House Report 106-783 - VETERANS BENEFITS ACT OF 2000

[House Report 106-783]
[From the U.S. Government Publishing Office]

106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-783

======================================================================

VETERANS BENEFITS ACT OF 2000

_______

July 24, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Stump, from the Committee on Veterans' Affairs, submitted the
following

R E P O R T

[To accompany H.R. 4850]

[Including cost estimate of the Congressional Budget Office]

The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 4850) to provide a cost-of-living adjustment in
rates of compensation paid to veterans with service-connected
disabilities, to enhance programs providing compensation and
life insurance benefits for veterans, and for other purposes,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.

Introduction

The reported bill reflects the Committee's consideration of
several bills introduced during the 106th Congress, to include
H.R. 3816, H.R 3998, H.R 4131, and H.R. 4376.
On April 13, 2000, the Subcommittee on Benefits held a
hearing and considered, among other matters, H.R. 3816, H.R.
3998, and H.R. 4131.
On July 13, 2000, the Chairman and Ranking Member, the
Honorable Bob Stump and the Honorable Lane Evans, along with
the Chairman and Ranking Member of the Subcommittee on
Benefits, the Honorable Jack Quinn and the Honorable Bob
Filner, introduced H.R. 4850, which contains provisions from
H.R. 3816, H.R. 3998, H.R. 4131, and H.R. 4376.
On July 18, 2000, the Subcommittee on Benefits ordered H.R.
4850 reported favorably to the full Committee.
On July 20, 2000, H.R. 4850 was ordered reported favorably
by the full Committee to the House.

Summary of the Reported Bill

H.R. 4850 would:

Title I: Annual Compensation Increase

1. Increase the rates, effective December 1, 2000, of
disability compensation for veterans with service-connected
disabilities and the rates of dependency and indemnity
compensation for survivors of certain disabled veterans.

Title II: Benefits Improvements

1. Provide that a stroke or heart attack that is incurred
or aggravated by a member of a reserve component in the
performance of duty while performing inactive duty training
shall be considered to be service-connected for purposes of
benefits under laws administered by the Secretary of Veterans
Affairs.
2. Provide an additional special monthly compensation for
the service-connected loss of one or both breasts due to a
radical mastectomy shall be the same as the rate for the
service-connected loss or loss of use of one or more creative
organs.

Title III: Veterans Life Insurance

1. Permit certain members of the Individual Ready Reserve
to participate in the Servicemembers' Group Life Insurance
program.

Background and Discussion

There were 2.6 million veterans receiving disability
compensation as of May 2000. The Department of Veterans Affairs
expects expenditures for disability compensation to be $15
billion for fiscal year 2000. The basic purpose of the
disability compensation program is to provide a measure of
relief from the impaired earning capacity of veterans disabled
as the result of their military service. The amount of
compensation payable varies according to the degree of
disability, which, in turn, is required by law to represent, to
the extent practicable, the average loss of earning capacity
resulting from such disability or combination of disabilities
in civil occupations.
To be eligible to receive disability compensation, a
veteran must have contracted a disease, suffered an injury
which is not the result of willful misconduct, or aggravated an
existing disease or injury in the line of duty during active
duty service, and have been discharged under other than
dishonorable conditions.
The responsibility for determining a veteran's entitlement
to service connection for a disability rests solely with the
Department of Veterans Affairs.

DEPENDENCY AND INDEMNITY COMPENSATION FOR SURVIVORS OF VETERANS WHO
HAVE DIED OF SERVICE-CONNECTED CAUSES

As of May 2000, there were 286,302 surviving spouses and
32,416 children receiving dependency and indemnity
compensation(DIC). VA expects DIC expenditures of $3.5 billion in
fiscal year 2000. Widows and children of veterans who died of causes
determined to be service-connected are entitled to receive monthly DIC.
The purpose of this benefit, authorized under chapter 13 of
title 38, is to provide partial compensation to the appropriate
survivors for the loss in financial support due to the service-
connected death. Income and need are not factors in determining
a surviving spouse's or child's entitlement since the Nation
assumes, in part, the legal and moral obligation of the veteran
to support the spouse and children.
In 1992, Congress reformed the manner in which payments of
DIC are made. Under current law, for death occurring on and
after January 1, 1993, a base rate of $881 per month is payable
to a surviving spouse. Such amount is increased by $191 if the
veteran suffered from a service-connected disability which was
rated 100 percent for a period of eight years immediately
preceding death and if the veteran and surviving spouse were
continuously married during that period. For service-connected
deaths occurring prior to January 1, 1993, payment of DIC is
made on the basis of the veteran's military pay grade if the
result would be a higher benefit level than under the new
payment structure. Rates for these ``grandfathered'' surviving
spouses range from $881 for the spouse of an E-6 to $1,878 for
the surviving spouse of an O-10. Surviving spouses are
currently entitled to an additional $222 per month for each
child.
There is an additional allowance, currently $222 monthly,
which is payable to eligible surviving spouses who are patients
in a nursing home or who are in need of the regular aid and
attendance of another person.
If there is no surviving spouse receiving dependency and
indemnity compensation benefits but there is a surviving child,
the child is currently entitled to $373 monthly with additional
benefits for other children with certain limits due to age,
disability, and status as a student.

TITLE I: ANNUAL COMPENSATION INCREASE

This section would direct VA to compute and provide
increases in the monthly rates of compensation and DIC,
effective December 1, 2000. The rates would be increased by the
same percentage as the Social Security cost-of-living
adjustment (COLA) that will take effect on that date. If the
increase does not result in a whole dollar amount, it shall be
rounded down to the next lower dollar amount. This section
would provide a full COLA for both old- and new-law DIC
recipients. The Committee is following its recent practice of
setting the COLA by reference to the yet-to-be determined
Social Security increase.
The Committee annually reviews the service-connected
disability compensation and DIC programs to ensure that the
benefits provide reasonable and adequate compensation for
disabled veterans and their families. Based on this review, the
Congress acts annually to provide a cost-of-living adjustment
(COLA) in compensation and DIC benefits. The Congress has
provided annual increases in these rates for every fiscal year
since 1976.

TITLE II: BENEFITS IMPROVEMENTS

Presumption of Service Connection For Heart Attack or Stroke Suffered
by a Member of a Reserve Component in the Performance of Duty While
Performing Inactive Duty Training

This section would require the Department of Veterans
Affairs to treat claims for strokes or heart attacks that occur
in the line of duty during inactive duty training as service-
connected. Reservists or guardsmen who suffer one of these
conditions would become eligible for veterans benefits and
services. Their survivors would also become eligible for
benefits. Inactive duty training generally means the training
reservists and guardsmen perform on weekends.
Under current law, guardsmen and reservists who sustain an
injury during inactive duty training are eligible for certain
veterans' benefits. They are not eligible to receive disability
compensation for a disease condition that is incurred or
aggravated during such training. The U.S. Court of Appeals for
the Federal Circuit has upheld VA General Counsel precedent
that a heart attack is the result of disease, not injury.
This provision does not change the distinction between
injury and disease. Rather, it recognizes that certain non-
traumatic physiological events or episodes during required
periods of Inactive Duty for Training, such as the strain of
unaccustomed exertion, may result in disability or death
through heart attack or stroke.

Special Monthly Compensation For Service-Connected Loss of One or Both
Breasts Due to Mastectomy

This section would authorize special monthly compensation
under title 38, United States Code, section 1114(k), for the
service-connected loss of one or both breasts due to a radical
mastectomy or modified radical mastectomy. Section 1114(k)
authorizes a special rate of compensation if a veteran, as the
result of service-connected disability, has suffered the
anatomical loss or loss of use of one or more creative organs,
or one foot, or one hand, or both buttocks, or blindness of one
eye, having only light perception, or has suffered complete
loss of the ability to speak, or deafness of both ears. The
current monthly award is $76 for each such loss or loss of use.
The special monthly compensation is payable in addition to the
compensation payable by reason of ratings assigned under the
rating schedule.
From a review of past changes to this subsection, it
appears that Congress has singled out specific disabilities for
this additional benefit because they 1) generally involve
visible damage which may be thought to stigmatize the disabled
veteran; 2) may limit social opportunities or interactions in a
way that were not considered to be adequately compensated; or
3) involve personal or social impairments of an extreme nature.
A recommendation to provide this additional compensation for
the loss of a breast was included in the VA Advisory Committee
on Women Veterans 1998 Report to Congress. It recognizes that a
radical or modified mastectomy frequently results in severe
physical disfigurement that necessitates major reconstructive
surgery, the use of prosthetics, or both. Additionally,
temporary or permanent limitation of the use of the armand
shoulder may follow the surgery. In addition to the loss of physical
integrity, the loss of a breast to a woman--the fastest growing
population of VA eligible veterans in America--is the loss of an
identifying feature, a secondary sex characteristic and a part of her
persona as a female.

TITLE III: VETERANS LIFE INSURANCE

The Servicemembers' Group Life Insurance (SGLI) program
began in 1965 for Vietnam-era servicemembers and continues
today. SGLI, while supervised by VA, is administered in large
part by the Department of Defense and, for claims purposes, by
Prudential's Office of Servicemembers' Group Life Insurance
(OSGLI). It provides up to $200,000 of life insurance coverage
to members of the uniformed services (active duty, reservists,
commissioned members of the Public Health Service and National
Oceanic & Atmospheric Administration, and the four military
service academies). There are approximately 2.4 million members
covered under the SGLI program.
At the time each member enters the uniformed services, they
are automatically covered by the maximum SGLI but can opt out,
or lower coverage, only in writing. The uniformed services are
responsible for premiums payments and get reimbursed by the
individual members.

Eligibility of Certain Members of the Individual Ready Reserve for
Servicemembers' Group Life Insurance

Section 301 would provide those members of the Individual
Ready Reserve (IRR) who are subject to involuntary call-up
authority to enroll in the Servicemembers' Group Life Insurance
(SGLI) program. These IRR members have been identified as such
critical manpower assets in the Services' mobilization planning
systems that their involuntary call to active duty under a
Presidential Reserve Call-up may occur prior to many Selected
Reserve members being involuntarily called to active duty.
Eligibility for SGLI is one of the few benefits that can be
offered under the current statutes to these servicemembers, who
are critical in the event of a national emergency or war.
Expanding the pool of eligible members will also provide for a
greater participation in the current SGLI program.
This provision is consistent with section 511 of the
National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85) that established this new category within the IRR
with the requirement in section 511, which states: ``(4) A
member in such mobilization category shall be eligible for
benefits (other than pay and training) as are normally
available to members of the Selected Reserve, as determined by
the Secretary of the Defense.''

Section-By-Section Analysis

Section 1 would be cited as the ``Veterans Benefits Act of
2000''.
Section 101(a) would authorize the Secretary of Veterans
Affairs to increase, effective December 1, 2000, the dollar
amounts in effect for the payment of disability compensation
and dependency and indemnity compensation.
Section 101(b) would specify the programs to receive
increased dollar amounts: compensation, additional compensation
for dependents, clothing allowance, new DIC rates, old DIC
rates, additional DIC for surviving spouses with minor
children, additional DIC for disability, and DIC for dependent
children.
Section 101(c)(1) would increase the dollar amounts for
those specified in subsection (b) based on the amount in effect
on November 30, 2000. Each amount shall be increased by the
same percentage by which benefits are increased under title II
of the Social Security Act (42 U.S.C. 401 et seq.).
Section 101(c)(2) would round down to the next lower dollar
amount all compensation and DIC benefits, when the amount is
not a whole dollar amount.
Section 101(d) would provide a special rule authorizing the
Secretary of Veterans Affairs to adjust administratively,
consistent with the increases made under subsection (a), the
rates of disability compensation payable to persons within the
purview of section 10 of Public Law 85-857, who are not in
receipt of compensation payable pursuant to chapter 11 of title
38, United States Code.
Section 102 would require the Secretary of Veterans Affairs
to publish in the Federal Register the amounts specified in
subsection (b), as increased pursuant to that section.
Section 201(a) would amend section 101(24) of title 38,
United States Code, to include an acute myocardial infarction,
a cardiac arrest, or a cerebrovascular accident resulting in
disability or death and occurring during any period of inactive
duty training for the purposes of benefits administered by VA.
Section 202 would amend section 1114(k) of title 38, United
States Code, by making eligible for special monthly
compensation the service-connected loss of one or both breasts
due to a radical mastectomy or modified radical mastectomy.
Section 301(a) would amend section 1965(5) of title 38,
United States Code, by extending eligibility for the
Servicemembers' Group Life Insurance program to a person who
volunteers for assignment to a mobilization category in the
Individual Ready Reserve, as defined in section 12304(i)(1) of
title 10, United States Code.
Section 301(b) makes conforming amendments to sections
1967(a), 1968(a), and 1969(a)(2)(A) of title 38, United States
Code.
Section 301(c) would provide an effective date of October
1, 2000, for section 301.

Oversight Findings

No oversight findings have been submitted to the Committee
by the Committee on Government Reform and Oversight.

Statement of Administration's Views

The Administration's proposed fiscal year 2000 budget
request, submitted in February, 2000, recommended an increase
based on the change in the Consumer Price Index (CPI) be given
to all compensation beneficiaries, including DIC spouses and
children, effective December 1, 2000. The estimated increase in
the CPI at that time was 2.5 percent.
At a Subcommittee on Benefits hearing on April 13, 2000,
the Administration testified in support of a cerebrovascular
accident or an acute myocardial infarction occurring during
inactive duty training as a disability incurred in the line of
duty, and for providing special monthly compensation for the
service-connected loss of one or both breasts due to radical
mastectomy.

Congressional Budget Office Cost Estimate

The following letter was received from the Congressional
Budget Office concerning the cost of the reported bill:

U.S. Congress,
Congressional Budget Office,
Washington, DC, July 21, 2000.
Hon. Bob Stump,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.

Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4850, the Veterans
Benefits Act of 2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Evan
Christman and Michelle Patterson.
Sincerely,
Dan L. Crippen, Director.
Enclosure.

H.R. 4850--Veterans Benefits Act of 2000

Summary: H.R. 4850 contains provisions that would affect a
range of veterans' programs, including life insurance,
disability compensation, and dependency and indemnity
compensation. CBO estimates that enacting the bill would
increase direct spending by about $1 million in 2001, $6
million over the 2001-2005 period, and $17 million over the
2001-2010 period.
The bill also would increase the amounts paid to veterans
for disability compensation and to their survivors for
dependency and indemnity compensation by the same cost-of-
living adjustment (COLA) payable to Social Security recipients.
Because the COLA authorized by the bill is assumed in the
budget resolution baseline, the bill have no budgetary effect
relative to the baseline. Relative to current law, CBO
estimates that enacting this bill would increase spending for
these programs by about $349 million in 2001 and $465 million a
year thereafter.
Because H.R. 4850 would affect direct spending, pay-as-you-
go procedures would apply. H.R. 4850 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 4850 is shown in the following table.
The costs of the bill fall within budget function 700 (veterans
benefits and services).

Spending under current law for disability compensation:
Estimated budget authority............................ 18,893 19,801 20,577 21,279 21,960 24,447
Estimated outlays..................................... 18,816 19,719 20,505 21,215 21,898 24,377
Proposed changes:
Estimated budget authority............................ 0 1 1 1 1 2
Estimated outlays..................................... 0 1 1 1 1 2
Spending Under H.R. 4850 for disability compensation
Estimated budget authority............................ 18,893 19,802 20,578 21,280 21,961 24,449
Estimated outlays..................................... 18,816 19,720 20,506 21,216 21,899 24,379
----------------------------------------------------------------------------------------------------------------

Direct spending
The bill has four provisions that would affect direct
spending.
Cost of Living Adjustment.--Section 101 would increase the
amounts paid to veterans for disability compensation and to
their survivors for dependency and indemnity compensation by
the same COLA payable to Social Security recipients. The
increase would take effect on December 1, 2000, and the results
of the adjustment would be rounded to the next lower dollar.
The COLA that would be authorized by this bill is assumed
in the budget resolution baseline, pursuant to section 257 of
the Balanced Budget and Emergency Deficit Control Act, and
savings from rounding it down were achieved by the Balanced
Budget Act of 1997 (Public Law 105-33). As a result, the bill
would have no budgetary effect relative to the baseline.
Relative to current law, CBO estimates that enacting this bill
would increase spending for these programs by about $349
million in 2001 and $465 million a year thereafter. This
estimate assumes that the COLA effective on December 1, 2000,
would be 2.4 percent.
Disability Benefits for Certain Members of the Reserves.--
Section 201 would extend eligibility for certain veterans'
benefits to members of the National Guard and the other reserve
components if they suffer a stroke or heart attack during
inactive-duty training. (Inactive-duty training generally means
the training reservists and guardsmen do onweekends.) Under
current law, guardsmen and reservists who sustain an injury during
inactive-duty training are eligible for certain veterans' benefits.
They are not eligible, however, to receive disability compensation for
a disease condition that is incurred or aggravated during such
training. H.R. 4850 would require the Department of Veterans Affairs
(VA) to treat claims for strokes or heart attacks that occur during
inactive-duty training, or during travel to and from training duty, as
it would an injury. Reservists or guardsmen who suffer one of those
conditions would become eligible for various veterans' benefits and
services. Their survivors would also become eligible for benefits. CBO
estimates that added annual costs for veterans' entitlements, mainly
disability compensation, would be less than $500,000 initially and
would gradually grow to about $2 million by 2010.
Information about the incidence of heart attack or stroke
during inactive-duty training is limited. Based on data from
the Department of Defense (DoD), CBO estimates that each year
about 10 members of the reserve components would meet the
requirements for benefits under the bill and that about 200
individuals would be eligible at the start of 2000. CBO assumes
that one-fourth of the initial 200 potential beneficiaries
would apply and receive benefits. We expect that participation
would be limited for that group for two reasons. First, many of
those veterans would not apply because they would not become
aware of any change in benefits. (Participation among newly
eligible beneficiaries in the future would be nearly 100
percent.) Second, CBO believes that about 30 percent of the
individuals covered by the bill already receive disability
benefits from DoD and would be precluded under current law from
receiving the VA benefit concurrently. Because CBO expects that
their annuity from DoD would exceed the benefit from VA, CBO
does not estimate an additional cost for those people.
CBO estimates that 23 to 43 survivors would receive a
benefit each year over the 2001-2010 period, assuming
participation rates are similar to those for veterans.
Survivors at the time of enactment would participate at a lower
rate than survivors in later years.
Based on data from VA, CBO estimates that the average
disability payment under the bill for a veteran would be about
$8,000 a year and that the average benefit for a survivor would
be about $12,000. Both benefits are assumed to increase by an
annual cost-of-living adjustment.
Compensation Related to Radical Mastectomy.--Section 202
would provide additional disability compensation to veterans
who suffer a service-connected loss of one or both breast due
to a mastectomy. Under current law, veterans who lose certain
body parts or sensory or vocal capabilities because of a
service-connected condition are entitled to special monthly
compensation of $76 a month in 2000 for each eligible
impairment. (Current law does not provide an automatic annual
cost-of-living adjustment. However, one is usually provided in
legislation each year, and current law calls for CBO to assume
an adjustment to the baseline. Consequently, CBO assumes an
annual adjustment for purposes of this estimate.) H.R. 4850
would authorize these special payments for veterans who have
lost one or both breasts due to a radical or modified radical
mastectomy that is related to a service-connected condition.
CBO estimates that about 350 veterans are currently
receiving disability payments for these type of mastectomies,
and based on data from VA, about 35 new beneficiaries are added
every year. Over the 2001-2004 period, the new payments would
cost less than $500,000 annually. From 2005 through 2010,
annual spending would be over $500,000 but less than $1
million.
Servicemembers' Group Life Insurance.--All individuals on
active duty and members of the National Guard and Selected
Reserve are currently eligible for Servicemembers' Group Life
Insurance (SGLI). Enrolled service members pay a monthly
premium and can opt for coverage up to $200,000. Once
servicemembers leave the service, they may continue coverage
under the Veterans' Group Life Insurance program. Section 301
would extend eligibility for SGLI to certain members of the
Individual Ready Reserve (IRR).
Under current law, the Department of Defense may offer
members of the IRR the option to be placed in a mobilization
category that makes them eligible to be called to active duty.
Veterans can remain in this category for up to two years from
the date they left the service. According to information from
DoD, about 200 people are in this mobilization category at any
one time. H.R. 4850 would make the veterans in this
mobilization category eligible for life insurance under the
SGLI program. Based on expected mortality among individuals in
this group and the current size of the program, CBO estimates
that the cost of this provision would be less than $500,000 a
year.
Spending subject to appropriation
Veterans who have service-connected disabilities are also
eligible to enroll with a relatively high priority for medical
care from VA. Section 201 would increase the number of veterans
eligible for such a priority. Because the number of veterans
affected by section 201 is small, and not all of them would
seek medical care from VA, CBO estimates that the costs to VA
for the added medical care would be insignificant.
Pay-as-you-go considerations: The Balance Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. The net
changes in outlays that are subject to pay-as-you-go procedures
are shown in the following table. For the purposes of enforcing
pay-as-you-go procedures, only the effects in the current year,
the budget year, and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays........................ 1 1 1 1 2 2 2 2 2 2
Changes in receipts....................... Not applicable
----------------------------------------------------------------------------------------------------------------

Intergovernmental and private-sector impact: H.R. 4850
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimate: CBO prepared estimates for three
bills that contain provisions that are similar or identical to
provisions in H.R. 4850. On June 23, 2000, CBO prepared a cost
estimate for H.R. 4131, which contained a provision on COLAs
comparable to section 101. On April 27, 2000, CBO prepared a
cost estimate for H.R. 3816, which contained a provision on
benefits for reservists who stuffer a stoke or heart attack
during inactive-duty training comparable to section 201 of H.R.
4850. On April 3, 2000, CBO prepared a cost estimate for H.R.
3998, which contained a provision for compensation for a
service-connected loss for one or both breasts comparable to
section 202 of H.R. 4850. The estimated cost of those three
bills and the corresponding sections of H.R. 4850 are the same.
Estimate prepared by: Federal costs: Evan Christman and
Michelle Patterson; impact on State, local, and tribal
governments: Susan Sieg Tompkins; impact on the private sector:
Rachel Schmidt.
Estimate approved by: Robert A. Sunshine, Assistant
Director for Budget Analysis.

Inflationary Impact Statement

The enactment of the reported bill would have no
inflationary impact.

Applicability to Legislative Branch

The reported bill would not be applicable to the
legislative branch under the Congressional Accountability Act,
Public Law 104-1, because the bill would only affect certain
Department of Veterans Affairs benefits recipients.

Statement of Federal Mandates

The reported bill would not establish a federal mandate
under the Unfunded Mandates Reform Act, Public Law 104-4.

Statement of Constitutional Authority

Pursuant to Article I, section 8 of the U.S. Constitution,
the reported bill would be authorized by Congress' power ``[T]o
provide for the common Defense and general Welfare of the
United States.''

Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

TITLE 38, UNITED STATES CODE

* * * * * * *

PART I--GENERAL PROVISIONS

* * * * * * *

CHAPTER 1--GENERAL

* * * * * * *

Sec. 101. Definitions

For the purposes of this title--
(1) * * *

* * * * * * *

[(24) The term ``active military, naval, or air service''
includes active duty, any period of active duty for training
during which the individual concerned was disabled or died from
a disease or injury incurred or aggravated in line of duty, and
any period of inactive duty training during which the
individual concerned was disabled or died from an injury
incurred or aggravated in line of duty.]
(24) The term ``active military, naval, or air service''
includes--
(A) active duty;
(B) any period of active duty for training during
which the individual concerned was disabled or died
from a disease or injury incurred or aggravated in line
of duty; and
(C) any period of inactive duty training during which
the individual concerned was disabled or died--
(i) from an injury incurred or aggravated in
line of duty; or
(ii) from an acute myocardial infarction, a
cardiac arrest, or a cerebrovascular accident
occurring during such training.

* * * * * * *

Sec. 106. Certain service deemed to be active service

(a) * * *

* * * * * * *

(d)(1) For the purposes of this title, any individual--
[(1)] (A) who, when authorized or required by
competent authority, assumes an obligation to perform
active duty for training or inactive duty training; and
[(2)] (B) who is disabled or dies from an injury or
covered disease incurred while proceeding directly to
or returning directly from such active duty for
training or inactive duty training, as the case may be;

shall be deemed to have been on active duty for training or
inactive duty training, as the case may be, at the time such
injury or covered disease was incurred.
(2) In determining whether or not such individual was so
authorized or required to perform such duty, and whether or not
such individual was disabled or died from injury or covered
disease so incurred, the Secretary shall take into account the
hour on which such individual began so to proceed or to return;
the hour on which such individual was scheduled to arrive for,
or on which such individual ceased to perform, such duty; the
method of travel employed; the itinerary; the manner in which
the travel was performed; and the immediate cause of disability
or death.
(3) Whenever any claim is filed alleging that the claimant is
entitled to benefits by reason of this subsection, the burden
of proof shall be on the claimant.
(4) For purposes of this subsection, the term ``covered
disease'' means any of the following:
(A) Acute myocardial infarction.
(B) A cardiac arrest.
(C) A cerebrovascular accident.

* * * * * * *

PART II--GENERAL BENEFITS

* * * * * * *

CHAPTER 11--COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR DEATH

* * * * * * *

SUBCHAPTER II--WARTIME DISABILITY COMPENSATION

* * * * * * *

Sec. 1114. Rates of wartime disability compensation

For the purposes of section 1110 of this title--
(a) * * *

* * * * * * *

(k) if the veteran, as the result of service-
connected disability, has suffered the anatomical loss
or loss of use of one or more creative organs, or one
or both breasts due to a radical mastectomy or modified
radical mastectomy, or one foot, or one hand, or both
buttocks, or blindness of one eye, having only light
perception, or has suffered complete organic aphonia
with constant inability to communicate by speech, or
deafness of both ears, having absence of air and bone
conduction, the rate of compensation therefor shall be
$76 per month for each such loss or loss of use
independent of any other compensation provided in
subsections (a) through (j) or subsection (s) of this
section but in no event to exceed $2,533 per month; and
in the event the veteran has suffered one or more of
the disabilities heretofore specified in this
subsection, in addition to the requirement for any of
the rates specified in subsections (l) through (n) of
this section, the rate of compensation shall be
increased by $76 per month for each such loss or loss
of use, but in no event to exceed $3,553 per month;

* * * * * * *

CHAPTER 19--INSURANCE

* * * * * * *

SUBCHAPTER III--SERVICEMEMBERS' GROUP LIFE INSURANCE

Sec. 1965. Definitions

For the purpose of this subchapter--
(1) * * *

* * * * * * *

(5) The term ``member'' means--
(A) * * *
(B) a person who volunteers for assignment to
the Ready Reserve of a uniformed service and is
assigned to a unit or position in which such
person may be required to perform active duty,
or active duty for training, and each year will
be scheduled to perform at least twelve periods
of inactive duty training that is creditable
for retirement purposes under chapter 1223 of
title 10 (or under chapter 67 of that title as
in effect before the effective date of the
Reserve Officer Personnel Management Act);
[and]
(C) a person who volunteers for assignment to
a mobilization category in the Individual Ready
Reserve, as defined in section 12304(i)(1) of
title 10; and
[(C)] (D) a member, cadet, or midshipman of
the Reserve Officers Training Corps while
attending field training or practice cruises.

* * * * * * *

Sec. 1967. Persons insured; amount

(a) Any policy of insurance purchased by the Secretary under
section 1966 of this title shall automatically insure against
death--
(1) * * *
(2) any member of the Ready Reserve of a uniformed
service who meets the qualifications set forth in
[section 1965(5)(B) of this title] subparagraphs (B) or
(C) of section 1965(5) of this title;

in the amount of $200,000, unless such member elects in writing
(A) not to be insured under this subchapter, or (B) to be
insured in an amount less than $200,000 that is evenly
divisible by $10,000. The insurance shall be effective the
first day of active duty or active duty for training, or the
beginning of a period of inactive duty training scheduled in
advance by competent authority, or the first day a member of
the Ready Reserve meets the qualifications set forth in
[section 1965(5)(B) of this title] subparagraphs (B) or (C) of
section 1965(5) of this title, or the date certified by the
Secretary to the Secretary concerned as the date
Servicemembers' Group Life Insurance under this subchapter for
the class or group concerned takes effect, whichever is the
later date.

* * * * * * *

Sec. 1968. Duration and termination of coverage; conversion

(a) Each policy purchased under this subchapter shall contain
a provision, in terms approved by the Secretary, to the effect
that any insurance thereunder on any member of the uniformed
services, unless discontinued or reduced upon the written
request of the insured (or discontinued pursuant to section
1969(a)(2)(B) of this title), shall continue in effect while
the member is on active duty, active duty for training, or
inactive duty training scheduled in advance by competent
authority during the period thereof, or while the member meets
the qualifications set forth in [section 1965(5)(B) of this
title] subparagraphs (B) or (C) of section 1965(5) of this
title, and such insurance shall cease--
(1) * * *

* * * * * * *

(4) with respect to a member of the Ready Reserve of
a uniformed service who meets the qualifications set
forth in [section 1965(5)(B) of this title]
subparagraphs (B) or (C) of section 1965(5) of this
title, 120 days after separation or release from such
assignment, unless on the date of such separation or
release the member is totally disabled, under criteria
established by the Secretary, in which event the
insurance shall cease one year after the date of
separation or release from such assignment, or on the
date the insured ceases to be totally disabled,
whichever is the earlier date, but in no event before
the end of 120 days after separation or release from
such assignment.

* * * * * * *

Sec. 1969. Deductions; payment; investment; expenses

(a)(1) * * *
(2)(A) During any month in which a member is assigned to the
Ready Reserve of a uniformed service under conditions which
meet the qualifications of [section 1965(5)(B) of this title]
subparagraphs (B) or (C) of section 1965(5) of this title, or
is assigned to the Retired Reserve and meets the qualifications
of section 1965(5)(D) of this title, and is insured under a
policy of insurance purchased by the Secretary, under section
1966 of this title, there shall be contributed from the
appropriation made for active duty pay of the uniformed service
concerned an amount determined by the Secretary (which shall be
the same for all such members) as the share of the cost
attributable to insuring such member under this policy, less
any costs traceable to the extra hazards of such duty in the
uniformed services. Any amounts so contributed on behalf of any
individual shall be collected by the Secretary concerned from
such individual (by deduction from pay or otherwise) and shall
be credited to the appropriation from which such contribution
was made.

* * * * * * *