Veterans Benefits Administration

Annual Report

Fiscal Year 1999

July 2000

Annual Benefits Report

Fiscal Year 1999

July 2000

Department of

Veterans Affairs
ii

THE UNDER SECRETARY OF VETERANS AFFAIRS FOR BENEFITS 

WASHINGTON, D.C. 20420 

Dear Reader: 

 I am pleased to present the Veterans Benefits Administration (VBA) Annual 

Benefits Report for Fiscal Year 1999. Using the same framework as last year’s report, 

we are providing information on new business during fiscal year 1999 and active 

accounts at the beginning of fiscal year 2000. 

 In this, the second edition of the VBA Annual Benefits Report, however, we begin 

the inclusion of a new dimension to the discussion of program activity – the future. 

Presented in the new Chapter 4 is a strategic view, which provides projections of program 

usage and associated financial obligations of the government to veterans and survivors, 

well beyond fiscal year 2000. We believe this “rational link” to the future of VBA programs 

brings important contextual information to long-term policy and management decision 

making in both the Executive and Legislative branches of government. 

 This VBA Annual Benefits Report addresses estimated future liabilities for only the 

disability Compensation and Dependency and Indemnity Compensation programs - of 

which, the disability program provides a lifetime benefit. Our attention to the 

compensation programs in this report is based on the availability of adequate data and 

the special significance of these programs to veterans and the Nation. 

 We have also added three new appendices that incorporate the addresses of all 

VBA Regional Offices, telephone numbers for obtaining information about benefits and 

services, and web sites where additional information about VA may be obtained. An 

index that will allow you to quickly browse for specific topics has also been added. 

 I am interested in hearing from you as to how we might further enhance future VBA 

Annual Benefits Reports. Through your input and our own efforts toward improvement, 

we expect to make this report an essential information tool for years to come. 

Joseph Thompson 
TABLE OF CONTENTS 

CHAPTER 1 

 AN INTRODUCTION TO THE VETERANS BENEFITS ADMINISTRATION AND 

 ITS BENEFITS PROGRAMS 

VETERANS BENEFITS ADMINISTRATION - MISSION AND VISION ........................................... Page 1 

INTRODUCTION & PURPOSE OF VBA’s ANNUAL BENEFITS REPORT ..............................................1 

HIGHLIGHTS OF VETERANS BENEFITS HISTORY ...............................................................................3 

VBA’S BENEFITS PROGRAMS - IN BRIEF..............................................................................................4 

CHAPTER 2

 BUSINESS DURING FISCAL YEAR 1999 

BENEFICIARIES ENTERING THE PROGRAMS - NEW BUSINESS 

SUMMARY OF ALL PROGRAMS................................................................................... Page 11 

COMPENSATION - DISABILITY...............................................................................................13 

COMPENSATION - DEATH......................................................................................................33 

PENSION - DISABILITY............................................................................................................36 

PENSION - DEATH...................................................................................................................38 

EDUCATION .............................................................................................................................39 

LIFE INSURANCE.....................................................................................................................41 

HOME LOAN GUARANTY........................................................................................................43 

VOCATIONAL REHABILITATION & EMPLOYMENT...............................................................49 

BENEFICIARIES LEAVING THE PROGRAMS - TRANSITIONS 

SUMMARY OF ALL PROGRAMS.............................................................................................60 

COMPENSATION - DISABILITY...............................................................................................61 

COMPENSATION - DEATH......................................................................................................62 

PENSION - DISABILITY............................................................................................................63 

PENSION - DEATH...................................................................................................................64 

EDUCATION .............................................................................................................................65 

LIFE INSURANCE.....................................................................................................................66 

HOME LOAN GUARANTY........................................................................................................67 

VOCATIONAL REHABILITATION & EMPLOYMENT...............................................................68 

CHAPTER 3 

 BUSINESS BEGINNING FISCAL YEAR 2000 

SUMMARY OF ALL PROGRAMS..................................................................................................Page 75 

COMPENSATION - DISABILITY............................................................................................................. 77 

COMPENSATION - DEATH .................................................................................................................... 97 

PENSION - DISABILITY ........................................................................................................................ 101 

PENSION - DEATH ............................................................................................................................... 103 

EDUCATION.......................................................................................................................................... 105 

LIFE INSURANCE ................................................................................................................................. 107 

HOME LOAN GUARANTY .................................................................................................................... 113 

VOCATIONAL REHABILITATION & EMPLOYMENT ........................................................................... 118 

 
ii

CHAPTER 4 

 THE FUTURE – FORECASTING PROGRAM LIABILITIES

FORECASTING OF PROGRAM LIABILITIES..................................................................Page 123 

LIABILITY FOR FUTURE COMPENSATION BENEFITS ....................................................................124 

TABLE 1 - ESTIMATED FUTURE BENEFIT PAYMENTS.................................................................... 125 

TABLE 2 - DISCOUNTED ESTIMATED FUTURE COMPENSATION PAYMENTS............................. 127 

TABLE 3 - VETERANS RECEIVING COMPENSATION ...................................................................... 129 

TABLE 4 - DEATH RATES.................................................................................................................... 131 

TABLE 5 - RATES OF NEWLY ADJUDICATED COMPENSATION CASES ....................................... 133 

APPENDICES 

APPENDIX A - VBA REGIONAL OFFICE ADDRESSES ...........................................................Page 137 

APPENDIX B - CONTACTING VA BY TELEPHONE............................................................................ 141 

APPENDIX C - WEB SITES ................................................................................................................. 143 

INDEX 

INDEX ... ......................................................................................................................................Page 145 
CHAPTER 1

AN INTRODUCTION TO

THE VETERANS BENEFITS ADMINISTRATION

AND ITS BENEFITS PROGRAMS

 VETERANS BENEFITS ADMINISTRATION - ITS MISSION AND VISION 

VBA’s Mission Statement 

The mission of the Veterans Benefits Administration, 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.

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. 

 INTRODUCTION & PURPOSE OF VBA’S ANNUAL BENEFITS REPORT 

The Veterans Benefits Administration (VBA) is one of three administrations comprising the 

Department of Veterans Affairs. VBA is responsible for administering and delivering an array 

of Federally authorized benefits and services to eligible veterans and, in certain instances, 

their dependents and survivors. VBA programs include disability and death compensation and 

pension, education, life insurance, home loan guaranties, and vocational rehabilitation and 

employment. 

 
Chapter 1 Introduction

With annual expenditures exceeding $23 billion and long-term obligations exceeding one 

trillion dollars, VBA programs have a sweeping impact not only on the veteran community but 

on the whole of American society. These are programs that touch millions of lives in 

fundamental ways. 

In fact, the indirect reach of VBA programs extends well beyond the veteran community. Their 

net effect on society and the economy is so significant that a periodic reporting of program 

details - an Annual Benefits Report - is an appropriate addition to public discourse. Benefit 

programs that are the focus of this report, and the kinds of assistance they provide, are: 

 Compensation. Compensates veterans for the average loss of earning capacity 

resulting from disability associated with military service. It also indemnifies 

survivors in the event that the veteran dies of service-related causes. 

 Pension. Provides a minimum level of economic security to nonservice disabled 

wartime veterans (with additional allowances for veterans with dependents), as well 

as survivors of wartime veterans. This program supports those facing severe 

financial hardship. 

 Educational Support. Conveys opportunities to acquire knowledge and skills for 

the civilian job market. 

 Life Insurance. Affords the opportunity to provide for survivors by building an 

estate. 

 Home Loan Guaranty. Helps bring the dream of homeownership within reach. 

 Vocational Rehabilitation & Employment. Leads to suitable employment or 

independence in daily living when employment is not an option. 

The intent of this report is to identify the current level of program participation by eligible 

persons and to profile the veteran/beneficiary consumers. The objective of this report is not to 

analyze work processes associated with day-to-day administration of the benefit programs. It 

is meant to present a clear, complete, data-driven picture of the extent to which veterans and 

their dependents use these benefits; to provide insights into the nature of the benefits 

programs; and to portray the economic impact of VBA programs on veterans, their families, 

and the Federal government. This report does not duplicate information published in the 

Annual Report of the Secretary of Veterans Affairs. Rather, this report provides additional 

information that lends perspective, context, and detail to existing descriptions of the benefits 

programs. 

The data presented in this report are drawn from existing VBA data systems that in some 

cases do not represent the kinds of information that would best meet the purposes described 

above. However, the Under Secretary for Benefits has made data integrity and information 

utility top priorities of his administration. VBA recognizes that accurate, reliable, complete data 

are essential to effective program management. This report represents one component of 

VBA’s comprehensive effort to improve its data management strategies and practices. 

2
Chapter 1 Introduction

 HIGHLIGHTS OF VETERANS BENEFITS HISTORY 

“... provide for the common defense, promote the general welfare...” 

 Preamble to the Constitution 

March 4, 1789, the day the U.S. Constitution was enacted, was also the day our new Federal 

government passed its first law to help veterans who were injured in service. This action 

continued a tradition reaching back more than 150 years to 1636, when the Plymouth colony 

provided pensions to veterans disabled in defense of the colony. The new Federal pension 

law passed in 1789 was a continuation of a pension law created in 1776 by the Continental 

Congress. The significant change was that, instead of each state administering its own 

program, the new Federal government assumed the responsibility of paying veterans’ 

pensions. Thus began a two-century-long commitment by the American people to help those 

who wore our nation’s uniform to defend the ideals embodied in the Constitution. 

Each wartime era has brought unique circumstances. Moreover, societal change is ongoing, 

during both wartime and peacetime. Naturally, programs to help veterans have evolved along 

with the changing conditions associated with societal and military influences. 

Until the 20th century, veterans’ benefits consisted primarily of pension payments to veterans 

and their dependents. Occasionally, with land being the essential resource in an agrarian 

economy, land grants or priority purchase rights were available to veterans. While levels of 

monetary assistance and eligibility criteria continued to evolve, the most profound change in 

the 19th century was the dramatic rise in the number of the nation’s veterans. In the aftermath 

of the Civil War, some 1.9 million veterans were added to the rolls by 1865. Prior to 1861, only 

80,000 veterans of prior wars were still living.1

The experiences of the 20th century produced a much larger veteran population (from less than 

two million in 1900 to a high of about 28 million in 1980),2

 an industrial-based economy, 

mechanized warfare and medical advances that saved the lives of many battlefield casualties. 

In response to these changes, veterans benefits were transformed. The original “GI Bill of 

Rights” in 1944 was the vehicle that remade veterans benefits. In fact, the GI Bill (officially, the 

Servicemen’s Readjustment Act of 1944) is commonly regarded as among the most successful 

domestic legislation in U.S. history.3

 The rationale for veterans benefits programs became 

reoriented toward “readjustment” from military to civilian social and economic life. Education 

grants; home and business loans; and unemployment compensation supported veterans’ 

efforts to realize their dreams of higher education, good job opportunities, and home 

ownership. GI Bill benefits spurred the educational, scientific, technical, and economic boom 

of the postwar period. Many veterans and their families found the door to the expanding 

American middle class opened by their entitlement to GI Bill benefits. 

 

1

 Veterans benefits were not authorized for veterans of the Confederacy until 1958.

2

 Source: The Veterans Benefits Administration: An Organizational History 1776 - 1994 3

 “Just as D-Day was the greatest military action in our history, so the “G.I. Bill was arguably the greatest investment in our people in American 

history.” President William J. Clinton, Washington DC, June 22, 1994.

3
Chapter 1 Introduction

In defense of the ideals of the Constitution, more than 41 million of America’s sons and 

daughters have served in the armed forces, among whom one million have died in service and 

millions more were wounded or injured. In return, America has consistently provided help to 

these citizen-soldiers in making the sometimes-difficult transition back to civilian life. VBA’s 

current benefit programs continue this tradition. 

 VBA’S BENEFITS PROGRAMS - IN BRIEF 

 COMPENSATION - BASED UPON SERVICE-CONNECTED DISABILITY OR DEATH

The American people have long recognized that they owe a debt of gratitude to their veterans. 

Throughout its history, the United States has sought to relieve the burden on veterans and 

their families, of disability or death related to military service. 

One means of relief has been achieved through compensation of disabled veterans and their 

survivors, referred to as “disability pension” prior to the 20th century. Disability compensation is 

a monetary benefit paid to veterans with service-connected disabilities. “Service-connected” 

means that the disability was a result of 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, and the 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. The most seriously disabled veterans receive the highest benefit amounts, and 

less severely disabled veterans receive lower benefits. 

Dependency and Indemnity Compensation (DIC) is payable to certain categories of survivors if 

the servicemember’s or veteran’s death was attributable to a disability incurred or aggravated 

during military service. Surviving spouses who are not remarried4

 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 servicemembers who die as the result of service-connected disease or 

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

designed to serve financially dependent parents. 

 

4 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.

4
Chapter 1 Introduction

 PENSION - BASED UPON NONSERVICE DISABILITY OR DEATH AND FINANCIAL NEED

VA pension programs were designed to provide income support to veterans with wartime 

service who become permanently and totally disabled or die as the result of nonserviceconnected conditions. These programs which serve veterans and survivors who are 

experiencing financial hardship, are means tested. In other words, the level of a beneficiary’s 

family income from other sources determines the amount of the benefit. Income limits and 

benefit rates for these programs are established by law. 

Wartime veterans who become permanently and totally disabled as the result of a nonserviceconnected disability may be eligible for disability pension, subject to income limitations. 

Additional amounts may be paid to a veteran who has dependents, who 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,” predecessor pension programs, whose rates and 

limits are fixed at the amounts in effect when the programs were replaced. 

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

pension benefits, subject to income limitations. As with disability pension, death pension is 

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

programs. 

 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: 

Post-Vietnam Era Veterans' Educational Assistance Program (VEAP) 

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

Requirements and features of VEAP are these: 

 Veteran 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 servicemember 

 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 refunded 

5
Chapter 1 Introduction

 Additional "kickers"5 or contributions from the Department of Defense (DOD) under 

certain circumstances 

 Current full-time VEAP rate is $300 per month plus any DOD "kicker" adjustment 

Montgomery GI Bill - Active Duty (MGIB)

In 1996, Public Law 104-275 provided that certain VEAP participants who were on active duty 

on October 9, 1996, could elect Montgomery GI Bill (MGIB) benefits. The deadline for this 

election was October 8, 1997. Some 41,041 veterans and servicemembers took advantage of 

this opportunity to elect MGIB. MGIB is a contributory program. The servicemember’s pay is 

automatically reduced by $100 per month for 12 months unless the servicemember declines to 

participate at the time of enlistment. Requirements and features of MGIB are these: 

 Served on active duty after June 30, 1985 

 Must fulfill one's basic service obligation 

 Must have completed high school 

 Must receive an honorable discharge 

 Maximum entitlement is 36 months 

 Additional "kicker" may be available, as determined by DOD 

 Generally, must use benefits within 10 years following discharge 

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 these: 

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

 Must have completed high school education 

 Remain a member in good standing of the Selected Reserve 

 Maximum entitlement is 36 months 

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

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 these: 

 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 

 A spouse's remarriage bars further benefits6

 - a child's marriage does not

 

5

 A “kicker” is an additional monetary contribution paid by the military under certain circumstances. 6

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

divorce.

6
Chapter 1 Introduction

 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, potentially including war. Few commercial insurance companies offered 

insurance that included coverage against death while in the armed forces. Those that did so 

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

forces could maintain their VA insurance following discharge. 

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

War I. In 1946, the first government life insurance program directed at the insurance needs of 

disabled veterans was created. These veterans, because of their disabilities and associated 

health risks, either could not obtain commercial life insurance or would have to pay higher than 

“standard” premium rates. This program, part of the National Service Life Insurance (NSLI) 

program, offered insurance at “standard” premium rates to veterans with service-connected 

disabilities. 

With the various life insurance programs offered at affordable rates, members of the armed 

forces and veterans were provided the opportunity to begin building an estate. 

The following government life insurance programs have been closed to the issuance of new 

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

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

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 

1

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

7
Chapter 1 Introduction

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

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

Programs That Issue Coverage 

Program Year Maximum Coverage 

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

Servicemembers' Group Life Insurance (SGLI) 1965 $200,000 

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

Veterans' Group Life Insurance (VGLI) 1974 $200,000 

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. 

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. 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 payment of the fee. Since the 

program's inception in 1944, VA has guaranteed more than 16.1 million loans totaling over 

$653 billion. 

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

the specially adapted housing program. Eligible veterans may use these grants to buy, build 

or modify homes specifically adapted for their use, including distinctive housing needs such as 

wide doorways to accommodate wheelchairs, ramps instead of steps, and oversized and 

specially equipped bathrooms. Separate specially adapted housing grants are also available 

for disabled veterans who are either blind in both eyes or who have lost, or lost the use of, both 

hands. 

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

VA Loan Program. Efforts to develop positive working relationships with Native American 

groups and tribes and relevant government entities continued in fiscal year 1999. Loan 

Guaranty provides program information and materials to all interested parties and to VA 

8
Chapter 1 Introduction

personnel. VA has entered into Memoranda of Understanding (MOU) with a total of 57 

participating Native American tribes. During fiscal year 1999, VA field offices closed 31 loans 

under this program. To date, 212 loans have been made to Native American veterans under 

this pilot program. 

The table below provides 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, he or 

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

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 

Reservists1 6 years 

Unremarried Survivor Of an eligible veteran who died as a result of 

service or service-connected injuries 

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

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

1

 Entitlement currently due to expire on 9/30/03. 

9
Chapter 1 Introduction

10

 VOCATIONAL REHABILITATION AND EMPLOYMENT 

The Vocational Rehabilitation and Employment (VR&E) program helps service-disabled 

veterans become employable and obtain and maintain suitable employment. VR&E also 

administers a program of rehabilitation services to help disabled veterans achieve 

independence in daily living. Additionally, the VR&E program provides educational and 

vocational counseling for eligible servicemembers, veterans, and dependents. The outcome of 

educational and vocational counseling is the selection of an educational or vocational goal 

and/or the selection of institutions of learning and training where this goal may be pursued. 

The programs administered under the VR&E Service and its statutory authorities are shown in 

the following table. 

VR&E PROGRAM STATUTORY AUTHORITY 

Vocational rehabilitation for service-connected disabled 

veterans 

38 U.S.C. Chapter 31 

Vocational training for certain pension recipients 

(nonservice-connected) 

38 U.S.C. Chapter 15 

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 
CHAPTER 2

BUSINESS DURING FISCAL YEAR 1999

 Summary Of Beneficiaries Entering All Benefits Program Rolls During 

 Fiscal Year 1999 

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

a benefit during fiscal year 1999 and the monetary value of the benefits. Total annual amount 

and average annual amounts reflected in the tables refer to fiscal year 1999 only. 

The first table summarizes the benefits that pay a recurring monthly monetary amount. The 

number of people shown represents those who began receiving the benefit during fiscal year 

1999. 

Summary of Beneficiaries Who Began Receiving Benefits 

For Programs That Pay Ongoing Monthly Benefits 

During Fiscal Year 1999 

Benefit Programs Number 

of People 

Percent 

of Total 

Total 

Annual Amounts 

Paid in FY 1999 

Average 

Annual Amounts 

Paid in FY 1999 

 Compensation - Disability 87,384 50.3% $424,007,130 $4,852 

 Compensation - Death1 17,053 9.8% $176,279,596 $10,337 

 Pension - Disability 46,522 26.8% $293,282,075 $6,304 

 Pension – Death2 22,653 13.0% $71,511,282 $3,157 

Total of All Programs 173,612 100.0% $965,080,084 $5,559 

1 This category represents the Dependency and Indemnity Compensation Program. 2

 Only represents Surviving Spouses. 

The second table 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 

1999. 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 1999 - 

not the number who used the benefit for the first time during fiscal year 1999. The annual 

amounts of money paid are not available at this time for Education or VR&E. 

11 
Chapter 2 Business During FY 1999

Summary of Beneficiaries Who Began Receiving 

Benefits for Programs That Pay 

Monthly Benefits During Training 

During Fiscal 1999 

Benefit Programs Number of 

People 

Percent of 

Total 

Education 106,698 67.2% 

Vocational Rehabilitation 51,973 32.8% 

Total 158,671 100.0% 

The third table summarizes the benefits that provide for a payment if certain events occur (e.g. 

death of the insured and default on a mortgage). For the Life Insurance program, the 

monetary amount is the face value of the policies issued during fiscal year 1999. For Home 

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

underlying mortgages) established during fiscal year 1999. For the Life Insurance and Home 

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

paid out during the year by VBA.

Summary of Beneficiaries Who Obtained Coverage 

During Fiscal Year 1999 

Benefit Programs That Constitute Potential Liabilities 

Benefit Programs Number of 

People 

Percent 

of Total 

Total Coverage 

Amounts 

Average 

Coverage 

Amounts 

Life Insurance 268,353 35.6% $47,155,855,903 $175,723 

Home Loan Guaranty 485,610 64.4% $54,087,681,042 $34,306 

Total 753,963 100.0% $101,243,536,945 $134,282 

 Individual Data For Each Benefit Program 

The following sections of this chapter provide specific information about each benefit program. 

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

fiscal year 1999. This would include beneficiaries whose awards were stopped prior to the 

current year but who reestablished eligibility during the year. 

12
Chapter 2 Business During FY 1999

 1. COMPENSATION - BASED UPON SERVICE-CONNECTED DISABILITY

Disability compensation is paid on the basis of disabilities that are found to have occurred 

during or to have been 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 disability compensation. Disabilities are evaluated according to 

the VA Schedule for Rating Disabilities contained 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. 

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. 

 

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

 Fiscal Year 1999

The following table provides data on veterans who began receiving disability compensation 

during fiscal year 1999, 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 1999 

Number Total 

Annual Amounts 

Average 

Annual Amounts 

TOTAL 87,384 $424,007,130 $4,852 

Source: COIN CP-127 

b. Conditions Claimed and Disabilities for which Compensation Is Being Paid 

This section provides information about individual disabilities reported on original claims for 

benefits; individual disabilities determined to be service-connected; and the combined degree 

of disability for veterans who began receiving compensation payments during fiscal year 1999. 

An “original” claim is the first application submitted by a veteran. Any single application, 

original or subsequent, may include multiple disabilities to be evaluated for service-connection.

Note: Some information in this section is generated from the Rating Board Automation (RBA) 

Database initially implemented in January 1998. The data provide useful information about 

disability compensation that did not previously exist. In the past, our claims management 

computer systems were not capable of collecting and storing data at this level of detail. The 

information from the RBA Database presented in this report is a sample of the ratings done 

13
Chapter 2 Business During FY 1999

during fiscal year 1999, instead of a complete record of all the rating actions done during the 

year. The sample includes a total of 72,986 original disability compensation ratings. Tables 

containing RBA information are labeled “Source: Rating Board Automation Database”. 

Number of Disabilities Per Claim 

This table shows the distribution (by percent) of the number of disabilities claimed in 

original benefits applications. For example, 12.5 percent of original applications rated 

during fiscal year 1999 claimed service connection for three individual disabilities. The 

average, range, and median number of disabilities claimed are shown at the bottom of the 

table.7

Applications For Service-Connected Disability Compensation 

By Number Of Disabilities Claimed 

For Fiscal Year 1999 

Number of Disabilities Claimed 

1 2 3 4 5 6 7 8 

Percent of 

Applications 

23.1% 16.5% 12.5% 9.6% 7.5% 6.2% 4.6% 4.6% 

Number of Disabilities Claimed 

9 10 11 thru 15 16 thru 20 21 thru 25 over 25 Total 

Percent of 

Applications 

3.4% 2.7% 6.6% 1.9% 0.6% 0.3% 100.0% 

Average Number of Disabilities: 4.7; Range of Disabilities: 1 to 61; Median Number of Disabilities: 3 

Source: Rating Board Automation Database 

Total Number of Individual Disabilities Determined to be Service-Connected 

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

disability are provided in the following table. 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 1999. 

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

service but is not disabling to a degree that would allow payment of 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 

 

7

 This level of detail was not available prior to introduction of the RBA system. Claims processing data generated by the current systems (i.e., 

the legacy systems) provide only general information about the number of claimed disabilities (1 to 7 disabilities or 8 or more). RBA data will 

give a clearer picture for managing the claims process. 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 below the following table.

14
Chapter 2 Business During FY 1999

for specific disabilities. Veterans who do not receive compensation but have disabilities 

rated zero percent are not represented in these tables. 

 The most frequently assigned percentage during FY 1999 is highlighted in yellow in the 

 following table. 

Total Individual Service-Connected Disabilities - by Percent 

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

0% 10% 20% 30% 40% 50% 

Number of Disabilities 122,973 112,515 15,668 14,992 2,983 4,851 

Percent of All Disabilities 43.4% 39.7% 5.5% 5.3% 1.1% 1.7% 

60% 70% 80% 90% 100% Total 

Number of Disabilities 2,022 2,069 97 32 5,114 283,316 

Percent of All Disabilities 0.7% 0.7% 0.0% 0.0% 1.8% 100.0% 

Total Veterans: 87,384 Average number of disabilities per veteran: 3.24 

Number of Disabilities 0% thru 30%: 266,148 

 Percent of all Disabilities: 93.9% 

Source: COIN CP-145 and COIN CP-127 

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

Began Receiving Compensation during Fiscal Year 1999 

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. Disability 

compensation payments are determined according to the combined degree of disability. 

This table shows information about veterans who began receiving compensation during 

fiscal year 1999 by the combined percentage of disability, as well as 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 conditions. Under certain circumstances, a 

veteran with two or more disabilities individually evaluated zero percent can still produce 

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% 

column of this table. 

The most frequently assigned combined degree of disability during fiscal year 1999 and 

the highest aggregate annual compensation paid to veterans assigned the same 

combined disability rating are highlighted in yellow. 

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Chapter 2 Business During FY 1999

Service-Connected Disabilities - by Combined Percent 

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

Combined 

Degree Number Percent of Total Total Annual 

Amounts1

 

Average Annual 

Amounts 

0% 338 0.4% $279,823 $828 

10% 33,589 38.4% $38,791,264 $1,155 

20% 16,082 18.4% $35,595,899 $2,213 

30% 13,628 15.6% $51,436,978 $3,774 

40% 7,672 8.8% $41,640,547 $5,428 

50% 5,154 5.9% $39,392,847 $7,643 

60% 3,491 4.0% $44,968,967 $12,881 

70% 2,501 2.9% $43,267,400 $17,300 

80% 874 1.0% $17,635,257 $20,178 

90% 340 0.4% $7,588,596 $22,319 

100% 3,715 4.3% $103,409,551 $27,836 

TOTAL 87,384 100.0% $424,007,130 $4,852 

Number of Disabilities 0% thru 30%: 63,637 

 Percent of all Disabilities: 72.8% 

Source: 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 1999. 

16
Chapter 2 Business During FY 1999

c. Individual Service-Connected Disabilities by Body System 

The following table shows all individual disabilities, by body system, found to be serviceconnected among veterans who were awarded compensation during fiscal year 1999. The 

table does not include zero percent disabilities among veterans who were not awarded 

compensation. 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 1999 

Body System Total 

Number

Percent of 

Total 

Body System Total 

Number

Percent 

of Total 

Musculoskeletal System 119,485 42.2% Genitourinary System 6,716 2.4% 

Skin 34,236 12.1% Eye 3,314 1.2% 

Impairment of Auditory Acuity 27,321 9.6% Gynecological Conditions 3,154 1.1% 

Digestive System 18,823 6.6% Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

2,524 0.9% 

Mental Disorders 17,680 6.2% Endocrine System 2,501 0.9% 

Respiratory System 15,842 5.6% Dental and Oral Conditions 1,533 0.5% 

Cardiovascular System 15,588 5.5% Hemic & Lymphatic Systems 1,032 0.4% 

Neurological Conditions 13,567 4.8% Grand Total - All Conditions 283,316 100.0% 

Source: COIN CP-145 

d. Individual Service-Connected Disabilities by Body Systems 

During fiscal year 1999, 766 separate diagnostic codes were used in rating the 283,316 

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

displayed in VBA diagnostic code order. Diagnostic codes are four-digit numbers that are 

used to signify specific medical conditions, and these numeric diagnostic codes are prescribed 

in Title 38, Code of Federal Regulations, Part 4. The following 4-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. Yellow highlights the degree of disability appearing 

most often in each body system for veterans who began receiving compensation during fiscal 

year 1999. 

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Chapter 2 Business During FY 1999

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

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

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) 41,511 34.7% 62,660 52.4% 10,538 8.8% 

Eye 

(Codes 6000-6099) 1,681 50.7% 930 28.1% 134 4.0% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 13,929 51.0% 11,809 43.2% 556 2.0% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 2,044 81.0% 230 9.1% 22 0.9% 

Respiratory System 

(Codes 6501-6899) 8,418 53.1% 4,260 26.9% 21 0.1% 

Cardiovascular System 

(Codes 7000-7199) 3,352 21.5% 8,229 52.8% 1,477 9.5% 

Digestive System 

(Codes 7200-7399) 12,929 68.7% 4,540 24.1% 385 2.0% 

Genitourinary System 

(Codes 7500-7599) 3,872 57.7% 1,028 15.3% 398 5.9% 

Gynecological Conditions 

(Codes 7610-7699) 1,569 49.7% 350 11.1% 7 0.2% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 365 35.4% 87 8.4% 147 14.2% 

Skin 

(Codes 7800-7899) 27,127 79.2% 6,538 19.1% 58 0.2% 

Endocrine System 

(Codes 7900-7999) 268 10.7% 1,201 48.0% 783 31.3% 

Neurological Conditions 

(Codes 8000-8999) 3,674 27.1% 6,315 46.5% 1,042 7.7% 

Mental Disorders 

(Codes 9200-9599) 1,291 7.3% 3,879 21.9% 12 0.1% 

Dental and Oral Conditions 

(Codes 9900-9999) 943 61.5% 459 9.9% 88 5.7% 

Grand Total - All Conditions 

(Codes 5000-9999) 122,973 43.4% 112,515 39.7% 15,668 5.5% 

Source: COIN CP-145 

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Chapter 2 Business During FY 1999

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

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

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) 1,764 1.5% 1,786 1.5% 141 0.1% 

Eye 

(Codes 6000-6099) 412 12.4% 59 1.8% 19 0.6% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 395 1.4% 224 0.8% 139 0.5% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

72 2.9% 21 0.8% 2 0.1% 

Respiratory System 

(Codes 6501-6899) 1,514 9.6% 1 0.0% 323 2.0% 

Cardiovascular System 

(Codes 7000-7199) 1,503 9.6% 200 1.3% 20 0.1% 

Digestive System 

(Codes 7200-7399) 596 3.2% 56 0.3% 13 0.1% 

Genitourinary System 

(Codes 7500-7599) 337 5.0% 132 2.0% 0 0.0% 

Gynecological Conditions 

(Codes 7610-7699) 692 21.9% 19 0.6% 485 15.4% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 50 4.8% 17 1.6% 0 0.0% 

Skin 

(Codes 7800-7899) 428 1.3% 24 0.1% 51 0.1% 

Endocrine System 

(Codes 7900-7999) 36 1.4% 109 4.4% 1 0.0% 

Neurological Conditions 

(Codes 8000-8999) 1,507 11.1% 328 2.4% 238 1.8% 

Mental Disorders 

(Codes 9200-9599) 5,649 32.0% 3 0.0% 3,417 19.3% 

Dental and Oral Conditions 

(Codes 9900-9999) 37 2.4% 4 0.3% 2 0.1% 

Grand Total - All Conditions 

(Codes 5000-9999) 14,992 5.3% 2,983 1.1% 4,851 1.7% 

Source: COIN CP-145 

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Chapter 2 Business During FY 1999

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

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

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) 577 0.5% 38 0.0% 7 0.0% 

Eye 

(Codes 6000-6099) 16 0.5% 19 0.6% 1 0.0% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 64 0.2% 48 0.2% 31 0.1% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

89 3.5% 1 0.0% 2 0.1% 

Respiratory System 

(Codes 6501-6899) 398 2.5% 0 0.0% 1 0.0% 

Cardiovascular System 

(Codes 7000-7199) 501 3.2% 1 0.0% 4 0.0% 

Digestive System 

(Codes 7200-7399) 81 0.4% 4 0.0% 3 0.0% 

Genitourinary System 

(Codes 7500-7599) 114 1.7% 2 0.0% 11 0.2% 

Gynecological Conditions 

(Codes 7610-7699) 8 0.3% 0 0.0% 1 0.0% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 5 0.5% 12 1.2% 0 0.0% 

Skin 

(Codes 7800-7899) 1 0.0% 0 0.0% 3 0.0% 

Endocrine System 

(Codes 7900-7999) 55 2.2% 0 0.0% 0 0.0% 

Neurological Conditions 

(Codes 8000-8999) 110 0.8% 36 0.3% 33 0.2% 

Mental Disorders 

(Codes 9200-9599) 3 0.0% 1,908 10.8% 0 0.0% 

Dental and Oral Conditions 

(Codes 9900-9999) 0 0.0% 0 0.0% 0 0.0% 

Grand Total - All Conditions 

(Codes 5000-9999) 2,022 0.7% 2,069 0.7% 97 0.0% 

Source: COIN CP-145 

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Chapter 2 Business During FY 1999

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

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

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) 3 0.0% 460 0.4% 119,485 100% 

Eye 

(Codes 6000-6099) 5 0.2% 38 1.1% 3,314 100% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 18 0.1% 108 0.4% 27,321 100% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

0 0.0% 41 1.6% 2,524 100% 

Respiratory System 

(Codes 6501-6899) 0 0.0% 906 5.7% 15,842 100% 

Cardiovascular System 

(Codes 7000-7199) 3 0.0% 298 1.9% 15,588 100% 

Digestive System 

(Codes 7200-7399) 0 0.0% 216 1.1% 18,823 100% 

Genitourinary System 

(Codes 7500-7599) 0 0.0% 822 12.2% 6,716 100% 

Gynecological Conditions 

(Codes 7610-7699) 0 0.0% 23 0.7% 3,154 100% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 0 0.0% 349 33.8% 1,032 100% 

Skin 

(Codes 7800-7899) 0 0.0% 6 0.0% 34,236 100% 

Endocrine System 

(Codes 7900-7999) 0 0.0% 48 1.9% 2,501 100% 

Neurological Conditions 

(Codes 8000-8999) 3 0.0% 281 2.1% 13,567 100% 

Mental Disorders 

(Codes 9200-9599) 0 0.0% 1,518 8.6% 17,680 100% 

Dental and Oral Conditions 

(Codes 9900-9999) 0 0.0% 0 0.0% 1,533 100% 

Grand Total - All Conditions 

(Codes 5000-9999) 32 0.0% 5,114 1.8% 283,316 100% 

Source: COIN CP-145 

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Chapter 2 Business During FY 1999

e. Most Prevalent Service-Connected Disabilities 

This section provides data about the most common disabilities found to be service-connected 

during fiscal year 1999. 

By Body Systems 

The next 3-page table shows the five disabilities most often found service-connected, by 

diagnostic code, within each body system, during fiscal year 1999. The body systems are 

shown in descending order by number of disabilities. 

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

diagnostic code as a proportion of the total number of service-connected disabilities recorded 

within that body system. The “Percent of Grand Total” indicates the frequency of service 

connection under each diagnostic code as a proportion of the total number of disabilities 

recorded under all body systems. 

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Chapter 2 Business During FY 1999

Most Common Service-Connected Disabilities within Body Systems 

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

Code Body System and Disability Total 

Number

Percent of 

System Total 

Percent of 

Grand Total 

Musculoskeletal System 119,485 100.0% 42.2% 

5299 Skeletal conditions 17,200 14.4% 6.1% 

5010 Arthritis, due to trauma 12,379 10.4% 4.4% 

5295 Lumbosacral strain 10,099 8.5% 3.6% 

5257 Knee, other impairment of 8,820 7.4% 3.1% 

5293 Intervertegral disc syndrome 7,002 5.9% 2.5% 

Skin 34,236 100.0% 12.1% 

7805 Scars, other10 13,162 38.4% 4.6% 

7899 Skin condition 4,322 12.6% 1.5% 

7800 Scars, disfiguring, head, face, neck 3,849 11.2% 1.4% 

7806 Eczema 3,659 10.7% 1.3% 

7804 Scars, superficial, tender and painful on objective 

demonstration 

2,982 8.7% 1.1% 

Auditory 27,321 100.0% 9.6% 

6260 Tinnitus 11,612 42.5% 4.1% 

6100 Auditory, acuity impairment, 0% 10,301 37.7% 3.6% 

6101 Auditory, acuity impairment, 10% 1,374 5.0% 0.5% 

6200 Otitis media, suppurative, chronic 589 2.2% 0.2% 

6102 Auditory, acuity impairment, 20% 491 1.8% 0.2% 

Digestive System 18,823 100.0% 6.6% 

7336 Hemorrhoids, external or internal 6,143 32.6% 2.2% 

7338 Hernia, inguinal 2,385 12.7% 0.8% 

7346 Hernia, hiatal 2,254 12.0% 0.8% 

7299 Digestive system, disease of 1,812 9.6% 0.6% 

7305 Ulcer, duodenal 1,017 5.4% 0.4% 

Mental Disorders 17,680 100.0% 6.2% 

9411 Post-traumatic stress disorder 10,732 60.7% 3.8% 

9434 Major depressive disorder 1,651 9.3% 0.6% 

9400 Generalized anxiety disorder 1,063 6.0% 0.4% 

9433 Dysthymic disorder 569 3.2% 0.2% 

9432 Bipolar disorder 449 2.5% 0.2% 

Source: COIN CP-145 

 

10 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.

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Chapter 2 Business During FY 1999

Most Common Service-Connected Disabilities within Body Systems 

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

Code Body System and Disability Total 

Number

Percent of 

System Total 

Percent of 

Grand Total 

Respiratory System 15,842 100.0% 5.6% 

6602 Asthma, bronchial 2,462 15.5% 0.9% 

6522 Allergic or vasomotor rhinitis 2,348 14.8% 0.8% 

6513 Sinusitis maxillary, chronic 1,946 12.3% 0.7% 

6502 Septum, nasal, deviation of 1,408 8.9% 0.5% 

6599 Nose and throat, disease of 1,160 7.3% 0.4% 

Cardiovascular System 15,588 100.0% 5.5% 

7101 Hypertensive vascular disease 6,650 42.7% 2.3% 

7122 Cold injury residuals 3,644 23.4% 1.3% 

7120 Varicose veins 1,474 9.5% 0.5% 

7005 Arteriosclerotic heart disease 1,081 6.9% 0.4% 

7099 Heart condition 317 2.0% 0.1% 

Neurological Conditions and Convulsive Disorders 13,567 100.0% 4.8% 

8100 Migraine 3,782 27.9% 1.3% 

8515 Median nerve, paralysis of 1,413 10.4% 0.5% 

8199 Neurological condition 945 7.0% 0.3% 

8599 Peripheral nerve condition 877 6.5% 0.3% 

8045 Brain disease due to trauma 821 6.1% 0.3% 

Genitourinary System 6,716 100.0% 2.4% 

7599 Genitourinary system condition 1,337 19.9% 0.5% 

7528 Malignant neoplasm 1,322 19.7% 0.5% 

7527 Prostate gland injuries, infections, postoperative 1,050 15.6% 0.4% 

7508 Nephrolithiasis 691 10.3% 0.2% 

7525 Epididymo-orchitis, chronic 292 4.3% 0.1% 

Eye 3,314 100.0% 1.2% 

6099 Eye condition 555 16.7% 0.2% 

6034 Eye, pterygium 301 9.1% 0.1% 

6009 Eye, injury of, unhealed 297 9.0% 0.1% 

6013 Eye, Glaucoma, simple, primary, noncongestive 287 8.7% 0.1% 

6018 Eye, Conjunctivitis other, chronic 281 8.5% 0.1% 

Source: COIN CP-145 

24
Chapter 2 Business During FY 1999

Most Common Service-Connected Disabilities within Body Systems 

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

Code Body System and Disability Total 

Number

Percent of 

System Total 

Percent of 

Grand Total 

Gynecological Conditions 3,154 100.0% 1.1% 

7628 Benign neoplasms, gynecological or breast 610 19.3% 0.2% 

7618 Uterus, removal of, including corpus 566 17.9% 0.2% 

7627 Malignant neoplasms of gynecological system or breast 431 13.7% 0.2% 

7699 Gynecological condition or disorder of the breast 335 10.6% 0.1% 

7629 Endometriosis 207 6.6% 0.1% 

Infectious Diseases, Immune Disorders, Nutritional Deficiencies 2,524 100.0% 0.9% 

6304 Malaria 1,796 71.2% 0.6% 

6351 HIV-Related illness 157 6.2% 0.1% 

6399 Infectious disease, immune disorder, nutritional deficiency 146 5.8% 0.1% 

6350 Lupus erythematosus, systemic 92 3.6% 0.0% 

6354 Chronic fatigue syndrome 82 3.2% 0.0% 

Endocrine System 2,501 100.0% 0.9% 

7913 Diabetes mellitus 1,217 48.7% 0.4% 

7903 Hypothyroidism 719 28.7% 0.3% 

7900 Hyperthyroidism 231 9.2% 0.1% 

7999 Endocrine system condition 96 3.8% 0.0% 

7915 Neoplasm, benign endocrine system 66 2.6% 0.0% 

Dental and Oral Conditions 1,533 100.0% 0.5% 

9905 Temporomandibular articulation, limited motion 678 44.2% 0.2% 

9999 Dental and oral conditions 426 27.8% 0.2% 

9904 Mandible, malunion of 256 16.7% 0.1% 

9913 Teeth, loss of, due to loss of body of maxilla or mandible 72 4.7% 0.0% 

9916 Maxilla, malunion or nonunion 39 2.5% 0.0% 

Hemic & Lymphatic Systems 1,032 100.0% 0.4% 

7715 Non-Hodgkin's lymphoma 258 25.0% 0.1% 

7700 Anemia, hypochromic-microcytic & megaloblastic 177 17.2% 0.1% 

7799 Hemic & lymphatic system condition 177 17.2% 0.1% 

7706 Splenectomy 141 13.7% 0.0% 

7709 Lymphoganulomatosis (Hodgkin's disease) 107 10.4% 0.0% 

Grand Total - All Body Systems 283,316 100.0% 100.0% 

Source: COIN CP-145 

25
Chapter 2 Business During FY 1999

By The 20 Disabilities Most Frequently Service-Connected 

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

diagnostic code) during fiscal year 1999. 

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 283,316 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 

17 most frequently service-connected disabilities (by diagnostic code) account for 49.7 percent 

of all service-connected disabilities established in fiscal year 1999. 

Disabilities Most Frequently Service-Connected 

For Veterans Who Began Receiving Compensation 

During Fiscal Year 1999 

Diagnostic 

Code 

Disability Total Percent 

Within System

FY 1999 

Percent of 

Total 

FY 1999 

Cumulative 

Percent 

FY 1999 

TOTAL NUMBER OF DISABILITIES IN FY 1999 283,316 100.0% 

5299 Skeletal conditions 17,200 14.4% 6.1% 6.1% 

7805 Scars, other11 13,162 38.4% 4.6% 10.7% 

5010 Arthritis, due to trauma 12,379 10.4% 4.4% 15.1% 

6260 Tinnitus 11,612 42.5% 4.1% 19.2% 

9411 Post-traumatic stress disorder 10,732 60.7% 3.8% 23.0% 

6100 Auditory, acuity impairment, 0% 10,301 37.7% 3.6% 26.6% 

5295 Lumbosacral strain 10,099 8.5% 3.6% 30.2% 

5257 Knee, other impairment of 8,820 7.4% 3.1% 33.3% 

5293 Intervertegral disc syndrome 7,002 5.9% 2.5% 35.8% 

7101 Hypertensive vascular disease 6,650 42.7% 2.3% 38.1% 

7336 Hemorrhoids, external or internal 6,143 32.6% 2.2% 40.3% 

5003 Arthritis, degenerative 5,838 4.9% 2.1% 42.3% 

5271 Ankle, limited motion of 4,977 4.2% 1.8% 44.1% 

7899 Skin condition 4,322 12.6% 1.5% 45.6% 

5284 Foot injuries, other 3,951 3.3% 1.4% 47.0% 

7800 Scars, disfiguring, head, face, neck 3,849 11.2% 1.4% 48.4% 

8100 Migraine 3,782 27.9% 1.3% 49.7% 

7806 Eczema 3,659 10.7% 1.3% 51.0% 

7122 Cold injury residuals 3,644 23.4% 1.3% 52.3% 

5099 Musculoskeletal condition 3,552 3.0% 1.3% 53.5% 

Source: COIN CP-145 

 

11 See footnote on page 23

26
Chapter 2 Business During FY 1999

f. Demographic Characteristics of Veterans with Service-Connected Disabilities 

The tables in this section present information about veterans with disabilities found serviceconnected on original claims during fiscal year 1999 in the following categories: 

 Age 

 Gender 

 Race 

 Period of Service 

 Branch of Service 

 Length of Service 

Most of the information in this segment is derived from the Rating Board Automation (RBA) 

Database in conjunction with data provided by the Defense Manpower Data Center (DMDC). 

Note: As available from DMDC, the following tables include comparable demographic 

information about military separations during fiscal year 1999. 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 fiscal 

year 1999 is shown below. Also shown is the age distribution of veterans discharged from 

active duty during fiscal year 1999. The age groups with the most veterans are 

highlighted in yellow.

Service Connected Compensation – By Age 

For Veterans Who Began Receiving Compensation 

During FY 1999 

Age Number of 

Veterans 

Percent of 

All Ages 

Number of 

Discharges 

in FY 1999 

Percent of 

Discharges 

in FY 1999 

Annual 

Payments1

Under 25 5,931 6.8% 108,718 47.6% $28,778,567 

25 - 35 19,967 22.8% 73,077 32.0% $96,884,445 

36 - 45 23,965 27.4% 38,511 16.9% $116,283,655 

46 - 55 20,706 23.7% 7,730 3.4% $100,470,242 

56 - 65 6,413 7.3% 303 0.1% $31,117,341 

66 - 75 6,097 7.0% 0 0.0% $29,584,037 

Over 75 4,305 4.9% 0 0.0% $20,888,843 

All Ages 87,384 100.0% 228,339 100.0% $424,007,130 

Source: COIN CP-127 

Source: Defense Manpower Data Center Activity Duty Loss Profile 

1

 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. 

27
Chapter 2 Business During FY 1999

 By Gender 

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

or not) during fiscal year 1999 based upon an original claim follows. Also shown is the 

gender distribution of veterans discharged from active duty during fiscal year 1999. 

Service-Connected Disability 

Original Claims Granted - By Gender 

During Fiscal Year 1999 

Female Male Total 

Percent of Original Claims Granted1 14.0% 86.0% 100.0% 

Percent of Veterans Discharged in FY 19992 16.3% 83.7% 100.0% 

1

Source: Rating Board Automation Database 

2

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

By Race 

The distribution by race of veterans granted service connection (whether compensable or 

not) during fiscal year 1999 based upon an original claim is shown in the following table. 

Also shown is the race distribution among veterans discharged from active duty during 

fiscal year 1999. 

Service-Connected Disability 

Original Claims Granted - By Race 

During Fiscal Year 1999 

Race Percent of 

Original Claims 

Granted1 

Percent of 

Veterans 

Discharged in 

Fiscal Year 19992 

White 66.5% 69.4% 

Black 21.2% 17.8% 

Hispanic 5.8% 7.4% 

Asian/Pacific Islander 3.7% 2.6% 

Other 1.6% 1.5% 

American Indian/Alaskan 0.9% 1.1% 

Race Unknown 0.3% 0.2% 

Total 100.0% 100.0% 

1

Source: Rating Board Automation Database 

2

Source: Defense Manpower Data Center "Active Duty Loss Profile" 

28
Chapter 2 Business During FY 1999

 By Period of Service 

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

connection (whether compensable or not) during fiscal year 1999 based upon an original 

claim. 

Service-Connected Disability 

Original Claims Granted - By Period Of Service12

During Fiscal Year 1999 

World 

War I 

World 

War II 

Korean 

War 

Vietnam 

Era 

Gulf War 

Era 

Total All 

Periods 

Percent 0.02% 2.0% 1.9% 18.8% 77.3% 100.0% 

Source: Rating Board Automation Database 

By Branch of Service 

The distribution by branch of service of veterans granted service connection (whether 

compensable or not) during fiscal year 1999 based upon an original claim is shown in the 

following table. Also shown is the branch of service distribution of veterans discharged 

from active duty during fiscal year 1999. 

Service-Connected Disability 

Original Claims Granted - By Branch Of Service 

During Fiscal Year 1999 

Branch Percent of 

Original Claims 

Granted 

Percent of 

Veterans 

Discharged in 

Fiscal Year 1999

Army 41.9% 35.4% 

Navy 24.3% 27.6% 

Air Force 20.2% 20.0% 

Marines 11.9% 15.3% 

Coast Guard 1.3% 1.8% 

Other1 0.3% Unknown 

Total 100.0% 100.0% 

Source: Rating Board Automation Database 

Source: Defenses Manpower Data Center “Active Duty Separations” Report 

1

Other includes Philippine Commonwealth Army, Philippine Guerilla and Combination 

Service, Merchant Marines, US Public Health Service, Air National Guard, Army Air 

Corps, and Army National Guard 

 

12 These data do not include designations of Peacetime service.

29
Chapter 2 Business During FY 1999

By Length of Service 

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

connection (whether compensable or not) during fiscal year 1999 based upon an original 

claim. Also shown is the length of service distribution of veterans discharged from active 

duty during fiscal year 1999. The most frequent are highlighted in yellow. 

Service-Connected Disability 

Original Claims Granted - By Length Of Service 

During Fiscal Year 1999 

Years of 

Service 

Percent of 

Original Claims 

Granted1 

Percent of 

Veterans 

Discharged in 

Fiscal Year 19992 

Less than 1 5.1% 15.2% 

1 - 4 25.7% 39.7% 

5 - 9 18.9% 19.1% 

10 - 14 10.0% 6.9% 

15 - 19 6.9% 2.6% 

20 - 24 20.4% 14.4% 

25 - 29 3.5% 1.5% 

30 - 34 2.0% 0.6% 

35 - 39 0.9% 0.0% 

40 and Over 6.4% N/A 

Total 100.0% 100.0% 

1

Source: Rating Board Automation Database 

2

Source: Defense Manpower Data Center "Active Duty Loss Profile" 

g. Original and Subsequent Claims 

An “original” claim is the first application submitted by a veteran. Any single application may 

be a claim for service connection for multiple disabilities. 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 claims” in this report. The 

following table shows the number of “original” and “subsequent” claims received and 

completed during fiscal year 1999. 

 

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. 

30
Chapter 2 Business During FY 1999

Original and Subsequent Disability Compensation Claims 

During Fiscal Year 1999 

Type of Claim Number 

Received 

Percent of 

Grand Total 

Received 

Number 

Completed 

Percent of 

Grand Total 

Completed 

Original Compensation - 1 to 7 Issues 99,752 21.3% 90,359 19.7% 

Original Compensation - 8 or More Issues 23,590 5.0% 23,241 5.1% 

TOTAL 123,342 26.3% 113,600 24.8% 

Subsequent Compensation 344,831 73.7% 344,003 75.2% 

GRAND TOTAL 468,173 100.0% 457,603 100.0% 

Source: COIN DOOR 1001 Sept 1999 

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. 

Service-Connected Disability 

Grants and Denials By

Individual Disabilities Claimed 

During Fiscal Year 1999 

Percent 

Grants 49.4% 

Denials 50.6% 

Total 100.0% 

Source: Rating Board Automation Database 

31
Chapter 2 Business During FY 1999

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. The highest percent is highlighted in yellow.

Service-Connected Disability 

Grants By Individual Disability 

During Fiscal Year 1999 

Disability Percent Percent Granted 

0% 57.6% 

10% 32.7% 

20% 3.7% 

30% 3.0% 

40% 0.6% 

50% 0.8% 

60% 0.3% 

70% 0.2% 

80% 0.0% 

90% 0.0% 

100% 0.9% 

Total 100.0% 

Source: Rating Board Automation Database 

By Claim 

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

Note: Veterans may claim more than one disability in an application for compensation. 

Information in the table reflects three categories of claims outcomes for original claims - all 

claimed disabilities were found service-connected (granted); all claimed disabilities were 

found not service-connected (denied); or some combination of granted and denied. 

Service-Connected Disability 

Original Claims Granted or Denied 

During Fiscal Year 1999 

Percent 

Veterans Who Had All Issues Claimed Granted 16.7% 

Veterans Who Had All Issues Claimed Denied 28.8% 

Veterans Who Had A Combination of Issues Granted and Denied 54.5% 

Total 100.0% 

Source: Rating Board Automation Database 

32
Chapter 2 Business During FY 1999

 2. COMPENSATION - BASED UPON SERVICE-CONNECTED DEATH

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

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

and/or dependent parents of the following: 

 Servicemembers 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; and 

 Veterans who die with service-connected disabilities that were rated 100 percent 

disabling for at least 10 years immediately preceding death (or at least five years from 

the date of discharge to the date of death). 

The law governing the payment structure of DIC for surviving spouses was changed 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 

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 1999 

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 1999. 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 1999 

Type of Benefit Number Percent of 

Total 

Total 

Annual Amounts 

Average 

Annual Amounts

Surviving Spouses 14,524 85.2% $167,710,810 $11,547 

Surviving Children 2,287 13.4% $8,022,176 $3,508 

Surviving Parents 242 1.4% $546,611 $2,259 

TOTAL 17,053 100.0% $176,279,596 $10,337 

Source: COIN CP-127 

33
Chapter 2 Business During FY 1999

b. Demographic Characteristics of Beneficiaries Who Began Receiving DIC during 

Fiscal Year 1999 

The following tables present information in the following categories about beneficiaries 

who began receiving DIC benefits during fiscal year 1999: 

 Relationship 

 Age (of surviving spouses and children) 

 Marital status (of surviving parents) 

By Relationship to the Veteran 

New DIC beneficiaries by their relationship to the veteran (i.e., spouse, child, or dependent 

parent), are shown. 

Beneficiaries Who Began Receiving DIC 

by Relationship 

During Fiscal Year 1999 

Surviving 

Spouse 

Children Parent Total 

Beneficiaries 

Number 14,524 2,287 242 17,053 

Percent 85.2% 13.4% 1.4% 100.0% 

Source: COIN CP-127 

34
Chapter 2 Business During FY 1999

By Age of Surviving Spouse 

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

largest age group is highlighted in yellow. 

Surviving Spouses Who Began Receiving DIC 

by Age 

During Fiscal Year 1999 

Age Number Percent of All 

Ages 

Annual 

Payments 

Under Age 25 113 0.8% $1,260,665 

25 - 35 371 2.6% $4,107,228 

36 - 45 1,207 8.3% $13,706,016 

46 - 55 2,466 17.0% $28,176,570 

56 - 65 2,876 19.8% $33,085,274 

66 - 75 4,268 29.4% $49,639,170 

Over 75 3,223 22.2% $37,735,886 

All Ages 14,524 100.0% $167,710,810 

Source: COIN CP 127 

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 of incapacity for self 

support. 

Children Who Began Receiving DIC 

by Age 

During Fiscal Year 1999 

Under Age 181 Age 18 and 

Over in School

Age 18 and Over 

and Helpless 

Total All 

Categories 

Number 587 1498 202 2,287 

Percent 25.7% 65.5% 8.8% 100.0% 

Annual Payments $2,815,782 $4,076,058 $1,130,335 $8,022,176 

Source: COIN CP-127 

1 Includes 288 consolidated awards that account for more than one child. 

35
Chapter 2 Business During FY 1999

By Marital Status of Surviving Parents 

The marital status of a surviving parent determines the formula applied in arriving at the 

DIC benefit amount. 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 

 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 1999 

No 

Spouse 

Spouse Apart Together Remarried Total 

Number 166 4 37 33 2 242 

Percent 68.6% 1.7% 15.3% 13.6% 0.8% 100.0% 

Annual Payments $436,208 $6,557 $68,110 $33,015 $2,722 $546,611 

Source: COIN CP-127 

 3. PENSION - BASED UPON NONSERVICE-CONNECTED DISABILITY 

a. Veterans Who Began Receiving Disability Pension During Fiscal Year 1999 

The number of veterans added to the disability pension rolls during fiscal year 1999 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. 

36
Chapter 2 Business During FY 1999

Veterans Who Began Receiving Disability Pension 

By Program 

During Fiscal Year 1999 

Type of Pension Number of 

Veterans 

Percent of 

Total 

Total Annual 

Amounts 

Average Annual 

Amounts 

PL 95-588 - New Law Pension 46,457 99.9% $293,191,985 $6,311 

Other Pension Programs 65 0.1% $90,090 $1,386 

TOTAL 46,522 100.0% $293,282,075 $6,304 

Source: COIN CP-103 

b. Demographic Characteristics of Veterans Who Began Receiving Disability Pension 

 During Fiscal Year 1999 

By Age 

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

1999 follows. The total annual amount of disability pension payments for each age group 

is shown in the last column of the table. 

For each category of pension, the yellow highlighted boxes indicate the age group with the 

most veteran beneficiaries. 

Veterans Who Began Receiving Disability Pension 

By Age 

During Fiscal Year 1999 

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% 28 0.1% 28 0.1% $176,709 

25 - 35 0 0.0% 308 0.7% 308 0.7% $1,943,800 

36 - 45 1 1.5% 2670 5.7% 2671 5.7% $16,851,863 

46 - 55 2 3.1% 14,920 32.1% 14,922 32.1% $94,163,489 

56 - 65 0 0.0% 5459 11.8% 5,459 11.7% $34,451,967 

66 - 75 19 29.2% 11,370 24.5% 11,389 24.5% $71,782,859 

Over 75 43 66.2% 11,702 25.2% 11,745 25.2% $73,911,388 

All Ages 65 100.0% 46,457 100.0% 46522 100.0% $293,282,075 

Source: COIN CP-103 

1

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

37
Chapter 2 Business During FY 1999

 4. PENSION - BASED UPON NONSERVICE-CONNECTED DEATH 

a. Beneficiaries Who Began Receiving Death Pension During Fiscal Year 1999 

The number of beneficiaries added to the death pension rolls during fiscal year 1999 is shown 

in the next table. 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 show that 

they continuously met eligibility criteria from date of termination to the present. 

Surviving Spouses Who Began Receiving Death Pension 

By Program 

During Fiscal Year 1999 

Type of Pension Number of 

Surviving 

Spouses 

Percent of 

Total 

Total Annual 

Amounts 

Average Annual 

Amounts 

PL 95-588 - New Law Pension 22,605 99.8% $71,477,010 $3,162 

Other Pension Programs 48 0.2% $34,272 $714 

TOTAL 22,653 100.0% $71,511,282 $3,157 

Source: COIN CP-103 

b. Demographic Characteristics of Surviving Spouses Who Began Receiving Death 

 Pension during Fiscal Year 1999 

By Age 

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

pension in fiscal year 1999 by age groups. The total annual amount of death pension 

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

38
Chapter 2 Business During FY 1999

Surviving Spouses Who Began Receiving Death Pension 

By Age 

During Fiscal Year 1999 

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% 190 0.8% 190 0.8% $600,780 

25 - 35 0 0.0% 90 0.4% 90 0.4% $284,580 

36 - 45 0 0.0% 757 3.3% 757 3.3% $2,393,634 

46 - 55 0 0.0% 2,792 12.4% 2,792 12.3% $8,828,304 

56 - 65 9 18.8% 3,840 17.0% 3,849 17.0% $12,148,506 

66 - 75 4 8.3% 5,313 23.5% 5,317 23.5% $16,802,562 

Over 75 33 68.8% 9,623 42.6% 9,656 42.6% $30,451,488 

Unknown 2 4.2% 0 0.0% 2 0.0% $1,428 

All Ages 48 100.0% 22,605 100.0% 22,653 100.0% $71,511,282 

Source: COIN CP-103 

1

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

 5. EDUCATION 

a. Beneficiaries Who Began Receiving Education Benefits During Fiscal Year 1999 

The number of veterans and dependents that began receiving education benefits for the first 

time during fiscal year 1999 is shown in the following table. 

Beneficiaries Who Began Receiving Education Benefits 

During Fiscal Year 1999 

Program Number of 

Beneficiaries 

Percent 

of Total 

Dependents Education 13,029 12.2% 

Montgomery GI Bill - Active Duty1 74,200 69.5% 

Montgomery GI Bill – Reserves2 19,120 17.9% 

Post-Vietnam Veterans Education 349 0.3% 

Total 106,698 100.0% 

Source: Education Service SAS Reports 

1

 Based on Active Duty service 

2

 Based on service in the Selected Reserve 

39
Chapter 2 Business During FY 1999

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 1999 follows. The most frequent 

type of training and the program with the largest enrollment are highlighted in yellow. 

Beneficiaries Who Began Receiving Education Benefits 

By Type Of Training and Program 

During Fiscal Year 1999 

Education Program College, 

Non-Degree

Graduate UnderGraduateVocational/ 

Technical 

Program

Totals 

Percent 

of All 

Programs

Dependents Education 147 243 9,718 2,921 13,029 12.2% 

Montgomery GI Bill - Active Duty1 1,888 3,312 62,046 6,954 74,200 69.5% 

Montgomery GI Bill – Reserves2 270 711 17,608 531 19,120 17.9% 

Post-Vietnam Veterans Education 11 55 245 38 349 0.3% 

Type Training Totals 2,316 4,321 89,617 10,444 106,698 100.0% 

Percent of Program Totals 2.2% 4.0% 84.0% 9.8% 

Source: Education Service SAS Reports 

1

 Based on Active Duty service 

2

 Based on service in the Selected Reserve 

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 

1999. The most frequent training time and the program with the largest enrollment are 

highlighted in yellow. 

Beneficiaries Who Began Receiving Education Benefits 

By Training Time and Program 

During Fiscal Year 1999 

Education Program Less Than 

One-Half 

Time 

Half 

Time 

Three 

Quarter 

Time 

Full 

Time 

Program

Totals 

Percent 

of All 

Programs

Dependents Education 1,546 1,547 1,688 8,248 13,029 12.2% 

Montgomery GI Bill - Active Duty1 5,535 12,636 9,327 46,702 74,200 69.5% 

Montgomery GI Bill – Reserves2 980 2,278 2,045 13,817 19,120 17.9% 

Post-Vietnam Veterans Education 42 77 62 168 349 0.3% 

Training Time Totals 8,103 16,538 13,122 68,935 106,698 100.0% 

Percent of Program Totals 7.6% 15.5% 12.3% 64.6% 

Source: Education Service SAS Reports 

1

 Based on Active Duty service 

2

 Based on service in the Selected Reserve 

40
Chapter 2 Business During FY 1999

 6. LIFE INSURANCE 

a. Coverage Established During Fiscal Year 1999

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

are: 

 Service-Disabled Veterans Insurance (SDVI) 

 Servicemembers’ Group Life Insurance (SGLI) 

 Veterans’ Mortgage Life Insurance (VMLI) 

 Veterans’ Group Life Insurance (VGLI) 

The following table identifies the number of new policies issued during fiscal year 1999, the 

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

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 dividends to purchase “paid up additions” to the policy. 

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

The actual number of servicemembers who enrolled in SGLI in fiscal year 1999 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 1999. 

New Insurance Coverage Issued 

During Fiscal Year 1999 

Insurance Number of 

People Insured 

Total 

Coverage Amount 

Average 

Face Value 

Maximum 

Face Value 

VMLI1 209 $15,554,691 $74,424 $90,000 

SDVI2 5,221 $60,550,500 $11,597 $10,0003 

VGLI4 29,651 $3,790,875,000 $127,850 $200,000 

SGLI5 233,272 $43,288,875,712 $185,573 $200,000 

TOTAL 268,353 $47,155,855,903 $175,723 

1

 Source: VMLI Quarterly Report 

2

 Source: 510 Monthly Report 

3 Additional coverage, up to $20,000, is available for totally disabled policyholders. 1,162 new Supplemental SDVI policies were issued. 

4 Source: OSGLI Monthly Report. VGLI data is for the policy year ending June 30, 1999. 

5 Estimates based upon accessions to Active Duty and Reserve forces in FY99. 

 Data on accessions from Defense Manpower Data Center. 

41
Chapter 2 Business During FY 1999

b. Insurance Payments Made During Fiscal Year 1999

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 1999. 

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

See page 66 of this report concerning “Benefits That Ended During Fiscal Year 1999” for data 

in these categories of payments. 

Insurance Payments Made 

During Fiscal Year 1999 

Dividends Number1 Amount2 Average Payment

USGLI 19,660 $3,731,313 $190 

NSLI 1,906,825 $632,132,671 $332 

VSLI 240,394 $100,855,349 $420 

VRI 87,590 $24,286,980 $277 

TOTAL 2,254,469 $761,006,313 $338 

Loans Number3,4 Amount5 Average Payment

USGLI 76 $152,000 $1,987 

NSLI 17,775 $75,404,000 $4,242 

VSLI 3,916 $13,745,000 $3,510 

VRI 887 $3,937,000 $4,437 

SDVI 9,193 $8,529,000 $928 

TOTAL 31,848 $101,767,000 $3,195 

Disability Number6 Amount7 Average Payment

USGLI 114 $67,554 $593 

NSLI 20,846 $23,456,647 $1,125 

VSLI 3,377 $4,852,013 $1,437 

VRI 1,023 $763,449 $746 

TOTAL 25,360 $29,139,663 $1,149 

GRAND TOTAL 2,311,677 $891,912,976 $386 

1

 Source: Insurance Statistical Report - 700 

2

 Source: Fiscal Year 1999 Statement of Cash Flows 

3

 Source: Program numbers are an estimate based on a sample of loans from SQC in FY99 and a percent 

 of the total. 

4

 Source: Program totals are from the COIN 84 and Philadelphia MTC Records Report - 155 

5

 Source: Statement of Financial Condition Report 

6

 Source: 510 Monthly Report 

7

 Source: CFO FY99 Life Insurance Statements (Incurred Basis) 

42
Chapter 2 Business During FY 1999

 7. HOME LOAN GUARANTY

a. Total Loans Guaranteed 

The following table shows the number of home loans guaranteed during fiscal year 1999, the 

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

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. 

Loans Guaranteed During Fiscal Year 1999 

Number of 

Loans 

Total Loan 

Amount 

Average Loan 

Amount 

Total Guaranty 

Amount 

Average 

Guaranty 

Amount 

TOTAL 485,610 $54,087,681,042 $111,381 $16,659,542,752 $34,306 

Source: LGY SAS act3type 

b. Types of Loans Guaranteed during Fiscal Year 1999 

Note: The three types of loans displayed 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. 

Loans Guaranteed During Fiscal Year 1999 

Based On Purchase Loan Versus Refinance Loans 

Type of Loan Number 

of Loans 

Percent 

of Total 

Total Loan 

Amount 

Average 

Loan 

Amount 

Total Guaranty 

Amount 

Average 

Guaranty 

Amount 

Purchase Loans 257,665 53.1% $29,814,895,348 $115,712 $9,092,448,819 $35,288 

Refinance – 

Interest Rate Reduction 

214,775 44.2% $22,927,158,013 $106,750 $7,148,409,077 $33,283 

Refinance - 

Other Reasons 

13,170 2.7% $1,345,627,681 $102,174 $418,684,856 $31,791 

TOTAL 485,610 100.0% $54,087,681,042 $111,381 $16,659,542,752 $34,306 

Source: LGY SAS act3type 

43
Chapter 2 Business During FY 1999

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

Information concerning programs designed to provide housing assistance grants to seriously 

disabled veterans and direct loans to Native American veterans follows. 

Specially Adapted Housing Grants And Direct Loans 

During Fiscal Year 1999 

Programs Number of 

Grants/Loans 

Amount of 

Grants/Loans 

Average Grant/Loan 

Amount 

Specially Adapted Housing Grants 451 $19,393,000 $43,000 

Special Housing Adaptation Grants 59 $486,000 $8,250 

TOTAL 510 $19,879,000 $38,978 

Direct Loans to Native Americans1 16 $1,879,000 $117,438 

GRAND TOTAL 526 $21,758,000 $41,365 

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 by whether a down 

payment was involved in the loan. 

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

eligible people13) to enter the home-buying market. The “no down-payment” feature is 

intended to enhance a veteran’s ability to purchase a home. As indicated, this option was 

used in over 90 percent of the loans guaranteed. 

Purchase Loans Guaranteed During Fiscal Year 1999 

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 233,471 90.6% $26,654,121,460 $114,165 $8,187,988,099 $35,071 

Down-payment 24,194 9.4% $3,160,773,888 $130,643 $904,456,720 $37,384 

TOTAL 257,665 100.0% $29,814,895,348 $115,712 $9,092,444,819 $35,288 

Source: LGY SAS dnpmtavg 

 

13 Servicemembers, reservists, surviving spouses, and spouses of POW/MIA servicemembers are also eligible under certain circumstances.

44
Chapter 2 Business During FY 1999

By “First Time 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 1999 

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 

134,255 52.1% $14,852,271,299 $110,627 $4,678,723,120 $34,850 

Previous 

Homeowner 

123,410 47.9% $14,962,624,049 $121,243 $4,413,721,699 $35,765 

TOTAL 257,665 100.0% $29,814,895,348 $115,712 $9,092,444,819 $35,288 

Source: LGY SAS FTBUYAVG 

45
Chapter 2 Business During FY 1999

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 1999 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 9. The following table is subdivided into two parts - 

entitlements for veterans and other entitlement categories. The largest amounts by 

category are highlighted in yellow. 

Loans Guaranteed During Fiscal Year 1999 

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 3,119 0.6% $265,806,510 $85,222 $91,713,228 $29,405 

Post-World War II 379 0.1% $35,008,187 $92,370 $11,731,210 $30,953 

Korean War 3,852 0.8% $348,590,822 $90,496 $117,265,677 $30,443 

Post-Korean War 8,919 1.8% $873,878,711 $97,979 $282,357,246 $31,658 

Vietnam Era 61,316 12.6% $6,262,883,835 $102,141 $1,988,214,141 $32,426 

Post-Vietnam Era 99,915 20.6% $10,959,819,319 $109,691 $3,417,207,256 $34,201 

Gulf War Era 84,530 17.4% $9,146,199,119 $108,201 $2,896,714,271 $34,268 

Restored Entitlement1 145,957 30.1% $17,337,852,728 $118,787 $5,127,019,123 $35,127 

TOTAL 407,987 84.0% $45,230,039,231 $110,861 $13,932,222,152 $34,149 

Service Personnel 61,271 12.6% $7,021,414,233 $114,596 $2,157,452,490 $35,212 

Reservists 15,174 3.1% $1,727,597,933 $113,853 $533,250,896 $35,142 

Unremarried Survivor 1,153 0.2% $106,106,163 $92,026 $35,847,092 $31,090 

Spouse of POW 25 0.0% $2,523,482 $100,939 $766,122 $30,645 

TOTAL 77,623 16.0% $8,857,641,811 $114,111 $2,727,316,600 $35,135 

GRAND TOTAL 485,610 100.0% $54,087,681,042 $111,381 $16,659,538,752 $34,306 

Source: LGY SAS ENTLAVGS using ACTSEPT99 Workfile 

1

 Based on when the loan was made 

46
Chapter 2 Business During FY 1999

By Income 

The next table shows the distribution of purchase loans guaranteed during fiscal year 1999 

by the annual income of the eligible borrower. The highest number of loans is highlighted 

in yellow.

Purchase Loans Guaranteed During Fiscal Year 1999 

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 16,001 6.2% $1,135,841,316 $70,986 $441,279,202 $27,578 $2,312 

$25,000 to $34,999 43,569 16.9% $3,781,217,772 $86,787 $1,370,517,044 $31,456 $2,954 

$35,000 to $44,999 57,096 22.2% $5,896,148,805 $103,267 $1,936,316,455 $33,913 $3,684 

$45,000 to $54,999 51,862 20.1% $6,164,610,222 $118,866 $1,856,949,291 $35,806 $4,501 

$55,000 to $64,999 37,882 14.7% $5,025,415,402 $132,660 $1,419,699,281 $37,477 $5,501 

$65,000 to $74,999 23,131 9.0% $3,341,401,601 $144,456 $904,598,524 $39,108 $6,928 

$75,000 and over 28,113 10.9% $4,469,072,079 $158,968 $1,162,748,469 $41,360 $9,785 

TOTAL1 257,654 100.0% $29,813,707,197 $115,712 $9,092,108,266 $35,288 $4,501 

Average Income: $ 50,536 

Median Income: $ 47,232 

Median Loan: $111,839 

Source: LGY SAS Incommed 

1 Note: Eleven purchase loans made in FY 1999 did not contain any 

By Age 

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

The highest number of loans is highlighted in yellow. 

Home Loans Guaranteed During Fiscal Year 1999 

Based On Age 

Age Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average 

Loan 

Amount 

Total Guaranty 

Amount 

Average 

Guaranty 

Amount 

18 - 25 11,988 2.5% $1,096,613,817 $91,476 $381,657,685 $31,837 

26 - 35 148,699 30.6% $16,626,664,964 $111,814 $5,176,090,956 $34,809 

36 - 45 154,932 31.9% $18,031,376,326 $116,383 $5,445,396,868 $35,147 

46 - 55 112,317 23.1% $12,560,338,213 $111,829 $3,817,714,329 $33,991 

56 - 65 38,294 7.9% $4,007,199,620 $104,643 $1,249,362,448 $32,626 

Over 65 19,380 4.0% $1,765,488,102 $91,098 $589,316,466 $30,408 

TOTAL 485,610 100.0% $54,087,681,042 $111,381 $16,659,538,752 $34,306 

Average overall age: 42.1 

Source: LGY SAS agevet2 

47
Chapter 2 Business During FY 1999

By Race 

Providing race information on the application for a purchase loan is voluntary. About 80 

percent of borrowers provided race information during fiscal year 1999. The race 

demographics presented in the following table show the distribution among the 80 percent 

who provided that information. 

Purchase Loans Guaranteed During Fiscal Year 1999 

Based On Known Racial Codes 

Race Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average 

Loan 

Amount 

Total Guaranty 

Amount 

Average

Guaranty

Amount

White 305,690 78.7% $33,892,342,907 $110,872 $10,474,244,142 $34,264 

Black 52,936 13.6% $5,813,416,517 $109,820 $1,806,834,910 $34,132 

Hispanic 21,419 5.5% $2,364,701,550 $110,402 $732,049,761 $34,178 

Native American 2,390 0.6% $262,287,879 $109,744 $81,397,989 $34,058 

Asian 5,853 1.5% $776,045,944 $132,589 $219,196,138 $37,450 

TOTAL 388,288 100.0% $43,108,794,797 $111,023 $13,313,722,940 $34,288 

Source: LGY SAS Raceavgs 

48
Chapter 2 Business During FY 1999

 8. VOCATIONAL REHABILITATION AND EMPLOYMENT 

a. VR&E Program Participants during Fiscal Year 1999 

The total number of eligible persons who participated in the Vocational Rehabilitation training 

program during fiscal year 1999 is shown in the next table. The numbers of participants 

reported in the table are not limited to “new business,” i.e., those who began their rehabilitation 

program during fiscal year 1999. Participants who entered the program during prior fiscal 

years are also included. 

Veterans Participating In The 

Vocational Rehabilitation Programs 

During Fiscal Year 1999 

Program Number Percent 

Service-Connected Veterans (Chapter 31) 51,936 99.93% 

Pension Recipients (Chapter 15) 8 0.02% 

Vietnam Veterans' Children With Spina Bifida (Chapter 18) 29 0.06% 

Total 51,973 100.0% 

Sources: VR&E Program Management Reports (FY 1999) and Regional Office Reports 

b. Rehabilitation of Veterans with Service-Connected Disabilities 

(Chapter 31 Benefits)

The mission of the VR&E program is to provide services to veterans whose service-connected 

disabilities prevent or impair their ability to obtain and/or maintain suitable employment and 

independence in daily living. Five general steps are involved in the rehabilitative process: 

Step 1. Application for the benefit 

Step 2. Evaluation to determine entitlement 

Step 3. Development of a plan for a specific occupational goal (or independence in 

 daily living) 

Step 4. Providing rehabilitation services to prepare for employment (case 

 management, counseling, subsistence allowance for training) 

Step 5. Employment services 

The following subsections provide information about veterans who participated in each of the 

steps during fiscal year 1999. 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. 

49
Chapter 2 Business During FY 1999

Step 1: Applicants for a Program of Rehabilitation Services 

A total of 61,096 veterans applied for rehabilitation services during fiscal year 1999. 

The following three tables show demographic characteristics of the veterans who applied. 

Yellow highlight notes the highest group in each table. 

By Combined Degree of Service-Connected Disability 

The distribution by combined degree of service-connected disabilities among veterans 

who applied for VR&E services in fiscal year 1999 is shown first. The “Other” category 

includes applicants with non-compensable service-connected disabilities or nonserviceconnected disabilities. (e.g., disabilities were not found to be service connected; 

disabilities were service connected but not so disabling as to allow payment of 

compensation; or no application for service connection was made). If no rating was 

previously done, a “memorandum rating” is required, solely for the purpose of determining 

vocational rehabilitation entitlement on the basis of service-connected disability level. 

Applicants For Vocational Training 

By Combined Degree Of Disability 

During Fiscal Year 1999 

0% 10% 20% 30% 40% 50% 60% 

Number 136 7,665 12,256 11,264 7,356 4,223 3,182 

Percent 0.2% 12.5% 20.1% 18.4% 12.0% 6.9% 5.2% 

70% 80% 90% 100% Other1 Total 

Number 1,834 835 310 2,440 9,595 61,096 

Percent 3.0% 1.4% 0.5% 4.0% 15.7% 100.0% 

Source: VR&E Program Management Reports (FY 1999) and Disability Compensation Database 

1

 Other contains cases not rated and memo ratings 

By Gender 

Applicants For Vocational Training 

By Gender 

During Fiscal Year 1999 

Female Male Total1 

Number 9,301 51,793 61,094 

Percent 15.2% 84.8% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Two records had no gender identification. 

50
Chapter 2 Business During FY 1999

By Age 

Applicants For Vocational Training 

By Age 

During Fiscal Year 1999 

Age 

17 - 21 

Age 

22 - 29 

Age 

30 - 39 

Age 

40 - 49 

Age 

50 - 59 

Age 

60 > 

Total For 

All Ages1 

Number 1,216 11,394 15,893 19,905 10,157 2,528 61,093 

Percent 2.0% 18.7% 26.0% 32.6% 16.6% 4.1% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Three records had no age information. 

Step 2: Evaluation for Entitlement for a Program of Rehabilitation Services 

Once basic eligibility is established, veterans are provided a comprehensive rehabilitation 

evaluation. The purposes of the evaluation are: to fully assess the veteran’s aptitudes, 

interests and abilities; to determine whether the veteran’s disabilities cause an employment 

handicap; and, if a handicap exists, to determine the veteran’s rehabilitation needs and the 

feasibility of achieving a vocational goal. 

A total of 31,448 veterans (51.5 percent of those who applied) were found to be entitled to 

rehabilitation services in fiscal year 1999. The following tables provide demographic data for 

veterans found to be entitled to rehabilitation services during fiscal year 1999. Yellow highlight 

notes the highest group in each table. 

By Combined Degree of Service-Connected Disability 

Note: As previously noted, the “Other” category includes applicants with 

non-compensable service-connected disabilities or nonservice-connected disabilities. 

Veterans Entitled to Vocational Training 

By Combined Degree Of Disability 

During Fiscal Year 1999 

0% 10% 20% 30% 40% 50% 60% 

Number 8 1,266 6,571 6,504 5,322 3,279 2,934 

Percent 0.0% 4.0% 20.9% 20.7% 16.9% 10.4% 9.3% 

70% 80% 90% 100% Other1 Total 

Number 1,801 982 376 1,811 594 31,448 

Percent 5.7% 3.1% 1.2% 5.8% 1.9% 100.0% 

Source: VR&E Program Management Reports (FY 1999) and Disability Compensation Database 

1

 Other contains cases not rated and memo ratings. 

51
Chapter 2 Business During FY 1999

By Gender 

Veterans Entitled to Vocational Training 

By Gender 

During Fiscal Year 1999 

Female Male Total 

Number 5,311 26,137 31,448 

Percent 16.9% 83.1% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

By Age 

Veterans Entitled to Vocational Training 

By Age 

During Fiscal Year 1999 

Age 

17 - 21 

Age 

22 - 29 

Age 

30 - 39 

Age 

40 - 49 

Age 

50 - 59 

Age 

60 > 

Total For 

All Ages 

Number 303 5,968 9,222 10,419 4,792 744 31,448 

Percent 1.0% 19.0% 29.3% 33.1% 15.2% 2.4% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

By Period of Service 

Veterans Entitled to Vocational Training 

By Period Of Service 

During Fiscal Year 1999 

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 89 14 79 289 3,706 7,257 20,014 31,448 

Percent 0.3% 0.0% 0.3% 0.9% 11.8% 23.1% 63.6% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 These three periods are generally combined into "Peacetime" service in other sections of this report. 

52
Chapter 2 Business During FY 1999

By Serious Employment Handicap 

A “serious employment handicap” is a significant impairment, caused in part by a serviceconnected disability, in the veterans’ ability to prepare for, obtain, or retain employment 

consistent with their abilities, aptitudes, and interests.

Veterans Entitled to Vocational Training 

With A Serious Employment Handicap 

During Fiscal Year 1999 

Number Percent 

Total Veterans 31,448 

Total With Serious Employment Handicap 12,086 38% 

Source: VR&E Program Management Reports (FY 1999) 

Step 3: Planning a Program of Rehabilitation Services 

Once eligibility is established, the veteran and a vocational rehabilitation counselor or 

counseling psychologist partner to develop an individualized plan of services. The plan is 

designed to lead either to employment in a suitable occupation or to independence in daily 

living, if suitable gainful employment is not feasible due to the veteran’s disability limitations. 

The following table identifies the number of veterans for whom individualized rehabilitation 

plans were completed during fiscal year 1999. 

Veterans Participating In A 

Vocational Training Program 

Number Of Training Plans Developed 

During Fiscal Year 1999 

Total Participants1 51,936 

Training Plans Developed2 21,484 

Percent Of Training Plans 41% 

1

Source: VR&E Program Management Reports (FY 1999) 

2

Source: COIN TAR 6001 

Step 4: Participating in a Program of Rehabilitation Services 

Following completion of a rehabilitation service plan, the veteran enters a rehabilitation 

program to prepare for the planned occupational goal or independent living. The rehabilitation 

program may include training programs or other types of services. The length of training 

varies with the individual rehabilitation plan. The average time spent in the rehabilitation 

program is approximately two-and-a-half years. 

53
Chapter 2 Business During FY 1999

A total of 51,936 veterans actively participated in training programs during fiscal year 1999. 

These veterans received subsistence allowance payments during their training programs. 

Note: The number of trainees cited above, 51,936, does not equal the number of applicants 

and the number of veterans found to be entitled to services during fiscal year 1999. This is 

because most training programs last more than one year. The 51,936 includes not only 

veterans who began their program during fiscal year 1999, but also those who began their 

program in previous years and continued in the program during fiscal year 1999. 

Type Of Occupational Goals and Training Activities of Veterans Who Participated In A 

Training Program 

This section provides data relating to occupational goals and training activities of veterans who 

participated in vocational training during fiscal year 1999. 

By Occupational Goals 

The following table shows occupational goals of veterans who participated in a training 

program, by gender.

Veterans Participating In A Vocational Training Program 

By Occupational Goal 

During Fiscal Year 1999 

Total 

Number

Percent

of Total

Number 

of Male 

Percent 

of Total 

Number 

of Female

Percent 

of Total 

Agricultural, Fishery and Forestry 131 0.3% 109 0.3% 22 0.2% 

Benchwork 398 0.8% 383 0.9% 15 0.1% 

Clerical 2,669 5.1% 1,913 4.6% 756 7.3% 

Independent Living 358 0.7% 312 0.8% 46 0.4% 

Machine Trades 1,188 2.3% 1,163 2.8% 25 0.2% 

Miscellaneous 1,424 2.7% 1,223 2.9% 201 1.9% 

Processing (Butcher, Meat Processor, etc.) 39 0.1% 32 0.1% 7 0.1% 

Professional, Technical, and Managerial 42,166 81.2% 33,210 80.0% 8,956 86.1% 

Sales 379 0.7% 317 0.8% 62 0.6% 

Service 1,156 2.2% 939 2.3% 217 2.1% 

Structural (Building Trades) 1,625 3.1% 1,585 3.8% 40 0.4% 

Unknown/Other 403 0.8% 351 0.8% 52 0.5% 

Total 51,936 100.0% 41,537 100% 10,399 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

54
Chapter 2 Business During FY 1999

By Type of Training Activity 

The next table shows the types of training activities for veterans who participated in a 

training program, by gender. 

Veterans Participating In A Vocational Training Program 

By Type Of Training And Gender 

During Fiscal Year 1999 

Type Of Training Total 

Number 

Percent of

Total 

Number of

Male 

Percent of

Total 

Number of 

Female 

Percent of

Total 

Undergraduate 43,398 83.6% 34,179 82.3% 9,219 88.7% 

Vocational/Technical 4,328 8.3% 3,833 9.2% 495 4.8% 

Graduate 1,865 3.6% 1,415 3.4% 450 4.3% 

College, Non-Degree 1,041 2.0% 926 2.2% 115 1.1% 

Extend. Eval/Indep. Living 627 1.2% 570 1.4% 57 0.5% 

On The Job 273 0.5% 259 0.6% 14 0.1% 

Eval/Improv. Rehab. Pot. 112 0.2% 100 0.2% 12 0.1% 

High School 69 0.1% 63 0.2% 6 0.1% 

Non/Nominal Pay in Govt. 123 0.2% 97 0.2% 26 0.3% 

Govt. Work Experience 0 0.0% 0 0.0% 0 0.0% 

Apprenticeship 91 0.2% 86 0.2% 5 0.0% 

Farm Co-op 9 0.0% 9 0.0% 0 0.0% 

Total 51,936 100.0% 41,537 100.0% 10,399 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

Demographic Characteristics of Veterans Who Participated In A Training Program 

A variety of demographic information about veterans who received vocational rehabilitation 

training during fiscal year 1999 is shown in the next ten tables. Yellow highlight notes the 

highest group in each table.

By Combined Degree of Service-Connected Disability 

Veterans Participating In A Vocational Training Program 

By Combined Degree Of Disability 

During Fiscal Year 1999 

0% 10% 20% 30% 40% 50% 60% 

Number 29 2,157 11,613 11,453 9,179 5,381 4,856 

Percent 0.1% 4.2% 22.4% 22.1% 17.7% 10.4% 9.3% 

70% 80% 90% 100% Other Total 

Number 2,626 1,568 553 2,167 354 51,936 

Percent 5.1% 3.0% 1.1% 4.2% 0.7% 100.0% 

Source: VR&E Program Management Reports (FY 1999) and Disability Compensation Database 

55
Chapter 2 Business During FY 1999

By Serious Employment Handicap 

Veterans Participating In A 

Vocational Training Program 

With A Serious Employment Handicap 

During Fiscal Year 1999 

Total Participants 51,936 

Number With Serious Employment Handicap 18,521 

Percent With Serious Employment Handicap 36% 

Source: VR&E Program Management Reports (FY 1999) 

By Gender 

Veterans Participating In A 

Vocational Training Program 

By Gender 

During Fiscal Year 1999 

Female Male Total 

Number 10,399 41,537 51,936 

Percent 20.0% 80.0% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

By Age 

Veterans Participating In A Vocational Training Program 

By Age 

During Fiscal Year 1999 

Age 

17 - 21 

Age 

22 - 29 

Age 

30 - 39 

Age 

40 - 49 

Age 

50 - 59 

Age 

60 > 

Total For 

All Ages 

Number 136 9,409 17,729 17,303 6,686 673 51,936 

Percent 0.3% 18.1% 34.1% 33.3% 12.9% 1.3% 100.0% 

Average Age For Veterans In Training Status: 38.9 

Source: VR&E Program Management Reports (FY 1999) 

56
Chapter 2 Business During FY 1999

By Period of Service 

Veterans Participating In A Vocational Training Program 

By Period Of Service 

During Fiscal Year 1999 

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 32 3 50 252 3,848 10,455 37,296 51,936 

Percent 0.1% 0.0% 0.1% 0.5% 7.4% 20.1% 71.8% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

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 1999 

Army1 Navy Air Force Marine 

Corps 

Coast 

Guard 

Other2 Total 

Number 23,347 12,103 9,293 5,672 674 847 51,936 

Percent 45.0% 23.3% 17.9% 10.9% 1.3% 1.6% 100.0% 

Source: VR&E Program Management Reports (FY 1999) and Disability Compensation Database 

1

 Army includes 3 from Women's Army Corps and 2 from Army Air Corps. 

2

 Other includes 2 from NOAA, 3 from Public Health Service and 842 records with no branch of service data. 

By Length of Service 

Veterans Participating In A Vocational Training Program 

By Length Of Service 

During Fiscal Year 1999 

3 Months 

or Less 

3 to 6 

Months 

6 Months 

to 2 Years 

2 to 4 

Years 

4 to 10 

Years 

Number 257 621 5,571 12,634 15,014 

Percent 0.5% 1.2% 10.7% 24.3% 28.9% 

10 to 15 

Years 

15 to 20 

Years 

20 to 30 

Years 

Over 30 

Years 

Total 

Number 5,714 4,361 7,564 200 51,936 

Percent 11.0% 8.4% 14.6% 0.4% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

57
Chapter 2 Business During FY 1999

By Dependency Status 

Note: 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 1999 

Single Single With 

Children 

Married Married With

Children 

Dependent 

Parent(s) 

Total1 

Number 12,482 6,365 8,879 23,986 106 51,818 

Percent 24.1% 12.3% 17.1% 46.3% 0.2% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Does not include 118 veterans whose dependency status is unknown. 

By Prior Education Level 

The following table shows the 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 1999 

Less Than 

High School 

High School Post 

High School

Four Year 

College 

Degree 

Graduate 

Training 

Total 

Number 332 30,353 17,530 2,584 1,137 51,936 

Percent 0.6% 58.4% 33.8% 5.0% 2.2% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

By Prior Use of VA Educational Benefits 

Veterans Participating In A 

Vocational Training Program 

By Prior Use Of VA Benefits 

During Fiscal Year 1999 

Prior Use No Prior 

Use 

Total 

Number 17,939 33,997 51,936 

Percent 34.5% 65.5% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

58
Chapter 2 Business During FY 1999

Step 5: Employment Services – Preparing and Searching for a Suitable Job

Employment services, to prepare and search for a suitable job, may be provided to veterans 

who have completed all portions of the rehabilitation plan. Some veterans already have 

sufficient training without using the training services described in Step 4. These veterans, if 

they are considered ready to enter the job market, may choose to use employment services 

immediately after the evaluation and planning in Steps 2 and 3. Employment services include, 

but are not limited to, resume preparation, interview techniques, job site modification, and help 

in finding employers. The following table shows the number and percentage of veterans who 

received employment services during fiscal year 1999. 

Veterans Participating In A 

Vocational Training Program 

Veterans Who Entered Employment Services 

During Fiscal Year 1999 

Total Participants1 51,936 

Employment Plans Developed2 11,289 

Percent In Employment Plans 22% 

1

Source: VR&E Program Management Reports (FY 1999) 

2

Source: COIN TAR 6005 

59
Chapter 2 Business During FY 1999

Summary of Beneficiaries Leaving The Rolls For All Benefits Programs 

During Fiscal Year 1999 

Because VBA’s programs serve widely varying purposes, the reasons benefits end vary from 

program to program. For programs that pay monthly monetary benefits, termination ceases 

payment. 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 cessation of training, either by completing or withdrawing 

from the program. 

Summary of All 

Active Benefits That Ended 

During Fiscal Year 1999 

Benefits Programs Number of People Percent of Total 

Compensation – Disability 72,900 7.3% 

Compensation – Death1 20,644 2.1% 

Pension – Disability 60,913 6.1% 

Pension – Death 47,708 4.8% 

Education2 19,318 1.9% 

Life Insurance 136,724 13.8% 

Home Loan Guaranty 615,898 62.0% 

Vocational Rehabilitation3 19,410 2.0% 

Total 993,515 100.0% 

1

 This category consists of the Death Compensation and DIC Programs. 

2

 17,267 claimants exhausted their entitlement; 2,051 claimants reached their delimiting date. 

3

 10,280 veterans completed training; 9,130 veterans discontinued training. 

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 1999. 

60
Chapter 2 Business During FY 1999

 1. COMPENSATION - BASED UPON SERVICE-CONNECTED DISABILITY

The following table shows the most common reasons for ending disability compensation 

payments during fiscal year 1999.14 

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 1999 

Death Of Veteran Veterans Whereabouts 

or Address Unknown 

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 72 100.0% 0 0.0% 0 0.0% 

 World War II 42,876 98.2% 264 0.6% 444 1.0% 

 Korean War 7,144 97.8% 40 0.5% 72 1.0% 

 Vietnam Era 11,172 93.6% 192 1.6% 120 1.0% 

 Gulf War Era 550 25.8% 220 10.3% 84 3.9% 

 Peacetime Periods 6,784 87.2% 308 4.0% 104 1.3% 

Total 68,598 1,024 824 

Percent of Grand Total 94.1% 1.4% 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% 72 0.1% 

 World War II 8 0.0% 74 0.2% 43,666 59.9% 

 Korean War 16 0.2% 36 0.5% 7,308 10.0% 

 Vietnam Era 116 1.0% 340 2.8% 11,940 16.4% 

 Gulf War Era 375 17.6% 905 42.4% 2,134 2.9% 

 Peacetime Periods 160 2.1% 424 5.4% 7,780 10.7% 

Total 675 1,779 72,900 100.0% 

Percent of Grand Total 0.9% 2.4% 100.0% 

Source: RCS 20-0243 

1

 The “All Other” category combines 12 other reasons for ending benefits.

 

14 Because information in three of the four FY 1999 quarterly RCS 20-0243 reports was significantly understated, the data in the following table 

are estimates based upon an extrapolation of the data for the third quarter (June 1999).

61
Chapter 2 Business During FY 1999

 2. COMPENSATION - BASED UPON A SERVICE-CONNECTED DEATH

The following table shows the most common reasons for ending DIC and Death 

Compensation15 payments during fiscal year 1999.16 

Service-Connected Death Benefits - Reasons For Ending Payments 

During Fiscal Year 1999 

Death Of Payee Child Over 18 

Terminates School or 

Reaches Age 23 

Child Reaches Age 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 680 91.9% 8 1.1% 0 0.0% 

 World War II 7,524 91.6% 144 1.8% 8 0.1% 

 Korean War 1,820 84.3% 92 12.0% 20 0.9% 

 Vietnam Era 2,584 44.8% 1,676 29.1% 428 7.4% 

 Gulf War Era 16 2.7% 248 42.2% 80 13.6% 

 Peacetime Periods 1,808 56.9% 640 20.2% 292 9.2% 

Total 14,432 2,808 828 

Percent of Grand Total 69.9% 13.6% 4.0% 

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 4 0.5% 48 6.5% 740 3.6% 

 World War II 116 1.4% 424 5.2% 8,216 39.8% 

 Korean War 60 2.8% 168 7.8% 2,160 10.5% 

 Vietnam Era 340 5.9% 736 12.8% 5,764 27.9% 

 Gulf War Era 144 24.5% 100 17.0% 588 2.8% 

 Peacetime Periods 136 4.3% 300 9.4% 3,176 15.4% 

Total 800 1,776 20,644 100.0% 

Percent of Grand Total 3.9% 8.6% 100.0% 

Source: RCS 20-0243 

1

 The “All Other” category combines 13 other reasons for ending benefits. 

 

15 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. 

16 Because information in three of the four FY 1999 quarterly RCS 20-0243 reports was significantly understated, the data in the following table 

are estimates based upon an extrapolation of the data for the third quarter (June 1999).

62
Chapter 2 Business During FY 1999

 3. PENSION - BASED UPON NONSERVICE-CONNECTED DISABILITY 

The following table shows the most common reasons for ending disability pension payments 

during fiscal year 1999.17 

Nonservice-Connected Disability Pension - Reasons For Ending Payments 

During Fiscal Year 1999 

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 260 96.3% 1 0.4% 4 1.5% 

 World War II 30,228 81.6% 4,732 12.8% 408 1.1% 

 Korean War 7,768 59.6% 4,140 31.8% 120 0.9% 

 Vietnam Era 4,212 40.4% 4,996 47.9% 60 0.6% 

 Gulf War Era 20 16.9% 60 50.8% 8 6.8% 

 Peacetime Periods N/A N/A N/A 

Total 42,488 13,929 600 

Percent of Grand Total 69.8% 22.9% 1.0% 

Veterans Whereabouts 

or Address Unknown 

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% 5 1.9% 270 0.4% 

 World War II 212 0.6% 1,481 4.0% 37,061 60.8% 

 Korean War 72 0.6% 929 7.1% 13,029 21.4% 

 Vietnam Era 128 1.2% 1,039 10.0% 10,435 17.1% 

 Gulf War Era 0 0.0% 30 25.4% 118 0.2% 

 Peacetime Periods N/A N/A N/A 

Total 412 3,484 60,913 100.0% 

Percent of Grand Total 0.7% 5.7% 100.0% 

Source: RCS 20-0243 

1

 The “All Other” category combines 15 other reasons for ending benefits. 

 

17 Because information in three of the four FY 1999 quarterly RCS 20-0243 reports was significantly understated, the data in the following table 

are estimates based upon an extrapolation of the data for the third quarter (June 1999).

63
Chapter 2 Business During FY 1999

 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 1999.18 

Nonservice-Connected Death Pension - Reasons For Ending Payments 

During Fiscal Year 1999 

Death Of Payee Income Provisions Marital Status Change -

Person Entitled 

or Dependent 

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 9,144 93.6% 164 1.7% 12 0.1% 

 World War II 16,868 57.5% 10,044 34.3% 300 1.0% 

 Korean War 1,036 17.2% 4,316 71.6% 104 1.7% 

 Vietnam Era 272 10.8% 1,584 62.9% 96 3.8% 

 Gulf War Era 0 0.0% 44 64.7% 12 17.6% 

 Peacetime Periods N/A N/A N/A 

Total 27,320 16,152 524 

Percent of Grand Total 57.3% 33.9% 1.1% 

Child Over 18 

Terminates School or 

Reaches Age 23 

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 0 0.0% 452 4.6% 9,772 20.5% 

 World War II 37 0.1% 2,071 7.1% 29,320 61.5% 

 Korean War 35 0.6% 537 8.9% 6,028 12.6% 

 Vietnam Era 336 13.3% 232 9.2% 2,520 5.3% 

 Gulf War Era 8 11.8% 4 5.9% 68 0.1% 

 Peacetime Periods N/A N/A N/A 

Total 416 3,296 47,708 100.0% 

Percent of Grand Total 0.9% 6.9% 100.0% 

Source: RCS 20-0243 

1

 The “All Other” category combines 16 other reasons for ending benefits. 

 

18 Because information in three of the four FY 1999 quarterly RCS 20-0243 reports was significantly understated, the data in the following table 

are estimates based upon an extrapolation of the data for the third quarter (June 1999).

64
Chapter 2 Business During FY 1999

 5. EDUCATION 

Educational assistance ends for one of two reasons - entitlement is exhausted or the deadline 

for using the benefit (i.e., the delimiting date) is reached. 

Veterans, servicepersons 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. 

Beneficiaries have a limited amount of time to use their educational assistance. Veterans and 

servicepersons, 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 1999 

Program Entitlement 

Exhausted 

Delimiting 

Date 

Total 

Terminations 

Percent of 

Total 

Terminations

 Dependents Education 185 99 284 1.5% 

 Montgomery GI Bill - Active Duty1 14,272 1,526 15,798 81.8% 

 Montgomery GI Bill – Reserves2 2,300 136 2,436 12.6% 

 Post-Vietnam Veterans Education 510 290 800 4.1% 

Total 17,267 2,051 19,318 100.0% 

Percent of Total Terminations 89.4% 10.6% 100.0% 

Source: Education Service SAS Reports 

1

 Based on Active Duty service 

2

 Based on service in the Selected Reserve 

65
Chapter 2 Business During FY 1999

 6. LIFE INSURANCE 

Life insurance policies terminate for two reasons - either they are “paid off” or they lapse. The 

following two tables provide data concerning the policies that terminated during fiscal year 

1999. 

a. Policies That Were “Paid Off” 

Policies may be “paid off” by any of three types of payment. 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 1999 

Death Claims Number1 Amount2 Average Payment

USGLI 1,481 $4,897,772 $3,307 

NSLI 90,455 $811,041,965 $8,966 

VSLI 4,611 $49,107,428 $10,650 

VRI 4,591 $34,237,881 $7,458 

SDVI 4,197 $40,100,325 $9,555 

VMLI 134 $8,856,175 $66,091 

SGLI3 1,664 $315,206,508 $189,427 

VGLI3 1,005 $94,612,998 $94,142 

TOTAL 108,138 $1,358,061,052 $12,559 

Matured Endowment Number1 Amount2 Average Payment

USGLI 24 $95,768 $3,990 

NSLI 1,642 $15,001,978 $9,136 

VSLI 1,378 $16,073,910 $11,665 

VRI 35 $377,476 $10,785 

SDVI 338 $2,535,144 $7,500 

TOTAL 3,417 $34,084,276 $9,975 

Cash Surrender Number1 Amount2 Average Payment

USGLI 182 $462,116 $2,539 

NSLI 9,194 $35,709,082 $3,884 

VSLI 1,131 $4,677,310 $4,136 

VRI 455 $2,014,584 $4,428 

SDVI 1,091 $5,898,319 $5,406 

TOTAL 12,053 $48,761,411 $4,046 

GRAND TOTAL 123,608 $1,440,906,739 $11,657 

1

 Source: 510 Monthly Report, VMLI Quarterly Report, OSGLI Monthly Report 

2

 Source: CFO Fiscal Year 1999 Life Insurance Statements (Incurred Basis) 

3

 Source: SGLI and VGLI data are for the policy year ending June 30, 1999 

66
Chapter 2 Business During FY 1999

b. Policies That Lapsed 

Policies lapse mainly due to failure of the policyholder to pay the premiums. The following 

table provides data about policies that lapsed during FY 1999. 

Policy Lapses 

During Fiscal Year 1999 

Policy Lapses Number1 Face Value1 Average 

Face Value 

NSLI 10,421 $69,275,511 $6,648 

VSLI 711 $5,597,250 $7,872 

VRI 267 $1,384,586 $5,186 

SDVI 1,717 $16,529,750 $9,627 

TOTAL 13,116 $92,787,097 $7,074 

1

 Source: 510 Monthly Report, VMLI Quarterly Report, OSGLI Monthly Report 

 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 1999. Also shown is the amount of money paid to lending institutions under the 

guaranty provisions during fiscal year 1999. 

Disposition of Home Loans 

During Fiscal Year 1999 

Disposition Number 

of Loans 

Percent 

of Total 

Amount of 

Payment 

Average 

Payment 

Paid in Full by Borrower 590,101 95.8% $0 $0 

Loan Defaults - Guaranty Payment Made 25,797 4.2% $635,374,000 $24,630 

TOTAL 615,898 100.0% 

Source: COIN GIL 01-01, 02-01 & 50-01; DOOR Report 6005 

1 Source: Budget Statistics. This amount is based upon claims processed. 

67
Chapter 2 Business During FY 1999

 8. VOCATIONAL REHABILITATION AND EMPLOYMENT 

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. 

a. Veterans Ending Their Participation in a Training Program 

The following table shows the number and percentage of veterans, whose participation ended 

during fiscal year 1999, sorted by termination reason. 

Veterans Who Ended 

A Training Program 

During Fiscal Year 1999 

Reason For Ending Program Number Percent 

Employment 9,975 51.4% 

Discontinue1 9,130 47.0% 

Independent Living 305 1.6% 

Total 19,410 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Source: VR&E Balanced Scorecard FY 1999 

b. Participants with Serious Employment Handicaps Who Completed Their Program 

The next table shows the number and percentage of participants who had a serious 

employment handicap and completed a program of vocational rehabilitation during fiscal year 

1999. 

Veterans With A 

Serious Employment Handicap 

Who Completed Training 

During Fiscal Year 1999 

Number Percent 

Total Veterans 10,280 

Total With Serious Employment Handicap 3,829 37% 

Source: VR&E Program Management Reports (FY 1999) 

68
Chapter 2 Business During FY 1999

c. Pre- and Post-Training Annual Earnings 

By Gender 

The next table compares annual and average earnings of veterans, by gender, before 

entering their rehabilitation program and after completing it and finding employment. 

Veterans Who Successfully Completed Training 

Pre And Post Annual Earnings - By Gender 

During Fiscal Year 1999 

Number 

Rehabilitated 

Average Annual

Earnings Prior

To Training 

Total Annual 

Earnings Prior

To Training 

Average Annual

Earnings At 

Rehabilitation 

Total Annual 

Earnings At 

Rehabilitation 

Percent Of

Increase In

Earnings 

Male 8,654 $4,705 $40,717,070 $26,179 $226,553,060 456%

Female 1,626 $3,261 $5,302,386 $22,938 $37,295,562 603%

Total 10,280 $3,983 $43,733,340 $24,558 $252,456,240 477%

Source: VR&E Program Management Reports (FY 1999) 

By Occupation Type 

The next table shows the distribution of average and total annual earnings before entering 

the program and following rehabilitation, by occupational categories. 

Veterans Who Successfully Completed Training 

Pre And Post Annual Earnings - By Occupational Category 

During Fiscal Year 1999 

Number 

Rehabilitated

Average 

Annual 

Earnings Prior

To Training 

Total Annual 

Earnings Prior

To Training 

Average 

Annual 

Earnings At 

Rehabilitation 

Total Annual 

Earnings 

At 

Rehabilitation 

Percent Of

Increase In

Earnings 

Professional, Technical and Managerial 6,496 $4,842 $31,456,360 $28,124 $182,693,504 481% 

Clerical 931 $3,915 $3,645,200 $21,975 $20,458,837 461% 

Sales 231 $5,452 $1,259,449 $25,893 $5,981,304 375% 

Services 511 $4,143 $2,117,078 $21,411 $10,941,231 417% 

Agricultural, Fishery and Forestry 56 $2,721 $152,400 $22,112 $1,238,292 713% 

Processing (Butcher, Meat Processor, etc.) 46 $5,794 $266,532 $24,287 $1,117,224 319% 

Machine Trades 374 $5,278 $1,974,095 $23,518 $8,795,545 346% 

Bench Work 132 $5,110 $674,579 $22,162 $2,925,432 334% 

Structural (Building Trades) 426 $4,165 $1,774,294 $24,651 $10,501,130 492% 

Miscellaneous 318 $4,157 $1,321,926 $23,943 $7,613,820 476% 

Total1 9,521 $4,689 $44,641,915 $26,496 $252,266,318 465% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Does not include 440 persons who went to independent living and do not have earnings and 319 records which have unidentified occupational 

categories. 

69
Chapter 2 Business During FY 1999

d. Type of Training Activity by Gender 

The distribution of participants by gender is shown for each type of training in the following 

table. A subsistence allowance is paid to participants for some or all of the time they are in the 

training program. 

Veterans Who Successfully Completed Training 

By Type Of Training And Gender 

During Fiscal Year 1999 

Type Of Training Total 

Number 

Percent of

Total 

Number of

Male 

Percent of

Total 

Number of 

Female 

Percent of

Total 

Undergraduate 6,615 64.3% 5,443 62.9% 1,172 72.1% 

Vocational/Technical 1,267 12.3% 1,130 13.1% 137 8.4% 

Graduate 569 5.5% 441 5.1% 128 7.9% 

College, Non-Degree 257 2.5% 222 2.6% 35 2.2% 

Extend. Eval/Indep. Living 138 1.3% 120 1.4% 18 1.1% 

On The Job 111 1.1% 107 1.2% 4 0.2% 

Eval/Improv. Rehab. Pot. 42 0.4% 35 0.4% 7 0.4% 

High School 15 0.1% 13 0.2% 2 0.1% 

Non/Nominal Pay in Govt. 49 0.5% 39 0.5% 10 0.6% 

Govt. Work Experience 37 0.4% 34 0.4% 3 0.2% 

Apprenticeship 25 0.2% 24 0.3% 1 0.1% 

Farm Co-op 0 0.0% 0 0.0% 0 0.0% 

Not Classified 1,155 11.2% 1,046 12.1% 109 6.7% 

Total 10,280 100.0% 8,654 100.0% 1,626 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

e. Demographic Characteristics of Participants Who Successfully Completed Training 

Yellow highlight notes the highest group in each table. 

By Gender 

Veterans Who Successfully 

Completed Training 

By Gender 

During Fiscal Year 1999 

Female Male Total 

Number 1,626 8,654 10,280 

Percent 15.8% 84.2% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

70
Chapter 2 Business During FY 1999

By Age 

Veterans Who Successfully Completed Training 

By Age 

During Fiscal Year 1999 

Age 

17 - 21 

Age 

22 - 29 

Age 

30 - 39 

Age 

40 - 49 

Age 

50 - 59 

Age 

60 > 

Total For 

All Ages 

Number 4 1,188 3,265 3,632 1,899 292 10,280 

Percent 0.0% 11.6% 31.8% 35.3% 18.5% 2.8% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

By Prior Education Level 

This table shows the distribution of pre-training education among those who completed 

training. 

Veterans Who Successfully Completed Training 

By Prior Education Level 

During Fiscal Year 1999 

Less Than 

High School 

High School Post 

High School

Four Year 

College 

Degree 

Graduate 

Training 

Total 

Number 89 5,752 3,190 904 345 10,280 

Percent 0.9% 56.0% 31.0% 8.8% 3.4% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

By Dependency Status 

Veterans Who Successfully Completed Training 

By Dependency Status 

During Fiscal Year 1999 

Single Single With 

Children 

Married Married With

Children 

Dependent 

Parent(s) 

Total1 

Number 1,986 940 1,826 4,335 17 9,104 

Percent 21.8% 10.3% 20.1% 47.6% 0.2% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Does not include 1176 veterans whose dependency status is unknown. 

71
Chapter 2 Business During FY 1999

By Branch of Service 

The next table provides a distribution by branch of service among those who completed 

rehabilitation programs. 

Note: Consistent with requirements established in 38 U.S.C. § 101, service in the 

National Oceanic and Atmospheric Administration (NOAA) and the Public Health Service 

qualify persons for vocational rehabilitation programs. 

Veterans Who Successfully Completed Training 

By Branch Of Service 

During Fiscal Year 1999 

Army Navy Air Force Marine 

Corps 

Coast 

Guard 

Other1 Total 

Number 4,479 2,330 2,045 1,125 146 155 10,280 

Percent 43.6% 22.7% 19.9% 10.9% 1.4% 1.5% 100.0% 

Source: VR&E Program Management Reports (FY 1999) and Disability Compensation Database 

1

 Other includes 1 from Regular Philippine Scouts, 1 from Public Health Service and 153 records with no branch of service data. 

72
Chapter 2 Business During FY 1999

By Length of Service 

The distribution by length of time in service among veterans who completed rehabilitation 

programs follows. 

Veterans Who Successfully Completed Training 

By Length Of Service 

During Fiscal Year 1999 

3 Months 

or Less 

3 to 6 

Months 

6 Months 

to 2 Years 

2 to 4 

Years 

4 to 10 

Years 

Number 38 98 1,033 2,458 2,721 

Percent 0.4% 1.0% 10.1% 24.1% 26.6% 

10 to 15 

Years 

15 to 20 

Years 

20 to 30 

Years 

Over 30 

Years 

Total1 

Number 1,119 872 1,811 70 10,220 

Percent 10.9% 8.5% 17.7% 0.7% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

 Does not include 60 veterans whose length of service is unknown. 

73
Chapter 2 Business During FY 1999

74

By Period of Service 

This table shows the distribution by period of service among those who completed 

rehabilitation programs. 

Veterans Who Successfully Completed Training 

By Period Of Service 

During Fiscal Year 1999 

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 38 4 25 86 1,092 2,521 6,514 10,280 

Percent 0.4% 0.0% 0.2% 0.8% 10.6% 24.5% 63.4% 100.0% 

Source: VR&E Program Management Reports (FY 1999) 

1

These three periods are generally combined into "Peacetime" service in other sections of this report. 
 Summary of Active Accounts for All Benefits Programs at the Beginning 

 of Fiscal Year 2000 

The following three tables summarize the number of active beneficiaries in VA benefits 

programs at the beginning of fiscal year 2000 and the monetary value of their benefits. 

The first table pertains to programs that pay monthly monetary benefits. It shows the total 

number of people who were receiving the benefit at the beginning of fiscal year 2000. 

Summary of Beneficiaries Receiving Benefits 

For Programs That Pay Ongoing Monthly Benefits 

At the Beginning of Fiscal Year 2000 

Benefit Programs Number 

of People 

Percent 

of Total 

Total 

Annual Amounts 

Average 

Annual Amounts 

Compensation - Disability 2,294,453 70.4% $13,902,570,108 $6,059 

Compensation - Death1 311,631 9.6% $3,323,656,997 $10,665 

Pension - Disability 378,712 11.6% $2,150,044,092 $5,677 

Pension - Death 274,106 8.4% $687,719,184 $2,509 

Total 3,258,902 100.0% $20,063,990,381 $6,157 

1 Includes the DIC and Death Compensation programs 

The second table pertains to programs that pay monthly monetary benefits to trainees only 

during a period of training. The “Number of People” is the numbers who were receiving 

benefits at the beginning of fiscal year 2000. 

Summary of Beneficiaries Receiving 

Benefits For Programs That Pay

Monthly Benefits During Training 

At the Beginning of Fiscal Year 2000 

Benefit Programs Number of People Percent of Total 

Education 243,453 88.9% 

Vocational Rehabilitation 30,397 11.1% 

CHAPTER 3

BUSINESS BEGINNING FISCAL YEAR 2000

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Chapter 3 Business Beginning FY 2000

Total 273,850 100.0% 

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Chapter 3 Business Beginning FY 2000

The third table 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 force at the beginning of fiscal year 2000. 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 2000. 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 2000 

Benefit Programs Number of 

People 

Percent of 

Total 

Total Coverage 

Amounts 

Average 

Coverage 

Amounts 

Life Insurance 4,986,600 60.9% $484,616,832,433 $97,184 

Home Loan Guaranty1 3,204,997 39.1% $84,326,839,505 $26,311 

Total 8,191,597 100.0% $568,943,671,938 $69,455 

1

 Includes direct loans sold and later guaranteed. 

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Chapter 3 Business Beginning FY 2000

 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 2000. 

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 as of the beginning of fiscal year 2000. Tables in Chapter 2 describe only those 

program beneficiaries who began receiving benefits during fiscal year 1999. 

 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 2000. 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. The highest period of service is highlighted in 

yellow. 

Total Veterans Receiving Service-Connected Disability Benefits 

Beginning of Fiscal Year 2000 

Period of Service Number of 

Veterans 

Percent of 

Total 

Total Annual 

Amounts 

Average Annual 

Amounts 

Mexican Border 8 0.0% $66,828 $8,354 

World War I 79 0.0% $771,096 $9,761 

World War II 541,225 23.6% $3,025,743,204 $5,591 

Korean War 174,807 7.6% $1,173,177,528 $6,711 

Vietnam Era 735,627 32.1% $5,578,616,028 $7,583 

Gulf War Era 282,140 12.3% $1,167,592,428 $4,138 

Peacetime Periods 560,567 24.4% $2,956,602,996 $5,274 

TOTAL 2,294,453 100.0% $13,902,570,108 $6,059 

Source: 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. This table 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 2000. 

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Chapter 3 Business Beginning FY 2000

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 and entitle the 

veteran to receive disability compensation. These will be called “compensable zeros” and are 

shown in the 0% column of this table. 

The largest group of veterans with the same combined disability evaluation is highlighted in 

yellow. Also highlighted is the largest aggregate dollar amount of compensation paid to 

veterans with the same combined disability evaluation. 

Total Service-Connected Benefits by Combined Percent of Disability 

Beginning of Fiscal Year 2000 

Combined 

Degree 

Number Percent of Total Total Annual 

Amounts 

Average Annual 

Amounts 

0% 17,961 0.8% $14,870,772 $828 

10% 853,544 37.2% $987,609,876 $1,157 

20% 370,441 16.1% $819,964,524 $2,213 

30% 309,391 13.5% $1,167,764,004 $3,774 

40% 194,151 8.5% $1,053,796,464 $5,428 

50% 116,053 5.1% $887,024,052 $7,643 

60% 118,144 5.1% $1,521,868,644 $12,881 

70% 77,934 3.4% $1,348,266,576 $17,300 

80% 48,083 2.1% $970,213,572 $20,178 

90% 22,269 1.0% $497,032,368 $22,319 

100% 166,482 7.3% $4,634,166,180 $27,836 

TOTAL 2,294,453 100.0% $13,902,577,032 $6,059 

Number of disabilities 0% thru 

30%: 

1,551,337 

Percent of all disabilities: 67.6% 

Source: 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 service-connected veterans and their combined 

evaluations, the following table organizes information according to the number of serviceconnected 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 derived from compensation payment records. 

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Chapter 3 Business Beginning FY 2000

Consequently, the disabilities of service-connected veterans who do not receive compensation 

(because their combined disability ratings are zero percent) are not represented in the table. 

Zero percent disabilities shown in the table are those occurring among veterans who receive 

compensation. The largest category is highlighted in yellow. 

Total Individual Service-Connected Disabilities - by Percent 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

0% 10% 20% 30% 40% 50% 

Number of Disabilities 2,021,155 2,124,381 504,756 457,325 151,144 105,128

Percent of All Disabilities 35.6% 37.4% 8.9% 8.1% 2.7% 1.9%

60% 70% 80% 90% 100% Total 

Number of Disabilities 98,944 40,894 8,426 2,693 165,344 5,680,190

Percent of All Disabilities 1.7% 0.7% 0.1% 0.0% 2.9% 100.0%

Total Veterans: 2,294,453 Average number of disabilities per veteran: 2.48

Number of Disabilities 0% thru 30%: 5,107,617

 Percent of all Disabilities: 89.9%

Source: RCS 20-0227 and COIN CP-127 

d. Individual Service-Connected Disabilities by Body Systems 

The following table shows all service-connected disabilities among veterans receiving 

compensation at the beginning of fiscal year 2000, sorted by body system and listed in 

descending order of frequency. 

Ranking of Individual Service-Connected Disabilities - by Body System 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

Body System Total 

Number 

Percent 

of Total 

Body System Total 

Number

Percent 

of Total

Musculoskeletal System 2,280,843 40.2% Genitourinary System 136,852 2.4%

Skin 711,700 12.5% Eye 103,704 1.8%

Impairment of Auditory Acuity 483,532 8.5% Endocrine System 57,576 1.0%

Digestive System 429,546 7.6% Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

49,042 0.9%

Mental Disorders 403,175 7.1% Gynecological Conditions 32,004 0.6%

Cardiovascular System 339,195 6.0% Dental and Oral Conditions 25,798 0.5%

Neurological Conditions 313,252 5.5% Hemic & Lymphatic Systems 20,792 0.4%

Respiratory System 293,179 5.2% Grand Total - All Conditions 5,680,190 100.0%

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

e. Individual Service-Connected Disabilities by Body System and Degree of Disability 

A total of 947 diagnostic codes were assigned to describe the 5,680,190 separate serviceconnected disabilities noted among veterans receiving disability compensation at the beginning 

of the fiscal year. Diagnostic codes are four-digit numbers that are used to signify specific 

medical conditions, and these numeric diagnostic codes are prescribed in Title 38, Code of 

Federal Regulations, Part 4. The following 4-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. Yellow highlights the degree of disability appearing most often in each 

body system as of the beginning of the fiscal year. 

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Chapter 3 Business Beginning FY 2000

Total Individual Service-Connected Disabilities – by Percent and Body System 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

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) 

600,278 26.3% 1,037,029 45.5% 341,398 15.0% 

Eye 

(Codes 6000-6099) 

31,100 30.0% 28,778 27.8% 5,253 5.1% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 

266,582 55.1% 174,670 36.1% 16,249 3.4% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

40,505 82.6% 3,283 6.7% 575 1.2% 

Respiratory System 

(Codes 6501-6899) 

137,355 46.9% 91,340 31.2% 9,695 3.3% 

Cardiovascular System 

(Codes 7000-7199) 

55,194 16.3% 165,033 48.7% 25,271 7.5% 

Digestive System 

(Codes 7200-7399) 

248,219 57.8% 111,280 25.9% 31,864 7.4% 

Genitourinary System 

(Codes 7500-7599) 

69,459 50.8% 31,484 23.0% 9,809 7.2% 

Gynecological Conditions 

(Codes 7610-7699) 

11,645 36.4% 5,427 17.0% 103 0.3% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 

5,407 26.0% 1,340 6.4% 731 3.5% 

Skin 

(Codes 7800-7899) 

467,375 65.7% 210,149 29.5% 4,591 0.6% 

Endocrine System 

(Codes 7900-7999) 

5,617 9.8% 22,713 39.4% 15,671 27.2% 

Neurological Conditions 

(Codes 8000-8999) 

47,253 15.1% 123,919 39.6% 41,808 13.3% 

Mental Disorders 

(Codes 9200-9599) 

19,188 4.8% 111,053 27.5% 257 0.1% 

Dental and Oral Conditions 

(Codes 9900-9999) 

15,978 61.9% 6,883 26.7% 1,481 5.7% 

Grand Total - All Conditions 

(Codes 5000-9999) 

2,021,155 35.6% 2,124,381 37.4% 504,756 8.9% 

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

Total Individual Service-Connected Disabilities – by Percent and Body System 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

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) 

135,002 5.9% 85,423 3.7% 19,461 0.9% 

Eye 

(Codes 6000-6099) 

23,420 22.6% 7,705 7.4% 1,364 1.3% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 

7,675 1.6% 8,230 1.7% 2,026 0.4% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

1,959 4.0% 205 0.4% 61 0.1% 

Respiratory System 

(Codes 6501-6899) 

33,164 11.3% 2,508 0.9% 2,489 0.8% 

Cardiovascular System 

(Codes 7000-7199) 

54,638 16.1% 4,764 1.4% 2,969 0.9% 

Digestive System 

(Codes 7200-7399) 

16,063 3.7% 9,318 2.2% 852 0.2% 

Genitourinary System 

(Codes 7500-7599) 

11,608 8.5% 2,415 1.8% 33 0.0% 

Gynecological Conditions 

(Codes 7610-7699) 

7,314 22.9% 312 1.0% 7,024 21.9% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 

10,567 50.8% 135 0.6% 22 0.1% 

Skin 

(Codes 7800-7899) 

22,924 3.2% 2,089 0.3% 4,006 0.6% 

Endocrine System 

(Codes 7900-7999) 

1,419 2.5% 6,837 11.9% 51 0.1% 

Neurological Conditions 

(Codes 8000-8999) 

39,908 12.7% 20,801 6.6% 9,232 2.9% 

Mental Disorders 

(Codes 9200-9599) 

90,682 22.5% 152 0.0% 55,365 13.7% 

Dental and Oral Conditions 

(Codes 9900-9999) 

982 3.8% 250 1.0% 173 0.7% 

Grand Total - All Conditions 

(Codes 5000-9999) 

457,325 8.1% 151,144 2.7% 105,128 1.9% 

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

Total Individual Service-Connected Disabilities – by Percent and Body System 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

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) 

38,659 1.7% 4,655 0.2% 2,241 0.1% 

Eye 

(Codes 6000-6099) 

896 0.9% 1,037 1.0% 121 0.1% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 

2,679 0.6% 794 0.2% 1,501 0.3% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

1,369 2.8% 20 0.0% 90 0.2% 

Respiratory System 

(Codes 6501-6899) 

9,363 3.2% 295 0.1% 462 0.2% 

Cardiovascular System 

(Codes 7000-7199) 

20,266 6.0% 472 0.1% 111 0.0% 

Digestive System 

(Codes 7200-7399) 

4,966 1.2% 108 0.0% 90 0.0% 

Genitourinary System 

(Codes 7500-7599) 

6,333 4.6% 9 0.0% 310 0.2% 

Gynecological Conditions 

(Codes 7610-7699) 

62 0.2% 4 0.0% 19 0.1% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 

552 2.7% 121 0.6% 6 0.0% 

Skin 

(Codes 7800-7899) 

77 0.0% 32 0.0% 303 0.0% 

Endocrine System 

(Codes 7900-7999) 

3,698 6.4% 15 0.0% 7 0.0% 

Neurological Conditions 

(Codes 8000-8999) 

9,896 3.2% 3,252 1.0% 3,099 1.0% 

Mental Disorders 

(Codes 9200-9599) 

121 0.0% 30,077 7.5% 65 0.0% 

Dental and Oral Conditions 

(Codes 9900-9999) 

7 0.0% 3 0.0% 1 0.0% 

Grand Total - All Conditions 

(Codes 5000-9999) 

98,944 1.7% 40,894 0.7% 8,426 0.1% 

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

Total Individual Service-Connected Disabilities – by Percent and Body System 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

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) 

1,175 0.1% 15,522 0.7% 2,280,843 100% 

Eye 

(Codes 6000-6099) 

466 0.4% 3,564 3.4% 103,704 100% 

Impairment of Auditory Acuity 

(Codes 6100-6299) 

390 0.1% 2,736 0.6% 483,532 100% 

Infectious Diseases, Immune 

Disorders, Nutritional Disorder 

(Codes 6300-6399) 

2 0.0% 973 2.0% 49,042 100% 

Respiratory System 

(Codes 6501-6899) 

3 0.0% 6,505 2.2% 293,179 100% 

Cardiovascular System 

(Codes 7000-7199) 

14 0.0% 10,463 3.1% 339,195 100% 

Digestive System 

(Codes 7200-7399) 

0 0.0% 6,786 1.6% 429,546 100% 

Genitourinary System 

(Codes 7500-7599) 

0 0.0% 5,392 3.9% 136,852 100% 

Gynecological Conditions 

(Codes 7610-7699) 

0 0.0% 94 0.3% 32,004 100% 

Hemic & Lymphatic Systems 

(Codes 7700-7799) 

0 0.0% 1,911 9.2% 20,792 100% 

Skin 

(Codes 7800-7899) 

8 0.0% 146 0.0% 711,700 100% 

Endocrine System 

(Codes 7900-7999) 

9 0.0% 1,539 2.7% 57,576 100% 

Neurological Conditions 

(Codes 8000-8999) 

625 0.2% 13,459 4.3% 313,252 100% 

Mental Disorders 

(Codes 9200-9599) 

1 0.0% 96,214 23.9% 403,175 100% 

Dental and Oral Conditions 

(Codes 9900-9999) 

0 0.0% 40 0.2% 25,798 100% 

Grand Total - All Conditions 

(Codes 5000-9999) 

2,693 0.0% 165,344 2.9% 5,680,190 100% 

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

f. Most Prevalent Service-Connected Disabilities 

This section presents data identifying the most common service-connected disabilities as of 

the beginning of the fiscal year. 

By Body Systems 

The first 3-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. 

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Chapter 3 Business Beginning FY 2000

Most Prevalent Service-Connected Disabilities within Body Systems 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

Code Body System and Disability Total 

Number 

Percent of 

System Total 

Percent of 

Grand Total 

Musculoskeletal System 2,280,843 100.0% 40.2% 

5299 Skeletal conditions 234,610 10.3% 4.1% 

5257 Knee, other impairment of 223,214 9.8% 3.9% 

5010 Arthritis, due to trauma 170,603 7.5% 3.0% 

5295 Lumbosacral strain 163,639 7.2% 2.9% 

5293 Intervertegral disc syndrome 125,191 5.5% 2.2% 

Skin 711,700 100.0% 12.5% 

7805 Scars, other19 283,286 39.8% 5.0% 

7800 Scars, disfiguring, head, face, neck 93,438 13.1% 1.6% 

7899 Skin condition 82,832 11.6% 1.5% 

7804 Scars, superficial, tender and painful on objective 

demonstration 

69,642 9.8% 1.2% 

7806 Eczema 53,013 7.4% 0.9% 

Auditory 483,532 100.0% 8.5% 

6260 Tinnitus 128,591 26.6% 2.3% 

6100 Auditory, acuity impairment, 0% 119,041 24.6% 2.1% 

6297 Hearing Loss 78,014 16.1% 1.4% 

6200 Otitis media, suppurative, chronic 24,204 5.0% 0.4% 

6101 Auditory, acuity impairment, 10% 16,979 3.5% 0.3% 

Digestive System 429,546 100.0% 7.6% 

7336 Hemorrhoids, external or internal 122,113 28.4% 2.1% 

7305 Ulcer, duodenal 64,241 15.0% 1.1% 

7338 Hernia, inguinal 49,015 11.4% 0.9% 

7346 Hernia, hiatal 34,465 8.0% 0.6% 

7399 Digestive system, disease of 29,006 6.8% 0.5% 

Mental Disorders 403,175 100.0% 7.1% 

9411 Post-traumatic stress disorder 122,070 30.3% 2.1% 

9400 Generalized anxiety disorder 92,472 22.9% 1.6% 

9203 Schizophrenic reaction, paranoid type 36,918 9.2% 0.6% 

9204 Schizophrenic reaction, chronic undifferentiated type 24,790 6.1% 0.4% 

9405 Depressive reaction 20,821 5.2% 0.4% 

Source: RCS 20-0227 

 

19 See footnote on page 23

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Chapter 3 Business Beginning FY 2000

Most Prevalent Service-Connected Disabilities within Body Systems 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

Code Body System and Disability Total 

Number

Percent of 

System Total 

Percent of 

Grand Total 

Cardiovascular System 339,195 100.0% 6.0% 

7101 Hypertensive vascular disease 138,329 40.8% 2.4% 

7120 Varicose veins 41,827 12.3% 0.7% 

7122 Cold injury residuals 38,533 11.4% 0.7% 

7005 Arteriosclerotic heart disease 35,568 10.5% 0.6% 

7000 Rheumatic heart disease 13,978 4.1% 0.2% 

Neurological Conditions and Convulsive Disorders 313,252 100.0% 5.5% 

8100 Migraine 39,690 12.7% 0.7% 

8045 Brain disease due to trauma 23,459 7.5% 0.4% 

8515 Median nerve, paralysis of 22,492 7.2% 0.4% 

8516 Ulnar nerve, paralysis of 19,780 6.3% 0.3% 

8520 Sciatic nerve, paralysis of 18,597 5.9% 0.3% 

Respiratory System 293,179 100.0% 5.2% 

6602 Asthma, bronchial 42,569 14.5% 0.7% 

6513 Sinusitis maxillary, chronic 30,117 10.3% 0.5% 

6599 Nose and throat, disease of 25,649 8.7% 0.5% 

6502 Septum, nasal, deviation of 23,320 8.0% 0.4% 

6600 Bronchitis, chronic 16,350 5.6% 0.3% 

Genitourinary System 136,852 100.0% 2.4% 

7599 Genitourinary system condition 27,781 20.3% 0.5% 

7527 Prostate gland injuries, infections, postoperative 24,450 17.9% 0.4% 

7508 Nephrolithiasis 13,310 9.7% 0.2% 

7528 Malignant neoplasm 9,864 7.2% 0.2% 

7512 Cystitis, chronic 8,413 6.1% 0.1% 

Eye 103,704 100.0% 1.8% 

6099 Eye condition 11,627 11.2% 0.2% 

6018 Eye, Conjunctivitis other, chronic 8,983 8.7% 0.2% 

6070 Blindness, light perception only one eye, other normal 7,800 7.5% 0.1% 

6066 Blindness, anatomical loss one eye, other normal 6,798 6.6% 0.1% 

6009 Eye, injury of, unhealed 6,487 6.3% 0.1% 

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

Most Prevalent Service-Connected Disabilities within Body Systems 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

Code Body System and Disability Total 

Number 

Percent of 

System Total 

Percent of 

Grand Total

Endocrine System 57,576 100.0% 1.0% 

7913 Diabetes mellitus 37,808 65.7% 0.7% 

7903 Hypothyroidism 8,357 14.5% 0.1% 

7900 Hyperthyroidism 4,354 7.6% 0.1% 

7999 Endocrine system condition 2,177 3.8% 0.0% 

7914 Neoplasm, malignant, endocrine system 1,195 2.1% 0.0% 

Infectious Diseases, Immune Disorders, Nutritional 

Deficiencies 

49,042 100.0% 0.9% 

6304 Malaria 35,497 72.4% 0.6% 

6399 Infectious disease, immune disorder, nutritional deficiency 3,351 6.8% 0.1% 

6351 HIV-Related illness 2,441 5.0% 0.0% 

6350 Lupus erythematosus, systemic 1,567 3.2% 0.0% 

6313 Avitaminosis 1,349 2.8% 0.0% 

Gynecological Conditions 32,004 100.0% 0.6% 

7617 Uterus and ovaries, removal of, complete 6,357 19.9% 0.1% 

7618 Uterus, removal of, including corpus 6,069 19.0% 0.1% 

7699 Gynecological condition or disorder of the breast 5,843 18.3% 0.1% 

7619 Ovaries, removal of 2,660 8.3% 0.0% 

7628 Benign neoplasms, gynecological or breast 2,484 7.8% 0.0% 

Dental and Oral Conditions 25,798 100.0% 0.5% 

9999 Dental and oral conditions 7,894 30.6% 0.1% 

9904 Mandible, malunion of 6,637 25.7% 0.1% 

9905 Temporomandibular articulation, limited motion 6,612 25.6% 0.1% 

9913 Teeth, loss of, due to loss of body of maxilla or mandible 1,381 5.4% 0.0% 

9910 Maxilla, loss of whole or part, nonunion of or malunion of 1,061 4.1% 0.0% 

Hemic & Lymphatic Systems 20,792 100.0% 0.4% 

7706 Splenectomy 7,575 36.4% 0.1% 

7799 Hemic & lymphatic system condition 3,966 19.1% 0.1% 

7709 Lymphoganulomatosis (Hodgkin's disease) 2,620 12.6% 0.0% 

7715 Non-Hodgkin's lymphoma 2,069 10.0% 0.0% 

7700 Anemia, hypochromic-microcytic & megaloblastic 1,197 5.8% 0.0% 

Grand Total - All Body Systems 5,680,190 100.0% 100.0% 

Source: RCS 20-0227 

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Chapter 3 Business Beginning FY 2000

By The 20 Most Prevalent Disabilities 

The next table identifies the 20 most prevalent service-connected disabilities (by diagnostic 

code) among veterans receiving compensation at the beginning of fiscal year 2000. 

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 5,680,190 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, 44.6 

percent of all disabilities rated service-connected are accounted for by the 20 most prevalent 

service-connected diagnostic codes. 

Most Prevalent Disabilities 

For Veterans Receiving Compensation 

Beginning of Fiscal Year 2000 

Diagnostic 

Code 

Disability Total Percent 

Within System

FY 2000 

Percent of 

Total 

FY 2000 

Cumulative 

Percent 

FY 2000 

TOTAL NUMBER OF DISABILITIES IN FY 2000 5,680,190 100.0% 

7805 Scars, other20 283,286 39.8% 5.0% 5.0% 

5299 Skeletal conditions 234,610 10.3% 4.1% 9.1% 

5257 Knee, other impairment of 223,214 9.8% 3.9% 13.0% 

5010 Arthritis, due to trauma 170,603 7.5% 3.0% 16.1% 

5295 Lumbosacral strain 163,639 7.2% 2.9% 18.9% 

7101 Hypertensive vascular disease 138,329 40.8% 2.4% 21.4% 

6260 Tinnitus 128,591 26.6% 2.3% 23.6% 

5293 Intervertegral disc syndrome 125,191 5.5% 2.2% 25.8% 

7336 Hemorrhoids, external or internal 122,113 28.4% 2.1% 28.0% 

9411 Post-traumatic stress disorder 122,070 30.3% 2.1% 30.1% 

6100 Auditory, acuity impairment, 0% 119,041 24.6% 2.1% 32.2% 

7800 Scars, disfiguring, head, face, neck 93,438 13.1% 1.6% 33.9% 

9400 Generalized anxiety disorder 92,472 22.9% 1.6% 35.5% 

5003 Arthritis, degenerative 91,872 4.0% 1.6% 37.1% 

7899 Skin condition 82,832 11.6% 1.5% 38.6% 

6297 Hearing loss 78,014 16.1% 1.4% 40.0% 

7804 Scars, superficial, tender, painful 69,642 9.8% 1.2% 41.2% 

5271 Ankle, limited motion of 66,463 2.9% 1.2% 42.3% 

7305 Ulcer, duodenal 64,241 15.0% 1.1% 43.5% 

5284 Foot injuries, other 61,077 2.7% 1.1% 44.6% 

Source: RCS 20-0227 

 

20 See footnote on page 23

90
Chapter 3 Business Beginning FY 2000

By Period of Service 

The next five tables in this section show the 10 service-connected disabilities most prevalent 

(by diagnostic code) among veterans of World War II, the Korean War, the Vietnam Era, the 

Gulf War Era, and the various Peacetime periods. In addition, grand totals for each of those 

five periods are shown. Data for WWI veterans and other periods with very few beneficiaries 

are not included. 

Most Prevalent Disabilities - World War II Service 

Beginning of Fiscal Year 2000 

Diagnostic 

Code 

Disability Number of 

Disabilities 

Percent of 

Total 

9400 Generalized anxiety disorder 58,681 6.0% 

7805 Scars, other21 46,923 4.8% 

5010 Arthritis, due to trauma 30,540 3.1% 

7122 Cold injury residuals 25,402 2.6% 

5276 Flatfoot, acquired 25,236 2.6% 

7804 Scars, superficial, tender, painful 20,562 2.1% 

7800 Scars, disfiguring, head, face, neck 17,819 1.8% 

5314 Muscle injuries, thigh 16,386 1.7% 

5311 Muscle injuries, foot and leg 16,375 1.7% 

6304 Malaria 15,953 1.6% 

Total Number of Disabilities1 969,991 

Average Number of Disabilities Per Veteran 1.79 

Total Number of Disability Codes 873 

Total World War II Veterans With Compensation2 541,225 

Percent of All Veterans With Compensation 23.6% 

Total World War II Veteran Population3 5,940,000 

Percent of Total Veteran Population4 23.9% 

1

 Source: RCS 20-0227 

2

 Source: RCS 20-0221 

3

 Source: VA Office of Planning and Analysis – Veteran Population as of July 1, 1999 4

 Total Veteran Population as of July 1, 1999 - 24,803,000 (Source: VA Office of Planning and Analysis) 

 

21 See footnote on page 23

91
Chapter 3 Business Beginning FY 2000

Most Prevalent Disabilities – Korean War 

Beginning of Fiscal Year 2000 

Diagnostic 

Code 

Disability Number of 

Disabilities 

Percent of 

Total 

7805 Scars, other22 18,879 5.4% 

7305 Ulcer, duodenal 9,033 2.6% 

5010 Arthritis, due to trauma 8,903 2.5% 

7122 Cold injury residuals 8,036 2.3% 

9400 Generalized anxiety disorder 7,554 2.1% 

5299 Skeletal conditions 6,914 2.0% 

5257 Knee, other impairment of 6,862 1.9% 

7804 Scars, superficial, tender, painful 6,801 1.9% 

7800 Scars, disfiguring, head, face, neck 6,713 1.9% 

7336 Hemorrhoids, external or internal 6,414 1.8% 

Total Number of Disabilities1 352,236 

Average Number of Disabilities Per Veteran 2.01 

Total Number of Disability Codes 844 

Total Korean War Veterans With Compensation2 174,807 

Percent of All Veterans With Compensation 7.6% 

Total Korean War Veteran Population3 4,064,000 

Percent of Total Veteran Population4 16.4% 

1

 Source: RCS 20-0227 

2

 Source: RCS 20-0221 

3

 Source: VA Office of Planning and Analysis – Veteran Population as of July 1, 1999 4

 Total Veteran Population as of July 1, 1999 - 24,803,000 (Source: VA Office of Planning and Analysis)

 

22 See footnote on page 23

92
Chapter 3 Business Beginning FY 2000

Most Prevalent Disabilities – Vietnam Era Service 

Beginning of Fiscal Year 2000 

Diagnostic 

Code 

Disability Number of 

Disabilities 

Percent of 

Total 

7805 Scars, other23 127,023 6.2% 

9411 Post-traumatic stress disorder 90,695 4.5% 

5299 Skeletal conditions 82,446 4.1% 

5257 Knee, other impairment of 67,836 3.3% 

7101 Hypertensive vascular disease 56,231 2.8% 

5295 Lumbosacral strain 53,619 2.6% 

7336 Hemorrhoids, external or internal 51,289 2.5% 

6297 Hearing loss 50,184 2.5% 

6260 Tinnitus 49,388 2.4% 

5010 Arthritis, due to trauma 48,263 2.4% 

Total Number of Disabilities1 2,032,762 

Average Number of Disabilities Per Veteran 2.76 

Total Number of Disability Codes 875 

Total Vietnam Era Veterans With Compensation2 735,627 

Percent of All Veterans With Compensation 32.1% 

Total Vietnam Era Veteran Population3 8,113,000 

Percent of Total Veteran Population4 32.7% 

1

 Source: RCS 20-0227 

2

 Source: RCS 20-0221 

3

 Source: VA Office of Planning and Analysis – Veteran Population as of July 1, 1999 4

 Total Veteran Population as of July 1, 1999 - 24,803,000 (Source: VA Office of Planning and Analysis)

 

23 See footnote on page 23

93
Chapter 3 Business Beginning FY 2000

Most Prevalent Disabilities – Gulf War Era Service 

Beginning of Fiscal Year 2000 

Diagnostic 

Code 

Disability Number of 

Disabilities 

Percent of 

Total 

5299 Skeletal conditions 59,337 6.6% 

5257 Knee, other impairment of 56,320 6.2% 

5295 Lumbosacral strain 41,687 4.6% 

5010 Arthritis, due to trauma 35,304 3.9% 

7805 Scars, other24 33,719 3.7% 

6260 Tinnitus 30,053 3.3% 

7101 Hypertensive vascular disease 28,405 3.1% 

6100 Auditory, acuity impairment, 0% 28,208 3.1% 

5293 Intervertegral disc syndrome 26,788 3.0% 

5271 Ankle, limited motion of 19,652 2.2% 

Total Number of Disabilities1 903,110 

Average Number of Disabilities Per Veteran 3.20 

Total Number of Disability Codes 835 

Total Gulf War Era Veterans With Compensation2 282,140 

Percent of All Veterans With Compensation 12.3% 

Total Gulf War Era Veteran Population3 2,223,000 

Percent of Total Veteran Population4 9.0% 

1

 Source: RCS 20-0227 

2

 Source: RCS 20-0221 

3

 Source: VA Office of Planning and Analysis – Veteran Population as of July 1, 1999 4

 Total Veteran Population as of July 1, 1999 - 24,803,000 (Source: VA Office of Planning and Analysis)

 

24 See footnote on page 23

94
Chapter 3 Business Beginning FY 2000

Most Prevalent Disabilities – Peacetime Periods 

Beginning of Fiscal Year 2000 

Diagnostic 

Code 

Disability Number of 

Disabilities 

Percent of 

Total 

5257 Knee, other impairment of 80,357 5.7% 

5299 Skeletal conditions 75,665 5.4% 

7805 Scars, other25 56,311 4.0% 

5295 Lumbosacral strain 52,902 3.7% 

7101 Hypertensive vascular disease 48,896 3.5% 

5010 Arthritis, due to trauma 47,479 3.4% 

5293 Intervertegral disc syndrome 39,323 2.8% 

6100 Auditory, acuity impairment, 0% 37,657 2.7% 

7336 Hemorrhoids, external or internal 36,172 2.6% 

6260 Tinnitus 32,843 2.3% 

Total Number of Disabilities1 1,411,226 

Average Number of Disabilities Per Veteran 2.52 

Total Number of Disability Codes 884 

Total Peacetime Veterans With Compensation2 560,567 

Percent of All Veterans With Compensation 24.4% 

Total Peacetime Veteran Population3 5,835,000 

Percent of Total Veteran Population4 23.5% 

1

 Source: RCS 20-0227 

2

 Source: RCS 20-0221 

3

 Source: VA Office of Planning and Analysis – Veteran Population as of July 1, 1999 4

 Total Veteran Population as of July 1, 1999 - 24,803,000 (Source: VA Office of Planning and Analysis)

 

25 See footnote on page 23

95
Chapter 3 Business Beginning FY 2000

g. Demographic Characteristics of Veterans Receiving Compensation 

This section presents age and period of service information about all veterans with serviceconnected disabilities and in receipt of compensation at the beginning of fiscal year 2000. 

By Age 

The first table in this section shows the distribution, by age, of all veterans receiving 

compensation. The age group with the most veterans and receiving the highest total 

dollar amount is highlighted in yellow. 

Service-Connected Disability Compensation 

By Age 

Beginning of Fiscal Year 2000 

Age Total Veterans Percent of 

All Ages 

Annual Payments 

Under 20 117 0.0% $292,116 

20 - 29 80,780 3.5% $269,759,388 

30 - 39 209,468 9.1% $972,553,728 

40 - 49 405,979 17.7% $2,396,152,944 

50 - 59 566,211 24.7% $4,020,435,564 

60 - 69 329,374 14.4% $2,098,661,664 

70 - 79 498,862 21.7% $2,998,043,100 

 80 - 89 194,932 8.5% $1,099,952,028 

90 and Over 8,679 0.4% $46,663,512 

Ages Unknown 51 0.0% $56,064 

ALL AGES 2,294,453 100.0% $13,902,570,108 

Average Age of Veterans: 59 Mean Age of Veterans: 55 

Source: RCS 20-0236 

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Chapter 3 Business Beginning FY 2000

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. For each combined disability 

rating level, yellow highlighting indicates the largest group of veterans, by service period, 

rated at that level. 

Service-Connected Disability Compensation 

By Period of Service and Combined Percent of Disability 

Beginning of Fiscal Year 2000 

Combined 

Percent 

World 

War I1 

World War 

II 

Korean 

War 

Vietnam 

War 

Gulf War 

Era 

Peacetime 

Periods 

Total For All 

Periods 

0% 1 8,007 5,235 1,540 445 2,733 17,961

Percent of All Periods 0.0% 44.6% 29.1% 8.6% 2.5% 15.2% 100.0%

10% 16 207,107 58,590 232,299 113,505 242,027 853,544

Percent of All Periods 0.0% 24.3% 6.9% 27.2% 13.3% 28.4% 100.0%

20% 14 75,246 24,755 104,403 59,182 106,841 370,441

Percent of All Periods 0.0% 20.3% 6.7% 28.2% 16.0% 28.8% 100.0%

30% 13 78,968 24,062 102,419 40,477 63,452 309,391

Percent of All Periods 0.0% 25.5% 7.8% 33.1% 13.1% 20.5% 100.0%

40% 6 44,889 14,733 66,317 27,800 40,406 194,151

Percent of All Periods 0.0% 23.1% 7.6% 34.2% 14.3% 20.8% 100.0%

50% 6 29,810 8,975 43,207 12,686 21,369 116,053

Percent of All Periods 0.0% 25.7% 7.7% 37.2% 10.9% 18.4% 100.0%

60% 7 31,527 11,150 40,558 11,057 23,845 118,144

Percent of All Periods 0.0% 26.7% 9.4% 34.3% 9.4% 20.2% 100.0%

70% 4 18,577 6,632 33,523 5,866 13,332 77,934

Percent of All Periods 0.0% 23.8% 8.5% 43.0% 7.5% 17.1% 100.0%

80% 2 12,575 4,305 19,609 3,418 8,174 48,083

Percent of All Periods 0.0% 26.2% 9.0% 40.8% 7.1% 17.0% 100.0%

90% 1 5,761 2,057 9,328 1,372 3,750 22,269

Percent of All Periods 0.0% 25.9% 9.2% 41.9% 6.2% 16.8% 100.0%

100% 17 28,758 14,313 82,424 6,332 34,638 166,482

Percent of All Periods 0.0% 17.3% 8.6% 49.5% 3.8% 20.8% 100.0%

Total Receiving Comp. 87 541,225 174,807 735,627 282,140 560,567 2,294,453

Percent of All Periods 0.0% 23.6% 7.6% 32.1% 12.3% 24.4% 100.0%

Total Veterans2 3,400 5,940,000 4,064,000 8,113,000 2,223,000 5,835,000 24,803,0003 

Percent of All Veterans 0.0% 23.9% 16.4% 32.7% 9.0% 23.5% 100.0%

Source: RCS 20-0223 

1

 Includes 8 veterans with Mexican Border service 2

 Source: VA Office of Planning and Analysis – Veteran Population as of July 1, 1999 3 Veterans who served in more than one war period only counted once in total. 

97
Chapter 3 Business Beginning FY 2000

 2. COMPENSATION - BASED UPON SERVICE-CONNECTED DEATH

a. Total Number Of Beneficiaries Receiving DIC/Death Compensation Benefits At The 

 Beginning Of Fiscal Year 2000 

This table shows the number of survivors receiving DIC or Death Compensation benefits, the 

total projected annual payment amount to beneficiaries, and the projected average annual 

payment amount to each beneficiary. 

Total Beneficiaries Receiving 

Service-Connected Death Benefits 

Beginning of Fiscal Year 2000 

Type of Benefit Number Percent of 

Total 

Total 

Annual Amounts 

Average 

Annual 

Amounts 

DIC - Surviving Spouses 284,311 91.2% $3,227,826,583 $11,353 

DIC - Surviving Children 13,219 4.2% $66,487,902 $5,030 

DIC - Surviving Parents 11,634 3.7% $26,941,444 $2,316 

SUBTOTAL 309,164 99.2% $3,321,255,929 $10,743 

Death Compensation 2,467 0.8% $2,401,068 $973 

GRAND TOTAL 311,631 100.0% $3,323,656,997 $10,665 

Source: COIN CP-127 and RCS 20-0221 

b. Demographic Characteristics of All DIC and Death Compensation Beneficiaries 

This section provides demographic characteristics of survivors receiving DIC or Death 

Compensation benefits at the beginning of fiscal year 2000. 

By The Veteran’s Period of Service 

The first table shows total survivors receiving DIC or Death Compensation sorted by the 

veteran’s period of service. Also shown are projected total annual payment amounts and 

average annual payment amounts, by period of service and program.

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Chapter 3 Business Beginning FY 2000

Total Beneficiaries Receiving Service-Connected Death Benefits 

By Period of Service 

Beginning of Fiscal Year 2000 

Period of Service Number of 

Beneficiaries1 

Percent of 

Beneficiaries 

Total 

Annual Amounts2

 

Average 

Annual 

Amounts 

 Civil War 1 0.0% $11,003 $11,003 

 Death Compensation 0 0.0% $0 $0 

 DIC 1 0.0% $11,003 $11,003 

 Spanish American War 15 0.0% $165,047 $11,003 

 Death Compensation 0 0.0% $0 $0 

 DIC 15 0.0% $165,047 $11,003 

 Mexican Border Period 3 0.0% $33,009 $11,003 

 Death Compensation 0 0.0% $0 $0 

 DIC 3 0.0% $33,009 $11,003 

 World War I 3,466 1.1% $37,224,496 $10,740 

 Death Compensation 1 0.0% $973 $973 

 DIC 3,465 1.1% $37,223,523 $10,743 

 World War II 118,926 38.2% $1,265,984,848 $10,645 

 Death Compensation 1,187 48.1% $1,155,277 $973 

 DIC 117,739 38.1% $1,264,829,571 $10,743 

 Korean Conflict 37,476 12.0% $391,676,541 $10,451 

 Death Compensation 1,118 45.3% $1,088,121 $973 

 DIC 36,358 11.8% $390,588,421 $10,743 

 Vietnam Era 103,199 33.1% $1,108,610,326 $10,742 

 Death Compensation 3 0.1% $2,920 $973 

 DIC 103,196 33.4% $1,108,607,407 $10,743 

 Gulf War Era 6,510 2.1% $69,935,771 $10,743 

 Death Compensation 0 0.0% $0 $0 

 DIC 6,510 2.1% $69,935,771 $10,743 

 Peacetime 42,034 13.5% $450,015,955 $10,706 

 Death Compensation 158 6.4% $153,777 $973 

 DIC 41,876 13.5% $449,862,177 $10,743 

 All Periods 311,631 100.0% $3,323,656,997 $10,665 

 Death Compensation 2,467 100.0% $2,401,068 $973 

 DIC 309,164 100.0% $3,321,255,929 $10,743 

Source: 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 CP127 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.

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Chapter 3 Business Beginning FY 2000

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 2000 

Surviving 

Spouse Children Parent Total 

Beneficiaries 

Number 284,311 13,219 11,634 309,164 

Percent 92.0% 4.3% 3.8% 100.0% 

Source: 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, are presented in the following table. 

Surviving Spouses Receiving DIC 

by Age 

Beginning of Fiscal Year 2000 

Age Number Percent of All 

Ages 

Annual 

Payments 

Under Age 25 219 0.1% $2,415,514 

25 - 35 2,915 1.0% $31,382,606 

36 - 45 9,854 3.5% $107,004,189 

46 - 55 27,160 9.6% $300,284,519 

56 - 65 43,650 15.4% $494,702,778 

66 - 75 81,638 28.7% $935,878,146 

Over 75 118,875 41.8% $1,356,158,831 

All Ages 284,311 100.0% $3,227,826,583 

Source: 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 2000 

Surviving Spouses 

Without Dependents 

Surviving Spouses 

with Dependents 

Total 

Surviving Spouses1 

Number 273,131 11,176 284,307 

Percent 96.1% 3.9% 100.0% 

Source: COIN CP-127 

1 Four surviving spouse records did not show status of dependents. 

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Chapter 3 Business Beginning FY 2000

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 and those who are eligible because 

of incapacity for self support prior to age 18 

Children Receiving DIC 

By Age 

Beginning of Fiscal Year 2000 

Under Age 181 Age 18 and 

Over in School

Age 18 and Over 

and Helpless 

Total All 

Categories 

Number 4,949 1,339 6,931 13,219 

Percent 37.4% 10.1% 52.4% 100.0% 

Annual Payments $24,060,547 $3,643,419 $38,783,935 $66,487,902 

Source: COIN CP-127 

1 Includes 2,679 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 are: 

 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 

 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 Fiscal Year 2000 

No 

Spouse 

Spouse Apart Together Remarried Total 

Number 8,471 151 1,644 1,259 109 11,634 

Percent 72.8% 1.3% 14.1% 10.8% 0.9% 100.0% 

Annual 

Payments 

$22,259,755 $247,519 $3,026,275 $1,259,554 $148,340 $26,941,444 

Source: COIN CP-127 

101
Chapter 3 Business Beginning FY 2000

 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 2000 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 of Fiscal Year 2000 

Type of Pension Number of 

Veterans 

Percent of 

Total 

Total Annual 

Amounts 

Average Annual 

Amounts 

PL 95-588 - New Law Pension 350,240 92.5% $2,103,574,632 $6,006 

Section 306 Pension 28,124 7.4% $46,110,468 $1,640 

Protected Pension 348 0.1% $358,992 $1,032 

TOTAL 378,712 100.0% $2,150,044,092 $5,677 

Source: RCS 20-0221 

b. Demographic Characteristics of Veterans Receiving Disability Pension at the 

 Beginning of Fiscal Year 2000 

By Age 

The number and projected total annual amount of disability pension payments for each 

age group is shown in the next table. For each category of pension, yellow highlighting 

indicates the age group with the most veteran beneficiaries. 

Total Veterans Receiving Disability Pension 

By Age 

Beginning of Fiscal Year 2000 

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 

Under Age 20 0 0.0% 3 0.0% 3 0.0% 

20 - 29 0 0.0% 321 0.1% 321 0.1% 

30 - 39 0 0.0% 663 0.2% 663 0.2% 

40 - 49 238 0.8% 33,073 9.4% 33,311 8.8% 

50 - 59 936 3.3% 62,120 17.7% 63,056 16.7% 

60 - 69 3,869 13.6% 65,106 18.6% 68,975 18.2% 

70 - 79 13,227 46.5% 135,160 38.6% 148,387 39.2% 

80 - 89 8681 30.5% 49130 14.0% 57,811 15.3% 

90 and Over 1521 5.3% 4656 1.3% 6,177 1.6% 

Age Unknown 0 0.0% 8 0.0% 8 0.0% 

All Ages 28,472 100.0% 350,240 100.0% 378,712 100.0% $

Average Age of Veterans: 69 

Source: RCS 20-0236 

1

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

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Chapter 3 Business Beginning FY 2000

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 2000. The total projected annual amount 

of disability pension payments for each period of service is shown in the last column of the 

table. 

 

Nonservice-Connected Disability Pension by Period of Service 

Beginning of Fiscal Year 2000 

Other Pension1 New Law Pension All Pension Programs

Period of 

Service 

Number Percent of 

All Periods

Number Percent of 

All Periods

Totals for 

Period 

Percent of 

All Periods

Mexican Border 0 0.0% 5 0.0% 5 0.0% 

World War I 55 0.2% 251 0.1% 306 0.1% 

World War II 21,749 76.4% 166,783 47.6% 188,532 49.8% 

Korean War 5,439 19.1% 83,485 23.8% 88,924 23.5% 

Vietnam Era 1,229 4.3% 98,525 28.1% 99,754 26.3% 

Gulf War Era 0 0.0% 1,191 0.3% 1,191 0.3% 

All Periods 28,472 100.0% 350,240 100.0% 378,712 100.0% 

Source: RCS 20-0221 

1

 The “Other Pension” category groups the 2 older pension programs (Protected Pension and Section 306 Pension) into one category. 

103
Chapter 3 Business Beginning FY 2000

 4. PENSION - BASED UPON NONSERVICE-CONNECTED DEATH 

a. Total Number of Beneficiaries Receiving Death Pension at the Beginning of Fiscal 

 Year 2000 

The number of beneficiaries receiving death pension at the beginning of fiscal year 2000, 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 of Fiscal Year 2000 

Type of Pension Number of 

Beneficiaries 

Percent of 

Total 

Total Annual 

Amounts 

Average

Amo

PL 95-588 - New Law Pension 187,544 68.4% $597,902,676 

Section 306 Pension 84,818 30.9% $88,595,364 

Protected Pension 1,744 0.6% $1,221,144 

TOTAL 274,106 100.0% $687,719,184 

Source: RCS 20-0221 

b. Demographic Characteristics of Beneficiaries Receiving Death Pension at the 

 Beginning of Fiscal Year 2000 

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. 

Total Surviving Spouses Receiving Death Pension 

By Age 

Beginning of Fiscal Year 2000 

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 P

Under Age 25 4 0.0% 228 0.1% 232 0.1% 

25 - 35 19 0.0% 480 0.3% 499 0.2% 

36 - 45 93 0.1% 4,048 2.2% 4,141 1.6% $

46 - 55 703 1.0% 17,032 9.4% 17,735 6.9% $

56 - 65 2,277 3.1% 33,841 18.6% 36,118 14.1% $1

66 - 75 13,151 17.8% 48,122 26.5% 61,273 24.0% $1

Over 75 57,603 78.0% 78,142 43.0% 135,745 53.1% $3

All Ages 73,850 100.0% 181,893 100.0% 255,743 100.0% $6

Source: COIN CP-103 

1

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

104
Chapter 3 Business Beginning FY 2000

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 next table. The table 

also includes projected annual payments. The largest group is highlighted in yellow. 

Nonservice-Connected Death Pension by Period of Service 

Beginning of Fiscal Year 2000 

Other Pension1 New Law Pension All Pension Programs 

Period of 

Service 

Number Percent of 

All Periods

Number Percent of 

All Periods 

Totals for 

Period 

Percent of 

All Periods

An

Pay

Wars of the 

1800s2

642 0.7% 442 0.2% 1,084 0.4% $2,

World War I 18,625 21.5% 19,469 10.4% 38,094 13.9% $75,

World War II 62,136 71.8% 123,272 65.7% 185,408 67.6% $406,

Korean War 4,373 5.1% 28,511 15.2% 32,884 12.0% $119,

Vietnam Era 786 0.9% 15,718 8.4% 16,504 6.0% $83,

Gulf War Era 0 0.0% 132 0.1% 132 0.0% $

All Periods 86,562 100.0% 187,544 100.0% 274,106 100.0% $687,

Source: 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. 

105
Chapter 3 Business Beginning FY 2000

 5. EDUCATION 

a. Beneficiaries Receiving Education Benefits at the Beginning of Fiscal Year 2000 

Number of veterans and dependents receiving education benefits at the beginning of fiscal 

year 2000 in each education benefit program is shown in the following table. 

Beneficiaries Receiving Education Benefits 

Beginning of Fiscal Year 2000 

Program Number of 

Beneficiaries 

Percent 

of Total 

Dependents Education 20,367 8.4% 

Montgomery GI Bill - Active Duty1 175,754 72.2% 

Montgomery GI Bill – Reserves2 46,054 18.9% 

Post-Vietnam Veterans Education 1,278 0.5% 

Total 243,453 100.0% 

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 next table 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 2000. The 

most frequent type of training and the program with the largest enrollment are highlighted 

in yellow. 

Beneficiaries Receiving Education Benefits 

By Type Of Training and Program 

Beginning of Fiscal Year 2000 

Education Program College, 

Non-Degree

Graduate UnderGraduateVocational/ 

Technical 

Program

Totals 

Percent

of All 

Program

s 

Dependents Education 219 723 18,146 1,279 20,367 8.4% 

Montgomery GI Bill - Active Duty1 2,267 12,165 152,814 8,508 175,754 72.2% 

Montgomery GI Bill – Reserves2 355 2,411 42,637 651 46,054 18.9% 

Post-Vietnam Veterans Education 11 303 917 47 1,278 0.5% 

Type Training Totals 2,852 15,602 214,514 10,485 243,453 100.0% 

Percent of Program Totals 1.2% 6.4% 88.1% 4.3% 

Source: Education Service SAS Reports 

1

 Based on Active Duty service 

2

 Based on service in the Selected Reserve 

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Chapter 3 Business Beginning FY 2000

By Training Time 

The distribution, by program, of the training times of the beneficiaries using their education 

benefit at the beginning of fiscal year 2000 is presented in the next table. The most 

frequent training time and the program with the largest enrollment are highlighted in 

yellow. 

Beneficiaries Receiving Education Benefits 

By Training Time and Program 

Beginning of Fiscal Year 2000 

Education Program Less Than 

One-Half 

Time 

Half 

Time 

Three 

Quarter 

Time 

Full 

Time 

Program

Totals 

Percent 

of All 

Programs

Dependents Education 1,486 1,759 2,221 14,901 20,367 8.4% 

Montgomery GI Bill - Active Duty1 14,170 31,735 23,732 106,117 175,754 72.2% 

Montgomery GI Bill – Reserves2 2,588 5,201 4,804 33,461 46,054 18.9% 

Post-Vietnam Veterans Education 258 305 161 554 1,278 0.5% 

Training Time Totals 18,502 39,000 30,918 155,033 243,453 100.0% 

Percent of Program Totals 7.6% 16.0% 12.7% 63.7% 

Source: Education Service SAS Reports 

1

 Based on Active Duty service 

2

 Based on service in the Selected Reserve 

107
Chapter 3 Business Beginning FY 2000

 6. LIFE INSURANCE

a. Total Number of Policyholders and the Value of Their Coverage

The next table 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 2000 

Insurance Number of 

Policies 

Total 

Face Value 

Average Face 

Value 

Maximum 

Face Value 

USGLI1 17,973 $59,039,453 $3,285 $10,000 

NSLI1 1,802,101 $17,661,884,522 $9,801 $10,000 

VSLI1 233,893 $2,698,956,526 $11,539 $10,000 

VRI1 82,545 $675,118,517 $8,179 $10,000 

SDVI1 154,410 $1,440,384,301 $9,328 $10,0002 

VMLI3 3,518 $200,689,114 $57,046 $90,000 

SGLI4 2,328,500 $429,981,500,000 $184,660 $200,000 

VGLI4 363,660 $31,899,260,000 $87,717 $200,000 

TOTAL 4,986,600 $484,616,832,433 $97,184 

1 Source: Insurance Statistical Report - 700 

2

 Additional $20,000 available for totally disabled policyholders 

3

 Source: VMLI Quarterly Report 

4

 Source: OSGLI Monthly Report 

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Chapter 3 Business Beginning FY 2000

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 2000 

Payment Type Number of 

Awards 

Annual 

Payments 

Average 

Payment 

Death Awards 

USGLI 3,743 $1,171,800 $313 

NSLI 58,539 $36,850,554 $630 

VSLI 849 $686,634 $809 

VRI 332 $207,012 $624 

SDVI 329 $148,368 $451 

TOTAL 63,792 $39,064,368 $612 

Total Disability Income Provision 

USGLI 100 $63,432 $634 

NSLI 19,538 $22,843,530 $1,169 

VSLI 3,308 $4,749,570 $1,436 

VRI 972 $747,144 $769 

TOTAL 23,918 $28,403,676 $1,188 

Matured Endowments 

USGLI 1 $876 $876 

NSLI 1,308 $1,619,526 $1,238 

VSLI 902 $1,561,830 $1,732 

VRI 88 $113,280 $1,287 

SDVI 15 $14,664 $978 

TOTAL 2,314 $3,310,176 $1,430 

Cash Surrenders 

USGLI 2 $1,056 $528 

NSLI 69 $56,106 $813 

VSLI 2 $9,744 $4,872 

VRI 3 $1,512 $504 

SDVI 0 $0 $0 

TOTAL 76 $68,418 $900 

Total and Permanent Disability 

USGLI 167 $48,516 $291 

TOTAL 167 $48,516 $291 

GRAND TOTAL 90,267 $70,895,154 $785 

Source: AVS - 2012 

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Chapter 3 Business Beginning FY 2000

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 force. 

Rankings based upon 1999 data were not available at the time of publication. Therefore, 1998 

data were used for the comparison. 

1998 Rankings by Total Life Insurance In-Force 

Rank Company Total Insurance 

1 Metropolitan Life $1,545,453,000,000 

2 Prudential of America $1,013,109,000,000 

3 Connecticut General Life $543,369,000,000 

4 Northwestern Mutual Life $536,379,000,000 

VA $499,932,000,000 

5 Transamerica Occidental Life $498,247,000,000 

6 New York Life $440,527,000,000 

Source: Best's Review, July 1999. Compilation of 1998 data. 

110
Chapter 3 Business Beginning FY 2000

d. Demographic Characteristics of Policyholders

By Age

The next table shows the age distribution of policyholders in VA insurance programs. The 

age groups that have the greatest percentage of policyholders in each program are 

highlighted in yellow. 

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 

< 19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90 > Total Average 

Age 

USGLI 5,823 11,596 554 17,973 82.6 

% of Total 0% 0% 0% 0% 0% 0% 32% 65% 3% 100%

NSLI 211,049 1,140,038 432,923 18,091 1,802,101 75.4 

% of Total 0% 0% 0% 0% 0% 12% 63% 24% 1% 100%

VSLI 15 187,748 44,684 1,397 49 233,893 67.6 

% of Total 0% 0% 0% 0% 0% 80% 19% 1% 0% 100%

VRI 2 7,083 54,546 20,540 374 82,545 76.0 

% of Total 0% 0% 0% 0% 0% 9% 66% 25% 0% 100%

SDVI 3 1,184 7,562 32,745 58,381 40,419 12,401 1,681 34 154,410 54.7 

% of Total 0% 1% 5% 21% 38% 26% 8% 1% 0% 100%

VMLI 53 370 815 1,600 680 3,518 50.1 

% of Total 0% 2% 11% 23% 45% 19% 0% 0% 0% 100%

SGLI1 184,675 1,023,954 699,406 265,803 66,664 998 2,241,500 30.5 

% of Total 8% 46% 31% 12% 3% 0% 0% 0% 0% 100%

VGLI 104 57,558 123,766 84,053 80,246 18,548 0 0 0 364,275 38.7 

% of Total 0% 16% 34% 23% 22% 5% 0% 0% 0% 100%

TOTALS 184,782 1,082,749 831,104 383,416 206,908 466,525 1,257,492 468,137 19,102 4,900,215 

% by Age Group 4% 22% 17% 8% 4% 10% 26% 10% 0% 100%

Source: AVS - 2010 

All data as of September 30, 1999 with the exception of SGLI and VGLI, which are as of December 31, 1999. 

1

 Includes both Active Duty and Ready Reservists 

111
Chapter 3 Business Beginning FY 2000

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 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 476,236 469,801 98.6% 21.2% 

Navy Active 397,847 386,822 97.2% 17.4% 

Air Force Active 361,876 346,854 95.8% 15.6% 

Marine Corps Active 178,571 176,819 99.0% 8.0% 

Coast Guard Active 35,588 34,405 96.7% 1.6% 

NOAA 229 210 91.7% 0.0% 

Public Health Service 5,840 5,628 96.4% 0.3% 

TOTAL 1,456,187 1,420,539 97.6% 64.0% 

Army Reserve/Guard 570,554 531,307 93.1% 23.9% 

Navy Reserve 74,891 68,554 91.5% 3.1% 

Air Force Reserve/Guard 181,637 167,526 92.2% 7.5% 

Marine Corps Reserve 24,272 23,784 98.0% 1.1% 

Coast Guard Reserve 8,310 7,200 86.6% 0.3% 

TOTAL 859,664 798,371 92.9% 36.0% 

GRAND TOTAL 2,315,851 2,218,910 95.8% 100.0% 

Source: September 1999 SGLI Monthly Premium Payment Reports From Each Branch of Service 

112
Chapter 3 Business Beginning FY 2000

By Amount of SGLI Coverage 

Note: SGLI coverage of up to $200,000 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. Yellow highlighting indicates the coverage level with the most 

members. 

SGLI Coverage 

By Coverage Level 

Coverage Level 

$10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 

Number with Coverage 29,430 9,735 3,676 2,230 33,281 2,198 1,421 

Percent with Coverage 1.33% 0.44% 0.17% 0.10% 1.50% 0.10% 0.06% 

$80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 

Number with Coverage 1,717 794 175,763 2,259 3,953 1,038 717 

Percent with Coverage 0.08% 0.04% 7.92% 0.10% 0.18% 0.05% 0.03% 

$150,000 $160,000 $170,000 $180,000 $190,000 $200,000 TOTAL 

Number with Coverage 15,675 782 605 995 568 1,932,073 2,218,910 

Percent with Coverage 0.71% 0.04% 0.03% 0.04% 0.03% 87.07% 100% 

Source: September 1999 SGLI Monthly Premium Payment Reports From Each Branch of Service 

113
Chapter 3 Business Beginning FY 2000

 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 2000. 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 2000 

Type of Loan Number 

of Loans 

Percent 

of Total 

Total Loan 

Amount 

Average 

Loan 

Amount 

Total Guaranty 

Amount 

Average 

Guaranty 

Amount 

Purchase Loans 2,317,242 72.4% $161,582,142,413 $69,730 $57,743,651,072 $24,919 

Refinance – 

Interest Rate Reduction 

771,108 24.1% $73,027,133,088 $94,704 $23,613,901,650 $30,623 

Refinance - 

Other Reasons 

113,349 3.5% $8,568,345,058 $75,593 $2,930,173,805 $25,851 

TOTAL 3,201,699 100.0% $243,177,620,559 $75,953 $84,287,726,527 $26,326 

Source: LGY SAS act3type 

b. Direct Loan Program 

The next table provides information about the Direct Loans to Native American Veterans 

program. 

Active Loans as of December 21, 1999 

For Direct Loan Program 

Programs Number of Loans Amount of 

Grants/Loans 

Average Grant/Loan 

Amount 

Direct Loans to Native Americans 165 $12,755,106 $77,304 

Source: LGY SAS 

114
Chapter 3 Business Beginning FY 2000

c. 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 20001 

Status Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average

Loan 

Amount

Total Guaranty 

Amount 

Average

Guaranty

Amount

No Down-payment 1,350,066 84.8% $119,114,556,848 $88,229 $40,939,257,835 $30,324 

Down-payment 242,473 15.2% $21,361,860,188 $88,100 $6,968,272,569 $28,738 

TOTAL 1,592,539 100.0% $140,476,417,036 $88,209 $47,907,530,404 $30,082 

Source: LGY SAS dnpmtavg 

1

 For loans made FY 1979 or later (Purchase Price used to determine downpayment N/A prior to FY 1979). 

By “First Time 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 20001 

Buyer Status Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average 

Loan 

Amount 

Total Guaranty 

Amount 

Average

Guaranty

Amount 

First Time 

Homeowner 

562,159 56.1% $54,868,333,242 $97,603 $18,361,213,214 $32,662 

Previous 

Homeowner 

439,944 43.9% $48,100,899,735 $109,334 $14,875,475,235 $33,812 

TOTAL 1,002,103 100.0% $102,969,232,977 $102,753 $33,236,688,449 $33,167 

Source: SAS FTBUYAVG 

1

 Closed since Fiscal Year 1993 - First time buyer information N/A prior to that time. 

115
Chapter 3 Business Beginning FY 2000

d. Demographic Characteristics of All People with Active Guarantied 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 2000, 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. Data is shown in 2 parts: entitlements for veterans and 

other entitlement categories. 

Active Home Loans By Period of Service (or Entitlement) 

Beginning of Fiscal Year 2000 

Entitlement Number 

of Loans 

Percent 

of Grand 

Total 

Total Loan 

Amount 

Average 

Loan 

Amount 

Total Guaranty

Amount 

Average

Guaranty

Amount 

World War II 98,892 3.1% $4,290,286,219 $43,384 $1,762,776,230 $17,825 

Post-World War II 3,376 0.1% $236,633,337 $70,093 $86,554,451 $25,638 

Korean War 77,363 2.4% $3,809,292,529 $49,239 $1,483,558,702 $19,177 

Post-Korean War 289,884 9.1% $12,763,999,530 $44,031 $5,109,998,519 $17,628 

Vietnam Era 965,060 30.1% $57,045,304,720 $59,111 $21,515,928,025 $22,295 

Post-Vietnam Era 556,268 17.4% $51,610,137,269 $92,779 $17,314,335,176 $31,126 

Gulf War Era 195,432 6.1% $19,493,404,194 $99,745 $6,419,942,463 $32,850 

Restored Entitlement1 493,660 15.4% $50,522,828,609 $102,343 $15,692,258,188 $31,788 

TOTAL 2,679,935 83.7% $199,771,886,407 $74,544 $69,385,351,754 $25,891 

Service Personnel 472,259 14.8% $38,507,336,568 $81,539 $13,299,033,208 $28,160 

Reservists 41,129 1.3% $4,330,185,735 $105,283 $1,389,865,088 $33,793 

Unremarried Survivor 8,128 0.3% $549,850,021 $67,649 $206,966,652 $25,463 

Spouse of POW 151 0.0% $11,376,553 $75,341 $3,875,328 $25,664 

TOTAL 521,667 16.3% $43,398,748,877 $83,192 $14,899,740,276 $28,562 

GRAND TOTAL2 3,201,602 100.0% $243,170,635,284 $75,953 $84,285,092,030 $26,326 

Source: LGY SAS ENTLAVGS using ACTSEP99 Workfile 

1

 Based on when the loan was made. 

2

 Excludes 97 loans that did not contain period of service information in the record. 

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Chapter 3 Business Beginning FY 2000

By Age 

The distribution of all active loan guaranties by age of the eligible person is shown in the 

following table. 

Active Home Loans Outstanding Based On Age 

Beginning of Fiscal Year 2000 

Age Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average

Loan 

Amount

Total Guaranty 

Amount 

Average

Guaranty

Amount

18 - 25 20,570 0.6% $1,748,436,515 $84,999 $627,600,675 $30,510 

26 - 35 448,505 14.0% $44,234,305,877 $98,626 $14,636,670,312 $32,634 

36 - 45 765,226 23.9% $72,948,156,209 $95,329 $24,093,337,624 $31,485 

46 - 55 1,072,268 33.5% $74,900,423,029 $69,852 $26,512,866,952 $24,726 

 56 - 65 539,824 16.8% $31,410,622,297 $58,187 $11,482,296,337 $21,270 

Over 65 358,604 11.2% $18,001,786,085 $50,200 $6,974,067,605 $19,448 

TOTAL1 3,204,997 100.0% $243,243,730,012 $75,895 $84,326,839,505 $26,311 

 Average overall age: 49.4 

Source: LGY SAS agevet2 

1

 Includes direct loans sold and later guaranteed. 

By Race

The next table provides the distribution of active purchase 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 63 percent of the total number of active purchase loan guaranties. 

Active Purchase Loans Based On Known Racial Codes 

Beginning of Fiscal Year 2000 

Race Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average

Loan 

Amount

Total Guaranty 

Amount 

Average 

Guaranty

Amount 

White 2,098,287 79.7% $159,832,806,368 $76,173 $55,613,174,811 $26,504 

Black 351,504 13.4% $26,097,098,658 $74,244 $9,238,727,719 $26,283 

Hispanic 135,181 5.1% $10,169,311,872 $75,227 $3,559,557,334 $26,332 

Native American 14,894 0.6% $1,278,874,599 $85,865 $429,955,579 $28,868 

Asian 31,939 1.2% $3,396,792,884 $106,353 $1,023,427,117 $32,043 

TOTAL 2,631,805 100.0% $200,774,884,381 $76,288 $69,864,842,560 $26,546 

Source: LGY SAS Raceavgs 

117
Chapter 3 Business Beginning FY 2000

By Gender

Active Home Loans Based on Gender 

Beginning of Fiscal Year 2000 

Gender Number 

of Loans 

Percent 

of 

Total 

Total Loan 

Amount 

Average

Loan 

Amount

Total Guaranty 

Amount 

Average

Guaranty

Amount

Male 3,049,153 95.5% $228,286,532,714 $74,869 $79,426,791,286 $26,049 

Female 143,871 4.5% $14,426,395,385 $100,273 $4,657,786,055 $32,375 

TOTAL1 3,193,024 100.0% $242,712,928,099 $76,013 $84,084,577,341 $26,334 

Source: LGY SAS Gendavgs 

1

 Excludes 8,675 loans that did not contain gender information in the record. 

118
Chapter 3 Business Beginning FY 2000

 8. VOCATIONAL REHABILITATION AND EMPLOYMENT 

a. VR&E Program Participants at the Beginning of Fiscal Year 2000 

The following table shows the total number of eligible persons participating in the Vocational 

Rehabilitation program at the beginning of fiscal year 2000. 

Veterans Participating In The 

Vocational Rehabilitation Programs 

Beginning of Fiscal Year 2000 

Program Number Percent 

Service-Connected Veterans (Chapter 31) 30,360 99.87% 

Pension Recipients (Chapter 15) 8 0.03% 

Vietnam Veterans' Children With Spina Bifida (Chapter 18) 29 0.10% 

Total 30,397 100.0% 

Sources: VR&E Program Management Reports (10-1-99) and Regional Office Reports 

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 2000. 

By Occupational Goals Sorted by Gender 

Veterans Participating In A Vocational Training Program 

By Occupational Goal 

Beginning Fiscal Year 2000 

Total 

Number

Percent

of Total

Number 

of Male 

Percent 

of Total 

Number 

of Female

Percent 

of Total 

Agricultural, Fishery and Forestry 70 0.2% 60 0.3% 10 0.2% 

Benchwork 195 0.6% 184 0.8% 11 0.2% 

Clerical 1,335 4.4% 944 4.0% 391 5.9% 

Independent Living 171 0.6% 145 0.6% 26 0.4% 

Machine Trades 556 1.8% 543 2.3% 13 0.2% 

Miscellaneous 683 2.2% 554 2.3% 129 2.0% 

Processing (Butcher, Meat Processor, etc.) 21 0.1% 16 0.1% 5 0.1% 

Professional, Technical, and Managerial 25,477 83.9% 19,700 82.9% 5,777 87.7% 

Sales 192 0.6% 157 0.7% 35 0.5% 

Service 604 2.0% 482 2.0% 122 1.9% 

Structural (Building Trades) 819 2.7% 792 3.3% 27 0.4% 

Unknown/Other 237 0.8% 199 0.8% 38 0.6% 

Total 30,360 100.0% 23,776 100.0% 6,584 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

119
Chapter 3 Business Beginning FY 2000

By Type of Training Activity Sorted by Gender 

Veterans Participating In A Vocational Training Program 

By Type Of Training And Gender 

Beginning of Fiscal Year 2000 

Type Of Training Total 

Number

Percent of

Total 

Number of

Male 

Percent of

Total 

Number of 

Female 

Percent of

Total 

Undergraduate 26,488 87.2% 20,488 86.2% 6,000 91.1% 

Vocational/Technical 1,797 5.9% 1,599 6.7% 198 3.0% 

Graduate 1,034 3.4% 756 3.2% 278 4.2% 

College, Non-Degree 531 1.7% 475 2.0% 56 0.9% 

Extend. Eval/Indep. Living 231 0.8% 208 0.9% 23 0.3% 

On The Job 128 0.4% 121 0.5% 7 0.1% 

Eval/Improv. Rehab. Pot. 31 0.1% 29 0.1% 2 0.0% 

High School 28 0.1% 24 0.1% 4 0.1% 

Non/Nominal Pay in Govt. 53 0.2% 40 0.2% 13 0.2% 

Govt. Work Experience 0 0.0% 0 0.0% 0 0.0% 

Apprenticeship 32 0.1% 29 0.1% 3 0.0% 

Farm Co-op 7 0.0% 7 0.0% 0 0.0% 

Total 30,360 100.0% 23,776 100.0% 6,584 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

c. Demographic Characteristics of Veterans Participating in a Training Program 

This section provides various demographic information about veterans participating in 

vocational rehabilitation training at the beginning of fiscal year 2000. Yellow highlight notes the 

highest group in each table.

By Combined Degree of Service-Connected Disability 

Veterans Participating In A Vocational Training Program 

By Combined Degree Of Disability 

Beginning of Fiscal Year 2000 

0% 10% 20% 30% 40% 50% 60% 

Number 11 1,194 6,999 6,772 5,447 3,147 2,910 

Percent 0.0% 3.9% 23.1% 22.3% 17.9% 10.4% 9.6% 

70% 80% 90% 100% Other Total 

Number 1,408 846 263 1,115 248 30,360 

Percent 4.6% 2.8% 0.9% 3.7% 0.8% 100.0% 

Source: VR&E Program Management Reports (10-1-99) and Disability Compensation Database 

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Chapter 3 Business Beginning FY 2000

By Serious Employment Handicap 

Veterans Participating In A 

Vocational Training Program 

With A Serious Employment Handicap 

Beginning of Fiscal Year 2000 

Total Participants 30,360 

Number With Serious Employment Handicap 10,365 

Percent With Serious Employment Handicap 34% 

Source: VR&E Program Management Reports (10-1-99) 

By Gender 

Veterans Participating In A 

Vocational Training Program 

By Gender 

Beginning of Fiscal Year 2000 

Female Male Total 

Number 6,584 23,776 30,360 

Percent 21.7% 78.3% 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

By Age 

Veterans Participating In A Vocational Training Program 

By Age 

Beginning of Fiscal Year 2000 

Age 

17 - 21 

Age 

22 - 29 

Age 

30 - 39 

Age 

40 - 49 

Age 

50 - 59 

Age 

60 > 

Total For 

All Ages 

Number 108 6,311 10,645 9,682 3,307 307 30,360 

Percent 0.4% 20.8% 35.1% 31.9% 10.9% 1.0% 100.0% 

Average Age For Veterans In Training Status: 38

Source: VR&E Program Management Reports (10-1-99) 

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Chapter 3 Business Beginning FY 2000

By Period of Service 

Veterans Participating In A Vocational Training Program 

By Period Of Service 

Beginning of Fiscal Year 2000 

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 18 3 22 109 1,880 5,646 22,682 30,360 

Percent 0.1% 0.0% 0.1% 0.4% 6.2% 18.6% 74.7% 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

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 

Beginning of Fiscal Year 2000 

Army1 Navy Air Force Marine 

Corps 

Coast 

Guard 

Other2 Total 

Number 13,516 7,198 5,487 3,317 407 435 30,360 

Percent 44.5% 23.7% 18.1% 10.9% 1.3% 1.4% 100.0% 

Source: VR&E Program Management Reports (10-1-99) and Disability Compensation Database 

1

 Army includes 1 from Women's Army Corps and 1 from Army Air Corps. 

2

 Other includes 1 from NOAA, 1 from Public Health Service and 433 records with no branch of service data. 

By Length of Service 

Veterans Participating In A Vocational Training Program 

By Length Of Service 

Beginning of Fiscal Year 2000 

3 Months 

or Less 

3 to 6 

Months 

6 Months 

to 2 Years 

2 to 4 

Years 

4 to 10 

Years 

Number 155 380 3,190 7,301 9,133 

Percent 0.5% 1.3% 10.5% 24.0% 30.1% 

10 to 15 

Years 

15 to 20 

Years 

20 to 30 

Years 

Over 30 

Years 

Total

Number 3,343 2,467 4,292 99 30,360 

Percent 11.0% 8.1% 14.1% 0.3% 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

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Chapter 3 Business Beginning FY 2000

123

By Dependency Status 

Note: Dependency status identifies known dependents of both single and married veteran 

participants. 

Veterans Participating In A Vocational Training Program 

By Dependency Status 

Beginning of Fiscal Year 2000 

Single Single With 

Children 

Married Married With

Children 

Dependent 

Parent(s) 

Total1 

Number 7,266 3,701 5,051 14,213 62 30,293 

Percent 24.0% 12.2% 16.7% 46.9% 0.2% 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

1 Does not include 67 veterans whose dependency status is unknown. 

By Prior Education Level 

The distribution by level of education attained prior to enrollment in a vocational training 

program is shown in the following table. 

Veterans Participating In A Vocational Training Program 

By Prior Education Level 

Beginning of Fiscal Year 2000 

Less Than 

High School 

High School Post 

High School

Four Year 

College 

Degree 

Graduate 

Training 

Total

Number 171 17,627 10,538 1,420 604 30,360 

Percent 0.6% 58.1% 34.7% 4.7% 2.0% 100.0% 

Source: VR&E Program Management Reports (10-1-99) 

By Prior Use of VA Educational Benefits 

The following table shows VR&E program participants at the beginning of fiscal year 2000, 

sorted by prior use of VA education benefits. 

Veterans Participating In A Vocational Training Program 

By Prior Use Of VA Benefits 

Beginning of Fiscal Year 2000 

Prior Use No Prior 

Use 

Total 

Number 9,851 20,509 30,360 

Percent 32.4% 67.6% 100.0% 

Source: VR&E Program Management Reports (10-1-99) 
CHAPTER 4

THE FUTURE - FORECASTING PROGRAM LIABILITIES

 Forecasting of Program Liabilities 

In this 1999 Annual Benefits Report, we introduce another dimension to the discussion of 

program activity - the future. This Chapter 4 presents projections of program usage and 

associated financial obligations of the government to veterans and survivors, well beyond fiscal 

year 2000 - the strategic view. 

Historically, VA compensation programs have been funded each year by current 

appropriations. 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 of long-term usage and costs provide a baseline for the 

dimensions of VBA’s unfunded future liabilities. This “rational link” to the future of VBA 

programs brings important contextual 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 the Department of Veterans Affairs, 

Compensation and Pension Programs, Liability for Future Benefits as of September 30, 1999, 

study dated November 12, 1999, prepared by Sam Gutterman, FSA, FCAS, MAAA, Hon FIA, 

PricewaterhouseCoopers LLP. The study estimates the government’s liability as of the end of 

fiscal year 1999. While aggregate information from the study is presented in the Secretary’s 

report, this report furnishes the detailed descriptions of the study assumptions, parameters, 

and methods. It also shows year-by-year projections of compensation payments to veterans 

and survivors. A projection period of 70 years - fiscal years 2000 through 2069 - was used in 

this study. This period corresponds closely with that used by the Office of the Chief Actuary of 

the Social Security Administration (which uses 75 years). 

The fiscal year 1999 VBA Annual Benefits Report addresses estimated future liabilities for only 

the compensation programs - of which, the disability program provides lifetime benefits. Our 

124 
Chapter 4 The Future – Forecasting Program Liabilities

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. 

125
Chapter 4 The Future – Forecasting Program Liabilities

Liability for Future Compensation Benefits 

The liability projections for the compensation program as of September 30, 1999, are shown 

below. The total estimated future benefit payments of $1,914.6 billion ($1.9146 trillion) 

represents the sum of the cash flows needed in future years to pay benefits. The total 

program liability estimate of $480.3 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, 1999 

Estimated Future Compensation Program 

Benefits Payments* Liability** 

Benefits to Veterans $1,537.3 billion $397.5 billion 

Benefits to Survivors 377.3 billion 82.8 billion 

Total $1,914.6 billion $480.3 billion 

*Compensation benefit estimates for the period fiscal years 2000-2069, excluding retroactive payments. See Table 1. 

**Compensation program liability is an estimate of the amount of money which, if invested now, at current Treasury interest 

 rates, would assure that government could provide for the projected future compensation payments. See Table 2. 

The estimated liability for the compensation program is based on the present value of 

expected future compensation benefit payments for: 

(1) all veterans currently receiving benefits under these programs, 

(2) all survivors currently receiving benefits under these programs, 

(3) all future survivors of those veterans currently receiving benefit 

payments, 

(4) all existing veterans not currently receiving benefit payments but who 

are expected to in the future, 

(5) all future survivors of existing veterans not currently receiving benefit 

payments but who are expected to in the future, and 

(6) 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. Benefits associated with types of exposures or significantly increased benefits that 

may occur in the future (e.g., significant amounts of benefit associated with Gulf War 

Syndrome or smoking) are not reflected. 

Key financial and actuarial elements associated with the development of this liability estimate 

are provided in Tables 1 through 5. 

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Chapter 4 The Future – Forecasting Program Liabilities

TABLE 1 - Estimated Future Benefit Payments

Table 1 shows the expected total annual benefit payments for veterans and survivors through 

fiscal year 2069 (70 years). 

 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 $31.7 billion and is expected to occur in 2031 and is highlighted in yellow. 

 The highest annual compensation outlay for payments to survivors of veterans whose 

deaths are related to service is $6.3 billion and is expected to occur in 2050 and is 

highlighted in yellow. 

 The highest annual compensation outlay for combined payments is $37.3 billion and is 

expected to occur in 2032 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, excluding retroactive payments 

 The number of awards stopped during a fiscal year 

 Cost of living adjustments that will apply to future benefit payments 

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Chapter 4 The Future – Forecasting Program Liabilities

TABLE 1 

Estimated Future Benefit Payments (Regular Monthly Benefits) 

Fiscal Year Compensation 

Veterans 

Compensation 

Survivors 

Compensation 

Veterans & Survivors

2000 $14,355,570,048 $3,435,695,993 $17,791,266,041 

2001 $15,058,843,515 $3,531,563,281 $18,590,406,796 

2002 $15,768,638,291 $3,627,395,728 $19,396,034,019 

2003 $16,479,761,242 $3,724,210,260 $20,203,971,502 

2004 $17,190,602,241 $3,820,543,534 $21,011,145,775 

2005 $17,900,446,410 $3,915,821,644 $21,816,268,054 

2006 $18,609,092,159 $4,009,010,440 $22,618,102,598 

2007 $19,316,451,780 $4,099,771,472 $23,416,223,252 

2008 $20,022,323,883 $4,187,761,233 $24,210,085,117 

2009 $20,726,241,450 $4,272,637,328 $24,998,878,778 

2010 $21,427,403,853 $4,354,169,158 $25,781,573,011 

***** ***** ***** ***** 

2015 $24,856,596,320 $4,709,287,101 $29,565,883,421 

***** ***** ***** ***** 

2020 $28,002,132,389 $4,994,249,342 $32,996,381,731 

***** ***** ***** ***** 

2025 $30,471,054,507 $5,248,091,075 $35,719,145,582 

***** ***** ***** ***** 

2030 $31,648,135,687 $5,516,676,452 $37,164,812,140 

2031 $31,676,504,274 $5,572,968,891 $37,249,473,165 

2032 $31,628,659,752 $5,630,049,230 $37,258,708,982 

***** ***** ***** ***** 

2035 $31,033,465,462 $5,801,597,025 $36,835,062,487 

***** ***** ***** ***** 

2040 $28,747,460,765 $6,060,646,088 $34,808,106,854 

***** ***** ***** ***** 

2045 $25,298,903,180 $6,240,511,148 $31,539,414,329 

***** ***** ***** ***** 

2050 $21,005,415,065 $6,304,543,962 $27,309,959,027 

***** ***** ***** ***** 

2055 $16,345,031,832 $6,245,465,425 $22,590,497,257 

***** ***** ***** ***** 

2060 $11,836,689,863 $6,062,126,144 $17,898,816,007 

***** ***** ***** ***** 

2065 $7,850,968,795 $5,747,981,340 $13,598,950,135 

***** ***** ***** ***** 

2069 $5,361,107,805 $5,406,296.83 $10,767,404,630 

Total $1,537,339,888,842 $377,317,580,181 $1,914,657,469,023 

Source: Compensation and Pension Program Liability for Future Benefits as of September 30, 1999 - 

 PricewaterhouseCoopers LLP, Table 2 

128
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 2 - Discounted Estimated Future Compensation Payments 

Table 2 shows the expected future compensation payments from Table 1 discounted at current 

(September 30, 1999) U.S. Treasury interest rates. The present value of the total projected 

future liability for compensation is $480.3 billion. This figure is calculated by summing the 

discounted values of projected future cash flows. It represents the estimated amount which, if 

invested now, would assure that government could cover the projected future compensation 

payments shown in Table 1 ($1.9 trillion). 

 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. 

 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 2 includes estimates of expected compensation payments after the 70-year period, 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 

 A veteran already receiving compensation is found entitled to increased benefits for 

past months 

 

129
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 2 

Discounted Estimated Future Benefit Payments 

Fiscal Year Compensation 

Veterans 

Compensation 

Survivors 

Compensation 

Veterans & Survivors

2000 $14,010,269,029 $3,353,055,643 $17,363,324,672 

2001 $13,912,561,672 $3,262,740,057 $17,175,301,729 

2002 $13,740,978,982 $3,160,955,787 $16,901,934,769 

2003 $13,564,408,950 $3,065,378,815 $16,629,787,766 

2004 $13,361,173,454 $2,969,468,093 $16,330,641,547 

2005 $13,080,153,476 $2,861,355,908 $15,941,509,384 

2006 $12,718,568,622 $2,739,997,951 $15,458,566,573 

2007 $12,424,822,221 $2,637,074,980 $15,061,897,201 

2008 $12,201,539,425 $2,552,008,153 $14,753,547,578 

2009 $11,990,583,464 $2,471,814,034 $14,462,397,499 

2010 $11,702,276,250 $2,377,968,450 $14,080,244,700 

***** ***** ***** ***** 

2015 $9,755,376,932 $1,848,236,587 $11,603,613,519 

***** ***** ***** ***** 

2020 $7,775,081,609 $1,386,704,972 $9,161,786,581 

***** ***** ***** ***** 

2025 $6,509,414,132 $1,121,129,503 $7,630,543,635 

***** ***** ***** ***** 

2030 $5,260,458,963 $916,965,548 $6,177,424,512 

***** ***** ***** ***** 

2035 $3,843,683,917 $718,563,166 $4,562,247,083 

***** ***** ***** ***** 

2040 $2,653,131,447 $559,342,992 $3,212,474,439 

***** ***** ***** ***** 

2045 $1,739,814,141 $429,162,065 $2,168,976,206 

***** ***** ***** ***** 

2050 $1,076,401,556 $323,070,071 $1,399,471,627 

***** ***** ***** ***** 

2055 $624,123,746 $238,478,782 $862,602,527 

***** ***** ***** ***** 

2060 $336,788,373 $172,485,182 $509,273,555 

***** ***** ***** ***** 

2065 $166,453,127 $121,866,421 $288,319,548 

***** ***** ***** ***** 

 2070 & later $353,151,060 $625,966,979 $979,118,039 

Total Regular $364,681,721,806 $75,989,239,050 $440,670,960,856 

Retroactive $32,821,354,963 $6,839,031,514 $39,660,386,477 

Total $397,503,076,769 $82,828,270,564 $480,331,347,333 

Source: Compensation and Pension Program Liability for Future Benefits as of September 30, 1999 - 

 PricewaterhouseCoopers LLP, Table 1 

130
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 3 - Veterans Receiving Compensation 

Table 3 shows the total number of veterans currently receiving compensation payments 

(2,294,455) and their average monthly benefits, sorted by age and gender, as of the end of 

fiscal year 1999. 

In the table below, the highest number of male and female veterans by age category is 

highlighted in yellow. 

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Chapter 4 The Future – Forecasting Program Liabilities

TABLE 3 

Veterans Receiving Compensation as of September 30, 1999 

Number of Veterans Avg. Monthly Benefit Number of Veterans Avg. Monthly Benefit

Age Males Females Males Females Age Males Females Males Females 

17 - 1 $200.00 $96.00 60 26,801 385 $515.14 $719.43 

18 2 2 $140.00 $140.00 61 27,186 365 $516.90 $696.26 

19 54 58 $252.48 $173.33 62 27,729 323 $521.79 $637.47 

20 272 173 $297.55 $194.13 63 28,789 354 $514.48 $639.34 

21 706 356 $303.12 $214.96 64 29,244 313 $526.23 $688.03 

22 1,626 662 $279.72 $260.06 65 30,508 317 $522.91 $642.55 

23 2,935 959 $265.10 $277.32 66 33,778 329 $529.44 $639.15 

24 4,682 1,404 $252.90 $305.16 67 40,093 337 $547.37 $620.74 

25 6,755 1,760 $255.72 $264.50 68 40,602 337 $540.86 $640.13 

26 8,116 1,992 $270.73 $298.03 69 41,263 321 $542.60 $660.94 

27 10,643 2,317 $274.09 $287.92 70 37,078 294 $536.09 $660.86 

28 13,616 3,003 $281.14 $293.43 71 33,633 266 $527.30 $566.60 

29 15,644 3,159 $293.27 $293.20 72 30,006 230 $516.86 $616.05 

30 15,945 3,117 $299.39 $324.29 73 40,131 238 $482.57 $633.64 

31 15,783 3,013 $324.20 $337.15 74 60,106 300 $489.04 $470.13 

32 15,900 3,128 $332.56 $353.10 75 64,233 672 $498.81 $569.40 

33 16,027 2,925 $350.87 $394.45 76 60,302 836 $495.22 $476.26 

34 16,875 3,197 $368.91 $413.21 77 60,008 888 $495.73 $465.72 

35 17,793 3,261 $377.98 $432.07 78 58,006 816 $496.36 $455.53 

36 17,985 3,362 $399.40 $441.33 79 50,111 719 $495.59 $465.00 

37 18,575 3,375 $428.16 $464.52 80 44,838 515 $488.06 $458.76 

38 19,850 3,603 $436.22 $486.30 81 38,690 438 $481.26 $541.98 

39 22,041 3,712 $447.15 $491.35 82 28,798 374 $464.29 $500.33 

40 25,587 3,860 $446.60 $518.44 83 22,490 316 $463.55 $493.47 

41 27,777 3,874 $439.80 $528.23 84 17,363 285 $461.25 $461.25 

42 30,693 3,935 $445.51 $532.53 85 13,403 229 $458.89 $472.03 

43 32,694 4,277 $441.96 $531.24 86 9,828 212 $452.74 $491.86 

44 34,600 4,379 $444.99 $562.88 87 7,333 170 $445.74 $493.37 

45 36,190 4,141 $448.62 $593.81 88 5,392 123 $432.71 $442.21 

46 37,500 3,789 $462.67 $587.97 89 4,038 97 $448.56 $439.03 

47 40,971 3,471 $476.35 $609.73 90 2,787 98 $434.69 $481.15 

48 45,064 2,980 $531.37 $597.31 91 2,012 62 $439.34 $475.26 

49 57,547 2,650 $597.62 $609.00 92 1,462 48 $431.05 $412.94 

50 75,912 2,219 $621.18 $635.51 93 901 41 $436.94 $740.20 

51 87,205 1,870 $624.37 $642.99 94 489 31 $468.49 $494.00 

52 89,898 1,654 $618.74 $663.18 95 183 26 $406.17 $539.00 

53 71,430 1,323 $591.93 $688.23 96 107 9 $544.36 $416.11 

54 49,817 944 $585.73 $683.49 97 81 18 $337.59 $503.61 

55 43,166 761 $566.08 $704.87 98 59 7 $623.13 $438.86 

56 40,782 732 $552.33 $704.49 99 52 6 $453.46 $519.50 

57 37,048 608 $538.94 $664.51 100 27 1 $777.48 $330.00 

58 31,376 514 $536.19 $707.43 101 + 165 7 $741.70 $270.57 

59 28,485 467 $533.38 $686.19 Unknown 43 - $148.22 $ -

Total/Average 2,185,715 108,740 $505.77 $488.07 

Source: Compensation and Pension Program Liability for Future Benefits as of September 30, 1999 - 

 PricewaterhouseCoopers LLP, Table 9 

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Chapter 4 The Future – Forecasting Program Liabilities

TABLE 4 - Death Rates 

Table 4 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 expressed as percentages by age. For example, the age 40 male death 

rate of 0.32% means that this percentage of males in the general population are likely to die 

during this one-year period. 

 Death rates were developed based on compensation program experience for fiscal 

years 1995 through 1999. 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 70, 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 decline, the larger the liability for the compensation program, 

because more beneficiaries will live to collect benefits for a longer period. 

133
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 4 

Death Rates 

1989-1991 U.S. Life 

Tables (All Races) 

 Veterans Compensation 

FY 1995-99 Experience 

Age Males Females Males Females 

40 0.32% 0.14% 0.44% 0.26% 

41 0.33% 0.15% 0.45% 0.27% 

42 0.34% 0.17% 0.47% 0.29% 

43 0.37% 0.18% 0.50% 0.30% 

44 0.39% 0.20% 0.53% 0.30% 

45 0.42% 0.22% 0.57% 0.31% 

46 0.46% 0.24% 0.61% 0.32% 

47 0.50% 0.27% 0.65% 0.33% 

48 0.54% 0.30% 0.69% 0.36% 

49 0.58% 0.32% 0.73% 0.40% 

50 0.63% 0.36% 0.78% 0.44% 

51 0.69% 0.39% 0.82% 0.49% 

52 0.76% 0.43% 0.88% 0.54% 

53 0.83% 0.48% 0.95% 0.60% 

54 0.91% 0.52% 1.02% 0.66% 

55 1.00% 0.57% 1.10% 0.73% 

56 1.09% 0.62% 1.19% 0.81% 

57 1.20% 0.68% 1.29% 0.89% 

58 1.32% 0.75% 1.39% 0.97% 

59 1.46% 0.82% 1.50% 1.05% 

60 1.59% 0.90% 1.62% 1.14% 

61 1.73% 0.97% 1.75% 1.24% 

62 1.88% 1.06% 1.89% 1.35% 

63 2.04% 1.15% 2.05% 1.42% 

64 2.21% 1.24% 2.22% 1.49% 

65 2.40% 1.35% 2.41% 1.57% 

66 2.59% 1.46% 2.61% 1.66% 

67 2.79% 1.57% 2.83% 1.74% 

68 3.03% 1.71% 3.04% 1.93% 

69 3.30% 1.87% 3.27% 2.15% 

70 3.61% 2.04% 3.52% 2.38% 

71 3.95% 2.24% 3.78% 2.64% 

72 4.31% 2.46% 4.07% 2.93% 

73 4.69% 2.69% 4.39% 3.17% 

74 5.08% 2.93% 4.74% 3.43% 

75 5.49% 3.18% 5.12% 3.71% 

76 5.94% 3.46% 5.53% 4.01% 

77 6.43% 3.77% 5.97% 4.34% 

78 6.97% 4.15% 6.50% 4.73% 

79 7.58% 4.60% 7.07% 5.16% 

80 8.28% 5.11% 7.69% 5.62% 

Source: Compensation and Pension Program Liability for Future Benefits as of September 30, 1999 - 

 PricewaterhouseCoopers LLP, Table 11 

134
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 5 - 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 5.1 shows the projected number of newly adjudicated compensation awards, in total and 

sorted by age and gender, for fiscal year 2000. These projections come directly from the 

model used to estimate future liability. The projected total of 80,549 additional awards 

corresponds with the fiscal year 2000 estimate of new compensation cases shown in Table 3 

of the PricewaterhouseCoopers LLP report. Approximately 1.2 million new awards are 

projected over the entire 70-year period through fiscal year 2069 (also shown in Table 3). 

Table 5.2 presents the rates of disability compensation awards as percentages. These 

percentages were the basis for determining the projected number of newly adjudicated awards 

in Table 5.1. For example, the age 25 male disability rate of 2.24% means that this 

percentage of male veterans are likely to receive a new compensation award during the oneyear period. 

 Rates of newly adjudicated awards were developed based on compensation program 

experience for fiscal years 1995 through 1999. 

 Data were not explicitly available by individual age and gender. The values had to be 

derived indirectly from the in-force and termination data that were available. 

 Rates of new awards were then developed by dividing the derived number of new 

entrants by the number of living veterans not currently receiving compensation. 

 These rates were then applied to the veteran population to arrive at estimates of new 

compensation awards for fiscal year 2000 and for future years. 

135
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 5.1 

Projected FY 2000 Newly Adjudicated Compensation Cases for Veterans 

Age Males Females Combined Age Males Females Combined

17 14 3 17 57 901 25 926 

18 27 6 33 58 732 20 752 

19 35 7 42 59 652 16 668 

20 82 13 95 60 615 14 629 

21 269 39 308 61 563 11 574 

22 698 93 791 62 537 9 546 

23 1,125 154 1,279 63 539 8 547 

24 1,365 209 1,574 64 555 7 562 

25 1,395 255 1,650 65 593 6 599 

26 1,346 314 1,660 66 639 5 644 

27 1,277 362 1,639 67 707 5 712 

28 1,306 371 1,677 68 656 4 660 

29 1,376 367 1,743 69 644 3 647 

30 1,411 367 1,778 70 585 3 588 

31 1,315 333 1,648 71 516 2 518 

32 1,202 287 1,489 72 562 2 564 

33 1,214 280 1,494 73 636 2 638 

34 1,211 271 1,482 74 661 2 663 

35 1,275 275 1,550 75 675 3 678 

36 1,268 269 1,537 76 659 5 664 

37 1,295 266 1,561 77 682 5 687 

38 1,448 295 1,743 78 643 5 648 

39 1,658 337 1,995 79 575 4 579 

40 1,963 369 2,332 80 485 2 487 

41 2,105 365 2,470 81 389 2 391 

42 2,478 399 2,877 82 316 1 317 

43 2,255 394 2,649 83 204 1 205 

44 1,983 366 2,349 84 122 1 123 

45 1,748 333 2,081 85 60 1 61 

46 1,499 286 1,785 86 22 0 22 

47 1,464 246 1,710 87 23 0 23 

48 1,457 194 1,651 88 16 0 16 

49 1,701 165 1,866 89 11 0 11 

50 2,072 136 2,208 90 7 0 7 

51 2,217 103 2,320 91 4 0 4 

52 2,562 91 2,653 92 3 0 3 

53 2,377 73 2,450 93 2 0 2 

54 1,580 46 1,626 94 1 0 1 

55 1,262 37 1,299 95 0 0 0 

56 1,042 30 1,072 96 0 0 0 

Total 71,569 8,980 80,549 

Source: Compensation and Pension Program Liability for Future Benefits as of September 30, 1999 - 

 PricewaterhouseCoopers LLP 

136
Chapter 4 The Future – Forecasting Program Liabilities

TABLE 5.2 

Rates of Newly Adjudicated Compensation Cases for Veterans 

Age Males Females Age Males Females 

17 4.00% 5.00% 57 0.19% 0.21% 

18 4.00% 5.00% 58 0.17% 0.18% 

19 4.00% 5.00% 59 0.16% 0.15% 

20 4.00% 5.00% 60 0.15% 0.13% 

21 4.00% 5.00% 61 0.14% 0.11% 

22 4.00% 5.00% 62 0.13% 0.09% 

23 3.30% 4.64% 63 0.13% 0.08% 

24 2.72% 4.30% 64 0.13% 0.07% 

25 2.24% 3.99% 65 0.14% 0.06% 

26 1.85% 3.70% 66 0.14% 0.05% 

27 1.52% 3.43% 67 0.14% 0.04% 

28 1.31% 2.80% 68 0.13% 0.04% 

29 1.12% 2.28% 69 0.13% 0.03% 

30 0.96% 1.86% 70 0.12% 0.03% 

31 0.82% 1.52% 71 0.12% 0.02% 

32 0.70% 1.24% 72 0.11% 0.02% 

33 0.68% 1.16% 73 0.12% 0.02% 

34 0.66% 1.08% 74 0.13% 0.02% 

35 0.64% 1.01% 75 0.14% 0.02% 

36 0.62% 0.95% 76 0.16% 0.02% 

37 0.60% 0.88% 77 0.17% 0.02% 

38 0.66% 0.94% 78 0.17% 0.02% 

39 0.72% 1.00% 79 0.17% 0.02% 

40 0.78% 1.07% 80 0.16% 0.01% 

41 0.86% 1.13% 81 0.16% 0.01% 

42 0.94% 1.21% 82 0.16% 0.01% 

43 0.81% 1.17% 83 0.13% 0.01% 

44 0.70% 1.14% 84 0.10% 0.01% 

45 0.60% 1.11% 85 0.06% 0.01% 

46 0.52% 1.08% 86 0.03% 0.01% 

47 0.44% 1.05% 87 0.04% 0.01% 

48 0.43% 0.92% 88 0.04% 0.01% 

49 0.42% 0.80% 89 0.04% 0.01% 

50 0.41% 0.70% 90 0.03% 0.00% 

51 0.40% 0.61% 91 0.03% 0.00% 

52 0.39% 0.54% 92 0.02% 0.00% 

53 0.34% 0.44% 93 0.02% 0.00% 

54 0.29% 0.37% 94 0.01% 0.00% 

55 0.25% 0.31% 95 0.01% 0.00% 

56 0.22% 0.25% 96 0.00% 0.00% 

Source: Compensation and Pension Program Liability for Future Benefits as of September 30, 1999 - 

PricewaterhouseCoopers LLP, Table 13 

137
Chapter 4 The Future – Forecasting Program Liabilities

138
Appendix A VBA Regional Office Addresses

VBA REGIONAL OFFICE ADDRESSES 

ALABAMA

VA Regional Office 

345 Perry Hill Road 

Montgomery, AL 36109-3798 

ALASKA

VA Outpatient Clinic & 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 

Ft. Roots, Building 65 

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 

155 Van Gordon St. 

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 

9500 Bay Pines Boulevard 

St. Petersburg, FL 33708 

GEORGIA

VA Regional Office 

1700 Clairmont Rd. 

Decatur, GA 30333-4043 

HAWAII

VA Medical & Regional Office Center 

459 Patterson Rd. 

Honolulu, HI 96819-1522 

139
Appendix A VBA Regional Office Addresses

IDAHO

VA Regional Office 

805 W. Franklin Street 

Boise, ID 83702-5560 

ILLINOIS

VA Regional Office 

536 S. Clark Street 

Chicago, IL 60605-1523 

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 

140
Appendix A VBA Regional Office Addresses

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 

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 & 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 

5000 Wissahickon Avenue 

Philadelphia, PA 19144-486 

PENNSYLVANIA

VA Regional Office 

1000 Liberty Avenue 

Pittsburgh, PA 15222-4004 

PHILIPPINES

U.S. Department of Veterans Affairs 

1131 Roxas Blvd. 

Manila, PI 1000 

141
Appendix A VBA Regional Office Addresses

142

 

PUERTO RICO

VA Regional Office 

150 Carlos Chardon Avenue 

San Juan, PR 00918-1746 

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 

2501 W. 22nd Street 

Sioux Falls, SD 57117-5046 

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 

WYOMING26

2360 E. Pershing Blvd. 

Cheyenne, WY 82001 

26 The Denver Regional Office serves the state of Wyoming. The local address provided is for the Benefits Office.
Appendix B Contacting VA by Telephone

CONTACTING VA BY TELEPHONE 

General Benefits 

Disability Compensation, Pension, Vocational 

Rehabilitation, and Home Loans 

1-800-827-1000 * 

Education & 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 1-800-296-6379 

Veterans Healthcare in Philippines 011-632-833-4566 

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 * 

Persian Gulf Hotline 1-800-PGW-VETS* 

* Indicates toll-free numbers 

143
Appendix B Contacting VA by Telephone

144
Appendix C Web Sites

WEB SITES 

Web sites where additional information may be obtained about VA. 

VA WEB SITES 

Board of Veterans’ Appeals http://www.va.gov/vbs/bva/index.htm 

Center for Minority Veterans http://www.va.gov/minority/index.htm 

Center for Women Veterans http://www.va.gov/womenvet/index.htm 

Compensation & Pension Benefits Home Page http://www.vba.va.gov/bln/21/internet.htm 

Education Benefits Home Page http://www.gibill.va.gov 

Health Benefits & Services http://www.va.gov/vbs/health/index.htm 

Home Loan Guaranty Service Home Page http://www.homeloans.va.gov 

Homeless Program Web Page http://www.va.gov/health/homeless 

Hot Topics http://www.va.gov/hottopic/index.htm 

Life Insurance Program Home Page http://www.insurance.va.gov. 

National Cemetery Administration Home Page http://www.cem.va.gov 

Public Affairs & Special Events http://www.va.gov/opa/index.htm 

VA Home Page – Department of Veterans Affairs http://www.va.gov 

VA’s Office of Congressional Affairs Home Page http://www.va.gov/oca/index.htm 

VBA Forms Page http://www.vba.va.gov/pubs/forms1.htm 

Veterans Benefits Administration http://www.vba.va.gov 

Vocational Rehabilitation & Employment Services http://www.vba.va.gov/bln/vre/vbsvre.htm 

What’s New http://www.va.gov/whatsnew/index.htm 

White House http://www.whitehouse.gov 

CONGRESSIONAL WEB SITES 

House Committee on Veterans’ Affairs http://veterans.house.gov 

House of Representatives http://www.house.gov 

Senate http://www.senate.gov 

Senate Committee on Veterans’ Affairs http://www.senate.gov/~veterans 

WHITE HOUSE WEB SITE 

White House http://www.whitehouse.gov 

145
Appendix C Web Sites

146
 Index

INDEX 

A Page 

Active Home Loan Guaranties - Beginning FY 2000 113 

Active Home Loans Based on Gender - Beginning FY 2000 117 

Active Loans Outstanding - Based on Age - Beginning FY 2000 116 

Active Purchase Loans Based on Buyer Status - Beginning FY 2000 114 

Active Purchase Loans by Downpayment Status - Beginning FY 2000 114 

Addresses of Regional Offices 137 

Age Distribution for Insurance Programs 110 

Age Distribution of Active Home Loan Guaranties - Beginning FY 2000 116 

Age Distribution of Borrower - Loans Guaranteed During FY 1999 47 

Age Distribution of Children Receiving DIC - Beginning FY 2000 100 

Age Distribution of Compensation Recipients - Beginning FY 2000 95 

Age Distribution of Surviving Spouses Receiving Death Pension - Beginning FY 2000 103 

Age Distribution of Surviving Spouses Receiving DIC - Beginning FY 2000 99 

Age Distribution of Veterans Entitled to Vocational Training During FY 1999 52 

Age Distribution of Veterans Receiving Pension - Beginning FY 2000 101 

Age Distribution of Veterans Who Began Receiving Compensation During FY 1999 27 

Age Distribution of Veterans Who Successfully Completed Vocational Training - FY 1999 71 

Age Distribution of Vocational Training Applicants During FY 1999 51 

Age Distribution of Vocational Training Program Participants During FY 1999 56 

Age Distribution of VR&E Program Participants - Beginning FY 2000 120 

Age of Children Who Began Receiving DIC During FY 1999 35 

Age of Surviving Spouses Who Began Receiving Death Pension During FY 1999 39 

Age of Surviving Spouses Who Began Receiving DIC During FY 1999 35 

Age of Veterans Who Began Receiving Pension During FY 1999 37 

Annual Earnings of Veterans Who Completed Rehabilitation Program During FY 1999 69 

Annual Income of Eligible Borrower - Loans Guaranteed During FY 1999 47 

Applications for a Program of Rehabilitation Services 50 

Applications for Compensation by Number of Disabilities Claimed for FY 1999 14 

B 

Beneficiaries Leaving the Rolls for All Benefits Programs During FY 1999 60 

Beneficiaries Receiving Education Benefits - Beginning FY 2000 105 

Beneficiaries Who Began Receiving Benefits for Training During FY 1999 12 

Beneficiaries Who Began Receiving Death Pension During FY 1999 38 

Beneficiaries Who Began Receiving DIC During FY 1999 33 

Beneficiaries Who Began Receiving DIC During FY 1999 - By Relationship 34 

Beneficiaries Who Began Receiving Education Benefits During FY 1999 39 

Beneficiaries Who Began Receiving Ongoing Monthly Benefits During FY 1999 11 

Beneficiaries Who Obtained Coverage - Programs that Constitute Potential Liabilities - FY 1999 12 

Beneficiaries Whose Educational Assistance Terminated During FY 1999 65 

Benefits Programs In Brief 4 

Benefits that Constitute Potential Liabilities at the Beginning of FY 2000 76 

Benefits that Ended During FY 1999 60 

Body System - Most Common Service Connected Disabilities - Began Receiving FY 1999 23 

Branch of Service - Original Service Connected Claims Granted During FY 1999 29 

Branch of Service - Veterans Who Successfully Completed Vocational Training FY 1999 72 

Branch of Service - VR&E Program Participants - Beginning FY 2000 121 

Business Beginning of Fiscal Year 2000 75 

Business During FY 1999 11 

Buyer Status of Loans Guaranteed During FY 1999 45 

C 

Characteristics of Home Loan Guaranties - Beginning FY 2000 114 

Characteristics of Home Loan Guaranties During FY 1999 44 

Characteristics of the Training Being Pursued - Began Using During FY 1999 40 

147
 Index

Characteristics of Training Being Pursued by Beneficiaries - Beginning FY 2000 105 

Children Who Began Receiving DIC During FY 1999 34 

Page 

Combined Degree of Disability - Participants of Vocational Training Program During FY 1999 55 

Combined Degree of Disability - Total Veterans - Beginning FY 2000 77 

Combined Degree of Disability - Veterans Entitled to Vocational Training During FY 1999 51 

Combined Degree of Disability - Vocational Training Applications During FY 1999 50 

Combined Percent of Disability - Compensation Recipients - Beginning FY 2000 96 

Compensation Program - In Brief 4 

Compensation Program Liability 124 

Conditions Claimed & Disabilities for Which Compensation is Being Paid 13 

Contacting VA by Telephone 141 

D 

Death Rates 131 

Death Rates - TABLE - Comparison - U.S. Population and Veteran Compensation Experience 132 

Delimiting Date - Educational Assistance Terminated - FY 1999 65 

Demographic Characteristics - Veterans Participating in a VR&E Program - Beginning FY 2000 119 

Demographic Characteristics of Beneficiaries Receiving Death Pension - Beginning FY 2000 103 

Demographic Characteristics of Beneficiaries Who Began Receiving DIC During FY 1999 34 

Demographic Characteristics of DIC/Death Compensation Beneficiaries - Beginning FY 2000 97 

Demographic Characteristics of Participants Who Completed Vocational Training - FY 1999 70 

Demographic Characteristics of People Who Obtained Home Loan Guaranties During FY 1999 46 

Demographic Characteristics of People with Active Guarantied Home Loans 115 

Demographic Characteristics of Policyholders 110 

Demographic Characteristics of Surviving Spouses Who Began Receiving Pension - FY 1999 38 

Demographic Characteristics of Veterans Participating in Vocational Training Program - FY 1999 55 

Demographic Characteristics of Veterans Receiving Compensation - Beginning FY 2000 95 

Demographic Characteristics of Veterans Receiving Disability Pension - Beginning FY 2000 101 

Demographic Characteristics of Veterans Who Began Receiving Pension During FY 1999 37 

Demographic Characteristics of Veterans with Service-Connected Disabilities 27 

Dependency Status - Surviving Spouses Receiving DIC - Beginning FY 2000 99 

Dependency Status - VR&E Participants - Beginning FY 2000 122 

Dependency Status of Veterans Who Completed Vocational Training Program FY 1999 71 

Dependency Status of Vocational Training Program Participants During FY 1999 58 

Dependents Educational Assistance Program (DEA) 6 

Direct Loans to Native American Veterans During FY 1999 44 

Direct Loans to Native American Veterans Program 113 

Disabilities Most Frequently Service-Connected - Began FY 1999 26 

Discounted Estimated Future Benefit Payments - TABLE - FY 2000 - FY 2070 and Later 128 

Discounted Estimated Future Compensation Payments 127 

Disposition of Home Loan Guaranties Terminated During FY 1999 67 

Distribution of Active Home Loans Based on Gender - Beginning FY 2000 117 

Distribution of Active Purchase Loan Guaranties by Race – Beginning FY 2000 116 

Distribution of New Loan Guaranties by “First Time Buyer” Status 45 

Distribution of Training Time and Program - Beneficiaries Who Began Using Benefits - FY 1999 40 

Downpayment Status - Active Purchase Loans - Beginning FY 2000 114 

Downpayment Status - Loans Guaranteed During FY 1999 44 

E 

Education – In Brief 5 

Employment Services - Preparing and Searching for a Suitable Job 59 

Entitlement Exhausted - Educational Assistance Terminated - FY 1999 65 

Estimate of Compensation Program Liability as of September 30, 1999 124 

Estimated Future Benefit Payments 125 

Estimated Future Benefit Payments (Regular Monthly Benefits) - TABLE - FY2000 - FY 2069 126 

Estimated Future Benefit Payments for FY 2000 - FY 2069 124 

Evaluation for Entitlement for a Program of Rehabilitation Services 51 

148
 Index

F 

First Time Buyer Status - Home Loan Guaranties – Beginning FY 2000 114 

Forecasting Program Liabilities 123 

G Page 

Gender Distribution - Active Home Loans - Beginning FY 2000 117 

Gender Distribution - Participants in a Vocational Training Program - Beginning FY 2000 119 

Gender Distribution - Pre- and Post-Training Annual Earnings During FY 1999 69 

Gender Distribution - VR&E Program Participants - Beginning FY 2000 120 

Gender Distribution of Veterans Entitled to Vocational Training During FY 1999 52 

Gender Distribution of Veterans Granted Service Connection During FY 1999 28 

Gender Distribution of Veterans Participating in Vocational Training Program During FY 1999 55 

Gender Distribution of Veterans Who Completed Vocational Program During FY 1999 70 

Gender Distribution of Vocational Training Applicants During FY 1999 50 

Gender Distribution of Vocational Training Program Participants During FY 1999 56 

Government Life Insurance - In Brief 7 

Grants and Denials by Individual Disabilities Claimed During FY 1999 31 

Grants and Denials for Service-Connected Disability Claims During FY 1999 31 

H 

Highlights of Veterans Benefits History 3 

History - Highlights of Veterans Benefits 3 

Home Loan Guaranty - In Brief 8 

Home Loan Guaranty Entitlements - Summary 9 

Home Loans Guaranteed During FY 1999 43 

Home Loans Guaranteed During FY 1999 Based on Age 47 

Home Loans Guaranteed During FY 1999 Based on Annual Income 47 

I 

Individual SC Disabilities by Body System and Degree of Disability - Beginning FY 2000 80 

Individual Service-Connected Disabilities by Body System 17 

Insurance Coverage Issued During FY 1999 41 

Insurance Payments (Dividends, Loans, and Disability Payments) Made During FY 1999 42 

Insurance Payments During FY 1999 - Death Claims, Matured Endowment, and Cash Surrender 66 

Insurance Payments Made on a Monthly Basis - Beginning FY 2000 108 

Insurance Policies In Force - Beginning FY 2000 107 

Introduction to VBA and Its Benefits Programs 1 

L 

Length of Service - Original Service-Connected Claims Granted During FY 1999 30 

Length of Service - Veterans Who Successfully Completed Vocational Program FY 1999 73 

Length of Service - Vocational Training Program Participants During FY 1999 57 

Length of Service - VR&E Program Participants - Beginning FY 2000 121 

Liability for Future Compensation Benefits 124 

Life Insurance - Coverage Established During FY 1999 41 

Life Insurance - In Brief 7 

Life Insurance Policies Paid Off During FY 1999 66 

Life Insurance Policies that Lapsed During FY 1999 67 

Life Insurance Programs that Issue Coverage 8 

Life Insurance Programs that No Longer Issue Coverage 7 

Loan Guaranty - In Brief 8 

Loans Guaranteed During FY 1999 Based on Age 47 

Loans Guaranteed During FY 1999 Based on Annual Income 47 

Loans Guaranteed During FY 1999 by Period of Service or Entitlement 46 

M 

Marital Status of Parents Who Began Receiving DIC During FY 1999 36 

Marital Status of Surviving Parents - DIC Recipients - Beginning FY 2000 100 

Military Branch & Component - SGLI Coverage 111 

149
 Index

Mission Statement 1 

Montgomery GI Bill - Active Duty (MGIB) 6 

Montgomery GI Bill - Selected Reserve (MGIB-SR) 6 

Monthly Benefits During Training at the Beginning of FY 2000 75 

Most Common Reasons Compensation Payments Ended During FY 1999 61 

Most Common Reasons Death Pension Payments Ended During FY 1999 64 

Page 

Most Common Reasons DIC and Death Compensation Payments Ended During FY 1999 62 

Most Common Reasons Disability Pension Payments Ended During FY 1999 63 

Most Prevalent Disabilities - Peacetime Periods 94 

Most Prevalent Disabilities - Gulf War Era 93 

Most Prevalent Disabilities - Korean War 91 

Most Prevalent Disabilities - Vietnam Era 92 

Most Prevalent Disabilities - WWII 90 

Most Prevalent Service-Connected Disabilities – Beginning of FY 2000 89 

Most Prevalent Service-Connected Disabilities by Body System - Began Receiving FY 1999 22 

Most Prevalent Service-Connected Disabilities within Body Systems - Beginning FY 2000 85 

N 

Number of Beneficiaries Receiving Death Pension - Beginning FY 2000 103 

Number of Beneficiaries Receiving DIC/Death Compensation - Beginning FY 2000 97 

Number of Disabilities Determined to Be Service-Connected During FY 1999 14 

Number of Disabilities Per Claim - FY 1999 14 

Number of Individual Service-Connected Disabilities – Beginning FY 2000 78 

Number of Original and Subsequent Compensation Claims During FY 1999 31 

Number of Policyholders and Value of Coverage - Beginning FY 2000 107 

Number of SGLI Members Covered in $10,000 Increments 112 

Number of Veterans Receiving Disability Pension - Beginning FY 2000 101 

Number of Veterans Who Began Receiving Compensation During FY 1999 13 

Number of Veterans Who Received Employment Services During FY 1999 59 

Number of Vocational Training Program Training Plans Developed During FY 1999 53 

O 

Occupational Category - Pre and Post-Training Annual Earnings During FY 1999 69 

Occupational Goals and Training Activities - Vocational Training Program - During FY 1999 54 

Occupational Goals/Training Activities - Participants in VR&E Program - Beginning FY 2000 118 

Ongoing Monthly Benefits at the Beginning of FY 2000 75 

Original and Subsequent Claims 30 

Original and Subsequent Compensation Claims During FY 1999 31 

Original Service-Connected Claims Granted During FY 1999 by Branch of Service 29 

Original Service-Connected Claims Granted During FY 1999 by Length of Service 30 

Original Service-Connected Claims Granted During FY 1999 by Period of Service 29 

Outstanding Home Loans Based on Age - Beginning FY 2000 116 

P 

Parents Receiving DIC by Marital Status - Beginning FY 2000 100 

Parents Who Began Receiving DIC During FY 1999 34 

Parents Who Began Receiving DIC During FY 1999 by Marital Status 36 

Participants - VR&E Programs During FY 1999 49 

Participants of Vocational Training Program with Serious Employment Handicap During FY 1999 56 

Participating in a Program of Rehabilitation Services 53 

Pension - In Brief 5 

Percentage of Grants & Denials of Original Claims for Service-Connection - During FY 1999 32 

Period of Service - Compensation Recipients – Beginning FY 2000 96 

Period of Service - Original Service Connected Claims Granted During FY 1999 29 

Period of Service - Veterans Who Successfully Completed Vocational Training FY 1999 74 

Period of Service - VR&E Program Participants - Beginning FY 2000 121 

Period of Service Distribution – DIC/Death Compensation Beneficiaries - Beginning FY 2000 97 

150
 Index

Period of Service Distribution of Death Pension Recipients - Beginning FY 2000 104 

Period of Service Distribution of Veterans Receiving Pension - Beginning FY 2000 102 

Period of Service or Entitlement - Active Home Loans - Beginning FY 2000 115 

Period of Service or Entitlement - Loans Guaranteed During FY 1999 46 

Planning a Program of Rehabilitation Services 53 

Policies that Lapsed During FY 1999 - Life Insurance 67 

Policies that were Paid Off During FY 1999 - Life Insurance 66 

Post-Vietnam Era Veterans’ Educational Assistance Program (VEAP) 5 

Pre- and Post Training Annual Earnings by Gender 69 

Page 

Pre- and Post-Training Annual Earnings - Vocational Rehabilitation Program - FY 1999 69 

Prior Education Level - VR&E Program Participants - Beginning FY 2000 122 

Prior Education Level of Vocational Training Program Participants During FY 1999 58 

Prior Educational Level of Veterans Who Completed Vocational Training During FY 1999 71 

Prior Use of VA Education Benefits - VR&E Program Participants - Beginning FY 2000 122 

Prior Use of VA Educational Benefits - Participants Vocational Training Program - FY 1999 58 

Programs that Constitute Potential Liabilities - Obtained Coverage During FY 1999 12 

Programs that Pay Monthly Benefits During Training - Beginning FY 2000 75 

Projected FY 2000 Newly Adjudicated Compensation Cases - TABLE - Age & Gender 134 

Purchase Loans Guaranteed During FY 1999 Based on Buyer Status 45 

Purchase Loans Guaranteed During FY 1999 by Downpayment Status 44 

Purchase Loans Vs. Refinance Loans – Beginning FY 2000 113 

Purpose of VBA’s Annual Benefits Report 1 

R 

Race Distribution of Borrower - Loans Guaranteed During FY 1999 48 

Race Distribution of Veterans Granted Service Connection During FY 1999 28 

Race Information - Active Purchase Loans - Beginning FY 2000 116 

Ranking Among Commercial Life Insurance Companies` 109 

Ranking of Individual Service-Connected Disabilities by Body System - Began Receiving FY 1999 17 

Ranking of Individual Service-Connected Disabilities by Body System - Beginning FY 2000 79 

Rates of Newly Adjudicated Compensation Cases 133 

Rates of Newly Adjudicated Compensation Cases for Veterans - TABLE - Age & Gender 135 

Reasons Compensation Payments Ended During FY 1999 61 

Reasons Death Pension Payments Ended During FY 1999 64 

Reasons Disability Pension Payments Ended During FY 1999 63 

Reasons Service-Connected Death Benefits Ended During FY 1999 62 

Reasons Vocational Rehabilitation Program Ended During FY 1999 68 

Rehabilitation of Veterans with Service-Connected Disabilities 49 

Relationship of Beneficiaries Who Began Receiving DIC During FY 1999 34 

Relationship to Veteran - DIC Beneficiaries - Beginning FY 2000 99 

S 

Serious Employment Handicap - Veterans Entitled to Vocational Training During FY 1999 53 

Serious Employment Handicap - Veterans Who Completed Training During FY 1999 68 

Serious Employment Handicap - VR&E Training Program Participants - Beginning FY 2000 120 

Service Connected Disabilities by Combined Percent - Began Receiving During FY 1999 15 

Service Period of Veterans Entitled to Vocational Training During FY 1999 52 

Service Period of Vocational Training Program Participants During FY 1999 57 

Service-Connected Disabilities by Body Systems 17 

Service-Connected Disabilities-by Percent and Body System-Began Receiving FY 1999 18 

Service-Connected Disability Compensation by Percentage During FY 1999 32 

Service-Connected Disability Grants and Denials by Individual Disability During FY 1999 31 

SGLI Coverage 111 

SGLI Coverage in $10,000 Increments 112 

Special Adapted Housing Grants and Direct Loans to Native American Veterans During FY 1999 44 

Summary of Active Accounts for All Benefits Programs - Beginning FY 2000 75 

Summary of Beneficiaries Entering All Benefits Program Rolls During FY 1999 11 

151
 Index

Surviving Spouses Who Began Receiving Death Pension by Program During FY 1999 39 

Surviving Spouses Who Began Receiving DIC During FY 1999 34 

T 

Table 1 - Estimated Future Benefit Payments 125 

Table 2 - Discounted Estimated Future Compensation Payments 127 

Table 3 - Veterans Receiving Compensation 129 

Table 4 - Death Rates 131 

Table 5 - Rates of Newly Adjudicated Compensation Cases 133 

Telephone Numbers - General Benefits, Healthcare Benefits, Miscellaneous 141 

The 20 Most Prevalent Service-Connected Disabilities - Beginning FY 2000 89 

The Future - Forecasting Program Liabilities 123 

Page 

Training Plans Developed During FY 1999 - VR&E Program 53 

Training Time and Program - Beginning FY 2000 106 

Training Time Distribution - Beneficiaries Who Began Receiving Education Benefits - FY 1999 40 

Training Type and Program for Beneficiaries Who Began Using Education Benefits - FY 1999 40 

Type of Training - Participants in a Vocational Training Program - Beginning FY 2000 119 

Type of Training Activity by Gender - Vocational Training During FY 1999 70 

Type of Training and Program - Beginning FY 2000 105 

Type of Training Distribution - Beneficiaries Who Began Receiving Education Benefits - FY 1999 40 

Type of Training Distribution - Vocational Training Program During FY 1999 55 

Types of Home Loans Guaranteed During FY 1999 43 

V 

VA Web Sites 143 

VBA Regional Office Addresses 137 

Veteran Participants - VR&E Programs - Beginning FY 2000 118 

Veterans Ending Participation in a Vocational Training Program During FY 1999 68 

Veterans Entitled to Vocational Training with a Serious Employment Handicap During FY 1999 53 

Veterans Participating in a Vocational Training Program by Branch of Service During FY 1999 57 

Veterans Participating in a Vocational Training Program by Dependency Status During FY 1999 58 

Veterans Participating in a Vocational Training Program by Length of Service During FY 1999 57 

Veterans Participating in a Vocational Training Program by Period of Service During FY 1999 57 

Veterans Receiving Compensation as of September 30, 1999 - TABLE - by Age & Gender 130 

Veterans Receiving Compensation Benefits at the Beginning of FY 2000 77 

Veterans Receiving Compensation by Combined Percent - Beginning FY 2000 78 

Veterans Receiving Service-Connected Benefits by Period of Service – Beginning FY 2000 77 

Veterans Who Began Receiving Disability Pension During FY 1999 36 

Veterans with a Serious Employment Handicap Who Completed Training During FY 1999 68 

Vision Statement 1 

Vocational Rehabilitation and Employment - In Brief 10 

Vocational Rehabilitation and Employment Participants During FY 1999 49 

Vocational Rehabilitation Program Terminations During FY 1999 68 

Vocational Training Applicants During FY 1999 - by Combined Degree of Disability 50 

Vocational Training Applicants During FY 1999 - by Gender 50 

Vocational Training Program by Occupational Goal - Beginning FY 2000 118 

Vocational Training Program by Type of Training and Gender - Beginning FY 2000 119 

Vocational Training Program Participants - Prior Education Level 58 

Vocational Training Program Participants by Occupational Goal During FY 1999 54 

VR&E Program Participants - Beginning FY 2000 118 

VR&E Program Participants - by Age - Beginning FY 2000 120 

VR&E Program Participants - by Branch of Service - Beginning FY 2000 121 

VR&E Program Participants - by Dependency Status - Beginning FY 2000 122 

VR&E Program Participants - by Gender - Beginning FY 2000 120 

VR&E Program Participants - by Length of Service - Beginning FY 2000 121 

VR&E Program Participants - by Period of Service - Beginning FY 2000 121 

VR&E Program Participants - by Prior Education Level - Beginning FY 2000 122 

152
 Index

153

VR&E Program Participants - by Prior Use of VA Benefits - Beginning FY 2000 122 

VR&E Program Participants with Serious Employment Handicap - Beginning FY 2000 120 

W 

Web Sites 143