[Federal Register Volume 66, Number 100 (Wednesday, May 23, 2001)]
[Notices]
[Pages 28598-28599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12973]


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DEPARTMENT OF VETERANS AFFAIRS


Adjustments for Service-Connected Benefits

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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SUMMARY: As required by the Veterans' Compensation Cost-of-Living 
Adjustment Act of 2000, Public Law 106-413, the Department of Veterans 
Affairs (VA) is hereby giving notice of adjustments in certain benefit 
rates. These adjustments affect the compensation and dependency and 
indemnity compensation (DIC) programs.

DATES: These adjustments are effective December 1, 2000, the date 
provided by Public Law 106-413.

FOR FURTHER INFORMATION CONTACT: Paul Trowbridge, Consultant, 
Compensation and Pension Service (212A), Veterans Benefit 
Administration, Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, (202) 273-7218.

SUPPLEMENTARY INFORMATION: Section 2 of Public Law 106-413 provides for 
an increase in each of the rates in sections 1114, 1115(1), 1162, 1311, 
1313, and 1314 of title 38, United States Code. VA is required to 
increase these benefit rates by the same percentage as increases in the 
benefit amounts payable under title II of the Social Security Act. In 
computing increased rates in the cited title 38 sections, fractions of 
a dollar are rounded down to the nearest dollar. The increased rates 
are required to be published in the Federal Register.
    The Social Security Administration has announced that there will be 
a 3.5 percent cost-of-living increase in Social Security benefits. 
Therefore, applying the same percentage, the following rates for VA 
compensation and DIC programs will be effective December 1, 2000:

                Disability Compensation (38 U.S.C. 1114)
------------------------------------------------------------------------
                                                                Monthly
               Disability Evaluation (percent)                    rate
------------------------------------------------------------------------
10...........................................................       $101
20...........................................................        194
30...........................................................        298
40...........................................................        427
50...........................................................        609
60...........................................................        769
70...........................................................        969
80...........................................................      1,125
90...........................................................      1,266
100..........................................................      2,107
------------------------------------------------------------------------


------------------------------------------------------------------------
    38 U.S.C. 1114(k) through (s)                 Monthly rate
------------------------------------------------------------------------
38 U.S.C. 1114(k)....................  $78; $2,621; $78; $3,677
38 U.S.C. 1114(l)....................  $2,621
38 U.S.C. 1114(m)....................  $2,891
38 U.S.C. 1114(n)....................  $3,290
38 U.S.C. 1114(o)....................  $3,677
38 U.S.C. 1114(p)....................  $3,677
38 U.S.C. 1114(r)....................  $1,578; $2,350
38 U.S.C. 1114(s)....................  $2,359
------------------------------------------------------------------------

    Additional Compensation for Dependents (38 U.S.C. 1115(1))

------------------------------------------------------------------------
            38 U.S.C. 1115 (1)                      Monthly Rate
------------------------------------------------------------------------
38 U.S.C. 1115(1)(A)......................  $121
38 U.S.C. 1115(1)(B)......................  $208; $63
38 U.S.C. 1115(1)(C)......................  $82; $63
38 U.S.C. 1115(1)(D)......................  $98
38 U.S.C. 1115(1)(E)......................  $229
38 U.S.C. 1115(1)(F)......................  $192
------------------------------------------------------------------------

    Clothing Allowance (38 U.S.C. 1162)--$565 per year.

               DIC to a Surviving Spouse (38 U.S.C. 1311)
------------------------------------------------------------------------
                                                                Monthly
                          Pay grade                               rate
------------------------------------------------------------------------
E-1..........................................................       $911
E-2..........................................................        911
E-3..........................................................        911
E-4..........................................................        911
E-5..........................................................        911
E-6..........................................................        911
E-7..........................................................        942
E-8..........................................................        995
E-9(1).......................................................      1,038
W-1..........................................................        962
W-2..........................................................      1,001
W-3..........................................................      1,031
W-4..........................................................      1,090
O-1..........................................................        962
O-2..........................................................        995
O-3..........................................................      1,063
O-4..........................................................      1,125
O-5..........................................................      1,239
O-6..........................................................      1,396
O-7..........................................................      1,509
O-8..........................................................      1,653
O-9..........................................................      1,771
O-10(2)......................................................      1,943
------------------------------------------------------------------------

    (1) If the veteran served as sergeant major of the Army, senior 
enlisted advisor of the Navy, chief master sergeant of the Air Force, 
sergeant major of the Marine Corps, or master chief petty officer of 
the Coast Guard, the surviving spouse's monthly rate is $1,119.
    (2) If the veteran served as Chairman or Vice Chairman of the Joint 
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, 
Chief of Staff of the Air Force, Commandant of the Marine Corps, or 
Commandant of the Coast Guard, the surviving spouse's monthly rate is 
$2,083.

        DIC to a Surviving Spouse (38 U.S.C. 1311(a) Through (d))
------------------------------------------------------------------------
                                                                Monthly
                38 U.S.C. 1311(a) through (d)                     rate
------------------------------------------------------------------------
38 U.S.C. 1311(a)(1).........................................       $911
38 U.S.C. 1311(a)(2).........................................        197
38 U.S.C. 1311(b)............................................        229
38 U.S.C. 1311(c)............................................        229
38 U.S.C. 1311(d)............................................        110
------------------------------------------------------------------------


                    DIC to Children (38 U.S.C. 1313)
------------------------------------------------------------------------
              38 U.S.C. 1313                        Monthly rate
------------------------------------------------------------------------
38 U.S.C. 1313(a)(1).....................  $386
38 U.S.C. 1313(a)(2).....................  $556
38 U.S.C. 1313(a)(3).....................  $723
38 U.S.C. 1313(a)(4).....................  $723; $140
------------------------------------------------------------------------


              Supplemental DIC to Children (38 U.S.C. 1314)
------------------------------------------------------------------------
                                                                Monthly
                        38 U.S.C. 1314                            rate
------------------------------------------------------------------------
38 U.S.C. 1314(a)............................................       $229
38 U.S.C. 1314(b)............................................       $386
38 U.S.C. 1314(c)............................................       $194
------------------------------------------------------------------------

    Section 304 of Public Law 106-419 replaces the previous 38 U.S.C. 
5503(b)(1)(A) estate limitation threshold of $1,500 for withholding of 
benefits, and $500 for resumption of benefits. The provision affects 
certain incompetent, hospitalized or institutionalized veterans who do 
not have a dependent spouse or child.
    The new estate value limit for withholding of benefits is increased 
to five times the 100 percent service-connected disability rate for a 
veteran who does not have dependents. The estate value amount at which 
benefits may be resumed is now one half of that rate. This new formula 
will cause the estate limitation threshold to change with each change 
to basic compensation rates.
    As a result, and effective November 1, 2000, the estate limitation 
threshold is increased to $10,180 for withholding of benefits, and 
$5,090 for resumption of benefits. This is based on compensation

[[Page 28599]]

rates in effect at the time of passage of Public Law 106-419.
    Also, effective December 1, 2000, the estate limitation threshold 
is increased to $10,535 for withholding of benefits, and $5,267.50 for 
resumption of benefits. This is based on the legislative increase to 
basic compensation rates effective December 1, 2000.
    VA will publish the current dollar amounts for withholding and 
resumption of benefits under 38 U.S.C. 5503(b)(1)(A) with the Federal 
Register notices for future legislative adjustments.

    Dated: May 16, 2001.
Anthony J. Principi,
Secretary of Veterans Affairs.
[FR Doc. 01-12973 Filed 5-22-01; 8:45 am]
BILLING CODE 8320-01-U