[Federal Register Volume 70, Number 102 (Friday, May 27, 2005)]
[Notices]
[Pages 30836-30838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10609]


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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, 
parents' dependency and indemnity compensation (DIC), spina bifida, and 
birth defects programs. These adjustments are based on the rise in the 
Consumer Price Index (CPI) during the one year period ending September 
30, 2004. VA is also giving notice of the

[[Page 30837]]

maximum amount of reimbursement that may be paid for headstones or 
markers purchased in lieu of Government-furnished headstones or markers 
in Fiscal Year 2005, which began on October 1, 2004.

DATES: These COLAs are effective December 1, 2004. The headstone or 
marker allowance rate is effective October 1, 2004.

FOR FURTHER INFORMATION CONTACT: Pamela C. Liverman, Consultant, 
Compensation and Pension Service (212A), Veterans Benefits 
Administration, Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, (757) 858-6148, ext. 107.

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'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 2004 under the above computation method was 
$113. Therefore, effective October 1, 2004, the maximum rate of 
reimbursement for non-Government headstones or markers purchased during 
Fiscal Year 2005 is $113.

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 2.7 percent cost-of-living increase in Social Security benefits 
effective December 1, 2004. 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, 2004:

Table 1.--Improved Pension

Maximum Annual Rates

(1) Veterans permanently and totally disabled (38 U.S.C. 1521):
    Veteran with no dependents, $10,162
    Veteran with one dependent, $13,309
    For each additional dependent, $1,734
(2) Veterans in need of aid and attendance (38 U.S.C. 1521):
    Veteran with no dependents, $16,955
    Veteran with one dependent, $20,099
    For each additional dependent, $1,734
(3) Veterans who are housebound (38 U.S.C. 1521):
    Veteran with no dependents, $12,419
    Veteran with one dependent, $15,566
    For each additional dependent, $1,734
(4) Two veterans married to one another, combined rates (38 U.S.C. 
1521):
    Neither veteran in need of aid and attendance or housebound, 
$13,309
    Either veteran in need of aid and attendance, $20,099
    Both veterans in need of aid and attendance, $26,187
    Either veteran housebound, $15,566
    Both veterans housebound, $17,824
    One veteran housebound and one veteran in need of aid and 
attendance, $22,353
    For each dependent child, $1,734
(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, $6,814
    Surviving spouse and one child in his or her custody, $8,921
    For each additional child in his or her custody, $1,734
(6) Surviving spouses in need of aid and attendance (38 U.S.C. 1541):
    Surviving spouse alone, $10,893
    Surviving spouse with one child in custody, $12,996
    Surviving Spouse of Spanish-American War veteran alone, $11,596
    Surviving Spouse of Spanish-American War veteran with one child in 
custody, $13,699
    For each additional child in his or her custody, $1,734
(7) Surviving spouses who are housebound (38 U.S.C. 1541):
    Surviving spouse alone, $8,328
    Surviving spouse and one child in his or her custody, $10,432
    For each additional child in his or her custody, $1,734
(8) Surviving child alone (38 U.S.C. 1542), $1,734

    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 $2,305 . (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):
    One parent. If there is only one parent, the monthly rate of DIC 
paid to such parent shall be $487 reduced on the basis of the parent's 
annual income according to the following formula:

                                 Table 2
                     [For each $1 of annual income]
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                         The $487 monthly rate--
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                                                  Which is     But not
              Shall be reduced by                more than    more than
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$0.00.........................................            0         $800
.08...........................................         $800       11,560
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    No DIC is payable under this table if annual income exceeds 
$11,560.
    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 $352

[[Page 30838]]

reduced on the basis of each parent's annual income, according to the 
following formula:

                                 Table 3
                     [For each $1 of annual income]
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                         The $352 monthly rate--
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                                                  Which is     But not
              Shall be reduced by                more than    more than
------------------------------------------------------------------------
$0.00.........................................            0         $800
.06...........................................         $800          900
.07...........................................          900        1,100
.08...........................................        1,100       11,560
------------------------------------------------------------------------

    No DIC is payable under this table if annual income exceeds 
$11,560.
    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 $330 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 $330 monthly rate
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                                                  Which is     But not
              Shall be reduced by                more than    more 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       15,538
------------------------------------------------------------------------

    No DIC is payable under this table if combined annual income 
exceeds $15,538.
    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 $263 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, $11,560 (Pub. 
L. 95-588, section 306(a)).
    (2) Veteran with no dependents in need of aid and attendance, 
$12,060 (38 U.S.C. 1521(d) as in effect on December 31, 1978).
    (3) Veteran or surviving spouse with one or more dependents, 
$15,538 (Pub. L. 95-588, section 306(a)).
    (4) Veteran with one or more dependents in need of aid and 
attendance, $16,038 (38 U.S.C. 1521(d) as in effect on December 31, 
1978).
    (5) Child (no entitled veteran or surviving spouse), $9,450 (Pub. 
L. 95-588, section 306(a)).
    (6) Spouse income exclusion (38 CFR 3.262), $3,688 (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, $10,120 (Pub. L. 95-588, section 306(b)).
    (2) Veteran or surviving spouse with one or more dependents, 
$14,589 (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, 2004, spina bifida monthly rates are as follows:

Level I: $244.
Level II: $844.
Level III: $1,440.

Birth Defects Benefits

    Section 401 of Public Law 106-419 authorizes the payment of 
monetary benefits to, or on behalf of, children of female Vietnam 
veterans born with certain birth defects. Pursuant to 38 U.S.C. 
1815(d), birth defects 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, 2004, birth defects monthly rates 
are as follows:

Level I: $111.
Level II: $244.
Level III: $844.
Level IV: $1,440.

    Dated: May 19, 2005.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.
[FR Doc. 05-10609 Filed 5-26-05; 8:45 am]
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