Annual Benefits Report

Fiscal Year 2002

Veterans Benefits

Administration

Department of Veterans Affairs

Annual Benefi ts Report

Fiscal Year 2002

Veterans Benefi ts

Administration

Department of Veterans Affairs

August July 2003
THE UNDER SECRETARY OF VETERANS AFFAIRS FOR BENEFITS

WASHINGTON, D.C 20420

Dear Reader:

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

Fiscal Year 2002. This report transforms the essential data of VBA's core activities into the

information that will assist you in more fully comprehending our mission of serving the Nation's

veterans, as well as the efforts of our dedicated employees to improve our delivery of those

services.

This is the fifth edition of the Annual Benefits Report. Our publication of this report reinforces

VBA's continued commitment to our stakeholders and business partners to provide

comprehensive data regarding the activities of our five benefit programs. We have enhanced

the publication content in this edition with tables and graphs that are more descriptive.

Additional emphasis is given to pertinent summary information concerning VA beneficiaries,

and five-year trends are provided using information from our previous annual reports. We also

changed the format to individual chapters based upon each of our business lines to highlight

the unique characteristics of each of our programs.

We anticipate the Annual Benefits Report will provide a dynamic informational management

reference tool for those in the business of serving America's veterans. We encourage

meaningful and positive feedback and suggestions to assist us in improving the quality and

content of the report.

This year's cover for the Annual Benefits Report honors those who made the total sacrifice in

defense of their country, as symbolized by the Vietnam Veterans Memorial Wall located in

Washington, DC.

~~4
i

Veterans Benefits Annual Benefits Report FY 2002

Table of Contents

Chapter 1 – Introduction............................................................1-1

Our Mission...............................................................................................1-1

Our Vision.................................................................................................1-1

Our Core Values........................................................................................ 1-2

Purpose of VBA’s Annual Benefits Report........................................................1-3

Data Presentation and Analysis.....................................................................1-4

Future ABR Considerations...........................................................................1-4

VBA’s Benefit Programs – Overview...............................................................1-5

Chapter 2 – Compensation and Pension......................................2-1

C&P Benefit Program – Overview.................................................................. 2-1

Compensation Based Upon Service Connected Disability or Death................. 2-1

Pension Based Upon Nonservice Connected Disability or Death

 and Financial Need................................................................................ 2-2

Compensation and Pension Business – Fiscal Year 2002.................................. 2-2

Summary of Beneficiaries Entering Compensation and Pension

 Program Rolls During Fiscal Year 2002.................................................... 2-2

Data for Compensation and Pension Programs.......................................... 2-3

1. Compensation Based Upon Service – Connected Disability................. 2-3

2. Compensation Based Upon Service – Connected Death..................... 2-9

3. Pension Based Upon Nonservice – Connected Disability.................. 2-11

4. Pension Based Upon Nonservice – Connected Death....................... 2-12

Compensation and Pension Business – Beginning Fiscal Year 2003.................. 2-15

Summary of Active Compensation and Pension Accounts

at the Beginning of Fiscal Year 2003...................................................... 2-15
ii

Table of Contents

Data for Compensation and Pension Programs......................................... 2-15

1. Compensation Based Upon Service – Connected Disability................ 2-15

2. Compensation Based Upon Service – Connected Death.................... 2-35

3. Pension Based Upon Nonservice – Connected Disability................... 2-39

4. Pension Based Upon Nonservice – Connected Death........................2-42

The Future – Forecasting Compensation Program Liabilities............................. 2-45

Forecasting Program Liabilities.............................................................. 2-45

1. Future Compensation Benefits..................................................... 2-45

2. Estimated Future Benefit Payments by Fiscal Year.......................... 2-46

Compensation and Pension Veteran Data Tables........................................... 2-48

Chapter 3 – Education...............................................................3-1

Education Programs – Overview....................................................................3-1

Montgomery GI Bill – Active Duty (MGIB)...................................................3-1

Montgomery GI Bill – Selected Reserve (MGIB SR).....................................3-2

Dependents Educational Assistance Program (DEA).................................... 3-2

Post - Vietnam Era Veterans Education Assistance Program (VEAP).............. 3-3

New Education Beneficiaries During Fiscal Year 2002....................................... 3-3

Characteristics of the Training Being Pursued by Beneficiaries...................... 3-4

1. By Type of Training..................................................................... 3-4

2. By Training Time........................................................................ 3-5

Total Education Beneficiaries During Fiscal Year 2002.......................................3-5

Beneficiaries Leaving Education Programs During Fiscal Year 2002..................... 3-6

Geographic Distribution of Benefits Number Trained During Fiscal Year 2002........ 3-8
iii

Table of Contents

Chapter 4 – Insurance...............................................................4-1

Life Insurance Program – Overview............................................................... 4-1

Matured Insurance Programs.................................................................. 4-1

Disabled Veterans Insurance Programs.................................................... 4-2

Uniformed Services and Post-Vietnam Veterans Insurance Programs............. 4-2

Ranking Among Commercial Life Insurance Companies............................... 4-3

Life Insurance - Government Life Insurance Programs In Which New Coverage

Is Issued................................................................................................... 4-4

1. Coverage Established During Fiscal Year 2002................................. 4-4

2. Policies that Lapsed in 2002..........................................................4-5

Life Insurance - Payments.......................................................................4-5

1. Lump Sum Payments Made to Policyholders During

 Fiscal Year 2002........................................................................4-5

2. Lump Sum Payments Made to Beneficiaries During

 Fiscal Year 2002........................................................................4-8

3. Monthly Payments to Policyholders as of Beginning of

 Fiscal Year 2003........................................................................4-9

4. Monthly Payments to Beneficiaries as of Beginning of 

Fiscal Year 2003....................................................................... 4-10

Life Insurance – Business Beginning Fiscal Year 2003............................... 4-11

1. Total Number of Policyholders and the Face Value

 of their Coverage......................................................................4-11

2. Demographic Characteristics of Policyholders..................................4-12

Chapter 5 – Loan Guaranty.........................................................5-1

Loan Guaranty Program – Overview.............................................................. 5-1

VA Home Loans Guaranteed Over The Past Five Years............................... 5-1

VA Home Loans May Be Used................................................................. 5-2

Summary of Home Loan Guaranty Entitlements

 and other Eligibility Criteria.....................................................................5-3
iv

Table of Contents

Fiscal Year 2002 Home Loan Guaranties................................................... 5-4

1. Total Loans Guaranteed............................................................... 5-4

2. Characteristics of Home Loan Guaranties........................................ 5-5

3. Specially Adapted Housing Programs and Direct Loans...................... 5-6

4. Demographic Characteristics of Recipients of Home

 Loan Guaranties........................................................................ 5-6

Active Home Loan Guaranties - As of October 1, 2003............................... 5-10

1. Total Active Guaranteed Loans.................................................... 5-10

2. Characteristics of Active Home Loan Guaranties............................. 5-10

3. Demographic Characteristics of All People with Active 

 Guaranteed Loans..................................................................... 5-11

Chapter 6 – Vocational Rehabilitation & Employment....................6-1

VR&E Veterans and Eligible Dependents Served During Fiscal Year 2002............ 6-1

Applicants for a Program of Rehabilitation and Employment

 Services (Step 1).................................................................................. 6-2

Evaluation and Planning or Extended Evaluation (Step 2)............................. 6-4

Participation in a Program of Rehabilitation Services (Step 3)........................ 6-7

Job Ready – Preparing for and Searching for a Suitable Job (Step 4)............ 6-14

Veterans Ending Their Participation in a Training Program.......................... 6-18

Rehabilitated (Step 5)...........................................................................6-18

1. Participants with Serious Employment Handicaps

 Who Completed Their Program.................................................... 6-18

2. Pre and Post Training Annual Earnings.......................................... 6-19

3. Demographic Characteristics of Participants

 Who Successfully Completed Training.......................................... 6-21

Appendices

VBA Regional Office Mailing Addresses......................................................... A-1

Contacting VA by Telephone........................................................................ B-1

Web Sites................................................................................................ C-1

Glossary.................................................................................................. G-1
Chapter 1 Introduction

Page 1 - 1

Chapter 1

INTRODUCTION

VETERANS BENEFITS ADMINISTRATION – OUR MISSION

VBA’s Mission Statement

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

partnership with the Veterans Health Administration and the

National Cemetery Administration, is to provide benefits and

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

compassionate manner in recognition of their service to the Nation.

VETERANS BENEFITS ADMINISTRATION – OUR VISION 

VBA’s Vision Statement

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

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

they are both recognized for their contribution and are part of

something larger than themselves; and taxpayers will feel that

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

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

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

Page 1 - 2

VETERANS BENEFITS ADMINISTRATION – OUR CORE VALUES

VBA’s CORE VALUES

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

our common purpose. All our efforts are directed toward meeting

their needs.

We are committed to communicating to our veterans and

employees in a timely, thorough, accurate, understandable and

respectful manner.

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

to bring about improvement in benefits and services, and the

climate in which they are provided.

We value understandable business processes that consistently

produce positive results.

We foster an environment that promotes personal and corporate

initiative risk-taking and teamwork.

We are open to change and flexible in our attitudes.

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

interactions.

We value a culture where everyone is involved, accountable,

respected and appreciated.

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

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

Page 1 - 3

PURPOSE OF VBA’S ANNUAL BENEFITS REPORT

“...To care for him who shall have borne the battle

and for his widow and his orphan...”

Even before President Lincoln spoke of this national obligation at his Second Inaugural, colonial and

revolutionary America had sought ways to recompense veterans - the Continental Congress enacted

the first national pension law on August 26, 1776. Veterans’ benefits and services have since emerged

and grown, not only to ensure a viable military - the objective the Continental Congress sought - but

also in response to the principle President Lincoln expressed - “To care for...”

The Veterans Benefits Administration (VBA), along with the Veterans Health Administration and the

National Cemetery Administration, carries on the legacy and has the distinct honor of administering

benefits to our Nation’s veterans. In addition, VBA does so at an astonishing rate - over $28 billion in

benefits and services delivered during Fiscal Year 2002.

These $28 billion in benefits and services are varied and have a far-reaching impact, not only on the

veteran community, but also on the whole of American society. These programs touch millions of lives

in fundamental ways. 

Compensation. Compensates veterans for the loss of earning capacity resulting from disability

incurred in or aggravated by military service. The program also indemnifies survivors in the

event that the veteran dies of service-related causes.

Pension. The pension program provides a minimum level of economic security to non-service

disabled wartime veterans, as well as survivors of wartime veterans. This program supports

those individuals facing severe financial hardship.

Education. The education program assists eligible veterans, service members, reservists, and

survivors and dependents in achieving their educational or vocational goals. The program

conveys opportunities to acquire knowledge and skills for the civilian job market.

Housing. The loan guaranty program helps bring the dream of homeownership within reach.

Vocational Rehabilitation and Employment. Leads to suitable employment or independence

in daily living when employment is not an option. 

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

A more complete description of each program is provided in the following chapters of this report. 

To paraphrase numerous veterans’ comments taken from VBA Customer Surveys, “It was an honor to

serve my country and I am grateful to now receive some service in return.”
Chapter 1 Introduction

Page 1 - 4

The intent of this Annual Benefits Report (ABR) is to clearly delineate the particulars of these benefits’

programs. The report will identify the current level of program participation by eligible persons and

profile the veteran/beneficiary consumers.

The purpose here is not to analyze work processes associated with day-to-day administration of the

programs, nor to report on performance. 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, the Federal government, and the nation.

DATA PRESENTATION AND ANALYSIS

As stated from last year’s edition, we have once again sought to improve this publication. We have

deliberately reduced the volume of data presented that provide minimal value for the reader while still

providing the core types of data that the reader will find useful.

This year’s edition has also undergone a re-organization in the presentation and layout of the data. For

ease of reference, we have presented this year’s data in individual chapters organized by business line

and programs. This should enable the reader to reference program information in an easier and more

efficient manner. We have also added charts and graphs depicting both current data as well as data

from the previous four years of ABR publications to show relevant trends and historical data for

comparisons. As part of the process, we will continue to evolve our data management capabilities to

improve the presentation and identification of historical trends.

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

understand that the stakeholders and readership of the ABR may interpret differently much of the data

and information we provide. To improve the understanding of presented information, VBA will continue

to share with its readers the source, methodology and interpretation of selected data in this and future

ABR editions. 

FUTURE ABR CONSIDERATIONS

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

contained herein must be capable of providing the reader with the ability to draw conclusions about

program activity and expectations. VBA will continue to enhance the methods of data validation to

ensure greater consistency in all publications. 

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

analysis, data modeling and other methods of critical evaluation, VBA will ascertain the most

meaningful data to present in the ABR. We will expand data and information about those areas and

elements of program activity where it is important for the reader to understand meaning beyond a single

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

descriptive information regarding the trends as they emerge. 

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

With a focus on continuous improvement, we will ensure that the present and future Annual Benefits
Chapter 1 Introduction

Page 1 - 5

Reports will assist VBA in meeting this commitment.

VBA’S BENEFITS PROGRAMS – OVERVIEW

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

important for all those who are interested in a comprehensive understanding of what VBA does and

why. VA Pamphlet 80-97-2, VA History in Brief, September 1997, provides such a history. This

pamphlet is available on the VA Home Page: http://www.va.gov/pubaff/histbrf.pdf 

In September 2002, the estimated veteran population was over 25 million.1 Of this number, nearly

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

nation’s population, approximately 70 million people are potentially eligible for VA benefits and services

because they are veterans, family members or survivors of veterans.

A complete discourse on VBA’s performance in administering these programs is contained in the

Department’s FY 2002 Performance and Accountability Report, dated January 2003. Program goals

and objectives are detailed in VA’s annual performance plans. The FY 2003 and FY 2004 plans can be

found on the Department’s web page: http://www.va.gov/about_va.

 

1 Veteran Population Projections through September 30, 2002, VA Office of Policy and Planning
Chapter 1 Introduction

Page 1 - 6
Chapter 2 Compensation and Pension

Page 2 - 1

Chapter 2

COMPENSATION AND PENSION

COMPENSATION & PENSION (C&P) BENEFIT PROGRAM – OVERVIEW

COMPENSATION BASED UPON SERVICE-CONNECTED DISABILITY OR DEATH 

Disability Compensation is a monetary benefit paid to veterans with service-connected disabilities.

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

aggravated during active military service. To be eligible for disability compensation, the veteran must

have been discharged under conditions other than dishonorable 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 such as the

anatomical loss or loss of use of a hand or foot, blindness, or deafness. 

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

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

and/or dependent parents of the following: 

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

person’s willful misconduct; 

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

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

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

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

of death)1

 and 

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

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

than one year immediately preceding death2

. 

 

1 38 U.S.C. 1318

2 Section 501 of P.L. 106-117 enacted on November 30, 1999
Chapter 2 Compensation and Pension

Page 2 - 2

PENSION BASED UPON NONSERVICE CONNECTED DISABILITY OR DEATH

 AND FINANCIAL NEED

VA pension programs provide a minimum level of economic security to nonservice disabled wartime

veterans, as well as survivors of wartime veterans. These programs are means tested and serve

veterans and survivors who are experiencing financial hardship. In other words, it is the total family

income from sources other than VA that determines the amount of the pension benefit payable to the

beneficiary. Law establishes income limits and benefit rates for these programs.

Wartime veterans who are age 65 or older, or permanently and totally disabled as the result of a

nonservice-connected 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 who is housebound. Benefits are also paid under two

protected, or “grand fathered,” 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 “grand fathered” predecessor programs.

COMPENSATION AND PENSION BUSINESS – FISCAL YEAR 2002

SUMMARY OF BENEFICIARIES ENTERING COMPENSATION AND PENSION PROGRAM

ROLLS DURING FISCAL YEAR 2002

The following table summarizes information about the number of people who began receiving

compensation and pension benefits during Fiscal Year 2002 and the monetary value of the benefits.

Total annual amount and average annual amounts reflected in the tables refer to Fiscal Year 2002 only.

Summary of Beneficiaries Who Began Receiving Compensation and Pension Benefits

During Fiscal Year 2002

Benefit Programs Number of

People Percent of Total

Total Annual

Amounts Paid in

FY 2002

Average Annual

Amounts Paid in

FY 2002

Compensation–Disability 147,686 60.1% $918,051,000 $6,216 

Compensation–Death1 18,706 7.6% $208,946,777 $11,170 

Pension–Disability 55,156 22.5% $410,877,848 $7,449 

Pension–Death2 24,098 9.8% $94,586,145 $3,925 

Total of All Programs 245,646 100.0% $1,632,461,770 $6,646 

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

 Includes only Surviving Spouses.
Chapter 2 Compensation and Pension

Page 2 - 3

DATA FOR COMPENSATION AND PENSION PROGRAMS

The following section provides specific information about each of the compensation and pension benefit

programs. This section describes the veterans, dependents, and survivors who began receiving

benefits during Fiscal Year 2002. This includes beneficiaries whose awards were previously stopped,

but who reestablished eligibility during the year. For comparison, some data for beneficiaries who

began receiving benefits during Fiscal Years 1998 through 2001 are also provided.

Several factors explain the notable increase in veterans initially receiving compensation in Fiscal Year

2002. At the end of Fiscal Year 2001, a substantial number of claims were undergoing review and

even complete re-adjudication because of the Veterans Claims Assistance Act (Public Law 106-475).

Also effective in late Fiscal Year 2001, a new regulation granted presumptive service-connection for

type 2 diabetes mellitus, based upon herbicide exposure (Title 38, U.S. Code of Federal Regulations

3.309(e)). This increasingly prevalent disease also has many disabling complications for which

veterans may receive additional compensation. Additionally, Fiscal Year 2002 saw aggressive claims

production nationwide.

For technical reasons, certain information cannot be accurately extracted from the RBA 2000 corporate

database this year. This precluded the ability to generate such data as: the number of disabilities

claimed per application, the number of claims of compensation granted according to the period or

length of military service, the ratio of benefits granted to those denied, and the total number of benefits

granted according to percentage of evaluation. We expect to begin to fully utilize the capabilities of the

RBA 2000 database during the next fiscal year.

1. Compensation Based Upon Service-Connected Disability

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

aggravated by a veteran’s military service (except when the disability resulted from willful misconduct of

the veteran). Only veterans (not dependents, survivors, or others) are eligible to receive VA disability

compensation. Disabilities are evaluated according to the VA Schedule for Rating Disabilities in Title

38, U.S. Code of Federal Regulations, Part 4. The extent of disability is expressed as a percentage

from 0 percent (for conditions that exist but are not disabling to a compensable degree) to 100 percent,

in increments of 10 percent.

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

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

disability on a person rarely includes every 10 percent increment from zero percent to 100 percent. For

example, the Rating Schedule provides four possible evaluations for the disabling effect of a disfiguring

scar of the head, face, or neck: 0, 10, 30, or 50 percent, according to the extent of the disfigurement.

Active pulmonary tuberculosis, on the other hand, is always rated 100 percent disabling.
Chapter 2 Compensation and Pension

Page 2 - 4

(a) Total Number of Veterans Who Began Receiving Disability Compensation During

Fiscal Year 2002

The following table shows data on veterans who began receiving disability compensation during Fiscal

Year 2002, total annual expenditures for those veterans, and the average annual amount paid to these

veterans.

Number of Veterans Who Began Receiving Compensation

 During Fiscal Year 2002

Total Number Total Annual

Amounts

Average Annual

Amounts

147,686 $918,051,000 $6,216

 Source: Benefits Delivery Network–COIN CP-127

(b) Service-Connected Disabilities by Combined Degree of Disability for Veterans Who

Began Receiving Compensation During Fiscal Year 2002 

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

on a veteran of all his or her service-connected disabilities. The combined degree of disability

determines the amount of the compensation payments. The following table shows information about

veterans who began receiving compensation during Fiscal Year 2002 by the combined percentage of

disability. The table also shows the total annual amount and average annual amount of compensation

paid to these veterans.

The combined percent is not calculated by summing all the individual degrees of disability. Instead, a

rating formula is applied to calculate the overall disabling effect of the veteran’s service-connected

disabilities. Under certain circumstances, multiple zero percent disabilities can have a combined

percentage of 10 percent (38 CFR 3.324). These are called “compensable zeros” and are shown in the

0% row on the table. 
Chapter 2 Compensation and Pension

Page 2 - 5

Service-Connected Disabilities by Combined

Degree for Veterans Who Began Receiving

Compensation During Fiscal Year 2002

Combined

Degree Number Total AnnualAmounts

Average Annual

Amounts

0% 529 $450,264 $851

10% 39,336 $48,874,193 $1,242

20% 37,822 $90,713,798 $2,398

30% 20,454 $83,768,948 $4,095

40% 15,476 $91,242,163 $5,896

50% 9,863 $81,813,585 $8,295

60% 7,726 $109,217,517 $14,136

70% 5,582 $111,597,354 $19,992

80% 2,688 $60,433,874 $22,483

90% 1,199 $29,469,645 $24,579

100% 7,011 $210,469,659 $30,020

TOTAL 147,686 $918,051,000 $6,216

Number Combined Percent 0% thru 30% 98,141

Percent of all 66.5%

Source: Benefits Delivery Network–COIN CP-127

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 2002.
Chapter 2 Compensation and Pension

Page 2 - 6

For comparison, the following table and chart provide this information for the five-year period 1998

through 2002.

Service-Connected Disabilities by Combined Degree

 for Veterans Who Began Receiving Compensation

 During Fiscal Years 1998-2002

Combined Degree 1998 1999 2000 2001 2002

0% 432 338 360 327 529

10% 38,517 33,589 29,441 25,161 39,336

20% 17,163 16,082 15,114 15,972 37,822

30% 14,968 13,628 13,332 12,785 20,454

40% 7,905 7,672 7,837 8,294 15,476

50% 5,285 5,154 5,590 5,976 9,863

60% 3,377 3,491 3,848 4,159 7,726

70% 2,255 2,501 2,741 3,230 5,582

80% 814 874 992 1,303 2,688

90% 291 340 383 529 1,199

100% 4,311 3,715 3,521 3,690 7,011

TOTAL 95,318 87,384 83,159 81,426 147,686

Combined Percent

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Number at Combined Percent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 98 FY 99 FY 00 FY 01 FY 02
Chapter 2 Compensation and Pension

Page 2 - 7

(c) Individual Service-Connected Disabilities by Body System

The following table shows all individual disabilities, qualified by body system, for veterans awarded

compensation during Fiscal Year 2002. The table includes zero percent disabilities only for those

veterans who are in receipt of compensation benefits. The body systems are shown in descending

order of the number of disabilities found service-connected within each system.

Ranking of Individual Service-Connected Disabilities

 by Body System for Veterans Who Began Receiving Compensation

 During Fiscal Year 2002

Body System Total

Number

Percent of

Total Body System TotalNumber

Percent of

Total

Musculoskeletal System 156,339 35.0% Respiratory System 19,304 4.3%

Impairment of Auditory Acuity 59,241 13.3% Genitourinary System 13,392 3.0%

Skin 41,453 9.3% Eye 5,320 1.2%

Endocrine System 39,852 8.9% Infectious Diseases, Immune Disorders,

Nutritional Deficiencies 3,300 0.7%

Neurological Conditions 28,794 6.4% Gynecological Conditions 2,795 0.6%

Cardiovascular System 26,643 6.0% Dental and Oral Conditions 2,087 0.5%

Mental Disorders 25,402 5.7% Hemic & Lymphatic Systems 1,262 0.3%

Digestive System 21,501 4.8% Grand Total–All Conditions 446,685 100.0%

Source: COIN CP-145
Chapter 2 Compensation and Pension

Page 2 - 8

iv. Disabilities Most Frequently Service-Connected

The next table shows the 10 disabilities most frequently found service-connected (by diagnostic cod

during fiscal year 2002. 

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

each Source: Benefits Delivery Network–COIN CP-145

The following table and chart provide information about individual service-connected disabilities

qualified by body system for veterans compensated during fiscal years 1998–2002.

Service-Connected Disabilities by Body System for Veterans Who Began Receiving Compensation

During Fiscal Years 1998-2002

Body System 1998 1999 2000 2001 2002

Musculoskeletal System 107,400 119,485 111,663 110,520 156,339

Impairment of Auditory Acuity 23,370 27,321 28,654 31,995 59,241

Skin 32,013 34,236 30,334 28,047 41,453

Endocrine System 2,350 2,501 2,485 5,918 39,852

Neurological Conditions 13,124 13,567 13,261 12,927 28,794

Cardiovascular System 13,638 15,588 14,594 14,253 26,643

Mental Disorders 17,043 17,680 16,613 16,065 25,402

Digestive System 17,873 18,823 16,807 15,109 21,501

Respiratory System 14,855 15,842 14,423 14,190 19,304

Genitourinary System 6,411 6,716 6,502 6,270 13,392

Eye 3,129 3,314 3,043 2,998 5,320

Infectious Diseases, Immune

Disorders, Nutritional

Deficiencies

2,486 2,524 2,280 2,081 3,300

Gynecological Conditions 2,958 3,154 2,678 2,285 2,795

Dental and Oral Conditions 1,365 1,533 1,518 1,310 2,087

Hemic & Lymphatic Systems 985 1,032 1,025 923 1,262

Grand Total–All Conditions 259,000 283,316 265,880 264,891 446,685

Service-Connected Disabilities by Body System for Veterans 

Receiving Compensation During Fiscal Year 2002

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1998 1999 2000 2001 2002

Musculoskeletal System

Impairment of Auditory Acuity

Skin

Endocrine System

Neurological Conditions

Cardiovascular System

Mental Disorders

Digestive System

Respiratory System

All Other
Chapter 2 Compensation and Pension

Page 2 - 9

2. Compensation Based Upon Service-Connected Death

DIC is payable to survivors of veterans who die of service-related causes. The data in this section

provide information about surviving spouses, children, and parents who began receiving DIC during

Fiscal Year 2002. For comparison, some information is also provided for those who began receiving

benefits during Fiscal Years 1998 through 2001. 

(a) Beneficiaries Who Began Receiving DIC During Fiscal Year 2002

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

2002. 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 DIC

 During Fiscal Year 2002

Type of Benefit Number Percent of Total Total Annual

Amounts

Average Annual

Amounts

Surviving Spouses 16,571 88.6% $200,901,413 $12,124

Surviving Children 1,940 10.4% $7,580,566 $3,908

Surviving Parents 195 1.0% $464,798 $2,384

TOTAL 18,706 100.0% $208,946,777 $11,170

Source: Benefits Delivery Network–COIN CP-127

For comparison, the following chart provides information about survivors who were initially awarded

DIC benefits during Fiscal Years 1998–2002.

 Beneficiaries Who Began Receiving DIC During Fiscal Years 1998-2002

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Surviving Spouses 11,516 14,524 15,679 14,289 16,571

Surviving Children 2,304 2,287 2,017 1,737 1,940

Surviving Parents 271 242 214 167 195

FY 98 FY 99 FY 00 FY 01 FY 02
Chapter 2 Compensation and Pension

Page 2 - 10

(b) Demographic Characteristics of Beneficiaries Who Began Receiving DIC During

Fiscal Year 2002

The following tables present information about the age of surviving spouses and children who began

receiving DIC benefits during Fiscal Year 2002:

(1) By Age of Surviving Spouse

Surviving Spouses Who Began Receiving DIC

 by Age During Fiscal Year 2002

Age Number Percent of All Ages Annual Payments

Under Age 25 63 0.4% $740,109

25–35 309 1.9% $3,622,455

36–45 794 4.8% $9,416,845

46–55 2,678 16.2% $31,943,959

56–65 3,462 20.9% $41,821,814

66–75 4,494 27.1% $54,985,937

Over 75 4,771 28.8% $58,370,294

All Ages 16,571 100.0% $200,901,413

Source: Benefits Delivery Network–COIN CP 127

(2) 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 under age 18 and those over age 18. Children over age 18 are

shown according to their beneficiary status: those eligible to receive DIC because of school attendance

and those eligible because they are helpless.

Children Who Began Receiving DIC by Age During Fiscal Year 2002

Under Age 181 Age 18 and Over in

School

Age 18 and Over

and Helpless

Total All

Categories

Number 614 1137 189 1,940

Percent 31.6% 58.6% 9.7% 100.0%

Annual Payments $3,192,800 $3,232,673 $1,155,092 $7,580,566

Source: Benefits Delivery Network–COIN CP 127

1

Includes 309 consolidated awards that account for more than one child
Chapter 2 Compensation and Pension

Page 2 - 11

3. Pension Based Upon Nonservice-Connected Disability

(a) Veterans Who Began Receiving Disability Pension During Fiscal Year 2002

The number of veterans added to the disability pension rolls during Fiscal Year 2002 is shown in the

next table. The table also shows the total annual amount and the average annual amount of disability

pension payments.

The table groups the two older pension programs Protected Pension or Old Law Pension and Section

306 Pension into one category called “Other Pension Programs.” No original claims can be granted

under the two protected, or “grand fathered,” pension programs. However, former beneficiaries under

these programs can have their benefits restored if they meet certain income and eligibility criteria.

Veterans Who Began Receiving Disability Pension

 by Program During Fiscal Year 2002

Type of Pension Number of

Veterans Percent of Total Total AnnualAmounts

Average Annual

Amounts

PL 95-588–New Law Pension 55,111 99.9% $410,806,212 $7,454

Other Pension Programs 45 0.1% $71,636 $1,592

TOTAL 55,156 100.0% $410,877,848 $7,449

Source: Benefits Delivery Network–COIN CP 103

For comparison, the following chart provides information about veterans who were added to the

disability pension rolls during Fiscal Years 1998–2002.

Veterans Who Began Receiving Pension During 

Fiscal Years 1998-2002 

0

10,000

20,000

30,000

40,000

50,000

60,000

No. of Veterans 46,563 46,522 45,194 39,477 55,156

FY 98 FY 99 FY 00 FY 01 FY 02
Chapter 2 Compensation and Pension

Page 2 - 12

(b) Age of Veterans Who Began Receiving Disability Pension During Fiscal Year 2002

The age distribution among veterans who began receiving disability pension in Fiscal Year 2002 is

shown in the table below. The total annual amount of disability pension payments for each age group

is shown in the last column of the table.

Veterans Who Began Receiving Disability Pension

 by Age During Fiscal Year 2002

Other Pension1 New Law Pension All Pension Programs

Age

Number Percent of All

Ages Number Percent ofAll Ages

Total For

Age Group

Percent

of All

Ages

Annual

Payments

Under Age 25 0 0.0% 33 0.1% 33 0.1% $245,987

25–35 0 0.0% 423 0.8% 423 0.8% $3,153,110

36–45 0 0.0% 798 1.4% 798 1.4% $5,948,420

46–55 2 4.4% 16,615 30.1% 16,617 30.1% $123,854,052

56–65 1 2.2% 8,131 14.8% 8,132 14.7% $60,611,367

66–75 10 22.2% 10,980 19.9% 10,990 19.9% $81,862,596

Over 75 32 71.1% 18,131 32.9% 18,163 32.9% $135,202,316

TOTAL 45 100.0% 55,111 100.0% 55,156 100.0% $410,877,848

Source: Benefits Delivery Network–COIN CP 103

1

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

4. Pension Based Upon Nonservice-Connected Death

(a) Beneficiaries Who Began Receiving Death Pension During Fiscal Year 2002

The number of surviving spouses added to the death pension rolls during Fiscal Year 2002 is shown in

the next table. The table also shows the total annual amount and the average annual amount of death

pension payments.

The table groups the two older pension programs into one category called “Other Pensions.” Original

claims can no longer be granted under the two older pension programs. However, survivors whose

awards were previously stopped can be reinstated if they meet certain income and entitlement criteria.
Chapter 2 Compensation and Pension

Page 2 - 13

Surviving Spouses Who Began Receiving Death Pension

 by Program During Fiscal Year 2002

Type of Pension

Number of

Surviving

Spouses

Percent of Total Total Annual

Amounts

Average Annual

Amounts

PL 95-588–New Law Pension 24,077 99.9% $94,556,157 $3,927

Other Pension Programs 21 0.1% $29,988 $1,428

TOTAL 24,098 100.0% $94,586,145 $3,925

Source: Benefits Delivery Network–COIN CP 103

For comparison, information about the number of surviving spouses added to the death pension rolls

during Fiscal Years 1998–2002 is shown in the following chart.

 Surviving Spouses Who Began Receiving Death Pension 

During Fiscal Years 1998-2002 

0

5,000

10,000

15,000

20,000

25,000

30,000

No. Surviving Spouses 25,692 22,653 22,119 19,773 24,098

FY 98 FY 99 FY 00 FY 01 FY 02
Chapter 2 Compensation and Pension

Page 2 - 14

(b) Age Distribution of Surviving Spouses Who Began Receiving Death Pension

During Fiscal Year 2002

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

pension in Fiscal Year 2002 by age groups. 

Surviving Spouses Who Began Receiving Death Pension

 by Age During Fiscal Year 2002

Other Pension1 New Law Pension All Pension Programs

Age

Number Percent of All

Ages Number Percent ofAll Ages

Total For

Age Group

Percent of

All Ages

Annual Payments

Under Age 25 0 0.0% 43 0.2% 43 0.2% $168,871

25–35 0 0.0% 61 0.3% 61 0.3% $239,562

36–45 0 0.0% 585 2.4% 585 2.4% $2,297,435

46–55 0 0.0% 2,615 10.9% 2,615 10.9% $10,269,733

56–65 0 0.0% 2,969 12.3% 2,969 12.3% $11,659,976

66–75 2 9.5% 5,116 21.2% 5,118 21.2% $20,094,616

Over 75 19 90.5% 12,688 52.7% 12,707 52.7% $49,855,953

TOTAL 21 100.0% 24,077 100.0% 24,098 100.0% $94,586,145

Source: Benefits Delivery Network–COIN CP 103

1

The “Other Pension” category groups the two older pension programs Protected Pension or Old Law and Section 306 Pension into one.
Chapter 2 Compensation and Pension

Page 2 - 15

COMPENSATION AND PENSION BUSINESS – BEGINNING FISCAL YEAR 2003

SUMMARY OF ACTIVE COMPENSATION AND PENSION ACCOUNTS AT THE BEGINNING OF

FISCAL YEAR 2003

The following table summarizes the number of active beneficiaries in compensation and pension

benefit programs at the beginning of Fiscal Year 2003 and the monetary value of their benefits. 

Summary of Beneficiaries Receiving Compensation and Pension Benefits

 at the Beginning of Fiscal Year 2003

Benefit Programs Number of People Percent of

Total

Total Annual

Amounts

Average Annual

Amounts

Compensation–Disability 2,398,287 72.9% $17,589,232,812 $7,334 

Compensation–Death 315,731 9.6% $3,688,272,387 $11,682 

Pension–Disability 346,579 10.5% $2,274,957,852 $6,564 

Pension–Death 230,267 7.0% $649,484,556 $2,821 

TOTAL 3,290,864 100.0% $24,201,947,607 $7,354 

“Compensation–Death” includes the DIC and Death Compensation programs.

DATA FOR COMPENSATION AND PENSION PROGRAMS

This section is organized by benefit program and provides information about people receiving

compensation and pension benefits at the beginning of Fiscal Year 2003. The tables in this section

describe the entire population of compensation and pension program beneficiaries at the beginning of

Fiscal Year 2003.

1. Compensation Based Upon Service-Connected Disability

(a) Total Veterans Receiving Service-Connected Disability Compensation

The following table shows the total number of veterans, by period of service, receiving disability

compensation at the beginning of Fiscal Year 2003. 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. 
Chapter 2 Compensation and Pension

Page 2 - 16

Total Veterans Receiving Service-Connected Disability Benefits

 Beginning of Fiscal Year 2003

Period of Service Number of

Veterans

Percent of

Total

Total Annual

Amounts

Average Annual

Amounts

Mexican Border 5 0.0% $55,800 $11,160

World War I 18 0.0% $152,892 $8,494

World War II 440,454 18.4% $2,998,105,572 $6,807

Korean War 164,728 6.9% $1,291,594,152 $7,841

Vietnam War 798,549 33.3% $7,498,890,840 $9,391

Gulf War Era 419,120 17.5% $2,190,650,028 $5,227

Peacetime Periods 575,413 24.0% $3,609,783,528 $6,273

TOTAL 2,398,287 100.0% $17,589,232,812 $7,334

Source: Benefits Delivery Network–RCS 20-0221

(b) Total Number of Veterans Receiving Disability Compensation Shown by Combined

Degree of Disability

The combined degree of disability is expressed as a percentage (from zero to 100 in increments of 10)

and represents the overall disabling effect on a veteran of all his or her service-connected disabilities.

Disability compensation monetary amounts are set by Congress and correspond to the combined

degree of disability. The following 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 2003. 

The “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 serviceconnected conditions. 
Chapter 2 Compensation and Pension

Page 2 - 17

Total Service-Connected Benefits

 by Combined Percent of Disability

 Beginning of Fiscal Year 2003

Combined

Degree Number Total AnnualAmounts

Average Annual

Amounts

0% 16,364 $13,930,188 $851

10% 805,229 $1,000,494,972 $1,242

20% 387,681 $929,836,308 $2,398

30% 313,207 $1,282,765,284 $4,096

40% 214,613 $1,265,300,304 $5,896

50% 128,508 $1,065,979,872 $8,295

60% 138,378 $1,956,165,828 $14,136

70% 107,097 $2,141,126,664 $19,992

80% 67,583 $1,519,464,636 $22,483

90% 32,897 $808,560,840 $24,579

100% 186,730 $5,605,607,916 $30,020

TOTAL 2,398,287 $17,589,232,812 $7,334

Number of beneficiaries by combined percentage of disability 0% thru 30% is 1,522,481.

This group as a percentage of the whole is 63.5%

 Source: Benefits Delivery Network–RCS 20-0223
Chapter 2 Compensation and Pension

Page 2 - 18

For comparison, the following table and chart provide combined percent information for veterans

receiving compensation at the beginning of fiscal years 1999–2003.

Total Service-Connected Disabilities by Combined Percent at Beginning of

Fiscal Years 1999-2003

Combined

Degree 1999 2000 2001 2002 2003

0% 18,505 17,961 17,469 16,906 16,364

10% 866,330 853,544 838,886 822,788 805,229

20% 369,600 370,441 370,852 372,113 387,681

30% 309,713 309,391 308,893 308,156 313,207

40% 190,573 194,151 197,126 200,954 214,613

50% 113,355 116,053 118,638 121,316 128,508

60% 113,384 118,144 122,622 126,788 138,378

70% 70,117 77,934 86,497 93,913 107,097

80% 44,018 48,083 52,422 56,945 67,583

90% 20,093 22,269 24,474 26,908 32,897

100% 161,361 166,482 170,307 174,316 186,730

TOTAL 2,277,049 2,294,453 2,308,186 2,321,103 2,398,287

Combined Percent

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Number by Combined Percent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY 99 FY 00 FY 01 FY 02 FY 03
Chapter 2 Compensation and Pension

Page 2 - 19

(c) Total Number of Individual Service-Connected Disabilities

As noted previously, 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 service-connected disabilities and their separate

evaluations. The table includes the total number of veterans receiving compensation and the average

number of service-connected disabilities per veteran. A “zero percent” service-connected disability

rating means that a disability exists and is related to the veteran’s service but is not so disabling that it

entitles the veteran to compensation payments. 

Data for the following tables are taken from compensation payment records. Consequently, the

disabilities of service-connected veterans who 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 veterans who receive compensation.

Total Individual Service-Connected Disabilities by Percent

 for Veterans Receiving Compensation

 Beginning of Fiscal Year 2003

Evaluation Number of

Disabilities

Percent of

All

0% 2,150,575 33.9%

10% 2,423,986 38.2%

20% 608,919 9.6%

30% 493,028 7.8%

40% 172,024 2.7%

50% 123,870 2.0%

60% 116,457 1.8%

70% 63,716 1.0%

80% 8,716 0.1%

90% 2,837 0.0%

100% 183,667 2.9%

TOTAL 6,347,795 100.0%

Total Veterans 2,398,287

Average number of disabilities

per veteran

2.65

Number of Disabilities 0% thru

30%:

5,676,508

Percent of all Disabilities: 89.4%

 Source: Benefits Delivery Network–RCS 20-0227 and COIN CP 127
Chapter 2 Compensation and Pension

Page 2 - 20

(d) Individual Service-Connected Disabilities by Body System

The following table shows all service-connected disabilities for veterans receiving compensation at the

beginning of Fiscal Year 2003, sorted by body system and listed in descending order of frequency.

Ranking of Individual Service-Connected Disabilities by Body System

Veterans Receiving Compensation Beginning of Fiscal Year 2003

Body System

Total

Number of

Disabilities

Percent of

Total Body System Total Numberof Disabilities

Percent

of Total

Musculoskeletal System 2,524,243 39.8% Genitourinary System 161,387 2.5%

Skin 750,407 11.8% Endocrine System 134,905 2.1%

Impairment of Auditory Acuity 587,524 9.3% Eye 108,407 1.7%

Digestive System 440,931 6.9% Infectious Diseases, Immune

Disorders, Nutritional Disorder

46,586 0.7%

Mental Disorders 433,618 6.8% Gynecological Conditions 39,325 0.6%

Cardiovascular System 385,924 6.1% Dental and Oral Conditions 28,924 0.5%

Neurological Conditions 369,377 5.8% Hemic and Lymphatic Systems 22,216 0.3%

Respiratory System 314,021 4.9% Grand Total–All Conditions 6,347,795 100.0%

Source: Benefits Delivery Network–RCS 20-0227

For comparison, the following table and chart provide disability information, sorted by body system, for

veterans receiving compensation at the beginning of Fiscal Years 1999-2003.
Chapter 2 Compensation and Pension

Page 2 - 21

 Codes

Musculoskeletal System 5000-5399

Eye 6000-6099

Impairment of Auditory Acuity 6100-6299

Infectious Diseases, Immune Disorders, Nutritional Disorders 6300-6399

Respiratory System 6501-6899

Cardiovascular System 7000-7199

Digestive System 7200-7399

Genitourinary System 7500-7599

Gynecological Conditions 7610-7699

Hemic and Lymphatic Systems 7700-7799

Skin 7800-7899

Endocrine System 7900-7999

Neurological Conditions 8000-8999

Mental Disorder 9200-9599

Dental and Oral 9900-9999

 

Individual Service-Connected Disabilities by Body System for Veterans Receiving Compensation

Beginning of Fiscal Years 1999-2003

Body System 1999 2000 2001 2002 2003

Musculoskeletal System 2,204,797 2,280,843 2,346,864 2,412,412 2,524,243

Skin 697,081 711,700 722,474 731,378 750,407

Impairment of Auditory Acuity 463,306 483,532 505,298 530,931 587,524

Digestive System 424,188 429,546 432,920 434,606 440,931

Mental Disorders 395,329 403,175 409,071 414,679 433,618

Cardiovascular System 326,947 339,195 348,645 357,259 385,924

Neurological Conditions 302,864 313,252 322,904 331,653 369,377

Respiratory System 286,199 293,179 298,789 303,890 314,021

Genitourinary System 132,164 136,852 141,583 145,938 161,387

Endocrine System 56,416 57,576 58,719 68,040 134,905

Eye 103,007 103,704 104,050 104,472 108,407

Infectious Diseases, Immune

Disorders, Nutritional Deficiencies 49,754 49,042 47,980 46,714 46,586

Gynecological Conditions 28,939 32,004 34,547 36,667 39,325

Dental and Oral Conditions 24,715 25,798 26,798 27,572 28,924

Hemic & Lymphatic Systems 20,354 20,792 21,153 21,471 22,216

Grand Total–All Conditions 5,516,060 5,680,190 5,821,795 5,967,682 6,347,795

Individual Service-Connected Disabilities by Body System for 

Veterans Receiving Compensation at Beginning of FY 2002

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1999 2000 2001 2002 2003

Number of Disabilities

Musculoskeletal System

Skin

Impairment of Auditory Acuity

Digestive System

Mental Disorders

Cardiovascular System

Neurological Conditions

Respiratory System

All Other Body Systems
Chapter 2 Compensation and Pension

Page 2 - 22

Total Individual Service-Connected Disabilities by Percent and Body System for Veterans

Receiving Compensation Beginning of Fiscal Year 2003

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) 646,858 25.6% 1,182,285 46.8% 368,007 14.6%

Eye

(Codes 6000-6099) 33,838 31.2% 30,383 28.0% 5,645 5.2%

Impairment of Auditory Acuity

(Codes 6100-6299) 287,344 48.9% 247,640 42.1% 18,127 3.1%

Infectious Diseases, Immune

Disorders, Nutritional Deficiencies

(Codes 6300-6399)

37,399 80.3% 3,417 7.3% 671 1.4%

Respiratory System

(Codes 6501-6899) 145,928 46.5% 96,182 30.6% 8,324 2.7%

Cardiovascular System

(Codes 7000-7199) 58,328 15.1% 186,460 48.3% 33,897 8.8%

Digestive System

(Codes 7200-7399) 252,497 57.3% 117,990 26.8% 29,209 6.6%

Genitourinary System

(Codes 7500-7599) 80,337 49.8% 32,219 20.0% 12,644 7.8%

Gynecological Conditions

(Codes 7610-7699) 14,084 35.8% 6,301 16.0% 132 0.3%

Hemic & Lymphatic Systems

(Codes 7700-7799) 6,280 28.3% 1,662 7.5% 1,185 5.3%

Skin

(Codes 7800-7899) 491,906 65.6% 223,238 29.7% 4,618 0.6%

Endocrine System

(Codes 7900-7999) 6,346 4.7% 33,120 24.6% 75,632 56.1%

Neurological Conditions

(Codes 8000-8999) 55,075 14.9% 157,319 42.6% 48,490 13.1%

Mental Disorders

(Codes 9200-9599) 17,574 4.1% 97,460 22.5% 295 0.1%

Dental and Oral Conditions

(Codes 9900-9999) 16,781 58.0% 8,310 28.7% 2,043 7.1%

Grand Total–All Conditions

(Codes 5000-9999) 2,150,575 33.9% 2,423,986 38.2% 608,919 9.6%

Source: Benefits Delivery Network–RCS 20-0227
Chapter 2 Compensation and Pension

Page 2 - 23

Total Individual Service-Connected Disabilities by Percent and Body System for Veterans

Receiving Compensation Beginning of Fiscal Year 2003

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) 139,725 5.5% 96,612 3.8% 19,199 0.8%

Eye

(Codes 6000-6099) 23,556 21.7% 7,189 6.6% 1,474 1.4%

Impairment of Auditory Acuity

(Codes 6100-6299) 10,579 1.8% 9,421 1.6% 3,683 0.6%

Infectious Diseases, Immune

Disorders, Nutritional Deficiencies

(Codes 6300-6399)

1,843 4.0% 291 0.6% 73 0.2%

Respiratory System

(Codes 6501-6899) 37,295 11.9% 2,043 0.7% 5,104 1.6%

Cardiovascular System

(Codes 7000-7199) 60,440 15.7% 7,246 1.9% 2,186 0.6%

Digestive System

(Codes 7200-7399) 19,116 4.3% 8,374 1.9% 870 0.2%

Genitourinary System

(Codes 7500-7599) 13,065 8.1% 4,751 2.9% 36 0.0%

Gynecological Conditions

(Codes 7610-7699) 9,452 24.0% 377 1.0% 8,729 22.2%

Hemic & Lymphatic Systems

(Codes 7700-7799) 9,782 44.0% 205 0.9% 25 0.1%

Skin

(Codes 7800-7899) 23,706 3.2% 2,057 0.3% 4,264 0.6%

Endocrine System

(Codes 7900-7999) 2,119 1.6% 10,785 8.0% 84 0.1%

Neurological Conditions

(Codes 8000-8999) 45,489 12.3% 22,176 6.0% 11,131 3.0%

Mental Disorders

(Codes 9200-9599) 95,643 22.1% 163 0.0% 66,839 15.4%

Dental and Oral Conditions

(Codes 9900-9999) 1,218 4.2% 334 1.2% 173 0.6%

Grand Total–All Conditions

(Codes 5000-9999) 493,028 7.8% 172,024 2.7% 123,870 2.0%

Source: Benefits Delivery Network–RCS 20-0227
Chapter 2 Compensation and Pension

Page 2 - 24

Total Individual Service-Connected Disabilities by Percent and Body System for Veterans

Receiving Compensation Beginning of Fiscal Year 2003

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) 47,731 1.9% 4,478 0.2% 1,910 0.1%

Eye

(Codes 6000-6099) 994 0.9% 1,169 1.1% 142 0.1%

Impairment of Auditory Acuity

(Codes 6100-6299) 3,159 0.5% 1,346 0.2% 1,807 0.3%

Infectious Diseases, Immune

Disorders, Nutritional Deficiencies

(Codes 6300-6399)

1,623 3.5% 18 0.0% 80 0.2%

Respiratory System

(Codes 6501-6899) 10,319 3.3% 224 0.1% 369 0.1%

Cardiovascular System

(Codes 7000-7199) 23,787 6.2% 321 0.1% 130 0.0%

Digestive System

(Codes 7200-7399) 5,526 1.3% 115 0.0% 98 0.0%

Genitourinary System

(Codes 7500-7599) 8,368 5.2% 9 0.0% 572 0.4%

Gynecological Conditions

(Codes 7610-7699) 81 0.2% 4 0.0% 20 0.1%

Hemic & Lymphatic Systems

(Codes 7700-7799) 516 2.3% 141 0.6% 6 0.0%

Skin

(Codes 7800-7899) 110 0.0% 40 0.0% 306 0.0%

Endocrine System

(Codes 7900-7999) 4,304 3.2% 32 0.0% 27 0.0%

Neurological Conditions

(Codes 8000-8999) 9,781 2.6% 3,295 0.9% 3,187 0.9%

Mental Disorders

(Codes 9200-9599) 147 0.0% 52,521 12.1% 59 0.0%

Dental and Oral Conditions

(Codes 9900-9999) 11 0.0% 3 0.0% 3 0.0%

Grand Total–All Conditions

(Codes 5000-9999) 116,457 1.8% 63,716 1.0% 8,716 0.1%

Source: Benefits Delivery Network–RCS 20-0227
Chapter 2 Compensation and Pension

Page 2 - 25

Total Individual Service-Connected Disabilities by Percent and Body System for Veterans

Receiving Compensation Beginning of Fiscal Year 2003

90% 100% GRAND 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) 1,131 0.0% 16,307 0.6% 2,524,243 100.0%

Eye

(Codes 6000-6099) 490 0.5% 3,527 3.3% 108,407 100.0%

Impairment of Auditory Acuity

(Codes 6100-6299) 594 0.1% 3,824 0.7% 587,524 100.0%

Infectious Diseases, Immune

Disorders, Nutritional Deficiencies

(Codes 6300-6399)

2 0.0% 1,169 2.5% 46,586 100.0%

Respiratory System

(Codes 6501-6899) 3 0.0% 8,230 2.6% 314,021 100.0%

Cardiovascular System

(Codes 7000-7199) 15 0.0% 13,114 3.4% 385,924 100.0%

Digestive System

(Codes 7200-7399) 0 0.0% 7,136 1.6% 440,931 100.0%

Genitourinary System

(Codes 7500-7599) 0 0.0% 9,386 5.8% 161,387 100.0%

Gynecological Conditions

(Codes 7610-7699) 0 0.0% 145 0.4% 39,325 100.0%

Hemic & Lymphatic Systems

(Codes 7700-7799) 0 0.0% 2,414 10.9% 22,216 100.0%

Skin

(Codes 7800-7899) 6 0.0% 156 0.0% 750,407 100.0%

Endocrine System

(Codes 7900-7999) 16 0.0% 2,440 1.8% 134,905 100.0%

Neurological Conditions

(Codes 8000-8999) 577 0.2% 12,857 3.5% 369,377 100.0%

Mental Disorders

(Codes 9200-9599) 3 0.0% 102,914 23.7% 433,618 100.0%

Dental and Oral Conditions

(Codes 9900-9999) 0 0.0% 48 0.2% 28,924 100.0%

Grand Total–All Conditions

(Codes 5000-9999) 2,837 0.0% 183,667 2.9% 6,347,795 100.0%

Source: Benefits Delivery Network–RCS 20-0227
Chapter 2 Compensation and Pension

Page 2 - 26

(e) Most Prevalent Service-Connected Disabilities

This section identifies the most common service-connected disabilities at the beginning of Fiscal Year

2002.

(1) By Body Systems

The following three-page table identifies the three most prevalent individual disabilities (by diagnostic

code) for each of the body systems, in descending order of frequency.

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 the 6,347,795 service-connected

disabilities. 

Most Prevalent Service-Connected Disabilities within Body Systems

 for Veterans Receiving Compensation

 Beginning of Fiscal Year 2002

Code Body System and Disability Total Number Percent of

System Total

Percent of

Grand Total

Musculoskeletal System 2,524,243 100.0% 39.8%

5299 Skeletal conditions 262,900 10.4% 4.1%

5257 Knee, other impairment of 229,745 9.1% 3.6%

5010 Arthritis, due to trauma 219,656 8.7% 3.5%

Skin 750,407 100.0% 11.8%

7805 Scars, other 287,136 38.3% 4.5%

7800 Scars, disfiguring, head, face, neck 94,198 12.6% 1.5%

7899 Skin condition 85,759 11.4% 1.4%

Auditory 587,524 100.0% 9.3%

6260 Tinnitus 196,541 33.5% 3.1%

6100 Auditory, acuity impairment, 0% 195,646 33.3% 3.1%

6297 Hearing Loss 63,452 10.8% 1.0%
Chapter 2 Compensation and Pension

Page 2 - 27

Code Body System and Disability Total Number Percent of

System Total

Percent of

Grand Total

Digestive System 440,931 100.0% 6.9%

7336 Hemorrhoids, external or internal 124,203 28.2% 2.0%

7305 Ulcer, duodenal 58,588 13.3% 0.9%

7338 Hernia, inguinal 49,530 11.2% 0.8%

Mental Disorders 433,618 100.0% 6.8%

9411 Post-traumatic stress disorder 165,939 38.3% 2.6%

9400 Generalized anxiety disorder 76,147 17.6% 1.2%

9203 Schizophrenia, paranoid type 34,002 7.8% 0.5%

Cardiovascular System 385,924 100.0% 6.1%

7101 Hypertensive vascular disease 157,789 40.9% 2.5%

7122 Cold injury residuals 55,081 14.3% 0.9%

7120 Varicose veins 41,861 10.8% 0.7%

Neurological Conditions and Convulsive Disorders 369,377 100.0% 5.8%

8100 Migraine 52,339 14.2% 0.8%

8515 Median nerve, paralysis of 30,167 8.2% 0.5%

8520 Sciatic nerve, paralysis of 27,142 7.3% 0.4%

Respiratory System 314,021 100.0% 4.9%

6602 Asthma, bronchial 47,729 15.2% 0.8%

6513 Sinusitis maxillary, chronic 33,935 10.8% 0.5%

6502 Septum, nasal, deviation of 25,223 8.0% 0.4%

Genitourinary System 161,387 100.0% 2.5%

7599 Genitourinary system condition 31,514 19.5% 0.5%

7527 Prostate gland injuries, infections, postoperative 26,292 16.3% 0.4%

7528 Malignant neoplasm 18,842 11.7% 0.3%

Eye 108,407 100.0% 1.7%

6099 Eye condition 12,580 11.6% 0.2%

6018 Eye, Conjunctivitis other, chronic 8,783 8.1% 0.1%

6070 Blindness, light perception only one eye, other 7,183 6.6% 0.1%
Chapter 2 Compensation and Pension

Page 2 - 28

Code Body System and Disability Total Number Percent of

System Total

Percent of

Grand Total

Endocrine System 134,905 100.0% 2.1%

7913 Diabetes mellitus 111,932 83.0% 1.8%

7903 Hypothyroidism 10,654 7.9% 0.2%

7900 Hyperthyroidism 4,712 3.5% 0.1%

Infectious Diseases, Immune Disorders, Nutritional

Deficiencies 46,586 100.0% 0.7%

6304 Malaria 32,869 70.6% 0.5%

6399 Infectious disease, immune disorder, nutritional 3,203 6.9% 0.1%

6351 HIV-Related illness 2,633 5.7% 0.0%

Gynecological Conditions 39,325 100.0% 0.6%

7617 Uterus and ovaries, removal of, complete 7,843 19.9% 0.1%

7618 Uterus, removal of, including corpus 7,724 19.6% 0.1%

7699 Gynecological condition or disorder of the breast 6,179 15.7% 0.1%

Dental and Oral Conditions 28,924 100.0% 0.5%

9905 Temporomandibular articulation, limited motion 9,427 32.6% 0.1%

9999 Dental and oral conditions 8,065 27.9% 0.1%

9904 Mandible, malunion of 6,652 23.0% 0.1%

Hemic & Lymphatic Systems 22,216 100.0% 0.3%

7706 Splenectomy 7,179 32.3% 0.1%

7799 Hemic & lymphatic system condition 4,025 18.1% 0.1%

7715 Non-Hodgkin's lymphoma 2,935 13.2% 0.0%

Grand Total–All Body Systems 6,347,795 100.0% 100.0%

Source: Benefits Delivery Network–RCS 20-0227
Chapter 2 Compensation and Pension

Page 2 - 29

(2) By the 10 Most Prevalent Disabilities

The following table identifies the 10 most prevalent service-connected disabilities (by diagnostic code)

for veterans receiving compensation at the beginning of Fiscal Year 2003.

The “Percent within System” column indicates the proportion of service-connected disabilities within

each body system that have been assigned the diagnostic code shown in the left column. The “Percent

of Total” column shows the proportion of all 6,347,795 service-connected disabilities. 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, the eight most prevalent service-connected

diagnostic codes account for 27.4 percent of all the disabilities. 

Most Prevalent Disabilities for Veterans Receiving Compensation

 Beginning of Fiscal Year 2003

Diagnostic

Code Disability Total Percent WithinSystem FY 2003

Percent of

Total FY

2003

Cumulative

Percent FY

2003

7805 Scars, other 287,136 38.3% 4.5% 4.5%

5299 Skeletal conditions 262,900 10.4% 4.1% 8.7%

5257 Knee, other impairment of 229,745 9.1% 3.6% 12.3%

5010 Arthritis, due to trauma 219,656 8.7% 3.5% 15.7%

6260 Tinnitus 196,541 33.5% 3.1% 18.8%

6100 Auditory, acuity impairment 195,646 33.3% 3.1% 21.9%

5295 Lumbosacral strain 181,551 7.2% 2.9% 24.8%

9411 Post-traumatic stress disorder 165,939 38.3% 2.6% 27.4%

7101 Hypertensive vascular disease 157,789 40.9% 2.5% 29.9%

5293 Intervertebral disc syndrome 150,454 6.0% 2.4% 32.3%

Total Disabilities at the Beginning of FY 2003 6,347,795 N/A 100.0% N/A

Source: Benefits Delivery Network–RCS 20-0227
Chapter 2 Compensation and Pension

Page 2 - 30

(3) By Period of Service

The following five tables in this section show the 10 service-connected disabilities most prevalent (by

diagnostic code) for veterans of World War II, the Korean War, the Vietnam War, the Gulf War Era, and

the various Peacetime periods. 

WORLD WAR II

Most Prevalent WORLD WAR II Disabilities at Beginning of Fiscal Year 2003

Diagnostic

Code Disability Number ofDisabilities

Percent of

Total

9400 Generalized anxiety disorder 44,077 5.3%

7805 Scars, other 38,728 4.7%

7122 Cold injury residuals 33,423 4.0%

5010 Arthritis, due to trauma 28,393 3.4%

9411 Post-traumatic stress disorder 20,685 2.5%

5276 Flatfoot, acquired 20,060 2.4%

6100 Auditory, acuity impairment 19,003 2.3%

6260 Tinnitus 18,226 2.2%

7804 Scars, superficial, tender & painful–objective demonstration 18,192 2.2%

7800 Scars, disfiguring, head, face, neck 14,604 1.8%

Total Number of Disabilities 831,112

Average Number of Disabilities per Veteran 1.89

Total Number of Disability Codes 882

Total World War II Veterans with Compensation 440,454

Percent of All Veterans with Compensation 18.4%

Total World War II Veteran Population1 4,761,782

Percent of Total Veteran Population 18.6%

Sources: Benefits Delivery Network–RCS 20-0227 and RCS 20-0221.

VA Office of Policy & Planning for Veteran Population as of September 30, 2002. 1

The sum includes veterans who served in multiple periods.
Chapter 2 Compensation and Pension

Page 2 - 31

KOREAN WAR

Most Prevalent KOREAN WAR Disabilities at Beginning of Fiscal Year 2003

Diagnostic

Code Disability Number ofDisabilities

Percent of

Total

7805 Scars, other 17,246 5.0%

7122 Cold injury residuals 13,190 3.9%

6100 Auditory, acuity impairment 10,265 3.0%

6260 Tinnitus 10,136 3.0%

5010 Arthritis, due to trauma 9,523 2.8%

7305 Ulcer, duodenal 7,957 2.3%

9411 Post-traumatic stress disorder 7,682 2.2%

7804 Superficial Scars 6,962 2.0%

9400 Generalized anxiety disorder 6,438 1.9%

5299 Condition of the skeletal system 6,205 1.8%

Total Number of Disabilities 341,716

Average Number of Disabilities per Veteran 2.07

Total Number of Disability Codes 846

Total Korean War Veterans with Compensation 164,728

Percent of All Veterans with Compensation 6.9%

Total Korean War Veteran Population1 3,733,179

Percent of Total Veteran Population 14.6%

Sources: Benefits Delivery Network–RCS 20-0227 and RCS 20-0221

VA Office of Policy & Planning for Veteran Population as of September 30, 2002 1

The sum includes veterans who served in multiple periods.
Chapter 2 Compensation and Pension

Page 2 - 32

VIETNAM WAR

Most Prevalent VIETNAM WAR Disabilities at Beginning of Fiscal Year 2003

Diagnostic

Code Disability Number ofDisabilities

Percent of

Total

7805 Scars, other 126,291 5.6%

9411 Post-traumatic stress disorder 121,873 5.4%

7913 Diabetes mellitus 88,259 3.9%

5299 Skeletal conditions 79,887 3.6%

6100 Auditory, acuity impairment 76,644 3.4%

6260 Tinnitus 68,969 3.1%

5257 Knee, other impairment of 65,761 2.9%

7101 Hypertensive vascular disease 60,632 2.7%

5010 Arthritis, due to trauma 58,589 2.6%

5295 Lumbosacral strain 52,754 2.3%

Total Number of Disabilities 2,249,964

Average Number of Disabilities per Veteran 2.82

Total Number of Disability Codes 887

Total Vietnam War Veterans with Compensation 798,549

Percent of All Veterans with Compensation 33.3%

Total Vietnam War Veteran Population1 8,292,502

Percent of Total Veteran Population 32.4%

Sources: Benefits Delivery Network–RCS 20-0227 and RCS 20-0221

VA Office of Policy & Planning for Veteran Population as of September 30, 2002 1

The sum includes veterans who served in multiple periods.
Chapter 2 Compensation and Pension

Page 2 - 33

GULF WAR ERA

Most Prevalent GULF WAR Era Disabilities at Beginning of Fiscal Year 2003

Diagnostic

Code Disability Number ofDisabilities

Percent of

Total

5299 Skeletal conditions 90,506 6.4%

5257 Knee, other impairment of 68,081 4.8%

5010 Arthritis, due to trauma 64,549 4.5%

5295 Lumbosacral strain 61,731 4.3%

6260 Tinnitus 56,716 4.0%

7805 Scars, other 47,816 3.4%

5293 Intervertebral disc syndrome 45,279 3.2%

7101 Hypertensive vascular disease 43,113 3.0%

6100 Auditory, acuity impairment 41,597 2.9%

5271 Ankle, limited motion of 32,163 2.3%

Total Number of Disabilities 1,423,114

Average Number of Disabilities per Veteran 3.40

Total Number of Disability Codes 857

Total Gulf War Era Veterans with Compensation 419,120

Percent of All Veterans with Compensation 17.5%

Total Gulf War Era Veteran Population1 3,573,355

Percent of Total Veteran Population 13.9%

Sources: Benefits Delivery Network–RCS 20-0227 and RCS 20-0221

VA Office of Policy & Planning for Veteran Population as of September 30, 2002 1

The sum includes veterans who served in multiple periods.
Chapter 2 Compensation and Pension

Page 2 - 34

PEACETIME PERIODS

Most Prevalent PEACETIME PERIODS Disabilities at Beginning of Fiscal Year 2003

Diagnostic

Code Disability Number ofDisabilities

Percent of

Total

5257 Knee, other impairment of 80,138 5.4%

5299 Skeletal conditions 77,759 5.2%

5010 Arthritis, due to trauma 58,448 3.9%

7805 Scars, other 56,689 3.8%

5295 Lumbosacral strain 54,338 3.6%

7101 Hypertensive vascular disease 49,749 3.3%

6100 Auditory, acuity impairment, 0% 48,101 3.2%

5293 Intervertebral disc syndrome 43,949 2.9%

6260 Tinnitus 42,479 2.8%

7336 Hemorrhoids, external or internal 35,534 2.4%

Total Number of Disabilities 1,491,357

Average Number of Disabilities per Veteran 2.59

Total Number of Disability Codes 892

Total Peacetime Periods Veterans with Compensation 575,413

Percent of All Veterans with Compensation 24.0%

Total Peacetime Periods Veteran Population 6,461,197

Percent of Total Veteran Population 25.2%

Sources: Benefits Delivery Network–RCS 20-0227 and RCS 20-0221

VA Office of Policy & Planning for Veteran Population as of September 30, 2002
Chapter 2 Compensation and Pension

Page 2 - 35

2. Compensation Based Upon Service-Connected Death

(a) Total Number of Beneficiaries Receiving DIC/Death Compensation Benefits at the

Beginning of Fiscal Year 2003

This table shows the number of beneficiaries receiving DIC or Death Compensation benefits at the

beginning of Fiscal Year 2003, the total projected annual payment to beneficiaries, and the projected

average annual payment to each beneficiary.

Total Beneficiaries Receiving Service-Connected Death Benefits Beginning of Fiscal Year 2003

Type of Benefit Number Percent of Total Total Annual

Amounts

Average Annual

Amounts

DIC–Surviving Spouses 293,820 93.1% $3,597,619,633 $12,244 

DIC–Surviving Children 12,517 4.0% $69,446,392 $5,548 

DIC–Surviving Parents 8,218 2.6% $20,078,218 $2,443 

SUBTOTAL 314,555 99.6% $3,687,144,243 $11,722 

Death Compensation 1,176 0.4% $1,128,144 $959 

GRAND TOTAL 315,731 100.0% $3,688,272,387 $11,682 

Source: Benefits Delivery Network–COIN CP-127 and RCS 20-0221

For comparison, the following chart shows the number of beneficiaries receiving DIC at the beginning

of Fiscal Years 1999-2003.

Beneficiaries Receiving DIC at Beginning of Fiscal Years 1999 - 2003

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Surviving Spouses 281,424 284,311 288,145 290,100 293,820

Surviving Children 13,438 13,219 12,877 12,516 12,517

Surviving Parents 12,898 11,634 10,413 9,384 8,218

FY 99 FY 00 FY 01 FY 02 FY 03
Chapter 2 Compensation and Pension

Page 2 - 36

(b) Demographic Characteristics of All DIC and Death Compensation Beneficiaries

This section provides demographic characteristics of beneficiaries receiving DIC or Death

Compensation benefits at the beginning of Fiscal Year 2003.

(1) By the Veteran’s Period of Service 

The following table shows total beneficiaries receiving DIC or Death Compensation sorted by the

veteran’s period of service. Also shown are projected total annual payments and average annual

payments, by period of service and program.
Chapter 2 Compensation and Pension

Page 2 - 37

Total Beneficiaries Receiving Service-Connected Death Benefits by Period of Service

Beginning of Fiscal Year 2003

Period of Service Number of

Beneficiaries1

Percent of

Beneficiaries

Total Annual

Amounts2

Average Annual

Amounts

Spanish American War 11 0.0% $128,939 $11,722 

Death Compensation 0 0.0% $0 $0 

DIC 11 0.0% $128,939 $11,722 

Mexican Border Period 2 0.0% $23,443 $11,722 

Death Compensation 0 0.0% $0 $0 

DIC 2 0.0% $23,443 $11,722 

World War I 1,957 0.6% $22,939,449 $11,722 

Death Compensation 0 0.0% $0 $0 

DIC 1,957 0.6% $22,939,449 $11,722 

World War II 114,040 36.1% $1,331,775,200 $11,678 

Death Compensation 462 39.3% $443,199 $959 

DIC 113,578 36.1% $1,331,332,001 $11,722 

Korean War 37,247 11.8% $429,840,911 $11,540 

Death Compensation 628 53.4% $602,444 $959 

DIC 36,619 11.6% $429,238,466 $11,722 

Vietnam War 114,356 36.2% $1,340,429,991 $11,722 

Death Compensation 2 0.2% $1,919 $959 

DIC 114,354 36.4% $1,340,428,072 $11,722 

Gulf War Era 9,274 2.9% $108,707,434 $11,722 

Death Compensation 0 0.0% $0 $0 

DIC 9,274 2.9% $108,707,434 $11,722 

Peacetime 38,845 12.3% $454,427,019 $11,698 

Death Compensation 84 7.1% $80,582 $959 

DIC 38,761 12.3% $454,346,437 $11,722 

All Periods 315,731 100.0% $3,688,272,387 $11,682

Death Compensation 1,176 100.0% $1,128,144 $959

DIC 314,555 100.0% $3,687,144,243 $11,722

Source: Benefits Delivery Network–RCS 20-0221 and COIN CP-127

1

 The number of DIC beneficiaries for each period of service is calculated by multiplying the total number of beneficiaries from the

COIN CP-127 by the percentage of DIC cases for each period of service (derived from RCS 20-0221). 2

 The total annual amounts of DIC for each period of service are calculated by multiplying the percentage of beneficiaries for each period of 

service (Derived from RCS 20-0221) by the total annual amounts from COIN CP-127.
Chapter 2 Compensation and Pension

Page 2 - 38

(2) 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 2003

Surviving

Spouse Child Parent TotalBeneficiaries

Number 293,820 12,517 8,218 314,555

Percent 93.4% 4.0% 2.6% 100.0%

Source: Benefits Delivery Network–COIN CP-127

(3) By Age of the Surviving Spouse

The age distribution of surviving spouses in receipt of DIC and the projected total annual payments, by

age group, is presented in the following table.

Surviving Spouses Receiving DIC by Age Beginning of Fiscal Year 2003

Age Number Percent of All Ages Annual Payments

Under Age 25 210 0.1% $2,492,637

25–35 2,390 0.8% $27,824,868

36–45 8,683 3.0% $101,458,985

46–55 27,006 9.2% $320,833,671

56–65 44,696 15.2% $542,854,062

66–75 74,191 25.3% $915,884,626

Over 75 136,644 46.5% $1,686,270,782

TOTAL 293,820 100.0% $3,597,619,633

Source: Benefits Delivery Network–COIN CP-127
Chapter 2 Compensation and Pension

Page 2 - 39

(4) By Age of the 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 beneficiary status: those eligible to receive

DIC because of school attendance and those eligible because they are helpless.

Children Receiving DIC by Age Beginning of Fiscal Year 2003

Under Age 181

Age 18 and

Over in

School

Age 18 and Over

and Helpless

Total All

Categories

Number 4,451 979 7,087 12,517

Percent 35.6% 7.8% 56.6% 100.0%

Annual Payments $23,350,029 $2,783,454 $43,312,909 $69,446,392

Source: Benefits Delivery Network—COIN CP-127

1

Includes 2,393 consolidated awards that account for more than one child.

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 2003 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.
Chapter 2 Compensation and Pension

Page 2 - 40

Total Veterans Receiving Disability Pension by Program Beginning of Fiscal Year 2003

Type of Pension Number of

Veterans

Percent of

Total

Total Annual

Amounts

Average

Annual

Amounts

Protected (Old Law) Pension 231 0.1% $268,008 $1,160

Section 306 Pension 16,856 4.9% $27,699,876 $1,643

PL 95-588–New Law Pension 329,492 95.1% $2,246,989,968 $6,820

TOTAL 346,579 100.0% $2,274,957,852 $6,564

Source: Benefits Delivery Network–RCS 20-0221

The following chart provides information about the number of veterans receiving disability pension at

the beginning of Fiscal Years 1999 - 2003. 

Veterans Receiving Pension at Beginning of Fiscal Years 1999- 2003

320,000

330,000

340,000

350,000

360,000

370,000

380,000

390,000

400,000

FY 99 FY 00 FY 01 FY 02 FY 03
Chapter 2 Compensation and Pension

Page 2 - 41

(b) Demographic Characteristics of Veterans Receiving Disability Pension at the

Beginning of Fiscal Year 2003

(1) By Age

The number and projected total annual amount of disability pension payments for each age group are

shown in the next table.

Total Veterans Receiving Disability Pension by Program Beginning Fiscal Year 2003

Other Pension New Law Pension All Pension Programs

Age Number Percent of All

Ages Number Percent ofAll Ages

Total For

Age Group

Percent

of All

Ages

Annual Payments

Under Age 20 0 0.0% 0 0.0% 0 0.0% $0

20–29 0 0.0% 181 0.1% 181 0.1% $1,550,604

30–39 0 0.0% 1,521 0.5% 1,521 0.4% $13,052,832

40–49 62 0.4% 21,844 6.6% 21,906 6.3% $193,432,056

50–59 763 4.5% 87,616 26.6% 88,379 25.5% $770,807,808

60–69 1,238 7.2% 38,889 11.8% 40,127 11.6% $257,473,428

70–79 7,311 42.8% 107,543 32.6% 114,854 33.1% $593,512,692

80–89 6,274 36.7% 66,249 20.1% 72,523 20.9% $405,616,824

90 and Over 1,438 8.4% 5,639 1.7% 7,077 2.0% $39,469,140

Age Unknown 1 0.0% 10 0.0% 11 0.0% $42,468

All Ages 17,087 100.0% 329,492 100.0% 346,579 100.0% $2,274,957,852

Average Age of Veterans: 68

Source: Benefits Delivery Network–RCS 20-0236

The “Other Pension” category groups the two older pension programs Protected Pension or Old Law and Section 306 Pension into one

category.
Chapter 2 Compensation and Pension

Page 2 - 42

(2) 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 2003. The total projected annual amount of disability pension payments

for each period of service is shown in the last column of the table.

Disability Pension by Period of Service Beginning Fiscal Year 2003

Other Pension New Law Pension All Pension Programs Annual

Period of

Service Number Percent of AllPeriods Number

Percent of

All

Periods

Total for

Period

Percent of

All Periods Payments

World War I 7 0.0% 33 0.0% 40 0.0% $384,828

World War II 12,268 71.8% 130,623 39.6% 142,891 41.2% $769,926,084

Korean War 3,823 22.4% 74,335 22.6% 78,158 22.6% $415,811,268

Vietnam War 989 5.8% 122,173 37.1% 123,162 35.5% $1,068,639,132

Gulf War Era 0 0.0% 2,328 0.7% 2,328 0.7% $20,196,540

All Periods 17,087 100.0% 329,492 100.0% 346,579 100.0% $2,274,957,852

Source: Benefits Delivery Network–RCS 20-0221

The “Other Pension” category groups the two older pension programs Protected Pension or Old Law and Section 306 Pension into one category.

4. Pension Based upon Nonservice-Connected Death

(a) Total Number of Beneficiaries Receiving Death Pension

at the Beginning of Fiscal Year 2003

The number of beneficiaries receiving death pension at the beginning of Fiscal Year 2003, as well as

projected total annual amounts and average annual amounts of payment for all three VA death pension

programs is provided in the following table. Beneficiaries include surviving spouses, children and

parents.

Total Beneficiaries Receiving Death Pension by Program Beginning Fiscal Year 2003

Type of Pension Number of

Beneficiaries Percent of Total Total AnnualAmounts

Average

Annual

Amounts

Protected Pension (Old Law) 838 0.4% $592,296 $707

Section 306 Pension 60,580 26.3% $64,330,716 $1,062

PL 95-588 (New Law Pension) 168,849 73.3% $584,561,544 $3,462

TOTAL 230,267 100.0% $649,484,556 $2,821

Source: Benefits Delivery Network–RCS 20-0221
Chapter 2 Compensation and Pension

Page 2 - 43

The following chart shows the number of beneficiaries receiving death pension at the beginning of

Fiscal Years 1999 – 2003.

Beneficiaries Receiving Death Pension 

at Beginning of Fiscal Years 1999 - 2003

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

FY 99 FY 00 FY 01 FY 02 FY 03

(b) Demographic Characteristics of Beneficiaries Receiving Death Pension at the

Beginning of Fiscal Year 2003

(1) By Age of 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 shown in the last column of the table.
Chapter 2 Compensation and Pension

Page 2 - 44

Total Surviving Spouses Receiving Death Pension by Age Beginning of Fiscal Year 2003

Other Pension New Law Pension All Pension Programs

Age Number Percent of All

Ages Number Percent ofAll Ages

Total For

Age Group

Percent of

All Ages Annual Payments

Under Age 25 0 0.0% 185 0.1% 185 0.1% $653,035

25–35 0 0.0% 306 0.2% 306 0.1% $1,080,156

36–45 31 0.1% 2,804 1.7% 2,835 1.3% $9,931,305

46–55 403 0.8% 15,271 9.3% 15,674 7.3% $54,362,150

56–65 1,226 2.5% 25,796 15.8% 27,022 12.7% $92,451,027

66–75 6,692 13.4% 40,445 24.7% 47,137 22.1% $150,368,866

Over 75 41,602 83.2% 78,772 48.2% 120,374 56.4% $325,071,309

Age Unknown 21 0.0% 0 0.0% 21 0.0% $22,957

All Ages 49,975 100.0% 163,579 100.0% 213,554 100.0% $633,940,805

Source: Benefits Delivery Network–COIN CP 103

The “Other Pension” category groups the two older pension programs Protected Pension or Old Law and Section 306 Pension into one.

(2) By the Veteran’s Period of Service

The number of surviving spouses, children and dependent parents receiving death pensions, sorted by

the veteran’s period of service, is shown in the table below. The table also includes projected annual

payments.

Nonservice-Connected Death Pension by Period of Service Beginning of Fiscal Year 2003

Other Pension New Law Pension All Pension Programs Annual

Period of

Service Number

Percent of

All

Periods

Number

Percent

of All

Periods

Total for

Period

Percent of

All Periods Payments

Wars of 1800s 339 0.6% 270 0.2% 609 0.3% $1,530,504

World War I 10,376 16.9% 10,761 6.4% 21,137 9.2% $46,859,820

World War II 46,344 75.5% 114,957 68.1% 161,301 70.0% $398,947,176

Korean War 3,717 6.1% 25,318 15.0% 29,035 12.6% $102,420,504

Vietnam War 642 1.0% 17,369 10.3% 18,011 7.8% $98,731,884

Gulf War Era 0 0.0% 174 0.1% 174 0.1% $994,668

All Periods 61,418 100% 168,849 100.0% 230,267 100.0% $649,484,556

Source: Benefits Delivery Network–RCS 20-0221

The “Other Pension” category groups the two older pension programs Protected Pension or Old Law and Section 306 Pension into one category.

“Wars of the 1800s” include the Civil War, Indian Wars, Mexican Border Era, and Spanish-American War.
Chapter 2 Compensation and Pension

Page 2 - 45

THE FUTURE – FORECASTING COMPENSATION PROGRAM LIABILITIES

FORECASTING PROGRAM LIABILITIES

This section projects financial obligations of the government to veterans and survivors beyond the

current fiscal year. The data presented in this section is drawn from a 2002 study that projected

compensation payments to veterans and survivors for the years 2003 through 2072.

1. Future Compensation Benefits

The total estimated future compensation payments of $2,826 billion ($2.8 trillion) represent the sum of

the cash flows needed from FY 2003 to FY 2072 to pay benefits.

Estimate of Compensation Program Future Benefit Payments as of September 30, 2002

Benefits Estimated Future

Benefits Payments

Benefits to Veterans $2,371 Billion

Benefits to Survivors $455 Billion

TOTAL $2,826 Billion

The estimated liability for the compensation program is based on the present value of expected future

compensation benefit payments for: 

• All veterans currently receiving benefits under these programs;

• All survivors currently receiving benefits under these programs;

• All future survivors of those veterans currently receiving benefit payments;

• All existing veterans not currently receiving benefit payments but who are expected

to receive them in the future;

• All future survivors of existing veterans not currently receiving benefit payments but

who are expected to receive them in the future; and,

• A provision for those currently in active military service who will become veterans in

the future (and their survivors).

These estimates reflect only current benefits and types of disability. They do not include additional

compensation that may arise in the future because of new regulatory or statutory disabilities.
Chapter 2 Compensation and Pension

Page 2 - 46

2. Estimated Future Benefit Payments by Fiscal Year

The table on the following page shows the expected total annual compensation benefit payments for

veterans and survivors through Fiscal Year 2072 (70 years). 

• The highest annual compensation outlay for payments to service-connected disabled

veterans is $47.4 billion and is expected to occur in 2034.

• The highest annual compensation outlay for payments to survivors of veterans

whose deaths are related to service is $7.5 billion and is expected to occur in 2055.

• The highest annual compensation outlay for combined payments is $54.2 billion and

is expected to occur in 2035. 

The model used to project the future benefit payments is based on estimates of:

• The number of beneficiaries expected to receive compensation during a fiscal year;

• Whether these beneficiaries will receive payments for a full fiscal year or part of a

fiscal year;

• The amount of benefits they will receive, including retroactive payments;

• The number of awards stopped during a fiscal year; and

• Cost of living adjustments that will apply to future benefit payments.
Chapter 2 Compensation and Pension

Page 2 - 47

 Estimated Future Benefit Payments by Fiscal Year

Fiscal

Year

Compensation

Veterans

Compensation

Survivors

Compensation Veterans

& Survivors

2003 $20,230,108,391 $4,211,719,306 $24,441,827,697 

2004 $21,695,594,800 $4,339,861,243 $26,035,456,042 

2005 $22,926,658,929 $4,448,640,051 $27,375,298,980 

2006 $23,976,063,423 $4,541,136,666 $28,517,200,089 

2007 $24,940,899,508 $4,630,089,628 $29,570,989,136 

2008 $25,863,526,313 $4,713,538,075 $30,577,064,389 

2009 $26,978,285,556 $4,835,092,858 $31,813,378,413 

2010 $28,058,325,508 $4,951,293,582 $33,009,619,090 

2015 $33,286,453,223 $5,421,371,072 $38,707,824,295 

2020 $38,432,266,631 $5,778,910,749 $44,211,177,380 

2025 $43,174,350,566 $6,087,652,215 $49,262,002,781 

2030 $46,521,896,401 $6,423,405,985 $52,945,302,386 

2034 $47,448,912,374 $6,726,917,149 $54,175,829,523 

2035 $47,411,467,813 $6,806,318,583 $54,217,786,396

2040 $45,855,123,884 $7,165,172,990 $53,020,296,875 

2045 $42,692,649,283 $7,399,162,725 $50,091,812,008 

2050 $37,899,746,062 $7,424,248,156 $45,323,994,218 

2055 $31,994,957,549 $7,469,576,252 $39,464,533,801 

2060 $25,443,577,017 $7,421,032,818 $32,864,609,835 

2065 $18,676,772,012 $7,261,320,063 $25,938,092,074 

2070 $12,427,963,213 $6,980,661,624 $19,408,624,836 

2071 $11,321,801,566 $6,909,198,381 $18,230,999,947 

2072 $10,276,045,781 $6,832,558,394 $17,108,604,175 

TOTAL $2,370,974,485,895 $454,982,411,246 $2,825,956,897,141

 Source: Compensation and Pension Programs–Liability for Future Benefits as of September 30, 2002

 PricewaterhouseCoopers LLP
Chapter 2 Compensation and Pension

Page 2 - 48

COMPENSATION AND PENSION

VETERAN DATA TABLES
Chapter 2 Compensation and Pension

Page 2 - 49

Estimated Veteran Population by Residence

at the Beginning of FY 2003

(In Ascending Order for US)

 Residence Number of Veterans

District of Columbia 40,617

Wyoming 57,236

North Dakota 59,058

Vermont 60,405

Alaska 68,050

South Dakota 77,609

Delaware 82,188

Rhode Island 96,342

Hawaii 116,309

Montana 106,060

Idaho 136,792

Utah 159,321

New Hampshire 133,232

Maine 148,137

Nebraska 167,500

New Mexico 187,006

West Virginia 195,180

Nevada 241,248

Mississippi 245,472

Kansas 257,452

Iowa 281,265

Connecticut 288,645

Arkansas 276,651

Oregon 376,064

Kentucky 370,930

Oklahoma 365,456

Louisiana 379,358

South Carolina 414,690

Alabama 435,831

Colorado 437,515

Minnesota 446,864

Wisconsin 494,962

Maryland 495,177

Massachusetts 524,009

Tennessee 549,713

Arizona 563,842

Indiana 565,549

Missouri 570,987

New Jersey 628,493

Washington 649,046

Georgia 752,684

Virginia 763,522

North Carolina 779,393

Michigan 865,321

Illinois 945,487

Ohio 1,086,352

Pennsylvania 1,209,970

New York 1,253,731

Texas 1,701,118

Florida 1,846,327

California 2,392,193

United States Total 25,346,364

Puerto Rico 143,730

Territory & Foreign Countries 128,180

All Veterans 25,618,274

Source: Veteran Population Projections through September 30, 2002, Office of Policy and

Planning, Department of Veterans Affairs (U.S. Total and All Veterans are rounded.)
Chapter 2 Compensation and Pension

Page 2 - 50

Disability Compensation Recipients by Residence at the Beginning of FY 2003

(In Ascending Order for U.S.) 

Residence Number Compensation Recipients

District of Columbia 4,454

Vermont 5,090

Wyoming 5,432

North Dakota 6,037

Delaware 7,111

South Dakota 8,714

Rhode Island 9,855

Alaska 10,508

Montana 11,398

Hawaii 12,540

Utah 13,508

Idaho 13,688

New Hampshire 13,962

Maine 17,806

Nebraska 17,893

Iowa 18,549

West Virginia 19,844

Connecticut 20,297

Kansas 22,223

Nevada 22,494

New Mexico 22,797

Mississippi 24,864

Arkansas 30,306

Oregon 33,554

Louisiana 35,098

Kentucky 35,967

Minnesota 37,120

Wisconsin 40,024

Indiana 40,126

South Carolina 43,090

Missouri 43,938

Maryland 44,296

Oklahoma 44,720

Colorado 45,301

New Jersey 49,384

Alabama 51,521

Tennessee 52,143

Arizona 52,877

Illinois 56,837

Massachusetts 56,900

Michigan 60,569

Washington 75,950

Georgia 81,167

Ohio 81,554

North Carolina 84,505

Virginia 85,229

Pennsylvania 89,706

New York 104,361

Texas 192,705

Florida 196,697

California 205,103

United States Total 2,359,812

Philippines 5,428

Puerto Rico 18,902

Territory & Foreign Countries 14,145

Total Compensation Recipients 2,398,287

 Source: Benefits Delivery Network–RCS 20-0237
Chapter 2 Compensation and Pension

Page 2 - 51

Projected Disability Compensation Costs by Residence Based on Monthly Value at the

Beginning of FY 2003 and Projected through the Fiscal Year

(In Ascending Order for U.S.) 

Residence Monthly Value 

Beginning FY 2003 Projected Annual Value FY 2003

District of Columbia $2,669,358 $32,032,296

Wyoming $3,208,499 $38,501,988

Vermont $3,521,449 $42,257,388

North Dakota $3,526,251 $42,315,012

Delaware $3,889,146 $46,669,752

South Dakota $5,628,118 $67,537,416

Rhode Island $6,284,391 $75,412,692

Alaska $6,704,744 $80,456,928

Montana $7,651,783 $91,821,396

Hawaii $7,810,421 $93,725,052

Utah $7,854,391 $94,252,692

New Hampshire $8,505,911 $102,070,932

Idaho $8,708,694 $104,504,328

Iowa $10,704,702 $128,456,424

Connecticut $10,909,577 $130,914,924

Nebraska $12,218,970 $146,627,640

Kansas $12,642,728 $151,712,736

Nevada $13,096,231 $157,154,772

Maine $15,177,721 $182,132,652

West Virginia $15,512,418 $186,149,016

Mississippi $17,255,973 $207,071,676

New Mexico $18,490,325 $221,883,900

Indiana $21,834,573 $262,014,876

Minnesota $22,602,349 $271,228,188

Louisiana $23,133,168 $277,598,016

Kentucky $23,648,041 $283,776,492

Wisconsin $23,880,201 $286,562,412

Oregon $23,883,340 $286,600,080

Arkansas $24,197,892 $290,374,704

Maryland $24,259,486 $291,113,832

Colorado $25,903,532 $310,842,384

New Jersey $26,405,388 $316,864,656

South Carolina $26,498,309 $317,979,708

Missouri $26,913,201 $322,958,412

Illinois $29,782,752 $357,393,024

Alabama $29,930,914 $359,170,968

Michigan $31,828,527 $381,942,324

Tennessee $32,857,568 $394,290,816

Massachusetts $33,230,177 $398,762,124

Arizona $34,042,174 $408,506,088

Oklahoma $35,375,460 $424,505,520

Ohio $42,906,816 $514,881,792

Georgia $45,624,438 $547,493,256

Virginia $46,321,133 $555,853,596

Washington $48,525,262 $582,303,144

Pennsylvania $51,635,357 $619,624,284

North Carolina $54,391,913 $652,702,956

New York $58,776,209 $705,314,508

California $120,307,236 $1,443,686,832

Florida $122,143,572 $1,465,722,864

Texas $123,616,410 $1,483,396,920

 United States Total $1,436,427,199 $17,237,126,388

Puerto Rico $17,684,680 $212,216,160

Philippines $3,893,173 $46,718,076

Other $7,764,349 $93,172,188

 Total Compensation $1,465,769,401 $17,589,232,812

 Source: Benefits Delivery Network–RCS 20-0237
Chapter 2 Compensation and Pension

Page 2 - 52

Projected Average Disability Compensation Benefits per

Veteran Beneficiary by Residence for FY 2003

(In Ascending Order for U.S.) 

 Residence Average Annual Amount Per Veteran

Illinois $6,288

Michigan $6,306

Ohio $6,313

New Jersey $6,416

Connecticut $6,450

Virginia $6,522

Indiana $6,530

Delaware $6,563

Maryland $6,572

Georgia $6,745

New York $6,758

Kansas $6,827

Colorado $6,862

Pennsylvania $6,907

Iowa $6,925

Alabama $6,971

Utah $6,978

Nevada $6,987

Massachusetts $7,008

North Dakota $7,009

California $7,039

Wyoming $7,088

Wisconsin $7,160

District of Columbia $7,192

Minnesota $7,307

New Hampshire $7,311

Missouri $7,350

South Carolina $7,379

Florida $7,452

Hawaii $7,474

Tennessee $7,562

Idaho $7,635

Rhode Island $7,652

Alaska $7,657

Washington $7,667

Texas $7,698

North Carolina $7,724

Arizona $7,726

South Dakota $7,750

Kentucky $7,890

Louisiana $7,909

Montana $8,056

Nebraska $8,195

Vermont $8,302

Mississippi $8,328

Oregon $8,541

West Virginia $9,381

Oklahoma $9,493

Arkansas $9,581

New Mexico $9,733

Maine $10,229

 United States Average $7,304

Puerto Rico $11,227

Philippines $8,607

Other $6,587

 Average of All $7,334

 Source: Benefits Delivery Network–RCS 20-0237
Chapter 2 Compensation and Pension

Page 2 - 53

Disability Compensation Recipients by Residence Based on Age at the Beginning of FY 2003

(In Alphabetical Order for U.S.) 

Residence Under 20 20-29 30-39 40-49 50-59 60-69 70-79 80-84 85+ Total

Alabama 5 1,307 4,466 9,568 15,902 7,822 7,865 3,436 1,150 51,521

Alaska 1 354 1,377 2,966 3,656 1,193 697 211 53 10,508

Arizona 4 1,815 4,872 8,436 14,263 7,806 9,584 4,480 1,617 52,877

Arkansas 5 832 2,845 4,827 8,864 4,486 5,002 2,550 895 30,306

California 8 8,219 18,531 31,893 57,499 27,265 36,178 18,212 7,298 205,103

Colorado 2 1,756 5,348 8,985 13,138 6,265 6,061 2,729 1,017 45,301

Connecticut 0 541 1,560 2,363 5,315 2,152 4,373 2,811 1,182 20,297

Delaware 0 194 646 1,406 2,052 923 1,209 491 190 7,111

District of Columbia 0 102 374 761 1,288 565 774 359 231 4,454

Florida 9 5,165 15,020 32,113 49,077 28,692 38,779 19,875 7,967 196,697

Georgia 5 2,765 9,884 19,102 23,659 10,680 9,617 4,118 1,337 81,167

Hawaii 1 351 1,019 2,220 3,791 1,723 2,221 876 338 12,540

Idaho 2 542 1,500 2,185 3,957 1,921 2,172 1,062 347 13,688

Illinois 6 2,550 6,270 8,205 16,256 5,596 10,144 5,649 2,161 56,837

Indiana 3 1,249 4,555 6,518 12,031 4,214 6,891 3,538 1,127 40,126

Iowa 2 522 1,904 2,582 5,369 1,843 3,473 2,022 832 18,549

Kansas 1 655 2,150 3,878 6,573 2,724 3,635 1,891 716 22,223

Kentucky 1 1,251 3,830 6,125 10,005 4,569 6,132 3,113 941 35,967

Louisiana 1 1,400 3,929 5,011 10,195 4,925 5,988 2,763 886 35,098

Maine 1 568 1,673 2,960 5,612 2,359 2,867 1,297 469 17,806

Maryland 2 1,461 4,996 9,018 12,561 5,603 6,393 3,081 1,181 44,296

Massachusetts 0 1,027 3,168 5,587 13,577 7,083 15,006 7,924 3,528 56,900

Michigan 7 1,661 5,919 7,863 18,395 6,243 11,780 6,617 2,084 60,569

Minnesota 6 1,060 3,660 4,873 10,871 3,898 7,005 4,013 1,734 37,120

Mississippi 2 628 2,152 4,060 6,909 3,793 4,550 2,104 666 24,864

Missouri 1 1,253 4,103 7,227 13,147 5,261 7,693 3,834 1,419 43,938

Montana 2 461 1,138 1,888 3,608 1,543 1,661 779 318 11,398

Nebraska 1 723 1,823 2,976 4,807 2,343 3,203 1,468 549 17,893

Nevada 2 699 2,061 3,897 6,504 3,532 3,813 1,515 471 22,494

New Hampshire 0 372 1,249 2,179 4,110 2,071 2,569 1,019 393 13,962

New Jersey 3 923 2,892 5,234 12,949 5,608 12,061 6,858 2,856 49,384

New Mexico 0 589 1,659 3,591 7,241 3,478 3,764 1,782 693 22,797

New York 5 2,694 6,984 11,504 29,955 11,207 22,889 13,004 6,119 104,361

North Carolina 5 3,120 9,887 17,701 24,413 11,569 11,649 4,720 1,441 84,505

North Dakota 1 173 621 964 1,911 683 882 553 249 6,037

Ohio 3 2,383 8,310 12,205 23,452 8,464 15,482 8,328 2,927 81,554

Oklahoma 2 1,408 3,948 7,051 14,108 6,615 7,229 3,317 1,042 44,720

Oregon 3 1,375 3,733 5,093 10,617 3,876 5,167 2,739 951 33,554

Pennsylvania 3 2,145 6,522 10,792 24,626 9,995 20,110 11,370 4,143 89,706

Rhode Island 0 233 661 1,130 2,644 1,101 2,213 1,301 572 9,855

South Carolina 1 1,447 4,407 8,623 12,763 6,541 6,139 2,411 758 43,090

South Dakota 0 279 899 1,516 2,764 1,112 1,276 615 253 8,714

Tennessee 2 1,795 6,073 9,646 15,346 6,974 7,698 3,511 1,098 52,143

Texas 12 7,647 19,896 33,658 55,705 28,684 29,156 13,165 4,782 192,705

Utah 1 488 1,260 2,228 3,891 1,654 2,391 1,216 379 13,508

Vermont 0 118 401 779 1,637 641 906 440 168 5,090

Virginia 3 2,569 8,445 18,600 25,625 12,540 11,214 4,601 1,632 85,229

Washington 5 2,845 8,948 15,366 23,200 10,114 9,602 4,315 1,555 75,950

West Virginia 2 571 1,923 2,292 6,594 2,754 3,563 1,617 528 19,844

Wisconsin 5 1,523 4,444 6,033 11,724 4,373 7,027 3,630 1,265 40,024

Wyoming 0 181 552 960 1,805 683 805 330 116 5,432

U.S. Total 136 75,989 224,487 386,638 675,961 307,759 408,558 203,660 76,624 2,359,812

Philippines 1 10 50 229 557 333 1,123 1,925 1,200 5,428

Puerto Rico 3 325 1,232 3,389 6,032 2,663 3,835 1,078 345 18,902

All Other 0 443 1,871 3,545 4,254 1,923 1,434 458 217 14,145

Total Recipients 140 76,767 227,640 393,801 686,804 312,678 414,950 207,121 78,386 2,398,287

Source: Benefits Delivery Network–RCS 20-0238
Chapter 2 Compensation and Pension

Page 2 - 54

Disability Pension Recipients by Residence at the Beginning of FY 2003

(In Ascending Order for U.S.)

Residence Number of Pension

Recipients

Alaska 298 

Wyoming 549 

Delaware 606 

Vermont 631 

Hawaii 752 

North Dakota 1,031 

New Hampshire 1,085 

Rhode Island 1,091 

Utah 1,161 

District of Columbia 1,220 

Idaho 1,455 

Montana 1,750 

South Dakota 1,850 

Connecticut 2,020 

Nebraska 2,456 

Nevada 2,777 

Maine 3,069 

New Mexico 3,204 

Kansas 3,224 

Colorado 3,294 

Iowa 3,554 

New Jersey 3,651 

Maryland 4,050 

Massachusetts 4,715 

West Virginia 5,027 

Indiana 5,049 

Arizona 5,099 

Minnesota 5,119 

Washington 5,129 

Oregon 5,595 

Wisconsin 5,599 

Arkansas 6,614 

Mississippi 7,088 

Virginia 7,200 

South Carolina 7,481 

Kentucky 7,640 

Missouri 8,349 

Michigan 8,740 

Oklahoma 8,936 

Alabama 10,100 

Tennessee 10,326 

Louisiana 10,764 

Illinois 10,943 

Georgia 11,150 

North Carolina 11,399 

Ohio 13,719 

Pennsylvania 14,879 

New York 16,566 

Florida 21,353 

California 24,126 

Texas 26,489 

United States Total 329,972

Philippines 952 

Puerto Rico 14,710 

Territory & Foreign Countries 945 

Total Pension Recipients 346,579 
Chapter 2 Compensation and Pension

Page 2 - 55

 Source: Benefits Delivery Network–RCS 20-0237

Projected Disability Pension Costs by Residence Based on Monthly Value at the

Beginning of FY 2003 and Projected through the Fiscal Year

(In Ascending Order for U.S.) 

 Residence Monthly Value Beginning FY 2003 Projected Annual Value FY 2002

Alaska $172,914 $2,074,968

Wyoming $270,290 $3,243,480

Delaware $286,354 $3,436,248

Vermont $314,836 $3,778,032

Hawaii $433,247 $5,198,964

North Dakota $547,372 $6,568,464

New Hampshire $593,167 $7,118,004

Rhode Island $597,545 $7,170,540

Utah $604,282 $7,251,384

District of Columbia $664,094 $7,969,128

Connecticut $766,186 $9,194,232

Idaho $824,780 $9,897,360

Montana $947,382 $11,368,584

South Dakota $1,038,515 $12,462,180

Nevada $1,466,764 $17,601,168

Nebraska $1,573,745 $18,884,940

Maine $1,658,022 $19,896,264

New Mexico $1,761,776 $21,141,312

Kansas $1,805,400 $21,664,800

Colorado $1,851,968 $22,223,616

New Jersey $1,907,041 $22,884,492

Iowa $2,084,969 $25,019,628

Maryland $2,161,434 $25,937,208

Massachusetts $2,280,216 $27,362,592

Minnesota $2,630,486 $31,565,832

Indiana $2,635,128 $31,621,536

Arizona $2,697,747 $32,372,964

Washington $2,874,975 $34,499,700

West Virginia $2,920,696 $35,048,352

Wisconsin $3,202,972 $38,435,664

Arkansas $3,332,629 $39,991,548

Virginia $3,486,210 $41,834,520

Oregon $3,519,364 $42,232,368

Mississippi $3,613,162 $43,357,944

South Carolina $4,036,539 $48,438,468

Kentucky $4,062,818 $48,753,816

Missouri $4,678,323 $56,139,876

Michigan $5,282,074 $63,384,888

North Carolina $5,330,358 $63,964,296

Tennessee $5,333,823 $64,005,876

Louisiana $5,936,089 $71,233,068

Georgia $5,940,945 $71,291,340

Illinois $6,025,680 $72,308,160

Alabama $6,228,023 $74,736,276

Oklahoma $6,271,684 $75,260,208

Ohio $7,833,576 $94,002,912

New York $8,270,558 $99,246,696

Pennsylvania $8,513,912 $102,166,944

Florida $12,013,689 $144,164,268

California $12,768,104 $153,217,248

Texas $14,623,114 $175,477,368

 United States Total $180,674,977 $2,168,099,724

Puerto Rico $7,314,345 $87,772,140

Philippines $976,696 $11,720,352

Territory & Foreign $613,803 $7,365,636

 Total Pension $189,579,821 $2,274,957,852

 Source: Benefits Delivery Network–RCS 20-0237
Chapter 2 Compensation and Pension

Page 2 - 56

Projected Average Disability Pension Benefits per Veteran Beneficiary by Residence for FY 2003

(In Ascending Order for U.S.)

 Residence Average Annual Amount 

Per Veteran

Connecticut $4,552

North Carolina $5,611

Delaware $5,670

Massachusetts $5,803

Virginia $5,810

Wyoming $5,908

Vermont $5,987

New York $5,991

Arkansas $6,046

Mississippi $6,117

Minnesota $6,166

Tennessee $6,199

Utah $6,246

Indiana $6,263

New Jersey $6,268

Nevada $6,338

Arizona $6,349

California $6,351

North Dakota $6,371

Kentucky $6,381

Georgia $6,394

Maryland $6,404

South Carolina $6,475

Maine $6,483

Montana $6,496

District of Columbia $6,532

New Hampshire $6,560

Rhode Island $6,572

New Mexico $6,598

Illinois $6,608

Louisiana $6,618

Texas $6,625

Kansas $6,720

Missouri $6,724

Washington $6,726

South Dakota $6,736

Colorado $6,747

Florida $6,751

Idaho $6,802

Ohio $6,852

Wisconsin $6,865

Pennsylvania $6,867

Hawaii $6,914

Alaska $6,963

West Virginia $6,972

Iowa $7,040

Michigan $7,252

Alabama $7,400

Oregon $7,548

Nebraska $7,689

Oklahoma $8,422

 United States Average $6,571

Puerto Rico $5,967

Philippines $12,311

Other $7,794

 Average of All $6,564

 Source: Benefits Delivery Network–RCS 20-0237
Chapter 2 Compensation and Pension

Page 2 - 57

Pension Recipients by Residence Based on Age at the Beginning of FY 2003

(In Alphabetical Order for U.S.) 

Residence Under 20 20-29 30-39 40-49 50-59 60-69 70-79 80-84 85+ Total

Alabama 0 7 39 476 1,616 984 3,756 2,272 950 10,100

Alaska 0 0 1 44 157 43 37 12 4 298

Arizona 0 1 27 406 1,532 676 1,535 619 303 5,099

Arkansas 0 3 34 414 1,557 683 2,066 1,227 630 6,614

California 1 21 118 1,921 7,228 2,962 7,049 3,218 1,608 24,126

Colorado 0 0 18 276 917 371 965 510 237 3,294

Connecticut 1 0 5 107 474 202 627 369 235 2,020

Delaware 0 0 3 39 174 64 202 88 36 606

District of Columbia 0 0 4 94 335 162 439 139 47 1,220

Florida 5 18 88 1407 5926 2669 6667 3071 1502 21,353

Georgia 1 3 60 664 2,704 1,280 3,641 1,968 829 11,150

Hawaii 0 0 3 79 283 105 176 73 33 752

Idaho 1 0 3 87 346 181 466 271 100 1,455

Illinois 0 7 49 694 3,216 1,335 3,576 1,435 631 10,943

Indiana 1 1 19 333 1,417 639 1,706 641 292 5,049

Iowa 1 1 11 190 814 378 1,219 605 335 3,554

Kansas 0 1 21 231 841 351 1,039 494 246 3,224

Kentucky 0 4 21 372 1,702 914 2,807 1,267 553 7,640

Louisiana 1 7 64 677 2,552 1,066 3,617 1,929 851 10,764

Maine 0 3 12 223 954 345 926 424 182 3,069

Maryland 0 1 24 303 1,104 480 1,411 493 234 4,050

Massachusetts 0 3 29 327 1,251 601 1,578 602 324 4,715

Michigan 0 2 58 691 2,988 1,043 2,459 1,056 443 8,740

Minnesota 1 0 19 247 1,020 489 1,708 1,020 615 5,119

Mississippi 0 6 20 289 1,202 602 2,622 1,676 671 7,088

Missouri 0 1 21 553 2,129 881 2,788 1,333 643 8,349

Montana 0 1 11 125 491 198 533 248 143 1,750

Nebraska 0 2 14 159 558 262 837 411 213 2,456

Nevada 0 1 14 212 895 408 836 287 124 2,777

New Hampshire 0 0 3 58 271 141 343 162 107 1,085

New Jersey 1 0 16 204 828 425 1,348 564 265 3,651

New Mexico 0 0 14 220 941 325 980 499 225 3,204

New York 1 3 81 1,154 4,428 1,933 5,565 2,169 1,232 16,566

North Carolina 0 5 44 607 2,289 1,046 4,111 2,408 889 11,399

North Dakota 0 0 2 37 225 102 378 187 100 1,031

Ohio 0 6 75 1,181 4,711 1,751 3,937 1,462 596 13,719

Oklahoma 0 7 42 540 2,508 1,120 2,798 1,328 593 8,936

Oregon 0 5 34 463 1,772 694 1,533 733 361 5,595

Pennsylvania 1 3 75 923 4,095 1,775 4,867 2,087 1,053 14,879

Rhode Island 0 0 1 66 321 138 343 142 80 1,091

South Carolina 0 1 25 358 1,710 802 2,645 1,433 507 7,481

South Dakota 1 1 7 90 375 213 701 298 164 1,850

Tennessee 0 4 30 546 2,297 1,156 3,574 1,867 852 10,326

Texas 1 20 125 1,748 6,978 2,852 8,533 4,226 2,006 26,489

Utah 0 1 6 93 306 145 364 156 90 1,161

Vermont 1 1 1 35 159 66 242 81 45 631

Virginia 0 3 30 452 1,628 798 2,592 1,209 488 7,200

Washington 1 4 34 435 1,556 660 1,458 655 326 5,129

West Virginia 0 3 32 354 1,522 628 1,598 593 297 5,027

Wisconsin 0 3 22 394 1,427 631 1,740 869 513 5,599

Wyoming 0 1 3 46 153 95 161 65 25 549

US Total 20 165 1,512 21,644 86,883 37,870 107,099 50,951 23,828 329,972

Philippines 0 0 1 7 125 142 151 288 238 952

Puerto Rico 2 0 6 232 1,226 2,013 7,229 2,860 1,142 14,710

All Others 0 0 2 23 145 102 375 191 107 945

Total Recipients 22 165 1,521 21,906 88,379 40,127 114,854 54,290 25,315 346,579

Source: Benefits Delivery Network–RCS 20-0238
Chapter 2 Compensation and Pension

Page 2 - 58

Compensation Recipients with Power of Attorney

By Residence1

(In Alphabetical Order)

Residence Number of Recipients

Alabama 32,605

Alaska 7,354

Arizona 30,531

Arkansas 19,753

California 127,955

Colorado 26,707

Connecticut 9,153

Delaware 3,824

District of Columbia 2,194

Florida 124,662

Georgia 44,381

Hawaii 5,233

Idaho 9,657

Illinois 30,143

Indiana 21,858

Iowa 11,551

Kansas 14,849

Kentucky 21,250

Louisiana 24,383

Maine 11,801

Maryland 18,837

Massachusetts 28,119

Michigan 36,648

Minnesota 26,147

Mississippi 14,703

Missouri 27,040

Montana 8,322

Nebraska 12,541

Nevada 11,789

New Hampshire 7,647

New Jersey 23,176

New Mexico 14,484

New York 54,152

North Carolina 57,470

North Dakota 4,678

Ohio 44,845

Oklahoma 28,514

Oregon 24,130

Pennsylvania 43,787

Rhode Island 4,974

South Carolina 26,619

South Dakota 6,379

Tennessee 32,658

Texas 122,553

Utah 7,110

Vermont 3,115

Virginia 49,454

Washington 54,714

West Virginia 13,774

Wisconsin 28,388

Wyoming 3,135

United States Total 1,419,746

1

Information as of EOM December 2002.

Source: Compensation & Pension Master Record
Chapter 2 Compensation and Pension

Page 2 - 59

Disability Pension Recipients with Power of Attorney

By Residence1

(In Alphabetical Order)

Residence Number of Recipients

Alabama 9,123

Alaska 190

Arizona 3,647

Arkansas 5,530

California 19,308

Colorado 2,817

Connecticut 1,388

Delaware 395

District of Columbia 497

Florida 18,536

Georgia 9,505

Hawaii 311

Idaho 1,218

Illinois 6,793

Indiana 3,195

Iowa 2,713

Kansas 2,921

Kentucky 5,715

Louisiana 9,348

Maine 2,401

Maryland 2,083

Massachusetts 2,882

Michigan 6,927

Minnesota 4,746

Mississippi 5,467

Missouri 6,816

Montana 1,485

Nebraska 2,228

Nevada 1,655

New Hampshire 665

New Jersey 2,304

New Mexico 2,583

New York 9,728

North Carolina 10,734

North Dakota 946

Ohio 10,468

Oklahoma 7,240

Oregon 4,642

Pennsylvania 7,597

Rhode Island 517

South Carolina 6,470

South Dakota 1,595

Tennessee 8,826

Texas 22,128

Utah 600

Vermont 378

Virginia 6,001

Washington 4,214

West Virginia 4,140

Wisconsin 4,807

Wyoming 350

United States Total 256,773

1

Information as of EOM December 2002.

Source: Compensation & Pension Master Record
Chapter 2 Compensation and Pension

Page 2 - 60
Chapter 3 Education

Page 3 - 1

Chapter 3

EDUCATION

EDUCATION PROGRAMS – OVERVIEW 

VBA Education programs provide veterans, reservists, and certain family members of veterans with

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

programs are also meant to help the armed forces both recruit and retain members. For members of

the armed forces, VA educational benefits assist in the readjustment to civilian life. On a broader scale,

educational benefits are meant to enhance the Nation’s competitiveness through the development of a

higher educated and more productive workforce.

There are four active education programs:

MONTGOMERY GI BILL – ACTIVE DUTY (MGIB)

MGIB is a contributory program. The service member’s pay is automatically reduced by $100 per

month for the first 12 months of active duty unless the service member declines to participate at the

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

• Served on active duty after June 30, 1985;

• Must fulfill one's basic service obligation;

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

before applying for benefits;

• Must receive an honorable discharge; 

• Maximum entitlement is 36 months;

• Additional "kicker"1

 may be available, as determined by Department of Defense (DoD); and 

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

 

1 A “kicker” is an additional monetary contribution paid by the military under certain circumstances.
Chapter 3 Education

Page 3 - 2

MONTGOMERY GI-BILL – SELECTED RESERVE (MGIB SR)

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

(including National Guard members). DoD funds this program and is responsible for determining

eligibility to MGIB-SR. VBA administers the program. 

Requirements and features of MGIB-SR are as follows:

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

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

before applying for benefits;

• Must remain a member in good standing of the Selected Reserve;

• Maximum entitlement is 36 months; and, 

• Generally, must use benefits within 14 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 as follows:

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

disability, or MIA/POW/hostage status;

• Maximum entitlement is 45 months;

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

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

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

• A spouse's remarriage bars further benefits1

 while a child's marriage does not.

 

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

divorce.
Chapter 3 Education

Page 3 - 3

POST-VIETNAM ERA VETERANS EDUCATION ASSISTANCE PROGRAM (VEAP)

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

and features of VEAP are as follows:

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

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

• Maximum contribution of $2700 by the service member; 

• Government matches contribution $2 for $1; 

• Maximum entitlement is 36 months;

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

• Unused contributions may be refunded;

• Additional "kickers” or contributions from the Department of Defense (DoD) under certain

circumstances; and, 

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

NEW EDUCATION BENEFICIARIES DURING FISCAL YEAR 2002

The following table shows the number of veterans, service members, reservists, and dependents that

began receiving their education benefits for the first time during Fiscal Year 2002. 

Beneficiaries Who Began Receiving Education Benefits

During Fiscal Year 2002

Program Number of

Beneficiaries

Percent

of Total

Montgomery GI Bill - Active Duty 1

72,566 81.8%

Montgomery GI Bill - Reserves 2 1,023 1.1%

Dependents Education 14,964 16.9%

Post-Vietnam Veterans Education 174 0.2%

TOTAL 88,727 100.0%

 Source: Education Service SAS Reports

 1 Based on Active Duty Service 2 Based on service in the Selected Reserve
Chapter 3 Education

Page 3 - 4

The following chart shows the number of beneficiaries who first began receiving benefits during the

period beginning with Fiscal Year 1998 through Fiscal Year 2002 for each education program.

















































































































 







  





 0

10000

20000

30000

40000

50000

60000

70000

80000

1998 1999 2000 2001 2002

 Montgomery GI Bill - Active Duty  Montgomery GI Bill - Reserves

 Dependents Education Post-Vietnam Veterans Education 

Source: Education Service SAS Reports

CHARACTERISTICS OF THE TRAINING BEING PURSUED BY BENEFICIARIES

1. By Type of Training

The following chart shows the distribution, by program, of the types of training of the beneficiaries who

began using their education benefit for the first time during Fiscal Year 2002.

Beneficiaries Who Began Receiving Education Benefits

 by Type of Training and Program During Fiscal Year 2002

Education Program College,

Non-Degree Graduate UnderGraduate

Vocational/

Technical

Program

Totals

Percent

of All

Programs

Montgomery GI Bill - Active Duty 1 2,920 3,154 60,097 6,395 72,566 81.8%

Montgomery GI Bill – Reserves 2 63 76 737 147 1,023 1.1%

Dependents Education 464 393 13,041 1,066 14,964 16.9%

Post-Vietnam Veterans Education 18 30 35 91 174 0.2%

Type Training Totals 3,465 3,653 73,910 7,699 88,727 100.0%

Percent of Program Totals 3.9% 4.1% 83.3% 8.7% 100% N/A

 Source: Education Service SAS Reports

1

 Based on Active Duty Service

2

 Based on service in the Selected Reserve
Chapter 3 Education

Page 3 - 5

2. 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 2002.

Beneficiaries Who Began Receiving Education Benefits

 by Training Time and Program During Fiscal Year 2002

Education Program

Less Than

One-Half

Time

Half

Time

Three

Quarter

Time

Full

Time

Program

Totals

Percent

of All

Programs

Montgomery GI Bill – Active Duty 1

4,528 10,971 8,737 48,330 72,566 81.8%

Montgomery GI Bill – Reserves 2

56 118 109 740 1,023 1.1%

Dependents Education 693 1,627 1,785 10,859 14,964 16.9%

Post-Vietnam Veterans Education 28 115 8 23 174 0.2%

Training Time Totals 5,305 12,831 10,639 59,952 88,727 100%

Percent of Program Totals 6% 14% 12% 68% N/A N/A

Source: Education Service SAS Reports

1

 Based on Active Duty Service

2

 Based on service in the Selected Reserve

TOTAL EDUCATION BENEFICIARIES DURING FISCAL YEAR 2002

The total number of veterans, service members, reservists, and dependants receiving education

benefits during Fiscal Year 2002 and the total payments in each benefit program are shown in the

following table.

Beneficiaries Who Received Education Benefits and Total Payments

During Fiscal Year 2002

Program Number of

Beneficiaries

Percent

of Total

Total Payments

($000)

Montgomery GI Bill - Active Duty 1

323,165 69.6% $1,290,979

Montgomery GI Bill - Reserves 2 85,766 18.5% $158,828

Dependents Education 53,888 11.6% $298,966

Post-Vietnam Veterans Education 3 1,340 0.3% $2,400

TOTAL 464,159 100.0% $1,751,173

 Source: Education Service SAS Reports and Veterans Benefits Administration Hines Finance Center

 1 Based on Active Duty Service

 2 Based on service in the Selected Reserve

 3 Total VEAP Expenditures for FY2002 were $8,659,000, which included 10,700 disenrollments totaling $6,432,000.
Chapter 3 Education

Page 3 - 6

The following chart shows the total number of beneficiaries who received benefits during the period

beginning with Fiscal Year 1998 through Fiscal Year 2002 for each education program.

































































































































































































0

50000

100000

150000

200000

250000

300000

350000

1998 1999 2000 2001 2002

 Montgomery GI Bill - Active Duty  Montgomery GI Bill - Reserves

 Dependents Education Post-Vietnam Veterans Education 

 Source: Education Service SAS and Benefits Delivery System Reports

BENEFICIARIES LEAVING EDUCATION PROGRAMS DURING FISCAL YEAR 2002

Educational assistance ends for one of two reasons: entitlement is exhausted or the delimiting date

(i.e., the deadline for using the benefit) is reached.

Entitlement Exhausted: Veterans, service members and reservists are generally entitled to 36

months of educational assistance (entitlement). Dependents are entitled to 45 months of educational

assistance. Once 36 or 45 months of educational assistance are used, payment of the benefit ends.

Delimiting Date: Dependents have a defined amount of time to use educational assistance. Veterans

and service members, generally, have 10 years from the date of their last discharge from active military

service. Reservists have either 14 years (for those that were eligible on or after October 1, 1992) from

the date their eligibility began or until the day following separation from the Selected Reserve,

whichever is earlier. In the Dependents Education Assistance program, children usually have until age

26; and spouses, or surviving spouses, generally, have 10 years from their date of eligibility.
Chapter 3 Education

Page 3 - 7

Beneficiaries whose Benefits Terminated

During Fiscal Year 2002

Program Entitlement

Exhausted

Delimiting

Date

Total

Terminations

Percent of

Total

Terminations

Montgomery GI Bill – Active Duty 1 13,633 5,615 19,248 89.4%

Montgomery GI Bill – Reserves 2 1,426 366 1,792 8.3%

Dependents Education 182 66 248 1.2%

Post-Vietnam Veterans Education 145 109 254 1.2%

TOTAL 15,386 6,156 21,542 100%

Percent of total terminations 71.4% 28.6% 100% N/A

Source: Education Service SAS Reports

1

 Based on Active Duty Service

2

 Based on service in the Selected Reserve

The following chart shows the number of beneficiaries whose benefits terminated during the period

beginning with Fiscal Year 1998 through Fiscal Year 2002 for each education program.









































































































    

0

5000

10000

15000

20000

25000

1998 1999 2000 2001 2002



 Montgomery GI Bill - Active Duty 



 Montgomery GI Bill - Reserves

 Dependents Education Post-Vietnam Veterans Education 

Source: Education Service SAS Reports
Chapter 3 Education

Page 3 - 8

Geographic Distribution of Benefits Number Trained During Fiscal Year 2002

LOCATION/BENEFIT MGIB-AD MGIB-SR DEA VEAP TOTAL

ALABAMA 4,525 2,004 1,512 23 8,064 

ALASKA 965 161 117 4 1,247 

ARIZONA 11,744 1,260 1,370 30 14,404 

ARKANSAS 2,144 1,446 1,032 8 4,630 

CALIFORNIA 31,030 4,652 4,700 136 40,518 

COLORADO 7,107 720 966 29 8,822 

CONNECTICUTT 1,476 1,026 244 11 2,757 

DELAWARE 610 321 136 3 1,070 

DIST. OF COLUMBIA 716 115 136 7 974 

FLORIDA 21,390 3,358 3,568 78 28,394 

GEORGIA 11,987 1,996 1,906 36 15,925 

HAWAII 1,788 869 290 10 2,957 

IDAHO 1,453 618 290 6 2,367 

ILLINOIS 10,718 3,944 1,040 52 15,754 

INDIANA 4,102 1,959 826 23 6,910 

IOWA 2,112 1,682 362 12 4,168 

KANSAS 2,927 1,075 537 12 4,551 

KENTUCKY 3,377 1,391 952 16 5,736 

LOUISIANA 4,055 3,043 1,054 12 8,164 

MAINE 933 329 579 6 1,847 

MARYLAND 7,365 1,279 766 35 9,445 

MASSACHUSETTS 2,738 1,550 885 29 5,202 

MICHIGAN 6,949 1,631 1,094 46 9,720 

MINNESOTA 3,111 2,321 864 29 6,325 

MISSISSIPPI 2,088 1,864 653 8 4,613 

MISSOURI 5,327 2,030 1,002 35 8,394 

MONTANA 946 418 217 5 1,586 

NEBRASKA 2,277 985 537 10 3,809 

NEVADA 2,441 314 327 6 3,088 

NEW HAMPSHIRE 792 219 267 6 1,284 

NEW JERSEY 2,786 1,342 628 21 4,777 

NEW MEXICO 2,761 518 851 12 4,142 

NEW YORK 7,474 3,385 1,872 61 12,792 

NORTH CAROLINA 9,960 1,807 2,161 32 13,960 

NORTH DAKOTA 722 915 183 5 1,825 

OHIO 8,910 3,787 1,317 50 14,064 

OKLAHOMA 4,898 2,153 1,641 16 8,708 

OREGON 3,349 964 781 19 5,113 

PENNSYLVANIA 6,738 3,652 1,544 50 11,984 

RHODE ISLAND 596 319 234 6 1,155 

SOUTH CAROLINA 4,508 1,530 1,193 18 7,249 

SOUTH DAKOTA 720 882 198 4 1,804 

TENNESSEE 5,248 1,363 1,138 21 7,770 

TEXAS 26,121 4,133 4,389 78 34,721 

UTAH 1,814 1,411 487 8 3,720 

VERMONT 253 156 98 2 509 

VIRGINIA 13,540 2,096 1,748 45 17,429 

WASHINGTON 8,192 1,393 1,682 35 11,302 

WEST VIRGINIA 1,238 1,067 529 5 2,839 

WISCONSIN 3,217 2,456 792 23 6,488 

WYOMING 627 243 105 3 978 

PUERTO RICO 702 1,608 1,758 10 4,078 

PHILIPPINES 381 1 163 0 545 

FOREIGN 1,345 149 167 4 1,665 

OTHER/UNKNOWN* 47,872 3,856 0 88 51,816 

NATIONAL TOTALS 323,165 85,766 53,888 1,340 464,159 

 Source: Education Service SAS and Benefits Delivery System Reports
Chapter 4 Insurance

Page 4 - 1

Chapter 4

INSURANCE

LIFE INSURANCE PROGRAM – OVERVIEW 

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

rate to members of the armed forces who are exposed to the extra hazards of military service, including

deadly hazards of war. Few commercial insurance companies offer insurance that includes coverage

against death while in the armed forces. Those that do offer coverage charge a high premium rate

because of the additional risk. Members leaving the armed forces are eligible to maintain their VA

insurance following discharge.

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

War I. The various Insurance programs can be conveniently grouped into the following three

categories: Matured Insurance Programs, Disabled Veterans Insurance Programs, and Uniformed

Services and Post-Vietnam Veterans Insurance Programs.

MATURED INSURANCE PROGRAMS

These programs were established to provide the same or better life insurance benefits than were

available to private citizens. These government life insurance programs are closed to the issuance of

new coverage but continue to have active policies. 

The “Years” column of the table indicates the time period when VBA was authorized to issue coverage

under the program.

Matured Insurance Programs

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.
Chapter 4 Insurance

Page 4 - 2

DISABLED VETERANS INSURANCE PROGRAMS

These programs were established to provide veterans who have lost their ability to purchase

commercial insurance at standard (healthy) rates because of their service-connected disabilities.

These government life insurance programs continue to issue coverage. 

The “Year” column indicates that date policies were first issued under each program.

 Disabled Veterans Insurance Programs

Program Year Maximum

Coverage

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

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

1

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

UNIFORMED SERVICES AND POST-VIETNAM VETERANS INSURANCE PROGRAMS

These programs were established to provide active duty and reserve members of the uniformed

services insurance coverage that is commonly provided by large-scale civilian employers.

A new government life insurance program began on November 1, 2001. It is Family Servicemembers’

Group Life Insurance (FSGLI). FSGLI provides service members who have Servicemembers’ Group

Life Insurance (SGLI) coverage the opportunity to have life insurance coverage on their spouses and

dependant children.

The “Year” column indicates that date policies were first issued under each program.

Uniformed Services and Post-Vietnam Veterans Insurance Programs

Program Year Maximum

Coverage

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

Family – Servicemembers’ Group Life Insurance (FSGLI) - Spouse Coverage 2001 $100,000

Family – Servicemembers’ Group Life Insurance (FSGLI) - Child Coverage 2001 $10,000

Veterans' Group Life Insurance (VGLI) 1974 $250,000
Chapter 4 Insurance

Page 4 - 3

RANKING AMONG COMMERCIAL LIFE INSURANCE COMPANIES

The following table compares VA life insurance programs with commercial life insurance companies.

The comparison is based on the total face value of active life insurance in effect. Rankings based upon

2002 data are shown below.

Face Value - Throughout this chapter, the term “face value” means that amount of money that would

be paid upon the death of the policyholder. 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.

2002 Rankings by Total Life Insurance In-Force

Rank Company Total Insurance

1 Metropolitan Life & Affiliated $2,739,511,000,000

2 Prudential of America Group $1,387,375,000,000

3 Swiss Reinsurance Group $1,225,213,000,000

4 ING Group $1,073,384,000,000

5 Aegon USA Inc $916,913,000,000

6 American International Group $778,747,000,000

7 VA Life Insurance Programs $760,609,000,000

8 Hartford Life Inc $711,913,000,000

9 Lincoln National Corp $705,607,000,000

10 GE Financial Assurance Group $694,324,000,000

 Source: Best’s Review, September 2002
Chapter 4 Insurance

Page 4 - 4

LIFE INSURANCE – GOVERNMENT LIFE INSURANCE PROGRAMS

 IN WHICH NEW COVERAGE IS ISSUED

1. Coverage Established During Fiscal Year 2002

The table that follows identifies the number of new policies issued during Fiscal Year 2002, the total

face value of the policies, and the average face value of the policies. In the case of SGLI and FSGLI,

the military services maintain the records on insured service members. The actual number of service

members who enrolled in SGLI in Fiscal Year 2002 is not known. The information shown for SGLI is an

estimate based upon current enrollment rates and the number of people who entered active military

service during Fiscal Year 2002. The exact number of children covered by FSGLI is also an estimate.

New Insurance Coverage Issued During Fiscal Year 2002

Insurance Number of

People Insured

Total

Coverage Amount

Average

Face Value

Maximum

Face Value

VMLI1 190 $15,960,000 $84,000 $90,000 

SDVI2 7,279 $80,593,000 $11,072 $10,000 3

VGLI4 22,045 $3,787,550,000 $171,810 $250,000 

SGLI5 341,946 $81,790,080,507 $239,190 $250,000

FSGLI6 – Child 2,100,000 $21,000,000,000 $10,000 $10,000

FSGLI7 – Spouse 1,013,000 $99,578,000,000 $98,300 $100,000

TOTAL 3,484,460 $206,252,183,507 $59,192 N/A

1

Source: VMLI Database – VMLI Quarterly Report

2

Source: Insurance Master Record Database – 510 Monthly Reports

3

Source: Additional Coverage, up to $20,000, is available for totally disabled policyholders. New supplemental SDVI policies (1,304) were

issued

4

Source: Veterans and Reservists Group Insurance System, OSGLI Monthly Report. VGLI data is for the policy year ending June 30, 2002 5

Estimate based upon accessions to Active Duty and Reserve forces in FY02. Data on accessions from Defense Manpower Data Center 6

Estimate based upon policies in force, end of FY02, first year FSGLI was available

7Source: DEERS and Military Pay Records
Chapter 4 Insurance

Page 4 - 5

The table that follows displays information about new insurance coverage and provides the data for the

prior four years for purposes of comparison. The significant increase in Fiscal Year 2002 is due to the

beginning of the FSGLI program.

New Insurance Coverage Issued - Comparative Information for Five Fiscal Years

FY 2002 FY 2001 FY 2000 FY 1999 FY 1998

Number of People

Insured 3,484,460 394,572 285,765 268,353 331,312

Total Coverage

Amounts $206,252,183,507 $91,604,081,998 $50,426,291,177 $47,155,855,903 $59,531,024,898

Average Face Value $59,192 $232,160 $176,461 $175,723 $179,683

2. Policies that Lapsed in 2002

Policies lapse primarily because the policyholder did not pay the premiums. The following table

provides data about policies that lapsed during Fiscal Year 2002.

Policy Lapses During Fiscal Year 2002

Policy Lapses Number1 Face Value1 Average Face Value

NSLI 11,445 $81,312,035 $7,105

VSLI 750 $5,852,000 $7,803

VRI 241 $1,293,500 $5,367

SDVI 1,428 $13,829,500 $9,685

TOTAL 13,864 $102,287,035 $7,378

1

 Sources: Insurance Master Record Database - 510 Monthly Report

LIFE INSURANCE – PAYMENTS

1. Lump Sum Payments Made To Policyholders During Fiscal Year 2002

Loans and cash surrenders are paid to the veteran upon application. Dividend and matured

endowment payments are made on some government life insurance policies. These are payments

made from active policies to the veteran policyholder. The following tables show data concerning the

payments made during Fiscal Year 2002.
Chapter 4 Insurance

Page 4 - 6

Matured Endowment – The face amount of insurance less any indebtedness that is paid to the

insured based on the plan of insurance. The proceeds may be paid as a lump sum or the insured may

request installment payments.

Cash Surrenders – A policyholder, upon request, receives the cash value that has accrued in his/her

policy, and in return surrenders all right, title, and interest to his/her basic and/or paid-up additional

insurance coverage amounts.

Dividends – Payments to policyholders in participating life insurance programs. It is an allocation of

program surplus funds representing the return of premiums not needed to pay claims and expenses

and a distribution of earnings from investment. Dividends are issued annually on the policy anniversary

date.

Loans – Amounts borrowed against the cash value of a permanent plan life insurance policy. 

Insurance Payments Made During Fiscal Year 2002

Matured Endowment Number1 Amount2 Average Payment

USGLI 28 $114,851 $4,102 

NSLI 611 $5,468,946 $8,951 

VSLI 243 $3,750,173 $15,433 

VRI 1 $41,906 $41,906 

SDVI 240 $2,117,201 $8,822 

TOTAL 1,123 $11,493,077 $10,234 

Cash Surrender Number1 Amount2 Average Payment

USGLI 100 $396,439 $3,964 

NSLI 6,776 $47,091,721 $6,950 

VSLI 814 $6,440,332 $7,912 

VRI 373 $2,163,244 $5,800 

SDVI 713 $6,220,088 $8,724 

TOTAL 8,776 $62,311,824 $7,100 

 1Source: Insurance Master Record Database – Report 510 monthly 2Source: Insurance General Ledger Accounting System – CFO FY02 Life Insurance Statements (Incurred Basis)
Chapter 4 Insurance

Page 4 - 7

Insurance Payments Made During Fiscal Year 2002 (Continued)

Dividends Number3 Amount4 Average Payment

USGLI 14,683 $2,835,280 $193

NSLI 1,606,590 $509,498,060 $317

VSLI 233,335 $93,023,137 $399

VRI 72,581 $19,089,711 $263

TOTAL 1,927,189 $624,446,188 $324

Loans Number5,6 Amount7 Average Payment

USGLI 55 $130,982 $2,381 

NSLI 12,652 $53,800,460 $4,252 

VSLI 3,464 $10,710,939 $3,092 

VRI 966 $2,628,248 $2,721 

SDVI 8,824 $8,336,289 $945 

TOTAL 25,961 $75,606,918 $2,912 

 3Source: Insurance Master Record Database – Insurance Statistical Report – 700 4Source: Insurance General Ledger Accounting System – FY02 Statement of Cash Flows 5Source: Program numbers from an estimate based on a sample of loans from SQC in FY02 and a percent of the total. 6Source: Program totals from Insurance Master Record Database, COIN 84 and Philadelphia MTC Records Report 155. 7Source: Insurance General Ledger Accounting System – Statement of Financial Condition Report.

The table that follows also displays information about dividend payments and provides the data for the

prior four years for purposes of comparison.

Insurance Dividends Payments - Comparative Information for Five Fiscal Years

FY 2002 FY 2001 FY 2000 FY 1999 FY 1998

Number 1,927,189 2,052,062 2,136,512 2,254,469 2,372,303

Total Amounts $624,446,188 $667,957,535 $717,236,383 $761,006,313 $825,364,169 

Average Payments $324 $326 $336 $338 $348
Chapter 4 Insurance

Page 4 - 8

2. Lump Sum Payments Made To Beneficiaries During Fiscal Year 2002

Death claims are paid to the beneficiary upon the death of the insured person. In the case of FSGLI,

the death claim is paid to the service member. All other death claims are paid to the veteran’s or the

service member’s designated beneficiary. The following table provides a distribution of the lump sum

death claims payments by insurance programs.

Insurance Payments During Fiscal Year 2002

Death Claims Number1 Amount2 Average Payment

USGLI 1,339 $4,873,110 $3,639 

NSLI 90,387 $867,309,922 $9,596 

VSLI 5,246 $55,650,783 $10,608 

VRI 4,666 $36,130,742 $7,743 

SDVI 4,479 $42,080,860 $9,395 

VMLI 136 $8,767,212 $64,465 

SGLI3 1,801 $431,387,317 $239,527 

FSGLI3 - Child 538 $5,380,000 $10,000 

FSGLI3 - Spouse 400 $39,290,000 $98,225 

VGLI3 1,327 $123,843,690 $93,326 

TOTAL 110,319 $1,614,713,636 $14,637 

 1Source: Insurance Master Record Database – 510 Monthly Reports. VMLI Database – VMLI Quarterly Report

 Veterans and Reservist Group Insurance System – OSGLI Monthly Report

 2Source: Insurance General Ledger Accounting System – CFO FY02 Life Insurance Statements (Incurred Basis)

 VMLI Database – VMLI Quarterly Report. Veterans and Reservist Group Insurance System – OSGLI Monthly Report 3 SGLI and VGLI data are for the policy year ending June 30, 2002

The table that follows also displays information about death claims paid and provides the data for the

prior four years for purposes of comparison.

Number of Death Claims Paid - Comparative Information for Five Fiscal Years

FY 2002 FY 2001 FY 2000 FY 1999 FY 1998

Number of Claims Paid 110,319 109,867 109,003 108,138 108,613

Total Amounts Paid $1,614,713,636 $1,463,188,372 $1,398,174,179 $1,358,061,052 $1,371,171,825 

Average Amounts Paid $14,637 $13,318 $12,827 $12,559 $12,624 
Chapter 4 Insurance

Page 4 - 9

3. Monthly Payments to Policyholders as of Beginning of Fiscal Year 2003 

Although most veterans choose to receive payments in a single “lump sum,” a monthly payment option

is available to them 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 are made monthly. The following table provides data on

monthly payments to veterans.

Insurance Monthly Award Payments - Beginning of Fiscal Year 2003

Payment Type Number of

Awards

Annual

Payments

Average

Payment

Total Disability Income Provision

USGLI 63 $39,264 $623

NSLI 15,304 $17,836,620 $1,164

VSLI 2,978 $4,094,460 $1,375

VRI 807 $610,224 $756

TOTAL 19,152 $22,580,568 $1,179

Payment Type Number of

Awards

Annual

Payments

Average

Payment

Matured Endowments

USGLI 0 $0 $0

NSLI 1,025 $1,148,832 $1,121

VSLI 715 $1,068,936 $1,495

VRI 56 $56,328 $1,006

SDVI 10 $5,280 $528

TOTAL 1,806 $2,279,376 $1,262
Chapter 4 Insurance

Page 4 - 10

Insurance Monthly Award Payments - Beginning of Fiscal Year 2003

Payment Type Number of

Awards

Annual

Payments

Average

Payment

Cash Surrenders

USGLI 1 $120 $120

NSLI 60 $53,040 $884

VSLI 0 $0 $0

VRI 3 $1,488 $496

SDVI 0 $0 $0

TOTAL 64 $54,648 $854

Total and Permanent Disability

USGLI 95 $24,984 $263

TOTAL 95 $24,984 $263

Source: Insurance Master Record Database - AVS 2012

4. Monthly Payments to Beneficiaries as of Beginning of Fiscal Year 2003 

Although most beneficiaries receive payment in a single “lump sum,” a monthly payment option is

available in some programs for death claim payments. The following table provides data on monthly

payments to beneficiaries.

Insurance Monthly Death Award Payments - Beginning of

Fiscal Year 2003

Payment Type Number of

Awards

Annual

Payments

Average

Payment

USGLI 2,819 $820,524 $291

NSLI 46,159 $28,567,464 $619

VSLI 744 $541,020 $727

VRI 296 $180,564 $610

SDVI 300 $128,172 $427

TOTAL 50,318 $30,237,744 $601

 Source: Insurance Master Record Database - AVS 2012
Chapter 4 Insurance

Page 4 - 11

LIFE INSURANCE – BUSINESS BEGINNING FISCAL YEAR 2003

1. Total Number of Policyholders and the Face Value of Their Coverage

The table below shows the total number of veterans, service members and service members’ spouses

and children insured under each program, the total face value of their policies, and the average face

value of a policy in each program.

Total Insurance Policies In-Force Beginning of Fiscal Year 2003

Insurance Number of Policies Total Face Value Average Face

Value

Maximum Face

Value

USGLI1 13,217 $42,337,021 $3,203 $10,000

NSLI1 1,502,463 $15,549,512,545 $10,349 $10,000

VSLI1 227,341 $2,604,434,648 $11,456 $10,000

VRI1 67,531 $587,261,306 $8,696 $10,000

SDVI1 148,913 $1,413,725,652 $9,494 $10,0002

VMLI3 3,060 $185,677,096 $60,679 $90,000

SGLI4 2,406,500 $569,126,800,000 $236,496 $250,000

FSGLI4 – Child 2,100,000 $21,000,000,000 $10,000 $10,000

FSGLI4 – Spouse 1,013,000 $99,578,000,000 $98,300 $100,000

VGLI4 390,881 $38,562,985,000 $98,657 $250,000

TOTAL 7,872,906 $748,650,733,268 $95,092 N/A

1 Source: Insurance Master Record Database – Insurance Statistical Report 700 2

 Additional $20,000 available for totally disabled policyholders 3

 Source: VMLI Database – VMLI Quarterly Report

4

 Source: Veterans And Reservists Group Insurance System – OSGLI Monthly Report
Chapter 4 Insurance

Page 4 - 12

The following table also displays information about policies “in-force” and provides the data for the prior

four years for purposes of comparison. The significant increase in policies “in-force” at the beginning of

Fiscal Year 2003 is due to the beginning of the FSGLI insurance program. The decrease in average

face value between 2002 and 2003 is due to the smaller face value of the new policies issued under

FSGLI – Child.

Insurance Policies In-Force – Comparative Information for Five Fiscal Years

FY 2003 FY 2002 FY 2001 FY 2000 FY 1999

Number of Policies 7,872,906 4,867,612 4,926,919 4,986,600 5,182,589

Total Face Value $748,650,733,268 $641,068,691,952 $486,581,986,561 $484,616,832,433 $504,098,312,858

Average Face Value $95,092 $131,701 $98,760 $97,184 $97,268

2. Demographic Characteristics of Policyholders

(a) By Age

The following table shows the age distribution of persons insured in VA Insurance programs and the

percent of total each age group represents for that insurance plan.

Note: Because certain programs were active only during past wartime periods, their age distributions

parallel the aging of all other veterans of those periods. The programs in which policies can still be

obtained (SDVI, VMLI, SGLI, and VGLI) have policyholders across a wide distribution of ages. This

table includes only spouses in the FSGLI data.
Chapter 4 Insurance

Page 4 - 13

Age Distribution for Insurance Programs % of Total by Policy Type

Policy Type < 20 20-29 30-39 40-49 50-59 60-69 70-79 80-89 89 > Total Average

Age

USGLI1 N/A N/A N/A N/A N/A N/A 39 12,378 800 13,217 85.2

% of Total 0% 0% 0% 0% 0% 0% 0% 94% 6% 100% N/A

NSLI1 N/A N/A N/A N/A N/A 13,696 882,130 577,336 29,301 1,502,463 77.9

% of Total 0% 0% 0% 0% 0% 1% 59% 38% 2% 100% N/A

VSLI1 N/A N/A N/A N/A N/A 73,910 151,069 2,272 90 227,341 70.6

% of Total 0% 0% 0% 0% 0% 33% 66% 1% 0% 100% N/A

VRI1 N/A N/A N/A N/A N/A 1,814 34,531 30,369 817 67,531 78.6

% of Total 0% 0% 0% 0% 0% 3% 51% 45% 1% 100% N/A

SDVI1 N/A 827 5,352 21,118 65,122 34,080 19,835 2,501 78 148,913 56.7

% of Total 0% 1% 4% 14% 44% 23% 13% 2% 0% 100% N/A

VMLI2 N/A 19 288 658 1,448 621 26 N/A N/A 3,060 51.6

% of Total 0% 1% 9% 22% 47% 20% 1% 0% 0% 100% N/A

SGLI4 183,491 1,039,682 673,125 298,912 76,679 1,111 N/A N/A N/A 2,273,000 30.1

% of Total 8% 46% 30% 13% 3% 0% 0% 0% 0% 100% N/A

FSGLI 19,603 346,809 407,113 191,486 40,661 2,434 227 N/A N/A 1,008,333 33.3

% of Total 2% 34% 40% 19% 4% 0% 0% 0% 0% 100% N/A

VGLI3 389 48,551 128,136 91,082 92,185 26,210 1,698 19 N/A 388,270 42.4

% of Total 0% 13% 33% 23% 24% 7% 0% 0% 0% 100% N/A

TOTALS 183,880 1,089,079 806,901 411,770 235,434 151,442 1,089,328 624,875 31,086 4,623,795 N/A

% by Ag

 Group

4% 24% 17% 9% 5% 3% 24% 14% 1% 100% N/A

1

Source: Insurance Master Record Database – AVS 2010

2

Source: VMLI Database

3

Source: Veterans And Reservists Group Insurance System

4

 Includes both Active Duty and Ready Reservists

 All data as of September 30, 2002 with the exception of SGLI and VGLI which are as of June 30, 2002
Chapter 4 Insurance

Page 4 - 14

(b) By Component and Branch of Service for SGLI & FSGLI Coverage

The following two tables show SGLI and FSGLI policyholders, sorted by component and branch of

service.

Note: The top of the following tables 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 numbers. The FSGLI data reflects

spousal coverage only.

SGLI Coverage By Branch and Component of Service

Branch Total Number Number With SGLI Percent With SGLI Percent of Total With SGLI

Army Active 495,200 487,238 98.4% 21.2%

Navy Active 415,162 404,122 97.3% 17.6%

Air Force Active 368,023 357,688 97.2% 15.6%

Marine Corps Active 187,619 185,550 98.9% 8.1%

Coast Guard Active 35,266 35,266 100% 1.5%

NOAA 204 204 100% 0%

Public Health Service 5,664 5,664 100% 0.2%

TOTAL 1,507,138 1,475,732 97.9% 64.3%

Army Reserve/Guard 572,435 542,588 94.8% 23.6%

Navy Reserve 70,780 60,232 85.1% 2.6%

Air Force

 Reserve/Guard 191,559 180,469 94.2% 7.9%

Marine Corps

 Reserve 28,479 28,342 99.5% 1.2%

Coast Guard Reserve 8,393 8,393 100% 0.4%

TOTAL 871,646 820,024 94.1% 35.7%

GRAND TOTAL 2,378,784 2,295,756 96.5% 100%

Source: Payroll databases of each branch of service – September 2002 SGLI Monthly Premium Payment Reports
Chapter 4 Insurance

Page 4 - 15

FSGLI Coverage by Branch and Component of Service

Branch Total Number Number With FSGLI Percent With FSGLI Percent of Total With FSGLI

Army Active 495,200 224,796 45.4% 22.2%

Navy Active 415,162 166,735 40.2% 16.5%

Air Force Active 368,023 165,448 45.0% 16.3%

Marine Corps Active 187,619 63,268 33.7% 6.2%

Coast Guard Active 35,266 14,537 41.2% 1.4%

NOAA 204 84 41.2% 0.0%

Public Health Service 5,664 2,335 41.2% 0.2%

TOTAL 1,507,138 637,203 42.3% 62.9%

Army Reserve/Guard 572,435 213,923 37.4% 21.1%

Navy Reserve 70,780 46,461 65.6% 4.6%

Air Force

Reserve/Guard 191,559 102,327 53.4% 10.1%

Marine Corps Reserve 28,479 9,266 32.5% 0.9%

Coast Guard Reserve 8,393 3,821 45.5% 0.4%

TOTAL 871,646 375,798 43.1% 37.1%

GRAND TOTAL 2,378,784 1,013,001 42.6% 100%

 Source: Defense Enrollment Eligibility Reporting System (DEERS) and Payroll databases.

(c) By Amount of SGLI and FSGLI Coverage

SGLI coverage of up to $250,000 is available in increments of $10,000. Minimum allowable coverage

is $10,000. FSGLI allows for coverage of up to $100,000 for spouses. The following two tables show

the number of SGLI and FSGLI members covered. The total percentage by coverage level for both

categories of duty status is shown. For ease of presentation, the maximum coverage level is shown by

itself, while all the lesser coverage levels are shown in a combined number.
Chapter 4 Insurance

Page 4 - 16

SGLI Coverage By Coverage Level Active And Reserve Duty

SGLI Coverage Coverage Level

$10,000 - $240,000

Coverage Level

$250,000

SGLI – Active

Number with Coverage 88,773 1,386,959

Percent with Coverage 6.02% 93.98%

SGLI – Reserve

Number with Coverage 106,405 713,619

Percent with Coverage 12.98% 87.02%

 Source: Payroll databases of each branch of service – September 2002 SGLI Monthly Premium Reports

FSGLI Coverage By Coverage Level Active And Reserve Duty

FSGLI Coverage Coverage Level

$10,000 - $90,000

Coverage Level

$100,000

 Active

Number with Coverage 7,912 703,832

Percent with Coverage 1.11% 98.89%

 Reserve

Number with Coverage 16,182 280,407

Percent with Coverage 5.46% 94.54%

 Source: DEERS and Payroll databases
Chapter 4 Insurance

Page 4 - 17

Life Insurance – Geographic Distribution of Data

State/Territory

Life Insurance

Payments1

Fiscal Year 2002

Total Face Value

of Insurance2

09/30/2002

Total Number

of Policies2

09/30/2002

Alabama $25,741,781 $275,253,375 25,943

Alaska $2,549,670 $27,263,276 2,317

Arizona $42,171,859 $450,937,971 43,572

Arkansas $16,294,450 $174,234,341 17,136

California $200,132,446 $2,139,989,097 199,403

Colorado $30,291,988 $323,908,122 30,745

Connecticut $30,804,006 $329,383,064 32,366

Delaware $5,830,549 $62,345,267 6,521

District of Columbia $3,618,274 $38,689,713 3,570

Florida $174,772,686 $1,868,820,623 180,220

Georgia $42,365,404 $453,007,520 43,346

Hawaii $16,033,406 $171,443,041 13,595

Idaho $8,113,855 $86,760,353 8,514

Illinois $80,079,647 $856,280,811 78,303

Indiana $28,644,342 $306,290,065 29,369

Iowa $23,341,001 $249,582,163 22,372

Kansas $18,853,667 $201,599,709 19,068

Kentucky $18,542,291 $198,270,200 19,251

Louisiana $22,603,590 $241,697,122 22,590

Maine $9,750,963 $104,265,729 10,695

Maryland $40,802,961 $436,300,524 39,765

Massachusetts $52,065,633 $556,730,751 59,338

Michigan $52,026,355 $556,310,757 56,696

Minnesota $38,513,725 $411,822,042 42,752

Mississippi $13,685,224 $146,334,240 13,843

Missouri $36,548,329 $390,806,324 38,066

Montana $7,621,380 $81,494,387 7,660

Nebraska $13,799,443 $147,555,568 13,885

Nevada $13,141,945 $140,525,036 13,898

New Hampshire $9,902,547 $105,886,596 10,660

New Jersey $66,653,277 $712,714,457 69,484

New Mexico $13,428,021 $143,584,013 13,532

New York $126,930,833 $1,357,254,176 130,997

North Carolina $46,259,632 $494,647,974 45,675

North Dakota $4,912,090 $52,524,308 5,152

Ohio $71,544,546 $765,016,124 76,063

Oklahoma $21,013,845 $224,698,192 21,878

Oregon $23,941,701 $256,005,361 24,945

Pennsylvania $99,472,362 $1,063,644,483 109,344

Rhode Island $8,001,951 $85,563,780 9,279

South Carolina $25,741,929 $275,254,954 26,355

South Dakota $6,012,416 $64,289,948 6,248

Tennessee $28,194,043 $301,475,080 28,372

Texas $107,433,613 $1,148,773,056 108,417

Utah $11,802,095 $126,198,205 12,493

Vermont $4,374,464 $46,775,555 4,494

Virginia $55,785,950 $596,511,597 53,740
Chapter 4 Insurance

Page 4 - 18

Life Insurance – Geographic Distribution of Data

State/Territory

Life Insurance

Payments1

Fiscal Year 2002

Total Face Value

of Insurance2

09/30/2002

Total Number

of Policies2

09/30/2002

Washington $41,877,813 $447,793,781 43,419

West Virginia $10,261,822 $109,728,271 10,767

Wisconsin $40,344,863 $431,402,150 42,658

Wyoming $3,638,634 $38,907,416 3,506

Puerto Rico $4,137,204 $44,238,562 4,881

Virgin Islands $385,925 $4,126,640 392

Canada $1,275,041 $13,633,845 1,181

Philippines $420,112 $4,492,202 494

Other Foreign $3,732,054 $39,906,351 3,300

TOTAL $1,906,219,653 $20,382,948,268 1,962,525

1

 Source: Insurance General Ledger Accounting System - FY02 Statement of Cash Flows 2

 Source: Insurance Master Record Database - Insurance Actuarial Subsystem - Report-AVS 2007
Chapter 5 Loan Guaranty

Page 5 - 1

Chapter 5

LOAN GUARANTY

LOAN GUARANTY PROGRAM – OVERVIEW 

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.

The Department of Veterans Affairs home loan programs serve a diverse clientele. The common

denominator of this clientele is service in the Armed Forces of the United States. Since inception, the

objective of these programs has been to assist eligible veterans to become homeowners. 

Veterans are assisted by making it possible for them to compete in the market place for credit with

persons who were not obliged to forego the pursuit of gainful occupations because of service in the

Armed Forces. The VA programs are intended to benefit men and women because of their service to

the country, and they are not designed to serve as instruments of attaining general economic or social

objectives.

Throughout the years, the number of loans guaranteed by VA has fluctuated. Factors such as interest

rates and general economic conditions have an impact on the number of veterans obtaining VA

guaranteed home loans. 

VA HOME LOANS GUARANTEED OVER THE PAST FIVE YEARS

The following table shows the number of VA home loans guaranteed over the past five fiscal years, the

total loan amount, the average loan amount, the total guaranty amount and the average guaranty

amount of a VA loan. 
Chapter 5 Loan Guaranty

Page 5 - 2

VA HOME LOANS GUARANTEED OVER THE PAST FIVE YEARS

Fiscal

Year

Number of

Loans Total Loan Amount Average LoanAmount

Total Guaranty

Amount

Average

Guaranty

Amount

2002 317,251 $40,129,134,594 $126,490 $11,667,454,970 $36,777

2001 250,009 $31,254,954,728 $125,015 $9,153,835,594 $36,614

2000 199,160 $23,372,158,574 $117,354 $7,071,308,639 $35,506

1999 485,610 $54,087,681,042 $111,381 $16,659,538,752 $34,306

1998 343,954 $37,906,133,978 $110,207 $11,756,696,506 $34,181

VA HOME 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 generally set a maximum based on rules of

the secondary mortgage market. The maximum VA guaranty is currently $60,000 and lenders are

usually willing to make a “no down-payment” loan of up to 4 times the guaranty, or $240,000. Veterans

pay a funding fee ranging from 1.25 percent to 3 percent of the loan amount (0.5 percent for interest

rate reduction loans). The funding fee can be included in the loan. Veterans receiving VA

compensation are exempt from paying the fee. Since the program began in 1944, VA has guaranteed

more than 16.9 million loans totaling over $748 billion. 

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

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

buy, build or modify homes specifically adapted for their use. These distinctive housing needs may

include:

• Wide doorways to accommodate wheelchairs;

• Ramps instead of steps, and/or, 

• Oversized specially equipped bathrooms

Additionally, special housing adaptation grants are also available for disabled veterans who are either

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

Loan Guaranty administers the Native American Veteran Direct VA Loan Program. This program helps
Chapter 5 Loan Guaranty

Page 5 - 3

our Native American veterans by developing positive working relationships with Native Americans living

on trust lands and tribes, and relevant government entities. Loan Guaranty provides program

information and materials to all interested parties. By the end of Fiscal Year 2002 VA had entered into

a Memorandum of Understanding (MOU) with 60 participating Native American tribes. During Fiscal

Year 2002, VA field offices closed 62 loans under this program. Since this program’s inception, VA has

made 315 loans to Native American veterans.

The summary of eligibility criteria on the following table shows a veteran/serviceperson must have been

discharged or released from active duty under other than dishonorable conditions or met certain other

time in service criteria. If the veteran/serviceperson 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 AND OTHER ELIGIBILITY CRITERIA

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 – present 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

Unmarried Surviving

Spouse

Of an eligible veteran who died as a result of service or serviceconnected conditions

Spouse of POW/MIA Active duty member who is missing in action (MIA) or who is a

prisoner of war (POW)

1

 Entitlement expires on 9/30/09.
Chapter 5 Loan Guaranty

Page 5 - 4

FISCAL YEAR 2002 HOME LOAN GUARANTIES

1. Total Loans Guaranteed

The following table shows the number of home loans guaranteed during Fiscal Year 2002, the total

loan amount, and the average amount of a VA loan. 

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

total amount of the guaranties and the average amount of a guaranty.

Loans Guaranteed During Fiscal Year 2002

Total

Number of

Loans

Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

317,251 $40,129,134,594 $126,490 $11,667,454,970 $36,777

(a) Types of Loans Guaranteed

Fiscal Year 2002 Loans Based on Purchase Loans 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 176,898 55.7% $23,547,392,943 $133,113 $6,725,102,407 $38,017

Interest Rate

Reduction

Refinance

131,889 41.6% $15,578,015,495 $118,115 $4,660,045,057 $35,333

Other Refinance 8,464 2.7% $1,003,726,156 $118,588 $282,307,506 $33,354

TOTAL 317,251 100.0% $40,129,134,594 $126,490 $11,667,454,970 $36,777

Source: LGY SAS File 
Chapter 5 Loan Guaranty

Page 5 - 5

 2. Characteristics of Home Loan Guaranties

(a) By Down-payment Option 

The objective of the VA home loan guaranty program is to enable veterans (and other eligible people1)

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

acquire suitable homes. VA does not require a down payment if the purchase price or cost is not more

than the reasonable value of the property as determined by VA; however, the lender may require one.

If the purchase price or cost is more than the reasonable value, the difference must be paid in cash

from the veteran’s own resources. The following table shows the distribution of loans guaranteed in

Fiscal Year 2002, sorted by whether or not the borrower made a down payment.

Purchase Loans Guaranteed During Fiscal Year 2002 by Down-payment Status

Status Number of

Loans

Percent of

Total Total Loan Amount AverageLoan Amount

Total Guaranty

Amount

Average

Guaranty

Amount

No Downpayment 160,541 90.75% $21,051,416,087 $131,127 6,054,944,590 $37,716

Downpayment 16,357 9.25% $2,496,159,675 $152,605 $670,157,817 $40,971

TOTAL 176,898 100.0% $23,547,392,943 $133,113 $6,725,102,407 $38,017

Source: LGY SAS File

(b) By Buyer Status

The distribution of new loan guaranties by buyer status is shown in the following table. A first time

homebuyer is an eligible person who used the loan guaranty to enter the home-buying market and

purchase a home for the first time.

 

1 Service personnel, reservists, surviving spouses, and spouses of POW/MIA service members are also eligible

under certain circumstances.
Chapter 5 Loan Guaranty

Page 5 - 6

Purchase Loans Guaranteed During Fiscal Year 2002 Based on Buyer Status

Buyer Status Number of

Loans

Percent of

Total Total Loan Amount Average LoanAmount

Total Guaranty

Amount

Average

Guaranty

Amount

First Time Home

Owner 89,575 50.6% $11,384,162,087 $127,091 $3,337,164,766 $37,256

Previous Home

Owner 87,323 49.4% $12,163,230,856 $139,290 $3,387,937,641 $38,798

TOTAL 176,898 100.0% $23,547,392,943 $133,113 $6,725,102,407 $38,017

Source: LGY SAS File

3. Specially Adapted Housing Programs and Direct Loans

The following table shows activity of programs designed to provide housing assistance grants to

seriously disabled veterans and direct loans to Native American veterans on trust lands.

Fiscal Year 2002 Specially Adapted Housing Programs and Direct Loans

Programs Number of

Grants/Loans

Amount of

Grants/Loans

Average Grant/Loan

Amount

Specially Adapted Housing Grants 475 $23,365,284 $47,010

Special Housing Adaptation Grants 56 $459,372 $8,200

TOTAL 531 $23,824,656 $44,868

Direct Loans to Native Americans on trust

lands. 62 $5,619,905 $90,643

GRAND TOTAL 593 $29,444,561 $49,653

Source: FY 2002 Budget, Loan Guaranty Construction and Valuation

4. Demographic Characteristics of Recipients of Home Loan Guaranties

(a) By Periods of Service and Entitlement Criteria

The following table contains data regarding loans guaranteed during Fiscal Year 2002 by veteran’s

period of service and by other entitlement criteria. Brief definitions of the entitlement criteria are found

earlier in this chapter. The table is subdivided into two parts: entitlements for veterans and other

eligibility categories. 
Chapter 5 Loan Guaranty

Page 5 - 7

Loans Guaranteed During Fiscal Year 2002 by Entitlement

Entitlement Number of

Loans

Percent of

Grand Total

Total Loan

Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

World War II 1,136 0.4% $108,847,522 $95,816 $35,593,787 $31,333

Post-World War II 166 0.1% $17,172,890 $103,451 $5,460,291 $32,893

Korean War 1,406 0.4% $139,713,742 $99,370 $45,327,134 $32,238

Post-Korean War 3,618 1.1% $374,237,221 $103,438 $118,957,786 $32,879

Vietnam Era 24,850 7.8% $2,743,103,707 $110,386 $845,606,520 $34,028

Post-Vietnam Era 39,185 12.4% $4,711,950,957 $120,249 $1,406,538,295 $35,895

Gulf War Era 72,077 22.7% $9,218,454,666 $127,897 $2,683,399,841 $37,230

Restored Entitlement 115,636 36.4% $15,109,519,406 $130,664 $4,298,843,737 $37,176

TOTAL 258,074 81.3% $32,423,000,111 $125,635 $9,439,727,391 $36,578

Service Personnel 49,228 15.5% $6,451,799,893 $131,060 $1,860,872,895 $37,801

Reservists 9,179 2.9% $1,173,283,194 $127,823 $341,154,182 $37,167

Unmarried Surviving

Spouse 760 0.2% $79,858,753 $105,077 $25,353,342 $33,360

Spouse of POW 10 0.0% $1,192,643 $119,264 $347,160 $34,716

TOTAL 59,117 18.7% $7,706,134,483 $130,222 $2,227,727,579 $37,645

GRAND TOTAL 317,251 100.0% $40,129,134,594 $126,490 $11,667,454,970 $36,777

Source: LGY SAS File
Chapter 5 Loan Guaranty

Page 5 - 8

(b) By Income

The following table shows the distribution of purchase loans guaranteed during Fiscal Year 2002 by

the annual income of the eligible borrower and spouse, if included. 

Purchase Loans Guaranteed During Fiscal Year 2002 by 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 6,223 3.5% $478,828,572 $76,822 $178,970,946 $28,713 $2,431

$25,000 to $34,999 21,744 12.3% $2,053,836,860 $94,455 $711,468,767 $32,720 $3,036

$35,000 to $44,999 34,684 19.6% $3,919,835,440 $113,016 $1,222,495,419 $35,247 $3,908

$45,000 to $54,999 34,397 19.4% $4,473,044,264 $130,042 $1,285,632,187 $37,376 $4,767

$55,000 to $64,999 28,520 16.1% $4,097,507,723 $143,671 $1,120,383,930 $39,284 $5,581

$65,000 to $74,999 20,605 11.6% $3,201,213,621 $155,361 $845,750,804 $41,046 $6,400

$75,000 and over 30,708 17.4% $5,322,580,288 $173,329 $1,360,220,302 $44,295 $9,019

TOTAL 176,891 100.0% $23,546,846,768 $133,115 $6,724,922,355 $38,017 $5,066

Average Income: $56,186 Median Income $52,332 Median Loan $129,950

Source: LGY SAS File
Chapter 5 Loan Guaranty

Page 5 - 9

(c) By Age 

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

Home Loans Guaranteed During Fiscal Year 2002 by Age

Age Number of

Loans

Percent of

Total Total Loan Amount Average LoanAmount

Total Guaranty

Amount

Average

Guaranty

Amount

18 – 25 10,968 3.5% $1,192,501,291 $108,726 $380,648,962 $34,705

26 – 35 101,921 32.1% $13,214,458,334 $129,654 $3,820,521,877 $37,485

36 – 45 100,724 31.7% $13,393,348,793 $132,971 $3,807,178,631 $37,798

46 – 55 63,701 20.1% $7,845,603,005 $123,163 $2,294,998,582 $36,028

56 – 65 27,555 8.7% $3,212,763,783 $116,595 $960,936,091 $34,873

Over 65 12,382 3.9% $1,270,459,388 $102,605 $403,170,827 $32,561

TOTAL 317,251 100.0% $40,129,134,594 $126,490 $11,667,454,970 $36,777

Average overall age: 42

Source: LGY SAS File

(d) By Race/Ethnicity 

Providing race or ethnicity information on the application for a VA guaranteed loan is voluntary. About

83 percent of borrowers provided race or ethnicity information during Fiscal Year 2002. The race

demographics and distribution of new loan guaranties presented in the following table show the

distribution among the 83 percent who provided that information.

Home Loans Guaranteed During Fiscal Year 2002 by Race

Race/

Ethnicity

Number of

Loans

Percent of

Total Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

White 204,316 77.5% $25,645,393,904 $125,518 $7,487,462,530 $36,646

Black 37,378 14.2% $4,706,351,770 $125,912 $1,371,344,589 $36,689

Hispanic 16,569 6.3% $2,061,761,262 $124,435 $604,617,187 $36,491

Native American 1,626 0.6% $199,800,399 $122,878 $58,720,173 $36,113

Asian 3,660 1.4% $529,779,476 $144,748 $144,942,018 $39,602

TOTAL 263,549 100.0% $33,143,086,811 $125,757 $9,667,086,895 $36,680

Source: LGY SAS File
Chapter 5 Loan Guaranty

Page 5 - 10

ACTIVE HOME LOAN GUARANTIES – AS OF OCTOBER 1, 2003

This section of the chapter provides information about the entire population of program beneficiaries at

the beginning of Fiscal Year 2003. 

1. Total Active Guaranteed Loans

The following table shows the total number of active VA home loan guaranties at the beginning of

Fiscal Year 2003. The table also includes the total amount and average amount of the loans, as well

as the total amount and average amount of the VA guaranties on those loans. 

Active Loans Based on Purchase Loans versus Refinance Loans

Beginning of Fiscal Year 2003

Type of Loan Number of

Loans

Percent

of Total Total Loan Amount Avg. LoanAmount

Total Guaranty

Amount

Avg.

Guaranty

Amount

Avg.

Interest

Purchase

Loans 2,021,183 69.9% $163,666,007,822 $80,975 $55,506,283,587 $27,462 8.11%

Interest

Rate

Reduction

Refinance

773,270 26.7% $77,786,181,108 $100,594 $24,591,220,484 $31,802 7.20%

Refinance -

Other

Reasons

97,805 3.4% $7,929,948,333 $81,079 $2,662,180,671 $26,810 8.26%

TOTAL 2,892,258 100.0% $249,381,137,263 $86,224 $82,719,960,870 $28,600 7.87%

Source: LGY SAS file

Differs slightly from 2,893,744 on Page 5-17, as a few older records did not capture loan type.

2. Characteristics of Active Home Loan Guaranties

(a) 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. VA does not require a down payment if the purchase price or cost is not more

than the reasonable value of the property as determined by VA, but the lender may require one. If the

purchase price or cost is more than the reasonable value, the difference must be paid in cash from the

veteran’s own resources. 
Chapter 5 Loan Guaranty

Page 5 - 11

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 Down-payment Status

Beginning of Fiscal Year 2003

Status Number of

Loans

Percent of

Total Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

No Downpayment 1,325,373 85.6% $127,657,247,979 $96,318 $42,069,432,581 $31,742

Downpayment 239,540 14.4% $22,563,813,244 $95,583 $6,718,507,605 $30,147

TOTAL 1,548,230 100.0% $148,958,644,274 $96,212 $48,787,940,186 $31,512

Source: LGY SAS file. Purchase price used to determine down payment not available prior for FY ’79.

(b) By Buyer Status 

The distribution of active loan guaranties by buyer status is shown in the following table. A first time

homebuyer 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 20031

Buyer Status Number of

Loans

Percent of

Total Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

First Time Home

Buyer1 601,440 54.0% $62,850,060,762 $104,499 $20,301,631,987 $33,755

Previous Home

Buyer 512,433 46.0% $59,320,070,017 $115,762 $17,894,712,338 $34,921

TOTAL 1,113,873 100.0% $122,170,130,779 $109,680 $38,196,344,325 $34,291

Source: LGY SAS file

1

 First time homebuyer information not available before FY 1993.

3. Demographic Characteristics of All People with Active Guaranteed Loans

(a) By Entitlement and Other Entitlement Criteria

The following table shows the distribution of active home loan guaranties at the beginning of

Fiscal Year 2003, sorted by the veteran’s period of service and other entitlement criteria.
Chapter 5 Loan Guaranty

Page 5 - 12

Note: Brief definitions of the entitlement criteria may be found earlier in this chapter.

The following table is divided into two parts:

• Veteran entitlement, and 

• Other entitlement categories. 

Active Home Loans By Period of Service (or Entitlement)

Beginning of Fiscal Year 2003

Entitlement Number of

Loans

Percent of

Grand

Total

Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

World War II 72,568 2.5% $3,387,078,729 $46,675 $1,365,3309,803 $18,815

Post-World

War II 2,855 0.1% $208,940,113 $73,184 $75,108,884 $26,308

Korean War 55,677 1.9% $3,070,467,894 $55,148 $1,161,247,931 $20,857

Post-Korean

War 162,965 5.6% $9,050,818,989 $55,538 $3,401,812,506 $20,874

Vietnam Era 791,616 27.4% $49,030,604,662 $61,937 $18,189,389,724 $22,978

Post-Vietnam

Era 476,370 16.5% $45,825,928,329 $96,198 $15,114,542,481 $31,729

Gulf War Era 285,543 9.9% $31,629,433,714 $110,769 $9,881,540,532 $34,606

Restored

Entitlement 555,801 19.2% $61,766,592,134 $111,131 $18,604,013,864 $33,472

TOTAL 2,403,395 83.1% $203,969,864,564 $84,867 $67,792,986,725 $28,207
Chapter 5 Loan Guaranty

Page 5 - 13

Active Home Loans By Period of Service (or Entitlement)

Beginning of Fiscal Year 2003

Entitlement Number of

Loans

Percent of

Grand Total Total Loan Amount Average LoanAmount

Total Guaranty

Amount

Average

Guaranty

Amount

Service

Personnel1 432,692 15.0% $39,458,985,393 $91,194 $13,038,395,715 $30,133

Reservists 48,315 1.7% $5,381,933,670 $111,393 $1,677,453,220 $34,719

Unmarried

Surviving

Spouse

7.619 0.3% $563,706,680 $73,987 $204,616,593 $26,856

Spouse of

POW 138 0.0% $11,380,313 $82,466 $3,739,475 $27,098

TOTAL 488,764 16.9% $45,416,006,056 $92,920 $14,924,205,003 $30,535

Grand Total 2,892,1591 100.0% $249,385,870,620 $86,228 $82,717,191,728 $28,600

Source: LGY SAS file

1

 Differs slightly from 2,893,744 on Page 5-17, as a few older records did not capture entitlement type.
Chapter 5 Loan Guaranty

Page 5 - 14

(b) By Age 

The distribution of all active loan guaranties by age group of the eligible person is shown in the

following table.

Active Home Loans Based on Age Beginning of Fiscal Year 2003

Age Number of

Loans

Percent of

Total Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

18 – 25 19,457 0.7% $1,952,088,517 $100,328 $646,542,632 $33,229

26 – 35 380,606 13.2% $42,012,875,507 $110,384 $13,154,215,806 $34,561

36 – 45 706,832 24.4% $75,209,562,905 $106,404 $23,728,893,162 $33,571

46 – 55 872,045 30.1% $71,266,234,949 $81,723 $24,172,464,574 $27,719

56 – 65 564,743 19.5% $38,806,797,936 $68,716 $13,535,997,748 $23,968

Over 65 349,950 12.1% $20,175,819,692 $57,653 $7,499,530,476 $21,430

TOTAL 2,893,6331 100.0% $249,423,379,506 $86,197 $82,737,644,398 $28,593

 Average overall age: 50

Source: LGY SAS file

1

 Includes direct loans sold and later guaranteed.

Differs slightly from 2,893,744 on Page 5-17, as a few older records did not capture birth year.
Chapter 5 Loan Guaranty

Page 5 - 15

(c) By Race

Providing race information on the application for a VA guaranteed loan is voluntary. The race

demographics and distribution of loan guaranties presented in the following table show the distribution

of all active loan guaranties by race among the 83 percent who provided that information as of the

beginning Fiscal Year 2003.

Active Loans by Race Beginning of Fiscal Year 2003

Race Number of

Loans

Percent of

Total Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

White 1,928,603 78.7% $161,738,858,539 $83,863 $54,175,521,238 $28,091

Black 343,367 14.0% $28,714,091,198 $83,625 $9,696,459,711 $28,239

Hispanic 133,256 5.4% $11,284,035,702 $84,679 $3,780,163,226 $28,368

Native

American 13,967 0.6% $1,291,643,561 $92,478 $420,868,579 $30,133

Asian 30,400 1.2% $3,421,570,724 $112,552 $1,011,720,946 $33,280

TOTAL 2,449,5931 100.0% $206,450,199,724 $84,279 $69,084,733,700 $27,628

Source: LGY SAS file

1

Excludes 442,665 unknown racial records

(d) By Gender

Active Loans by Gender Beginning of Fiscal Year 2003

Gender Number of

Loans

Percent of

Total Total Loan Amount

Average

Loan

Amount

Total Guaranty

Amount

Average

Guaranty

Amount

Male 2,751,815 95.4% $235,041,521,993 $85,413 $78,143,103,145 $28,397

Female 133,759 4.6% $13,909,483,632 $103,989 $4,419,801,967 $33,043

TOTAL 2,885,5741 100.0% $248,951,005,625 $86,274 $82,562,905,112 $28,612

Source: LGY SAS File

1 Excludes 6,585 loans that did not contain gender information in the record.
Chapter 5 Loan Guaranty

Page 5 - 16

Home Loans Guaranteed during Fiscal Year 2002 by State and Territory

State/Territory Number Loan Amount

ALABAMA 5,549 $598,849,346

ALASKA 2,430 $389,393,476

ARIZONA 12,547 $1,630,342,845

ARKANSAS 3,311 $312,041,570

CALIFORNIA 20,329 $3,165,860,325

COLORADO 10,038 $1,589,488,530

CONNECTICUT 1,324 $187,417,158

DELAWARE 1,306 $183,710,850

DISTRICT OF COLUMBIA 159 $21,646,330

FLORIDA 26,135 $3,072,905,020

GEORGIA 14,416 $1,786,721,454

HAWAII 777 $130,598,785

IDAHO 2,196 $255,637,178

ILLINOIS 7,695 $946,796,414

INDIANA 5,904 $667,361,103

IOWA 1,766 $188,490,250

KANSAS 3,055 $333,112,172

KENTUCKY 3,707 $408,580,709

LOUISIANA 3,567 $385,942,989

MAINE 1,232 $140,446,320

MARYLAND 12,021 $1,845,088,050

MASSACHUSETTS 1,915 $283,409,182

MICHIGAN 5,599 $667,126,854

MINNESOTA 4,035 $548,948,571

MISSISSIPPI 2,716 $293,779,746

MISSOURI 6,058 $670,839,127

MONTANA 974 $106,447,978

NEBRASKA 2,600 $310,972,421

NEVADA 6,899 $1,001,357,848

NEW HAMPSHIRE 1,136 $160,844,391

NEW JERSEY 4,196 $556,353,826

NEW MEXICO 3,396 $411,344,151

NEW YORK 4,119 $433,234,556

NORTH CAROLINA 15,472 $1,788,917,081

NORTH DAKOTA 732 $67,295,562

OHIO 9,649 $1,138,643,467

OKLAHOMA 4,427 $443,730,374

OREGON 4,645 $655,731,590

PENNSYLVANIA 7,241 $821,452,249

RHODE ISLAND 624 $88,668,500

SOUTH CAROLINA 4,703 $565,050,103

SOUTH DAKOTA 855 $92,357,509

TENNESSEE 7,462 $843,480,486

TEXAS 30,749 $3,422,670,427

UTAH 2,546 $362,181,577

VERMONT 373 $45,403,051

VIRGINIA 23,767 $3,263,920,581

WASHINGTON 14,060 $2,051,871,524

WEST VIRGINIA 1,016 $109,005,328

WISCONSIN 4,436 $513,657,440

WYOMING 743 $87,912,689

GUAM 28 $4,030,873

PUERTO RICO 608 $76,926,883

VIRGIN ISLANDS 8 $1,137,775

TOTAL 317,251 $40,129,134,594

 Source: LGY SAS Program
Chapter 5 Loan Guaranty

Page 5 - 17

Home Loans Guaranteed at the Beginning of Fiscal Year 2003 by State and Territory

State/Territory Number Loan Amount

ALABAMA 57,602 $4,108,869,973

ALASKA 16,785 $2,108,071,710

ARIZONA 91,114 $8,170,548,123

ARKANSAS 32,534 $2,091,258,137

CALIFORNIA 286,649 $30,057,093,503

COLORADO 76,800 $7,661,044,958

CONNECTICUT 15,205 $1,500,396,458

DELAWARE 11,395 $1,068,421,616

DISTRICT OF COLUMBIA 4,266 $326,554,303

FLORIDA 220,277 $17,895,994,754

GEORGIA 124,852 $10,467,640,233

HAWAII 6,713 $850,374,573

IDAHO 17,321 $1,485,981,647

ILLINOIS 62,835 $5,268,783,519

INDIANA 49,727 $3,644,546,453

IOWA 15,548 $1,026,488,020

KANSAS 30,481 $2,121,515,115

KENTUCKY 32,090 $2,390,929,717

LOUISIANA 43,698 $2,952,379,921

MAINE 13,247 $990,602,748

MARYLAND 113,876 $12,494,987,800

MASSACHUSETTS 23,913 $2,202,368,514

MICHIGAN 47,661 $3,461,701,666

MINNESOTA 46,659 $3,867,337,216

MISSISSIPPI 27,816 $1,828,715,590

MISSOURI 44,398 $3,292,764,918

MONTANA 12,671 $908,503,429

NEBRASKA 23,433 $1,808,848,372

NEVADA 51,080 $5,417,856,800

NEW HAMPSHIRE 10,928 $1,051,408,173

NEW JERSEY 48,532 $3,973,968,920

NEW MEXICO 25,278 $2,303,797,676

NEW YORK 55,949 $3,890,928,184

NORTH CAROLINA 112,983 $9,584,486,002

NORTH DAKOTA 5,559 $379,017,348

OHIO 88,734 $6,393,831,514

OKLAHOMA 51,745 $3,420,103,749

OREGON 22,185 $2,490,462,169

PENNSYLVANIA 65,999 $5,010,444,547

RHODE ISLAND 4,789 $548,477,967

SOUTH CAROLINA 47,402 $3,633,163,074

SOUTH DAKOTA 6,754 $501,496,720

TENNESSEE 67,763 $5,272,971,776

TEXAS 304,491 $22,204,964,234

UTAH 18,266 $1,687,686,618

VERMONT 2,294 $222,278,686

VIRGINIA 208,034 $21,420,656,043

WASHINGTON 82,423 $9,317,969,605

WEST VIRGINIA 11,211 $745,847,956

WISCONSIN 28,762 $2,335,908,892

WYOMING 7,352 $561,703,028

GUAM 461 $44,900,060

PUERTO RICO 14,962 $938,945,629

VIRGIN ISLANDS 242 $25,892,595

TOTAL 2,893,744 $249,431,890,951

 Source: LGY SAS Program
Chapter 5 Loan Guaranty

Page 5 - 18
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 1

Chapter 6

VOCATIONAL REHABILITATION

& EMPLOYMENT

VETERANS AND ELIGIBLE DEPENDENTS SERVED DURING FISCAL YEAR 2002

The mission of the Vocational Rehabilitation and Employment (VR&E) Program is to provide

comprehensive services and assistance necessary to enable veterans with service-connected

disabilities and employment handicaps to become employable, then obtain and maintain stable and

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

those veterans to achieve maximum independence in daily living activities.

The numbers in the following table represent the number of services provided by Vocational

Rehabilitation and Employment services during FY 2002 provided to 70,550 veterans. Services

provided include Evaluation and Planning Services, Employment Services, and Rehabilitation Services.

Services by the VR&E Programs

 During Fiscal Year 2002

Program Number Percent

Service-Connected Veterans (Chapter 31) 262,466 99.99%

Pension Recipients (Chapter 15) 0 0.00%

Vietnam Veterans' Children With Spina Bifida (Chapter 18) 35 0.01%

TOTAL 262,501 100%

Sources: VR&E Program Management Reports (FY 2002) and Regional Office Reports

Veterans may progress through a series of steps, or case statuses, that describe the part 

of the program they are currently in and available services provided by VR&E. The steps are

described below:

• Step 1. Application for the benefit.

• Step 2. Evaluation to assess needs and determine services to which a veteran may be

entitled and conduct rehabilitation planning.

• Step 3. Provide rehabilitation services for employment (services and assistance that lead to

the veteran to become job-ready or able to live more independently in the community).

• Step 4. Service in “job-ready” status assists the veteran in obtaining and maintaining

suitable employment.

• Step 5. Rehabilitation includes veterans who obtain and maintain suitable employment or

achieved maximum independence in daily living.

The following subsections provide information about veterans who participated in each of the steps
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 2

during Fiscal Year 2002. 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.

APPLICANTS FOR A PROGRAM OF REHABILITATION AND EMPLOYMENT SERVICES (STEP 1)

A total of 68,878 veterans applied for rehabilitation and employment services during Fiscal Year 2002.

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

The first step (where the veteran enters Applicant Status) begins when VA receives the veteran’s

application and determines the veteran’s basic eligibility. Basic eligibility is determined when:

1. The veteran has a discharge under other than dishonorable conditions, and

2. The veteran has a compensable disability (i.e., the disability is evaluated as 10% or more).

3. During the Applicant Status step, VR&E schedules the veteran for an individual appointment

to determine his/her entitlement to a program of services. At this time, he/she may be

provided with information on the nature and process of the program through either individual

communications or through a group briefing. Follow-up activities are conducted to ensure

that the veteran meets the scheduled appointment or reschedules the appointment date and

time.

Applicants for Vocational Rehabilitation

 by Combined Degree of Disability During Fiscal Year 2002

Disability Evaluation Number Percent

0% 56 0.1%

10% 7,765 3.2%

20% 11,398 20.6%

30% 10,912 19.8%

40% 8,193 14.8%

50% 5,018 9.1%

60% 4,062 7.4%

70% 2,870 5.2%

80% 1,520 2.8%

90% 623 1.1%

100% 3,324 6.0%

Other1

5,509 10.0%

TOTAL 61,250 100%

Source: VR&E Program Management Reports (FY 2002) Benefits

Delivery Network - Data Warehouse and Disability Compensation Data

1

 Other contains cases not rated and memo ratings
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 3

Note: The “Other” category in the table on Page 6-2 includes applicants with non-compensable service

connected disabilities, for example: 

• Disabilities were not found to be service-connected; or

• Disabilities were service-connected but not so disabling as to allow payment of compensation,

or

• No application for service connection was made. (In this instance, a memorandum rating is

required to determine entitlement to vocational rehabilitation on the basis of service-connected

disability level.)

(a) By Gender

Applicants for Vocational Rehabilitation

by Gender

During Fiscal Year 2002

Female Male Total

Number 9,009 52,241 61,250

Percent 14.7% 85.3% 100%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery

Network – Data Warehouse

(b) By Age

Applicants for Vocational Rehabilitation

by Age

During Fiscal Year 2002

Age

17 - 21

Age

22 - 29

Age

30 - 39

Age

40 - 49

Age

50 - 59

Age

60 >

Total For

All Ages1

Number 930 9,578 14,365 18,907 14,095 3,370 61,245

Percent 1.5% 15.6% 23.5% 30.9% 23.0% 5.5% 100%

Source: VR&E Program Management Reports (FY 2002) - Benefits Delivery Network - Data Warehouse 1

 Total includes 5 unknown cases
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 4

EVALUATION AND PLANNING OR EXTENDED EVALUATION (STEP 2)

Veterans are provided a comprehensive evaluation to assess needs and determine their entitlement to

a program of rehabilitation and employment services and conduct rehabilitation planning. Each veteran

goes through the Evaluation and Planning status, and may also go through the Extended Evaluation

status if it is needed in the individual case. If entitlement is found, VR&E gathers information to develop

an individualized plan of services to help the veteran achieve either a specific occupational goal or

independence in daily living. If entitlement is not found, VR&E assists veterans with developing their

options before they exit the process.

In Fiscal Year 2002, 64,616 veterans participated in evaluation and planning and extended evaluation

processes. Demographic data for veterans found to be entitled (for rehabilitation and employment

services) during Fiscal Year 2002 are reflected in the following tables.

Below is a brief description of the Evaluation and Planning status and the Extended Evaluation status:

• Evaluation and Planning: A veteran who reports for his/her initial evaluation appointment is

placed in the Evaluation and Planning status. In this status, a comprehensive evaluation of

the veteran’s abilities, interests, and aptitudes is accomplished by evaluating medical

information, educational and work histories, and other information specific to the

circumstance of the veteran. The Vocational Rehabilitation Counselor (VRC) or Counseling

Psychologist (CP) uses this information to determine if the veteran is entitled to a program of

services and, if found to be entitled, works with the veteran to develop a specific plan of

services to achieve the agreed upon goal.

• Extended Evaluation: During the Evaluation and Planning Status, the VRC may determine

that, due to the extent of the veteran’s disabilities, there is insufficient information to

determine if a veteran can benefit from a rehabilitation and employment program. The VRC

is also unable to determine if the veteran will eventually achieve the goal of suitable

employment or maximization of independent living skills. In order to further assess the

veteran’s potential, he/she is placed in the Extended Evaluation status.

 

• A specialized rehabilitation service provides the VRC or CP with a more detailed

assessment of the veteran’s potential to achieve a rehabilitation goal. The assessment aids

the VRC or CP in developing the veteran’s plan for services.

Note: Of the 64,616 veterans who were provided evaluation services in Fiscal Year 2002, 34,353 were

found to be entitled to programs of rehabilitation services. The remainder were not found entitled or

dropped out of the evaluation process prior to this determination.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 5

(a) By Combined Degree of Service-Connected Disability

Veterans Entitled to Vocational Rehabilitation

 by Combined Degree of Disability During Fiscal Year 2002

Disability Evaluation Number Percent

0% 4 0.0%

10% 1,492 4.3%

20% 5,899 17.2%

30% 6,423 18.7%

40% 5,710 16.6%

50% 3,594 10.5%

60% 3,472 10.1%

70% 2,521 7.3%

80% 1,550 4.5%

90% 623 1.8%

100% 2,623 7.6%

Other1 442 1.3%

TOTAL 34,353 100%

Source: VR&E Program Management Reports (FY 2002), Benefits

Delivery Network - Data Warehouse

1 “Other” category contains memo rating cases and includes

applicants with non-compensable (0%) evaluations for serviceconnected disabilities or non-service-connected disabilities.

(b) By Gender

Veterans Entitled to Vocational Rehabilitation

by Gender

During Fiscal Year 2002

Female Male Total

Number 5,918 28,435 34,353

Percent 17.2% 82.8% 100%

Source: VR&E Program Management Reports (FY 2002)

Benefits Delivery Network - Data Warehouse
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 6

(c) By Age

Veterans Entitled to Vocational Rehabilitation

by Age

During Fiscal Year 2002

Age

17 - 21

Age

22 - 29

Age

30 - 39

Age

40 - 49

Age

50 - 59

Age

60 >

Total For

All Ages

Number 273 5,387 8,818 11,304 7,040 1,529 34,351

Percent 0.8% 15.7% 25.7% 32.9% 20.5% 4.5% 100%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse

Total Includes 1 under 17 case and 1 unknown case

(d) By Period of Service

Veterans Entitled to Vocational Rehabilitation

by Period of Service

During Fiscal Year 2002

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 181 25 149 297 4,621 6,719 22,361 34,353

Percent 0.5% 0.1% 0.4% 0.9% 13.5% 19.6% 65.1% 100%

Source: VR&E Program Management Reports (FY 2002) Benefits Delivery Network - Data Warehouse 1

 These three periods are generally combined into "Peacetime" service in other sections of this report.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 7

(e) By Serious Employment Handicap

Veterans Entitled to Vocational Rehabilitation

with a Serious Employment Handicap (SEH)

During Fiscal Year 2002

Number Percent

Total Veterans 34,353 --

Total With SEH 15,346 45%

Source: VR&E Program Management Reports (FY 2002), Benefits

Delivery Network - Data Warehouse 

Note: A serious employment handicap is a significant impairment, caused in part by a serviceconnected disability, in the veteran’s ability to prepare for, obtain, or retain employment consistent with

his/her abilities, aptitudes, and interests.

(f) Veterans Who Completed Evaluation and Developed Rehabilitation Plans

Veterans Participating in a Vocational Rehabilitation

Program and the Number of New Rehabilitation Plans

 Developed During Fiscal Year 2002

Total Participants1 53,605

Training Plans Developed2 23,436

Percent Of Training Plans 44% 1

Source: VR&E Program Management Reports (FY 2002) 

2

Source: COIN TAR 6001

Benefits Delivery Network - Data Warehouse

PARTICIPATION IN A PROGRAM OF REHABILITATION SERVICES (STEP 3)

 1. Upon the completion of the individualized rehabilitation plan, the veteran enters a rehabilitation

program to:

• Become job-ready in the selected vocational choice, or

• Achieve the maximum ability to live independently in the community
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 8

 2. The majority of veterans participating in a plan of services follow the employment track and may

receive services that include:

• Employment planning;

• Training or education;

• Medical or dental care, and

• Other supportive services.

The length of time that a veteran remains in a rehabilitation program varies according to the individual

circumstances of each veteran; however, the average time spent in the program is approximately two

and one-half years.

A total of 69,634 veterans actively participated in programs during Fiscal Year 2002. Many of these

veterans received subsistence allowance payments if their programs included training or the veteran

was eligible for this allowance through other program provisions. Data shown in the subsequent tables

reflect only that part of this group that received a subsistence allowance.

(a) By Occupational Goal

Veterans Participating in a Vocational Training Program

by Occupational Goal During Fiscal Year 2002

Occupational Goal Total

Number

Percent

of Total

Number

of Male

Percent

of Total

Number

of Female

Percent

of Total

Agricultural, Fishery

and Forestry 119 0.2% 91 0.2% 28 0.2%

Bench work 278 0.5% 259 0.6% 19 0.2%

Clerical 1,989 3.7% 1,334 3.2% 655 5.5%

Independent Living 1,188 2.2% 1,026 2.5% 162 1.4%

Machine Trades 997 1.9% 976 2.3% 21 0.2%

Miscellaneous 1,840 3.4% 1,521 3.6% 319 2.7%

Processing (Butcher,

Meat Processor, etc.) 45 0.1% 40 0.1% 5 0.0%

Professional,

Technical, and

Managerial

44,746 83.5% 34,349 82.4% 10,397 87.2%

Sales 326 0.6% 279 0.7% 47 0.4%

Service 1,094 2.0% 866 2.1% 228 1.9%

Structural (Building

Trades) 983 1.8% 947 2.3% 36 0.3%

Unknown/Other 0 0.0% 0 0.0% 0 0.0%

TOTAL 53,605 100% 41,688 100% 11,917 100%

Source: VR&E Program Management Reports (FY 2002) Benefits Delivery Network - Data Warehouse
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 9

(b) By Type of Training Activity

Veterans Participating in a Vocational Training Program

by Type of Training and Gender

During Fiscal Year 2002

Type Of Training Total

Number

Percent of

Total

Number of

Male

Percent of

Total

Number of

Female

Percent of

Total

Undergraduate 44,830 83.6% 34,264 82.2% 10,566 88.7%

Vocational/Tech 4,318 8.1% 3,813 9.1% 505 4.2%

Graduate 1,900 3.5% 1,349 3.2% 551 4.6%

College, Non-Degree 1,082 2.0% 925 2.2% 157 1.3%

Extend. Eval/Ind. Living 942 1.8% 857 2.1% 85 0.7%

On The Job 226 0.4% 201 0.5% 25 0.2%

Eval/Imp Rehab Potential 45 0.1% 41 0.1% 4 0.0%

High School 26 0.0% 22 0.1% 4 0.0%

Non/Nom. Pay in Gov. 86 0.2% 82 0.2% 4 0.0%

Gov. Work Experience 69 0.1% 58 0.1% 11 0.1%

Apprenticeship 76 0.1% 71 0.2% 5 0.0%

Farm Co-op 5 0.0% 5 0.0% 0 0.0%

TOTAL 53,605 100% 41,688 100% 11,917 100%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 10

(c) By Serious Employment Handicap

Veterans Participating in a Vocational Training Program

with a Serious Employment Handicap During Fiscal Year 2002

Number With Serious Employment Handicap 53,605

Total Participants 21,083

Percent With Serious Employment Handicap 39%

Source: VR&E Program Management Reports (FY 2002) Benefits Delivery

Network – Data Warehouse

(d) By Gender

Veterans Participating in a Vocational Training Program

 by Gender During Fiscal Year 2002

Female Male

Total for

Both

Genders

Number 11,917 41,688 53,605

Percent 22.2% 77.8% 100%

Source: VR&E Program Management Reports (FY 2002)

Benefits Delivery Network - Data Warehouse

(e) By Age

Veterans Participating in a Vocational Training Program

 by Age During Fiscal Year 2002

Age

17 – 21

Age

22 - 29

Age

30 - 39

Age

40 - 49

Age

50 - 59

Age

60 >

Total For

All Ages

Number 166 8,641 17,375 19,084 7,428 911 53,605

Percent 0.3% 16.1% 32.4% 35.6% 13.9% 1.7% 100%

Average Age For Veterans In Training Status: 40

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 11

(f) By Period of Service

Veterans Participating in a Vocational Training Program

 by Period of Service During Fiscal Year 2002

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 7 49 195 3,247 8,518 41,571 53,605

Percent 0.0% 0.0% 0.1% 0.4% 6.1% 15.9% 77.6% 100%

Source: VR&E Program Management Reports (FY 2002) - Benefits Delivery Network - Data Warehouse 1

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

(g) By Branch of Service

Veterans Participating in a Vocational Training Program

 by Branch of Service During Fiscal Year 2002

Army1 Navy Air Force Marine

Corps

Coast

Guard Other2 Total For AllBranches

Number 25,585 11,628 9,348 5,800 654 590 53,605

Percent 47.7% 21.7% 17.4% 10.8% 1.2% 1.1% 100%

Source: VR&E Program Management Reports (FY 2002) - Benefits Delivery Network - Data Warehouse 1

 Army includes 2 from Women's Army Corps

2

 Other includes 1 from Special Philippine Scouts, 3 from Public Health Service and 586 records with no branch of

service data.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 12

(h) By Length of Service

Veterans Participating in a Vocational Training Program

 by Length of Service During Fiscal Year 2002

Length of Service Number Percent

3 Months or Less 325 0.6%

3 to 6 Months 730 1.4%

6 Months to 2 Years 5,578 10.4%

2 to 4 Years 13,163 24.6%

4 to 10 Years 14,934 27.9%

10 to 15 Years 5,454 10.2%

15 to 20 Years 3,781 7.1%

20 to 30 Years 9,479 17.7%

Over 30 Years 161 0.3%

TOTAL 53,605 100%

Source: VR&E Program Management Reports (FY 2002)

Benefits Delivery Network - Data Warehouse

0

5,000

10,000

15,000

20,000

25,000

30,000

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Veterans Participating in a Vocational 

Training Program by Branch of Service (FY 1998-FY 2002)

Army

Navy

Air Force

Marine Corps

Coast Guard

Other
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 13

(i) By 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 2002

Single Single With

Children Married Married WithChildren

Dependent

Parent(s) Total1

Number 12,539 6,851 9,231 24,798 93 53,512

Percent 23.4% 12.8% 17.3% 46.3% 0.2% 100%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse 1

 Does not include 93 veterans whose dependency status is unknown.

(j) By Prior Education Level: Distribution by level of education attained before the

veteran’s enrollment in a training program

Veterans Participating in a Vocational Training Program

 by Prior Education Level During Fiscal Year 2002

Less Than

High School High School PostHigh School

Four Year

College

Degree

Graduate

Training Total

Number 468 28,918 19,283 2,799 2,137 53,605

Percent 0.9% 53.9% 36.0% 5.2% 4.0% 100%

Source: VR&E Program Management Reports (FY 2002) Benefits Delivery Network - Data Warehouse
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 14

(k) By Prior Use of VA Educational Benefits: VR&E program participants who

previously used VA education benefits during Fiscal Year 2002

Veterans Participating in a Vocational Training Program

by Prior Use of VA Benefits During Fiscal Year 2002

Prior Use No Prior

Use Total

Number 17,717 35,888 53,605

Percent 33.1% 66.9% 100%

Source: VR&E Program Management Reports 

(FY 2002) Benefits Delivery Network - Data Warehouse

JOB READY – PREPARING FOR AND SEARCHING FOR A SUITABLE JOB (STEP 4)

 1. A veteran, while in the Evaluation and Planning Status, may be found:

• To need additional rehabilitation services before he/she is job-ready, or 

• To have transferable skills developed through prior education or experience that

would allow him/her to successfully compete in the job market without additional

training.

 2. Whether the veteran becomes job-ready after participating through rehabilitation to the point

of Employability Status or is determined to be job-ready in the evaluation process, he/she is placed

in the Employment Services Status. The employment assistance needs of each veteran is

assessed and a plan of services is developed that will lead to moving into suitable employment.

Services may include:

• Job market exploration;

• Job seeking skills;

• Resume preparation;

• Interview skills, and

• Other assistance.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 15

VR&E provides each veteran with a case manager. The case manager follows the veteran’s progress

through the program and ensures delivery of prescribed services.

The following table shows those veterans who progressed from participating in a program of

rehabilitation services to employment services. In Fiscal Year 2002, a total of 14,018 veterans received

services in the Employment Services status. This includes 916 veterans who were found (in the

Evaluation and Planning Status) to possess marketable skills without additional education or training,

but needed specific employment services to obtain and maintain suitable employment. Therefore,

rather than participate in a program of rehabilitation services that may have included training or

education, these veterans were able to move directly to the Employment Services Status. The

remaining 13,102 veterans received services in the Rehabilitation to the Point of Employability Status.

Veterans in this status may be provided assistance in:

• Resume preparation;

• Interview techniques;

• Job hunting strategies, and

• Other direct employment services.

Veterans Participating in a Vocational Training Program by

Veterans Who Entered Employment Services During Fiscal Year 2002

Total Participants1 53,605

Employment Plans Developed2 14,018

Percent In Employment Plans 26% 1

Source: VR&E Program Management Reports (FY 2002)

2

Source: COIN TAR 6005

Note: Participants are all veterans who received subsistence allowance while in a training program

during FY 2002.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 16

(a) Veterans Served by the Program by Race or Ethnicity Sorted by Case Status

Veterans in Active Case Statuses During Fiscal Year 2002 By Race/Ethnicity

Race/Ethnicity Applicant Status

American Indian/Alaskan 395

Asian/Pacific Island 827

Black 15,963

White 29,645

Hispanic 745

Other 1,962

Unknown 4,377

Unidentified 14,952

TOTAL 68,870

Race/Ethnicity Evaluation and Planning Status

American Indian/Alaskan 368

Asian/Pacific Island 854

Black 14,230

White 26,542

Hispanic 624

Other 1,753

Unknown 3,916

Unidentified 12,386

TOTAL 60,673

Race/Ethnicity Extended Evaluation Status

American Indian/Alaskan 9

Asian/Pacific Island 33

Black 785

White 1,217

Hispanic 28

Other 75

Unknown 377

Unidentified 1,413

TOTAL 3,937
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 17

Veterans in Active Case Statuses During Fiscal Year 2002 By Race/Ethnicity

Race/Ethnicity Independent Living Status

American Indian/Alaskan 18

Asian/Pacific Island 80

Black 401

White 1,000

Hispanic 13

Other 67

Unknown 1,049

Unidentified 3,089

TOTAL 5,717

Race/Ethnicity Rehabilitation to Employment

Status

American Indian/Alaskan 419

Asian/Pacific Island 935

Black 16,261

White 33,307

Hispanic 588

Other 1,757

Unknown 3,144

Unidentified 7,501

TOTAL 63,912

Race/Ethnicity Employment Status

American Indian/Alaskan 98

Asian/Pacific Island 239

Black 2,932

White 7,637

Hispanic 74

Other 310

Unknown 845

Unidentified 1,883

TOTAL 14,018

Grand Total Fiscal Year 2002 217,127
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 18

VETERANS ENDING THEIR PARTICIPATION IN A TRAINING PROGRAM 

The vocational rehabilitation program participants end their association with the program in one of three

ways: 

• Completing the program and obtaining employment; 

• Completing the program and achieving greater independence in living; or 

• Discontinuing pursuit of the rehabilitation objectives. 

The following table shows the veterans whose participation ended during Fiscal Year 2002, sorted by

termination reason.

Veterans Who Ended a Training Program

 During Fiscal Year 2002

Reason For Ending Program Number Percent

Employment 7,773 47.4%

Independent Living 2,421 14.8%

Discontinue1 6,219 37.9%

TOTAL 16,413 100%

Source: VR&C Program Management Reports (FY 2002), 

1

Individual who had developed plans of services and discontinued

REHABILITATED (STEP 5) 

Rehabilitated Status represents the achievement of the veteran's goal to be suitably employed or obtain

independence in daily living and is the positive outcome measure of the program. Each veteran is

provided follow-up assistance to assure that his/her status can be maintained. 

1. Participants with Serious Employment Handicaps Who Completed Their

Program

Participants who had a serious employment handicap and completed a program of vocational

rehabilitation during Fiscal Year 2002

. 

Veterans with a Serious Employment Handicap

 Who Completed Training During Fiscal Year 2002

Number Percent

Total Veterans 10,194 --

Total With Serious Employment Handicap 4,781 47%

Source: VR&E Program Management Reports (FY 2002)
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 19

2. Pre and Post Training Annual Earnings

(a) By Gender

The following table shows annual earnings of veterans, by gender, who completed their rehabilitation

program and gained employment.

Veterans Who Successfully Achieved Rehabilitation

Pre and Post Annual Earnings by Gender During Fiscal Year 2002

Gender Number

Rehabilitated

Average Annual

Earnings Prior

To Training

Total Annual

Earnings Prior

To Training

Average Annual

Earnings At

Rehabilitation

Total Annual

Earnings At

Rehabilitation

Male 8,453 $4,672 $39,492,416 $28,572 $241,519,116

Female 1,741 $4,085 $7,111,985 $25,690 $44,726,290

TOTAL 10,194 -- $46,604,401 -- $286,245,406

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse 1

This total does include 2,421 persons who entered into independent living and do not have earnings

Note: The table compares annual earnings before entering the program and after completing it and

finding employment. Both total annual earnings and average annual earnings for these veterans are

provided.

Veterans Who Have Successfully 

Achieved Rehabilitation (FY 1998 - FY 2002)

8,600

8,800

9,000

9,200

9,400

9,600

9,800

10,000

10,200

10,400

10,600

10,800

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Successfully

Rehabilitated
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 20

(b) By Occupation Type

The following table shows the distribution of average annual earnings before entering the program and

following rehabilitation, by occupational categories.

Veterans Who Successfully Achieved Rehabilitation

Pre and Post Annual Earnings

by Occupational Category During Fiscal Year 2002

Occupational

Category

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

5,715 $5,638 $32,219,913 $31,120 $177,851,086 452%

Clerical 563 $4,754 $2,676,609 $24,191 $13,619,696 409%

Sales 163 $5,823 $949,213 $27,140 $4,423,765 366%

Services 397 $4,774 $1,895,357 $23,923 $9,497,447 401%

Agricultural,

Fishery and

Forestry

39 $2,314 $90,240 $21,896 $853,932 846%

Processing

(Butcher, Meat

Processor, etc.)

16 $5,599 $89,580 $28,851 $461,616 415%

Machine Trades 249 $5,072 $1,262,908 $27,352 $6,810,648 439%

Bench Work 83 $6,247 $518,503 $23,865 $1,980,795 282%

Structural

(Building Trades) 256 $5,295 $1,355,502 $28,855 $7,386,880 445%

Miscellaneous 292 $3,854 $1,125,313 $22,765 $6,647,380 491%

TOTAL 7,773 $4,937 $42,183,137 $25,996 $229,533,244 444%

Source: VR&E Program Management Reports (FY 2002)

1

Total does not include 2,421 persons who went to independent living and do not have earnings

Note: The distribution of participants by gender is shown for each type of training. A subsistence

allowance is paid to participants for some or all of the time they are in the training program.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 21

3. Demographic Characteristics of Participants Who Successfully Completed

Training

(a) By Gender

 Veterans Who Successfully Achieved

 Rehabilitation by Gender During Fiscal Year 2002

Female Male Total

Number 1,741 8,453 10,194

Percent 17.1% 82.9% 100.0%

Source: VR&E Program Management Reports (FY 2002),

Benefits Delivery Network - Data Warehouse

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002

Prior and Post Earnings of Veterans Who Have Been 

Successfully Rehabilitated

Prior Earnings

Post Earnings
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 22

(b) By Age 

Veterans Who Successfully Achieved Rehabilitation

by Age During Fiscal Year 2002

Age

17 - 21

Age

22 - 29

Age

30 - 39

Age

40 - 49

Age

50 - 59

Age

60 >

Total For

All Ages

Number 1 892 2,786 3,293 2,477 745 10,194

Percent 0.0% 8.8% 27.3% 32.3% 24.3% 7.3% 100.0%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

FY

1998

FY

1999

FY

2000

FY

2001

FY

2002

Veterans Who Participated Versus Veterans Who Successfully Achieved 

Rehabilitation by Gender 

(FY 1998 - 2002)

Females Rehabilitated

Males Rehabilitated

Females Participating

Males Participating
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 23

(c) By Prior Education Level

Veterans Who Successfully Achieved Rehabilitation

by Prior Education Level During Fiscal Year 2002

Less Than

High School High School PostHigh School

Four Year

College

Degree

Graduate

Training Total

Number 148 5,185 3,563 870 428 10,194

Percent 1.5% 50.9% 35.0% 8.5% 4.2% 100.0%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse

(d) By Dependency Status 

Veterans Who Successfully Achieved Rehabilitation

by Dependency Status During Fiscal Year 2002

Single Single With

Children Married Married WithChildren

Dependent

Parent(s) Total1

Number 1,722 895 1,735 3,825 13 8,190

Percent 21.0% 10.9% 21.2% 46.7% 0.2% 100.0%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery Network - Data Warehouse 1

 Does not include 2,004 veterans whose dependency status is unknown.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 24

(e) By Branch of Service

The following table shows the distribution of Veterans who have successfully achieved rehabilitation by

branch-of-service. 

Note: Consistent with requirements established in Title 38, U.S. Code of Federal Regulations, Section

101, service in the National Oceanic and Atmospheric Administration (NOAA) and the Public Health

Service qualify persons for vocational rehabilitation programs. 

Veterans Who Successfully Achieved Rehabilitation

by Branch of Service During Fiscal Year 2002

Army Navy Air Force Marine

Corps

Coast

Guard Other1 Total

Number 4,644 2,230 1,875 1,178 141 126 10,194

Percent 45.6% 21.9% 18.4% 11.6% 1.4% 1.2% 100.0%

Source: VR&E Program Management Reports (FY 2002) - Benefits Delivery Network - Data Warehouse 1

 Other includes 2 from National Oceanic and Atmospheric Administration

Veterans Who Successfully Achieved Rehabilitation by Branch 

of Service FY 2002

46%

22%

18%

12%

1%1%

Army

Navy

Air Force

Marine Corps

Coast Guard

Other
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 25

(f) By Length of Service 

Length of time in service among veterans who completed rehabilitation programs.

Veterans Who Successfully Achieved Rehabilitation

by Length of Service During Fiscal Year 2002

Length of Service Number Percent

3 Months or Less 42 0.4%

3 to 6 Months 90 0.9%

6 Months to 2 Years 1,217 12.0%

2 to 4 Years 2,524 24.9%

4 to 10 Years 2,685 26.4%

10 to 15 Years 955 9.4%

15 to 20 Years 799 7.9%

20 to 30 Years 1,796 17.7%

Over 30 Years 45 0.4%

TOTAL1 10,153 100%

Source: VR&E Program Management Reports (FY 2002), Benefits Delivery

Network. Data Warehouse

1

 Does not include 41 veterans whose length of service is unknown.

(g) By Period of Service 

Veterans service periods among those who completed rehabilitation programs.

Veterans Who Successfully Achieved Rehabilitation

by Length of Service During Fiscal Year 2002

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 98 12 88 127 1,548 1,886 6,435 10,194

Percent 1.0% 0.1% 0.9% 1.2% 15.2% 18.5% 63.1% 100%

Source: VR&E Program Management Reports (FY 2002) - Benefits Delivery Network - Data Warehouse 1

 These three periods are generally combined into "Peacetime" service in other sections of this report.
Chapter 6 Vocational Rehabilitation & Employment

Page 6 - 26

Interrupted: While not a step toward the goal of rehabilitation, another status, “Interrupted”, exists for a

veteran that must postpone active participation in his or her rehabilitation program in order to resolve a

pressing need that is usually related to a disabling condition. During this step, the case manager

continues to provide counseling and other assistance to the veteran and his/her family to address and

resolve the issue; thereby allowing the veteran to return to active participation in the program. 
 Appendices

APPENDICES
Appendix A VBA Regional Office Mailing Addresses

Page A - 1

VBA REGIONAL OFFICE MAILING ADDRESSES

ALABAMA

VA Regional Office

345 Perry Hill Road

Montgomery, AL 36109-3798

ALASKA

VA Outpatient Clinic and Regional Office

2925 Debarr Road

Anchorage, AK 99508-2989

ARIZONA

VA Regional Office

3225 North Central Avenue

Phoenix, AZ 85012-2405 

ARKANSAS

VA Regional Office

P.O. Box 1280

North Little Rock, AR 72115-1280 

CALIFORNIA

VA Regional Office

Federal Building

11000 Wilshire Blvd.

Los Angeles, CA 90024-3602 

CALIFORNIA

VA Regional Office

Oakland Federal Building

1301 Clay Street - Suite 1300N

Oakland, CA 94612-5209 

CALIFORNIA

VA Regional Office

8810 Rio San Diego Drive

San Diego, CA 92108-1508

COLORADO

VA Regional Office

P.O. Box 25126

Denver, CO 80225-0126

CONNECTICUT

VA Regional Office

450 Main Street

Hartford, CT 06103-3077

DELAWARE

VA Medical and Regional Office Center

1601 Kirkwood Highway

Wilmington, DE 19805-4988

DISTRICT OF COLUMBIA

VA Regional Office

1722 Eye Street, NW

Washington, DC 20421-1111

FLORIDA

VA Regional Office

P.O. 1437

St. Petersburg, FL 33731-1437

GEORGIA

VA Regional Office

1700 Clairmont Rd.

Decatur, GA 30333-4032 

HAWAII

VA Medical and Regional Office Center

459 Patterson Road

Honolulu, HI 96819-1522

IDAHO

VA Regional Office

805 W. Franklin Street

Boise, ID 83702-5560

ILLINOIS

VA Regional Office

536 S. Clark Street

Chicago, IL 60605-1523 
Appendix A VBA Regional Office Mailing Addresses

Page A - 2

INDIANA

VA Regional Office

575 North Pennsylvania Street

Indianapolis, IN 46204-1526

IOWA

VA Regional Office

210 Walnut Street - Room 1063

Des Moines, IA 50309-9825

KANSAS

VA Medical and Regional Office Center

5500 E. Kellogg

Wichita, KS 67218-1698

KENTUCKY

VA Regional Office

545 S. 3rd Street

Louisville, KY 40202-3835

LOUISIANA

VA Regional Office

701 Loyola Avenue - Room 4210

New Orleans, LA 70113-1912

MAINE

VA Medical and Regional Office Center

1 VA Center

Bldg. 248, Room 103

Togus, ME 04330-6795 

MARYLAND

VA Regional Office

Federal Building

31 Hopkins Plaza - Room 233

Baltimore, MD 21201-0001 

MASSACHUSETTS

VA Regional Office

John F. Kennedy Building

Government Center - Room 1265

Boston, MA 02203-0393

MICHIGAN

VA Regional Office

Patrick V. McNamara Federal Bldg.

477 Michigan Avenue - Room 1400

Detroit, MI 48226-2591 

MINNESOTA

VA Regional Office

One Federal Drive

St. Paul, MN 55111-4050 

MISSISSIPPI

VA Regional Office

1600 East Woodrow Wilson Avenue

Jackson, MS 39216-5102

MISSOURI

VA Regional Office

400 South 18th Street

St. Louis, MO 63103-2676

MONTANA

VA Medical and Regional Office Center

Williams Street

Fort Harrison, MT 59636-9999

NEBRASKA

VA Regional Office

5631 S. 48th Street

Lincoln, NE 68516-4198

NEVADA

VA Regional Office

1201 Terminal Way

Reno, NV 89520-0118

NEW HAMPSHIRE

VA Regional Office

Norris Cotton Federal Bldg.

275 Chestnut Street

Manchester, NH 03101-2489
Appendix A VBA Regional Office Mailing Addresses

Page A - 3

NEW JERSEY

VA Regional Office

20 Washington Place

Newark, NJ 07102-3174

NEW MEXICO

VA Regional Office

Dennis Chavez Federal Bldg.

500 Gold Avenue, SW

Albuquerque, NM 87102-3118

NEW YORK

VA Regional Office Federal Building

111 West Huron Street

Buffalo, NY 14202-2368

NEW YORK

VA Regional Office

245 W. Houston Street

New York, NY 10014-4805

NORTH CAROLINA

VA Regional Office Federal Building

251 North Main Street

Winston-Salem, NC 27155-1000

NORTH DAKOTA

VA Medical and Regional Office Center

2101 Elm Street

Fargo, ND 58102-2417

OHIO

VA Regional Office

Anthony J. Celebreeze Federal Building

1240 East Ninth Street

Cleveland, OH 44199-2002

OKLAHOMA

VA Regional Office Federal Building

125 South Main Street

Muskogee, OK 74401-7025

OREGON

VA Regional Office

Federal Building

1220 Southwest 3rd Avenue Room 1217

Portland, OR 97204-2825

PENNSYLVANIA

VA Regional Office and Insurance Center

P.O. Box 8079

Philadelphia, PA 19101-8079

PENNSYLVANIA

VA Regional Office

1000 Liberty Avenue

Pittsburgh, PA 15222-4004

PHILIPPINES

U.S. Department of Veterans Affairs

FPO AP 96515-1110

Manila, PI 1000

PUERTO RICO

VA Regional Office

P.O. Box 364867

San Juan, PR 00936-4867

RHODE ISLAND

VA Regional Office

380 Westminster Mall

Providence, RI 02903-3246

SOUTH CAROLINA

VA Regional Office

1801 Assembly Street

Columbia, SC 29201-2495

SOUTH DAKOTA

VA Medical and Regional Office Center

P.O. Box 504

Sioux Falls, SD 57117-5046
Appendix A VBA Regional Office Mailing Addresses

Page A - 4

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

WYOMING1

2360 E. Pershing Blvd.

Cheyenne, WY 82001

 

1 The Denver Regional Office serves the state of Wyoming. The local address provided is for the Benefits Office.
Appendix B Contacting VA by Telephone

B - 1

CONTACTING VA BY TELEPHONE

General Benefits

Disability Compensation, Pension, Vocational

Rehabilitation, and Home Loans

1-800-827-1000 *

Education and Training 1-888-GI BILL 1 * 

(1-888-442-4551)

Burial Headstones, and Markers 1-800-697-6947 *

VA Life Insurance 1-800-669-8477 *

Healthcare Benefits

Veterans Healthcare 1-800-827-1000 *

Veterans Healthcare in Canada 1-613-943-0824

Veterans Healthcare in Philippines 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 *

Gulf War Hotline 1-800-PGW-VETS*

Annual Benefits Report Questions – Please Contact:

Compensation and Pension 1-202-273-7203

Education 1-202-273-7187

Insurance 1-215-381-3290

Loan Guaranty 1-202-273-7330

Vocational Rehabilitation & Employment 1-202-273-7187

* Indicates toll-free numbers
 Glossary

Page C - 1

WEB SITES

Web sites where additional information may be obtained about VA.

VA WEB SITES

VA Home Page – Department of Veterans Affairs http://www.va.gov/

Board of Veterans Appeals http://www.va.gov/vbs/bva/index.htm

Health Benefits and Services http://www.va.gov/vbs/health/index.htm

Homeless Program Web Page http://www.va.gov/health/homeless/

VA Hot Topics http://www.va.gov/hottopic/index.htm

National Cemetery Administration Home Page http://www.cem.va.gov/

Public Affairs and Special Events http://www.va.gov/opa/index.htm

VA’s Office of Congressional Affairs Home Page http://www.va.gov/oca/index.htm

VA What’s New http://www.va.gov/whatsnew/index.htm

Center for Minority Veterans http://www.va.gov/minority/index.htm

Center for Women Veterans http://www.va.gov/womenvet/

VETERANS BENEFITS ADMINISTRATION

WEB SITE

Veterans Benefits Administration http://www.vba.va.gov/

VBA Forms Page http://www.vba.va.gov/pubs/forms1.htm

VA Online Benefits Application http://www.vabenefits.vba.va.gov/vonapp/main.asp

Compensation and Pension Benefits Home Page http://www.vba.va.gov/bln/21/index.htm

Education Benefits Home Page http://www.gibill.va.gov/

Home Loan Guaranty Service Home Page http://www.homeloans.va.gov/

Vocational Rehabilitation and Employment

Services

http://www.vba.va.gov/bln/vre/index.htm

Life Insurance Program Home Page http://www.insurance.va.gov/

WHITE HOUSE WEB SITE

White House http://www.whitehouse.gov/

CONGRESSIONAL WEB SITES

Senate http://www.senate.gov/

Senate Committee on Veterans Affairs http://www.senate.gov/~veterans/

House of Representatives http://www.house.gov/

House Committee on Veterans Affairs http://veterans.house.gov/

OTHER IMPORTANT WEB SITES

The U. S. Government's Official Web Portal http://firstgov.gov/
 Glossary

G - 1

GLOSSARY1

Aid and Attendance – An additional monetary allowance payable to individuals who are found

to be:

• In a nursing home or

• In need of daily care to help with feeding, dressing, or keeping clean.

Benefits Delivery Network – (BDN) One of the current VBA computer systems used to collect

and store statistical data on veterans and their families.

Body Systems – Title 38, Code of Federal Regulations, Part 4, classifies the various areas of

the body into fifteen (15) different systems. They are as follows: 

Musculoskeletal (muscles and bones) Eye

Ear Infectious diseases

Respiratory Cardiovascular

Digestive Genitourinary

Gynecological Skin

Hemic and lymphatic (blood and lymph systems) Neurological

Endocrine Dental

Mental

Buyer Status – A first-time homeowner or previous homeowner.

Cash Surrender - A policyholder, upon request, receives the cash value that has accrued in

his/her life insurance policy, and in return surrenders all right, title, and interest to his/her basic

and/or paid-up additional insurance coverage amounts.

Chapter 31 Benefits – Vocational Rehabilitation and Employment Services (VR&E ) program

to provide benefits and services to veterans whose service-connected disabilities prohibit them

from obtaining and/or maintaining employment.

Combined Degree – The combined degree of disability is expressed as a percentage (from

zero to 100 in increments of 10) and represents the overall disabling effect of all serviceconnected disabilities on a veteran.

Compensable Zeros – A number of disabilities that although independently evaluated zero

percent produce an employment handicap to warrant a 10 percent combined disability

evaluation. This evaluation entitles the veteran to receive disability compensation payments.

 

1 Definitions were compiled through the joint efforts of the business lines: Compensation and Pension, Education, Insurance, Loan Guaranty

and Vocational Rehabilitation and Employment.
 Glossary

G - 2

Computer Systems – VBA derives statistical data about veterans from multiple sources and

from various computer systems: e.g. VBA’s Data Warehouse, Operational Data Store and

Veterans Information System, VBA’S Benefits Delivery Network (BDN), the Beneficiary

Identification and Records Locator System (BIRLS); and the Board of Veterans’ Appeals

Control Locator System (VACOLS).

Dependents’ Educational Assistance (DEA) – Refers to Dependents’ Educational

Assistance Program (Chapter 35 of the Title 38, U.S. Code). See Survivors’ and Dependents

Educational Assistance.

Dependency Indemnity Compensation (DIC) – A monetary death benefit payable to

surviving spouses, children, and/or dependent parents of the following: 

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

willful misconduct; 

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

• Veterans who die from a nonservice-connected disability but who were continuously rated

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

preceding death (or at least five years from the date of discharge to the date of death)2

;

and,

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

rated 100 percent for service-connected disabilities for a period of not less than one year

immediately preceding death.

Dependents – Qualifying dependents for VA benefit purposes are a veteran’s spouse and

child (natural child, adopted child, or stepchild). A veteran’s mother or father may also be

considered a dependent generally if there is financial need and he or she is otherwise entitled.

Diagnostic Codes – VBA uses codes of four or eight digit numeric characters to signify

specific medical conditions. These numeric codes are in Title 38, Code of Federal

Regulations, Part 4.

Direct Loan - A loan made by the Department of Veterans Affairs directly to veterans. This is

distinct from guaranteed loans, which are made by private lenders and guaranteed by VA.

Direct Loans to Native American Veterans – Direct loans to Native Americans.

Disability Compensation – A monetary benefit paid to veterans for service-connected

disability.

Disability Pension – A monetary benefit paid to wartime veterans who are age 65 or older, or

permanently and totally disabled as the result of a nonservice-connected disability. In either

case, the veteran’s annual income must not exceed the limit set by statute in order to qualify

for this benefit.

 

2 38 U.S.C. 1318
 Glossary

G - 3

Dividend - A payment to policyholders in participating life insurance programs. It is an

allocation of program surplus funds representing the return of premiums not needed to pay

claims and expenses, and a distribution of earnings from investment. Dividends are issued

annually on the policy anniversary date.

DMDC – The Defense Manpower Data Center maintains the largest archive of personnel,

manpower, training and financial data in the Department of Defense (DoD).

Down-payment Option – The VA home loan guaranty program allows the veteran to enter the

home-buying market with the option of providing no down-payment. This option is intended to

help the veteran afford the purchase of a suitable home.

Educational Assistance - The monetary benefits received by a veteran or eligible person.

This term is generally used interchangeably with the term “education benefits”, however, under

the Montgomery GI Bill Active Duty, this term refers to basic educational assistance,

supplemental educational assistance, and all additional amounts payable, commonly called

“kickers”.

Eligibility - Most VA benefits require that the veteran be discharged from active military

service under any condition other than dishonorable. In addition to this general requirement,

there are specific statutory and regulator requirements for each of the five benefits programs;

some of these requirements are described in the sections of this report dealing with the

respective benefit programs.

Entitlement (EDU) – The number of months the student is eligible for VA education benefits.

This is usually expressed in the number of months and days the student will be eligible for fulltime benefits, or the equivalent in part-time training, but also may be expressed in a dollar

amount. Entitlement may vary depending on the education program the individual qualifies

under. In no event will entitlement exceed 48 months under any combination of laws.

Entitlement (C&P) - Once basic eligibility requirements have been met, decisions on

entitlement for the respective C&P benefits are based on statutory and regulatory requirements

and the evidence of record that documents the meeting of these requirements. 

Estimate of Compensation Program Liability – The estimated liability for the compensation

program is based on the present value of expected future compensation benefit payments for:

a. all veterans receiving benefits under current programs;

b. all survivors currently receiving benefits under these programs;

c. all future survivors of veterans currently receiving benefits;

d. all existing veterans not receiving benefit payment, but who are expected to in the

future;

e. all future survivors of existing veterans not currently receiving benefits payments but

who are expected to in the future; and veterans currently in active military service

who will become veterans in the future, and their survivors; and,

f. veterans currently in active military service who will become veterans in the future,

and their survivors.
 Glossary

G - 4

Evaluation for Entitlement for a Program of Rehabilitation Services – The process used to

determine whether the veteran’s disabilities cause an employment handicap; and/or if such a

handicap exists, the course of rehabilitation and feasibility in obtaining the vocational goals.

Face Value - That 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.

First Time Homeowner – A veteran using his home loan entitlement to purchase a home for

the first time.

Fiscal Year – A period for settling accounts; a 12 month period at the end of which all

accounts are completed in order to furnish a statement of financial condition. A Fiscal Year

does not necessarily correspond to a calendar year.

Fiscal Year 2002 – Began October 1, 2001 and ended September 30, 2002. The Department

of Veterans Affairs operates under this budgetary schedule.

Forecasting of Program Liabilities (Future Liabilities) – Future liabilities are payments that

the government is obligated to deliver in future years. This is much like the obligation of a life

insurance company to pay the face amount of a standard policy to beneficiaries at the time of

the insured person’s death.

Funding Fee – A fee, required by law, charged to veterans who obtain a VA guaranteed home

loan.

FSGLI - Family Servicemembers' Group Life Insurance was established in 2001 to provide

servicemembers who have Servicemembers' Group Life Insurance (SGLI) coverage the

opportunity to have life insurance coverage on their spouses and dependant children.

Guaranteed Loan – This is a loan that is federally backed by the VA home loan provision.

Housebound – An additional monetary allowance payable to those individuals who are

confined to their home as a result of a permanent disability.

Kickers (EDU) – For education benefits , these are amounts contributed by DOD to an

education fund on behalf of participants to encourage enlistment or retention in the Armed

Forces. (The military services may use different terms such as "Army College Fund" or "Navy

College Fund", etc.) These amounts are added to any other education benefits to which the

person may be entitled. Kickers are applicable only to MGIB, MGIB-SR, and VEAP. 

Loan - An amount borrowed against the cash value of a permanent plan life insurance policy.

Loan Defaulted-Guaranty Claim Paid – A term used by loan guaranty where the borrower

defaults on the loan and the VA pays the loan guaranty claim.
 Glossary

G - 5

Loan Guaranty Program – The benefit program whereby VA guarantees a portion of a loan to

lenders to facilitate veterans obtaining a home.

Matured Endowment - The face amount of insurance less any indebtedness that is paid to

the insured based on the plan of insurance. The proceeds may be paid as a lump sum or the

insured may request installment payments.

MGIB – Montgomery GI Bill, Educational Benefits – Refers to the Montgomery GI Bill-Active

Duty Educational Assistance Program (Chapter 30 of Title 38, U.S. Code) which provides

educational assistance to persons who served on active duty in the Armed Forces.

MGIB-SR – Montgomery GI Bill- Selective Reserve – Refers to the Montgomery GI BillSelected Reserve Educational Assistance Program (Chapter 1606 of Title 10, U.S. Code)

which provides educational assistance to members of the Selected Reserve of the Ready

Reserve of any of the reserve components of the Armed Forces.

NSLI - National Service Life Insurance was established in 1940 to meet the insurance needs of

World War II veterans. The program closed in 1951.

Original Disability Claim (C&P) – A veteran’s first claim for disability benefits, either

compensation or pension or both. Any subsequent claim is categorized as a reopened or

supplemental claim.

Paid up Additions (PUA) – Established in 1972 for policyholders with participating policies to

use their annual dividends to purchase paid-up additional insurance. PUA is the only way

most policyholders may increase their insurance coverage amount.

Peacetime Veterans – Those veterans who served during a period of time not statutorily

defined as a period of war. 

Prisoner of War (POW) – Those veterans who were forcibly detained (confined) by an enemy,

foreign government or hostile force while serving in the active military, naval or air service.

Previous Homeowner – A person who has had a previous ownership interest in a home.

Protected Pension – The pension program, both disability and death, replaced by Section

306 Pension, which in turn was replaced by the current pension program under the provisions

of PL 95-588. Veterans and survivors receiving either Protected Pension or Section 306

Pension may continue to receive the benefits as long as they continue to meet the basic

entitlement requirements of the respective programs.

Purchase Loan – A loan made solely for the purpose for purchasing a home.
 Glossary

G - 6

Range of Disabilities – A disability is evaluated according to the VA Schedule for Rating

Disabilities in Title 38, Code of Federal Regulations, Part 4. Extent of disability is expressed

as a percentage from zero percent (for conditions that exist but are not disabling to a

compensable degree) to 100 percent, in increments of 10 percent. Most disabilities, however,

do not have every 10 percent increment from zero to 100.

Rating Board Automation Database (RBA) - This database contains information for veterans

based on the input of disability ratings by C&P field personnel using the RBA application. 

Rating Schedule – Part 4, Title 38, United States Code. 

Reservist (EDU)– A member of the Selected Reserve who is eligible for educational

assistance under Title 10 of the United States Code, Chapter 1606, and who is also a member

of a military reserve component.

Reservist (C&P) – A member of a reserve component of one of the armed forces and who has

potential entitlement to certain VA benefits by reason of his or her reserve status.

Restored Entitlement – Previously used entitlement may be restored when a property

secured by a VA loan is sold and the loan is paid in full or when an eligible veteran transferee

agrees to assume the outstanding balance on a VA loan and substitute his/her entitlement for

the same amount originally used on the loan.

SAS – A group of software programs used to transform statistical data into meaningful reports.

SDVI – Service-Disabled Veterans Insurance was established in 1951 to meet the insurance

needs of veterans with service-connected disabilities. SDVI is open to veterans separated

from the service on or after April 25, 1951, who receive a service-connected disability rating of

0 percent or greater. 

Secondary Market – The financial market where mortgages are bought and sold. 

Service-Connected – A disease or injury determined to have occurred in or was aggravated

during military service.

Serious Employment Handicap – A serious employment handicap is a significant

impairment, caused in part by a service-connected disability, in the veteran's ability to prepare

for, obtain, or retain employment consistent with his or her abilities, aptitudes, and interests.

Service member – An individual who is currently serving on active duty. This term is also

referred to as “service person”.

SGLI – Service Members Group Life Insurance was established in 1965 to meet the insurance

needs of service-members.
 Glossary

G - 7

Special Adaptive Housing Grants – A one-time grant to a seriously disabled veteran to

assist in adapting his or her home to accommodate the residence to the limitations caused by

the disability.

Subsistence Allowance – A monthly living allowance paid to a qualified veteran in a program

of vocational rehabilitation. The allowance is generally paid to those veterans who are enrolled

in education or training programs. The amount is based on training time and number of

dependents.

Survivors’ and Dependents’ Educational Assistance – This term refers to Chapter 35 of

Title 38, U.S. Code, a monetary educational benefit payable to eligible dependents and

survivors of veterans. It is often abbreviated simply as DEA (Dependent Educational

Assistance).

Title 38 United States Code – Code of Federal Regulations that pertain to Veterans Benefits.

Total and Permanent Disability Provision – A special rating status with a requirement that a

veteran, regardless of age, has a single disability rated 60 percent or a combined evaluation of

70 percent, with one disability ratable at 40 percent or higher.

Total Disability Income Provision - An option available with some insurance policies that

provides for monthly payments to policyholders who, prior to their 65th birthday, have incurred

a mental or physical disability which prevents them from performing substantially gainful

employment.

USGLI – United States Government Life Insurance was established in 1919 to meet the

insurance needs of World War I veterans. This program closed in 1940.

VEAP – Refers to the Veterans Educational Assistance Program (Chapter 32 of Title 38, U.S.

Code) and is a contributory educational assistance program for Post-Vietnam Era veterans.

Veteran - A person who served in the active military, naval, or air service, and who was

discharged or released under conditions other than dishonorable.

VGLI – Veterans Group Life Insurance was established in 1974 to meet the insurance needs

of veterans after separation from service.

VMLI – Veterans Mortgage Life Insurance was established in 1971 to provide mortgage

protection life insurance to severely disabled veterans who have received grants for the

purchase of specially adapted housing.

VR&E – Vocational Rehabilitation and Employment (VR&E) programs are available to help

service disabled veterans to become employable while achieving their independence.

VRI – Veterans’ Reopened Insurance was established in 1965 to provide insurance protection

for certain classes of disabled veterans from World War II and the Korean Conflict. The

program closed in 1966.
 Glossary

G - 8

VSLI – Veterans Special Life Insurance was established in 1951 to meet the insurance needs

of veterans who served during the Korean Conflict and post-Korean era. The program closed

in 1956.

Zero (0) Percent Disability – A zero percent disability rating means that a disability exists and

is related to the veteran’s service but is not so disabling that it entitles the veteran to

compensation payments. Also called a non-compensable disability.
U.S. DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

810 Vermont Avenue, NW

Washington, DC 20420

Internet Homepage: http://www.vba.va.gov

You may obtain additional copies of this report by calling the Performance Analysis and Integrity Office at (202) 273-6811.

You may also access this report though our VBA Internet Homepage.