An Act to amend title 38, United States Code, to provide improvements in the pension program for certain veterans of a period of war with non-service-connected disabilities, for certain surviving spouses of veterans of a period of war, and for certain surviving children of veterans of a period of war, to increase the rates of dependency and indemnity compensation for surviving parents of certain veterans, to provide for automatic annual cost-of-living adjustments in the rates of pension and in the rates of parents' dependency and indemnity compensation, to prevent reductions in and terminations of pension and terminations of parents' dependency and indemnity compensation solely attributable to cost-of-living increases in social security benefits, and for other purposes.
PL 95-588 (H.R.10173), enacted 11/04/1978

PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2497 
Public Law 95-588 
95th Congress 
An Act 
To amend title 38, United States Code, to provide improvements in the pension 
program for certain veterans of a period of war with non-service-connected 
disabilities, for certain surviving spouses of veterans of a period of war, and 
for certain surviving children of veterans of a period of war, to increase the 
rates of dependency and indemnity compensation for surviving parents of 
certain veterans, to provide for automatic annual cost-of-living adjustments 
in the rates of pension and in the rates of parents' dependency and indemnity 
compensation, to prevent reductions in and terminations of pension and 
terminations of parents' dependency and indemnity compensation solely attrib-
utable to cost-of-living increases in social security benefits, and for other 
purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled, That this Act may 
be cited as the "Veterans' and Survivors' Pension Improvement Act 
of 1978". 
TITLE I—PENSION FOR VETERANS AND SURVIVORS 
DEFINITION OF "PERIOD OF W A R " 
SEC. 101. Section 501 of title 38, United States Code, is amended 
by adding at the end thereof the following new paragraph: 
"(4) The term 'period of war' means the Mexican border period. 
World War I, World War II, the Korean conflict, the Vietnam era, 
and the period beginning on the date of any future declaration of 
war by the Congress and ending on the date prescribed by Presi-
dential proclamation or concurrent resolution of the Congress.". 
INCOME EXCLUSIONS 
SEC. 102. (a) Subsection (a) of section 503 of title 38, United States 
Code, is amended by— 
(1) striking out clause (1); 
(2) redesignating clause (2) as clause (1); 
(3) redesignating clause (3) as clause (2) and striking out the 
comma and "and chapters 11 and 13 (except section 412(a)) of 
this title" in such clause; 
(4) striking out clauses (4), (5), and (6); 
(5) redesignating clause (7) as clause (3); 
(6) inserting after such clause the following new clause: 
" (4) amounts equal to amounts paid— 
"(A) by a veteran for the last illness and burial of such 
veteran's deceased spouse or child, or 
"(B) by the spouse of a living veteran or the surviving 
spouse of a deceased veteran for the last illness and burial of 
a child of such veteran;"; 
(7) redesignating clause (8) as clause (5); 
(8) striking out clause (9); 
(9) redesignating clause (10) as clause (6); 
(10) striking out clauses (11), (12), (13), and (14); 
(11) redesignating clause (15) as clause (7); 
Nov. 4, 1978 
[H.R. 10173] 
Veterans' and 
Survivors' 
Pension 
Improvement Act 
of 1978. 
38 u s e 101 note. 
92 STAT. 2498 
PUBLIC LAW 95-588—NOV. 4, 1978 
26 use 6012. 
26 use 143. 
26 use 2. 
Repeal. 
(12) striking out clauses (16) and (17); and 
(13) adding at the end of such subsection the following new 
clauses: 
"(8) amounts equal to amounts paid by a veteran, veterans' 
spouse, or surviving spouse or by or on behalf of a veteran's child 
for unreimbursed medical expenses, to the extent that such 
amounts exceed 5 per centum of the maximum annual rate of pen-
sion (including any amount of increased pension payable on 
account of family members but not including any amount of pen-
sion payable because a person is in need of regular aid and attend-
ance or because a person is permanently housebound) payable to 
such veteran, surviving spouse, or child; 
"(9) in the case of a veteran or surviving spouse pursuing a 
course of education or vocational rehabilitation or training, 
amounts equal to amounts paid by such veteran or surviving 
spouse for such course of education or vocational rehabilitation or 
training, including (A) amounts paid for tuition, fees, books, and 
materials, and (B) in the case of such a veteran or surviving 
spouse in need of regular aid and attendance, unreimbursed 
amounts paid for unusual transportation expenses in connection 
with the pursuit of such course of education or vocational rehabil-
itation or training, to the extent that such amounts exceed the rea-
sonable expenses which would have been incurred by a nondisabled 
person using an appropriate means of transportation (public 
transportation, if reasonably available); and 
"(10) in the case of a child, any current-work income received 
during the year, to the extent that the total amount of such income 
does not exceed an amount equal to the sum of— 
"(A) the lowest amount of gross income for which an 
income tax return is required under section 6012(a) of the 
Internal Revenue Code of 1954, to be filed by an individual 
who is not married (as determined under section 143 of such 
Code), is not a surviving spouse (as defined in section 2(a) 
of such Code), and is not a head of household (as defined in 
section 2 (b) of such Code); and 
"(B) if the child is pursuing a course of postsecondary 
education or vocational rehabilitation or training, the amount 
paid by such child for such course of education or vocational 
rehabilitation or training, including the amount paid for 
tuition, fees, books, and materials.", 
(b) Subsection (c) of such section is repealed. 
INCOME AND NET WORTH REPORTS 
SEC. 103. Subsection (a) of section 506 of title 38, United States 
Code, is amended to read as follows: 
eondition. 
"(a) As a condition of granting or continuing pension under sec-
Post, pp. 2500, 
tion 521, 541, or 542 of this title, the Administrator— 
2503, 2504. 
"(1) may require from any person who is an applicant for or 
a recipient of pension such information, proofs, and evidence as 
the Administrator determines to be necessary in order to deter-
mine the annual income and the value of the corpus of the estate 
of such person, and of any spouse or child for whom the person 
is receiving or is to receive increased pension (such a child is here-
inafter in this subsection referred to as a 'dependent child'), and, 
in the case of a child applying for or in receipt of pension under 
section 542 of this title (hereinafter in this subsection referred to 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2499 
as a 'surviving child'), of any person with whom such child is 
residing who is legally responsible for such child's support; 
" (2) shall require that any such applicant or recipient file each 
year with the Veterans' Administration (on such form as may be 
prescribed for such purpose by the Administrator) a report 
showing— 
"(A) the annual income which such applicant or recipient 
(and any such spouse or dependent child) received during 
the preceding year, the corpus of the estate of such applicant 
or recipient (and of any such spouse or dependent child) at 
the end of such year, and in the case of a surviving child, the 
income and corpus of the estate of any person with whom 
such child is residing who is legally responsible for such 
child's support; 
"(B) such applicant's or recipient's estimate for the then 
current year of the annual income such applicant or recipient 
(and any such spouse or dependent child) expects to receive 
and of any expected increase in the value of the corpus of the 
estate of such applicant or recipient (and for any such spouse 
or dependent child); and 
"(C) in the case of a surviving child, an estimate for the 
then current year of the annual income of any person with 
whom such child is residing who is legally responsible for 
such child's support and of any expected increase in the 
value of the corpus of the estate of such person; 
"(3) shall require that any such applicant or recipient promptly 
file a revised report whenever there is a material change in the 
estimated annual income of such applicant or recipient (or of 
any such spouse or dependent child) or a material change in such 
applicant's or recipient's estimate of the value of the corpus of 
the estate of such applicant or recipient (or of any such spouse 
or dependent child), and in the case of a surviving child, a mate-
rial change in the estimated annual income or value of the corpus 
of the estate of any person with whom such child is residing who 
is legally responsible for such child's support; and 
"(4) shall require that any such applicant or recipient apply- Notification, 
ing for or in receipt of increased pension on account of a person 
who is a spouse or child of such applicant or recipient promptly 
notify the Administrator if such person ceases to meet the appli-
cable definition of spouse or child.". 
FREQUENCY OF PAYMENT OF PENSION BENEFITS 
SEC. 104. (a) Chapter 15 of title 38, United States Code, is amended 38 USC 501. 
by inserting after section 507 the following new section: 
"§ 508. Frequency of payment of pension benefits 
38 USC 508. 
"(a) Except as provided under subsection (b) of this section, ben-
efits under sections 521, 541, and 542 of this title shall be paid monthly. Post, pp. 2500, 
"(b) Under regulations which the Administrator shall prescribe, 2503,2504. 
benefits under sections 521, 541, and 542 of this title may be paid less 
frequently than monthly if the amount of th^ annual benefit is less 
than 4 per centum of the maximum annual rate payable to a veteran 
under section 521 (b) of this title.". 
(b) The table of sections at the beginning of such chapter is amended 
by inserting after the item relating to section 507 a new item as follows: 
"508. Frequency of payment of pension benefits.". 
92 STAT. 2500 
PUBUC LAW 95-588—NOV. 4, 1978 
PENSION rOR SPANISH-AMERICAN WAR VETERANS 
SEC. 105. Paragraph (3) of section 512(a) of title 38, United States 
Code, is amended— 
(1) in subparagraph (A)— 
(A) by inserting "^except the rate provided under sub-
section (g) of such section)" after "of this title"; 
(B) by striking out "World War I" and inserting in lieu 
thereof "a period of war"; and 
(C) by striking out the comma and "except as provided in 
subparagraph (B)" in the second sentence of such subpara-
graph ; and 
Regulations. 
(2) in subparagraph (B), by striking out "if such veteran" and 
all that follows in the first sentence and inserting in lieu thereof 
a comma and "as in effect on December 31,1978, under regulations 
which the Administrator shall prescribe.". 
PENSION OF VETERANS OF A PERIOD OF WAR 
SEC. 106. (a) Section 521 of title 38, United States Code, is amended 
to read as follows: 
*'§ 521. Veterans of a period of war 
"(a) The Administrator shall pay to each veteran of a period of war 
who meets the service requirements of this section (as prescribed in 
subsection (j) of this section) and who is permanently and totally 
disabled from non-service-connected disability not the result of the 
veteran's willful misconduct, pension at the rate prescribed by this 
section, as increased from time to time under section 3112 of this title. 
"(b) If the veteran is unmarried (or married but not living with or 
reasonably contributing to the support of such veteran's spouse) and 
there is no child of the \'eteran in the custody of the veteran or to whose 
support the veteran is reasonably contributing, and unless the veteran 
is entitled to pension at the rate provided by subsection (d)(1) or 
(e) of this section, pension shall be paid to the veteran at the annual 
rate of $3,550, reduced by the amount of the veteran's annual income. 
"(c) If the veteran is married and living with or reasonably con-
tributing to the support of such veteran's spouse, or if there is a child 
of the veteran in the custody of the veteran or to whose support the 
veteran is reasonably contributing, pension shall be paid to the vet-
eran at the annual rate of $4,651, unless the veteran is entitled to 
pension at the rate provided by subsection (d)(2), (e),or (f) of this 
section. If the veteran has two or more such family members, such 
annual rate shall be increased by $600 for each such family member 
in excess of one. The I'ate payable shall be reduced by the amount of the 
veteran's annual income and, subject to subsection (h)(1) of this 
section, the amount of annual income of such family members. 
"(d) (1) If the veteran is in need of regular aid and attendance, 
the annual rate of pension payable to the veteran under subsection (b) 
of this section shall be $5,680, reduced by the amount of the veteran's 
annual income. 
"(2) If the veteran is in need of regular aid and attendance, the 
annual rate of pension payable to the veteran under subsection (c) 
of this section shall be $6,781. If such veteran has two or more family 
members, as described in subsection (c) of this section, the annual rate 
of pension shall be increased by $600 for each such family member in 
excess of one. The rate payable shall be reduced by the amount of 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2501 
the veteran's annual income and, subject to subsection (h) (1) of 
this section, the amount of annual income of such family members. 
"(e) If the veteran has a disability rated as permanent and total 
and (1) has additional disability or disabilities independently ratable 
at 60 per centum or more, or (2) by reason of a disability or disabili-
ties, is permanently housebound but does not qualify for pension at 
the aid and attendance rate provided by subsection (d) of this section, 
the annual rate of pension payable to the veteran under subsection (b) 
of this section shall be $4,340 and the annual rate of pension payable 
to the veteran under subsection (c) of this section shall be $5,441. If 
such veteran has two or more family members, as described in sub-
section (c) of this section, the annual rate of pension shall be increased 
by $600 for each such family member in excess of one. The rate payable 
shall be reduced by the amount of the veteran's annual income and, 
subject to subsection (h)(1) of this section, the annual income of 
such family members. 
"(f)(1) If two veterans are married to one another and each 
meets the disability and service requirements prescribed in subsections 
(a) and (j), respectively, of this section, the annual rate of pension 
payable to such veterans shall be a combined annual rate of $4,651. 
"(2) If either such veteran is in need of regular aid and attendance, 
the annual rate provided by paragraph (1) of this subsection shall 
be $6,781. If both such veterans are in need of regular aid and attend-
ance, such rate shall be $8,911. 
"(3) If either such veteran would be entitled (if not married to a 
veteran) to pension at the rate provided by subsection (e) of this 
section, the annual rate provided by paragraph (1) of this subsection 
shall be $5,441. If both such veterans would be entitled (if not married 
to one another) to such rate, such rate shall be $6,231. 
" (4) If one such veteran is in need of regular aid and attendance and 
the other would be entitled (if not married to a veteran) to the rate 
provided for under subsection (e) of this section, the annual rate 
provided by paragraph (1) of this subsection shall be $7,571. 
"(5) The annual rate provided by paragraph (1), (2), (3), or (4) 
of this subsection, as appropriate, shall (A) be increased by $600 for 
each child of such veterans (or of either such veteran) who is in the 
custody of either or both such veterans or to whose support either such 
veteran is, or both such veterans are, reasonably contributing, and 
(B) be reduced by the amount of the annual income of both such vet-
erans and, subject to subsection (h)(1) of this section, the annual 
income of each such child. 
"(g) The annual rate of pension payable under subsection (b), (c), 
(d), (e),or (f) of this section to any veteran who is a veteran of a 
period of war shall be increased by $800 if veterans of such period of 
war were not provided educational benefits or home loan benefits simi-
lar to those provided to veterans of later periods of war under chap-
ters 34 and 37, respectively, of this title or under prior corresponding 38 USC 1651, 
provisions of law. 
1801. 
"(h) For the purposes of this section: 
"(1) In determining the annual income of a veteran, if there 
is a child of the veteran who is in the custody of the veteran or 
to whose support the veteran is reasonably contributing, that por-
tion of the annual income of the child that is reasonably available 
to or for the veteran shall be considered to be income of the 
veteran, unless in the judgment of the Administrator to do so 
would work a hardship on the veteran. 
92 STAT. 2502 
PUBLIC LAW 95-588—NOV. 4, 1978 
38 use 501. 
Pension 
payments, denial 
or 
discontinuation. 
Ante, p. 2500. 
"(2) A veteran shall be considered as living with a spouse, even 
though they reside apart, unless they are estranged. 
"(i) If the veteran is entitled under this section to pension on the 
basis of such veteran's own service and is also entitled to pension on 
the basis of any other person's service, the Administrator shall pay 
such veteran only the greater benefit. 
"(j) A veteran meets the service requirements of this section if such 
veteran served in the active military, naval, or air service— 
" (1) for ninety days or more during a period of war; 
"(2) during a period of war and was discharged or released 
from such service for a service-connected disability ; 
"(3) for a period of ninety consecutive days or more and such 
period began or ended during a period of war; or 
"(4) for an aggregate of ninety days or more in two or more 
separate periods of service during more than one period of war.", 
(b) The item relating to section 521 in the table of sections at the 
beginning of chapter 15 of such title is amended to read as follows: 
"521. Veterans of a period of war.". 
VETERANS' NET WORTH LIMITATION 
SEC. 107. Section 522 of title 38, United States Code, is amended 
to read as follows: 
"§ 522. Net worth limitation 
"(a) The Administrator shall deny or discontinue the payment of 
pension to a veteran under section 521 of this title when the corpus of 
the estate of the veteran or, if the veteran has a spouse, the corpus of 
the estates of the veteran and of the veteran's spouse is such that 
under all the circumstances, including consideration of the annual 
income of the veteran, the veteran's spouse, and the veteran's children, 
it is reasonable that some part of the corpus of such estates be con-
sumed for the veteran's maintenance. 
"(b) The Administrator shall deny or discontinue the payment of 
increased pension under subsection (c), (d), (e), or (f) of section 
521 of this title on account of a child when the corpus of such child's 
estate is such that under all the circumstances, including consideration 
of the veteran's and spouse's income, and the income of the veteran's 
children, it is reasonable that some part of the corpus of such child's 
estate be consumed for the child's maintenance. During the period 
such denial or discontinuance remains in effect, such child shall not 
be considered as the veteran's child for purposes of this chapter.". 
PENSION FOR SURVIVING SPOUSES OF SPANISH-AMERICAN WAR VETERANS 
SEC. 108. Subsection (d) of section 536 of title 38, United States 
Code, is amended— 
(1) in paragraph (1)— 
(A) by striking out "World War I" and inserting in lieu 
thereof "a period of war"; and 
(B) by striking out the comma and "except as provided 
in paragraph (2)" in the second sentence of such paragraph ; 
and 
(2) in paragraph (2)— 
(A) by inserting a comma and "as in effect on December 31, 
1978" after "of this title" both places it appears; and 
(B) by inserting a comma and "as in effect on such date" 
after "such section 544". 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2503 
PENSION FOR SURVIVING SPOUSES OF VETERANS OF A PERIOD OF WAR 
SEC. 109. (a) Section 541 of title 38, United States Code, is amended 
to read as follows: 
"§ 541. Surviving spouses of veterans of a period of war 
"(a) The Administrator shall pay to the surviving spouse of each 
veteran of a period of war who met the service requirements pre-
scribed in section 521(j) of this title, or who at the time of death was Ante, p. 2500. 
receiving (or entitled to receive) compensation or retirement pay for 
a service-connected disability, pension at the rate prescribed by this 
section, as increased from time to time under section 3112 of this title. 
"(b) If no child of the veteran is in the custody of the surviving 
spouse, pension shall be paid to the surviving spouse at the annual rate 
of $2,379, reduced by the amount of the surviving spouse's annual 
income. 
"(c) If there is a child of the veteran in the custody of the surviving 
spouse, pension shall be paid to the surviving spouse at the annual rate 
of $3,116. If the surviving spouse has custody of two or more such 
children, the annual pension rate shall be increased by $600 for each 
such child in excess of one. In each case, the rate payable shall be 
reduced by the amount of the surviving spouse's annual income and, 
subject to subsection (g) of this section, the annual income of each 
such child. 
"(d) (1) If a surviving spouse who is entitled to pension under sub-
section (b) of this section is in need of regular aid and attendance, the 
annual rate of pension payable to such surviving spouse shall be 
$3,806, reduced by the amount of the surviving spouse's annual income. 
"(2) If a surviving spouse who is entitled to pension under sub-
section (c) of this section is in need of regular aid and attendance, 
the annual rate of pension payable to the surviving spouse shall be 
$4,543. If there are two or more children of the veteran in such sur-
viving spouse's custody, the annual rate of pension shall be increased 
by $600 for each such child in excess of one. The rate payable shall be 
reduced by the amount of the surviving spouse's annual income and, 
subject to subsection (g) of this section, the annual income of each 
such child. 
"(e)(1) If the surviving spouse is permanently housebound but 
does not qualify for pension at the aid and attendance rate provided 
by subsection (d) of this section, the annual rate of pension payable 
to such surviving spouse under subsection (b) of this section shall be 
$2,908 and the annual rate of pension payable to such surviving spouse 
under subsection (c) of this section shall be $3,645. If there are two 
or more children of the veteran in such surviving spouse's custody, 
the annual rate of pension shall be increased by $600 for each such 
child in excess of one. The rate payable shall be reduced by the amount 
of the surviving spouse's annual income and, subject to subsection 
(g) of this section, the income of any child of the veteran for whom 
the surviving spouse is receiving increased pension. 
"(2) For purposes of paragraph (1) of this subsection, the require- "Permanently 
ment of 'permanently housebound' shall be met when the surviving housebound." 
spouse is substantially confined to such surviving spouse's house (ward 
or clinical areas, if institutionalized) or immediate premises by reason 
of a disability or disabilities reasonably certain to remain throughout 
such surviving spouse's lifetime. 
92 STAT. 2504 
PUBLIC LAW 95-588—NOV. 4, 1978 
"(f) No pension shall be paid under this section to a surviving 
spouse of a veteran unless the spouse was married to the veteran— 
"(1) before (A) December 14, 1944, in the case of a surviving 
spouse of a Mexican border period or World War I veteran, (B) 
January 1,1957, in the case of a surviving spouse of a World War 
II veteran, (C) February 1,1965, in the case of a surviving spouse 
of a Korean conflict veteran, or (D) May 8, 1985, in the case of 
a surviving spouse of a Vietnam era veteran; 
" (2) for one year or more; or 
" (3) for any period of time if a child was born of the marriage, 
or was born to them before the marriage. 
"(g) In determining the annual income of a surviving spouse for 
the purposes of this section, if there is a child of the veteran in the 
custody of the surviving spouse, that portion of the annual income of 
the child that is reasonably available to or for the surviving spouse 
shall be considered to be income of the surviving spouse, unless in the 
judgment of the Administrator to do so would work a hardship 
on tlie surviving spouse. 
"Veteran." 
"(]i) As used in this section and section 542 of this title, the term 
'veteran' includes a person who has completed at least two years of 
honorable active military, naval, or air service, as certified by the 
Secretary concerned, but whose death in such service was not in line 
of duty.''. 
(b) The if 
em relating to section 541 in the table of sections at the 
38 use 501. 
beginning of chapter 15 of such title is amended to read as follows: 
"541. Surviving spouses of veterans of a period of war.". 
PENSION FOR CHILDREN OF VETERANS OF A PERIOD OF WAR 
SEC. 110. (a) Section 542 of title 38, United States Code, is amended 
to read as follows: 
"§ 542. Children of veterans of a period of war 
"The Administrator shall pay to each child (1) who is the child of 
a deceased veteran of a period of war who met the service require-
Ante, p. 2500. 
ments prescribed in section 521 (j) of this title, or who at the time 
of death was receiving (or entitled to receive) compensation or retire-
ment pay for a service-connected disability, and (2) who is not in the 
custody of a surviving spouse eligible for pension under section 541 
of this title, pension at the annual rate of $600, as increased from 
time to time under section 3112 of this title and reduced by the amount 
of such child's annual income; or, if such child is residing with a person 
who is legally responsible for such child's support, at an annual rate 
equal to the amount by which the appropriate annual rate provided 
under section 541 (c) of this title exceeds the sum of the annual income 
of such child and such person, but in no event may such annual rate 
of pension exceed the amount by which $600, as increased from time 
to time under section 3112 of this title, exceeds the annual income of 
such child. The appropriate annual rate under such section 541(c) 
for the purposes of the preceding sentence shall be determined in 
accordance with regulations which the Administrator shall prescribe.", 
(b) The item relating to section 542 in the table of sections at the 
beginning of chapter 15 of such title is amended to read as follows: 
"542. Children of veterans of a period of war.". 
SURVIVORS' NET WORTH LIMITATION 
SEC. 111. Section 543 of title 38, United States Code, is amended 
to read as follows: 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2505 
or 
discontinuation. 
Ante, p. 2503. 
"§ Wa Net worth limitation 
"(a) (1) The Administrator shall deny or discontinue payment of Pension 
pension to a surviving spouse under section 541 of this title when the payments, denial 
corpus of the estate of the surviving spouse is such that under all the 
circumstances, including consideration of the income of the surviving 
spouse and the income of any child from whom the surviving spouse is 
receiving increased pension, it is reasonable that some part of the cor-
pus of such estate be consumed for the surviving spouse's maintenance. 
"(2) The Administrator shall deny or discontmue the payment of 
increased pension under subsection (c), (d), or (e) of section 541 of 
this title on account of a child when the corpus of such child's estate 
is such that under all the circumstances, including consideration of the 
income of the surviving spouse and such child and the income of any 
other child for whom the surviving spouse is receiving increased 
pension, it is reasonable that some part of the corpus of the child's 
estate be consumed for the child's maintenance. During the period 
such denial or discontinuance remains in effect, such child shall not 
be considered as the surviving spouse's child for purposes of this 
chapter. 
"(b) The Administrator shall deny or discontinue payment of 
pension to a child under section 542 of this title when the corpus of -^«'e, p. 2504. 
the estate of the child is such that under all the circumstances, includ-
ing consideration of the income of the child, the income of any person 
with whom such child is residing who is legally responsible for such 
child's support, and the corpus of the estate of such person, it is 
reasonable that some part of the corpus of such estates be consumed 
for the child's maintenance.". 
CONFORMING AMENDMENT RELATING TO SURVIVING SPOUSES 
PENSION 
SEC. 112. (a)(1) Section 544 of title 38, United States Code, is Repeal, 
repealed. 
(2) Chapter 15 of such title is amended by striking out the heading 38 USC 501. 
below section 543 of such chapter. 
(b) The table of sections at the beginning of chapter 15 of such 
title is amended by striking out the item below the item relating to 
section 543 and by striking out the item relating to section 544. 
TITLE II—DEPENDENCY AND INDEMNITY COMPEN-
SATION FOR SURVIVING PARENTS 
D E P E N D E N C Y A N D INDEMNITY COMPENSATION FOR SURVIVING PARENTS 
SEC. 201. (a) (1) Paragraph (1) of subsection (b) of section 415 
of title 38, United States Code, is amended to read as follows: 
"(1) Except as provided in paragraph (4) of this subsection, if 
there is only one parent, the monthly rate of dependency and indemnity 
compensation paid to such parent shall be $163, as increased from 
time to time under section 3112(b) (1) of this title and reduced by an 
amount, based upon the amount of such parent's annual income, 
determined in accordance with regulations which the Administrator 
shall prescribe under section 3112(b) (2) of this title.". 
(2) Paragraph (3) of such subsection is amended by striking out 
"$3,770" and inserting in lieu thereof "$4,038, as increased from time 
to time under section 3112 of this title". 
(3) The first sentence of paragraph (4) of such subsection is 
amended by striking out "the lormula of paragraph (1) of this sub-
92 STAT. 2506 
PUBLIC LAW 95-588—NOV. 4, 1978 
section or under the formula in subsection (d), whichever is the 
greater" and inserting in lieu thereof "paragraph (1) of this subsection 
or under subsection (d) of this section, whichever will result in the 
greater amount of such compensation being paid to such parent". 
(b) (1) Paragraph (1) of subsection (c) of such section is amended 
to read as follows: 
"(1) Except as provided in subsection (d) of this section, if there 
are two parents, but they are not living together, the monthly rate of 
dependency and indemnity compensation paid to each such parent 
shall be $115, as increased from time to time under section 3112(b) (1) 
of this title and reduced by an amount, based upon the amount of such 
parent's annual income, determined in accordance with regulations 
which the Administrator shall prescribe under section 3112(b) (2) of 
this title.". 
(2) Paragraph (3) of such subsection is amended by striking out 
"$3,770" and inserting in lieu thereof "$4,038, as increased from time to 
time under section 3112 of this title". 
(c) (1) Paragraph (1) of subsection (d) of such section is amended 
to read as follows: 
" (1) If there are two parents who are living together, or if a parent 
has remarried and is living with such parent's spouse, the monthly rate 
of dependency and indemnity compensation paid to such parent shall 
be $109, as increased from time to time under section 3112(b) (1) of this 
title and reduced by an amount, based upon the amount of the combined 
annual income of the parents or the parent and the parent's spouse, 
determined in accordance with regulations which the Administrator 
shall prescribe under section 3112 (b) (2) of this title.". 
(2) Paragraph (3) of such subsection is amended by striking out 
"$5,070" and inserting in lieu thereof "$5,430, as increased from time to 
time under section 3112 of this title". 
(d) Subsection (h) of such section is amended by striking out 
"$79" and inserting in lieu thereof "$85, as increased from time to 
time under section 3112 of this title,". 
TITLE III—MISCELLANEOUS P R O V I S I O N S AND 
CONFORMING A M E N D M E N T S 
DEFINITION OF " P E N S I O N " 
SEC. 301. Paragraph (15) of section 101 of title 38, United States 
Code, is amended by inserting "or other periodic" after "monthly". 
INCOME LIMITATION FOR RECEIPT OF DRUGS AND MEDICINES 
SEC. 302. The second sentence of section 612(h) of title 38, United 
States Code, is amended by striking out "$500" and inserting in lieu 
thereof "$1,000". 
EFFECTIVE DATES FOR CHANGES IN INCOME 
SEC. 303. Clause (4) of section 3012(b) of title 38, United States 
Code, is amended to read as follows: 
"(4) by reason of— 
" (A) change in income shall (except as provided in section 
3112 of this title) be the last day of the month in which the 
change occurred; and 
"(B) change in corpus of estate shall be the last day of the 
calendar year in which the change occurred;". 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2507 
38 use 3112. 
42 use 401. 
42 use 415. 
CONFORMING AMENDMENT RELATING TO PROHIBITION ON CONCURRENT 
PENSIONS 
SEC. 304. Paragraph (1) of section 3104(b) of title 38, United States 
Code, is amended by inserting "of this subsection and in section 521 (i) 
of this title" after "(2) and (3)". 
ANNUAL COST-OF-LIVING ADJUSTMENTS 
SEC 305. (a) Chapter 53 of title 38, United States Code, is amended 
by adding at the end thereof the following new section: 
*
*
§ 3112. Annual adjustment of certain benefit rates 
" (a) Whenever there is an increase in benefit amounts payable under 
title II of the Social Security Act as a result of a determination made 
under section 215(i) of such Act, the Administrator shall, effective on 
the date of such increase in benefit amounts, increase each maximum 
annual rate of pension under sections 521, 541, and 542 of this title and 
the rate of increased pension paid under such sections 521 and 541 on 
account of children, as such rates were in effect immediately prior to 
the date of such increase in benefit amounts payable under title II of 
the Social Security Act, by the same percentage as the percentage by 
which such benefit amounts are increased. 
"(b) (1) Whenever there is an increase in benefit amounts payable 
under title II of the Social Security Act as a result of a determination 
made under section 215 (i) of such Act, the Administrator shall, effec-
tive on the date of such increase in benefit amounts, increase the maxi-
mum monthly rates of dependency and indemnity compensation for 
parents payable under subsections (b), (c), and (d), and the monthly 
rate provided in subsection (h), of section 415 of such title and the 
annual income limitations prescribed in subsections (b)(3), (c)(3), 
and (d)(3) of such section, as such rates and limitations were in effect 
immediately prior to the date of such increase in benefit amounts pay-
able under title II of the Social Security Act, by the same percentage as 
the percentage by which such benefit amounts are increased. 
" (2) (A) Whenever there is an increase under paragraph (1) of this 
subsection in such rates and annual income limitations, the Administra-
tor shall, effective on the date of such increase in such rates and limita-
tions, adjust (as provided in subparagraph (B) of this paragraph) the 
rates of dependency and indemnity compensation payable under sub-
section (b) (1) or (c) (1) of section 415 of this title to any parent whose 
annual income is more than $800 but not more than the annual income 
limitation in effect under subsection (b) (3) or (c) (3) of such section, 
as appropriate, and adjust the rates of such compensation payable 
under subsection (d) (1) of such section to any parent whose annual 
income is more than $1,000 but not more than the annual income limita-
tion in effect under subsection (d)(3) of such section. 
"(B) The adjustment in rates of dependency and indemnity com- Regulations 
pensation referred to in subparagraph (A) of this paragraph shall 
be made by the Administrator in accordance with regulations which 
the Administrator shall prescribe. 
"(c)(1) Whenever there is an increase under subsection (a) in 
benefit rates payable under sections 521, 541, and 542 of this title and 
an increase under subsection (b) in benefit rates and annual income 
limitations under section 415 of this title, the Administrator shall pub-
lish such rates and limitations (including those rates adjusted by the 
Administrator under subsection (b) (2) of this section), as increased 
Publication in 
Federal 
Register. 
92 STAT. 2508 
PUBLIC LAW 95-588—NOV. 4, 1978 
pursuant to such subsections, in the Federal Register at the same time 
as the material required by section 215(i) (2) (D) of the Social Secu-
42 use 415. 
rity Act is published by reason of a determination under section 215 
(i) of such Act. 
"(2) Whenever such rates and income limitations are so increased, 
the Administrator may round such rates and income limitations in 
such manner as the Administrator considers equitable and appropriate 
for ease of administration.". 
(b) The table of sections at the beginning of chapter 53 of such 
38 use 3101. 
title is amended by adding at the end thereof a new item as follows: 
"8112. Annual adjustment of certain benefit rates.". 
SAVINGS PROVISIONS FOR PERSONS ENTITLED TO PENSION AS OF 
DECEMBER 3 1 , 19 78 
38 use521 note. 
SEC. 306. (a) (1) (A) Except as provided in subparagraph (B), any 
person who as of December 31, 1978, is entitled to receive pension 
under section 521, 541, or 542 of title 38, United States Code, may elect 
to receive pension under such section as in effect after such date, sub-
ject to the terms and conditions in effect with respect to the receipt of 
such pension. Any such election shall be made in such form and man-
ner as the Administrator may prescribe. If pension is paid pursuant 
to such.an election, the election shall be irrevocable. 
(B) Any veteran eligible to make an election under subparagraph 
(A) who is married to another veteran who is also eligible to make 
such an election may not make such an election unless both such vet-
erans make such an election. 
(2) Any person eligible to make an election under paragraph (1) 
who does not make such an election shall continue to receive pension 
at the monthly rate being paid to such person on December 31, 1978, 
subject to all provisions of law applicable to basic eligibility for and 
payment of pension under section 521, 541, or 542, as appropriate, of 
title 38, United States Code, as in effect on December 31, 1978, except 
that— 
(A) pension may not be paid to such person if such person's 
annual income (determined in accordance with section 503 of title 
38, United States Code, as in effect on December 31,1978) exceeds 
$4,038, in the case of a veteran or surviving spouse without depend-
ents, $5,430, in the case of a veteran or surviving spouse with one 
or more dependents, or $3,299, in the case of a child; and 
(B) the amount prescribed in subsection (f) (1) of section 521 
of such title (as in effect on December 31,1978) shall be $1,285; 
as each such amount is increased from time to time under para-
graph (3). 
(3) Whenever there is an increase under section 3112 of title 38, 
United States Code (as added by section 304 of this Act), in the maxi-
mum annual rates of pension under sections 521, 541, and 542 of such 
title, as in effect after December 31, 1978, the Administrator of Veter-
ans' Affairs shall, effective on the date of such increase under such sec-
tion 3112, increase— 
(A) the annual income limitations in effect under paragraph 
(2); and 
(B) the amount of income of a veteran's spouse excluded from 
the annual income of such veteran under section 521 (f) (1) of such 
title, as in effect on December 31,1978; 
by the same percentage as the percentage by which such maximum 
annual rates under such sections 521, 541, and 542 are increased. 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2509 
(b) (1) Effective January 1, 1979, section 9 of the Veterans' Pen- Repeal 
sion Act of 1959 (Public Law 86-211) is repealed. 
38 USC 521 note. 
(2) (A) Except as provided in subparagraph (B), any person who 
as of December 31, 1978, is entitled to receive pension under section 
9(b) of the Veterans' Pension Act of 1959 may elect to receive pension 
under section 521, 541, or 542 of title 38, United States Code, as in 
effect after such date, subject to the terms and conditions in effect with 
respect to the receipt of such pension. Any such election shall be made 
in such form and manner as the Administrator of Veterans' Affairs may 
prescribe. If pension is paid pursuant to such an election, the election 
shall be irrevocable. 
(B) Any veteran eligible to make an election under subparagraph 
(A) who is married to another veteran who is also eligible to make such 
an election may not make such an election unless both such veterans 
make such an election. 
(3) Any person eligible to make an election under paragraph (2) 
who does not make such an election shall continue to receive pension 
at the monthly rate being paid to such person on December 31, 1978, 
subject to all provisions of law applicable to basic eligibility for and 
payment of pension under section 9 (b) of the Veterans' Pension Act of 
1959, as in effect on December 31,1978, except that pension may not be 
paid to such person if such person's annual income (determined in 
accordance with the applicable provisions of law, as in effect on Decem-
ber 31,1978) exceeds $3,534, in the case of a veteran or surviving spouse 
without dependents or in the case of a child, or $5,098, in the case of a 
veteran or surviving spouse with one or more dependents, as each such 
amount is increased from time to time under paragraph (4). 
(4) Whenever there is an increase under section 3112 of title 38, 
United States Code (as added by section 304 of this Act), in the maxi-
mum annual rates of pension under sections 521, 541, and 542 of such 
title, as in effect after December 31, 1978, the Administrator shall, 
effective on the date of such increase under such section 3112, increase 
the annual income limitations in effect under paragraph (3) by the 
same percentage as the percentage by which the maximum annual 
rates under such sections 521,542, and 543 are increased. 
(c) Any case in which— 
(1) a claim for pension is pending in the Veterans' Administra-
tion on December 31,1978 ; 
(2) a claim for pension is filed by a veteran after December 31, 
1978, and within one year after the date on which such veteran 
became totally and permanently disabled, if such veteran became 
totally and permanently disabled before January 1,1979; or 
(3) a claim for pension is filed by a surviving spouse or by a 
child after December 31, 1978, and within one year after the date 
of death of the veteran through whose relationship such claim is 
made, if the death of such veteran occurred before January 1,1979; 
shall be adjudicated under title 38, United States Code, as in effect on 
December 31,1978. Any benefits determined to be payable as the result 
of the adjudication of such a claim shall be subject to the provisions of 
subsection (a). 
(d) In any case in which any person who as of December 31,1978, is 
entitled to receive pension under section 521, 541, or 542 of title 38, 
United States Code, or under section 9 (b) of the Veterans' Pension Act 
of 1959, elects (in accordance with subsection (a)(1) or (b)(2), as 
appropriate) before October 1,1979, to receive pension under such sec-
tion as in effect after December 31, 1978, the Administrator of Veter-
92 STAT. 2510 
PUBLIC LAW 95-588—NOV. 4, 1978 
ans' Affairs shall pay to such person an amount equal to the amount by 
which the amount of pension benefits such person would have received 
had such election been made on January 1,1979, exceeds the amount of 
pension benefits actually paid to such person for the period beginning 
on January 1,1979, and ending on the date preceding the date of such 
election. 
Publication in 
(e) Whenever there is an increase under subsections (a) (3) and 
Federal Register, (b) (4) i^i the annual income limitations with respect to persons being 
paid pension under subsections (a) (2) and (b) (3), the Administrator 
of Veterans' Affairs shall publish such annual income limitations, as 
increased pursuant to such subsections, in the Federal Register at the 
same time as the material required by section 215(i) (2) (D) of the 
42 use 415. 
Social Security Act is published by reason of a determination under 
section 215 (i) of such Act. 
AMENDMENTS CONCERNING PENSION FOR CERTAIN INSTITUTIONALIZED 
VETERANS 
SEC. 307. Paragraph (1) of section 3203(a) of title 38, United States 
Code, is amended to read as follows: 
" (1) (A) Where any veteran having neither spouse nor child is being 
furnished domiciliary care by the Veterans' Administration, no pen-
sion in excess of $60 per month shall be paid to or for the veteran for 
any period after the end of the second full calendar month following 
the month of admission for such care. 
"(B) Where any veteran having neither spouse nor child is being 
furnished hospital or nursing home care by the Veterans' Administra-
tion, no pension in excess of $60 per month shall be paid to or for the 
veteran for any period after the end of the third full calendar month 
following the month of admission for such care. 
"(C) No pension in excess of $60 per month shall be paid to or for 
a veteran having neither spouse nor child for any period after the 
month in which such veteran is readmitted for care described in sub-
paragraph (A) or (B) of this paragraph and furnished by the 
Veterans' Administration if such veteran is readmitted within six 
months of a period of care of not less than two full calendar months.". 
STUDY OF PENSION BENEFITS PAID TO PERSONS 
OVERSEAS 
38 use 521 note. 
SEC. 308. (a) The Administrator of Veterans' Affairs, in consul-
tation with the Secretary of State, shall carry out a comprehensive 
study of the income characteristics of veterans of a period of war (as 
defined in section 101(11) of title 38, United States Code) and their 
survivors who are residing outside the fifty States and the District of 
Columbia, including those who are receiving pension benefits under 
38 use 3101. 
chapter 15 of title 38, United States Code, or under section 9(b) of 
38 use 521 note, the Veterans' Pension Act of 1959, as in effect on the date of the enact-
ment of this Act. The Administrator shall include in such study (1) 
an analysis of the issues involved in the payment of non-service-
connected pension benefits to such persons, (2) analyses of such aspects 
of the economy of each foreign country and each territory, possession, 
and commonwealth of the United States in which a substantial num-
ber of such persons reside as are relevant to such issues, such as the 
rate of inflation, the standard of living, and subsistence levels in such 
foreign country or such territory, possession, or commonwealth, and 
(3) estimates of the present and future costs of the payment of pen-
sion benefits to such persons. 
PUBLIC LAW 95-588—NOV. 4, 1978 
92 STAT. 2511 
(b) The Administrator of Veterans' Affairs shall transmit a report Report, 
to the Congress and to the President, not later than February 1, 1980, transmittal to the 
on the results of such study, together with the Administrator's rec- President and 
ommendations as to the desirability of modifying the Veterans' ^o^g'^^^^-
Administration non-service-connected pension program for veterans 
of a period of war (as defined in section 101(11) of title 38, United 
States Code) and their survivors who are residing outside the fifty 
States and the District of Columbia. 
TITLE IV—EFFECTIVE DATE 
SEC. 401. The amendments made by this Act to title 38, United 38 USC101 note. 
States Code, shall become effective on January 1,1979. 
Approved November 4, 1978. 
LEGISLATIVE HISTORY: 
.HOUSE REPORTS: No. 95-1225 (Coram, on Veterans' Affairs) and No. 95-1768 (Coram. 
of Conference). 
SENATE REPORTS: No. 95-1016 accorapanying S. 2384 (Coram, on Veterans' Affairs) 
and No. 95-1329 (Coram, of Conference). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
June 28, considered and passed House. 
July 31, considered and passed Senate, amended, in lieu of S. 2384. 
Oct. 12, Senate agreed to conference report. 
Oct. 14, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 45: 
Nov. 6, Presidential statement.