.4%

8045 Brain disease due to trauma 23,650 7.1% 0.4%

8516 Ulnar nerve, paralysis of 20,042 6.0% 0.3%

8520 Sciatic nerve, paralysis of 19,519 5.9% 0.3%

Respiratory System 303,890 100.0% 5.1%

6602 Asthma, bronchial 45,550 15.0% 0.8%

6513 Sinusitis maxillary, chronic 32,581 10.7% 0.5%

6599 Nose and throat, disease of 24,938 8.2% 0.4%

6502 Septum, nasal, deviation of 24,457 8.0% 0.4%

6510 Sinusitis, pansinusitis, chronic 16,410 5.4% 0.3%

Genitourinary System 145,938 100.0% 2.4%

7599 Genitourinary system condition 28,760 19.7% 0.5%

7527 Prostate gland injuries, infections, postoperative 25,363 17.4% 0.4%

7528 Malignant neoplasm 14,311 9.8% 0.2%

7508 Nephrolithiasis 13,785 9.4% 0.2%

7512 Cystitis, chronic 8,373 5.7% 0.1%

Eye 104,472 100.0% 1.8%

6099 Eye condition 11,936 11.4% 0.2%

6018 Eye, Conjunctivitis other, chronic 8,843 8.5% 0.1%

6070 Blindness, light perception only one eye, other normal 7,374 7.1% 0.1%

6009 Eye, injury of, unhealed 6,752 6.5% 0.1%

6066 Blindness, anatomical loss one eye, other normal 6,301 6.0% 0.1%

Table 9

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

92

Most Prevalent Service-Connected Disabilities within Body Systems for Veterans Receiving

Compensation Beginning of Fiscal Year 2002

Code Body System and Disability Total

Number

Percent of

System

Total

Percent of Grand

Total

Endocrine System 68,040 100.0% 1.1%

7913 Diabetes mellitus 46,395 68.2% 0.8%

7903 Hypothyroidism 9,721 14.3% 0.2%

7900 Hyperthyroidism 4,545 6.7% 0.1%

7999 Endocrine system condition 2,290 3.4% 0.0%

7914 Neoplasm, malignant, endocrine system 1,227 1.8% 0.0%

Infectious Diseases, Immune Disorders, Nutritional

Deficiencies

46,714 100.0% 0.8%

6304 Malaria 33,198 71.1% 0.6%

6399 Infectious disease, immune disorder, nutritional deficiency 3,251 7.0% 0.1%

6351 HIV-Related illness 2,557 5.5% 0.0%

6350 Lupus erythematosus, systemic 1,728 3.7% 0.0%

6313 Avitaminosis 1,157 2.5% 0.0%

Gynecological Conditions 36,667 100.0% 0.6%

7617 Uterus and ovaries, removal of, complete 7,293 19.9% 0.1%

7618 Uterus, removal of, including corpus 7,125 19.4% 0.1%

7699 Gynecological condition or disorder of the breast 6,046 16.5% 0.1%

7628 Benign neoplasms, gynecological or breast 2,996 8.2% 0.1%

7619 Ovary, removal of 2,861 7.8% 0.0%

Dental and Oral Conditions 27,572 100.0% 0.5%

9905 Temporomandibular articulation, limited motion 8,256 29.9% 0.1%

9999 Dental and oral conditions 8,000 29.0% 0.1%

9904 Mandible, malunion of 6,635 24.1% 0.1%

9913 Teeth, loss of, due to loss of body of maxilla or mandible 1,458 5.3% 0.0%

9910 Maxilla, loss of whole or part, nonunion of or malunion of 935 3.4% 0.0%

Hemic and Lymphatic Systems 21,471 100.0% 0.4%

7706 Splenectomy 7,309 34.0% 0.1%

7799 Hemic and lymphatic system condition 3,983 18.6% 0.1%

7709 Lymphoganulomatosis (Hodgkin's disease) 2,638 12.3% 0.0%

7715 Non-Hodgkin's lymphoma 2,520 11.7% 0.0%

7700 Anemia, hypochromic-microcytic and megaloblastic 1,603 7.5% 0.0%

Grand Total - All Body Systems 5,967,682 100.0% 100.0%

Table 9

Source: Benefits Delivery Network - RCS 20-0227
Chapter 3 Business Beginning in FY 2002

93

By the 20 Most Prevalent Disabilities

The next table identifies the 20 most prevalent service-connected disabilities (by

diagnostic code) for veterans receiving compensation at the beginning of fiscal year

2002.

Note: The “Percent Within System” column indicates the proportion of service-connected

disabilities within each body system that have been assigned the diagnostic code shown at the

left of each row. The “Percent of Total” column shows the proportion of all 5,967,682 serviceconnected disabilities that have been assigned the diagnostic code shown at the left of each

row. The “Cumulative Percent” column shows the sum of the “Percent of Total” box in each row

for the associated diagnostic code and all preceding diagnostic codes. For example, 31.6

percent of all disabilities rated service-connected are accounted for by the 10 most prevalent

service-connected diagnostic codes.

Most Prevalent Disabilities for Veterans Receiving Compensation

Beginning of Fiscal Year 2002

Diagnostic

Code

Disability Total Percent

Within System

FY 2001

Percent of

Total

FY 2001

Cumulative

Percent

FY 2001

7805 Scars, other14 284,537 38.9% 4.8% 4.8%

5299 Skeletal conditions 251,032 10.4% 4.2% 9.0%

5257 Knee, other impairment of 227,434 9.4% 3.8% 12.8%

5010 Arthritis, due to trauma 198,323 8.2% 3.3% 16.1%

5295 Lumbosacral strain 174,447 7.2% 2.9% 19.0%

6260 Tinnitus 162,409 30.6% 2.7% 21.8%

6100 Auditory, acuity impairment, 0% 158,097 29.8% 2.6% 24.4%

7101 Hypertensive vascular disease 146,729 41.1% 2.5% 26.9%

9411 Post-traumatic stress disorder 144,958 35.0% 2.4% 29.3%

5293 Intervertebral disc syndrome 139,997 5.8% 2.3% 31.6%

7336 Hemorrhoids, external or internal 123,359 28.4% 2.1% 33.7%

7800 Scars, disfiguring, head, face, neck 93,687 12.8% 1.6% 35.3%

5003 Arthritis, degenerative 91,626 3.8% 1.5% 36.8%

7899 Skin Condition 84,379 11.5% 1.4% 38.2%

9400 Generalized anxiety disorder 81,532 19.7% 1.4% 39.6%

7804 Scars, superficial, tender, painful 76,276 10.4% 1.3% 40.9%

5271 Ankle, limited motion of 75,180 3.1% 1.3% 42.1%

6297 Hearing Loss 69,813 13.1% 1.2% 43.3%

5284 Foot injuries, other 64,625 2.7% 1.1% 44.4%

7305 Ulcer, duodenal 60,526 13.9% 1.0% 45.4%

TOTAL NUMBER OF DISABILITIES IN FY 2001 5,967,682 100.0%

Table 10

Source: Benefits Delivery Network - RCS 20-0227

 

14 See footnote for Table 10, Chapter 2.
Chapter 3 Business Beginning in FY 2002

94

By Period of Service

The next five tables in this section show the 10 service-connected disabilities most

prevalent (by diagnostic code) for veterans of World War II, the Korean War, the

Vietnam Era, the Gulf War Era, and the various Peacetime periods. Data for WWI

veterans and other periods with very few beneficiaries are not included.

Most Prevalent World War II Disabilities

Beginning of Fiscal Year 2002

Diagnostic

Code

Disability Number of

Disabilities

Percent of

Total

9400 Generalized anxiety disorder 48,979 5.7%

7805 Scars, other15 41,080 4.7%

7122 Cold injury residuals 29,783 3.4%

5010 Arthritis, due to trauma 28,781 3.3%

5276 Flatfoot, acquired 21,703 2.5%

7804 Scars, superficial, tender, painful 18,828 2.2%

9411 Post-traumatic stress disorder 18,096 2.1%

7800 Scars, disfiguring, head, face, neck 15,625 1.8%

5314 Muscle injuries, thigh 14,231 1.6%

5311 Muscle injuries, foot and leg 14,206 1.6%

Total Number of Disabilities1865,430

Average Number of Disabilities Per Veteran 1.84

Total Number of Disability Codes 876

Total World War II Veterans With

Compensation2

470,186

Percent of All Veterans With Compensation 20.3%

Total World War II Veteran Population34,503,677

Percent of Total Veteran Population318.0%

Table 11

1

 Source: Benefits Delivery Network - RCS 20-0227

2

 Source: Benefits Delivery Network - RCS 20-0221

3

 Source: VA Office of Policy and Planning – Veteran Population as of September 30, 2001

 

15 See footnote for Table 10, Chapter 2.
Chapter 3 Business Beginning in FY 2002

95

Most Prevalent Korean War Disabilities

Beginning of Fiscal Year 2002

Diagnostic

Code

Disability Number of

Disabilities

Percent of

Total

7805 Scars, other16 17,703 5.2%

7122 Cold injury residuals 10,792 3.2%

5010 Arthritis, due to trauma 9,230 2.7%

7305 Ulcer, duodenal 8,323 2.4%

6260 Tinnitus 7,354 2.2%

7804 Scars, superficial, tender, painful 6,875 2.0%

9400 Generalized anxiety disorder 6,822 2.0%

9411 Post-traumatic stress disorder 6,524 1.9%

5299 Condition of skeletal conditions 6,452 1.9%

5257 Knee, other impairment of 6,411 1.9%

Total Number of Disabilities1339,855

Average Number of Disabilities Per Veteran 2.04

Total Number of Disability Codes 844

Total Korean War Veterans With Compensation2166,362

Percent of All Veterans With Compensation 7.2%

Total Korean War Veteran Population33,347,310

Percent of Total Veteran Population313.4%

Table 12

1

 Source: Benefits Delivery Network - RCS 20-0227

2

 Source: Benefits Delivery Network - RCS 20-0221

3

 Source: VA Office of Policy and Planning – Veteran Population as of September 30, 2001

 

16 See footnote for Table 10, Chapter 2.
Chapter 3 Business Beginning in FY 2002

96

Most Prevalent Vietnam Era Disabilities

Beginning of Fiscal Year 2002

Diagnostic

Code

Disability Number of

Disabilities

Percent of

Total

7805 Scars, other17 125,939 6.1%

9411 Post-traumatic stress disorder 106,809 5.1%

5299 Skeletal conditions 80,586 3.9%

5257 Knee, other impairment of 66,335 3.2%

6100 Auditory, acuity impairment, 0% 60,753 2.9%

6260 Tinnitus 57,981 2.8%

7101 Hypertensive vascular disease 55,545 2.7%

5010 Arthritis, due to trauma 53,332 2.6%

5295 Lumbosacral strain 52,840 2.5%

7336 Hemorrhoids, external or internal 50,066 2.4%

Total Number of Disabilities12,077,453

Average Number of Disabilities Per Veteran 2.77

Total Number of Disability Codes 879

Total Vietnam Era Veterans With Compensation2749,554

Percent of All Veterans With Compensation 32.3%

Total Vietnam Era Veteran Population37,916,774

Percent of Total Veteran Population331.6%

Table 13

1

 Source: Benefits Delivery Network - RCS 20-0227

2

 Source: Benefits Delivery Network - RCS 20-0221

3

 Source: VA Office of Policy and Planning – Veteran Population as of September 30, 2001

 

17 See footnote for Table 10, Chapter 2.
Chapter 3 Business Beginning in FY 2002

97

Most Prevalent Gulf War Era Disabilities

Beginning of Fiscal Year 2002

Diagnostic

Code

Disability Number of

Disabilities

Percent of

Total

5299 Skeletal conditions 77,849 6.4%

5257 Knee, other impairment of 63,966 5.3%

5295 Lumbosacral strain 54,091 4.5%

5010 Arthritis, due to trauma 52,826 4.3%

6260 Tinnitus 45,521 3.7%

7805 Scars, other18 42,523 3.5%

5293 Intervertebral disc syndrome 38,108 3.1%

7101 Hypertensive vascular disease 37,260 3.1%

6100 Auditory, acuity impairment, 0% 36,399 3.0%

5271 Ankle, limited motion of 26,966 2.2%

Total Number of Disabilities11,214,913

Average Number of Disabilities Per Veteran 3.32

Total Number of Disability Codes 844

Total Gulf War Era Veterans With Compensation2365,780

Percent of All Veterans With Compensation 15.8%

Total Gulf War Era Veteran Population33,095,952

Percent of Total Veteran Population312.4%

Table 14

1

 Source: Benefits Delivery Network - RCS 20-0227

2

 Source: Benefits Delivery Network - RCS 20-0221

3

 Source: VA Office of Policy and Planning – Veteran Population as of September 30, 2001

 

18 See footnote for Table 10, Chapter 2.
Chapter 3 Business Beginning in FY 2002

98

Most Prevalent Peacetime Period Disabilities

Beginning of Fiscal Year 2002

Diagnostic

Code

Disability Number of

Disabilities

Percent of

Total

5257 Knee, other impairment of 80,468 5.5%

5299 Skeletal conditions 77,075 5.3%

7805 Scars, other19 56,889 3.9%

5010 Arthritis, due to trauma 54,001 3.7%

5295 Lumbosacral strain 53,966 3.7%

7101 Hypertensive vascular disease 49,558 3.4%

6100 Auditory, acuity impairment, 0% 43,758 3.0%

5293 Intervertebral disc syndrome 42,205 2.9%

6260 Tinnitus 37,965 2.6%

7336 Hemorrhoids, external or internal 36,026 2.5%

Total Number of Disabilities11,459,447

Average Number of Disabilities Per Veteran 2.56

Total Number of Disability Codes 888

Total Peacetime Veterans With Compensation2569,190

Percent of All Veterans With Compensation 24.5%

Total Peacetime Veteran Population36,172,533

Percent of Total Veteran Population324.7%

Table 15

1

 Source: Benefits Delivery Network - RCS 20-0227

2

 Source: Benefits Delivery Network - RCS 20-0221

3

 Source: VA Office of Policy and Planning – Veteran Population as of September 30, 2001

 

19 See footnote for Table 10, Chapter 2.
Chapter 3 Business Beginning in FY 2002

99

g. Demographic Characteristics of Veterans Receiving Compensation

This section presents age and period of service information for all veterans with serviceconnected disabilities and in receipt of compensation at the beginning of fiscal year 2002.

By Age

The first table in this section shows the distribution, by age, of all veterans receiving

compensation.

Service-Connected Disability Compensation by Age

Beginning of Fiscal Year 2002

Age Total Veterans Percent of All

Ages

Annual Payments

Under 20 124 0.0% $382,764

20-29 74,004 3.2% $277,218,348

30-39 221,036 9.5% $1,092,039,252

40-49 388,489 16.7% $2,415,161,448

50-59 635,832 27.4% $5,210,200,788

60-69 305,329 13.2% $2,164,175,868

70-79 438,124 18.9% $2,991,171,588

80-89 246,544 10.6% $1,589,923,692

90 and Over 11,612 0.5% $65,925,276

Ages Unknown 9 0.0% $35,604

ALL AGES 2,321,103 100.0% $15,806,234,628

Average Age of Veterans: 58

Table 16

 Source: Benefits Delivery Network - RCS 20-0236
Chapter 3 Business Beginning in FY 2002

100

By Period of Service

The distribution of all veterans receiving compensation by period of service and by

combined degree of disability is shown in the next table.

Service-Connected Disability Compensation

By Period of Service and Combined Percent of Disability

Beginning of Fiscal Year 2002

Combined

Percent

World

War I1

World

War II

Korean

War

Vietnam

War

Gulf War

Era

Peacetime

Periods

Total For All

Periods

0% 0 7,009 4,906 1,749 573 2,669 16,906

Percent of All Periods 0.0% 41.5% 29.0% 10.3% 3.4% 15.8% 100.0%

10% 6 175,330 54,626 223,107 133,037 236,682 822,788

Percent of All Periods 0.0% 21.3% 6.6% 27.1% 16.2% 28.8% 100.0%

20% 3 63,761 23,062 103,031 75,052 107,204 372,113

Percent of All Periods 0.0% 17.1% 6.2% 27.7% 20.2% 28.8% 100.0%

30% 5 67,303 22,628 99,779 54,061 64,380 308,156

Percent of All Periods 0.0% 21.8% 7.3% 32.4% 17.5% 20.9% 100.0%

40% 5 38,454 14,004 66,572 39,294 42,625 200,954

Percent of All Periods 0.0% 19.1% 7.0% 33.1% 19.6% 21.2% 100.0%

50% 4 26,191 8,559 44,371 19,375 22,816 121,316

Percent of All Periods 0.0% 21.6% 7.1% 36.6% 16.0% 18.8% 100.0%

60% 2 28,920 11,026 43,307 17,084 26,449 126,788

Percent of All Periods 0.0% 22.8% 8.7% 34.2% 13.5% 20.9% 100.0%

70% 0 18,402 6,920 42,646 9,977 15,968 93,913

Percent of All Periods 0.0% 19.6% 7.4% 45.4% 10.6% 17.0% 100.0%

80% 1 12,612 4,644 23,670 6,206 9,812 56,945

Percent of All Periods 0.0% 22.1% 8.2% 41.6% 10.9% 17.2% 100.0%

90% 0 6,169 2,322 11,215 2,659 4,543 26,908

Percent of All Periods 0.0% 22.9% 8.6% 41.7% 9.9% 16.9% 100.0%

100% 5 26,035 13,665 90,107 8,462 36,042 174,316

Percent of All Periods 0.0% 14.9% 7.8% 51.7% 4.9% 20.7% 100.0%

Total Receiving Comp. 31 470,186 166,362 749,554 365,780 569,190 2,321,103

Percent of All Periods 0.0% 20.3% 7.2% 32.3% 15.8% 24.5% 100.0%

Total Veterans22,212 4,503,677 3,347,310 7,916,774 3,095,952 6,172,533 25,038,4593

Percent of All Veterans 0.0% 18.0% 13.4% 31.6% 12.4% 24.7% 100.0%

Table 17

Source: Benefits Delivery Network - RCS 20-0223

1

 Includes 5 veterans with Mexican Border service

2

 Source: VA Office of Policy and Planning – Veteran Population Estimates as of September 30, 2001

3 Veterans who served in more than one war period are counted in the latest period.
Chapter 3 Business Beginning in FY 2002

101

2. COMPENSATION -- BASED UPON SERVICE-CONNECTED DEATH

a. Total Number Of Beneficiaries Receiving DIC/Death Compensation Benefits at

the Beginning Of Fiscal Year 2002

This table shows the number of beneficiaries receiving DIC or Death Compensation

benefits, the total projected annual payment to beneficiaries, and the projected average

annual payment to each beneficiary.

Total Beneficiaries Receiving Service-Connected Death Benefits

Beginning of Fiscal Year 2002

Type of Benefit Number Percent of

Total

Total

Annual Amounts

Average

Annual

Amounts

DIC - Surviving Spouses 290,100 92.5% $3,468,231,210 $11,955

DIC - Surviving Children 12,516 4.0% $67,716,052 $5,410

DIC - Surviving Parents 9,384 3.0% $22,076,330 $2,353

SUBTOTAL 312,000 99.5% $3,558,023,592 $11,404

Death Compensation 1,540 0.5% $1,481,928 $962

GRAND TOTAL 313,540 100.0% $3,559,505,520 $11,353

Table 18

Source: Benefits Delivery Network - COIN CP-127 and RCS 20-0221

b. Demographic Characteristics of All DIC and Death Compensation

Beneficiaries

This section provides demographic characteristics of beneficiaries receiving DIC or

Death Compensation benefits at the beginning of fiscal year 2002.

By The Veteran’s Period of Service

Table 19, found on the next page, shows total beneficiaries receiving DIC or Death

Compensation sorted by the veteran’s period of service. Also shown are projected total

annual payments and average annual payments, by period of service and program.
Chapter 3 Business Beginning in FY 2002

102

Total Beneficiaries Receiving Service-Connected Death Benefits by Period of Service

Beginning of Fiscal Year 2002

Period of Service Number of

Beneficiaries1

Percent of

Beneficiaries

Total

Annual Amounts2

Average

Annual

Amounts

 Civil War 1 0.0% $11,404 $11,404

 Death Compensation 0 0.0% $0 $0

 DIC 1 0.0% $11,404 $11,404

 Spanish American War 12 0.0% $136,847 $11,404

 Death Compensation 0 0.0% $0 $0

 DIC 12 0.0% $136,847 $11,404

 Mexican Border Period 2 0.0% $22,808 $11,404

 Death Compensation 0 0.0% $0 $0

 DIC 2 0.0% $22,808 $11,404

 World War I 2,385 0.8% $27,187,912 $11,400

 Death Compensation 1 0.1% $962 $962

 DIC 2,384 0.8% $27,186,949 $11,404

 World War II 116,467 37.1% $1,321,372,613 $11,345

 Death Compensation 652 42.3% $627,414 $962

 DIC 115,815 37.1% $1,320,745,200 $11,404

 Korean Conflict 37,458 11.9% $419,034,071 $11,187

 Death Compensation 779 50.6% $749,625 $962

 DIC 36,679 11.8% $418,284,447 $11,404

 Vietnam Era 109,153 34.8% $1,244,751,390 $11,404

 Death Compensation 2 0.1% $1,925 $962

 DIC 109,151 35.0% $1,244,749,465 $11,404

 Gulf War Era 8,230 2.6% $93,854,276 $11,404

 Death Compensation 0 0.0% $0 $0

 DIC 8,230 2.6% $93,854,276 $11,404

 Peacetime 39,832 12.7% $453,134,199 $11,376

 Death Compensation 106 6.9% $102,003 $962

 DIC 39,726 12.7% $453,032,196 $11,404

 All Periods 313,540 100.0% $3,559,505,520 $11,353

 Death Compensation 1,540 100.0% $1,481,928 $962

 DIC 312,000 100.0% $3,558,023,592 $11,404

Table 19 

Source: Benefits Delivery Network - RCS 20-0221 and COIN CP-127

1

 The number of DIC beneficiaries for each period of service is calculated by multiplying the total number of beneficiaries from the COIN

CP-127 by the percentage of DIC cases for each period of service (derived from RCS 20-0221).

2

 The total annual amounts of DIC for each period of service are calculated by multiplying the percentage of beneficiaries for each period

of service (derived from RCS 20-0221) by the total annual amounts from COIN CP-127.
Chapter 3 Business Beginning in FY 2002

103

By Relationship to the Veteran

This table shows the distribution of DIC beneficiaries based upon relationship to the

veteran - surviving spouse, child, or dependent parent.

Total Beneficiaries Receiving DIC by Relationship

Beginning of Fiscal Year 2002

Surviving

Spouse

Children Parent Total

Beneficiaries

 Number 290,100 12,516 9,384 312,000

Percent 93.0% 4.0% 3.0% 100.0%

Table 20

Source: Benefits Delivery Network - COIN CP 127

By Age of Surviving Spouses

The age distribution of surviving spouses in receipt of DIC and the projected total

annual payments, by age group, is presented in the following table.

Surviving Spouses Receiving DIC by Age

Beginning of Fiscal Year 2002

Age Number Percent of All

Ages

Annual

Payments

Under Age 25 212 0.1% $2,459,371

25 - 35 2,501 0.9% $28,416,921

36 - 45 8,895 3.1% $101,533,119

46 - 55 27,248 9.4% $316,408,728

56 - 65 42,591 14.7% $506,475,714

66 - 75 75,544 26.0% $911,393,633

Over 75 133,109 45.9% $1,601,543,723

All Ages 290,100 100.0% $3,468,231,210

Table 21

Source: Benefits Delivery Network - COIN CP 127

By Dependency Status of Surviving Spouses

Surviving spouses with dependents are entitled to higher DIC payments than those with

no dependents. The following table provides a distribution of surviving spouses, sorted

by dependency status.

Dependency and Indemnity Compensation (DIC) by Surviving

Spouse and Dependents Beginning of Fiscal Year 2002

Surviving Spouses

Without

Dependents

Surviving Spouses

with Dependents

Total

Surviving Spouses

Number 279,849 10,251 290,100

Percent 96.5% 3.5% 100.0%

Table 22

Source: Benefits Delivery Network - COIN CP-127
Chapter 3 Business Beginning in FY 2002

104

By Age of Children

The following table shows the distribution of DIC children in two age categories: under

age 18 and over age 18. Children over age 18 are shown according to their eligibility

status:

• Those who are eligible because of school attendance

• Those who are eligible because of incapacity for self support prior to age 18.

Children Receiving DIC by Age

Beginning of Fiscal Year 2002

Under Age 181 Age 18 and

Over in

School

Age 18 and

Over and

Helpless

Total All

Categories

Number 4,517 971 7,028 12,516

Percent 36.1% 7.8% 56.2% 100.0%

Annual Payments $23,132,059 $2,839,359 $41,744,633 $67,716,052

Table 23

Source: Benefits Delivery Network – COIN CP-127

1 Includes 2,595 consolidated awards that account for more than one child.

By Marital Status of Surviving Parents

DIC benefit payment amounts are calculated according to the marital status of a

surviving parent. Marital status categories and their definitions follow:

• No Spouse - one parent is alive and is not married

• Spouse - both parents are alive and one or both married other persons;

• Apart - both parents are alive but do not live together;

• Together - both parents are alive and live together; or

• Remarried - one parent is alive and has remarried.

The following table shows the distribution of dependent parents, by marital status.

Surviving Parents Receiving DIC by Marital Status

Beginning of 2002

No Spouse Spouse Apart Together Remarried Total

Number 6,822 114 1,402 962 84 9,384

Percent 72.7% 1.2% 14.9% 10.3% 0.9% 100.0%

Annual

Payments

$18,058,380 $204,776 $2,672,156 $1,033,303 $107,715 $22,076,330

Table 24

Source: Benefits Delivery Network - COIN CP-127
Chapter 3 Business Beginning in FY 2002

105

3. PENSION - BASED UPON NONSERVICE-CONNECTED DISABILITY

a. Total Number of Veterans Receiving Disability Pension

The number of veterans receiving disability pension at the beginning of fiscal year 2002

is shown in the following table. Also shown are projected total annual amounts and

average annual amounts of disability pension payments for the three disability pension

programs.

Total Veterans Receiving Disability Pension by Program

Beginning Fiscal Year 2002

Type of Pension Number of

Veterans

Percent of

Total

Total Annual

Amounts

Average

Annual

Amounts

Protected Pension 260 0.1% $271,032 $1,042

Section 306 Pension 19,925 5.7% $32,755,272 $1,644

PL 95-588 - New Law Pension 327,867 94.2% $2,140,262,016 $6,528

Total 348,052 100.0% $2,173,288,320 $6,244

Table 25

Source: Benefits Delivery Network - RCS 20-0221
Chapter 3 Business Beginning in FY 2002

106

b. Demographic Characteristics of Veterans Receiving Disability Pension at the

 Beginning of Fiscal Year 2002

By Age

The number and projected total annual amount of disability pension payments for each

age group is shown in the next table.

Total Veterans Receiving Disability Pension by Age Beginning Fiscal Year 2002

Age Other Pension1 New Law Pension All Pension Programs Annual

Number Percent

of All

Ages

Number Percent

of All

Ages

Total for

Age

Group

Percent

of All

Ages

Payments

Under Age 20 0 0.0% 0 0.0% 0 0.0% $0

20-29 0 0.0% 185 0.1% 185 0.1% $1,621,956

30-39 0 0.0% 1,190 0.4% 1,190 0.3% $9,762,144

40-49 103 0.5% 25,047 7.6% 25,150 7.2% $214,798,896

50-59 835 4.1% 78,546 24.0% 79,381 22.8% $674,527,836

60-69 1,957 9.7% 44,755 13.7% 46,712 13.4% $277,463,160

70-79 8,861 43.9% 113,097 34.5% 121,958 35.0% $606,950,328

80-89 6,970 34.5% 59,862 18.3% 66,832 19.2% $352,840,320

90 and Over 1,459 7.2% 5,173 1.6% 6,632 1.9% $35,265,252

Age Unknown 0 0.0% 12 0.0% 12 0.0% $58,428

All Ages 20,185 100.0% 327,867 100.0% 348,052 100.0% $2,173,288,320

Average Age of Veterans: 68

Table 26

Source: Benefits Delivery Network - RCS 20-0236

1

 The “Other Pension” category groups the two older pension programs (Protected Pension and Section 306 Pension) into one category.

.
Chapter 3 Business Beginning in FY 2002

107

By Period of Service

The next table provides a distribution by period of service for those veterans receiving

disability pension at the beginning of fiscal year 2002. The total projected annual

amount of disability pension payments for each period of service is shown in the last

column of the table.

Disability Pension by Period of Service

Beginning Fiscal Year 2002

Period of Other Pension1 New Law Pension All Pension Programs Annual

Service Number Percent of

All Periods

Number Percent

of All

Periods

Total for

Period

Percent of

All Periods

Payments

Mexican Border 0 0.0% 1 0.0% 1 0.0% $2,808

World War I 14 0.1% 66 0.0% 80 0.0% $607,404

World War II 14,834 73.5% 138,767 42.3% 153,601 44.1% $783,806,688

Korean War 4,279 21.2% 75,373 23.0% 79,652 22.9% $418,109,184

Vietnam War 1,058 5.2% 111,855 34.1% 112,913 32.4% $955,671,708

Gulf War Era 0 0.0% 1,805 0.6% 1,805 0.5% $15,090,528

All Periods 20,185 100.0% 327,867 100.0% 348,052 100.0% $2,173,288,320

Table 27

Source: Benefits Delivery Network - RCS 20-0221

1

 The “Other Pension” category groups the two older pension programs (Protected Pension and Section 306 Pension) into one category.

4. PENSION -- BASED UPON NONSERVICE-CONNECTED DEATH

a. Total Number of Beneficiaries Receiving Death Pension at the Beginning of

Fiscal Year 2002

The number of beneficiaries receiving death pension at the beginning of fiscal year

2002, as well as projected total annual amounts and average annual amounts of

payment for all three VA death pension programs is provided in the following table.

Beneficiaries include surviving spouses, children and parents.

Total Beneficiaries Receiving Death Pension by Program

Beginning Fiscal Year 2002

Type of Pension Number of

Beneficiaries

Percent of Total Total Annual

Amounts

Average

Annual

Amounts

Protected Pension 1,081 0.4% $762,180 $705

Section 306 Pension 68,003 28.2% $71,846,076 $1,057

PL 95-588 (New Law Pension) 172,383 71.4% $574,970,328 $3,335

Total 241,467 100.0% $647,578,584 $2,682

Table 28

Source: Benefits Delivery Network - RCS 20-0221
Chapter 3 Business Beginning in FY 2002

108

b. Demographic Characteristics of Beneficiaries Receiving Death Pension at the

 Beginning of Fiscal Year 2002

By Age for Surviving Spouses

The following table shows the distribution by age among surviving spouses. The

projected total annual amount of death pension payments for each age group is also

shown in the last column of the table.

By Period of Service for All Beneficiaries

The number of surviving spouses, children and dependent parents receiving death

pensions, sorted by the veteran’s period of service, is shown in the table below. The

table also includes projected annual payments.

Nonservice-Connected Death Pension by Period of Service

Beginning of Fiscal Year 2002

Other Pension1 New Law Pension All Pension

Programs

Period of

Service Number Percent ofAll Periods Number Percent ofAll Periods

Totals for

Period

Percent of

All Periods

Annual

Payments

Wars of the 1800s2423 0.6% 316 0.2% 739 0.3% $1,748,544

World War I 12,638 18.3% 13,099 7.6% 25,737 10.7% $55,014,456

World War II 51,434 74.5% 116,247 67.4% 167,681 69.4% $392,004,912

Korean War 3,924 5.7% 25,956 15.1% 29,880 12.4% $105,685,200

Vietnam Era 665 1.0% 16,609 9.6% 17,274 7.2% $92,235,360

Gulf War Era 0 0.0% 156 0.1% 156 0.1% $890,112

All Periods 69,084 100% 172,383 100.0% 241,467 100.0% $647,578,584

Table 30

Source: Benefits Delivery Network - RCS 20-0221

1

 The “Other Pension” category groups the 2 older pension programs (Protected Pension and Section 306 Pension) into one category.

2

 “Wars of the 1800s” include the Civil War, Indian Wars, Mexican Border Era and Spanish-American War.

Total Surviving Spouses Receiving Death Pension

by Age Beginning of Fiscal Year 2002

Other Pension1 New Law Pension All Pension Programs

Age Number Percent of

All Ages Number

Percent

of All

Ages

Total For

Age Group

Percent of All

Ages

Annual

Payments

Under Age 25 0 0.0% 206 0.1% 206 0.1% $699,428

25 - 35 0 0.0% 355 0.2% 355 0.2% $1,205,324

36 - 45 39 0.1% 3,108 1.9% 3,147 1.4% $10,595,894

46 - 55 460 0.8% 15,457 9.3% 15,917 7.1% $52,995,788

56 - 65 1,453 2.5% 27,300 16.3% 28,753 12.8% $94,322,883

66 - 75 8,205 14.3% 41,957 25.1% 50,162 22.4% $151,664,586

Over 75 47,015 82.2% 78,625 47.1% 125,640 56.0% $319,404,192

Age Unknown 15 0.0% 0 0.0% 15 0.0% $16,404

All Ages 57,187 100.0% 167,008 100.0% 224,195 100.0% $630,904,499

Table 29

Source: Benefits Delivery Network - COIN CP-103

1

 The “Other Pension” category groups the two older pension programs (Protected Pension and Section 306 Pension) into one category.
Chapter 3 Business Beginning FY 2002

109

5. EDUCATION

a. Beneficiaries Receiving Education Benefits at the Beginning of Fiscal Year 2002

Number of veterans, dependents, service members and reservists receiving education

benefits at the beginning of fiscal year 2002 in each education benefit program is shown

in the following table.

Beneficiaries Receiving Education Benefits

Beginning of Fiscal Year 2002

Program Number of

Beneficiaries

Percent

of Total

Dependents Education 18,357 8.0%

Montgomery GI Bill - Active Duty1162,744 70.6%

Montgomery GI Bill – Reserves248,762 21.2%

Post-Vietnam Veterans Education 688 0.3%

Total 230,551 100%

Table 31

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve

b. Characteristics of the Training Pursued by Beneficiaries

By Type of Training

The table below shows the distribution, by program, of the types of training in which the

beneficiaries were using their education benefit at the beginning of fiscal year 2002.

Beneficiaries Receiving Education Benefits by Type of Training and Program

Beginning of Fiscal Year 2002

Education Program College,

Non-Degree

Graduate UnderGraduateVocational/

Technical

Program

Totals

Percent

of All

Programs

Dependents Education 144 597 17,230 386 18,357 8.0%

Montgomery GI Bill - Active Duty13,640 11,130 141,079 6,895 162,744 70.6%

Montgomery GI Bill – Reserves2437 2,103 45,498 724 48,762 21.2%

Post-Vietnam Veterans Education 12 170 483 23 688 0.3%

Type Training Totals 4,233 14,000 204,290 8,028 230,551 100%

Percent of Program Totals 1.8% 6.1% 88.6% 3.5%

Table 32

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve
Chapter 3 Business Beginning FY 2002

110

By Training Time

The distribution, by program, of the training times of the beneficiaries using their

education benefit at the beginning of fiscal year 2002 is presented in the next table.

Beneficiaries Receiving Education Benefits by Training Time and Program

Beginning of Fiscal Year 2002

Education Program Less Than

One-Half

Time

Half

Time

Three

Quarter

Time

Full

Time

Program

Totals

Percent

of All

Programs

Dependents Education 1,024 1,800 2,751 12,782 18,357 8.0%

Montgomery GI Bill - Active Duty110,758 27,637 21,225 103,124 162,744 70.6%

Montgomery GI Bill – Reserves21,971 4,664 4,552 37,575 48,762 21.2%

Post-Vietnam Veterans Education 100 165 101 322 688 0.3%

Training Time Totals 13,853 34,266 28,629 153,803 230,551 100%

Percent of Program Totals 6.0% 14.9% 12.4% 66.7%

Table 33

Source: Education Service SAS Reports

1

 Based on Active Duty service

2

 Based on service in the Selected Reserve
Chapter 3 Business Beginning FY 2002

111

6. LIFE INSURANCE

a. Total Number of Policyholders and the Value of Their Coverage

The table below shows the total number of veterans insured under each program, the

total face value of their policies, and the average face value of a policy in each program.

Note: The face value of the policies includes “paid up additions” for those programs that offer

that feature (USGLI, NSLI, VSLI, VRI). The face value is the amount that would be paid upon

the death of the veteran.

Total Insurance Policies In-Force

Beginning of Fiscal Year 2002

Insurance Number of

Policies

Total

Face Value

Average Face

Value

Maximum

Face Value

USGLI114,683 $47,618,700 $3,243 $10,000

NSLI11,606,590 $16,288,346,548 $10,138 $10,000

VSLI1233,335 $2,634,881,762 $11,292 $10,000

VRI172,581 $618,015,537 $8,515 $10,000

SDVI1148,674 $1,400,839,682 $9,422 $10,0002

VMLI33,300 $192,859,723 $58,442 $90,000

SGLI4,5 2,399,5005$582,741,000,000 $242,859 $250,000

VGLI4388,949 $37,145,130,000 $95,501 $250,000

TOTAL 4,867,612 $641,068,691,952 $131,701

Table 34

1 Source: Insurance Master Record Database - Insurance Statistical Report 700

2

 Additional $20,000 available for totally disabled policyholders

3

 Source: VMLI Database - VMLI Quarterly Report

4

 Source: Veterans And Reservists Group Insurance System - OSGLI Monthly Report

5

 Includes Separation and Part-Timers as of September 30, 2001.

The table that follows also displays information about policies in-force but provides the

data for the prior three years as well for purposes of comparison.

Insurance Policies In-Force

Comparative Information for Four Fiscal Years

FY 2002 FY 2001 FY 2000 FY 1999

Number of Policies 4,867,612 4,926,919 4,986,600 5,182,589

Total Face Values $641,068,691,952 $486,581,986,561 $484,616,832,433 $504,098,312,858

Average Face Values $131,701 $98,760 $97,184 $97,268

Table 34A
Chapter 3 Business Beginning FY 2002

112

b. Insurance Payments Made on a Monthly Basis

Although people usually choose to receive payment in a single “lump sum,” a monthly

payment option is available to beneficiaries for death claims, and to veterans for cash

surrenders and matured endowments. In the two disability benefit provisions of policies

- Total and Permanent Disability Provision and Total Disability Income Provision - no

lump sum option exists. Payments must be made monthly. The following table

provides data on monthly payments to either veterans or their beneficiaries.

Insurance Monthly Award Payments

Beginning of Fiscal Year 2002

Payment Type Number of

Awards

Annual

Payments

Average

Payment

Death Awards

USGLI 3,103 $927,324 $299

NSLI 50,151 $31,202,364 $622

VSLI 790 $616,320 $780

VRI 306 $183,636 $600

SDVI 316 $137,700 $436

TOTAL 54,666 $33,067,344 $605

Total Disability Income Provision

USGLI 74 $45,792 $619

NSLI 16,711 $19,454,820 $1,164

VSLI 3,093 $4,318,560 $1,396

VRI 853 $648,264 $760

TOTAL 20,731 $24,467,436 $1,180

Matured Endowments

USGLI 0 $0 $0

NSLI 1,124 $1,296,156 $1,153

VSLI 781 $1,204,452 $1,542

VRI 65 $68,280 $1,050

SDVI 10 $5,280 $528

TOTAL 1,980 $2,574,168 $1,300

Cash Surrenders

USGLI 1 $120 $120

NSLI 64 $52,584 $822

VSLI 2 $9,636 $4,818

VRI 3 $1,488 $496

SDVI 0 $0 $0

TOTAL 70 $63,828 $912

Total and Permanent Disability

USGLI 109 $28,548 $262

TOTAL 109 $28,548 $262

GRAND TOTAL 77,556 $60,201,324 $776

Table 35

 Source: Insurance Master Record Database - AVS 2012
Chapter 3 Business Beginning FY 2002

113

c. Ranking Among Commercial Life Insurance Companies

The following table compares VA life insurance programs with commercial life insurance

companies. The comparison is based on the total face value of active life insurance in

effect. Rankings based upon 2000 data are shown below.

2000 Rankings by Total Life Insurance In-Force

Rank Company Total Insurance

1 Metropolitan Life $1,733,576,000,000

2 Prudential of America $1,173,545,000,000

3 Transamerica Occidental Life $648,627,000,000

VA $643,824,000,000

4 Northwestern Mutual Life $633,956,000,000

5 Lincoln National Life $613,548,000,000

6 Life Reassurance Corp. $605,217,000,000

7 RGA Reinsurance $552,742,000,000

8 Connecticut General Life $482,158,000,000

9 State Farm Life $417,369,000,000

Table 36

Source: Best's Review, August 2001. Compilation of 2000 data.
Chapter 3 Business Beginning FY 2002

114

d. Demographic Characteristics of Policyholders

By Age

The next table shows the age distribution of policyholders in VA insurance programs

and the percent of total each age group represents for that insurance plan.

Note: Because certain programs were active only during past wartime periods, their age

distributions parallel the aging of all other veterans of those periods. The programs in which

policies can still be obtained (SDVI, VMLI, SGLI, VGLI) have policyholders across a wide

distribution of ages.

Age Distribution for Insurance Programs

% of Total by Policy Type

USGLI1

% of

Total

NSLI1

% of

Total

VSLI1

% of

Total

VRI1

% of

Total

SDVI1

% of

Total

VMLI2

% of

Total

SGLI4

% of Total

VGLI3

% of

Total

Totals

% by Age

Group

<19

0% 0% 0% 0%

2

<1% 0%

200,590

9%

2,017

1%

202,609

4%

20-29

0% 0% 0% 0%

893

1%

26

1%

1,017,268

46%

70,064

18%

1,088,251

23%

30-39

0% 0% 0% 0%

5,975

4%

323

10%

678,748

30%

127,008

32%

812,054

17%

40-49

0% 0% 0% 0%

23,898

16%

702

21%

266,908

12%

91,977

23%

383,485

8%

50-59

0% 0% 0% 0%

62,808

42%

1,581

48%

66,050

3%

81,743

21%

212,182

5%

60-69

0%

54,379

3%

117,934

51%

3,278

5%

35,596

24%

668

20%

936

0%

18,627

5%

231,418

5%

70-79 794

5%

986,379

61%

113,379

49%

41,336

57%

17,172

12% 0% 0%

828

0%

1,159,888

25%

80-89 13,186

90%

540,010

34%

1,937

1%

27,325

38%

2,273

2% 0% 0%

11

0%

584,742

12%

90> 703

5%

25,822

2%

85

0%

642

1%

57

<1% 0% 0%

1

<1%

27,310

1%

Total 14,683

100%

1,606,590

100%

233,335

100%

72,581

100%

148,674

100%

3,300

100%

2,230,5005

100%

392,276

100%

4,701,939

100%

Avg. Age 84.3 77.1 69.6 77.8 56.0 51.0 30.3 40.5

Table 37

All data as of September 30, 2001 with the exception of SGLI which is as of December 31, 2000, and VGLI which is as of June 30, 2001.

1

 Source: Insurance Master Record Database - AVS 2010

2

 Source: VMLI Database

3

 Source: Veterans and Reservists Group Insurance System

4

 Includes both Active Duty and Ready Reservists

5

 Does not include 117,636 policies for veterans separating from service with the 120-day transition period coverage.
Chapter 3 Business Beginning FY 2002

115

By Component and Branch of Service for SGLI Coverage

SGLI policyholders, by component and branch of service, are shown in the following

table.

Note: The top of the following table shows the active duty components for the branches. The

bottom of the table shows the reserve components for the branches. For the branches that

have a National Guard, the Guard members are included in the reserve component.

SGLI Coverage by Branch and Component of Service

Branch Total

Number

Number

With SGLI

Percent

With SGLI

Percent of

Total With SGLI

Army Active 481,155 475,524 98.8% 20.8%

Navy Active 395,366 389,496 98.5% 17.1%

Air Force Active 354,509 347,529 98.0% 15.2%

Marine Corps Active 180,840 180,553 99.8% 7.9%

Coast Guard Active 36,191 35,470 98.0% 1.6%

NOAA 230 214 93.0% 0.0%

Public Health Service 5,756 5,643 98.0% 0.2%

TOTAL 1,454,047 1,434,429 98.7% 62.9%

Army Reserve/Guard 573,344 553,125 96.5% 24.2%

Navy Reserve 76,398 73,744 96.5% 3.2%

Air Force Reserve/Guard 187,693 181,594 96.8% 8.0%

Marine Corps Reserve 32,691 31,596 96.7% 1.4%

Coast Guard Reserve 8,247 7,376 89.4% 0.3%

TOTAL 878,373 847,435 96.5% 37.1%

GRAND TOTAL 2,332,420 2,281,864197.8% 100%

Table 38

Source: Payroll databases of each branch of service – September 30, 2001, SGLI Monthly Premium Payment Reports

1Does not include 117,636 policies for veterans separating from service with the 120-day transition period coverage.
Chapter 3 Business Beginning FY 2002

116

By Amount of SGLI Coverage

Note: SGLI coverage of up to $250,000 is available in increments of $10,000. Minimum

allowable coverage is $10,000. This table shows the number of SGLI members covered at

each $10,000 increment. The total percentage by coverage level for both categories of duty

status is shown.

SGLI Coverage by Coverage Level

Active Duty and Reserve Duty

Coverage Level

ACTIVE DUTY $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Number with Coverage 3,815 1,289 492 323 3,180 257 260

Percent with Coverage 0.27% 0.09% 0.03% 0.02% 0.22% 0.02% 0.02%

$80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000

Number with Coverage 266 79 11,848 131 487 250 56

Percent with Coverage 0.02% 0.01% 0.83% 0.01% 0.03% 0.02% 0.00%

$150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000

Number with Coverage 2,384 110 91 110 76 22,537 102

Percent with Coverage 0.17% 0.01% 0.01% 0.01% 0.01% 1.57% 0.01%

$220,000 $230,000 $240,000 $250,000 TOTAL

Number with Coverage 29 26 51 1,386,180 1,434,429

Percent with Coverage 0.00% 0.00% 0.00% 96.64% 100%

Coverage Level

RESERVE DUTY $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Number with Coverage 6,886 2,012 682 415 6,690 279 251

Percent with Coverage 0.81% 0.24% 0.08% 0.05% 0.79% 0.03% 0.03%

$80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000

Number with Coverage 264 353 18,431 128 411 170 100

Percent with Coverage 0.03% 0.04% 2.17% 0.02% 0.05% 0.02% 0.01%

$150,000 $160,000 $170,000 $180,000 $190,000 $200,000 $210,000

Number with Coverage 2,051 66 78 73 1,081 17,403 82

Percent with Coverage 0.24% 0.01% 0.01% 0.01% 0.13% 2.05% 0.01%

$220,000 $230,000 $240,000 $250,000 TOTAL

Number with Coverage 12 10 36 789,471 847,435

Percent with Coverage 0.00% 0.00% 0.00% 93.16% 100%

Table 39

Source: Payroll databases of each branch of service – September 30, 2001, SGLI Monthly Premium Payment Reports
Chapter 3 Business Beginning FY 2002

117

7. HOME LOAN GUARANTY

a. Total Active Guaranteed Loans

This table shows the total number of active home loan guaranties at the beginning of

fiscal year 2002. The table also includes the total value and average value of the loans,

as well as the total value and average value of the VA guaranties on those loans.

Active Loans Based on Purchase Loan Versus Refinance Loans

Beginning of Fiscal Year 2002

Type of Loan Number

of

Loans

Percent

of

Total

Total

Loan Amount

Avg.

Loan

Amount

Total

Guaranty

Amount

Avg.

Guaranty

Amount

Avg.

Interest

Purchase Loans 2,211,525 72.4% $171,611,537,458 $77,599 $59,087,283,587 $26,718 8.17%

Refinance –

Interest Rate

Reduction

737,759 24.2% $72,158,286,566 $97,807 $23,029,234,411 $31,215 7.34%

Refinance -

Other Reasons 104,670 3.4% $8,207,564,961 $78,414 $2,764,349,056 $26,410 8.36%

TOTAL 3,053,954

1

100.0% $251,977,388,985 $82,509 $84,880,867,054 $27,794 7.98%

Table 40

Source: LGY SAS file

1Differs slightly from total of 3,055,903 in Table 3 of this chapter because of the time the data was compiled.

b. Characteristics of Home Loan Guaranties

By Down-payment Option

The objective of the VA home loan guaranty program is to enable veterans (and other

eligible people) to enter the home-buying market. The “no down-payment” feature is

intended to help veterans afford to buy suitable homes. The following table shows the

distribution of active loan guaranties, sorted by whether or not the borrower made a

down payment.

Active Purchase Loans By Downpayment Status

Beginning of Fiscal Year 20021

Status Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

No Down-payment 1,403,894 85.4% $131,875,396,089 $93,935 $44,017,094,689 $31,354

Down-payment 239,540 14.6% $22,563,813,244 $94,196 $7,167,163,027 $29,921

TOTAL 1,643,434 100.0% $154,439,209,333 $93,973 $51,184,257,716 $31,145

Table 41

Source: LGY SAS file

1

 For loans made FY 1979 or later purchase price used to determine downpayment.
Chapter 3 Business Beginning FY 2002

118

By Buyer Status

Distribution of active loan guaranties by “first time buyers.” A first time buyer is an

eligible person who used the loan guaranty to enter the home-buying market and

purchase a home for the first time.

Active Purchase Loans Based on Buyer Status

Beginning of Fiscal Year 20021

Buyer Status Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

First Time

Homeowner

632,312 54.2% $64,592,243,226 $102,152 $21,116,182,518 $33,395

Previous

Homeowner

534,100 45.8% $60,253,136,685 $112,812 $18,388,455,647 $34,429

TOTAL 1,166,412 100.0% $124,845,379,911 $107,034 $39,504,638,165 $33,869

Table 42

Source: LGY SAS file

1

 First time buyer information not available prior to FY 1993.

c. Demographic Characteristics of All People with Active Guaranteed Loans

By Period of Service and Other Entitlement Criteria

The next table shows the distribution of active home loan guaranties at the beginning of

fiscal year 2002, sorted by the veteran’s period of service and other entitlement criteria.

Note: Brief definitions of the entitlement criteria may be found in Chapter 1. The following table

is divided into two parts:

• Veteran entitlement, and

• Other entitlement categories.
Chapter 3 Business Beginning FY 2002

119

Active Home Loans By Period of Service (or Entitlement)

Beginning of Fiscal Year 2002

Entitlement Number

of Loans

Percent

of Grand

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

World War II 83,925 2.7% $3,783,549,315 $45,083 $1,536,159,394 $18,304

Post-World War II 3,052 0.1% $220,283,082 $72,177 $79,563,391 $26,069

Korean War 63,924 2.1% $3,404,700,524 $53,262 $1,297,160,387 $20,292

Post-Korean War 209,880 6.9% $10,600,038,308 $50,505 $4,077,244,269 $19,427

Vietnam Era 868,634 28.4% $53,254,633,013 $61,308 $19,811,902,496 $22,808

Post-Vietnam Era 521,680 17.1% $49,776,538,688 $95,416 $16,488,933,994 $31,607

Gulf War Era 265,434 8.7% $28,349,467,699 $106,804 $9,025,962,923 $34,005

Restored Entitlement 529,276 17.3% $57,240,014,391 $108,148 $17,411,401,744 $32,897

TOTAL 2,545,805 83.4% $206,629,225,020 $81,165 $69,728,328,598 $27,390

Service Personnel1451,647 14.8% $39,498,555,827 $87,454 $13,274,623,456 $29,392

Reservists 48,369 1.6% $5,276,848,281 $109,096 $1,663,176,497 $34,385

Unremarried Survivor 7.887 0.3% $566,462,096 $71,822 $208,169,526 $26,394

Spouse of POW 147 0.0% $11,472,111 $78,042 $3,864,352 $26,288

TOTAL 508,050 16.6% $45,353,338,315 $89,269 $15,149,833,831 $29,820

GRAND TOTAL 3,053,8552100.0% $251,982,563,335 $82,513 $84,878,162,429 $27,794

Table 43

Source: LGY SAS file

1

 Based on when the loan was made.

2 Differs slightly from total of 3,055,903 in Table 3 of this chapter because of the time the data was compiled.

By Age

The distribution of all active loan guaranties by age of the eligible person is shown in the

following table. The age is recorded at the time the loan is guaranteed.

Active Home Loans Based on Age Beginning of Fiscal Year 2002

Age Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

18 - 25 18,592 0.6% $1,744,215,071 $93,815 $596,426,836 $32,080

26 - 35 405,631 13.3% $42,768,824,952 $105,438 $13,706,127,286 $33,790

36 - 45 743,873 24.3% $76,338,312,719 $102,623 $24,477,533,786 $32,906

46 - 55 972,168 31.8% $75,396,282,577 $77,555 $25,931,122,217 $26,673

 56 - 65 552,212 18.1% $35,867,710,758 $64,953 $12,692,021,230 $22,984

Over 65 363,427 11.9% $19,916,114,405 $54,801 $7,502,291,853 $20,643

TOTAL 3,055,9031100.0% $252,031,460,482 $82,474 $84,905,523,208 $27,784

 Average overall age: 50

Table 44

Source: LGY SAS file

1

 Includes direct loans sold and later guaranteed.
Chapter 3 Business Beginning FY 2002

120

By Race

The next table provides the distribution of active loan guaranties by race. Providing

race information on the application is voluntary. Not all borrowers choose to report their

race. Consequently, the table is based on available information, which describes about

83 percent of the total number of records that have valid racial information.

Active Loans Based on Known Racial Codes

Beginning of Fiscal Year 2002

Race Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

White 2,015,932 79.2% $163,436,542,329 $81,072 $55,513,358,367 $27,537

Black 349,033 13.7% $28,031,114,024 $80,311 $9,624,040,669 $27,573

Hispanic 134,841 5.3% $10,969,693,225 $81,353 $3,732,373,808 $27,680

Native American 14,447 0.6% $1,301,997,096 $90,122 $428,990,936 $29,694

Asian 31,610 1.2% $3,491,653,895 $110,460 $1,037,730,843 $32,829

TOTAL 2,545,863 100.0% $207,231,000,569 $81,399 $70,336,494,623 $27,628

Table 45

Source: LGY SAS file

By Gender

Active Loans Based on Gender

Beginning of Fiscal Year 2002

Gender Number

of Loans

Percent

of

Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

Male 2,920,527 95.9% $238,912,450,702 $81,805 $80,631,138,981 $27,608

Female 125,968 4.1% $12,585,425,619 $99,910 $4,074,512,054 $32,346

TOTAL 3,046,4951100.0% $251,497,876,321 $82,553 $84,705,651,035 $27,804

Table 46

Source: LGY SAS File

1

 Excludes 9,408 loans that did not contain gender information in the record.
Chapter 3 Business Beginning FY 2002

121

8. VOCATIONAL REHABILITATION AND EMPLOYMENT

a. VR&E Program Participants at the Beginning of Fiscal Year 2002

The following table shows the total number of eligible persons who are participants of

the Vocational Rehabilitation program at the beginning of fiscal year 2002.

Veterans Participating in a Vocational Rehabilitation Programs

Beginning Fiscal Year 2002

Program Number Percent

Service-connected Veterans (Chapter 31) 55,081 99.91%

Pension Recipients (Chapter 15) 0 0.00%

Vietnam Veterans Children with Spina Bifida (Chapter 18) 49 0.09%

Total 55,130 100%

Table 47

Sources: VR&E Program Management Reports (FY 2001) and Regional Office Reports

The data shown in this section is a snapshot of the program activity as of the first day of

fiscal year 2002. Please refer to Chapter 2 for a description of each step, or case

status. The following shows the number of veterans who were in each status as of

10/01/2001:

Step 1: At the beginning of FY 2002, 7,544 veterans received services in the Applicant

Status.

Step 2: At the beginning of FY 2002, 11,881 veterans received services in the Extended

Evaluation and Planning Status.

Step 2a: At the beginning of FY 2002, 931 veterans received services in the Extended

Evaluation Status.

Step 3: At the beginning of FY 2002, 2,589 veterans received services in Independent

Living Status.

Step 3a: At the beginning of FY 2002, 16,652 veterans received services in

Rehabilitation to the Point of Employability Status.

Step 4: At the beginning of FY 2002, 3,668 veterans received services in Employment

Status.

Step 5: At the beginning of FY 2002, 0 veterans received services in Rehabilitation

Status. As mentioned previously, Interrupted Status is not a formal step however, at the

beginning of FY 2002, 11,816 veterans received services in Interrupted Status.
Chapter 3 Business Beginning FY 2002

122

b. Type of Occupational Goals and Training Activities of Veterans Who

Participated in a Training Program

The following tables provide information concerning the occupational goals and training

activities of veterans participating in vocational training at the beginning of fiscal year

2002.

By Occupational Goals

The table below shows occupational goals of veterans who participated in a training

program, sorted by vocation.

Veterans Participating in a Vocational Training Program by Occupational Goal

Beginning Fiscal Year 2002

Total

Number

Percent

of Total

Number

of Male

Percent

of Total

Number

of

Female

Percent

of Total

Agricultural, Fishery and Forestry 60 0.2% 41 0.2% 19 0.3%

Benchwork 149 0.5% 137 0.6% 12 0.2%

Clerical 1,089 3.5% 708 3.0% 381 5.3%

Independent Living 302 1.0% 259 1.1% 43 0.6%

Machine Trades 481 1.6% 468 2.0% 13 0.2%

Miscellaneous 906 2.9% 725 3.1% 181 2.5%

Processing (Butcher, Meat Processor, etc) 30 0.1% 23 0.1% 7 0.1%

Professional, Technical, and Managerial 26,330 85.4% 20,023 84.6% 6,307 88.1%

Sales 168 0.5% 143 0.6% 25 0.3%

Service 532 1.7% 422 1.8% 110 1.5%

Structural (Building Trades) 571 1.9% 548 2.3% 23 0.3%

Unknown/Other 215 0.7% 181 0.8% 34 0.5%

Total 30,833 100% 23,678 100% 7,155 100%

Table 48

Source: VR&E Program Management Reports - Benefits Delivery Network - Data Warehouse

By Type of Training Activity:

The table on the following page reflects the various types of training activities among

veterans who participated in a training program.
Chapter 3 Business Beginning FY 2002

123

Veterans Participating in a Vocational Training Program by Type of Training and

Gender Beginning Fiscal Year 2002

Type of Training Total

Number

Percent

of Total

Number

of Male

Percent of

Total

Number of

Female

Percent

of Total

Undergraduate 26,887 87.2% 20,372 86.0% 6,515 91.1%

Vocational/Technical 1,845 6.0% 1,622 6.9% 223 3.1%

Graduate 985 3.2% 697 2.9% 288 4.0%

College, Non-Degree 546 1.8% 469 2.0% 77 1.1%

Ext. Eval/ Individual Living 368 1.2% 335 1.4% 33 0.5%

On the Job 100 0.3% 89 0.4% 11 0.2%

Evaluation/Imp. Rehab Pot. 26 0.1% 23 0.1% 3 0.0%

High School 13 0.0% 12 0.1% 1 0.0%

Non/Nom Pay in Gov. 32 0.1% 30 0.1% 2 0.0%

Gov’t Work Experience 0 0.0% 0 0.0% 0 0.0%

Apprenticeship 27 0.1% 25 0.1% 2 0.0%

Farm Co-op 4 0.0% 4 0.0% 0 0.0%

Total 30,833 100.0% 23,678 100.0% 7,155 100.0%

Table 49

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network – Data Warehouse

c. Demographic Characteristics of Veterans Participating in a Training Program

The following table contains demographic information about veterans participating in a

vocational rehabilitation program at the beginning of fiscal year 2002.

By Combined Degree of Service-connected Disability

Veterans Participating in a Vocational Training Program

by Combined Degree of Disability Beginning Fiscal

Year 2002

Number Percent

0% 17 0.1%

10% 1,175 3.8%

20% 6,788 22.0%

30% 6,639 21.5%

40% 5,672 18.4%

50% 3,246 10.5%

60% 3,029 9.8%

70% 1,608 5.2%

80% 888 2.9%

90% 327 1.1%

100% 1,103 3.6%

Other 341 1.1%

Total 30,833 100%

Table 50

Source: VR&E Program Management Reports (2001)

Benefits Delivery Network – Data Warehouse
Chapter 3 Business Beginning FY 2002

124

By Serious Employment Handicap

A serious employment handicap is a significant impairment caused in part by a serviceconnected disability. This handicap affects the veteran’s ability to prepare for, obtain or

retain employment consistent with his/her abilities, aptitudes and interests.

Veterans Participating in a Vocational Training Program with a

Serious Employment Handicap Beginning Fiscal Year 2002

Total Participants 30,833

Number with Serious Employment Handicap 11,502

Percent with Serious Employment Handicap 37%

Table 51

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network – Data Warehouse

By Gender

Veterans Participating in a Vocational Training Program by

Gender Beginning Fiscal Year 2002

Female Male Total

Number 7,155 23,678 30,833

Percent 23.2% 76.8% 100%

Table 52

Source: VR&E Program Management Reports (2001)

Benefits Delivery Network – Data Warehouse

By Age

Veterans Participating in a Vocational Training Program by Age

Beginning Fiscal Year 2002

Age

17-21

Age

22-29

Age

30-39

Age

40-49

Age

50-59

Age

>60

Total for

All Ages

Number 129 5,990 10,486 10,359 3,520 349 30,833

Percent 0.4% 19.4% 34.0% 33.6% 11.4% 1.1% 100%

Average Age for Veterans in Training Status: 43

Table 53

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network – Data Warehouse
Chapter 3 Business Beginning FY 2002

125

By Period of Service

Veterans Participating in a Vocational Training Program by Period of

Service Beginning Fiscal Year 2002

World

War II

Post

World

War II1

Korean

War

Post

Korean

War1

Vietna

m Era

Post

Vietna

m Era1

Gulf

War

Total

All

Service

Periods

Number 15 2 20 100 1,659 4,707 24,330 30,833

Percent 0.0% 0.0% 0.1% 0.3% 5.4% 15.3% 78.9% 100%

Table 54

Source: VR&E Program Management Reports (2001) – Benefits delivery Network – Data Warehouse

1These three periods are generally combined into “Peacetime” service in other sections of this report.

By Branch of Service

Veterans Participating in a Vocational Training Program by Branch

of Service Beginning Fiscal Year 2002

Army1 Navy Air

Force

Marine

Corps

Coast

Guard

Other2Total

Number 14,430 6,785 5,394 3,364 394 466 30,833

Percent 46.8% 22.0% 17.5% 10.9% 1.3% 1.5% 100%

Table 55

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network – Data Warehouse

1Army includes 1 from Women’s Army Corps

2Other includes 1 from Special Phillipines Scout, 1 from Public Health Service and 464 records with no

branch of service data.

By Length of Service

Veterans Participating in a Vocational Training Program by

Length of Service Beginning Fiscal Year 2002

Number Percent

3 Months or Less 195 0.6%

3-6 Months 435 1.4%

6 Months-2 Years 3,102 10.1%

2-4 Years 7,550 24.5%

4-10 Years 8,920 28.9%

10-15 Years 3,285 10.7%

15-20 Years 2,139 6.9%

20-30 Years 5,123 16.6%

Over 30 Years 84 0.3%

Total 30,833 100%

Table 56

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network Data

Warehouse
Chapter 3 Business Beginning FY 2002

126

By Dependency Status

This table identifies dependency status for dependents of both single and married

veteran participants.

Veterans Participating in a Vocational Training Program by

Dependency Status Beginning Fiscal Year 2002

Single Single

with

Children

Married Married

with

Children

Dependent

Parent(s)

Total1

Number 7,279 3,914 5,126 14,405 57 30,781

Percent 23.6% 12.7% 16.7% 46.8% 0.2% 100%

Table 57

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network – Data Warehouse

1Does not include 52 veterans whose dependency status is unknown.

By Prior Education Level

This table reflects the distribution of veterans by level of education attained prior to

enrollment in a vocational training program.

Veterans Participating in a Vocational Training Program by Prior

Education Level

Beginning Fiscal Year 2002

Less Than

High

School

High

School

Post

High

School

Four Year

College

Degree

Graduate

Training

Total

Number 234 16,949 11,103 1,430 1,117 30,833

Percent 0.8% 55.0% 36.0% 4.6% 3.6% 100%

Table 58

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network – Data Warehouse

By Prior Use of VA Educational Benefits

This table reflects all program participants at the beginning of fiscal year 2002 who

previously used VA education benefits.

Veterans Participating in a Vocational Training Program by

Prior Use of VA Benefits

Beginning Fiscal Year 2002

Prior Use No Prior Use Total

Number 9,804 21,029 30,833

Percent 31.8% 68.2% 100%

Table 59

Source: VR&E Program Management Reports (2001) – Benefits Delivery Network

Data Warehouse
127

CHAPTER 4

THE FUTURE – FORECASTING PROGRAM LIABILITIES

 Forecasting Program Liabilities

This chapter projects program usage and associated financial obligations of the government to

veterans and survivors, well beyond the current fiscal year. In conjunction with the preparation

of its financial statements for fiscal year 2001, VA estimates the liability for the future benefit

payments of the compensation program. This estimate is required in order to comply with

Statement of Federal Financial Accounting Standards Number 5: Accounting for Liabilities of

the Federal Government adopted by the Federal Accounting Standards Advisory Board

(FASAB).

Historically, each year the VA is dependent upon appropriations to fund their compensation

programs. This is unlike the Social Security program, for which the government maintains a

trust fund against “future liabilities.” In a broad sense, future liabilities are payments that the

government (or any entity) is obligated to deliver in future years. This is much like the

obligation of a life insurance company to pay the face amount of a standard policy to

beneficiaries at the time of the insured person’s death. The present value of these obligations

constitutes the company’s future liability.

Future liabilities are carefully constructed forecasts and, as applied in this report, are

conservatively drawn estimates. These estimates for long-term usage and costs provide a

baseline for VBA’s unfunded future liabilities. This “rational link” to the future of VBA programs

brings important factual information to long-term policy and management decision making in

both the Executive and Legislative branches of government.

The data presented in this chapter are drawn from a 2001 study1. The study estimates the

VA’s liability as of the end of fiscal year 2001. While calculated information from the study is

presented in the Secretary’s report, this chapter details descriptions of the study’s

assumptions, parameters, and methods. It also gives projected compensation payments to

veterans and survivors for years 2002 through 2071. This period corresponds closely with that

used by the Office of the Chief Actuary of the Social Security Administration (which uses 75

years). The report addresses some of the estimated future liabilities (noted in last year’s

Annual Benefits Report) for the compensation programs only. Our attention to the

compensation programs in this report is based on the availability of adequate data and the

special significance of the disability and death benefit programs to veterans and the Nation.

 

1 Compensation and Pension Programs Liability for Future Benefits as of September 30, 2001. Study dated September 28, 2001, and as

revised per memorandums of January 15, 2002, by Sam Gutterman, FSA, FCAS, MAAA, Hon FIA, for PricewaterhouseCoopers LLP.
Chapter 4 The Future – Forecasting Program Liabilities

128

Liability for Future Compensation Benefits

The liability projections for the compensation program as of September 30, 2001, are shown

below. The total estimated future benefit payments of $2,616.1 billion ($2.6161 trillion)

represents the sum of the cash flows needed from FY 2002 to FY 2071 to pay benefits,

including retroactive payments. The total program liability estimate of $689.1 billion represents

the present value of these expected future benefit payments of the program. The present

value is calculated from the projected cash flows and represents an estimate of the amount,

which, if invested now, would assure that the government could cover projected future

compensation payments.

Estimate of Compensation Program Liability

 as of September 30, 2001

Estimated Future

Benefits Payments

Compensation Program

Liability

Benefits to Veterans $2,101.8 $574.0

Benefits to Survivors 514.3 115.1

Total $2,616.1 $689.1

 Table 1

The estimated liability for the compensation program is based on the present value of

expected future compensation benefit payments for:

• All veterans currently receiving benefits under these programs;

• All survivors currently receiving benefits under these programs;

• All future survivors of those veterans currently receiving benefit payments;

• All existing veterans not currently receiving benefit payments but who are expected

to in the future;

• All future survivors of existing veterans not currently receiving benefit payments but

who are expected to in the future; and

• A provision for those currently in active military service who will become veterans in

the future (and their survivors).

These estimates of the compensation liability reflect only current benefits and types of

disability. They do not include additional compensation that may arise in the future as a result

of new regulatory or statutory disabilities.

Key financial and actuarial elements associated with the development of this liability estimate

are provided in Tables 2 through 6 of this chapter.

Estimated Future Benefit Payments

Table 2, on the next page, shows the expected total annual benefit payments for veterans and

survivors through fiscal year 2071 (70 years). Some noteworthy points from this table include:
Chapter 4 The Future – Forecasting Program Liabilities

129

• The 70-year projection period is comparable to the period used by the Office of the

Chief Actuary of the Social Security Administration (75 years);

• The source of cash flows necessary to pay these benefits is annual U.S. government

appropriations for the program;

• The highest annual compensation outlay for payments to service-connected disabled

veterans is $42.9 billion and is expected to occur in 2032 and is highlighted;

• The highest annual compensation outlay for payments to survivors of veterans whose

deaths are related to service is $9.0 billion and is expected to occur in 2050 and is

highlighted; and

• The highest annual compensation outlay for combined payments is $50.4 billion and is

expected to occur in 2035 and is highlighted.

The model used to project the future benefit payments is based on estimates of:

• The number of beneficiaries expected to receive compensation during a fiscal year;

• Whether these beneficiaries will receive payments for a full fiscal year or part of a fiscal

year;

• The amount of benefits they will receive, including retroactive payments;

• The number of awards stopped during a fiscal year; and

• Cost of living adjustments that will apply to future benefit payments.
Chapter 4 The Future – Forecasting Program Liabilities

130

Estimated Future Benefit Payments (Total Benefits/Obligations)

Fiscal Year Compensation

Veterans

Compensation

Survivors

Compensation

Veterans and

Survivors

2002 $17,871,649,474 $3,995,265,331 $21,866,914,805

2003 $19,299,414,001 $4,144,507,404 $23,443,921,405

2004 $20,581,902,125 $4,303,169,733 $24,885,071,858

2005 $21,759,263,790 $4,446,598,879 $26,205,862,669

2006 $22,859,450,580 $4,591,369,739 $27,450,820,319

2007 $23,922,017,131 $4,735,582,353 $28,657,599,484

2008 $24,947,733,666 $4,878,104,057 $29,825,837,723

2009 $25,928,369,463 $5,017,892,596 $30,946,262,059

2010 $26,912,814,621 $5,154,533,060 $32,067,347,681

***** *****

2015 $31,768,724,915 $5,782,738,575 $37,551,463,490

***** *****

2020 $36,333,660,235 $6,330,307,233 $42,663,967,468

***** *****

2025 $40,247,065,601 $6,835,103,264 $47,082,168,865

***** *****

2030 $42,607,351,431 $7,353,317,837 $49,960,669,268

***** *****

2032 $42,910,434,099 $7,563,509,446 $50,473,943,545

***** *****

2035 $42,602,433,613 $7,873,326,177 $50,475,759,790

***** *****

2040 $40,330,200,815 $8,361,796,336 $48,691,997,151

***** *****

2045 $36,566,073,407 $8,789,565,184 $45,355,638,591

***** *****

2049 $32,614,183,230 $9,039,082,930 $41,653,266,160

***** *****

2050 $31,514,551,381 $9,043,237,700 $40,557,789,081

***** *****

2055 $25,686,836,006 $8,961,548,998 $34,648,385,004

***** *****

2060 $19,617,240,391 $8,702,117,763 $28,319,358,154

***** *****

2065 $13,798,867,855 $8,272,278,180 $22,071,146,035

***** *****

2070 $8,905,596,862 $7,684,610,845 $16,590,207,707

***** *****

2071 $8,088,997,791 $7,550,773,589 $15,639,771,380

Total $2,101,832,520,496 $514,259,104,885 $2,616,091,625,381

Table 2

Source: Compensation and Pension Programs

Liability for Future Benefits as of September 30, 2001

 - PricewaterhouseCoopers LLP, Table 2
Chapter 4 The Future – Forecasting Program Liabilities

131

Estimated Future Compensation Payments - Discounted

Table 3, on the next page, shows the expected future compensation payments from Table 1

discounted at current U.S. Treasury interest rates. The present value of the total projected

future liability for compensation is $689.1 billion. This figure is calculated by totaling the

discounted values of projected future cash flows. It represents the estimated amount, which, if

invested now, would assure that the government could cover the projected future

compensation payments shown in Table 2 ($2.6 trillion). Factors to consider when viewing

Table 3 include:

• This method of selecting discount rates was used because VA does not hold specific

assets (which might carry a different rate of return) to support future obligations;

• Under current law, the benefit payments will be made from future general revenues of

the U.S. government each year;

• As a result of using current interest rates (which are likely to vary from year to year), the

liability estimates may vary considerably from year to year; and

• As these rates fluctuate in the future, the value of the liability will fluctuate accordingly

(the higher the interest rates, the smaller the present value of the liability).

Table 3 includes estimates of expected compensation payments after the 70-year period (i.e.,

2072 and later), as well as estimates of retroactive benefits. Retroactive benefits are paid

when:

• A veteran is entitled to compensation for any month(s) earlier than the month in which

VA starts his/her award, and

• A veteran already receiving compensation is found entitled to increased benefits for

past months
Chapter 4 The Future – Forecasting Program Liabilities

132

 Estimated Future Benefit Payments - Discounted

Fiscal Year Compensation

Veterans

Compensation

Survivors

Compensation Veterans

and Survivors

2002 $16,432,023,031 $3,673,432,161 $20,105,455,192

2003 $17,255,938,765 $3,705,675,518 $20,961,614,283

2004 $17,764,885,772 $3,714,200,869 $21,479,086,641

2005 $18,007,382,887 $3,679,885,925 $21,687,268,812

2006 $18,016,223,380 $3,618,597,155 $21,634,820,535

2007 $17,897,296,930 $3,542,933,819 $21,440,230,749

2008 $17,695,280,483 $3,460,010,463 $21,155,290,946

2009 $17,452,314,007 $3,377,529,673 $20,829,843,680

2010 $17,242,177,266 $3,302,344,032 $20,544,521,298

2011 $16,988,719,124 $3,219,585,952 $20,208,305,076

***** ***** *****

2015 $15,497,511,192 $2,820,952,242 $18,318,463,434

***** ***** *****

2020 $12,949,686,078 $2,256,185,887 $15,205,871,965

***** ***** *****

2025 $10,783,191,524 $1,831,294,443 $12,614,485,967

***** ***** *****

2030 $8,795,122,656 $1,517,891,400 $10,313,014,056

***** ***** *****

2035 $6,762,465,246 $1,249,766,507 $8,012,231,753

***** ***** *****

2040 $4,916,838,719 $1,019,424,728 $5,936,263,447

***** ***** *****

2045 $3,423,882,449 $823,015,303 $4,246,897,752

***** ***** *****

2050 $2,266,400,142 $650,353,386 $2,916,753,528

***** ***** *****

2055 $1,418,799,456 $494,986,648 $1,913,786,104

***** ***** *****

2060 $832,210,622 $369,164,811 $1,201,375,433

***** ***** *****

2065 $449,597,344 $269,528,945 $719,126,289

***** ***** *****

2070 $222,585,013 $192,303,461 $414,888,474

2071 $192,015,783 $179,239,473 $371,255,256

2072 and later 798,800,276 $1,305,366,632 2,104,166,908

Total Regular $533,909,365,019 $107,106,847,092 $641,016,212,111

Retroactive $40,043,202,376 $8,033,013,532 $48,076,215,908

Total $573,952,567,396 $115,139,860,623 $689,092,428,019

Table 3

Source: Compensation and Pension Programs Liability for Future Benefits as of September 30, 2001 –

PricewaterhouseCoopers LLP, Table 1
Chapter 4 The Future – Forecasting Program Liabilities

133

Veterans Receiving Compensation

Table 4 shows the total number of veterans receiving compensation payments and their

average monthly benefits, sorted by age and gender, at the end of fiscal year 2001. The total,

2,316,688, is an estimate based on the actual numbers as of June 30, 2001.

Number

of Veterans

Average Monthly

Benefit

Number

 of Veterans

Average Monthly

Benefit

Age Males Females Males Females Age Males Females Males Females

17 1 - $275 $250 60 31,652 529 $609 $804

18 8 3 $275 $250 61 28,641 482 $600 $762

19 80 50 $275 $250 62 26,855 398 $579 $766

20 200 80 $275 $250 63 27,135 370 $576 $768

21 534 194 $275 $250 64 27,560 318 $582 $714

22 1,603 396 $341 $250 65 28,427 351 $573 $671

23 3,058 1,261 $299 $250 66 28,845 307 $581 $754

24 4,750 1,467 $297 $306 67 29,917 319 $577 $734

25 5,962 1,855 $293 $329 68 32,876 326 $588 $679

26 7,415 2,254 $289 $343 69 38,763 334 $604 $696

27 9,438 2,607 $300 $327 70 39,010 330 $600 $678

28 11,515 2,847 $309 $362 71 39,397 306 $600 $712

29 14,017 3,155 $315 $357 72 35,165 282 $596 $690

30 16,638 3,708 $324 $361 73 31,498 254 $581 $610

31 18,479 3,632 $340 $362 74 27,936 226 $566 $665

32 18,431 3,549 $350 $395 75 37,189 224 $528 $699

33 17,985 3,428 $374 $413 76 55,261 280 $547 $511

34 17,950 3,415 $388 $430 77 58,370 618 $558 $622

35 17,889 3,210 $405 $482 78 54,131 764 $555 $501

36 18,587 3,550 $428 $499 79 53,216 803 $557 $510

37 19,559 3,557 $438 $515 80 50,767 720 $551 $475

38 19,694 3,756 $461 $522 81 43,093 632 $555 $474

39 21,761 3,864 $483 $563 82 37,945 454 $547 $492

40 24,637 4,307 $482 $579 83 32,078 381 $536 $582

41 27,268 4,420 $493 $572 84 23,434 327 $517 $505

42 30,444 4,637 $496 $589 85 17,823 264 $518 $512

43 32,227 4,608 $493 $602 86 13,441 231 $503 $503

44 34,615 4,604 $496 $618 87 10,095 182 $506 $546

45 36,172 4,888 $495 $609 88 7,138 167 $481 $530

46 37,655 4,996 $503 $643 89 5,151 124 $476 $524

47 38,838 4,690 $509 $683 90 3,634 90 $458 $456

48 39,728 4,242 $524 $677 91 2,599 78 $480 $488

49 43,093 3,802 $541 $694 92 1,741 62 $460 $490

50 47,170 3,235 $606 $683 93 1,220 41 $481 $524

51 60,011 2,881 $685 $706 94 862 29 $455 $440

52 78,822 2,389 $716 $730 95 497 23 $462 $745

53 90,412 2,003 $722 $738 96 278 13 $556 $412

54 93,002 1,770 $713 $742 97 104 18 $452 $529

55 73,593 1,370 $684 $786 98 58 5 $684 $681

56 50,997 982 $678 $771 99 44 8 $396 $519

57 44,004 806 $648 $793 100 30 4 $646 $335

58 41,387 765 $632 $827 101 + 139 5 $711 $394

59 37,454 643 $611 $763 Unknown 35 - $760 $395

Total/Average 2,191,133 125,555 $567 $487

Table 4

Source: Compensation and Pension Programs

Liability for Future Benefits as of September 30, 2001

PricewaterhouseCoopers LLP Table 9
Chapter 4 The Future – Forecasting Program Liabilities

134

Death Rates

On the next page, Table 5 presents a comparison between death rates in the general U.S.

population (as reported in the 1989-91 U.S. Life Tables) and those in veterans receiving

compensation. The death rates shown are for ages 40 to 80. The majority of veterans

receiving compensation are in this age group.

The death rates are shown as percentages by age. For example, the age 40 male death rate

of 0.31% means that this percentage of males in the general population is likely to die during

this one-year period. Death rate factors and forecasting future liability are used as follows:

• Death rates were developed based on compensation program experience for fiscal

years 1995 through 2001. In earlier years, death rates for the Service-Disabled

Veterans Life (SDVI) insurance program were used. The SDVI death rates were

significantly higher than those based on actual compensation program experience.

• Death rates for the male compensation group slightly exceed those in the general male

population for the ages under 69, but are actually lower at the oldest ages.

• Death rates for the female compensation group exceed those of the general population

at all ages. However, significantly less experience is available for calculating death

rates among female veterans.

• Projected mortality in veterans receiving compensation reflects an assumed annual rate

of improvement (decline in the mortality rate) of one percent (e.g., a one percent

improvement in the .32% rate would improve to 99 percent of .32%, or .31%).

• The greater the mortality improvement, the larger the liability for the compensation

program, because more beneficiaries will live to collect benefits for a longer period.
Chapter 4 The Future – Forecasting Program Liabilities

135

Death Rates

1989-1991 U.S. Life

Tables (All Races)

 Veterans Compensation

FY 1995-01 Experience

Age Males Females Males Females

40 0.31% 0.14% 0.42% 0.25%

41 0.32% 0.15% 0.44% 0.27%

42 0.34% 0.16% 0.46% 0.29%

43 0.36% 0.18% 0.49% 0.30%

44 0.39% 0.20% 0.52% 0.31%

45 0.42% 0.22% 0.56% 0.31%

46 0.46% 0.24% 0.60% 0.32%

47 0.50% 0.27% 0.64% 0.33%

48 0.53% 0.29% 0.68% 0.36%

49 0.57% 0.32% 0.73% 0.40%

50 0.61% 0.35% 0.78% 0.43%

51 0.66% 0.38% 0.83% 0.48%

52 0.72% 0.42% 0.88% 0.52%

53 0.79% 0.46% 0.95% 0.57%

54 0.88% 0.51% 1.02% 0.63%

55 0.97% 0.56% 1.10% 0.69%

56 1.07% 0.62% 1.19% 0.76%

57 1.18% 0.68% 1.28% 0.84%

58 1.29% 0.74% 1.38% 0.93%

59 1.42% 0.81% 1.49% 1.03%

60 1.55% 0.88% 1.61% 1.14%

61 1.69% 0.96% 1.74% 1.26%

62 1.85% 1.05% 1.88% 1.39%

63 2.01% 1.14% 2.03% 1.46%

64 2.18% 1.23% 2.20% 1.54%

65 2.36% 1.33% 2.39% 1.62%

66 2.56% 1.45% 2.59% 1.71%

67 2.77% 1.57% 2.81% 1.80%

68 3.01% 1.71% 3.02% 1.97%

69 3.27% 1.86% 3.25% 2.15%

70 3.54% 2.03% 3.50% 2.35%

71 3.84% 2.21% 3.77% 2.57%

72 4.16% 2.41% 4.05% 2.82%

73 4.50% 2.62% 4.37% 3.08%

74 4.88% 2.86% 4.71% 3.37%

75 5.28% 3.11% 5.08% 3.68%

76 5.72% 3.40% 5.48% 4.03%

77 6.21% 3.72% 5.91% 4.40%

78 6.74% 4.08% 6.44% 4.77%

79 7.33% 4.48% 7.01% 5.16%

80 7.99% 4.94% 7.64% 5.59%

Table 5

Source: Compensation and Pension Programs

Liability for Future Benefits as of September 30, 2001 -

PricewaterhouseCoopers LLP, Table 11
Chapter 4 The Future – Forecasting Program Liabilities

136

Rates of Newly Adjudicated Compensation Cases

The following two tables provide information about newly adjudicated disability compensation

awards to veterans. In this table, the term “newly adjudicated” cases includes both initial firsttime awards and subsequent award actions.

Table 6A shows the projected number of newly adjudicated compensation awards, (based

upon 2001 data) in total and sorted by age and gender, for fiscal year 2002. These projections

come directly from the model used to estimate future liability. The projected total of 141,172

newly adjudicated awards corresponds with the fiscal year 2002 estimate of new

compensation cases shown in Table 3 of the PricewaterhouseCoopers LLP study.

Approximately 1.2 million new awards are projected over the entire 70-year period through

fiscal year 2071 (also shown in Table 3).

Table 6B presents the rates of disability compensation awards as percentages. The

percentages are then used to project number of newly adjudicated awards. For example, the

age 25 male disability rate of 1.46% is the percentage of male veterans who are likely to

receive a new compensation award during a one-year period.

The following factors regarding rates and data should be considered:

• Rates of newly adjudicated awards were developed based on compensation program

experience for fiscal years 1995 through 2001;

• Data were not explicitly available by individual age and gender, and the values were

derived indirectly from the in-force and termination data that were available;

• Rates of new awards were then developed by dividing the number of new entrants by

the number of living veterans not currently receiving compensation; and

• These rates were then applied to the veteran population to arrive at estimates of new

compensation awards for fiscal year 2002 and for future years.
Chapter 4 The Future – Forecasting Program Liabilities

137

Projected FY 2002 Newly Adjudicated Compensation

Cases for Veterans

Age Males Females Combined Age Males Females Combined

17 0 0 0 57 5,596 114 5,709

18 1 0 1 58 4,980 95 5,076

19 5 2 7 59 4,321 77 4,397

20 24 8 32 60 3,449 63 3,512

21 155 55 210 61 2,741 50 2,791

22 547 215 763 62 2,192 41 2,233

23 798 332 1,129 63 1,628 29 1,658

24 966 373 1,339 64 1,365 24 1,389

25 1,075 416 1,491 65 1,246 21 1,268

26 1,091 414 1,504 66 1,162 18 1,181

27 1,181 423 1,605 67 1,102 16 1,117

28 1,193 390 1,584 68 1,057 14 1,071

29 1,123 342 1,465 69 1,047 12 1,060

30 1,093 307 1,399 70 1,030 12 1,042

31 1,113 299 1,412 71 1,016 11 1,027

32 1,116 304 1,420 72 952 10 961

33 1,103 276 1,380 73 874 8 882

34 1,085 259 1,345 74 825 8 833

35 1,069 246 1,314 75 853 7 860

36 1,061 241 1,302 76 859 7 866

37 1,071 229 1,300 77 842 7 849

38 1,276 264 1,539 78 757 7 764

39 1,509 307 1,816 79 670 7 678

40 1,773 369 2,142 80 606 8 614

41 2,050 427 2,477 81 540 7 548

42 2,299 452 2,751 82 463 6 469

43 2,097 415 2,512 83 313 4 318

44 2,073 379 2,452 84 197 4 200

45 2,392 401 2,793 85 115 2 117

46 2,695 420 3,115 86 55 2 57

47 2,805 418 3,222 87 35 1 37

48 2,965 357 3,321 88 23 1 24

49 3,420 297 3,718 89 15 1 16

50 4,267 273 4,540 90 10 1 11

51 4,256 233 4,490 91 7 0 7

52 5,305 207 5,512 92 4 - 4

53 6,491 196 6,687 93 2 - 2

54 7,563 182 7,745 94 2 - 2

55 7,821 169 7,990 95 0 - 0

56 6,561 137 6,697 96 0 - 0

 Total 129,442 11,730 141,172

Table 6A

Source: Compensation and Pension Programs Liability for Future Benefits as of September 30, 2001 -

PricewaterhouseCoopers LLP. Note: Estimates include new awards arising from diabetes.
Chapter 4 The Future – Forecasting Program Liabilities

138

Rates of Newly Adjudicated Compensation Cases for Veterans

Age Males Females Age Males Females

17 0.27% 0.40% 57 0.19% 0.23%

18 0.27% 0.69% 58 0.18% 0.19%

19 0.45% 1.19% 59 0.17% 0.16%

20 0.74% 2.05% 60 0.15% 0.14%

21 1.22% 3.54% 61 0.14% 0.11%

22 2.01% 3.26% 62 0.13% 0.10%

23 1.80% 3.00% 63 0.13% 0.08%

24 1.62% 2.76% 64 0.13% 0.07%

25 1.46% 2.53% 65 0.13% 0.07%

26 1.32% 2.33% 66 0.13% 0.06%

27 1.18% 2.00% 67 0.13% 0.05%

28 1.04% 1.72% 68 0.12% 0.04%

29 0.91% 1.48% 69 0.12% 0.03%

30 0.79% 1.27% 70 0.11% 0.03%

31 0.69% 1.10% 71 0.11% 0.02%

32 0.61% 1.02% 72 0.11% 0.02%

33 0.58% 0.94% 73 0.11% 0.01%

34 0.55% 0.87% 74 0.12% 0.01%

35 0.52% 0.81% 75 0.13% 0.01%

36 0.50% 0.75% 76 0.14% 0.01%

37 0.47% 0.81% 77 0.15% 0.01%

38 0.53% 0.88% 78 0.15% 0.01%

39 0.58% 0.96% 79 0.15% 0.01%

40 0.65% 1.04% 80 0.14% 0.01%

41 0.72% 1.12% 81 0.14% 0.01%

42 0.80% 1.10% 82 0.13% 0.01%

43 0.71% 1.08% 83 0.11% 0.01%

44 0.63% 1.05% 84 0.08% 0.01%

45 0.56% 1.03% 85 0.05% 0.00%

46 0.50% 1.01% 86 0.03% 0.00%

47 0.44% 0.89% 87 0.02% 0.00%

48 0.43% 0.79% 88 0.02% 0.00%

49 0.41% 0.69% 89 0.02% 0.00%

50 0.40% 0.61% 90 0.02% 0.00%

51 0.39% 0.54% 91 0.01% 0.00%

52 0.38% 0.45% 92 0.01% 0.00%

53 0.33% 0.38% 93 0.01% 0.00%

54 0.29% 0.32% 94 0.01% 0.00%

55 0.25% 0.32% 95 0.00% 0.00%

56 0.22% 0.27% 96 0.00% 0.00%

Table 6B

Source: Compensation and Pension Programs
Appendix A Geographic Distribution of Data

139

THIS APPENDIX PROVIDES DATA BY STATE

GEOGRAPHIC DISTRIBUTION OF BENEFITS
Chapter 4 The Future – Forecasting Program Liabilities

140

Estimated Veteran Population by Residence

at the Beginning of FY 2002

(In Ascending Order for US)

District of Columbia 47,066

Wyoming 52,502

North Dakota 55,957

Vermont 58,169

Alaska 67,185

South Dakota 76,475

Delaware 77,127

Rhode Island 92,824

Hawaii 100,505

Montana 105,645

Idaho 123,255

Utah 130,436

New Hampshire 132,433

Maine 152,891

Nebraska 153,439

New Mexico 184,963

West Virginia 200,406

Nevada 229,401

Kansas 243,536

Mississippi 248,251

Iowa 261,009

Connecticut 274,489

Arkansas 278,182

Oregon 362,007

Kentucky 366,861

Oklahoma 368,038

Louisiana 384,064

Colorado 404,100

South Carolina 410,055

Minnesota 420,791

Alabama 456,306

Wisconsin 478,247

Maryland 487,408

Arizona 505,015

Massachusetts 528,657

Tennessee 538,778

Indiana 556,922

Missouri 557,968

New Jersey 606,474

Washington 613,322

Virginia 705,855

North Carolina 762,332

Georgia 766,603

Michigan 882,306

Illinois 918,169

Ohio 1,102,532

Pennsylvania 1,204,487

New York 1,284,218

Texas 1,699,611

Florida 1,752,633

California 2,300,298

United States Total 24,770,200

Puerto Rico 141,025

Overseas/Territories 127,234

All Veterans 25,038,459

Source: Veteran Population Projections through September 30, 2001, VA Office of Policy

and Planning.
Chapter 4 The Future – Forecasting Program Liabilities

141

Estimated Veteran Population

At the beginning of FY 2002

(Total – 24,770,200)
Chapter 4 The Future – Forecasting Program Liabilities

142

Disability Compensation Recipients by Residence

At the Beginning of FY Year 2002

(In Ascending Order for US)

District of Columbia 4,469

Vermont 4,860

Wyoming 5,193

North Dakota 5,667

Delaware 6,887

South Dakota 8,337

Rhode Island19,825

Alaska 9,962

Montana 10,860

Hawaii 11,794

Idaho 12,738

Utah 13,173

New Hampshire 13,541

Nebraska 16,271

Maine 16,823

Iowa 18,236

West Virginia 18,882

Connecticut 20,115

Nevada 21,463

New Mexico 21,511

Kansas 21,717

Mississippi 24,167

Arkansas 29,621

Oregon 31,948

Louisiana 33,708

Kentucky 34,809

Minnesota 35,515

Indiana 38,846

Wisconsin 38,849

South Carolina 41,009

Missouri 42,260

Maryland 42,292

Oklahoma 42,827

Colorado 43,702

New Jersey 49,576

Alabama 49,755

Tennessee 50,334

Arizona 50,959

Illinois 54,949

Massachusetts 57,776

Michigan 59,881

Washington 73,375

Georgia 78,008

North Carolina 79,712

Ohio 80,844

Virginia 80,849

Pennsylvania 89,044

New York 104,182

Texas 183,524

Florida 190,425

California 198,511

United States Total 2,283,581

Philippines 5,610

Puerto Rico 18,387

Territories & Foreign Countries 13,525

Total Compensation Recipients 2,321,103

Source: Benefits Delivery Network – RCS 20-0237

1

 Rhode Island and Alaska are reversed in the RCS 20-0237.
Chapter 4 The Future – Forecasting Program Liabilities

143

Disability Compensation Recipients

At the Beginning of FY 2002

(Total – 2,283,581)
Chapter 4 The Future – Forecasting Program Liabilities

144

Projected Disability Compensation Cost by Residence Based on Monthly

Value at the Beginning FY 2002 and Projected through the Fiscal Year

(In Ascending Order for US)

Residence

Monthly Value

Beginning FY 2002

Projected Annual

Value FY 2002

District of Columbia $2,554,782 $30,657,384

Wyoming $2,878,712 $34,544,544

North Dakota $3,064,809 $36,777,708

Vermont $3,136,885 $37,642,620

Delaware $3,565,785 $42,789,420

South Dakota $5,054,668 $60,656,016

Rhode Island $5,765,992 $69,191,904

Alaska $5,916,347 $70,996,164

Montana $6,716,623 $80,599,476

Hawaii $6,933,071 $83,196,852

Utah $7,204,104 $86,449,248

Idaho $7,408,286 $88,899,432

New Hampshire $7,894,762 $94,737,144

Iowa $9,899,057 $118,788,684

Connecticut $10,084,531 $121,014,372

Nebraska $10,184,069 $122,208,828

Nevada $11,408,240 $136,898,880

Kansas $11,532,186 $138,386,232

Maine $13,239,929 $158,879,148

West Virginia $13,749,704 $164,996,448

New Mexico $15,508,198 $186,098,376

Mississippi $15,900,807 $190,809,684

Indiana $20,004,749 $240,056,988

Minnesota $20,070,042 $240,840,504

Louisiana $20,276,445 $243,317,340

Oregon $20,893,064 $250,716,768

Kentucky $21,101,670 $253,220,040

Wisconsin $21,587,088 $259,045,056

Maryland $21,829,761 $261,957,132

Arkansas $22,093,401 $265,120,812

Colorado $23,337,246 $280,046,952

South Carolina $23,564,753 $282,777,036

Missouri $24,173,456 $290,081,472

New Jersey $24,462,718 $293,552,616

Illinois $26,481,860 $317,782,320

Alabama $26,870,429 $322,445,148

Michigan $29,289,961 $351,479,532

Tennessee $29,749,603 $356,995,236

Arizona $30,331,499 $363,977,988

Oklahoma $30,935,666 $371,227,992

Massachusetts $31,410,615 $376,927,380

Ohio $40,110,878 $481,330,536

Georgia $41,452,702 $497,432,424

Virginia $41,640,869 $499,690,428

Washington $43,252,762 $519,033,144

North Carolina $46,573,805 $558,885,660

Pennsylvania $47,820,046 $573,840,552

New York $55,249,550 $662,994,600

California $106,871,385 $1,282,456,620

Texas $107,510,846 $1,290,130,152

Florida $111,443,787 $1,337,325,444

United States Total $1,289,992,203 $15,479,906,436

Philippines $3,612,999 $43,355,988

Puerto Rico $16,595,267 $199,143,204

Territories & Foreign Countries $6,985,750 $83,829,000

Total Compensation $1,317,186,219 $15,806,234,628

Source: Benefits Delivery Network - RCS 20-0237
Chapter 4 The Future – Forecasting Program Liabilities

145
Appendix A Geographic Distribution of Data

146

Projected Disability Compensation Cost1

Based on Monthly Value at the Beginning of FY 2002

And Projected through the Fiscal Year.

(Total - $15,479.9)

 

1

 This cost is reflective for veterans only.
Appendix A Geographic Distribution of Data

147

Projected Average Disability Compensation Benefit

Per Veteran Beneficiary by Residence for FY 2002

(In Ascending Order for US)

Residence Average Annual Amount

Per Veteran

Illinois $5,783

Michigan $5,870

New Jersey $5,921

Ohio $5,954

Connecticut $6,016

Indiana $6,180

Virginia $6,181

Maryland $6,194

Delaware $6,213

New York $6,364

Kansas $6,372

Georgia $6,377

Nevada $6,378

Colorado $6,408

Pennsylvania $6,444

California $6,460

Alabama $6,481

North Dakota $6,490

Iowa $6,514

Massachusetts $6,524

Utah $6,563

Wyoming $6,652

Wisconsin $6,668

Minnesota $6,781

District of Columbia $6,860

Missouri $6,864

South Carolina $6,895

Idaho $6,979

New Hampshire $6,996

North Carolina $7,011

Florida $7,023

Texas $7,030

Rhode Island $7,042

Hawaii $7,054

Washington $7,074

Tennessee $7,093

Alaska $7,127

Arizona $7,143

Louisiana $7,218

Kentucky $7,275

South Dakota $7,276

Montana $7,422

Nebraska $7,511

Vermont $7,745

Oregon $7,848

Mississippi $7,895

New Mexico $8,651

Oklahoma $8,668

West Virginia $8,738

Arkansas $8,950

Maine $9,444

United States Average $6,779

Philippines $7,728

Puerto Rico $10,831

Territories & Foreign Countries $6,198

Average of All $6,810

Source: Benefits Delivery Network - RCS 20-0237
Appendix A Geographic Distribution of Data

148

Projected Average Disability Compensation Benefit

Per Veteran Beneficiary

For FY 2002
Appendix A Geographic Distribution of Data

149

Disability Compensation Recipients by Residence

Based on Combined Degree of Disability

At the Beginning of FY 2002

(In Alphabetical Order for US)

Residence 0% 10% 20% 30% 40% 50%

Alabama 280 17,345 8,494 6,871 4,665 2,666

Alaska 49 2,605 1,567 1,315 1,129 813

Arizona 358 17,728 8,245 6,724 4,405 2,555

Arkansas 159 8,141 4,367 3,828 2,749 1,756

California 2,092 74,017 32,290 26,465 16,594 9,649

Colorado 268 15,369 7,490 5,933 4,049 2,272

Connecticut 198 8,219 3,156 2,468 1,489 946

Delaware 51 2,528 1,188 940 596 353

District of Columbia 56 1,559 667 596 356 233

Florida 1,116 69,454 30,128 24,251 15,751 9,484

Georgia 405 27,543 13,886 10,759 7,168 3,871

Hawaii 189 3,997 1,868 1,557 1,058 607

Idaho 72 4,258 2,196 1,682 1,121 715

Illinois 560 22,004 8,998 7,282 4,365 2,703

Indiana 314 14,224 6,608 5,140 3,389 1,995

Iowa 132 6,574 2,949 2,448 1,573 951

Kansas 147 8,208 3,652 2,851 1,815 939

Kentucky 255 11,141 5,657 4,781 3,254 1,981

Louisiana 192 11,440 5,273 4,493 2,888 1,945

Maine 82 4,843 2,314 2,012 1,401 928

Maryland 343 15,169 7,110 5,857 3,883 2,141

Massachusetts 371 22,685 8,004 7,944 4,221 3,016

Michigan 598 23,438 9,697 8,362 4,749 2,995

Minnesota 270 13,483 5,339 4,374 2,771 1,830

Mississippi 152 7,498 3,834 3,293 2,107 1,253

Missouri 325 14,996 6,619 5,747 3,748 2,180

Montana 58 3,568 1,729 1,446 999 629

Nebraska 71 5,349 2,403 2,184 1,565 931

Nevada 134 8,022 3,606 2,795 1,808 985

New Hampshire 66 4,676 2,153 1,746 1,219 786

New Jersey 405 20,398 7,448 6,291 3,768 2,571

New Mexico 139 6,674 3,143 2,593 1,857 1,090

New York 998 42,874 14,549 13,063 7,245 5,462

North Carolina 438 25,595 13,751 11,220 7,759 4,309

North Dakota 28 2,023 980 775 481 309

Ohio 651 31,088 13,588 10,891 6,837 4,054

Oklahoma 219 11,725 6,701 5,606 4,013 2,599

Oregon 248 9,831 4,744 4,041 2,950 1,914

Pennsylvania 738 33,617 13,699 11,911 7,173 4,689

Rhode Island 50 3,714 1,456 1,223 734 494

South Carolina 191 14,097 6,899 5,503 3,688 2,077

South Dakota 47 2,784 1,402 1,094 716 433

Tennessee 395 16,788 8,456 6,789 4,317 2,626

Texas 1,134 61,383 30,245 24,348 17,122 9,745

Utah 74 4,522 2,245 1,703 1,230 782

Vermont 42 1,527 714 658 421 289

Virginia 443 27,407 14,270 11,883 8,219 4,277

Washington 445 24,706 11,695 9,714 6,842 3,895

West Virginia 131 5,533 2,535 2,425 1,661 1,222

Wisconsin 297 14,556 5,973 4,858 3,201 2,019

Wyoming 22 1,744 905 697 503 278

United States Total 16,498 812,667 366,885 303,430 197,622 119,242

Philippines 99 1,055 604 663 524 285

Puerto Rico 204 4,675 2,283 2,119 1,358 986

Territories & Foreign Countries 105 4,391 2,341 1,944 1,450 803
Appendix A Geographic Distribution of Data

150

Total Recipients 16,906 822,788 372,113 308,156 200,954 121,316
Appendix A Geographic Distribution of Data

151

Disability Compensation Recipients by Residence

Based on Combined Degree of Disability

at the Beginning of FY 2002

(In Alphabetical Order for US)

Residence 60% 70% 80% 90% 100% Total

Alabama 2,565 1,865 1,136 525 3,343 49,755

Alaska 868 533 385 186 512 9,962

Arizona 2,932 2,094 1,358 715 3,845 50,959

Arkansas 2,185 1,599 1,113 546 3,178 29,621

California 9,370 7,807 4,450 2,141 13,636 198,511

Colorado 2,255 1,537 926 480 3,123 43,702

Connecticut 862 706 390 161 1,520 20,115

Delaware 329 195 102 54 551 6,887

District of Columbia 239 182 90 43 448 4,469

Florida 10,893 7,754 4,964 2,185 14,445 190,425

Georgia 4,003 2,656 1,619 660 5,438 78,008

Hawaii 610 485 269 128 1,026 11,794

Idaho 730 573 345 172 874 12,738

Illinois 2,345 1,757 986 491 3,458 54,949

Indiana 2,119 1,340 818 445 2,454 38,846

Iowa 973 707 438 217 1,274 18,236

Kansas 1,017 718 426 228 1,716 21,717

Kentucky 2,027 1,355 904 437 3,017 34,809

Louisiana 1,976 1,524 856 393 2,728 33,708

Maine 1,035 1,319 754 336 1,799 16,823

Maryland 2,121 1,329 721 424 3,194 42,292

Massachusetts 2,982 2,499 1,190 481 4,383 57,776

Michigan 2,823 1,843 1,037 526 3,813 59,881

Minnesota 1,823 1,499 953 457 2,716 35,515

Mississippi 1,531 975 712 344 2,468 24,167

Missouri 2,329 1,655 1,083 467 3,111 42,260

Montana 623 481 285 155 887 10,860

Nebraska 1,038 696 534 280 1,220 16,271

Nevada 1,188 792 463 261 1,409 21,463

New Hampshire 784 579 388 178 966 13,541

New Jersey 2,220 1,552 1,074 567 3,282 49,576

New Mexico 1,376 1,520 863 357 1,899 21,511

New York 4,809 4,029 2,151 967 8,035 104,182

North Carolina 4,727 3,254 2,002 907 5,750 79,712

North Dakota 315 169 132 73 382 5,667

Ohio 3,841 2,455 1,547 755 5,137 80,844

Oklahoma 3,104 2,541 1,444 648 4,227 42,827

Oregon 1,994 1,591 1,020 535 3,080 31,948

Pennsylvania 4,574 3,498 2,000 882 6,263 89,044

Rhode Island 539 441 261 104 809 9,825

South Carolina 2,165 1,684 1,069 493 3,143 41,009

South Dakota 444 305 207 134 771 8,337

Tennessee 2,861 1,897 1,244 604 4,357 50,334

Texas 11,369 8,147 5,165 2,279 12,587 183,524

Utah 719 514 302 174 908 13,173

Vermont 347 261 146 59 396 4,860

Virginia 4,402 2,762 1,706 786 4,694 80,849

Washington 3,964 3,759 2,054 1,075 5,226 73,375

West Virginia 1,192 1,165 760 345 1,913 18,882

Wisconsin 2,091 1,413 929 522 2,990 38,849

Wyoming 292 179 126 65 382 5,193

United States Total 123,920 92,190 55,897 26,447 168,783 2,283,581

Philippines 883 364 272 91 770 5,610

Puerto Rico 1,179 856 501 239 3,987 18,387

Territories & Foreign Countries 806 503 275 131 776 13,525

Total Recipients 126,788 93,913 56,945 26,908 174,316 2,321,103

Source: Benefits Delivery Network – RCS 20-0238
Appendix A Geographic Distribution of Data

152

Disability Compensation Recipients by Residence Based on Age

at the Beginning of FY 2002

(In Alphabetical Order for US)

Under 20 20-29 30-39 40-49 50-59 60-69 70-79 80-84 85+ Total

Alabama 3 1,334 4,392 9,585 14,645 7,437 8,227 3,154 978 49,755

Alaska 0 349 1,314 2,875 3,444 1,064 682 189 45 9,962

Arizona 3 1,695 4,676 8,334 13,144 7,679 9,904 4,166 1,358 50,959

Arkansas 5 896 2,904 4,882 8,177 4,330 5,249 2,408 770 29,621

California 12 7,359 17,931 31,508 54,118 26,886 37,743 16,746 6,208 198,511

Colorado 2 1,648 5,090 8,763 12,516 6,049 6,217 2,526 891 43,702

Connecticut 1 516 1,493 2,336 5,042 2,175 4,911 2,635 1,006 20,115

Delaware 1 196 610 1,367 1,948 905 1,244 468 148 6,887

District of Columbia

(DC)

0 90 385 788 1,245 567 833 350 211 4,469

Florida 8 4,942 14,693 31,332 45,710 28,102 40,497 18,319 6,822 190,425

Georgia 2 2,743 9,630 18,585 22,045 10,293 9,756 3,800 1,154 78,008

Hawaii 0 284 1,007 2,154 3,459 1,688 2,151 807 244 11,794

Idaho 3 497 1,425 2,054 3,533 1,794 2,181 941 310 12,738

Illinois 7 2,443 5,950 8,043 14,666 5,409 11,273 5,272 1,886 54,949

Indiana 3 1,296 4,498 6,515 10,843 4,092 7,472 3,193 934 38,846

Iowa 1 546 1,918 2,592 5,006 1,793 3,748 1,931 701 18,236

Kansas 2 616 2,106 3,999 6,090 2,698 3,886 1,705 615 21,717

Kentucky 3 1,236 3,663 5,895 9,350 4,421 6,633 2,761 847 34,809

Louisiana 4 1,408 3,752 5,075 9,123 4,807 6,260 2,519 760 33,708

Maine 1 572 1,629 2,873 5,074 2,257 2,857 1,188 372 16,823

Maryland 3 1,343 4,823 8,397 11,666 5,416 6,795 2,827 1,022 42,292

Massachusetts 1 1,057 3,176 5,756 13,265 7,739 16,150 7,542 3,090 57,776

Michigan 4 1,755 5,855 7,950 17,248 6,210 13,169 5,917 1,773 59,881

Minnesota 2 1,072 3,652 4,892 9,603 3,723 7,346 3,779 1,446 35,515

Mississippi 1 624 2,122 4,020 6,383 3,750 4,771 1,901 595 24,167

Missouri 2 1,208 4,040 7,113 11,968 5,135 8,124 3,459 1,211 42,260

Montana 0 441 1,138 1,895 3,256 1,438 1,682 757 253 10,860

Nebraska 0 686 1,774 2,912 4,219 2,080 2,904 1,238 458 16,271

Nevada 0 676 1,978 3,790 6,033 3,380 3,854 1,340 412 21,463

New Hampshire 0 388 1,207 2,159 3,896 2,065 2,559 924 343 13,541

New Jersey 2 858 2,882 5,278 12,622 5,893 13,129 6,533 2,379 49,576

New Mexico 2 555 1,585 3,567 6,487 3,308 3,818 1,618 571 21,511

New York 1 2,478 6,934 11,809 28,436 11,370 25,441 12,357 5,356 104,182

North Carolina 1 3,030 9,608 17,161 21,630 10,986 11,831 4,215 1,250 79,712

North Dakota 0 182 605 973 1,629 617 903 556 202 5,667

Ohio 10 2,481 8,321 12,222 21,762 8,545 17,275 7,702 2,526 80,844

Oklahoma 4 1,286 3,808 7,146 12,967 6,407 7,370 2,963 876 42,827

Oregon 0 1,332 3,564 5,093 9,613 3,766 5,331 2,442 807 31,948

Pennsylvania 2 2,082 6,437 10,768 22,983 10,150 22,559 10,571 3,492 89,044

Rhode Island 0 220 651 1,148 2,540 1,131 2,403 1,238 494 9,825

South Carolina 2 1,461 4,315 8,454 11,550 6,239 6,208 2,137 643 41,009

South Dakota 1 287 900 1,512 2,526 1,053 1,285 566 207 8,337

Tennessee 2 1,802 5,933 9,603 14,007 6,651 8,195 3,152 989 50,334

Texas 19 7,133 18,635 33,211 50,934 27,553 29,765 12,175 4,099 183,524

Utah 1 481 1,199 2,267 3,605 1,654 2,550 1,084 332 13,173

Vermont 0 110 400 762 1,485 616 964 388 135 4,860

Virginia 0 2,408 7,952 17,364 24,085 11,948 11,509 4,226 1,357 80,849

Washington 4 2,823 8,654 15,227 21,933 9,605 9,827 3,982 1,320 73,375

West Virginia 1 617 1,802 2,346 5,807 2,636 3,819 1,404 450 18,882

Wisconsin 1 1,546 4,439 5,930 10,833 4,292 7,443 3,311 1,054 38,849

Wyoming 0 184 522 962 1,670 636 824 293 102 5,193

US Total

TotalSTotals

127 73,272 217,977 381,242 625,819 300,438 431,527 187,675 65,504 2,283,581

Philippines 2 7 49 255 513 316 1,390 2,305 773 5,610

Puerto Rico 0 308 1,258 3,466 5,535 2,735 3,805 982 298 18,387

All Other 0 417 1,752 3,526 3,965 1,840 1,402 431 192 13,525

Total Recipients

Recipients

129 74,004 221,036 388,489 635,832 305,329 438,124 191,393 66,767 2,321,103

Source: Benefits Delivery Network – RCS 20-0238
Appendix A Geographic Distribution of Data

153
Appendix A Geographic Distribution of Data

154

Compensation Recipients with Power of Attorney

by Residence1

(In Alphabetical Order)

Alabama 30,867

Alaska 6,938

Arizona 29,147

Arkansas 19,266

California 121,201

Colorado 25,255

Connecticut 8,754

Delaware 3,627

District of Columbia 2,140

Florida 118,284

Georgia 41,994

Hawaii 4,896

Idaho 9,001

Illinois 28,539

Indiana 20,915

Iowa 11,172

Kansas 14,303

Kentucky 20,243

Louisiana 23,070

Maine 10,998

Maryland 17,882

Massachusetts 27,703

Michigan 35,291

Minnesota 24,605

Mississippi 14,291

Missouri 25,495

Montana 7,855

Nebraska 11,201

Nevada 11,228

New Hampshire 7,314

New Jersey 22,305

New Mexico 13,585

New York 51,994

North Carolina 53,567

North Dakota 4,357

Ohio 43,267

Oklahoma 26,900

Oregon 22,670

Pennsylvania 42,651

Rhode Island 4,862

South Carolina 25,006

South Dakota 6,078

Tennessee 30,982

Texas 114,571

Utah 6,852

Vermont 3,023

Virginia 46,564

Washington 52,179

West Virginia 12,933

Wisconsin 27,111

Wyoming 3,002

United States Total 1,347,934

1

Information as of EOM December, 2001.

Source: Compensation & Pension Master Record
Appendix A Geographic Distribution of Data

155

Veteran Compensation Recipients

with Power of Attorney

As of End of Month December 2001

(Total – 1,347,934)
Appendix A Geographic Distribution of Data

156

Compensation Recipients

without Power of Attorney

By Residence1

(In Alphabetical Order)

Alabama 19,272

Alaska 3,160

Arizona 22,374

Arkansas 10,446

California 77,663

Colorado 18,844

Connecticut 11,402

Delaware 3,316

District of Columbia 2,345

Florida 73,345

Georgia 36,725

Hawaii 7,067

Idaho 3,960

Illinois 26,611

Indiana 18,037

Iowa 7,072

Kansas 7,494

Kentucky 14,710

Louisiana 10,838

Maine 5,951

Maryland 24,796

Massachusetts 29,805

Michigan 24,595

Minnesota 11,227

Mississippi 9,995

Missouri 17,071

Montana 3,108

Nebraska 5,337

Nevada 10,527

New Hampshire 6,299

New Jersey 27,154

New Mexico 8,196

New York 52,052

North Carolina 27,203

North Dakota 1,386

Ohio 37,549

Oklahoma 16,186

Oregon 9,492

Pennsylvania 46,294

Rhode Island 4,974

South Carolina 16,544

South Dakota 2,332

Tennessee 19,538

Texas 70,655

Utah 6,434

Vermont 1,896

Virginia 34,987

Washington 21,650

West Virginia 6,113

Wisconsin 11,818

Wyoming 2,237

 United States Total 948,082

1

Information as of EOM December, 2001.

Source: Compensation & Pension Master Record
Appendix A Geographic Distribution of Data

157

Veteran Compensation Recipients

without Power of Attorney

As of End of Month December 2001

(Total – 948,082)
Appendix A Geographic Distribution of Data

158

Disability Pension Recipients by Residence

at the Beginning of FY 2002

(In Ascending Order for US)

Alaska 311

Wyoming 560

Delaware 658

Vermont 664

Hawaii 717

North Dakota 1,052

New Hampshire 1,074

Rhode Island 1,110

Utah 1,160

District of Columbia 1,288

Idaho 1,375

Montana 1,704

South Dakota 1,815

Connecticut 1,970

Nebraska 2,468

Nevada 2,618

Maine 3,140

Colorado 3,218

New Mexico 3,248

Kansas 3,287

Iowa 3,520

New Jersey 3,918

Maryland 4,204

Massachusetts 4,939

Arizona 4,978

West Virginia 5,090

Washington 5,111

Indiana 5,141

Minnesota 5,218

Oregon 5,458

Wisconsin 5,580

Arkansas 6,730

Mississippi 7,237

South Carolina 7,470

Virginia 7,520

Kentucky 7,965

Missouri 8,316

Michigan 8,810

Oklahoma 9,035

Alabama 10,086

Tennessee 10,430

Louisiana 10,763

Georgia 11,087

Illinois 11,102

North Carolina 11,579

Ohio 13,407

Pennsylvania 14,987

New York 16,917

Florida 20,500

California 24,390

Texas 26,575

United States Total 331,500

Philippines 1,035

Puerto Rico 14,561

Territories & Foreign Countries 956

Total Recipients 348,052

Source: Benefits Delivery Network – RCS 20-0238
Appendix A Geographic Distribution of Data

159

Disability Pension Recipients

At the Beginning of FY 2002

(Total – 331,500)
Appendix A Geographic Distribution of Data

160

Projected Disability Pension Cost1 by Residence Based on Monthly Value at the

Beginning FY 2002 and Projected through the Fiscal Year

(In Ascending Order for US)

Residence Monthly Value Beginning FY 2001 Projected Annual Value FY 2001

Alaska $177,276 $2,127,312

Wyoming $262,937 $3,155,244

Delaware $291,912 $3,502,944

Vermont $316,474 $3,797,688

Hawaii $399,390 $4,792,680

North Dakota $546,840 $6,562,080

New Hampshire $561,081 $6,732,972

Utah $565,756 $6,789,072

Rhode Island $575,539 $6,906,468

District of Columbia $682,109 $8,185,308

Idaho $755,411 $9,064,932

Connecticut $760,417 $9,125,004

Montana $862,273 $10,347,276

South Dakota $980,778 $11,769,336

Nevada $1,283,033 $15,396,396

Nebraska $1,491,718 $17,900,616

Maine $1,600,421 $19,205,052

New Mexico $1,675,959 $20,111,508

Colorado $1,718,932 $20,627,184

Kansas $1,737,330 $20,847,960

New Jersey $1,963,507 $23,562,084

Iowa $1,998,129 $23,977,548

Maryland $2,145,446 $25,745,352

Massachusetts $2,323,760 $27,885,120

Indiana $2,548,505 $30,582,060

Arizona $2,556,117 $30,673,404

Minnesota $2,576,394 $30,916,728

Washington $2,778,657 $33,343,884

West Virginia $2,848,134 $34,177,608

Wisconsin $3,014,511 $36,174,132

Arkansas $3,207,472 $38,489,664

Oregon $3,291,454 $39,497,448

Mississippi $3,511,913 $42,142,956

Virginia $3,527,119 $42,325,428

South Carolina $3,787,738 $45,452,856

Kentucky $4,033,561 $48,402,732

Missouri $4,448,601 $53,383,212

Michigan $5,083,526 $61,002,312

North Carolina $5,132,093 $61,585,116

Tennessee $5,137,038 $61,644,456

Georgia $5,444,375 $65,332,500

Louisiana $5,649,498 $67,793,976

Alabama $5,807,022 $69,684,264

Illinois $5,847,444 $70,169,328

Oklahoma $6,132,820 $73,593,840

Ohio $7,266,946 $87,203,352

New York $8,144,071 $97,728,852

Pennsylvania $8,155,552 $97,866,624

Florida $10,844,937 $130,139,244

California $12,304,270 $147,651,240

Texas $13,694,720 $164,336,640

United States Total $172,450,916 $2,069,410,992

Philippines $1,029,831 $12,357,972

Puerto Rico $7,041,552 $84,498,624

Territories & Foreign $585,061 $7,020,732

Total Pension $181,107,360 $2,173,288,320

Source: Benefits Delivery Network - RCS 20-0237

 

1

 This cost is reflective for veterans only.
Appendix A Geographic Distribution of Data

161

Projected Disability Pension Cost1

Based on Monthly Value at the Beginning of FY 2002

and Projected through the Fiscal Year

(Total - $2,069.4)

 

1

 This cost is reflective for veterans only.
Appendix A Geographic Distribution of Data

162

Pension Recipients by Residence Based on Age

at the Beginning of FY 2002

(In Alphabetical Order for US)

Under 20 20-29 30-39 40-49 50-59 60-69 70-79 80-84 85+ Total

Alabama 0 5 34 538 1,440 1,181 4,025 2,006 857 10,086

Alaska 0 0 1 50 162 43 46 8 1 311

Arizona 0 1 18 466 1,341 758 1,593 541 260 4,978

Arkansas 1 5 27 462 1,406 789 2,259 1,189 592 6,730

California 0 20 83 2,167 6,503 3,386 7,651 2,987 1,593 24,390

Colorado 0 0 13 304 812 423 988 449 229 3,218

Connecticut 0 0 3 126 438 238 655 319 191 1,970

Delaware 0 0 2 58 162 80 235 85 36 658

District of Columbia

CCioColumbia (DC)

0 1 4 118 319 197 463 140 46 1,288

Florida 0 16 68 1,589 5,199 2,976 6,769 2,649 1,234 20,500

Georgia 1 2 49 710 2,344 1,506 3,981 1,799 695 11,087

Hawaii 0 0 3 75 256 99 182 64 38 717

Idaho 1 0 2 86 287 192 476 229 102 1,375

Illinois 0 6 41 847 2,907 1,553 3,831 1,315 602 11,102

Indiana 1 2 14 409 1,262 772 1,795 621 265 5,141

Iowa 0 2 10 237 705 437 1,283 540 306 3,520

Kansas 0 2 12 277 792 408 1,101 473 222 3,287

Kentucky 0 3 15 425 1,544 1,082 3,151 1,207 538 7,965

Louisiana 0 8 64 775 2,272 1,218 3,913 1,764 749 10,763

Maine 0 5 10 304 862 430 977 393 159 3,140

Maryland 0 1 20 358 1,040 586 1,507 478 214 4,204

Massachusetts 0 2 25 396 1,183 716 1,720 563 334 4,939

Michigan 0 0 45 783 2,701 1,198 2,706 950 427 8,810

Minnesota 0 3 10 295 952 572 1,821 970 595 5,218

Mississippi 0 3 22 337 1,026 680 2,959 1,562 648 7,237

Missouri 0 2 15 631 1,897 1,063 2,895 1,222 591 8,316

Montana 0 0 6 133 438 228 555 219 125 1,704

Nebraska 0 4 8 168 518 308 889 378 195 2,468

Nevada 0 1 10 234 685 418 876 262 132 2,618

New Hampshire 1 0 0 73 259 146 353 154 88 1,074

New Jersey 0 3 12 267 799 557 1,467 555 258 3,918

New Mexico 0 0 12 267 832 395 1,066 469 207 3,248

New York 1 8 64 1,364 4,021 2,361 5,886 2,054 1,158 16,917

North Carolina 0 7 35 709 1,978 1,292 4,437 2,306 815 11,579

North Dakota 0 0 1 49 212 96 432 161 101 1,052

Ohio 0 7 57 1,319 4,118 1,945 4,109 1,324 528 13,407

Oklahoma 0 5 30 632 2,321 1,305 2,956 1,222 564 9,035

Oregon 0 8 24 522 1,537 737 1,637 656 337 5,458

Pennsylvania 0 3 63 1,080 3,808 2,070 5,128 1,885 950 14,987

Rhode Island 0 0 2 80 304 152 367 134 71 1,110

South Carolina 1 1 21 422 1,500 970 2,818 1,271 466 7,470

South Dakota 0 1 5 97 364 260 684 262 142 1,815

Tennessee 0 4 23 616 2,049 1,386 3,829 1,746 777 10,430

Texas 0 22 93 1,931 6,321 3,319 9,131 3,828 1,930 26,575

Utah 0 1 5 105 268 154 395 158 74 1,160

Vermont 0 1 0 44 155 89 253 73 49 664

Virginia 0 2 27 524 1,497 955 2,872 1,185 458 7,520

Washington 0 2 26 519 1,393 726 1,520 599 326 5,111

West Virginia 0 5 25 376 1,391 739 1,708 555 291 5,090

Wisconsin 0 5 20 453 1,286 706 1,829 805 476 5,580

Wyoming 0 0 3 48 133 104 180 67 25 560

US Total 7 179 1,182 24,855 77,999 44,001 114,359 46,851 22,067 331,500

Philippines 1 0 1 11 118 119 178 387 220 1,035

Puerto Rico 1 2 5 257 1,133 2,484 7,027 2,679 973 14,561

All Others 0 0 2 27 131 108 394 185 109 956

Total Recipients 9 181 1,190 25,150 79,381 46,712 121,9588 50,102 23,369 348,052

Source: Benefits Delivery Network – RCS 20-0238
Appendix A Geographic Distribution of Data

163
Appendix A Geographic Distribution of Data

164

Projected Average Disability Pension Benefit Per

Veteran Beneficiary by Residence for FY 2002

(In Ascending Order for US)

Residence Average Annual Amount Per

Veteran

Connecticut $4,632

North Carolina $5,319

Delaware $5,324

Virginia $5,628

Wyoming $5,634

Massachusetts $5,646

Arkansas $5,719

Vermont $5,719

New York $5,777

Mississippi $5,823

Utah $5,853

Nevada $5,881

Georgia $5,893

Tennessee $5,910

Minnesota $5,925

Indiana $5,949

New Jersey $6,014

California $6,054

Montana $6,072

Kentucky $6,077

South Carolina $6,085

Maine $6,116

Maryland $6,124

Arizona $6,162

Texas $6,184

New Mexico $6,192

Rhode Island $6,222

North Dakota $6,238

New Hampshire $6,269

Louisiana $6,299

Illinois $6,320

Kansas $6,343

Florida $6,348

District of Columbia $6,355

Colorado $6,410

Missouri $6,419

Wisconsin $6,483

South Dakota $6,484

Ohio $6,504

Washington $6,524

Pennsylvania $6,530

Idaho $6,593

Hawaii $6,684

West Virginia $6,715

Iowa $6,812

Alaska $6,840

Alabama $6,909

Michigan $6,924

Oregon $7,237

Nebraska $7,253

Oklahoma $8,145

United States Average $6,243

Philippines $11,940

Puerto Rico $5,803

Territories & Foreign Countries $7,344

Average of All $6,244

Source: Benefits Delivery Network – RCS 20-0238
Appendix A Geographic Distribution of Data

165

Projected Average Disability Pension Benefit

Per Veteran Beneficiary

For FY 2002
Appendix A Geographic Distribution of Data

166

Pension Recipients with Power of Attorney

by Residence1

(In Alphabetical Order)

Alabama 9,151

Alaska 187

Arizona 3,647

Arkansas 5,700

California 19,444

Colorado 2,809

Connecticut 1,329

Delaware 416

District of Columbia 507

Florida 18,008

Georgia 9,442

Hawaii 305

Idaho 1,188

Illinois 6,886

Indiana 3,298

Iowa 2,648

Kansas 2,998

Kentucky 5,916

Louisiana 9,402

Maine 2,440

Maryland 2,123

Massachusetts 3,006

Michigan 6,969

Minnesota 4,888

Mississippi 5,658

Missouri 6,735

Montana 1,470

Nebraska 2,262

Nevada 1,600

New Hampshire 676

New Jersey 2,420

New Mexico 2,620

New York 9,715

North Carolina 10,870

North Dakota 970

Ohio 10,264

Oklahoma 7,347

Oregon 4,514

Pennsylvania 7,757

Rhode Island 518

South Carolina 6,407

South Dakota 1,558

Tennessee 8,889

Texas 22,177

Utah 606

Vermont 405

Virginia 6,201

Washington 4,201

West Virginia 4,207

Wisconsin 4,777

Wyoming 346

United States Total 257,877

1

Information as of EOM December, 2001

Source: Compensation & Pension Master Record

.
Appendix A Geographic Distribution of Data

167

Veteran Pension Recipients

with Power of Attorney

As of End of Month December 2001

(Total – 257,877)
Appendix A Geographic Distribution of Data

168

Pension Recipients without Power of Attorney

by Residence1

(In Alphabetical Order)

Alabama 1,032

Alaska 123

Arizona 1,394

Arkansas 1,036

California 4,895

Colorado 450

Connecticut 648

Delaware 223

District of Columbia 763

Florida 2,701

Georgia 1,712

Hawaii 416

Idaho 232

Illinois 4,243

Indiana 1,874

Iowa 863

Kansas 326

Kentucky 1,952

Louisiana 1,378

Maine 703

Maryland 2,050

Massachusetts 1,884

Michigan 1,828

Minnesota 378

Mississippi 1,597

Missouri 1,528

Montana 247

Nebraska 217

Nevada 1,088

New Hampshire 408

New Jersey 1,417

New Mexico 613

New York 7,127

North Carolina 677

North Dakota 83

Ohio 3,159

Oklahoma 1,723

Oregon 999

Pennsylvania 7,233

Rhode Island 578

South Carolina 1,040

South Dakota 252

Tennessee 1,533

Texas 4,393

Utah 550

Vermont 262

Virginia 1,212

Washington 904

West Virginia 893

Wisconsin 833

Wyoming 203

United States Total 73,873

1

Information as of EOM December, 2001

Source: Compensation & Pension Master Record

.
Appendix A Geographic Distribution of Data

169

Veteran Pension Recipients

without Power of Attorney

As of End of Month December 2001

(Total – 73,873)
Appendix A Geographic Distribution of Data

170

Education Beneficiaries Trained by Residence During FY 2001

(In Alphabetical Order for US)

Alabama 7,645

Alaska 1,266

Arizona 12,129

Arkansas 4,155

California 39,115

Colorado 8,462

Connecticut 2,802

Delaware 1,015

District of Columbia 957

Florida 26,598

Georgia 14,701

Hawaii 2,976

Idaho 2,390

Illinois 15,105

Indiana 6,405

Iowa 3,945

Kansas 4,312

Kentucky 5,303

Louisiana 7,818

Maine 1,739

Maryland 8,929

Massachusetts 5,221

Michigan 9,315

Minnesota 6,173

Mississippi 4,317

Missouri 7,808

Montana 1,609

Nebraska 3,703

Nevada 2,895

New Hampshire 1,227

New Jersey 4,618

New Mexico 3,969

New York 12,191

North Carolina 12,883

North Dakota 1,847

Ohio 13,176

Oklahoma 8,492

Oregon 5,432

Pennsylvania 11,724

Rhode Island 1,136

South Carolina 7,029

South Dakota 1,802

Tennessee 7,243

Texas 32,583

Utah 3,610

Vermont 555

Virginia 16,111

Washington 11,097

West Virginia 2,665

Wisconsin 6,273

Wyoming 940

United States Total 385,411

Puerto Rico 4,051

Territories & Foreign Countries 31,588

 Total Beneficiaries 421,050

Source: Benefits Delivery Network – RCS 20-0238
Appendix A Geographic Distribution of Data

171

Education Beneficiaries Trained

 (Total – 385,411)
Appendix A Geographic Distribution of Data

172

Life Insurance Payments by Residence During FY

2001

(In Ascending Order for US)

Alaska $2,604,297

District of Columbia $3,761,147

Wyoming $3,764,334

Vermont $4,473,806

North Dakota $5,003,714

Delaware $5,935,702

South Dakota $6,110,612

Montana $7,739,566

Rhode Island $8,268,882

Idaho $8,271,774

Maine $9,942,799

New Hampshire $10,154,594

West Virginia $10,529,324

Utah $12,018,389

Nevada $13,390,169

New Mexico $13,636,478

Nebraska $14,128,626

Mississippi $14,207,862

Hawaii $16,291,156

Arkansas $16,852,529

Kentucky $18,999,326

Kansas $19,406,248

Oklahoma $21,561,279

Louisiana $23,268,707

Iowa $23,836,431

Oregon $24,523,494

South Carolina $26,281,781

Alabama $26,528,645

Tennessee $29,106,111

Indiana $29,322,096

Colorado $31,224,104

Connecticut $31,671,576

Missouri $37,742,469

Minnesota $39,423,944

Wisconsin $41,322,916

Maryland $42,122,364

Washington $43,019,579

Arizona $43,233,898

Georgia $43,469,275

North Carolina $47,091,176

Michigan $53,545,602

Massachusetts $53,605,904

Virginia $57,083,366

New Jersey $68,553,787

Ohio $73,896,211

Illinois $82,411,791

Pennsylvania $102,139,293

Texas $110,363,952

New York $130,863,140

Florida $179,130,669

California $206,386,070

United States Total $1,948,220,964

Puerto Rico $4,256,581

Virgin Islands $399,808

Canada $1,301,812

Philippines $425,342

Other Territories & Foreign Countries $3,792,347

Total Payments 1$1,958,396,854

Source: Insurance General Ledger Accounting System - FY01 Statement of

Cash Flows and is different in part from source for the tables in Chapter 2.

1

 Excludes VGLI & SGLI
Appendix A Geographic Distribution of Data

173

Life Insurance Payments

During FY 2001

(Total - $1,948.2)
Appendix A Geographic Distribution of Data

174

Face Value of Life Insurance by Residence at the Beginning

 of FY 2002

(In Ascending Order for US)

Alaska $28,168,801

District of Columbia $40,681,609

Wyoming $40,716,080

Vermont $48,389,922

North Dakota $54,121,550

Delaware $64,202,192

South Dakota $66,094,064

Montana $83,713,289

Rhode Island $89,438,519

Idaho $89,469,800

Maine $107,544,066

New Hampshire $109,834,897

West Virginia $113,888,078

Utah $129,994,224

Nevada $144,831,772

New Mexico $147,495,913

Nebraska $152,819,121

Mississippi $153,676,160

Hawaii $176,209,648

Arkansas $182,281,609

Kentucky $205,501,968

Kansas $209,903,345

Oklahoma $233,212,759

Louisiana $251,680,769

Iowa $257,821,432

Oregon $265,252,894

South Carolina $284,271,008

Alabama $286,941,165

Tennessee $314,819,743

Indiana $317,155,895

Colorado $337,728,545

Connecticut $342,568,529

Missouri $408,232,985

Minnesota $426,420,276

Wisconsin $446,960,089

Maryland $455,607,136

Washington $465,311,659

Arizona $467,629,797

Georgia $470,175,695

North Carolina $509,351,179

Michigan $579,164,036

Massachusetts $579,816,287

Virginia $617,429,472

New Jersey $741,496,721

Ohio $799,281,853

Illinois $891,388,720

Pennsylvania $1,104,766,842

Texas $1,193,727,020

New York $1,415,451,910

Florida $1,937,526,852

California $2,232,328,824

United States Total $21,072,496,719

Philippines $4,600,612

Puerto Rico $46,040,357

Virgin Islands $4,324,431

Canada $14,080,763

Other Territories & Foreign Countries $41,019,070

Total Face Value 1$21,182,561,952

Source: Insurance Master Record Database - Insurance Actuarial Subsystem

Report-AVS 2007

1

 Excludes VGLI & SGLI
Appendix A Geographic Distribution of Data

175
Appendix A Geographic Distribution of Data

176

Face Value of Life Insurance

at the Beginning of FY 2002

(Total - $21,072.5)
Appendix A Geographic Distribution of Data

177

Life Insurance Policies by Residence at the

Beginning of FY 2002

(In Ascending Order for US)

Alaska 2,421

Wyoming 3,764

District of Columbia 3,839

Vermont 4,744

North Dakota 5,439

South Dakota 6,579

Delaware 6,823

Montana 8,072

Idaho 8,926

Rhode Island 9,842

Maine 11,248

New Hampshire 11,322

West Virginia 11,373

Utah 13,127

Hawaii 14,178

New Mexico 14,183

Nevada 14,587

Nebraska 14,689

Mississippi 14,757

Arkansas 18,254

Kansas 20,320

Kentucky 20,335

Oklahoma 23,105

Iowa 23,693

Louisiana 23,971

Oregon 26,313

Alabama 27,452

South Carolina 27,649

Tennessee 30,185

Indiana 31,112

Colorado 32,690

Connecticut 34,361

Missouri 40,436

Maryland 42,208

Wisconsin 45,088

Minnesota 45,104

Georgia 45,745

Washington 45,914

Arizona 46,045

North Carolina 47,774

Virginia 56,682

Michigan 60,177

Massachusetts 63,089

New Jersey 73,712

Ohio 80,987

Illinois 83,339

Texas 114,623

Pennsylvania 115,819

New York 139,590

Florida 190,474

California 212,259

United States Total 2,068,418

Philippines 520

Puerto Rico 5,108

Virgin Islands 415

Canada 1,243

Other Territories & Foreign Countries 3,459

Total Policies12,079,163
Appendix A Geographic Distribution of Data

178

Source: Insurance Master Record Database - Insurance Actuarial Subsystem

Report-AVS 2007

1 Excludes VGLI & SGLI
Appendix A Geographic Distribution of Data

179

Life Insurance Policies

at the Beginning of FY 2002

(Total – 2,068,418)
Appendix A Geographic Distribution of Data

180

Home Loans Guaranteed by Residence

During FY 2001

(In Ascending Order for US)

District of Columbia 129

Vermont 321

Hawaii 484

Rhode Island 537

North Dakota 573

Wyoming 593

South Dakota 707

West Virginia 807

Montana 958

Delaware 997

Maine 1,045

Connecticut 1,047

New Hampshire 1,098

Iowa 1,445

Alaska 1,819

Idaho 1,867

Massachusetts 1,910

Mississippi 2,040

Utah 2,146

Arkansas 2,216

Nebraska 2,334

New Mexico 2,341

Kansas 2,590

New Jersey 2,883

New York 2,953

Louisiana 2,965

Minnesota 3,159

Kentucky 3,307

Oklahoma 3,318

Wisconsin 3,337

South Carolina 3,453

Oregon 3,649

Alabama 3,687

Michigan 4,446

Indiana 4,526

Missouri 4,777

Nevada 5,374

Pennsylvania 5,483

Tennessee 5,632

Illinois 6,078

Ohio 7,827

Colorado 9,708

Arizona 9,716

Washington 10,056

Maryland 10,142

North Carolina 10,977

Georgia 11,317

California 17,288

Virginia 18,557

Florida 20,826

Texas 24,004

United States Total 249,449

Puerto Rico 520

Territories 40

Total 250,009

Source: LGY SAS Program
Appendix A Geographic Distribution of Data

181

Home Loans Guaranteed

During FY 2001

(Total – 249,449)
Appendix A Geographic Distribution of Data

182

Loan Amounts Guaranteed by Residence

During FY 2001

(In Ascending Order for US)

District of Columbia $17,224,915

Vermont $38,466,561

North Dakota $50,807,438

Wyoming $64,976,648

Rhode Island $71,712,261

South Dakota $72,953,368

Hawaii $74,012,297

West Virginia $82,009,283

Montana $101,022,682

Maine $116,251,281

Delaware $136,476,229

Connecticut $142,044,143

Iowa $145,614,854

New Hampshire $147,355,050

Arkansas $211,350,951

Mississippi $213,775,963

Idaho $214,208,723

Nebraska $271,508,519

Massachusetts $277,141,894

Kansas $279,102,006

New Mexico $280,083,527

Alaska $280,586,152

New York $300,736,561

Utah $302,314,666

Louisiana $310,823,207

Oklahoma $324,161,814

Kentucky $351,002,465

New Jersey $372,860,082

Wisconsin $386,564,113

Alabama $400,880,988

South Carolina $411,674,423

Minnesota $426,590,019

Indiana $505,622,873

Oregon $511,344,580

Michigan $517,368,002

Missouri $527,136,273

Pennsylvania $607,511,463

Tennessee $632,356,998

Illinois $741,400,882

Nevada $769,354,536

Ohio $914,232,282

Arizona $1,258,277,802

North Carolina $1,288,799,647

Georgia $1,396,655,206

Washington $1,460,255,337

Colorado $1,474,514,840

Maryland $1,506,778,480

Florida $2,379,554,536

Virginia $2,497,454,637

California $2,660,937,473

Texas $2,661,312,489

United States Total $31,187,161,420

Puerto Rico $61,801,411

Territories $5,991,898

 Total $31,254,954,728

Source: LGY SAS Program
Appendix A Geographic Distribution of Data

183

Loan Amounts Guaranteed

During FY 2001

(Total - $31,187.2)
Appendix A Geographic Distribution of Data

184

Average Home Loan Amounts by Residence

for Loans Guaranteed During FY 2001

(In Ascending Order for US)

North Dakota $88,669

Arkansas $95,375

Oklahoma $97,698

Iowa $100,772

West Virginia $101,622

New York $101,841

South Dakota $103,187

Mississippi $104,792

Louisiana $104,831

Montana $105,452

Kentucky $106,139

Kansas $107,761

Alabama $108,728

Wyoming $109,573

Missouri $110,349

Pennsylvania $110,799

Texas $110,870

Maine $111,245

Indiana $111,715

Tennessee $112,279

Florida $114,259

Idaho $114,734

Wisconsin $115,842

Nebraska $116,328

Michigan $116,367

Ohio $116,805

North Carolina $117,409

South Carolina $119,222

New Mexico $119,643

Vermont $119,834

Illinois $121,981

Georgia $123,412

New Jersey $129,331

Arizona $129,506

District of Columbia $133,526

Rhode Island $133,542

New Hampshire $134,203

Virginia $134,583

Minnesota $135,040

Connecticut $135,668

Delaware $136,887

Oregon $140,133

Utah $140,874

Nevada $143,162

Massachusetts $145,100

Washington $145,212

Maryland $148,568

Colorado $151,887

Hawaii $152,918

California $153,918

Alaska $154,253

United States Average $125,024

Puerto Rico $118,849

Territories $298,927

Average for All $125,015

Source: LGY SAS Program
Appendix A Geographic Distribution of Data

185
Appendix A Geographic Distribution of Data

186

Average Home Loan Amounts

for Loans Guaranteed During FY 2001
Appendix A Geographic Distribution of Data

187

Active Home Loans by Residence

at the Beginning of FY 2002

(In Ascending Order for US)

Vermont 2,379

District of Columbia 4,617

Rhode Island 5,253

North Dakota 5,738

Hawaii 6,877

South Dakota 7,100

Wyoming 7,600

West Virginia 11,428

Delaware 11,439

New Hampshire 11,913

Montana 13,263

Maine 13,901

Connecticut 16,111

Iowa 16,679

Alaska 17,028

Idaho 17,731

Utah 18,955

Oregon 21,938

Nebraska 24,915

New Mexico 25,613

Massachusetts 27,346

Mississippi 28,827

Wisconsin 31,340

Kansas 32,517

Arkansas 33,069

Kentucky 33,381

Louisiana 45,358

Missouri 47,342

South Carolina 49,898

Michigan 51,965

Indiana 52,711

Nevada 53,145

Oklahoma 53,706

New Jersey 53,353

Minnesota 53,272

New York 60,742

Alabama 60,820

Illinois 66,753

Pennsylvania 68,360

Tennessee 70,397

Colorado 82,823

Washington 84,232

Ohio 94,040

Arizona 96,020

North Carolina 114,470

Maryland 117,947

Georgia 129,631

Virginia 215,570

Florida 230,591

Texas 314,123

California 325,581

United States Total 3,039,8081

Puerto Rico 15,508

Territories 703

Total 3,056,019

Source: LGY SAS Program

1 Differs slightly from the numbers in chapter 3 because of the time this was complied.

.
Appendix A Geographic Distribution of Data

188

Active Home Loans

at the Beginning of FY 2002

(Total – 3,039,808)
Appendix A Geographic Distribution of Data

189

Active Home Loan Amounts by Residence

at the Beginning of FY 2002

(In Ascending Order for US)

Vermont $221,887,270

District of Columbia $343,671,664

North Dakota $372,933,777

South Dakota $498,970,607

Wyoming $555,290,205

Rhode Island $587,615,688

West Virginia $719,141,386

Hawaii $824,952,258

Montana $916,614,211

Maine $994,786,807

Iowa $1,029,522,211

Delaware $1,029,956,885

New Hampshire $1,112,429,263

Idaho $1,455,843,032

Connecticut $1,555,538,654

Utah $1,653,384,097

Mississippi $1,788,225,675

Nebraska $1,817,392,241

Arkansas $2,037,337,443

Alaska $2,057,570,479

Kansas $2,171,275,488

New Mexico $2,241,331,364

Oregon $2,348,815,092

Kentucky $2,362,757,615

Wisconsin $2,428,274,219

Massachusetts $2,461,336,092

Louisiana $2,916,501,497

Missouri $3,321,765,457

Oklahoma $3,387,758,014

Michigan $3,531,424,559

South Carolina $3,625,732,559

Indiana $3,651,029,092

New York $4,011,819,771

Alabama $4,106,400,324

New Jersey $4,182,003,177

Minnesota $4,257,156,239

Pennsylvania $4,946,092,964

Tennessee $5,213,354,325

Illinois $5,401,487,681

Nevada $5,405,797,102

Ohio $6,347,084,864

Colorado $7,764,366,078

Arizona $8,117,093,994

Washington $9,118,364,688

North Carolina $9,245,862,794

Georgia $10,305,331,066

Maryland $12,547,779,675

Florida $17,896,344,664

Virginia $21,465,356,115

Texas $21,537,444,579

California $33,162,113,683

United States Total $251,052,318,684

Puerto Rico $918,695,013

Territories $69,094,797

Total $252,040,108,494

Source: LGY SAS Program
Appendix A Geographic Distribution of Data

190

Active Home Loan Amounts

at the Beginning of FY 2002

(Total - $251,052.3)
Appendix C Regional Office Addresses

191

VBA REGIONAL OFFICE MAILING ADDRESSES

ALABAMA

VA Regional Office

345 Perry Hill Road

Montgomery, AL 36109-3798

ALASKA

VA Outpatient Clinic and Regional Office

2925 Debarr Road

Anchorage, AK 99508-2989

ARIZONA

VA Regional Office

3225 North Central Avenue

Phoenix, AZ 85012-2405

ARKANSAS

VA Regional Office

P.O. Box 1280

North Little Rock, AR 72115-1280

CALIFORNIA

VA Regional Office

Federal Building

11000 Wilshire Blvd.

Los Angeles, CA 90024-3602

CALIFORNIA

VA Regional Office

Oakland Federal Building

1301 Clay Street - Suite 1300N

Oakland, CA 94612-5209

CALIFORNIA

VA Regional Office

8810 Rio San Diego Drive

San Diego, CA 92108-1508

COLORADO

VA Regional Office

P.O. Box 25126

Denver, CO 80225-0126

CONNECTICUT

VA Regional Office

450 Main Street

Hartford, CT 06103-3077

DELAWARE

VA Medical and Regional Office Center

1601 Kirkwood Highway

Wilmington, DE 19805-4988

DISTRICT OF COLUMBIA

VA Regional Office

1120 Vermont Avenue, NW

Washington, DC 20421-1111

FLORIDA

VA Regional Office

P.O. 1437

St. Petersburg, FL 33708

GEORGIA

VA Regional Office

1700 Clairmont Rd.

Decatur, GA 30333-4032

HAWAII

VA Medical and Regional Office Center

300 Ala Moana Blvd.

Honolulu, HI 96813

IDAHO

VA Regional Office

805 W. Franklin Street

Boise, ID 83702-5560

ILLINOIS

VA Regional Office

536 S. Clark Street

Chicago, IL 60605-1523
Appendix B VBA Regional Offices Addresses

192

INDIANA

VA Regional Office

575 North Pennsylvania Street

Indianapolis, IN 46204-1526

IOWA

VA Regional Office

210 Walnut Street - Room 1063

Des Moines, IA 50309-9825

KANSAS

VA Medical and Regional Office Center

5500 E. Kellogg

Wichita, KS 67218-1698

KENTUCKY

VA Regional Office

545 S. 3rd Street

Louisville, KY 40202-3835

LOUISIANA

VA Regional Office

701 Loyola Avenue - Room 4210

New Orleans, LA 70113-1912

MAINE

VA Medical and Regional Office Center

1 VA Center

Bldg. 248, Room 103

Togus, ME 04330-6795

MARYLAND

VA Regional Office

Federal Building

31 Hopkins Plaza - Room 233

Baltimore, MD 21201-0001

MASSACHUSETTS

VA Regional Office

John F. Kennedy Building

Government Center - Room 1265

Boston, MA 02203-0393

MICHIGAN

VA Regional Office

Patrick V. McNamara Federal Bldg.

477 Michigan Avenue - Room 1400

Detroit, MI 48226-2591

MINNESOTA

VA Regional Office

One Federal Drive

St. Paul, MN 55111-4050

MISSISSIPPI

VA Regional Office

1600 East Woodrow Wilson Avenue

Jackson, MS 39216-5102

MISSOURI

VA Regional Office

400 South 18th Street

St. Louis, MO 63103-2676

MONTANA

VA Medical and Regional Office Center

Williams Street

Fort Harrison, MT 59636-9999

NEBRASKA

VA Regional Office

5631 S. 48th Street

Lincoln, NE 68516-4198

NEVADA

VA Regional Office

1201 Terminal Way

Reno, NV 89520-0118

NEW HAMPSHIRE

VA Regional Office

Norris Cotton Federal Bldg.

275 Chestnut Street

Manchester, NH 03101-2489
Appendix B VBA Regional Offices Addresses

193

NEW JERSEY

VA Regional Office

20 Washington Place

Newark, NJ 07102-3174

NEW MEXICO

VA Regional Office

Dennis Chavez Federal Bldg.

500 Gold Avenue, SW

Albuquerque, NM 87102-3118

NEW YORK

VA Regional Office Federal Building

111 West Huron Street

Buffalo, NY 14202-2368

NEW YORK

VA Regional Office

245 W. Houston Street

New York, NY 10014-4805

NORTH CAROLINA

VA Regional Office Federal Building

251 North Main Street

Winston-Salem, NC 27155-1000

NORTH DAKOTA

VA Medical and Regional Office Center

2101 Elm Street

Fargo, ND 58102-2417

OHIO

VA Regional Office

Anthony J. Celebreeze Federal Building

1240 East Ninth Street

Cleveland, OH 44199-2001

OKLAHOMA

VA Regional Office Federal Building

125 South Main Street

Muskogee, OK 74401-7025

OREGON

VA Regional Office

Federal Building

1220 Southwest 3rd Avenue Room 1217

Portland, OR 97204-2825

PENNSYLVANIA

VA Regional Office and Insurance Center

P.O. Box 8079

Philadelphia, PA 19101-8079

PENNSYLVANIA

VA Regional Office

1000 Liberty Avenue

Pittsburgh, PA 15222-4004

PHILIPPINES

U.S. Department of Veterans Affairs

FPO AP 96515-1110

Manila, PI 1000

PUERTO RICO

VA Regional Office

P.O. Box 364867

San Juan, PR 00936-4867

RHODE ISLAND

VA Regional Office

380 Westminster Mall

Providence, RI 02903-3246

SOUTH CAROLINA

VA Regional Office

1801 Assembly Street

Columbia, SC 29201-2495

SOUTH DAKOTA

VA Medical and Regional Office Center

P.O. Box 504

Sioux Falls, SD 57117-5046
Appendix B VBA Regional Offices Addresses

194

TENNESSEE

VA Regional Office

110 Ninth Avenue, South

Nashville, TN 37203-3817

TEXAS

VA Regional Office

6900 Almeda Road

Houston, TX 77030-4200

TEXAS

VA Regional Office

One Veterans Plaza

701 Clay Avenue

Waco, TX 76799-0001

UTAH

VA Regional Office

Federal Bldg.

125 South State St.

Salt Lake City, UT 84147-0500

VERMONT

VA Medical and Regional Office Center

215 N. Main Street

White River Junction, VT 05009-0001

VIRGINIA

VA Regional Office

210 Franklin Road, SW

Roanoke, VA 24011-2204

WASHINGTON

VA Regional Office

Federal Building

915 Second Avenue

Seattle, WA 98174-1060

WEST VIRGINIA

VA Regional Office

640 4th Avenue

Huntington, WV 25701-1340

WISCONSIN

VA Regional Office

5000 W. National Avenue - Bldg. 6

Milwaukee, WI 53295-0006

WYOMING20

2360 E. Pershing Blvd.

Cheyenne, WY 82001

 

20 The Denver Regional Office serves the state of Wyoming. The local address provided is for the Benefits Office.
Appendix C Contacting VA by Telephone

195

Contacting VA by Telephone

General Benefits

Disability Compensation, Pension, Vocational

Rehabilitation, and Home Loans

1-800-827-1000 *

Education and Training 1-888-GI BILL 1 *

(1-888-442-4551)

Burial, Headstones, and Markers 1-800-697-6947 *

VA Life Insurance 1-800-669-8477 *

Healthcare Benefits

Veterans Healthcare 1-800-827-1000 *

Veterans Healthcare in Canada 1-613-943-0824

Veterans Healthcare in Philippines 1-632-833-4566

Veterans Healthcare in all Other Countries 1-303-331-7590

National Mammography Helpline 1-888-492-7844 *

CHAMPVA 1-800-733-8387 *

Miscellaneous

Telecommunication Device for the Deaf (TDD) 1-800-829-4833 *

Gulf War Hotline 1-800-PGW-VETS*

* Indicates toll-free numbers
Appendix D Web Sites

196

WEB SITES

Web sites where additional information may be obtained about VA.

VA WEB SITES

VA Home Page – Department of Veterans Affairs http://www.va.gov

Board of Veterans Appeals http://www.va.gov/vbs/bva/index.htm

Health Benefits and Services http://www.va.gov/vbs/health/index.htm

Homeless Program Web Page http://www.va.gov/health/homeless

VA Hot Topics http://www.va.gov/hottopic/index.htm

National Cemetery Administration Home Page http://www.cem.va.gov

Public Affairs and Special Events http://www.va.gov/opa/index.htm

VA’s Office of Congressional Affairs Home Page http://www.va.gov/oca/index.htm

VA What’s New http://www.va.gov/whatsnew/index.htm

Center for Minority Veterans http://www.va.gov/minority/index.htm

Center for Women Veterans http://www.va.gov/womenvet/

VETERANS BENEFITS ADMINISTRATION

WEB SITE

Veterans Benefits Administration http://www.vba.va.gov

VBA Forms Page http://www.vba.va.gov/pubs/forms1.htm

Compensation and Pension Benefits Home Page http://www.vba.va.gov/bln/21/index.htm

Education Benefits Home Page http://www.gibill.va.gov

Home Loan Guaranty Service Home Page http://www.homeloans.va.gov

Vocational Rehabilitation and Employment

Services

http://www.vba.va.gov/bln/vre/index.htm

Life Insurance Program Home Page http://www.insurance.va.gov

WHITE HOUSE WEB SITE

White House http://www.whitehouse.gov

CONGRESSIONAL WEB SITES

Senate http://www.senate.gov

Senate Committee on Veterans Affairs http://www.senate.gov/~veterans

House of Representatives http://www.house.gov

House Committee on Veterans Affairs http://veterans.house.gov
 Index

197

INDEX

A Page

Addresses - VBA Regional Offices 186

Appendix A - Geographic Distribution of Data 139

Appendix C - Contacting VA by Telephone 190

Appendix D - Web Sites: VA, VBA, and others 191

B

Beneficiaries Entering All Benefits Program Rolls During FY 2001, Summary 14

Beneficiaries Leaving the Rolls for All Benefits Programs, FY 2001 65

Benefits Programs, Summary of All, Beginning FY 2002 79

Business During FY 2001 14

C

Compensation Based Upon Service-Connected Disability or Death 7

Compensation Claims, Original and Subsequent, Received and Completed FY 2001 34

Compensation Claims, Service-Connected Disability, Disability by Claim, FY 2001 36

Compensation Claims, Service-Connected Disability, Disability Percentages, FY 2001 35

Compensation Claims, Service-Connected Disability, Grants and Denials, FY 2001 35

Compensation Claims, Subsequent Reopened, Veteran, by Age, FY 2001 34

Compensation, Service-Connected Deaths, Payments Ended, FY 2001 67

Compensation, Service-Connected Disability, Payments Ended, FY 2001 66

Compensation, 20 Most Prevalent Service-Connected Disabilities, Beginning FY 2002 93

Compensation, based on Service-Connected Death, All Beneficiaries, DIC/Death Compensation, Demographics,

by Age of Children, Beginning FY 2002 104

Compensation, based on Service-Connected Death, All Beneficiaries, DIC/Death Compensation, Demographics,

by Age of Surviving Spouses, Beginning FY 2002 103

Compensation, based on Service-Connected Death, All Beneficiaries, DIC/Death Compensation, Demographics,

by Dependency Status of Serving Spouses, Beginning FY 2002 103

Compensation, based on Service-Connected Death, All Beneficiaries, DIC/Death Compensation, Demographics,

by Marital Status of Serving Parents, Beginning FY 2002 104

Compensation, based on Service-Connected Death, All Beneficiaries, DIC/Death Compensation, Demographics,

by Period of Service, Beginning FY 2002 101

Compensation, based on Service-Connected Death, All Beneficiaries, DIC/Death Compensation, Demographics,

by Relationship to Veteran, Beginning FY 2002 103

Compensation, based on Service-Connected Death, Beneficiaries Receiving DIC/Death Compensation Benefits,

Beginning FY 2002 101

Compensation, based on Service-Connected Death, FY 2001 37
 Index

198

Compensation, Based Upon Service-Connected Disability, FY 2001 16

Compensation, Conditions Claimed and Disabilities Being Paid, FY 2001 17

Compensation, Dependency and Indemnity Compensation (DIC) Initial Benefits, Demographics, by Age - Children,

FY 2001 39

Compensation, Dependency and Indemnity Compensation (DIC) Initial Benefits, Demographics, by Age - Parents,

FY 2001 39

Compensation, Dependency and Indemnity Compensation (DIC) Initial Benefits, Demographics, by Age - Spouse,

FY 2001 38

Compensation, Dependency and Indemnity Compensation (DIC) Initial Benefits, FY 2001 37

Compensation, Disabilities per Claim, Number, FY 2001 18

Compensation, Estimated Future Benefit Payments 128

Compensation, Estimated Future Benefit Payments - Discounted 132

Compensation, Estimated Future Benefit Payments, Veterans Receiving 133

Compensation, Estimated Future Benefit Payments, Death Rates 135

Compensation, Estimated Future Benefit Payments, Rates of Newly Adjudicated Cases 137

Compensation, Most Prevalent Service-Connected Disabilities by Body System - Began Receiving FY 2001 26

Compensation, Most Prevalent Service-Connected Disabilities by Body System, Beginning FY 2002 89

Compensation, Most Prevalent Service-Connected Disabilities by Period of Service, Beginning FY 2002 94

Compensation, Service-Connected Disabilities - Body Systems, Most Prevalent, FY 2001 26

Compensation, Service-Connected Disabilities by Body System FY 2001 20

Compensation, Service-connected Disabilities by Combined Percent - Began Receiving During FY 2001 19

Compensation, Service-connected Disabilities by Combined Percent - Beginning FY 2002 81

Compensation, Service-Connected Disabilities by Diagnostic Code FY 2001 21

Compensation, Service-Connected Disabilities, Veteran Demographics, by Gender, FY 2001 32

Compensation, Service-Connected Disabilities, Veteran Demographics, by Length of Service, FY 2001 33

Compensation, Service-Connected Disabilities, Veteran Demographics, by Period of Service, FY 2001 33

Compensation, Service-Connected Disabilities, Veteran Demographics, by Race FY 3002 32

Compensation, Service-Connected Disabilities, Veteran, Demographics, by Age Beginning FY 2002 99

Compensation, Service-Connected Disabilities, Veteran, Demographics, by Age FY 2001 31

Compensation, Service-Connected Disabilities, Veteran, Demographics, by Period of Service, Beginning FY 2002 100

Compensation, Service-Connected Disabilities, Body System Beginning FY 2002 84

Compensation, Service-Connected Disabilities, Degree of Disability Beginning FY 2002 84

Compensation, Service-Connected Disabilities, Degree of Disability Paid, FY 2001 19

Compensation, Service-Connected Disabilities, Demographics, FY 2001 31

Compensation, Service-Connected Disabilities, Individual, Beginning FY 2002 82
 Index

199

Compensation, Service-Connected Disabilities, Individual, FY 2001 18

Compensation, Service-Connected Disabilities by Body System-Beginning FY 2002 83

Compensation, Service-Connected Disabilities-by Percent and Body System-Began Receiving FY 2001 22

Compensation, Service-Connected Disability, Most Frequent, FY 2001 30

Compensation, Veterans Receiving Disability Beginning FY 2001, Total 17

Compensation, Veterans Receiving, Service-Connected Disability Beginning FY 2002 81

Compensation, Veterans with Service-Connected Disabilities, Demographic Characteristics of, FY 2001 31

Core Value 2

D

Data Analytical Discussion 4

Dependents Educational Assistance Program (DEA) 10

E

Education 9

Education, Beneficiaries, Benefits Began FY 2001 42

Education, Beneficiaries, Training Pursued, by Time, FY 2001 43

Education, Beneficiaries, Training Pursued, by Type, FY 2001 42

Education, Benefits Beginning FY 2002 109

Education, Benefits Terminated, FY 2001 70

Education, Benefits, Characteristics of Training, by Training Time, Beginning FY 2002 110

Education, Benefits, Characteristics of Training, by Type of Training, Beginning FY 2002 109

F

Forecasting Future Program Liabilities 127

Future ABR Considerations 5

G

Geographic Distribution of Benefits 139

Glossary 206

H

Home Loan Guaranty 11

Home Loan Guaranty, Active Guaranteed Loans, Beginning FY 2002 117

Home Loan Guaranty, Disposition of Home Loans, FY 2001 73

Home Loan Guaranty, Loans Guaranteed, by Type, FY 2001 48

Home Loan Guaranty, Loans Guaranteed, Characteristics, by Buyer Status, FY 2001 48

Home Loan Guaranty, Loans Guaranteed, Characteristics, by Buyer Status, Beginning FY 2002 118
 Index

200

Home Loan Guaranty, Loans Guaranteed, Characteristics, by Down-Payment Option, Beginning FY 2002 117

Home Loan Guaranty, Loans Guaranteed, Characteristics, by Down-Payment Option, FY 2001 47

Home Loan Guaranty, Loans Guaranteed, Demographics, by Age, Beginning FY 2002 119

Home Loan Guaranty, Loans Guaranteed, Demographics, by Age, FY 2001 49

Home Loan Guaranty, Loans Guaranteed, Demographics, by Gender, Beginning FY 2002 120

Home Loan Guaranty, Loans Guaranteed, Demographics, by Income, FY 2001 49

Home Loan Guaranty, Loans Guaranteed, Demographics, by Period of Service and Other Criteria, Beginning FY

2002 118

Home Loan Guaranty, Loans Guaranteed, Demographics, by Period of Service and Other Criteria, FY 2001 48

Home Loan Guaranty, Loans Guaranteed, Demographics, by Race, Beginning FY 2002 120

Home Loan Guaranty, Loans Guaranteed, Demographics, by Race, FY 2001 50

Home Loan Guaranty, Loans Guaranteed, Direct Loans, Native American Veterans, FY 2001 47

Home Loan Guaranty, Loans Guaranteed, Specially Adaptive Housing Veterans, FY 2001 47

Home Loan Guaranty, Loans Guaranteed, Total, FY 2001 46

I

Introduction to VBA and Its Benefits Programs 1

Index to Tables 199

Index to Maps/Tables in Appendix A 205

L

Liability for Future Compensation Benefits 128

Life Insurance 10

Life Insurance, Coverage Established, FY 2001 43

Life Insurance, Death Claims Paid, FY 2001 72

Life Insurance, Payments Made FY 2001 44

Life Insurance, Payments Made on Monthly Basis Beginning FY 2002 112

Life Insurance, Policies "Paid Off" 71

Life Insurance, Policy Lapses, FY 2001 72

Life Insurance, Policyholders and Value of Coverage, Beginning FY 2002 111

Life Insurance, Policyholders, Demographics, by Age, Beginning FY 2002 114

Life Insurance, Policyholders, Demographics, by Amount of SGLI Coverage, Beginning FY 2002 116

Life Insurance, Policyholders, Demographics, by Component of Service for SGLI Coverage, Beginning FY 2002 115

Life Insurance, Ranking Among Commercial Life Insurance Companies Beginning FY 2002 113
 Index

201

M

Mission Statement 1

Montgomery GI Bill - Active Duty (MGIB) 9

Montgomery GI Bill - Selected Reserve (MGIB-SR) 10

O

Overview VBA Benefits Programs 7

P

Pension Based Upon Nonservice Disability or Death and Financial Need 8

Pension based Upon Nonservice-Connected Death, Beginning FY 2002 107

Pension based Upon Nonservice-Connected Death, Demographics, by Age for Surviving Spouses, Beginning FY

2002 108

Pension based Upon Nonservice-Connected Death, Demographics, by Period of Service, Beginning FY 2002 108

Pension based Upon Nonservice-Connected Disability, Beginning FY 2002 105

Pension based Upon Nonservice-Connected Disability, Demographics, by Age, Beginning FY 2002 106

Pension based Upon Nonservice-Connected Disability, Demographics, by Period of Service, Beginning FY 2002 107

Pension based Upon Nonservice-Connected Disability, FY 2001 41

Pension, Death Pension, Beneficiaries, FY 2001 41

Pension, Service-Connected Disability, FY 2001 40

Pension, Veterans Receiving Disability Beginning FY 2001, Total 40

Pension, Veterans with Death Pension, Demographic Characteristics of, by Age, FY 2001 41

Pension, Veterans with Disability, Demographic Characteristics of, by Age, FY 2001 40

Pensions, Nonservice-Connected Deaths, Payments Ended, FY 2001 69

Performance Measurement Discussion 3

Post-Vietnam Era Veterans Educational Assistance Program (VEAP) 9

Purpose of VBA’s Annual Benefits Report 3

T

Telephone Numbers - General Benefits, Healthcare, Miscellaneous 190

V

Vision Statement 1

Vocational Rehabilitation and Employment 13

Vocational Rehabilitation and Employment (VR&E), Beginning FY 2002 121

Vocational Rehabilitation and Employment (VR&E), FY 2001 50

VR&E Veterans and Eligible Dependents Served, FY 2001 50

VR&E Veterans, By Occupational Goals, Beginning FY 2002 122
 Index

202

VR&E, Veterans, By Type of Training Activity, Beginning FY 2002 122

VR&E, Evaluation and Planning, Step 2, by Age, FY 2001 55

VR&E, Evaluation and Planning, Step 2, by Completed Rehabilitation Plans, FY 2001 56

VR&E, Evaluation and Planning, Step 2, by Gender, FY 2001 55

VR&E, Evaluation and Planning, Step 2, by Period of Service, FY 2001 56

VR&E, Evaluation and Planning, Step 2, by Serious Employment Handicap, FY 2001 56

VR&E, Evaluation and Planning, Step 2, FY 2001 53

VR&E, Interrupted, FY 2001 78

VR&E, Participation in Rehabilitation Services, Step 3, by Age, FY 2001 59

VR&E, Participation in Rehabilitation Services, Step 3, by Branch of Service, FY 2001 59

VR&E, Participation in Rehabilitation Services, Step 3, by Dependency Status, FY 2001 60

VR&E, Participation in Rehabilitation Services, Step 3, by Gender, FY 2001 58

VR&E, Participation in Rehabilitation Services, Step 3, by Length of Service, FY 2001 60

VR&E, Participation in Rehabilitation Services, Step 3, by Occupational Goal, FY 2001 57

VR&E, Participation in Rehabilitation Services, Step 3, by Period of Service, FY 2001 59

VR&E, Participation in Rehabilitation Services, Step 3, by Prior Education Level 60

VR&E, Participation in Rehabilitation Services, Step 3, by Prior Use of Education Benefits, FY 2001 61

VR&E, Participation in Rehabilitation Services, Step 3, by Serious Employment Handicap FY 2001 58

VR&E, Participation in Rehabilitation Services, Step 3, by Type of Training Activity, FY 2001 58

VR&E, Preparing an Search for Suitable Job, Step 4, FY 2001 61

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Age, FY 2001 76

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Branch of

Service 77

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Dependency

Status, FY 2001 76

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Gender 75

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Length of

Service, FY 2001 77

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Period of

Service, FY 2001 78

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Demographics, by Prior Education

Level, FY 2001 76

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, FY 2001 74

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Pre- and Post Earnings, by Gender,

FY 2001 74
 Index

203

VR&E, Rehabilitated, Participants with Serious Handicap Completed Program, Pre- and Post Earnings, by

Occupational Type, FY 2001 75

VR&E, Rehabilitation and Employment Services, Step 1, by Age, FY 2001 53

VR&E, Rehabilitation and Employment Services, Step 1, by Gender, FY 2001 53

VR&E, Rehabilitation and Employment Services, Step 1, FY 2001 51

VR&E, Veterans Ending Training Program, FY 2001 73

VR&E, Veterans in Active Cases Statuses 63

VR&E, Veterans Participating in Training, Demographics, by Age, Beginning FY 2002 124

VR&E, Veterans Participating in Training, Demographics, by Branch of Service, Beginning FY 2002 125

VR&E, Veterans Participating in Training, Demographics, by Degree of Service-Connected Disability, Beginning FY

2002 123

VR&E, Veterans Participating in Training, Demographics, by Dependency Status, Beginning FY 2002 126

VR&E, Veterans Participating in Training, Demographics, by Gender, Beginning FY 2002 124

VR&E, Veterans Participating in Training, Demographics, by Period of Service, Beginning FY 2002 125

VR&E, Veterans Participating in Training, Demographics, by Prior Education Level, Beginning FY 2002 126

VR&E, Veterans Participating in Training, Demographics, by Prior Use of VA Education Benefits, Beginning FY

2002 126

VR&E, Veterans Participating in Training, Demographics, by Serious Employment Handicap, Beginning FY 2002 124

W

Web Sites 191
 Index of Tables

204

INDEX TO TABLES

Chapter 1 INTRODUCTION TO VBA AND ITS BENEFITS PROGRAMS

Table

Number

Table Title Page

Table 1 Insurance Programs that No Longer Issue Coverage 11

Table 2 Insurance Programs that Issue Coverage 11

Table 3 Summary of Home Loan Guaranty Entitlements 13

Table 4 VR&E Program and Statutory Authority 13

Chapter 2 BUSINESS DURING FY 2001

Table

Number

Table Title Page

Table 1 Summary of Beneficiaries Who Began Receiving Benefits for Programs

that Pay Recurring Monthly Benefits During FY 2001

14

Table 2 Summary of Beneficiaries Who Began Receiving Benefits for Programs

that Pay Monthly Benefits During Training During FY 2001

15

Table 3 Summary of Beneficiaries Who Obtained Coverage During FY 2001

Benefit Programs that Constitute Potential Liabilities

15

Table 4 Total Number of Veterans Who Began Receiving Compensation During FY

2001

17

Table 5 Applications for Service-Connected Disability Compensation by Number Of

Disabilities Claimed for FY 2001

18

Table 6 Total Individual Service-Connected Disabilities - by Percent for Veterans

Who Began Receiving Compensation During FY 2001

19

Table 7 Service-Connected Disabilities - by Combined Percent for Veterans Who

Began Receiving Compensation During FY 2001

20

Table 8 Ranking of Individual Service-Connected Disabilities by Body System for

Veterans Who Began Receiving Compensation During FY 2001

20

Table 9 Total Individual Service-Connected Disabilities by Percent and Body

Systems For Veterans Who Began Receiving Compensation During FY

2001

22

Table 10 Most Common Service-Connected Disabilities within Body Systems for

Veterans Who Began Receiving Compensation During FY 2001

27

Table 11 Disabilities Most Frequently Service-Connected for Veterans Who Began

Receiving Compensation During FY 2001

30

Table 12 Service-connected Compensation by Age for Veterans Who Began

Receiving Compensation During FY 2001

31

Table 13 Service-Connected Disability Original and Subsequent Reopened Claims

Granted - By Gender During FY 2001

32

Table 14 Service-Connected Disability Original and Subsequent Reopened Claims

Granted - By Race During FY 2001

32

Table 15 Service-Connected Disability Original and Subsequent Reopened Claims

Granted - By Period Of Service During FY 2001

33

Table 16 Service-Connected Disability Claims Granted by Length of Service During

FY 2001

33

Table 17 Original and Subsequent Disability Compensation Claims During FY 2001 34
 Index of Tables

205

Table 18 Subsequent Reopened Compensation Claims Decided by Rating During

FY 2001 By Age of the Veteran

34

Table 19 Service-Connected Disability Original Claim Grants and Denials by

Individual Disabilities Claimed During FY 2001

35

Table 20 Service-Connected Disability Original Claim Grants Grants by Individual

Disability During FY 2001

35

Table 21 Service-Connected Disability Original Claims Granted or Denied During FY

2001

36

Table 22 Total Beneficiaries Who Began Receiving Dependency and Indemnity

Compensation (DIC) During FY 2001

37

Table 23 Surviving Spouses Who Began Receiving DIC by Age During FY 2001 38

Table 24 Children Who Began Receiving DIC by Age During FY 2001 39

Table 25 Surviving Parents Who Began Receiving DIC by Marital Status During FY

2001

39

Table 26 Veterans Who Began Receiving Disability Pension by Program During FY

2001

40

Table 27 Veterans Who Began Receiving Disability Pension by Age During FY 2001 40

Table 28 Surviving Spouses Who Began Receiving Death Pension by Program

During FY 2001

41

Table 29 Surviving Spouses Who Began Receiving Death Pension By Age During

FY 2001

41

Table 30 Beneficiaries Who Began Receiving Education Benefits During FY 2001 42

Table 31 Beneficiaries Who Began Receiving Education Benefits by Type of

Training and Program During FY 2001

42

Table 32 Beneficiaries Who Began Receiving Education Benefits by Training Time

and Program During FY 2001

43

Table 33 New Insurance Coverage Issued During FY 2001 44

Table 33A New Insurance Coverage--FY 1998 to FY 2001 44

Table 34 Insurance Payments Made During FY 2001 45

Table 34A Insurance Dividends Payments Made--FY 1998 to FY 2001 45

Table 35 Loans Guaranteed During FY 2001 46

Table 36 Loans Guaranteed During FY 2001 Based on Purchase Loan Versus

Refinance Loans

46

Table 37 Specially Adapted Housing Grants and Direct Loans During FY 2001 47

Table 38 Purchase Loans Guaranteed During FY 2001 by Downpayment Status 47

Table 39 Purchase Loans Guaranteed During FY 2001 Based on Buyer Status 48

Table 40 Loans Guaranteed During FY 2001 By Period of Service (or Entitlement) 48

Table 41 Purchase Loans Guaranteed During FY 2001 Based on Annual Income 49

Table 42 Home Loans Guaranteed During FY 2001 Based on Age 49

Table 43 Home Loans Guaranteed During FY 2001 Based on Known Race 50

Table 44 Services By The Vocational Rehabilitation Programs During FY 2001 50

Table 45 Applicants For Vocational Rehabilitation By Combined Degree Of Disability

During FY 2001

52

Table 46 Applicants For Vocational Rehabilitation By Gender During FY 2001 53

Table 47 Applicants For Vocational Rehabilitation By Age During FY 2001 53

Table 48 Veterans Entitled to Vocational Rehabilitation By Combined Degree Of

Disability During FY 2001

55

Table 49 Veterans Entitled to Vocational Rehabilitation By Gender During FY 2001 55
 Index of Tables

206

Table 50 Veterans Entitled to Vocational Rehabilitation By Age During FY 2001 55

Table 51 Veterans Entitled to Vocational Rehabilitation By Period Of Service During

FY 2001

56

Table 52 Veterans Entitled to Vocational Rehabilitation With A Serious Employment

Handicap During FY 2001

56

Table 53 Veterans Participating In A Vocational Rehabilitation Program and the

Number Of New Rehabilitation Plans Developed During FY 2001

56

Table 54 Veterans Participating In A Vocational Training Program By Occupational

Goal During FY 2001

57

Table 55 Veterans Participating In A Vocational Training Program By Type Of

Training And Gender During FY 2001

58

Table 56 Veterans Participating In A Vocational Training Program With Serious

Employment Handicap During FY 2001

58

Table 57 Veterans Participating In A Vocational Training Program By Gender During

FY 2001

58

Table 58 Veterans Participating In A Vocational Training Program By Age During FY

2001

59

Table 59 Veterans Participating In A Vocational Training Program By Period Of

Service During FY 2001

59

Table 60 Veterans Participating In A Vocational Training Program By Branch Of

Service During FY 2001

59

Table 61 Veterans Participating In A Vocational Training Program By Length Of

Service During FY 2001

60

Table 62 Veterans Participating In A Vocational Training Program By Dependency

Status During FY 2001

60

Table 63 Veterans Participating In A Vocational Training Program By Prior

Education Level During FY 2001

60

Table 64 Veterans Participating In A Vocational Training Program By Prior Use Of

VA Education Benefits During FY 2001

61

Table 65 Veterans Participating In A Vocational Training Program Veterans Who

Entered Employment Services During FY 2001

62

Table 66 Veterans In Active Case Statuses During FY2001 By Race 63

Table 67 Summary of All Active Benefits That Ended During FY 2001 65

Table 68 Service-Connected Disability Compensation – Reasons for Ending

Payments During FY 2001

66

Table 69 Service-Connected Death Benefits – Reasons for Ending Payments During

FY 2001

67

Table 70 Nonservice-Connected Disability Pension – Reasons for Ending Payments

During FY 2001

68

Table 71 Nonservice-Connected Death Pension – Reasons for Ending Payments

During FY 2001

69

Table 72 Beneficiaries Whose Benefits Terminated During FY 2001 70

Table 73 Insurance Payments During FY 2001 71

Table 73A Death Claims Paid--FY 1998 to FY 2001 72

Table 74 Policy Lapses During FY 2001 72

Table 75 Disposition of Home Loans During FY 2001 73

Table 76 Veterans Who Ended a Training Program During FY 2001 73

Table 77 Veterans with a Serious Employment Handicap Who Completed Training

During FY 2001

74

Table 78 Veterans Who Successfully Achieved Rehabilitation Pre And Post Annual

Earnings – By Gender During FY 2001

74

Table 79 Veterans Who Successfully Achieved Rehabilitation Pre and Post Annual

Earnings by Occupational Category During FY 2001

75
 Index of Tables

207

Table 80 Veterans Who Successfully Achieved Rehabilitation by Gender During FY

2001

75

Table 81 Veterans Who Successfully Achieved Rehabilitation by Age During FY

2001

76

Table 82 Veterans Who Successfully Achieved Rehabilitation by Prior Education

Level During FY 2001

76

Table 83 Veterans Who Successfully Achieved Rehabilitation by Dependency Status

During FY 2001

76

Table 84 Veterans Who Successfully Achieved Rehabilitation by Branch of Service

During FY 2001

77

Table 85 Veterans Participating in a Vocational Training Program by Length of

Service During FY 2001

77

Table 86 Veterans Who Successfully Achieved Rehabilitation by Period of Service

During FY 2001

78

Chapter 3 BUSINESS BEGINNING FISCAL FY 2001

Table

Number

Table Title Page

Table 1 Summary of Beneficiaries Receiving Benefits for Programs that Pay

Ongoing Benefits at the Beginning of FY 2002

79

Table 2 Summary of Beneficiaries Receiving Benefits for Programs that Pay

Benefits During Training at the Beginning of FY 2002

79

Table 3 Summary of All Benefits that Constitute Potential Liabilities at the

Beginning of FY 2002

80

Table 4 Total Veterans Receiving Service-Connected Disability Benefits Beginning

of FY 2002

81

Table 5 Total Service-Connected Benefits by Combined Percent of Disability

Beginning of FY 2002

81

Table 6 Total Individual Service-Connected Disabilities by Percent Veterans

Receiving Compensation Beginning of FY 2002

83

Table 7 Ranking of Individual Service-Connected Disabilities by Body System

Veterans Receiving Compensation Beginning of FY 2002

83

Table 8 Total Individual Service-Connected Disabilities by Percent and Body

System for Veterans Receiving Compensation Beginning of FY 2002

85

Table 9 Most Prevalent Service-Connected Disabilities within Body Systems for

Veterans Receiving Compensation Beginning of FY 2002

90

Table 10 Most Prevalent Disabilities for Veterans Receiving Compensation

Beginning of FY 2002

93

Table 11 Most Prevalent World War II Disabilities Beginning of FY 2002 94

Table 12 Most Prevalent Korean War Disabilities Beginning of FY 2002 95

Table 13 Most Prevalent Vietnam Era Disabilities Beginning of FY 2002 96

Table 14 Most Prevalent Gulf War Era Disabilities Beginning of FY 2002 97

Table 15 Most Prevalent Peacetime Period Disabilities Beginning of FY 2002 98

Table 16 Service-Connected Disability Compensation by Age Beginning of FY 2002 99

Table 17 Service-Connected Disability Compensation by Period of Service and

Combined Percent of Disability Beginning of FY 2002

100

Table 18 Total Beneficiaries Receiving Service-Connected Death Benefits Beginning

of FY 2002

101

Table 19 Total Beneficiaries Receiving Service-Connected Death Benefits by Period

of Service Beginning of FY 2002

102

Table 20 Total Beneficiaries Receiving DIC by Relationship Beginning of FY 2002 103

Table 21 Surviving Spouses Receiving DIC by Age Beginning of FY 2002 103
 Index of Tables

208

Chapter 3 BUSINESS BEGINNING FISCAL FY 2001

Table

Number

Table Title Page

Table 22 Dependency and Indemnity Compensation (DIC) by Surviving Spouse and

Dependents Beginning of FY 2002

103

Table 23 Children Receiving DIC by Age Beginning of FY 2002 104

Table 24 Surviving Parents Receiving DIC by Marital Status Beginning of FY 2002 104

Table 25 Total Veterans Receiving Disability Pension by Program Beginning of FY

2002

105

Table 26 Total Veterans Receiving Disability Pension by Age Beginning of FY 2002 106

Table 27 Disability Pension by Period of Service Beginning of FY 2002 107

Table 28 Total Beneficiaries Receiving Death Pension by Program Beginning of FY

2002

107

Table 29 Total Surviving Spouses Receiving Death Pension by Age

Beginning of FY 2002

108

Table 30 Nonservice-Connected Death Pension by Period of Service Beginning of

FY 2002

108

Table 31 Beneficiaries Receiving Education Benefits Beginning of FY 2002 109

Table 32 Beneficiaries Receiving Education Benefits by Type of Training and

Program Beginning of FY 2002

109

Table 33 Beneficiaries Receiving Education Benefits by Training Time and Program

Beginning of FY 2002

110

Table 34 Total Insurance Policies In-Force Beginning of FY 2002 111

Table 34A Insurance Policies In-Force--FY 1999 to FY 2002 111

Table 35 Insurance Monthly Award Payments Beginning of FY 2002 112

Table 36 2000 Rankings by Total Life Insurance in-Force 113

Table 37 Age Distribution for Insurance Programs 114

Table 38 SGLI Coverage by Branch and Component of Service 115

Table 39 SGLI Coverage by Coverage Level Active Duty And Reserve Duty 116

Table 40 Active Loans Based on Purchase Loan Versus Refinance Loans Beginning

of FY 2002

117

Table 41 Active Purchase Loans by Downpayment Status Beginning of FY 2002 117

Table 42 Active Purchase Loans Based on Buyer Status Beginning of FY 2002 118

Table 43 Active Home Loans by Period of Service (or Entitlement) Beginning of FY

2002

119

Table 44 Active Home Loans Based on Age Beginning of FY 2002 119

Table 45 Active Purchase Loans Based on Known Racial Codes Beginning of FY

2002

120

Table 46 Active Home Loans Based on Gender Beginning of FY 2002 120

Table 47 Veterans Participating in the Vocational Rehabilitation Programs Beginning

of FY 2002

121

Table 48 Veterans Participating in a Vocational Training Program by Occupational

Goal Beginning FY 2002

122

Table 49 Veterans Participating in a Vocational Training Program by Type of Training

and Gender Beginning of FY 2002

123

Table 50 Veterans Participating in a Vocational Training Program by Combined

Degree of Disability Beginning of FY 2002

123

Table 51 Veterans Participating in a Vocational Training Program with a Serious

Employment Handicap Beginning of FY 2002

124

Table 52 Veterans Participating in a Vocational Training Program by Gender

Beginning of FY 2002

124
 Index of Tables

209

Chapter 3 BUSINESS BEGINNING FISCAL FY 2001

Table

Number

Table Title Page

Table 53 Veterans Participating in a Vocational Training Program by Age Beginning

of FY 2002

124

Table 54 Veterans Participating in a Vocational Training Program by Period of

Service Beginning of FY 2002

125

Table 55 Veterans Participating in a Vocational Training Program by Branch of

Service Beginning of FY 2002

125

Table 56 Veterans Participating in a Vocational Training Program by Length of

Service Beginning of FY 2002

125

Table 57 Veterans Participating in a Vocational Training Program by Dependency

Status Beginning of FY 2002

126

Table 58 Veterans Participating in a Vocational Training Program by Prior Education

Level Beginning of FY 2002

126

Table 59 Veterans Participating in a Vocational Training Program by Prior Use of VA

Benefits Beginning of FY 2002

126

Chapter 4 THE FUTURE – FORECASTING PROGRAM LIABILITIES

Table

Number

Table Title Page

Table 1 Estimate of Compensation Program Liability as of September 30, 2001 128

Table 2 Estimated Future Benefit Payments (Total Benefits/Obligations) 130

Table 3 Discounted Estimated Future Benefit Payments 132

Table 4 Veterans Receiving Compensation as of September 30, 2001 133

Table 5 Death Rates 135

Table 6A Projected FY 2002 Newly Adjudicated Compensation Cases for Veterans 137

Table 6B Rates of Newly Adjudicated Compensation Cases for Veterans 138
 Index To Maps /Tables

210

INDEX TO MAPS / TABLES

In Appendix A

Map / Table Title Page

Estimated Veteran Population by Residence Beginning FY 2002 140-141

Disability Compensation Recipients by Residence Beginning FY 2002 142-143

Projected Disability Compensation Cost by Residence for FY 2002 144-145

Projected Average Disability Compensation Benefit Per Veteran by

Residence for FY 2002

146-147

Disability Compensation Recipients by Residence Based on Combined

Degree of Disability Beginning FY 2002

148-149

Disability Compensation Recipients by Residence Based on Age

Beginning FY 2002

150

Veteran Compensation Recipients with Power of Attorney (POA) by

Residence in FY 2002

152-153

Veteran Compensation Recipients without POA by Residence in FY

2002

154-155

Disability Pension Recipients by Residence Beginning FY 2002 156-157

Projected Disability Pension Cost Residence Based on Monthly Value at

the Beginning of FY 2002

158-159

Pension Recipients by Residence Based on Age at the Beginning FY

2002

160

Projected Average Disability Pension Benefit Per Veteran by Residence

for FY 2002

162-163

Veteran Pension Recipients with POA by Residence in FY 2002 164-165

Veteran Pension Recipients without POA by Residence in FY 2002 166-167

Education Beneficiaries Trained by Residence During FY 2001 168-169

Life Insurance Payments by Residence During FY 2001 170-171

Face Value Life Insurance by Residence Beginning FY 2002 172-173

Life Insurance Policies by Residence Beginning FY 2002 174-175

Home Loans Guaranteed by Residence During FY 2001 176-177

Home Loan Amounts Guaranteed by Residence During FY 2001 178-179

Average Home Loan Amounts by Residence During FY2001 180-181

Active Home Loans by Residence Beginning FY 2002 182-183

Active Home Loan Amounts by Residence Beginning FY 2002 184-185
211

GLOSSARY1

Adjudicated – The disposition of a claim – either granting or denying of benefits. A deferral

for reasons of development often will be a preliminary step in the adjudication of a claim.

Aid and Attendance – An additional monetary allowance payable to those individuals who are

found to be:

• In a nursing home or

• In need of daily care to help with feeding, dressing, or keeping clean.

Benefits Delivery Network – One of the current VBA computer systems used to collect and

store statistical data on veterans and their families.

Body Systems – Title 38, Code of Federal Regulations, Part 4, classifies the various areas of

the body into fifteen (15) different systems. They are as follows:

Musculoskeletal (muscles and bones) Eye

Ear Infectious diseases

Respiratory Cardiovascular

Digestive Genitourinary

Gynecological Skin

Hemic and lymphatic (blood and lymph systems) Neurological

Endocrine Dental

Mental

Buyer Status – A “first-time homeowner” or “previous homeowner”.

Cash Surrenders – A policyholder receives the cash value that has accrued in his/her policy,

and in return surrenders all right, title, and interest to his/her basic and/or paid-up additional

insurance coverage amounts.

Chapter 31 Benefits – VR&E Program to provide benefits and services to veterans whose

service-connected disabilities prohibit them from obtaining and/or maintaining employment.

Compensable Zeros – A number of disabilities that although independently evaluated zero

percent produce an employment handicap to warrant a 10 percent combined disability

evaluation. This evaluation entitles the veteran to receive disability compensation payments.

 

1

Definitions were compiled through the joint efforts of the business lines: Compensation and Pension, Education, Vocational Rehabilitation

and Employment, Insurance and Loan Guaranty .
 Glossary

212

Computer Systems – VBA derives statistical data about veterans from multiple sources and

from various computer systems: e.g. the Data Management Office’s Data Warehouse,

Operational Data Store and Veterans Information System; VBA’S Benefits Delivery Network

and Beneficiary Identification and Records Locator System (BIRLS); and the Board of

Veterans’ Appeals Control Locator System (VACOLS).

Dependents Educational Assistance (DEA) – Refers to Dependents’ Educational Assistance

Program (Chapter 35 of the Title 38, U.S. Code). See Survivors’ and Dependents Educational

Assistance.

Dependency Indemnity Compensation (DIC) – Benefits generally payable to surviving

spouses, parents or children of veterans who die as a result of service-connected disabilities or

die while on active duty.

Dependents – Qualifying dependents for VA benefit purposes are a veteran’s spouse and

child (natural child, adopted child, or stepchild). A veteran’s mother or father may also be

considered a dependent generally if there is financial need and he or she is otherwise entitled.

Diagnostic Codes – VBA uses four to eight digit numbers as diagnostic code to signify

specific medical conditions. These numeric diagnostic codes are in Title 38, Code of Federal

Regulations, Part 4.

Direct Loan - A loan made by the Department of Veterans Affairs directly to veterans. This is

distinct from loans, which are made by private lenders and guaranteed by VA.

Direct Loans to Native American Veterans – Guaranteed loans to Native Americans.

Disability Compensation – A monetary benefit paid to veterans for service-connected

disability.

Disability Pension – A monetary benefit paid to veterans who are permanently and totally

disabled by reason of disabilities not related to military service and whose annual income does

not exceed the limit set by statute.

Discounted Estimated Future Compensation Payments – The estimated amount which, if

invested now, would provide for the future compensation payments.

DMDC – The Defense Manpower Data Center maintains the largest archive of personnel,

manpower, training and financial data in the Department of Defense (DoD).

Down-payment Option – The VA home loan guaranty program allows the veteran to enter the

home-buying market with the option of providing no down-payment. This option is intended to

help the veteran afford the purchase of a suitable home.
 Glossary

213

Educational Assistance - The monetary benefits received by a veteran or eligible person.

This term is generally used interchangeably with the term “education benefits”, however, under

the Montgomery GI Bill Active Duty, this term refers to basic educational assistance,

supplemental educational assistance, and all additional amounts payable, commonly called

“kickers”.

Eligibility - Most VA benefits require that the veteran be discharged from active military

service under any condition other than dishonorable. In addition to this general requirement,

there are specific statutory and regulator requirements for each of the five benefits programs;

some of these requirements are described in the sections of this report dealing with the

respective benefit programs.

Entitlement (EDU) – The number of months the student is eligible for VA education benefits.

This is usually expressed in the number of months and days the student will be eligible for fulltime benefits, or the equivalent in part-time training, but also may be expressed in a dollar

amount. Entitlement may vary depending on the education program the individual qualifies

under. In no event will entitlement exceed 48 months under any combination of laws.

Entitlement (C&P – Once eligibility requirements have been met, decisions on entitlement for

the respective C&P benefits are based on statutory and regulatory requirements and the

evidence of record that documents the meeting of these requirements. Evidence consists of

documents, records, testimonials and information provided by, or obtained for, a claimant.

Estimate of Compensation Program Liability – The estimated liability for the compensation

program is based on the present value of expected future compensation benefit payments for:

a. all veterans receiving benefits under current programs;

b. all survivors currently receiving benefits under these programs;

c. all future survivors of veterans currently receiving benefits;

d. all existing veterans not receiving benefit payment, but who are expected to in the

future;

e. all future survivors of existing veterans not currently receiving benefits payments but

who are expected to in the future; and

f. veterans currently in active military service who will become veterans in the future,

and their survivors.

Evaluation for Entitlement for a Program of Rehabilitation Services – To determine

whether the veteran’s disabilities cause an employment handicap; and/or if such a handicap

exists, the course of rehabilitation and feasibility in obtaining the vocational goals.
 Glossary

214

Face Value – The amount of insurance coverage in force and payable at death.

First Time Homeowner – A veteran using his home loan entitlement for the first time.

Fiscal Year – A period for settling accounts; a 12 month period at the end of which all

accounts are completed in order to furnish a statement of financial condition. A fiscal year does

not necessarily correspond to a calendar year.

Fiscal Year 2001 – Began October 1, 2000 and ended September 30, 2001. The Department

of Veterans Affairs operates under this budgetary scheduled.

Forecasting of Program Liabilities (Future Liabilities) – Future liabilities are payments that

the government is obligated to deliver in future years. This is much like the obligation of a life

insurance company to pay the face amount of a standard policy to beneficiaries at the time of

the insured person’s death.

Funding Fee – A fee, required by law, charged to veterans who obtain a VA guaranteed

home loan.

Guaranteed Loan– Federally backed by the VA home loan provision.

Housebound – An additional monetary allowance payable to those individuals who are

confined to their home as a result of a permanent disability.

Loan Defaulted-Guaranty Claim Paid – A term used by loan guaranty where the borrower

defaults on the loan and the VA pays the loan guaranty claim.

Loan Guaranty Program – The benefit program whereby VA guarantees a portion of a loan to

lenders to facilitate veterans obtaining a home.

Matured Endowment - The face amount of insurance less any indebtedness that is paid to

the insured based on the plan of insurance. The proceeds may be paid as a lump sum or the

insured may request installment payments.

MGIB – Montgomery GI Bill, Educational Benefits – Refers to the Montgomery GI BillActive Duty Educational Assistance Program (Chapter 30 of Title 38, U.S. Code). Provides

educational assistance to persons who served on active duty in the Armed Forces.

MGIB-SR – Montgomery GI Bill- Selective Reserve – Refers to the Montgomery GI BillSelected Reserve Educational Assistance Program (Chapter 1606 of Title 10, U.S. Code).

Provides educational assistance to members of the Selected Reserve of the Ready Reserve of

any of the reserve components of the Armed Forces.
 Glossary

215

NSLI - National Service Life Insurance was established in 1940 to meet the insurance needs of

World War II veterans. The program closed in 1951.

Original Disability Claim (C&P) – A veteran’s first claim for disability benefits, either

compensation or pension or both. Any subsequent claim is categorized as a reopened or

supplemental claim.

Paid up Additions – Established in 1972 for policyholders with participating policies to use

their annual dividends to purchase paid-up additional insurance (PUA). PUA is the only way

most policyholders may increase their insurance coverage amount.

Peacetime Veterans – Those veterans who served during a period of time not statutorily

defined as a period of war. By example, the Gulf War period began on August 2, 1990, and

continues through a date to be set by law or presidential proclamation.

Prisoner of War (POW) – Those veterans who were forcibly detained (confined) by an enemy,

foreign government or hostile force while serving in the active military, naval or air service.

Previous Homeowner – A person who has had a previous ownership interest in a home.

Protected DIC – This rate of DIC refers to payments made to surviving spouses for the

service-connected deaths of veterans that occurred prior to January 1, 1993. Payments under

Protected DIC are based on the deceased veteran’s pay grade.

Protected Pension – The pension program, both disability and death, replaced by Section

306 Pension, which in turn was replaced by the current pension program under the provisions

of PL 95-588. Veterans and survivors receiving either Protected Pension or Section 306

Pension may continue to receive the benefits as long as they continue to meet the basic

entitlement requirements of the respective programs.

Purchase Loan – A loan made solely for the purpose for purchasing a home.

Range of Disabilities – A disability is evaluated according to the VA Schedule for Rating

Disabilities in Title 38, Code of Federal Regulations, Part 4. Extent of disability is expressed

as a percentage from zero percent (for conditions that exist but are not disabling to a

compensable degree) to 100 percent, in increments of 10 percent. Most disabilities, however,

do not have every 10 percent increment from zero to 100.

Rating Board Automation Database (RBA) - This database contains information for veterans

based on the input of disability ratings by CandP field personnel using the RBA application.

The Data Management Office maintains the database in VBA’s Data Warehouse.
 Glossary

216

Reformed DIC – This rate DIC refers to payments made to surviving spouses for the serviceconnected deaths of veterans that occurred on or after January 1, 1993. Reformed DIC pays a

standard fixed rate, plus a possible additional amount if the veteran was rated totally disabled

for eight years immediately preceding death.

Reservist (EDU)– A member of the Selected Reserve who is eligible for educational

assistance under Title 10 of the United States Code, Chapter 1606, and who is also a member

of a military reserve component.

Reservist (C&P) – A member of a reserve component of one of the armed forces and who has

potentially entitlement to certain VA benefits by reason of his or her reserve status.

Restored Entitlement (LGY) – Previously used entitlement may be restored when a property

secured by a VA loan is sold and the loan is paid in full or when an eligible veteran transferee

agrees to assume the outstanding balance on a VA loan and substitute his/her entitlement for

the same amount originally used on the loan.

SDVI – Service-Disabled Veterans Insurance was established in 1951 to meet the insurance

needs of veterans with service-connected disabilities. SDVI is open to veterans separated

from the service on or after April 25, 1951, who receive a service-connected disability rating of

0 percent or greater.

Secondary Market – The market where mortgages are bought and sold. This generates more

money for the mortgage originators.

Service-Connected – A disease or injury determined to have occurred in or aggravated during

military service.

Serious Employment Handicap – A "serious employment handicap" is a significant

impairment, caused in part by a service-connected disability, in the veteran's ability to prepare

for, obtain, or retain employment consistent with his or her abilities, aptitudes, and interests.

Service member – An individual who is currently serving on active duty. This term is also

referred to as “service person”.

SGLI – Service Members Group Life Insurance was established in 1965 to meet the insurance

needs of service-members.

Special Adaptive Housing Grants – A one-time grant to a seriously disabled veteran to

assist in adapting his or her home to accommodate the residence to the limitations caused by

the disability.
 Glossary

217

Subsistence Allowance – A monthly living allowance paid to a qualified veteran in a program

of vocational rehabilitation. The allowance is generally paid to those veterans who are enrolled

in education or training programs. The amount is based on training time and number of

dependents.

Survivors’ and Dependents Educational Assistance – This term refers to Chapter 35 of

Title 38, U.S. Code, a monetary educational benefit payable to eligible dependents and

survivors of veterans. It is often abbreviated simply as DEA (Dependent Educational

Assistance).

Title 38 United States Code – Code of Federal Regulations that pertain to Veterans Benefits.

Total and Permanent Disability Provision – A special rating status with a requirement that a

veteran, regardless of age, has a single disability rated 60 percent or a combined evaluation of

70 percent, with one disability ratable at 40 percent or higher.

Total Disability Income Provision – Income limits set by Congress.

USGLI – United States Government Life Insurance was established in 1919 to meet the

insurance needs of World War I veterans. This program closed in 1940.

VEAP – Refers to the Veterans Educational Assistance Program (Chapter 32 of Title 38, U.S.

Code), and is a contributory educational assistance program for Post-Vietnam Era veterans.

Veteran - The term veteran means a person who served in the active military, naval, or air

service, and who was discharged or released therefrom under conditions other than

dishonorable.

VGLI – Veterans Group Life Insurance was established in 1974 to meet the insurance needs

of veterans after separation from service.

VMLI – Veterans Mortgage Life Insurance was established in 1971 to provide mortgage

protection life insurance to severely disabled veterans who have received grants for the

purchase of specially adapted housing.

VR&E – The Vocational Rehabilitation and Employment (VR&E), programs available to help

service disabled veterans to become employable while achieving their independence.

VRI – Veterans Reopened Insurance was established in 1965 to provide insurance protection

for certain classes of disabled veterans from World War II and the Korean Conflict. This

program closed in 1966.
 Glossary

218

VSLI – Veterans Special Life Insurance was established in 1951 to meet the insurance needs

of veterans who served during the Korean Conflict and post-Korean era. The program closed

in 1956.

Zero (0) Percent Disability – A zero percent disability rating means that a disability exists and

is related to the veteran’s service but is not so disabling that it entitles the veteran to

compensation payments. Also called a non-compensable disability.
U.S. DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

810 Vermont Avenue, NW

Washington, DC 20420

Internet Homepage: http://www.vba.va.gov

You may obtain additional copies of this report by calling the Data Management Office at (202) 273-6811.

You may also access this report though our Internet Homepage.