[Federal Register Volume 68, Number 187 (Friday, September 26, 2003)]
[Rules and Regulations]
[Pages 55466-55467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24304]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AL62


Compensation and Pension Provisions of the Veterans Benefits Act 
of 2002

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
adjudication regulations to reflect the statutory provisions of the 
Veterans Benefits Act of 2002. These changes address entitlement to 
special monthly compensation for loss of breast tissue in a woman and 
increased pension payable to Medal of Honor recipients.

DATES: Effective Dates: In accordance with statutory provisions, the 
effective dates for the amendments in this final rule are as follows:
    The amendments to 38 CFR 3.350 and 38 CFR 3.802 are effective 
December 6, 2002.
    The amendments to 38 CFR 3.27 are effective September 1, 2003.

FOR FURTHER INFORMATION CONTACT: Cheryl Konieczny, Compensation and 
Pension Service, Veterans Benefits Administration, 810 Vermont Avenue, 
NW., Washington, DC, 20420, telephone (202) 273-6779.

SUPPLEMENTARY INFORMATION: On December 6, 2002, the Veterans Benefits 
Act of 2002, Pub. L. 107-330 (the Act), was enacted. Certain provisions 
of the Act directly affect the payment of VA compensation or pension 
benefits. These provisions concern special monthly compensation for 
loss of breast tissue in a woman and the amount of pension payable to 
Medal of Honor recipients.
    Section 102 of the Act amended 38 U.S.C. 1114(k) to authorize 
special monthly compensation to women veterans for loss of 25% or more 
of tissue from a single breast or both breasts in combination, 
including loss by mastectomy or partial mastectomy, or following 
receipt of radiation treatment of breast tissue. In this document we 
are amending 38 CFR 3.350(a) to reflect that change. We are deleting 38 
CFR 3.350(a)(7) because the change to 38 CFR 3.350(a) makes it no 
longer necessary to define the term ``anatomical loss of one or both 
breasts.''
    Section 304 of the Act amended 38 U.S.C. 1562 to provide for an 
annual increase in the Medal of Honor pension effective December 1 of 
each year, beginning December 1, 2004, by a percentage equal to the 
cost of living adjustment of benefits paid under Title II of the Social 
Security Act. This document amends 38 CFR 3.27 to reflect that change. 
Section 304 also provides for a retroactive lump sum payment of the 
Medal of Honor pension from the first day of the month after the date 
of the event for which the veteran earned the Medal of Honor for 
current as well as future recipients of the special pension. This 
document amends 38 CFR 3.802 to reflect that change. In accordance with 
the Act, no retroactive lump sum payment can be made prior to October 
1, 2003.
    When Congress does not specify an effective date for a statutory 
provision, the effective date is the date of enactment. In section 102 
of the Act, because Congress did not specify an effective date for the 
amendment to 38 U.S.C. 1114(k), that amendment was effective December 
6, 2002, the date of enactment of the Act. Similarly, in section 304 of 
the Act, Congress did not specify an effective date for the amendment 
to 38 U.S.C. 1562 authorizing a retroactive lump sum payment for the 
Medal of Honor pension, and the amendment was effective December 6, 
2002. For certain provisions of the Act, however, Congress specifically 
provided effective dates that are different from the date of enactment 
of the Act. In paragraph (d)(1) of section 304 of the Act, Congress 
specified that the amendment to 38 U.S.C. 1562 authorizing an annual 
increase in the Medal of Honor pension would be effective September 1, 
2003.
    For certain provisions in the Act, the effective date of the 
provision governs the date on which benefit eligibility can arise. For 
instance, section 102 of the Act authorizes, as of December 6, 2002, 
special monthly compensation for women veterans who suffered the ``loss 
of 25 percent or more of tissue from a single breast or both breasts in 
combination (including loss by mastectomy or partial mastectomy) or has 
received radiation treatment of breast tissue.'' For certain other 
provisions, Congress provided that, although the amendment was 
effective immediately, benefit eligibility would not arise until a 
later date. In paragraph (d)(2) of section 304 of the Act, Congress 
specified that VA would not make any annual adjustment to the monthly 
Medal of Honor pension in 2003. Therefore, the first annual adjustment 
would be made on December 1, 2004. Also, in paragraph (d)(1) of section 
304, Congress specifically noted that no retroactive lump sum payment 
of the Medal of Honor pension would be made prior to October 1, 2003. 
These effective dates and rules governing eligibility are reflected in 
the effective-date and substantive provisions of this notice.

Administrative Procedure Act

    Changes made by this final rule merely reflect new statutory 
provisions. Accordingly, there is a basis for dispensing with prior 
notice and comment and delayed effective date provisions of 5 U.S.C. 
552 and 553.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector, of 
$100 million or more in any given year. This rule will have no such 
effect on State, local, or tribal governments, or the private sector.

Executive Order 12866

    The Office of Management and Budget has reviewed this document 
under Executive Order 12866.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).

Regulatory Flexibility Act

    The Secretary hereby certifies that the adoption of this final rule 
will not have a significant economic impact on a substantial number of 
small entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The final rule does not affect any small entities. Only 
individuals could be directly affected. Therefore, pursuant to 5 U.S.C. 
605(B), this final rule is exempt from the initial and final regulatory 
flexibility analysis requirements of sections 603 and 604.

[[Page 55467]]

Catalog of Federal Domestic Assistance Program Numbers

    The Catalog of Federal Domestic Assistance program number for this 
rule is 64.109.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedures, Claims, Disability 
benefits, Health care, Pensions, Veterans, Vietnam.

    Approved: July 9, 2003.
Anthony J. Principi,
Secretary of Veterans Affairs.


0
For the reasons set forth in the preamble, 38 CFR Part 3 is amended as 
follows:

PART 3--ADJUDICATION

Subpart A--Pension, Compensation, and Dependency and Indemnity 
Compensation

0
1. The authority citation for part 3, subpart A continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), unless otherwise noted.


0
2. Section 3.27 is amended by:
0
a. Redesignating paragraph (d) as paragraph (e), and adding a new 
paragraph (d).
0
b. In newly designated paragraph (e), removing ``and the monthly'' and 
adding in its place ``the monthly''; and removing ``chapter 18'' and 
adding in its place ``chapter 18 and the Medal of Honor pension'' .
0
The added text reads as follows:


Sec.  3.27  Automatic adjustment of benefit rates.

* * * * *
    (d) Medal of Honor pension. Beginning in the year 2004, VA shall, 
effective December 1 of each year, increase the monthly Medal of Honor 
pension by the same percentage as the percentage by which benefit 
amounts payable under section 215(i) of Title II of the Social Security 
Act are increased effective December 1 of such year.

(Authority: 38 U.S.C. 1562(e))

* * * * *


Sec.  3.350  [Amended]

0
3. Section 3.350 is amended by:
0
a. In paragraph (a) introductory text, removing ``the anatomical loss 
of one or both breasts (including loss by mastectomy).'' and adding, in 
its place, ``loss of 25% or more of tissue from a single breast or both 
breasts in combination (including loss by mastectomy or partial 
mastectomy), or following receipt of radiation treatment of breast 
tissue.''
0
b. Removing paragraph (a)(7) and the authority citation at the end of 
the section.

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4. Section 3.802 is amended by adding paragraph (c) immediately 
following the authority citation at the end of the section:


Sec.  3.802  Medal of Honor.

* * * * *
    (c) VA will pay to each person who is receiving or who in the 
future receives Medal of Honor pension a retroactive lump sum payment 
equal to the total amount of Medal of Honor pension that person would 
have received during the period beginning the first day of the month 
after the date of the event for which the veteran earned the Medal of 
Honor and ending on the last day of the month preceding the month in 
which pension was awarded under paragraph (b) of this section. VA will 
calculate the lump sum payment using the monthly Medal of Honor pension 
rates in effect from the first day of the month after the date of the 
event for which the veteran earned the Medal of Honor, to the last day 
of the month preceding the month in which the individual was initially 
awarded the Medal of Honor pension. VA will not make a retroactive lump 
sum payment under this section before October 1, 2003.

(Authority: 38 U.S.C. 1562(f))


[FR Doc. 03-24304 Filed 9-25-03; 8:45 am]
BILLING CODE 8320-01-P