[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29892]


[[Page Unknown]]

[Federal Register: December 6, 1994]


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DEPARTMENT OF VETERANS AFFAIRS

 

Cost-of-Living Adjustments and Headstone or Marker Allowance Rate

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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SUMMARY: As required by law, the Department of Veterans Affairs (VA) is 
hereby giving notice of cost-of-living adjustments (COLAs) in certain 
benefit rates and income limitations. These COLAs affect the pension 
and parents' dependency and indemnity compensation (DIC) programs. 
These adjustments are based on the rise in the Consumer Price Index 
(CPI) during the one-year period ending September 30, 1994. VA is also 
giving notice of the maximum amount of reimbursement that may be paid 
for headstones or markers purchased in lieu of Government-furnished 
headstones or markers in Fiscal Year 1995 which began on October 1, 
1994.

DATES: These COLAs are effective December 1, 1994. The headstone or 
marker allowance rate is effective October 1, 1994.

FOR FURTHER INFORMATION CONTACT:
Paul Trowbridge, Consultant, Regulations Staff, Compensation and 
Pension Service (211B), Veterans Benefits Administration, Department of 
Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, (202) 
273-7210.

SUPPLEMENTARY INFORMATION: Under 38 U.S.C. 2306(d), VA may provide 
reimbursement for the cost of non-Government headstones or markers at a 
rate equal to the actual cost or the average actual cost of Government-
furnished headstones or markers during the fiscal year preceding the 
fiscal year in which the non-Government headstone or marker was 
purchased, whichever is less.
    Section 8041 of Pub. L. 101-508 amended 38 U.S.C. 2306(d) to 
eliminate the payment of the monetary allowance in lieu of VA-provided 
headstone or marker for deaths occurring on or after November 1, 1990. 
However, in a precedent opinion (O.G.C. Prec. 17-90), VA General 
Counsel held that there is no limitation period applicable to claims 
for benefits under the provisions of 38 U.S.C. 2306(d).
    The average actual cost of Government-furnished headstones or 
markers during any fiscal year is determined by dividing the sum of VA 
costs during that fiscal year for procurement, transportation, Office 
of Memorial Programs and miscellaneous administration, inspection and 
support staff by the total number of headstones and markers procured by 
VA during that fiscal year and rounding to the nearest whole dollar 
amount.
    The average actual cost of Government-furnished headstones or 
markers for Fiscal Year 1994 under the above computation method was 
$100. Therefore, effective October 1, 1994, the maximum rate of 
reimbursement for non-Government headstones or markers purchased during 
Fiscal Year 1995 is $100.

Cost-of-Living Adjustments

    Under the provisions of 38 U.S.C. 5312 and section 306 of Pub. L. 
95-588, VA is required to increase the benefit rates and income 
limitations in the pension and parents' DIC programs by the same 
percentage, and effective the same date, as increases in the benefit 
amounts payable under title II of the Social Security Act. The 
increased rates and income limitations are also required to be 
published in the Federal Register.
    The Social Security Administration has announced that there will be 
a 2.8 percent cost-of-living increase in social security benefits 
effective December 1, 1994. Therefore, applying the same percentage, 
the following increased rates and income limitations for the VA pension 
and parents' DIC programs will be effective December 1, 1994:

                       Table 1.--Improved Pension                       
Maximum annual rates:                                                   
    (1) Veterans permanently and totally disabled (38 U.S.C. 1521):     
      Veteran with no dependents, $8,037                                
      Veteran with one dependent, $10,527                               
      For each additional dependent, $1,368                             
    (2) Veterans in need of aid and attendance (38 U.S.C. 1521):        
      Veteran with no dependents, $12,855                               
      Veteran with one dependent, $15,345                               
      For each additional dependent, $1,368                             
    (3) Veterans who are housebound (38 U.S.C. 1521):                   
      Veteran with no dependents, $9,824                                
      Veteran with one dependent, $12,313                               
      For each additional dependent, $1,368                             
    (4) Two veterans married to one another, combined rates (38 U.S.C.  
     1521):                                                             
      Neither veteran in need of aid and attendance or housebound,      
       $10,527                                                          
      Either veteran in need of aid and attendance, $15,345             
      Both veterans in need of aid and attendance, $20,161              
      Either veteran housebound, $12,313                                
      Both veterans housebound, $14,102                                 
      One veteran housebound and one veteran in need of aid and         
       attendance, $17,129                                              
      For each dependent child, $1,368                                  
    (5) Surviving spouse alone and with a child or children of the      
     deceased veteran in custody of the surviving spouse (38 U.S.C.     
     1541):                                                             
      Surviving spouse alone, $5,386                                    
      Surviving spouse and one child in his or her custody, $7,056      
      For each additional child in his or her custody, $1,368           
    (6) Surviving spouses in need of aid and attendance (38 U.S.C.      
     1541):                                                             
      Surviving spouse alone, $8,615                                    
      Surviving spouse with one child in his or her custody, $10,280    
      Each each additional child in his or her custody, $1,368          
    (7) Surviving spouses who are housebound (38 U.S.C. 1541):          
      Surviving spouse alone, $6,586                                    
      Surviving spouse and one child in his or her custody, $8,251      
      For each additional child in his or her custody, $1,368           
    (8) Surviving child alone (38 U.S.C. 1542), $1,368                  
    Reduction for income. The rate payable is the applicable maximum    
     rate minus the countable annual income of the eligible person. (38 
     U.S.C. 1521, 1541 and 1542).                                       
  Mexican border period and World War I veterans. The applicable maximum
   annual rate payable to a Mexican border period or World War I veteran
   under this table shall be increased by $1,819. (38 U.S.C. 1521(g))   
                                                                        

    Parents' DIC:
    DIC shall be paid monthly to parents of a deceased veteran in the 
following amounts (38 U.S.C. 1315):

                                 TABLE 2                                
 [One parent. If there is only one parent, the monthly rate of DIC paid 
to such parent shall be $381 reduced on the basis of the parent's annual
income according to the following formula:] For each $1 of annual income
------------------------------------------------------------------------
  The $381 monthly rate shall be      Which is more                     
            reduced by                     than        But not more than
------------------------------------------------------------------------
$0.00.............................                  0               $800
.08...............................                800              9,143
------------------------------------------------------------------------


    No DIC is payable under this table if annual income exceeds $9,143.
    One parent who has remarried. If there is only one parent and the 
parent has remarried and is living with the parent's spouse, DIC shall 
be paid under Table 2 or under Table 4, whichever shall result in the 
greater benefit being paid to the veteran's parent. In the case of 
remarriage, the total combined annual income of the parent and the 
parent's spouse shall be counted in determining the monthly rate of 
DIC.
    Two parents not living together. The rates in Table 3 apply to (1) 
two parents who are not living together, or (2) an unmarried parent 
when both parents are living and the other parent has remarried. The 
monthly rate of DIC paid to each such parent shall be $273 reduced on 
the basis of each parent's annual income, according to the following 
formula:

                                 Table 3                                
                     [For each $1 of annual income]                     
------------------------------------------------------------------------
  The $273 monthly rate shall be      Which is more                     
            reduced by                     than        But not more than
------------------------------------------------------------------------
$0.00.............................                  0               $800
.06...............................               $800                900
.07...............................                900              1,100
.08...............................              1,100              9,143
------------------------------------------------------------------------


    No DIC is payable under this table if annual income exceeds $9,143.
    Two parents living together or remarried parents living with 
spouses. The rates in Table 4 apply to each parent living with another 
parent; and each remarried parent, when both parents are alive. The 
monthly rate of DIC paid to such parents will be $257 reduced on the 
basis of the combined annual income of the two parents living together 
or the remarried parent or parents and spouse or spouses, as computed 
under the following formula:

                                 Table 4                                
                     [For each $1 of annual income]                     
------------------------------------------------------------------------
  The $257 monthly rate shall be      Which is more                     
            reduced by                     than        But not more than
------------------------------------------------------------------------
$0.00.............................                  0             $1,000
.03...............................             $1,000              1,500
.04...............................              1,500              1,900
.05...............................              1,900              2,400
.06...............................              2,400              2,900
.07...............................              2,900              3,200
.08...............................              3,200             12,291
------------------------------------------------------------------------


    No DIC is payable under this table if combined annual income 
exceeds $12,291.
    The rates in this table are also applicable in the case of one 
surviving parent who has remarried, computed on the basis of the 
combined income of the parent and spouse, if this would be a greater 
benefit than that specified in Table 2 for one parent.
    Aid and attendance. The monthly rate of DIC payable to a parent 
under Tables 2 through 4 shall be increased by $203 if such parent is 
(1) a patient in a nursing home, or (2) helpless or blind, or so nearly 
helpless or blind as to need or require the regular aid and attendance 
of another person.
    Minimum rate. The monthly rate of DIC payable to any parent under 
Tables 2 through 4 shall not be less than $5.

            Table 5.--Section 306 Pension Income Limitations            
                                                                        
                                                                        
                                                                         
(1) Veteran or surviving spouse with no dependents, $9,143 (Pub. L. 95- 
 588, section 306(a)).                                                  
(2) Veteran with no dependents in need of aid and attendance, $9,735 (38
 U.S.C. 1521(d) as in effect on December 31, 1978).                     
(3) Veteran or surviving spouse with one or more dependents, $12,291    
 (Pub. L. 95-588, Section 306(a)).                                      
(4) Veteran with one or more dependents in need of aid and attendance,  
 $12,885 (38 U.S.C. 1521(d) as in effect on December 31, 1978).         
(5) Child (no entitled veteran or surviving spouse), $7,473 (Pub. L. 95-
 588, Section 306(a)).                                                  
(6) Spouse income exclusion (38 CFR 3.262), $2,916 (Pub. L. 95-588,     
 section 306(a)(2)(B)).                                                 
                                                                        


              Table 6.--Old-Law Pension Income Limitations              
                                                                        
                                                                        
                                                                         
(1) Veteran or surviving spouse without dependents or an entitled child,
 $8,002 (Pub. L. 95-588, section 306(b)).                               
(2) Veteran or surviving spouse with one or more dependents, $11,539    
 (Pub. L. 95-588, section 306(b)).                                      
                                                                        

    Dated November 30, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
[FR Doc. 94-29892 Filed 12-5-94; 8:45 am]
BILLING CODE 8320-01-M