[Federal Register Volume 60, Number 69 (Tuesday, April 11, 1995)]
[Rules and Regulations]
[Pages 18354-18356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8887]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Parts 2 and 3
RIN 2900-AH36
Veterans' Benefits Improvements Act of 1994: To Implement
Provisions of Public Law 103-446
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: This document amends Department of Veterans Affairs (VA)
adjudication regulations to: Allow the election of death pension by
surviving spouses in receipt of dependency and indemnity compensation
(DIC); eliminate the requirement to pay certain benefits in Philippine
pesos; revise the treatment of certain claims after a renouncement of
benefits; and exclude from countable income in the pension and parents'
DIC programs certain income of Alaska natives. These changes are needed
to implement recently enacted legislation. The intended effect of these
changes is to bring the regulations into conformance with the new
statutory requirements.
EFFECTIVE DATE: These amendments are effective November 2, 1994, the
date that Public Law 103-446 was signed into law, except for the
provisions removing the requirement to pay certain benefits in
Philippine pesos (38 CFR 2.67a, 3.8, 3.100(b), 3.251(a)(3), and 3.1600)
which are effective January 1, 1995.
FOR FURTHER INFORMATION CONTACT: Paul Trowbridge, Consultant,
Regulations Staff (211B), Compensation and Pension Service, Veterans
Benefits Administration, 810 Vermont Avenue NW., Washington, DC 20420,
telephone (202) 273-7210.
SUPPLEMENTARY INFORMATION: On November 2, 1994, the Veterans' Benefits
Improvements Act of 1994 was signed into law. Formerly, no person in
receipt of DIC could elect to receive any other benefit based on the
same death. Section 111 of the Veterans' Benefits Improvements Act of
1994, Public Law 103-446, amended 38 U.S.C. 1317 to allow a surviving
spouse in receipt of DIC to elect death pension instead of such
compensation. VA is amending 38 CFR 3.5(c) and 3.702(d) to conform with
this new statutory provision. We have also made a nonsubstantive change
in Sec. 3.702(d) to clarify when an election of DIC is final.
Under the provisions of 38 U.S.C. 5306 any person can renounce a
benefit to which he or she is entitled. Until recently any new
application filed thereafter was treated as an original application.
Section 503 of Public Law 103-446 amended 38 U.S.C. 5306 by adding a
new subsection which provides that a new application for pension or
parents' DIC filed within one year after renouncement of that benefit
shall not be treated as an original application but rather that any
benefits due will be payable as if the renouncement has not occurred.
VA is amending 38 CFR 3.106 and 3.400(s) to conform to this new
statutory requirement.
All income is countable when VA determines entitlement to income-
based benefits unless specifically excluded by law. Section 506 of
Public Law 103-446 provides a new exception to countable income if
cash, stock, land, or other interests are received by an individual
from a Native Corporation under the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.). VA is amending 38 CFR 3.261, 3.262 and 3.272
to conform to this new statutory requirement.
Section 507 of Public Law 103-446 amended 38 U.S.C. 107 to
eliminate the requirement that compensation, DIC, or burial allowance
based on certain Philippine service deemed not to be active service for
other purposes be paid in Philippine pesos. VA is amending 38 CFR 3.8,
3.251(a)(3), and 3.1600 to conform to this statutory revision. VA is
removing Secs. 2.67a and 3.100(b) because, in light of the statutory
amendment, calculation of the annual income limitation in Philippine
pesos is not required and a delegation of authority to the Chief
Benefits Director for that purpose is no longer necessary.
VA is issuing a final rule to make the above described amendments.
These [[Page 18355]] amendments are necessary to conform regulatory
provisions with Public Law 103-446. Because these amendments merely
restate statutory changes, publication as a proposal for public comment
is unnecessary.
Administrative Procedure Act: This final rule merely restates
statutory changes contained in Public Law 103-446. Accordingly,
pursuant to 5 U.S.C. 553, there is a basis for dispensing with prior
notice and comment on this final rule and dispensing with a 30-day
delay of its effective date.
Regulatory Flexibility Act: Because no notice of proposed
rulemaking was required in connection with the adoption of this final
rule, no regulatory flexibility analysis is required under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
The Catalog of Federal Domestic Assistance program numbers are
64.101, 64.104, 64.105, 64.109, and 64.110.
List of Subjects
38 CFR Part 2
Authority delegations (Government agencies), Veterans Affairs
Department.
38 CFR Part 3
Administrative practice and procedure, Claims, Health care,
Individuals with disabilities, Pensions, Veterans.
Approved: March 31, 1995.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set out in the preamble, 38 CFR parts 2 and 3 are
amended as set forth below:
PART 2--DELEGATIONS OF AUTHORITY
1. The authority citation for part 2 continues to read as follows:
Authority: 38 U.S.C. 501, 512(a), unless otherwise noted.
Sec. 2.67a [Removed]
2. Section 2.67a is removed.
PART 3--ADJUDICATION
Subpart A--Pension, Compensation, and Dependency and Indemnity
Compensation
1. The authority citation for part 3, subpart A, continues to read
as follows:
Authority: 38 U.S.C. 501(a), unless otherwise noted.
Sec. 3.5 [Amended]
2. In Sec. 3.5(c) change the period after ``Affairs'' to a comma
and add the following: ``except that, effective November 2, 1994, a
surviving spouse who is receiving dependency and indemnity compensation
may elect to receive death pension instead of such compensation.''
Sec. 3.8 [Amended]
3. In Sec. 3.8(b) and Sec. 3.8(c)(1) remove ``in Philippine pesos
equivalent to'' and add ``of'', in its place.
4. In Sec. 3.8(e) remove ``a peso basis'' and add, in its place,
``a $0.50 for each dollar authorized basis''. Remove ``payable in
pesos.'' and add, in its place, ``payable at the rate of $0.50 for each
dollar authorized.''
Sec. 3.100 [Amended]
5. Section 3.100(b) is removed. Redesignate Sec. 3.100(c) as
Sec. 3.100(b).
6. In Sec. 3.106, redesignate paragraphs (c) and (d) as paragraphs
(d) and (e), respectively. Add a new paragraph (c) to read as follows:
Sec. 3.106 Renouncement.
* * * * *
(c) Notwithstanding the provisions of paragraph (b) of this
section, if a new application for pension or parents' dependency and
indemnity compensation is filed within one year after the date that the
Department of Veterans Affairs receives a renouncement of that benefit,
such application shall not be treated as an original application and
benefits will be payable as if the renouncement had not occurred.
(Authority: 38 U.S.C. 5306(c))
Sec. 3.251 [Amended]
7. In Sec. 3.251(a)(3), remove ``computed'' and ``in Philippine
pesos equivalent''.
8. In Sec. 3.261, paragraph (a)(39) is added to read as follows:
Sec. 3.261 Character of income; exclusions and estates.
* * * * *
(a) Income
* * * * *
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Pension; old-law Pension; section 306
Dependency and (veterans, surviving (veterans, surviving
Income Dependency (parents) indemnitycompensation(parents) spouses and spouses and See--
children) children)
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(39) Cash, stock, land or other Excluded............ Excluded...................... Excluded............ Excluded............ Sec. 3.262(x).
interests received from a
Native Corporation under the
Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.).
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* * * * *
9. In Sec. 3.262, paragraph (x) and its authority citation are
added as follows:
Sec. 3.262 Evaluation of income.
* * * * *
(x) Alaska Native Claims Settlement Act. There shall be excluded
from income computation any cash (including cash dividends on stock
received from a Native Corporation) to the extent that it does not, in
the aggregate, exceed $2,000 per individual per annum; stock (including
stock issued or distributed by a Native Corporation as a dividend or
distribution on stock); a partnership interest; land or an interest in
land (including land or an interest in land received from a Native
Corporation as a dividend or distribution on stock); and an interest in
a settlement trust. (November 2, 1994)
(Authority: Sec. 506, Pub. L. 103-446)
10. In Sec. 3.272, paragraph (t) and its authority citation are
added as follows:
Sec. 3.272 Exclusions from income.
* * * * *
(t) Alaska Native Claims Settlement Act. Any receipt by an
individual of cash (including cash dividends on stock received from a
Native Corporation) to the extent that it does not, in the aggregate,
exceed $2,000 per individual per annum; stock (including stock issued
or distributed by a Native Corporation as a dividend or distribution on
stock); a partnership interest; land or an interest in land (including
land or an interest in land [[Page 18356]] received from a Native
Corporation as a dividend or distribution on stock); and an interest in
a settlement trust. (November 2, 1994)
(Authority: Sec. 506, Pub. L. 103-446)
Sec. 3.400 [Amended]
11. In Sec. 3.400(s), remove ``Date'' and add, in its place,
``Except as provided in Sec. 3.106(c), date''.
12. In Sec. 3.702, paragraph (d) is revised as follows:
Sec. 3.702 Dependency and indemnity compensation.
* * * * *
(d) Finality of election.
(1) Except as noted in paragraph (d)(2), an election to receive
dependency and indemnity compensation is final and the claimant may not
thereafter reelect death pension or compensation in that case. An
election is final when the payee (or the payee's fiduciary) has
negotiated one check for this benefit or when the payee dies after
filing an election but prior to negotiation of a check.
(2) Notwithstanding the provisions of paragraph (d)(1), effective
November 2, 1994, a surviving spouse who is receiving dependency and
indemnity compensation may elect to receive death pension instead of
such compensation.
(Authority: 38 U.S.C. 1317)
* * * * *
Sec. 3.1600 [Amended]
13. In Sec. 3.1600, paragraphs (a), (b), and (f), remove the words
``in Philippine pesos''.
[FR Doc. 95-8887 Filed 4-10-95; 8:45 am]
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