Veterans and Survivors Pension Adjustment Act
PL 93-527 (S.4040), enacted 12/21/1974

1702 
PUBLIC LAW 93-527-DEC. 21, 1974 
[88 STAT. 
TECHNICAL 
AMENDMENT 
SEC. 203. The table of sections for chapter 33 of title 44, United 
States Code, is amended by adding at the end thereof the following 
new items: 
"3315. Definitions. 
"8316. Establishment of Commission. 
"3317. Duties of Commission. 
"3318. Membership. 
"3319. Director and stafE; experts and consultants. 
"3320. Powers of Commission. 
"3321. Support services. 
"3322. Report. 
"3323. Termination. 
"3324. Authorization of appropriations.". 
Approved December 19, 1974. 
Public Law 93-527 
December21, 1974 
[S.4040] 
Veterans and 
Survivors Pen-
sion Adjustment 
Act of 1974. 
38 u s e 521 
note. 
Unmarried vet-
Veterans with 
dependents. 
AN ACT 
To amend title 38 of the United States Code to liberalize the provisions relating 
to payment of disability and death pension and dependency and indemnity 
compensation, to increase income limitations, and for other purposes. 
Be it enacted hy the Senate and House of Repi-esentatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Veterans and Survivors Pension Adjustment Act of 
1974". 
SEC. 2. Section 521 of title 38, United States Code, is amended as 
follows: 
(1) by amending subsection (b) to read as follows: 
"(b) If the veteran is unmarried (or married but not living with and 
not reasonably contributing to the support of his spouse) and has no 
child, pension shall be paid according to the following formula: If 
annual income is $300 or less, the monthly rate of pension shall be 
$160. For each $1 of annual income in excess of $300 up to and includ-
ing $500, the monthly rate shall be reduced 3 cents; for each $1 
.annual income in excess of $500 up to and including $900, the monthly 
rate shall be reduced 4 cents; for each $1 of annual income in excess 
of $900 up to and including $1,500, the monthly rate shall be reduced 
5 cents; for each $1 of annual income in excess of $1,500 up to and 
including $1,900, the monthly rate shall be reduced 6 cents; for each 
$1 of annual income in excess of $1,900 up to and including $2,300, the 
monthly rate shall be reduced 7 cents; and for each $1 of annual income 
in excess of $2,300 up to and including $3,000, the monthly rate shall 
be reduced 8 cents; but in no event shall the monthly rate of pension 
be less than $5. No pension shall be paid if annual income exceeds 
$3,000."; 
(2) by amending subsection (c) to read as follows: 
"(c) If the veteran is married and living with or reasonably con-
tributing to the support of his spouse, or has a child or children, 
pension shall be paid according to the following formula: If annual 
income is $500 or less, the monthly rate of pension shall be $172 for 
a veteran and one dependent, $177 for a veteran and two dependents, 
and $182 for three or more dependents. For each $1 of annual income 
in excess of $500 up to and including $700, the monthly rate shall be 
reduced 2 cents; for each $1 of annual income in excess of $700 up to 
88 STAT. ] 
PUBLIC LAW 93-527-DEC. 21, 1974 
1703 
and iiicliuling $1,800, the monthly rate sliall be reduced 8 cents; for 
each $1 of annual income in excess of $1,800 u}) to and includino-$8,000. 
the monthly rate shall be reduced 4 cents; for each $1 of annual 
income in excess of $3,000 up to and including $3,500, the monthly rate 
shall be reduced 5 cents; for each $1 of annual income in excess of 
$3,500 up to and including $3,800. the monthly i-ate shall be reduced 
() cents; for each $1 of annual income in excess of $3,800 up to and 
including $4,000. the monthly rate shall be reduced 7 cents; and for 
each $1 of annual income in excess of $4,000 up to and including 
$4,200. the monthly rate shall be reduced 8 cents. No pension shall be 
paid if annual income exceeds $4,200."'; 
(3) by amending subsection (d) by sti-iking out ""$110" and 
inserting in lieu thereof "$123"; and 
(4) by amending subsection (e) by sti'iking out "'$44'' and 
inserting in lieu thereof "$49'\ 
SPX-. 3. Section 541 of title 38, Ignited States ('ode. is amended as 
*/f°^^ ^^^^ "° 
,. ,, 
children. 
tolloAvs: 
(1) by amending subsection (b) to read as follows: 
"(b) If there is no child, pension shall be paid according to the fol-
lowing formula : If annual income is $300 or less, the monthly rate of 
pension shall be $108. For each $1 of annual income in excess of $300 
up to and including $600. the monthly rate shall be reduced 1 cent; for 
each $1 of annual income in excess of $600 up to and including $900, 
the monthly rate shall be reduced 3 cents; for each $1 of annual 
income in excess of $900 up to and including $2,100, the monthly rate 
shall be reduced 4 cents; and for each $1 of annual income in excess 
of $2,100 up to and including $^),000, the monthly rate shall be reduced 
5 cents; but in no event shall the monthly rate of pension be less than 
$5. No pension shall be paid if annual income exceeds $3,000."; 
(2) by amending subsection (c) to read as follows: 
"(c) If there is a widow and one child, pension shall be paid accord- 
widows with 
ing to the following formula: If annual income is $700 or less, the °"^ ''^'^''* 
monthly rate of pension shall be $128. For each $1 ojf annual income 
in excess of $700 up to and including $1,100, the monthly rate shall 
be reduced 1 cent; for each $1 of annual income in excess of $1,100 
up to and including $2,100, the monthly rate shall be reduced 2 cents; 
for each $1 of annual income in excess of $2,100 up to and including 
$3,000, the monthly rate shall be reduced 3 cents; and for each $1 of 
annual income in excess of $3,000 up to and including $4,200, the 
monthly rate shall be reduced 4 cents. Whenever the monthly rate pay-
able to the widow under the foregoing formula is less than the amount 
which would be payable to the child under section 542 of this title if 
the widoM^ were not entitled, the widow will be paid at the child's rate. 
No pension shall be paid if the annual income exceeds $4,200."; 
(3) by amendin<r subsection (cl) by striking out "$18" and 
inserting in lieu thereof "$20"; and 
(4) by adding at the end thereof the following new subsection: 
"(f) As used in this section and section 542 of this title, the term 
"Veterans." 
'veteran' includes a person who has completed at least two years of 
honorable active military, naval, or air service, as certified by the Sec-
retary concerned, but whose death in such service Avas not in line of 
duty.". 
SEC. 4. Section 542 of title 38, United States Code, is amended as 
children. 
follows: 
Annual income 
limitations, in-
crease, 
3 8 u s e 5-21 
note, 
3 8 u s e 521 
note. 
1704 
PUBLIC LAW 93-527-DEC. 21, 1974 
[88 STAT. 
(1) by amending subsection (a) by striking out "$44" and 
"$18" arid inserting in lieu thereof "$49" "$20", respectively; and 
(2) by amending subsection (c) by striking out "$2,000" and 
inserting in lieu thereof "$2,400". 
SEC. 5. Section 544 of title 38, United States Code, is amended by 
striking out "$55" and inserting in lieu thereof "$64". 
SEC. 6. Section 4 of Public Law 90-275 (82 Stat. 68) is amended to 
read as follows: 
"SEC. 4. The annual income limitations governing payment of pen-
sion iinder the first sentence of section 9(b) of the Veterans' Pension 
Act of 1959 hereafter shall be $2,600 and $3,900, instead of $2,200 and 
$3,500, respectively.". 
One parent. 
g^^ ^^ Sectiou 415 of title 38, United States Code, is amended as 
follows: 
(1) by amending subsection (b) to read as follows: 
"(b) (1) Except as provided in paragraph (2) of this subsection, if 
there is only one parent, dependency and indemnity compensation 
shall be paid to him according to the following formula: If annual 
income is $800 or less, the monthly rate of dependency and indemnity 
compensation shall be $123. For each $1 of annual income in excess of 
$800 up to and including $1,000, the monthly rate shall be reduced 3 
cents; for each $1 of annual income in excess of $1,000 up to and 
including $1,300, the monthly rate shall be reduced 4 cents; for each 
$1 of annual income in excess of $1,300 up to and including $1,600, 
the monthly rate shall be reduced 5 cents; for each $1 of annual income 
in excess of $1,600 up to and including $1,800, the monthly rate shall 
be reduced 6 cents; for each $1 of annual income in excess of $1,800 up 
to and including $2,000, the monthly rate shall be reduced 7 cents; and 
for each $1 annual income in excess of $2,000 up to and including $3,000, 
the monthly rate shall be reduced 8 cents; but in no event shall the 
monthly rate of dependency and indemnity compensation be less than 
$4. No dependency and indemnity compensation shall be paid if annual 
income exceeds $3,000. 
"(2) If there is only one parent and he has remarried and is living 
with his spouse, dependency and indemnity compensation shall be 
paid to him under either the formula of paragraph (1) of this sub-
section or under the formula in subsection (d), whichever is the 
greater. In such a case of remarriage the total combined annual income 
of the parent and his spouse shall be counted in determining the 
monthly rate of dependency and indemnity compensation under the 
appropriate formula."; 
(2) by amending subsection (c) to read as follows: 
Two parents, 
" ^(.^ Exccpt as provided in subsection (d), if there are two parents, 
but they are not living together, dependency and indemnity compen-
sation shall be paid to each according to the following formula: If 
the annual income of each parent is $800 or less, the monthly rate of 
dependency and indemnity payable to each shall be $86. For each $1 
of annual income in excess of $800 up to and including $1,100, the 
monthly rate shall be reduced 2 cents; for each $1 of annual income 
in excess of $1,100 up to and including $2,100, the monthly rate shall 
be reduced 4 cents; for each $1 of annual income in excess of $2,100 
up to and including $2,500, the monthly rate shall be reduced 5 cents; 
and for each $1 of annual income in excess of $2,500 up to and includ-
ing $3,000, the monthly rate shall be reduced 6 cents; but in no event 
shall the monthly rate of dependency and indemnity compensation be 
less than $4. No dependency and indemnity compensation shall be paid 
to a parent whose annual income exceeds $3,000."; 
88 STAT. ] 
PUBLIC LAW 93-527-DEC. 21, 1974 
1705 
(3) by amending subsection (d) to read as follows: 
"(d) If there are two parents who are living together, or if a parent 
has remarried and is living with his spouse, dependency and indem-
nity compensation shall be paid to each such parent according to the 
following formula: If the total combined annual income is $1,000 or 
less, the monthly rate of dependency and indemnity compensation 
payable to each parent shall be $83. For each $1 of annual income in 
excess of $1,000 up to and including $1,100, the monthly rate shall be 
reduced 1 cent; for each $1 of annual income in excess of $1,100 up 
to and including $2,500, the monthly rate shall be reduced 2 cents; 
for each $1 of annual income in excess of $2,500 up to and including 
$3,500, the monthly rate shall be reduced 3 cents; and for each $1 of 
annual income in excess of $3,500 up to and including $4,200, the 
monthly rate shall be reduced 4 cents; but in no event shall the monthly 
rate of dependency and indemnity compensation be less than $4. No 
dependency and indemnity compensation shall be paid to either parent 
if the total combined annual income exceeds $4,200."; and 
(4) by amending subsection (h) by striking out "$55" and 
inserting in lieu thereof "$64". 
SEC. 8. (a) The Administrator of Veterans' Affairs shall carry out ^^^l'^^^^^^''^^' 
an original study of the needs and problems of veterans and their widows? study. 
widows seventy-two years of age or older. The study shall include 
^^ use soi 
(1) a profile of the current income characteristics of such veterans "° ^' 
and their widows, describing the proportion and amount of income 
from all sources and the average necessary for all necessities such as 
rent, food, medical care, and other items; (2) an evaluation of the 
adequacy of the present veterans pension system to meet the needs 
of such veterans and widows; and (3) actuarial infoiniation con-
cerning the present expected mortality rates of such veterans and 
their widows. 
(b) The Administrator shall report to the Congress and the Presi- 
Report to 
dent not later than one hundred and eighty days after the convening p°e"sTdent.^"'^ 
of the first session of the Ninety-fourth Congress the results of the 
study carried out under this section together with any recommenda-
tions for legislative or administrative action to improve the present 
program of pension benefits for such veterans and widows. 
SEC. 9. (a) Subsection (e) of section 103 of title 38, United States 
Carried chii-
Code, is amended— 
^^'"' ^'"^''*^-
(1) by adding " (1)" immediately before "The"; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) The marriage of a child of a veteran shall not bar the recog-
nition of such child as the child of the veteran for benefit purposes if 
the marriage has been terminated by death or has been dissolved by a 
court with basic authority to render divorce decrees unless the Vet-
erans' Administration determines that the divorce was secured through 
fraud by either party or collusion.". 
(b) Subsection (1) of section 3010 of title 38, United States Code, ^.^J'^'J^' ^"^'^-
is amended to read as follows: 
^^^ ^ ^' 
"(1) The effective date of an award of benefits to a widow based 
upon a termination of a remarriage by death or divorce, or of an award 
or increase of benefits based on recognition of a child upon termina-
tion of the child's marriage by death or divorce, shall be the date of 
death or the date the judicial decree or divorce becomes final, if an 
application therefor is received within one year from such termina-
tion.". 
SEC. 10. This Act shall take effect on January 1,1975. 
38"usc''52f*^' 
Approved December 21, 1974. 
"ote.