[Federal Register Volume 66, Number 60 (Wednesday, March 28, 2001)]
[Notices]
[Pages 16976-16979]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7619]


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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

[[Page 16977]]

rates and income limitations. These COLAs affect the pension, parents' 
dependency and indemnity compensation (DIC), and spina bifida programs. 
These adjustments are based on the rise in the Consumer Price Index 
(CPI) during the one year period ending September 30, 2000. 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 2001, which began on October 1, 
2000.

DATES: These COLAs are effective December 1, 2000. The headstone or 
marker allowance rate is effective October 1, 2000.

FOR FURTHER INFORMATION CONTACT: Paul Trowbridge, Consultant, 
Compensation and Pension Service (212A), Veterans Benefit 
Administration, Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, (202) 273-7218.

SUPPLEMENTARY INFORMATION: Under 38 U.S.C. 2306(d), VA may provide 
reimbursement for the cost of non-Government headstones or markers in 
an amount equal to the actual cost of the non-Government headstone or 
marker 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 Public Law 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's 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, 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 2000 under the above computation method was 
$94. Therefore, effective October 1, 2000, the maximum rate of 
reimbursement for non-Government headstones or markers purchased during 
Fiscal Year 2001 is $94.

Cost of Living Adjustments

    Under the provisions of 38 U.S.C. 5312 and section 306 of Public 
Law 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 3.5 percent cost-of-living increase in Social Security benefits 
effective December 1, 2000. Therefore, applying the same percentage and 
rounding up in accordance with 38 CFR 3.29, the following increased 
rates and income limitations for the VA pension and parents' DIC 
programs will be effective December 1, 2000:

                                           Table 1.--Improved Pension
----------------------------------------------------------------------------------------------------------------
 
-----------
  Maximum
  annual
   rates
-----------
(1)
 Veterans
 permanent
 ly and
 totally
 disabled
 (38
 U.S.C.
 1521):
    Vetera
     n
     with
     no
     depen
     dents
     ,
     $9,30
     4
    Vetera
     n
     with
     one
     depen
     dent,
     $12,1
     86
    For
     each
     addit
     ional
     depen
     dent,
     $1,58
     6
(2)
 Veterans
 in need
 of aid
 and
 attendanc
 e (38
 U.S.C.
 1521):
    Vetera
     n
     with
     no
     depen
     dents
     ,
     $15,5
     24
    Vetera
     n
     with
     one
     depen
     dent,
     $18,4
     05
    For
     each
     addit
     ional
     depen
     dent,
     $1,58
     6
(3)
 Veterans
 who are
 houseboun
 d (38
 U.S.C.
 1521):
    Vetera
     n
     with
     no
     depen
     dents
     ,
     $11,3
     72
    Vetera
     n
     with
     one
     depen
     dent,
     $14,2
     53
    For
     each
     addit
     ional
     depen
     dent,
     $1,58
     6
(4) Two
 veterans
 married
 to one
 another,
 combined
 rates (38
 U.S.C.
 1521):
    Neithe
     r
     veter
     an in
     need
     of
     aid
     and
     atten
     dance
     or
     house
     bound
     ,
     $12,1
     86
    Either
     veter
     an in
     need
     of
     aid
     and
     atten
     dance
     ,
     $18,4
     05
    Both
     veter
     ans
     in
     need
     of
     aid
     and
     atten
     dance
     ,
     $23,9
     79
    Either
     veter
     an
     house
     bound
     ,
     $14,2
     53
    Both
     veter
     ans
     house
     bound
     ,
     $16,3
     22
    One
     veter
     an
     house
     bound
     and
     one
     veter
     an in
     need
     of
     aid
     and
     atten
     dance
     ,
     $20,4
     70
    For
     each
     depen
     dent
     child
     ,
     $1,58
     6
(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):
    Surviv
     ing
     spous
     e
     alone
     ,
     $6,23
     7
    Surviv
     ing
     spous
     e and
     one
     child
     in
     his
     or
     her
     custo
     dy,
     $8,16
     8
    For
     each
     addit
     ional
     child
     in
     his
     or
     her
     custo
     dy,
     $1,58
     6
(6)
 Surviving
 spouses
 in need
 of aid
 and
 attendanc
 e (38
 U.S.C.
 1541):
    Surviv
     ing
     spous
     e
     alone
     ,
     $9,97
     3
    Surviv
     ing
     spous
     e
     with
     one
     child
     in
     custo
     dy,
     $11,9
     00
    Surviv
     ing
     Spous
     e of
     Spani
     sh-
     Ameri
     can
     War
     veter
     an
     alone
     ,
     $10,6
     18
    Surviv
     ing
     Spous
     e of
     Spani
     sh-
     Ameri
     can
     War
     veter
     an
     with
     one
     child
     in
     custo
     dy,
     $12,5
     44
    For
     each
     addit
     ional
     child
     in
     his
     or
     her
     custo
     dy,
     $1,58
     6
(7)
 Surviving
 spouses
 who are
 houseboun
 d (38
 U.S.C.
 1541):
    Surviv
     ing
     spous
     e
     alone
     ,
     $7,62
     5
    Surviv
     ing
     spous
     e and
     one
     child
     in
     his
     or
     her
     custo
     dy,
     $9,55
     1
    For
     each
     addit
     ional
     child
     in
     his
     or
     her
     custo
     dy,
     $1,58
     6
(8)
 Surviving
 child
 alone (38
 U.S.C.
 1542),
 $1,586
----------------------------------------------------------------------------------------------------------------


[[Page 16978]]

    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 $2,109. (38 U.S.C. 
1521(g))

Parent's 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 $445 reduced on the basis of the parent's annual
 income according to the following formula:
For each $1 of annual income:
 
                          The $445 Monthly Rate
------------------------------------------------------------------------
         Shall be reduced by            Which is more     But not more
                                            than              than
------------------------------------------------------------------------
$0.00...............................                 0              $800
.08.................................              $800            10,584
------------------------------------------------------------------------

    No DIC is payable under this table if annual income exceeds 
$10,584.
    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 $320 reduced on 
the basis of each parent's annual income, according to the following 
formula:

                                 Table 3
------------------------------------------------------------------------
 
------------------------------------------------------------------------
For each $1 of annual income:
                          The $320 Monthly Rate
------------------------------------------------------------------------
         Shall be reduced by            Which is more     But not more
                                            than              than
------------------------------------------------------------------------
$0.00...............................                 0              $800
.06.................................              $800               900
.07.................................               900             1,100
.08.................................             1,100            10,584
------------------------------------------------------------------------

    No DIC is payable under this table if annual income exceeds 
$10,584.
    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 $300 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 $300 monthly rate
------------------------------------------------------------------------
         Shall be reduced by            Which is more     But not more
                                            than              than
------------------------------------------------------------------------
$.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            14,228
------------------------------------------------------------------------

    No DIC is payable under this table if combined annual income 
exceeds $14,228.
    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 $239 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.

[[Page 16979]]

    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, $10,584 (Pub. L. 95-
 588, section 306(a)).
(2) Veteran with no dependents in need of aid and attendance, $11,084
 (38 U.S.C. 1521(d) as in effect on December 31, 1978).
(3) Veteran or surviving spouse with one or more dependents, $14,228
 (Pub. L. 95-588, section 306(a)).
(4) Veteran with one or more dependents in need of aid and attendance,
 $14,728 (38 U.S.C. 1521(d) as in effect on December 31, 1978).
(5) Child (no entitled veteran or surviving spouse), $8,651 (Pub. L. 95-
 588, section 306(a)).
(6) Spouse income exclusion (38 CFR 3.262), $3,377 (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,
 $9,265 (Pub. L. 95-588, section 306(b)).
(2) Veteran or surviving spouse with one or more dependents, $13,357
 (Pub. L. 95-588, section 306(b)).
------------------------------------------------------------------------

Spina Bifida Benefits

    Section 421 of Public Law 104-204 added a new chapter 18 to title 
38, United States Code, authorizing VA to provide certain benefits, 
including a monthly monetary allowance, to children born with spina 
bifida who are natural children of veterans who served in the Republic 
of Vietnam during the Vietnam era. Pursuant to 38 U.S.C. 1805(b)(3), 
spina bifida rates are subject to adjustment under the provisions of 38 
U.S.C. 5312, which provides for the adjustment of certain VA benefit 
rates whenever there is an increase in benefit amounts payable under 
title II of the Social Security Act (42 U.S.C. 401 et seq.). Effective 
December 1, 2000, spina bifida monthly rates are as follows:

Level I--$221
Level II--$770
Level III--$1,317

    Dated: March 19, 2001.
Anthony J. Principi,
Secretary of Veterans Affairs.
[FR Doc. 01-7619 Filed 3-27-01; 8:45 am]
BILLING CODE 8320-01-P