[Federal Register Volume 71, Number 126 (Friday, June 30, 2006)]
[Proposed Rules]
[Pages 37790-37799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-5923]



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Part V





Department of Veterans Affairs





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38 CFR Part 5



Benefits for Certain Filipino Veterans and Survivors; Proposed Rule

  Federal Register / Vol. 71, No. 126 / Friday, June 30, 2006 / 
Proposed Rules  

[[Page 37790]]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 5

RIN 2900-AL76


Benefits for Certain Filipino Veterans and Survivors

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to reorganize 
and rewrite in plain language provisions concerning benefits payable to 
certain Filipino veterans and their survivors. These revisions are 
proposed as part of VA's rewrite and reorganization of all of its 
compensation and pension rules in a logical, claimant-focused, and 
user-friendly format. The intended effect of the proposed revisions is 
to assist claimants and VA personnel in locating and understanding 
these provisions. We also propose to further amend two previously 
proposed part 5 sections to make them consistent with other changes 
that have occurred since they were initially proposed.

DATES: Comments must be received by VA on or before August 29, 2006.

ADDRESSES: Written comments may be submitted by: Mail or hand-delivery 
to Director, Regulations Management (00REG1), Department of Veterans 
Affairs, 810 Vermont Ave., NW, Room 1068, Washington, DC 20420; fax to 
(202) 273-9026; or through www.Regulations.gov. Comments should 
indicate that they are submitted in response to ``RIN 2900-AL76.'' All 
comments received will be available for public inspection in the Office 
of Regulation Policy and Management, Room 1063B, between the hours of 8 
a.m. and 4:30 p.m., Monday through Friday (except holidays). Please 
call (202) 273-9515 for an appointment.

FOR FURTHER INFORMATION CONTACT: Bob White, Chief, Regulations Rewrite 
Project (00REG2), Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, (202) 273-6428.

SUPPLEMENTARY INFORMATION: The Secretary of Veterans Affairs has 
established an Office of Regulation Policy and Management to provide 
centralized management and coordination of VA's rulemaking process. One 
of the major functions of this office is to oversee a Regulation 
Rewrite Project (the Project) to improve the clarity and consistency of 
existing VA regulations. The Project responds to a recommendation made 
in the October 2001 ``VA Claims Processing Task Force: Report to the 
Secretary of Veterans Affairs.'' The Task Force recommended that the 
compensation and pension regulations be rewritten and reorganized in 
order to improve VA's claims adjudication process. Therefore, the 
Project began its efforts by reviewing, reorganizing, and redrafting 
the content of the regulations in 38 CFR part 3 governing the 
compensation and pension program of the Veterans Benefits 
Administration. These regulations are among the most difficult VA 
regulations for readers to understand and apply.
    Once rewritten, the proposed regulations will be published in 
several portions for public review and comment. This is one such 
portion. It includes proposed rules regarding benefits payable to 
certain Filipino veterans and their survivors. After review and 
consideration of public comments, final versions of these proposed 
regulations will ultimately be published in a new part 5 in 38 CFR.

Outline

Overview of New Part 5 Organization
Overview of Proposed Subpart I Organization
Table Comparing Current Part 3 Rules with Proposed Part 5 Rules
Content of Proposed Regulations
    5.610 Eligibility for VA benefits based on Philippine service.
    5.611 Philippine service: Determination of periods of active 
military service, including periods of active military service while 
in prisoner of war status.
    5.612 Overview of benefits available to Filipino veterans and 
their survivors.
    5.613 Compensation at the full-dollar rate for certain Filipino 
veterans or their survivors residing in the United States.
    5.614 Filipino veterans and their survivors: Effective dates for 
benefits at the full-dollar rate.
    5.615 Parents' dependency and indemnity compensation based on 
certain Philippine service.
    5.616 Hospitalization in the Philippines.
    5.617 Burial benefits at the full-dollar rate for certain 
Filipino veterans residing in the United States on the date of 
death.
    5.618 Filipino veterans and their survivors: Effective dates of 
reductions and discontinuances for benefits at the full-dollar rate.
Amendment of Previously Proposed Part 5 Rules
Endnote Regarding Amendatory Language
Paperwork Reduction Act
Regulatory Flexibility Act
Executive Order 12866
Unfunded Mandates
Catalog of Federal Domestic Assistance Numbers
List of Subjects in 38 CFR Part 5

Overview of New Part 5 Organization

    We plan to organize the part 5 regulations so that all provisions 
governing a specific benefit are located in the same subpart, with 
general provisions pertaining to all compensation and pension benefits 
also grouped together. We believe this organization will allow 
claimants, beneficiaries, and their representatives, as well as VA 
personnel, to find information relating to a specific benefit more 
quickly than the organization provided in current part 3.
    The first major subdivision would be ``Subpart A--General 
Provisions.'' It would include information regarding the scope of the 
regulations in new part 5, delegations of authority, general 
definitions, and general policy provisions for this part. This subpart 
was published as proposed on March 31, 2006. See 71 FR 16464.
    ``Subpart B--Service Requirements for Veterans'' would include 
information regarding a veteran's military service, including the 
minimum service requirement, types of service, periods of war, and 
service evidence requirements. This subpart was published as proposed 
on January 30, 2004. See 69 FR 4820.
    ``Subpart C--Adjudicative Process, General'' would inform readers 
about claims and benefit application filing procedures, VA's duties, 
rights and responsibilities of claimants and beneficiaries, general 
evidence requirements, and general effective dates for new awards, as 
well as revision of decisions and protection of VA ratings. This 
subpart will be published as three separate Notices of Proposed 
Rulemaking (NPRM)s due to its size. The first of these three separate 
NPRMs, concerning VA's duties and the rights and responsibilities of 
claimants and beneficiaries, was published as proposed on May 10, 2005. 
See 70 FR 24680.
    ``Subpart D--Dependents and Survivors'' would inform readers how VA 
determines whether an individual is a dependent or a survivor for 
purposes of determining eligibility for VA benefits. It would also 
provide the evidence requirements for these determinations.
    ``Subpart E--Claims for Service Connection and Disability 
Compensation'' would define service-connected disability compensation 
and service connection, including direct and secondary service 
connection. This subpart would inform readers how VA determines service 
connection and entitlement to disability compensation. The subpart 
would also contain those provisions governing presumptions related to 
service connection, rating principles, and effective dates, as well as 
several special ratings. This subpart will be published as three 
separate NPRMs due to its size. The first,

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concerning presumptions related to service connection, was published on 
July 27, 2004. See 69 FR 44614.
    ``Subpart F--Nonservice-Connected Disability Pensions and Death 
Pensions'' would include information regarding the three types of 
nonservice-connected pension: Improved Pension, Old-Law Pension, and 
Section 306 Pension. This subpart would also include those provisions 
that state how to establish entitlement to Improved Pension, and the 
effective dates governing each pension. This subpart will be published 
as two separate NPRMs due to its size. The portion concerning Old-Law 
Pension, Section 306 Pension, and elections of Improved Pension was 
published as proposed on December 27, 2004. See 69 FR 77578.
    ``Subpart G--Dependency and Indemnity Compensation, Death 
Compensation, Accrued Benefits, and Special Rules Applicable Upon Death 
of a Beneficiary'' would contain regulations governing claims for 
dependency and indemnity compensation (DIC); death compensation; 
accrued benefits; benefits awarded, but unpaid at death; and various 
special rules that apply to the disposition of VA benefits, or proceeds 
of VA benefits, when a beneficiary dies. This subpart would also 
include related definitions, effective-date rules, and rate-of-payment 
rules. This subpart will be published as two separate NPRMs due to its 
size. The portion concerning accrued benefits, death compensation, 
special rules applicable upon the death of a beneficiary, and several 
effective-date rules, was published as proposed on October 1, 2004. See 
69 FR 59072. The portion concerning DIC benefits and general provisions 
relating to proof of death and service-connected cause of death was 
published on October 21, 2005. See 70 FR 61326.
    ``Subpart H--Special and Ancillary Benefits for Veterans, 
Dependents, and Survivors'' would pertain to special and ancillary 
benefits available, including benefits for children with various birth 
defects.
    ``Subpart I--Benefits for Certain Filipino Veterans and Survivors'' 
would pertain to the various benefits available to Filipino veterans 
and their survivors. This subpart is the subject of this document.
    ``Subpart J--Burial Benefits'' would pertain to burial allowances.
    ``Subpart K--Matters Affecting the Receipt of Benefits'' would 
contain provisions regarding bars to benefits, forfeiture of benefits, 
and renouncement of benefits. This subpart was published as proposed on 
May 31, 2006. See 71 FR 31056.
    ``Subpart L--Payments and Adjustments to Payments'' would include 
general rate-setting rules, several adjustment and resumption 
regulations, and election-of-benefit rules. Because of its size, 
proposed regulations in subpart L will be published in two separate 
NPRMs.
    The final subpart, ``Subpart M--Apportionments and Payments to 
Fiduciaries or Incarcerated Beneficiaries,'' would include regulations 
governing apportionments, benefits for incarcerated beneficiaries, and 
guardianship.
    Some of the regulations in this NPRM cross-reference other 
compensation and pension regulations. If those regulations have been 
published in this or earlier NPRMs for the Project, we cite the 
proposed part 5 section. We also include, in the relevant portion of 
the Supplementary Information, the Federal Register page where a 
proposed part 5 section published in an earlier NPRM may be found. 
However, where a regulation proposed in this NPRM would cross-reference 
a proposed part 5 regulation that has not yet been published, we cite 
to the current part 3 regulation that deals with the same subject 
matter. The current part 3 section we cite may differ from its eventual 
part 5 counterpart in some respects, but we believe this method will 
assist readers in understanding these proposed regulations where no 
part 5 counterpart has yet been published. If there is no part 3 
counterpart to a proposed part 5 regulation that has not yet been 
published, we have inserted ``[regulation that will be published in a 
future Notice of Proposed Rulemaking]'' where the part 5 regulation 
citation would be placed.
    Because of its large size, proposed part 5 will be published in a 
number of NPRMs, such as this one. VA will not adopt any portion of 
part 5 as final until all of the NPRMs have been published for public 
comment.
    In connection with this rulemaking, VA will accept comments 
relating to a prior rulemaking issued as a part of the Project, if the 
matter being commented on relates to both NPRMs.

Overview of Proposed Subpart I Organization

    This NPRM pertains to regulations governing benefits for certain 
Filipino veterans and their survivors. These regulations would be 
contained in proposed Subpart I of new 38 CFR part 5. Although these 
regulations have been substantially restructured and rewritten for 
greater clarity and ease of use, most of the basic concepts contained 
in these proposed regulations are the same as in their existing 
counterparts in 38 CFR part 3. However, a few substantive changes are 
proposed.

Table Comparing Current Part 3 Rules With Proposed Part 5 Rules

    The following table shows the relationship between the current 
regulations in part 3 and the proposed regulations contained in this 
NPRM:

------------------------------------------------------------------------
                                    Based in whole or in part on 38 CFR
   Proposed part 5 section or         part 3 section or paragraph (or
            paragraph                            ``New'')
------------------------------------------------------------------------
5.610...........................  3.40
5.611...........................  3.41
5.612...........................  New
5.613...........................  3.42
5.614...........................  3.405
5.615(a)........................  3.251(a)(3)
5.615(b)........................  3.251(a)(1), (3)
5.616...........................  3.1605(a) second sentence
5.617(a)........................  3.43(a)
5.617(b)........................  3.43(b)
5.617(c)........................  3.43(c)
5.618(a), (b)...................  3.500(p)
5.618(c)........................  3.505
------------------------------------------------------------------------

    Readers who use this table to compare existing regulatory 
provisions with the proposed provisions, and who observe a substantive 
difference between them, should consult the text that appears later in 
this document for an explanation of significant changes in each 
regulation. Not every paragraph of every current part 3 section 
regarding the subject matter of this rulemaking is accounted for in the 
table. In some instances, other portions of the part 3 sections that 
are addressed in these proposed regulations will appear in subparts of 
part 5 that are being published separately for public comment. For 
example, a reader might find a reference to paragraph (a) of a part 3 
section in the table, but no reference to paragraph (b) of that section 
because paragraph (b) will be addressed in a separate NPRM. The table 
also does not include provisions from part 3 regulations that will not 
be repeated in part 5. Such provisions are discussed specifically under 
the appropriate part 5 heading in this preamble. Readers are invited to 
comment on the proposed part 5 provisions and also on our proposals to 
omit those part 3 provisions from part 5.

Content of Proposed Regulations

Section 5.610 Eligibility for VA Benefits Based on Philippine Service

    Proposed Sec.  5.610 is based on current Sec.  3.40. We propose to 
use consistent terms to describe the two types of Philippine Scouts. 
Scouts who enlisted prior to October 6, 1945, are variously

[[Page 37792]]

referred to in regulations, manuals, and case law as Regular Philippine 
Scouts or Old Philippine Scouts. Those who enlisted during the period 
from October 6, 1945, to June 30, 1947, inclusive, are referred to as 
Other Philippine Scouts, Special Philippine Scouts, or New Philippine 
Scouts. Since the date of enlistment is the distinguishing factor 
between the two groups, it is clearer to refer to them as Old 
Philippine Scouts and New Philippine Scouts. We propose to use these 
two terms exclusively throughout the Filipino regulations in subpart I. 
This will provide consistent terminology and reduce any confusion 
caused by using more than one term for a particular group.
    One purpose of proposed subpart I of part 5 is to assemble in one 
place all of the adjudication regulations dealing with benefits for 
certain Filipino veterans and their survivors. Consistent with this 
purpose we believe that proposed subpart I should not make references 
to groups of non-Filipino veterans. Proposed Sec.  5.610(a) is based on 
current Sec.  3.40(a), which references the service of three non-
Filipino groups: the Insular Force of the Navy, the Samoan Native 
Guard, and the Samoan Native Band of the Navy. We propose not to repeat 
those references in proposed Sec.  5.610(a). Instead, we propose to 
include those groups in a more appropriate section of proposed part 5 
dealing with service requirements for veterans.
    On January 30, 2004, we published proposed rules on service 
requirements in the Federal Register (69 FR 4820). Proposed Sec.  5.28 
listed 16 individuals and groups that are considered to have performed 
active military service. Proposed Sec.  5.28(k) was titled ``Philippine 
Scouts and others'' and simply referred readers to current Sec.  3.40 
for more specific information. We propose to further amend proposed 
Sec.  5.28(k) to state that certain Philippine service will constitute 
active military service for purposes of certain VA benefits as 
specified in Sec.  5.610, and to include the three non-Filipino groups 
noted above along with the specific benefits eligibility conferred on 
those groups by such active military service, namely pension, 
compensation, dependency and indemnity compensation, and burial 
benefits at the full-dollar rate. This listing will make it easier for 
readers to identify each type of insular force that performed active 
military service.

Section 5.611 Philippine Service: Determination of Periods of Active 
Military Service, Including Periods of Active Military Service While in 
Prisoner of War Status

    Proposed Sec.  5.611 is based on current Sec.  3.41, and except for 
a few minor nonsubstantive changes for clarity and readability, the 
regulatory texts of both sections are identical. We propose to remove 
the term ``a Regular Philippine Scout'' and insert the term ``an Old 
Philippine Scout'' in its place, consistent with the new terminology in 
proposed Sec.  5.610.

Section 5.612 Overview of Benefits Available to Filipino Veterans and 
Their Survivors

    Proposed Sec.  5.612 is a new regulation describing all part 5 
benefits available to Filipino veterans, dependents, and/or their 
survivors based on the type of service performed by the veteran. 
Proposed paragraph (a) presents that information in chart form so that 
readers can more easily identify the available benefits. See 38 U.S.C. 
107(a)(3) and (b)(2). We do not intend that proposed Sec.  5.612 confer 
any substantive right to the benefits listed. Proposed paragraph (b) 
refers readers to certain other regulations that are pertinent to 
Filipino veterans and their survivors but appear in other subparts of 
proposed part 5.

Section 5.613 Compensation at the Full-Dollar Rate for Certain Filipino 
Veterans or Their Survivors Residing in the United States

    Proposed Sec.  5.613 is a restatement of current Sec.  3.42, 
concerning the payment of compensation at the full-dollar rate for 
certain Filipino veterans or their survivors residing in the United 
States. Proposed Sec.  5.613(d) provides the general authority for 
reduction from the full-dollar rate when certain eligibility criteria 
are not satisfied as well as the general authority for resumption of 
the full-dollar rate when those eligibility criteria are again 
satisfied. These provisions are based on current Sec.  3.42, which sets 
forth requirements for continued eligibility for the full-dollar rate, 
but does not in all instances clearly explain how VA will reduce 
benefits based on failure to meet those criteria or how VA will 
reinstate benefits once the criteria are again satisfied. We propose to 
provide this information in Sec.  5.613(d). Proposed Sec.  5.613(d)(1) 
is based on current Sec.  3.42(d)(1). We have added information to more 
clearly explain how VA will reduce benefits based on absence from the 
United States and how VA will resume full-dollar benefits based on 
return to the United States. Proposed Sec.  5.613(d)(2)-(4) are based 
on current Sec.  3.42(d)(2)-(4). We have added information to more 
clearly explain how VA will resume full-dollar rate payments under 
these provisions when a payee regains U.S. citizenship or lawful 
permanent resident alien status, when VA receives requested evidence of 
continued eligibility, and when VA receives evidence of a valid U.S. 
mailing address. There are also some nonsubstantive changes. In the 
introductory text of paragraph (b), we propose to replace ``Sec.  
3.40(b), (c), or (d)'' with ``Sec.  5.610(b), (c), or (d).'' Also, in 
paragraphs (d)(2) and (d)(4), we propose to replace current ``Sec.  
3.505'' with ``Sec.  5.618''. These nonsubstantive changes make the 
provisions consistent with the renumbering of the regulations proposed 
herein. In addition, we are proposing a minor change in the text of 
paragraph (a)(4) to improve readability.
    While reviewing proposed Sec.  5.613 for consistency with current 
Sec.  3.42 we noted technical errors in Sec.  3.42(c)(4)(ii). Because 
this section deals with veterans or their survivors who are alive, it 
should be written in the present tense, and the words ``on the date of 
death'' are not appropriate. Proposed Sec.  5.613(c) does not contain 
these technical errors. Current Sec.  3.42(c)(4)(ii) will be corrected 
in a separate NPRM.

Section 5.614 Filipino Veterans and Their Survivors: Effective Dates 
for Benefits at the Full-Dollar Rate

    Proposed Sec.  5.614 is based on current Sec.  3.405. We have added 
provisions to specify the effective dates for resumption of benefits at 
the full-dollar rate following reductions under proposed Sec.  
5.613(d)(3) and (4). Part 3 citations are replaced with Part 5 
citations. In addition we have added the provisions of Sec.  3.42(e) 
because it will be more convenient for readers to have all effective 
date provisions in one regulation.

Section 5.615 Parents' Dependency and Indemnity Compensation Based on 
Certain Philippine Service

    Proposed Sec.  5.615(b) restates current Sec.  3.251(a)(1) and (3), 
which govern parents' dependency and indemnity compensation for 
survivors of certain Filipino veterans. For clarity, we propose to 
restate here the provision contained in current Sec.  3.251(a)(1) 
(proposed Sec.  5.510(d)) which provides that dependency and indemnity 
compensation is not payable to a parent or parents whose annual income 
exceeds the limitations set forth in 38 U.S.C. 1315(b), (c), or (d). 
The income limitations under 38 U.S.C. 1315 and the benefits paid are 
calculated at the

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half-dollar rate, unless the surviving parent is a U.S. resident and 
either a U.S. citizen or a lawful permanent resident alien. If so, the 
parent is paid at the full-dollar rate.

Section 5.616 Hospitalization in the Philippines

    This regulation restates the rule in current Sec.  3.1605(a) that 
death while hospitalized in the Philippines under 38 U.S.C. 1731, 1732, 
and 1733 does not qualify the deceased for burial benefits based on 
death while properly hospitalized by VA. While this regulation could 
affect non-Filipinos hospitalized in the Philippines, it is duplicated 
here because it most frequently affects Filipino veterans. We also 
propose to correct the authority citations that appear in current Sec.  
3.1605(a) which refer to 38 U.S.C. 631, 632, and 633. The correct 
citations are 38 U.S.C. 1731, 1732, and 1733.

Section 5.617 Burial Benefits at the Full-Dollar Rate for Certain 
Filipino Veterans Residing in the United States on the Date of Death

    Proposed Sec.  5.617 restates, without substantive change, current 
Sec.  3.43 concerning the payment of burial benefits at the full-dollar 
rate based on the service of certain Filipino veterans who were 
residing in the United States at the time of death. We propose to 
replace the term ``active military, naval, or air service'' with 
``active military service.'' VA explained its reasoning for adopting 
the term ``active military service'' in the NPRM for subpart B (Service 
Requirements for Veterans). See 69 FR 4820, 4822 (January 30, 2004).

Section 5.618 Filipino Veterans and Their Survivors: Effective Dates of 
Reductions and Discontinuances for Benefits at the Full-Dollar Rate

    Proposed Sec.  5.618(a) is a cross reference to the general 
effective date rule on reductions and discontinuances. Proposed Sec.  
5.618(b) restates the effective date provision in current Sec.  
3.500(p) (effective date for reduction or discontinuance based on the 
withdrawal of recognition of service). This is consistent with our 
effort throughout the proposed part 5 regulations to separate all the 
various provisions for effective dates for award reductions and 
discontinuances contained in Sec.  3.500, and to associate them with 
the regulations governing the specific benefit to which they pertain. 
We believe this will make these provisions easier to locate. We propose 
to replace the language ``date of last payment'' with ``the first day 
of the month that follows the month for which VA last paid benefits,'' 
which we believe is more clear and specific. We propose no substantive 
changes to the regulatory text.
    Proposed Sec.  5.618(c) is based on current Sec.  3.505 which does 
not clearly specify the effective date for reductions under Sec.  
3.42(d)(3) for failure to verify continued eligibility. In such cases 
the effective date would be determined under current Sec.  3.652 
(proposed Sec.  5.104). Therefore we have included a reference to the 
part 5 counterpart to Sec.  3.652 in Sec.  5.618(c)(4). We have also 
made a few minor nonsubstantive changes for clarity and readability.

Amendment of Previously Proposed Part 5 Rules

    As noted earlier in this document in connection with the discussion 
about proposed Sec.  5.610, we are proposing to further amend 
previously proposed Sec.  5.28(k) to list the certain Philippine 
service and the three non-Filipino groups mentioned in current Sec.  
3.40(a) as having performed active military service along with the 
specific benefits eligibility conferred on those groups by virtue of 
such service.
    In addition, on July 27, 2004, we published proposed rules in the 
Federal Register dealing with presumptions of service connection (69 FR 
44614). One of those proposed rules, Sec.  5.264, dealt with 
presumptive service connection for certain diseases based on status as 
a former prisoner of war, and paragraph (b) of that proposal listed 
five diseases that could be presumptively service connected regardless 
of the length of internment. Proposed Sec.  5.264(b) was based on the 
then-current Sec.  3.309(c) and section 201 of the Veterans Benefits 
Act of 2003, Pub. L. 108-183, 117 Stat. 2651 (Dec. 16, 2003) which 
eliminated the 30-day length-of-internment requirement for those five 
listed diseases. Subsequently, we amended 3.309(c), through an interim 
final rule in the Federal Register on October 7, 2004 (69 FR 60083), by 
adding three more diseases and their complications to the list of 
diseases that could be presumptively service connected regardless of 
the length of internment. Those additional diseases are atherosclerotic 
heart disease, hypertensive vascular disease, and stroke and their 
complications. That interim final rule became a final rule, without 
change, on June 28, 2005 (70 FR 37040).
    Therefore, we must now add those three diseases to Sec.  5.264(b) 
(which was previously published as proposed on July 27, 2004, as noted 
above). That would make proposed Sec.  5.264(b) consistent with current 
Sec.  3.309(c) on which it is based.

Endnote Regarding Amendatory Language

    We intend to ultimately remove part 3 entirely, but we are not 
including amendatory language to accomplish that at this time. VA will 
provide public notice before removing part 3.

Paperwork Reduction Act

    All collections of information under the Paperwork Reduction Act 
(44 U.S.C. 3501-3521) referenced in this proposed rule have existing 
OMB approval. No changes are made in this proposed rule to those 
collections of information.

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed regulatory 
amendment 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. This proposed amendment would not 
affect any small entities. Therefore, pursuant to 5 U.S.C. 605(b), this 
proposed amendment is exempt from the initial and final regulatory 
flexibility analysis requirements of sections 603 and 604.

Executive Order 12866

    Executive Order 12866 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, when regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity). The Order 
classifies a rule as a significant regulatory action requiring review 
by the Office of Management and Budget if it meets any one of a number 
of specified conditions, including: having an annual effect on the 
economy of $100 million or more, creating a serious inconsistency or 
interfering with an action of another agency, materially altering the 
budgetary impact of entitlements or the rights of entitlement 
recipients, or raising novel legal or policy issues. VA has examined 
the economic, legal, and policy implications of this proposed rule and 
has concluded that it is a significant regulatory action because it may 
raise novel legal or policy issues.''

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in an

[[Page 37794]]

expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector of $100 million or more (adjusted annually for 
inflation) in any one year. This proposed rule would have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Catalog of Federal Domestic Assistance Numbers

    The Catalog of Federal Domestic Assistance program numbers and 
titles for this proposal are 64.100, Automobiles and Adaptive Equipment 
for Certain Disabled Veterans and Members of the Armed Forces; 64.101, 
Burial Expenses Allowance for Veterans; 64.102, Compensation for 
Service-Connected Deaths for Veterans' Dependents; 64.104, Pension for 
Non-Service-Connected Disability for Veterans; 64.105, Pension to 
Veterans Surviving Spouses, and Children; 64.106, Specially Adapted 
Housing for Disabled Veterans; 64.109, Veterans Compensation for 
Service-Connected Disability; 64.110, Veterans Dependency and Indemnity 
Compensation for Service-Connected Death; and 64.115, Veterans 
Information and Assistance.

List of Subjects in 38 CFR Part 5

    Administrative practice and procedure, Claims, Disability benefits, 
Pensions, Veterans.

    Approved: April 13, 2006.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.
    For the reasons set out in the preamble, VA proposes to further 
amend 38 CFR part 5, as proposed to be added at 69 FR 4832, January 30, 
2004, and as proposed to be amended at 69 FR 44624, July 27, 2004, as 
follows:

PART 5--COMPENSATION, PENSION, BURIAL, AND RELATED BENEFITS

Subpart B--Service Requirements for Veterans

    1. The authority citation for subpart B continues to read as 
follows:

    Authority: 38 U.S.C. 501(a) and as noted in specific sections.

    2. Section 5.28 as proposed to be added at 69 FR 4837, January 30, 
2004, is further amended by revising paragraph (k) to read as follows:


Sec.  5.28  Other individuals and groups designated as having performed 
active military service.

* * * * *
    (k) Insular Forces--(1) Philippine forces. Service in certain 
Philippine forces constitutes active military service for purposes of 
certain benefits as specified in Sec.  5.610.
    (2) Other insular forces. Service in the Insular Force of the Navy, 
Samoan Native Guard, or Samoan Native Band of the Navy constitutes 
active military service for purposes of entitlement to pension, 
compensation, dependency and indemnity compensation, and burial 
benefits at the full-dollar rate.
* * * * *

Subpart E--Claims for Service Connection and Disability 
Compensation

    3. The authority citation for subpart E continues to read as 
follows:

    Authority: 38 U.S.C. 501(a) and as noted in specific sections.

    4. Section 5.264 as proposed to be added at 69 FR 44627, July 27, 
2004, is further amended by revising paragraph (b) to read as follows:


Sec.  5.264  Diseases VA presumes are service connected in former 
prisoners of war.

* * * * *
    (b) Diseases presumed service connected following any period of 
internment. VA will presume service connection for the following 
diseases if the criteria of paragraph (a) of this section are met:
    Any of the anxiety disorders as listed in Sec.  4.130, including 
post-traumatic stress disorder.
    Atherosclerotic heart disease or hypertensive vascular disease 
(including hypertensive heart disease) and their complications 
(including myocardial infarction, congestive heart failure, and 
arrhythmia).
    Dysthymic disorder (or depressive neurosis).
    Organic residuals of frostbite, if it is determined that the 
veteran was interned in climatic conditions consistent with the 
occurrence of frostbite.
    Post-traumatic osteoarthritis.
    Psychosis.
    Stroke and its complications.
* * * * *
    5. Part 5 is further amended by adding subpart I to read as 
follows:

Subpart I--Benefits for Certain Filipino Veterans and Survivors

Sec.
5.610 Eligibility for VA benefits based on Philippine service.
5.611 Philippine service: Determination of periods of active 
military service, including periods of active military service while 
in prisoner of war status.
5.612 Overview of benefits available to Filipino veterans and their 
survivors.
5.613 Compensation at the full-dollar rate for certain Filipino 
veterans or their survivors residing in the United States.
5.614 Filipino veterans and their survivors: Effective dates for 
benefits at the full-dollar rate.
5.615 Parents' dependency and indemnity compensation based on 
certain Philippine service.
5.616 Hospitalization in the Philippines.
5.617 Burial benefits at the full-dollar rate for certain Filipino 
veterans residing in the United States on the date of death.
5.618 Filipino veterans and their survivors: Effective dates of 
reductions and discontinuances for benefits at the full-dollar rate.
5.619-5.629 [Reserved]

    Authority: 38 U.S.C. 501(a) and as noted in specific sections.

Subpart I--Benefits for Certain Filipino Veterans and Survivors


Sec.  5.610  Eligibility for VA benefits based on Philippine service.

    (a) Old Philippine Scouts--(1) Included service. Service in the Old 
Philippine Scouts (Scouts who enlisted prior to October 6, 1945) 
constitutes active military service for purposes of pension, 
compensation, dependency and indemnity compensation, and burial 
benefits.
    (2) Rate of payment. Benefits are payable at the full-dollar rate.
    (3) Acceptable evidence of service in the Old Philippine Scouts. 
Service must be established as specified in Sec.  5.40.
    (b) New Philippine Scouts--(1) Included service. All enlistments 
and reenlistments of New Philippine Scouts in the Regular Army between 
October 6, 1945, and June 30, 1947, inclusive, constitute active 
military service for purposes of compensation and dependency and 
indemnity compensation, and, in the case of deaths occurring on or 
after December 16, 2003, burial benefits.
    (2) Rate of payment. Except as provided in Sec. Sec.  5.613 and 
5.617 benefits based on service described in paragraph (b)(1) of this 
section are payable at a rate of $0.50 for each dollar authorized under 
the law.
    (3) Excluded service. Paragraph (b)(1) of this section does not 
apply to officers who were commissioned in connection with the 
administration of Pub. L. 79-190, 59 Stat. 538.
    (4) Acceptable evidence of service in the New Philippine Scouts. 
Service must be established as specified in Sec.  5.40.
    (c) Commonwealth Army of the Philippines--(1) Included service. 
Service of members of the Commonwealth Army of the Philippines 
constitutes active military service for purposes of compensation, 
dependency and indemnity compensation, and

[[Page 37795]]

burial allowance, from and after the dates and hours, respectively, 
when they were called into service of the Armed Forces of the United 
States by orders issued from time to time by the General Officer, U.S. 
Army, pursuant to the Military Order of the President of the United 
States dated July 26, 1941.
    (2) Rate of payment. Except as provided in Sec. Sec.  5.613 and 
5.617 benefits based on service described in paragraph (c)(1) of this 
section are payable at a rate of $0.50 for each dollar authorized under 
the law.
    (3) Presumption of soundness. Unless the record shows examination 
at the time of entrance into the Armed Forces of the United States, 
such persons are not entitled to the presumption of soundness. This 
also applies upon reentering the Armed Forces after a period of 
inactive service.
    (4) Acceptable evidence of service in the Commonwealth Army of the 
Philippines. Service must be established as specified in Sec.  5.40.
    (d) Guerrilla service--(1) Included service. Persons who served as 
guerrillas under a commissioned officer of the United States Army, 
Navy, or Marine Corps, or under a commissioned officer of the 
Commonwealth Army of the Philippines recognized by and cooperating with 
the United States Forces are considered to have performed active 
military service for purposes of compensation, dependency and indemnity 
compensation, and burial allowance. Service as a guerrilla by a member 
of the Old Philippine Scouts or the Armed Forces of the United States 
is considered service in his or her regular status. (See paragraph (a) 
of this section.)
    (2) Rate of payment. Except as provided in Sec. Sec.  5.613 and 
5.617, benefits based on service described in paragraph (d)(1) of this 
section are payable at a rate of $0.50 for each dollar authorized under 
the law.
    (3) Acceptable evidence of guerrilla service. Service must be 
established as specified in Sec.  5.40. The following certifications by 
a United States service department in accordance with Sec.  5.40 will 
be accepted as establishing guerrilla service:
    (i) Recognized guerrilla service;
    (ii) Unrecognized guerrilla service under a recognized commissioned 
officer only if the person was a former member of the United States 
Armed Forces (including the Old Philippine Scouts), or the Commonwealth 
Army of the Philippines. This excludes civilians.
    (4) Unacceptable evidence of guerrilla service. A certification of 
anti-Japanese activity will not be accepted as establishing guerrilla 
service.
    (e) Combined service. Where a veteran who had Commonwealth Army of 
the Philippines or guerrilla service and also had other service, 
wartime or peacetime, in the Armed Forces of the United States, has 
disabilities which are compensable separately on a dollar and a $0.50 
for each dollar authorized basis, and the disabilities are combined 
under the authority contained in 38 U.S.C. 1157, the evaluation for 
which dollars are payable will be first considered and the difference 
between this evaluation and the combined evaluation will be the basis 
for computing the amount payable at the rate of $0.50 for each dollar 
authorized.

(Authority: 38 U.S.C. 107)


    Cross References: Sec.  5.21, ``Service VA recognizes as active 
military service.'' Sec.  5.28, ``Other individuals and groups 
designated as having performed active military service.'' Sec.  
5.39, ``Minimum active duty service requirement for VA benefits.'' 
Sec.  5.40, ``Service records as evidence of service and character 
of discharge that qualify for VA benefits.''


Sec.  5.611  Philippine service: Determination of periods of active 
military service, including periods of active military service while in 
prisoner of war status.

    (a) Period of service. For an Old Philippine Scout, a member of one 
of the regular components of the Commonwealth Army of the Philippines 
while serving with the Armed Forces of the United States, and a New 
Philippine Scout, the period of active military service will be from 
the date certified by the United States Armed Forces as the date of 
enlistment or the date of reporting for active duty, whichever is 
later, to the date of release from active duty, discharge, death, or in 
the case of a member of the Commonwealth Army of the Philippines, June 
30, 1946, whichever is earlier. Release from active duty includes:
    (1) Leaving one's organization in anticipation of, or due to, the 
capitulation.
    (2) Escape from prisoner-of-war status.
    (3) Parole by the Japanese.
    (4) Beginning of missing-in-action status, except where factually 
shown that at that time he or she was with his or her unit or death is 
presumed to have occurred while carried in such status. However, where 
there is credible evidence that he or she was alive after commencement 
of his or her missing-in-action status, the presumption of death will 
not apply for Department of Veterans Affairs purposes.
    (5) Capitulation on May 6, 1942, except that periods of recognized 
guerrilla service, unrecognized guerrilla service under a recognized 
commissioned officer, or periods of service in units which continued 
organized resistance against the Japanese prior to formal capitulation 
will be considered return to active duty for the period of such 
service.
    (b) Prisoner-of-war status. Active military service of an Old 
Philippine Scout or a member of the Commonwealth Army of the 
Philippines serving with the Armed Forces of the United States will 
include a prisoner-of-war status immediately following a period of 
active duty, or a period of recognized guerrilla service or 
unrecognized guerrilla service under a recognized commissioned officer. 
In those cases where, following release from active duty as set forth 
in paragraph (a) of this section, the veteran is factually found by the 
Department of Veterans Affairs to have been injured or killed by the 
Japanese because of anti-Japanese activities or because of his or her 
former service in the Armed Forces of the United States, such injury or 
death may be held to have been incurred in active military service for 
Department of Veterans Affairs purposes. Such determinations shall be 
based on all available evidence, including United States service 
department reports, and consideration shall be given to the character 
and length of the veteran's former active military service in the Armed 
Forces of the United States.
    (c) Arrest. A prisoner-of-war status based upon arrest during 
general zonification will not be sufficient of itself to bring a case 
within the definition of return to military control.
    (d) Period of guerrilla service. The active service of a guerrilla 
will be the period certified by a United States service department.

(Authority: 38 U.S.C. 107)


    Cross reference: Sec.  5.40, ``Service records as evidence of 
service and character of discharge that qualify for VA benefits.''

Sec.  5.612  Overview of benefits available to Filipino veterans and 
their survivors.

    (a) General. The following chart lists many of the benefits that VA 
may provide based on qualifying service in the Republic of the 
Philippines. The chart, itself, does not confer any substantive right 
to the benefit listed.

[[Page 37796]]



                      38 CFR Part 5--Benefits Available to Filipino Veterans and Survivors
----------------------------------------------------------------------------------------------------------------
                                     Armed Forces of the
                                     U.S., including Old      New Philippine Scouts     Commonwealth Army of the
              Benefit                 Philippine Scouts         (Sec.   5.610(b))        Philippines/Guerrillas
                                      (Sec.   5.610(a))                                (Sec.   5.610(c) and (d))
----------------------------------------------------------------------------------------------------------------
(1) Disability Compensation         Yes--Full-Rate         Yes--Full-Rate if U.S.      Yes--Full-Rate if U.S.
                                                            citizen or permanent        citizen or permanent
                                                            resident alien and          resident alien and
                                                            residing in U.S.            residing in U.S.
                                                            Otherwise, Half-Rate        Otherwise, Half-Rate.
(2) Pension                         Yes--Full-Rate         No                          No.
(3) Clothing Allowance              Yes--Full-Rate         Yes--Half-Rate              Yes--Half Rate.
(4) DIC                             Yes--Full-Rate         Yes--Full-Rate if U.S.      Yes--Full-Rate if U.S.
                                                            citizen or permanent        citizen or permanent
                                                            resident alien and          resident alien and
                                                            residing in U.S.            residing in U.S.
                                                            Otherwise, Half-Rate        Otherwise, Half-Rate.
(5) Parents' DIC                    Yes--Full-Rate         Yes--Full-Rate if U.S.      Yes--Full-Rate if U.S.
                                                            citizen or permanent        citizen or permanent
                                                            resident alien and          resident alien and
                                                            residing in U.S.            residing in U.S.
                                                            Otherwise, Half-Rate        Otherwise, Half-Rate.
(6) Burial Benefits                 Yes--Full-Rate         Yes--Full-Rate if veteran   Yes--Full-Rate if veteran
                                                            dies on or after 12/16/03   dies on or after 11/1/00
                                                            and was a U.S. citizen or   and was U.S. citizen or
                                                            permanent resident alien    permanent resident alien
                                                            and residing in U.S. at     and residing in U.S. at
                                                            time of death (in some      time of death (in some
                                                            cases). See 5.617 for       cases). See 5.617 for
                                                            specific requirements.      specific requirements.
                                                            Otherwise, Half-Rate if     Otherwise, Half-Rate.
                                                            death occurred on or
                                                            after 12/16/03. Not
                                                            payable for death prior
                                                            to 12/16/03
----------------------------------------------------------------------------------------------------------------

    (b) Other sections relevant to claims based on qualifying service 
in the Republic of the Philippines--(1) Affidavits prepared in the 
Republic of the Philippines. See Sec.  5.132.
    (2) Child adopted under foreign law. See Sec.  5.225.
    (3) Dependents' educational assistance for a child based on the 
child's parent's service in the Commonwealth Army of the Philippines or 
as a New Philippine Scout as defined in Sec.  5.610(b), (c), or (d). 
See Sec.  5.586 of this part relating to certification of dependents' 
educational assistance.
    (4) Forfeiture based on fraud or treason committed in the 
Philippine Islands. See Sec. Sec.  5.676 and 5.677.

(Authority: 38 U.S.C. 501(a))

Sec.  5.613  Compensation at the full-dollar rate for certain Filipino 
veterans or their survivors residing in the United States.

    (a) Definitions. For purposes of this section:
    (1) United States (U.S.) means the states, territories, and 
possessions of the United States; the District of Columbia; and the 
Commonwealth of Puerto Rico.
    (2) Residing in the U.S. means that an individual's principal, 
actual dwelling place is in the U.S. and that the individual meets the 
residency requirements of paragraph (c)(1) of this section.
    (3) Citizen of the U.S. means any individual who acquires U.S. 
citizenship through birth in the territorial U.S., birth abroad as 
provided under title 8, United States Code, or through naturalization, 
and has not renounced his or her U.S. citizenship, or had such 
citizenship cancelled, revoked, or otherwise terminated.
    (4) Lawfully admitted for permanent residence means that an 
individual has been, and continues to be, lawfully accorded the 
privilege of residing permanently in the U.S. as an immigrant by the 
U.S. Citizenship and Immigration Services under title 8, United States 
Code.
    (b) Eligibility requirements. Compensation or dependency and 
indemnity compensation is payable at the full-dollar rate based on 
service described in Sec.  5.610(b), (c), or (d) to a veteran or a 
veteran's survivor who is residing in the United States (U.S.) and is 
either:
    (1) A citizen of the U.S., or
    (2) An alien lawfully admitted for permanent residence in the U.S.
    (c) Evidence of eligibility for full-dollar rate benefits. (1)(i) 
Evidence establishing that the veteran or the veteran's survivor is 
residing in the U.S. should identify the veteran's or veteran's 
survivor's name and relevant dates, and may include:
    (A) A valid driver's license issued by the state of residence;
    (B) Employment records, which may consist of pay stubs, W-2 forms, 
and certification of the filing of Federal, State, or local income tax 
returns;
    (C) Residential leases, rent receipts, utility bills and receipts, 
or other relevant documents showing dates of utility service at a 
leased residence;
    (D) Hospital or medical records showing medical treatment or 
hospitalization, and showing the name of the medical facility or 
treating physician;
    (E) Property tax bills and receipts; and
    (F) School records.
    (ii) A Post Office box mailing address in the veteran's or 
veteran's survivor's name does not constitute evidence showing that the 
veteran or veteran's survivor is lawfully residing in the United 
States.
    (2) A valid original or copy of one of the following documents is 
required to prove that the veteran or the veteran's survivor is a 
natural born citizen of the U.S.:
    (i) A valid U.S. passport;
    (ii) A birth certificate showing that he or she was born in the 
U.S.; or
    (iii) A Report of Birth Abroad of a Citizen of the U.S. issued by a 
U.S. consulate.
    (3) Only verification by the U.S. Citizenship and Immigration 
Services to VA that a veteran or a veteran's survivor is a naturalized 
citizen of the U.S., or a valid U.S. passport, will be sufficient proof 
of such status.
    (4) Only verification by the U.S. Citizenship and Immigration 
Services to VA that a veteran or a veteran's survivor is an alien 
lawfully admitted for permanent residence in the U.S. will be 
sufficient proof of such status.
    (d) Continued eligibility. (1) In order to continue receiving 
benefits at the full-dollar rate under this section, a veteran or a 
veteran's survivor must be physically present in the U.S. for at least 
183 days of each calendar year in which he or she receives payments at 
the full-dollar rate, and may not be absent from the U.S. for more than 
60 consecutive days at a time, unless good cause is shown. When a 
veteran's or veteran's survivor's absence from the U.S. exceeds one of 
those limits, VA will reduce his or her payment to the rate of $0.50 
for each dollar authorized under

[[Page 37797]]

the law, effective on the date determined under Sec.  5.618, ``Filipino 
veterans and their survivors: Effective dates of reductions and 
discontinuances for benefits at the full-dollar rate.'' If such veteran 
or veteran's survivor returns to the U.S., VA will resume payments at 
the full-dollar rate, effective on the date determined under Sec.  
5.614, ``Filipino veterans and their survivors: Effective dates for 
benefits at the full-dollar rate.'' However, if a veteran or a 
veteran's survivor becomes eligible for full-dollar rate benefits for 
the first time on or after July 1 of any calendar year, the 183-day 
rule will not apply during that calendar year. VA will not consider a 
veteran or a veteran's survivor to have been absent from the U.S. if he 
or she left and returned to the U.S. on the same date.
    (2) A veteran or a veteran's survivor receiving benefits at the 
full-dollar rate under this section must notify VA within 30 days of 
leaving the U.S., or within 30 days of losing either his or her U.S. 
citizenship or lawful permanent resident alien status. When a veteran 
or a veteran's survivor no longer meets the eligibility requirements of 
paragraph (b) of this section, VA will reduce his or her payment to the 
rate of $0.50 for each dollar authorized under the law, effective on 
the date determined under Sec.  5.618. If such veteran or veteran's 
survivor regains his or her U.S. citizenship or lawful permanent 
resident alien status, VA will restore full-dollar rate benefits, 
effective on the date determined under Sec.  5.614.
    (3) When requested to do so by VA, a veteran or a veteran's 
survivor receiving benefits at the full-dollar rate under this section 
must verify that he or she continues to meet the residency and 
citizenship or permanent resident alien status requirements of 
paragraph (b) of this section. VA will advise the veteran or survivor 
at the time of the request that the verification must be received 
within 60 days or the rate of payment will be reduced. If VA does not 
receive the evidence within 60 days, VA will reduce his or her payment 
to the rate of $0.50 for each dollar authorized, as provided in Sec.  
5.104, ``Certifying continuing eligibility to receive benefits.'' If VA 
subsequently receives the requested evidence of continued eligibility, 
it will resume payments at the full-dollar rate, effective on the date 
determined under Sec.  5.614.
    (4) A veteran or a veteran's survivor receiving benefits at the 
full-dollar rate under this section must promptly notify VA of any 
change in his or her address. If mail from VA to the veteran or 
survivor is returned to VA by the U.S. Postal Service, VA will make 
reasonable efforts to determine the correct mailing address. If VA is 
unable to determine the correct mailing address through reasonable 
efforts, VA will reduce benefit payments to the rate of $0.50 for each 
dollar authorized under law, effective on the date determined under 
Sec.  5.618. If VA subsequently receives evidence of a valid U.S. 
mailing address, it will resume payments at the full-dollar rate, 
effective on the date determined under Sec.  5.614.

(Authority: 38 U.S.C. 107, 501(a))

Sec.  5.614  Filipino veterans and their survivors: Effective dates for 
benefits at the full-dollar rate.

    Public Laws 106-377 and 108-183, which provide disability 
compensation and dependency and indemnity compensation at full-dollar 
rates to certain Filipino veterans and their survivors, are considered 
liberalizing laws. As such, the provisions of Sec.  5.152, ``Effective 
dates of awards of VA benefits based on a liberalizing change in law,'' 
apply when determining the effective date of an award. If the 
requirements of Sec.  5.152 are not satisfied, then the effective date 
of an award of benefits at the full-dollar rate under Sec.  5.613, 
``Compensation at the full-dollar rate for certain Filipino veterans or 
their survivors residing in the United States,'' will be determined as 
follows:
    (a) Effective date of initial entitlement to the full-dollar rate. 
The latest of the following:
    (1) Date entitlement arose;
    (2) Date on which the veteran or survivor first met the residency 
and citizenship or permanent resident alien status requirements in 
Sec.  5.613, if VA receives evidence of this within one year of that 
date; or
    (3) Effective date of service connection, provided VA receives 
evidence that the veteran or survivor meets the residency and 
citizenship or permanent resident alien status requirements in Sec.  
5.613 within one year of the date of notification of the decision 
establishing service connection.
    (b) Effective date of resumption of the full-dollar rate. Depending 
on the reason for reduction to the rate of $0.50 for each dollar, the 
effective date for restored eligibility for the full-dollar rate will 
be:
    (1) The date the beneficiary regains his or her U.S. citizenship or 
lawful permanent resident alien status as required in Sec.  5.613;
    (2) The date the veteran or survivor returned to the United States 
after an absence of more than 60 consecutive days;
    (3) The first day of the calendar year following the year in which 
the veteran or survivor was absent from the United States for a total 
of 183 days or more, or the first day after that date that the veteran 
or survivor returns to the United States;
    (4) In the case of resumption of the full-dollar rate under Sec.  
5.613(d)(3), the date the requested evidence of continued eligibility 
is received by VA; or
    (5) In the case of resumption of the full-dollar rate under Sec.  
5.613(d)(4), the date VA receives evidence of a valid U.S. mailing 
address.
    (c) When payments at the full-dollar rate will begin after 
eligibility is restored. In the case of a veteran or survivor whose 
eligibility is restored under Sec.  5.613, VA will resume payments at 
the full-dollar rate, if otherwise in order, effective the first day of 
the month following the date established in paragraph (b) of this 
section. However, such increased payments will be retroactive no more 
than one year prior to the date on which VA receives evidence that he 
or she again met the requirements.

(Authority: 38 U.S.C. 107; Pub. L. 106-377 App. A, 114 Stat. 1441A-
57; and Pub. L. 108-183, 117 Stat. 2657)

Sec.  5.615  Parents' dependency and indemnity compensation based on 
certain Philippine service.

    (a) Scope. This regulation applies to claims for parents' 
dependency and indemnity compensation based on the following types of 
service, as described in Sec.  5.610, ``Eligibility for VA benefits 
based on Philippine service.''
    (1) Service in the Commonwealth Army of the Philippines;
    (2) Service as a guerrilla; and
    (3) Service as a New Philippine Scout.
    (b) Income limitations. Dependency and indemnity compensation is 
not payable to a parent or parents whose annual income exceeds the 
limitations set forth in 38 U.S.C. 1315(b), (c), or (d). For parents' 
dependency and indemnity compensation, these income limitations will be 
at a rate of $0.50 for each dollar. However, if the beneficiary meets 
the requirements for the full-dollar rate in Sec.  5.613, then these 
income limitations will be at the full-dollar rate.

(Authority: 38 U.S.C. 107; Pub. L. 108-183, 117 Stat. 2651)


    Cross References: Eligibility requirements and payment rules for 
parents' DIC. See Sec. Sec.  5.530 through 5.535.


Sec.  5.616  Hospitalization in the Philippines.

    Hospitalization in the Philippines under 38 U.S.C. 1731, 1732, and 
1733 does not qualify the deceased for burial benefits based on death 
while properly hospitalized by VA.

[[Page 37798]]


(Authority: 38 U.S.C. 107)


    Cross References: Burial benefits. See Sec. Sec.  5.630 through 
5.654.


Sec.  5.617  Burial benefits at the full-dollar rate for certain 
Filipino veterans residing in the United States on the date of death.

    (a) Definitions. For purposes of this section:
    (1) United States (U.S.) means the states, territories, and 
possessions of the United States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    (2) Residing in the U.S. means an individual's principal, actual 
dwelling place was in the U.S. When death occurs outside the U.S., VA 
will consider the deceased individual to have been residing in the U.S. 
on the date of death if the individual maintained his or her principal, 
actual dwelling place in the U.S. until his or her most recent 
departure from the U.S., and he or she had been physically absent from 
the U.S. less than 61 consecutive days when he or she died.
    (3) Citizen of the U.S. means any individual who acquires U.S. 
citizenship through birth in the territorial U.S., birth abroad as 
provided under title 8, United States Code, or through naturalization, 
and has not renounced his or her U.S. citizenship, or had such 
citizenship cancelled, revoked, or otherwise terminated.
    (4) Lawfully admitted for permanent residence means that the 
individual had been, and continued to be, lawfully accorded the 
privilege of residing permanently in the U.S. as an immigrant by the 
U.S. Citizenship and Immigration Services under title 8, United States 
Code, on the date of death.
    (b) Eligibility requirements. VA will pay burial benefits under 38 
U.S.C. chapter 23, at the full-dollar rate, based on service described 
in Sec.  5.610(c) or (d), when an individual who performed such service 
dies after November 1, 2000, or based on service described in Sec.  
5.610(b) when an individual who performed such service dies after 
December 15, 2003, and was on the date of death:
    (1) Residing in the U.S.; and was
    (2) Either--
    (i) A citizen of the U.S., or
    (ii) An alien lawfully admitted for permanent residence in the 
U.S.; and was
    (3) Either--
    (i) Receiving compensation under 38 U.S.C. chapter 11; or
    (ii) Meeting the disability, income, and net worth requirements of 
Sec.  5.370, ``Eligibility and entitlement requirements for Improved 
Pension,'' and would have been eligible for pension if the veteran's 
service had been deemed to be active military service.
    (c) Evidence of eligibility. (1)(i) Evidence establishing that the 
veteran was residing in the U.S. on the date of death should identify 
the veteran's name and relevant dates, and may include:
    (A) A valid driver's license issued by the state of residence;
    (B) Employment records, which may consist of pay stubs, W-2 forms, 
and certification of the filing of Federal, State, or local income tax 
returns;
    (C) Residential leases, rent receipts, utility bills and receipts, 
or other relevant documents showing dates of utility service at a 
leased residence;
    (D) Hospital or medical records showing medical treatment or 
hospitalization of the veteran or survivor, and showing the name of the 
medical facility or treating physician;
    (E) Property tax bills and receipts; and
    (F) School records.
    (ii) A Post Office box mailing address in the veteran's name does 
not constitute evidence showing that the veteran was lawfully residing 
in the United States on the date of death.
    (2) In a claim for full-dollar rate burial payments based on the 
deceased veteran having been a natural born citizen of the U.S., a 
valid original or copy of one of the following documents is required:
    (i) A valid U.S. passport;
    (ii) A birth certificate showing that he or she was born in the 
U.S.; or
    (iii) A Report of Birth Abroad of a Citizen of the U.S. issued by a 
U.S. consulate.
    (3) In a claim for full-dollar rate burial payments based on the 
deceased veteran having been a naturalized citizen of the U.S., only 
verification of that status by the U.S. Citizenship and Immigration 
Services to VA, or a valid U.S. passport, will be sufficient proof for 
purposes of eligibility for full-dollar rate benefits.
    (4) In a claim for full-dollar rate burial payments based on the 
deceased veteran having been an alien lawfully admitted for permanent 
residence in the U.S., only verification of that status by the U.S. 
Citizenship and Immigration Services to VA will be sufficient proof for 
purposes of eligibility for full-dollar rate benefits.

(Authority: 38 U.S.C. 107, 501(a))

Sec.  5.618  Filipino veterans and their survivors: Effective dates of 
reductions and discontinuances for benefits at the full-dollar rate.

    (a) General rule. VA will assign an effective date of a reduction 
or discontinuance of benefits payable to a Filipino veteran or survivor 
in accordance with 38 CFR 5.705, ``General effective dates for 
reduction or discontinuance of benefits.''
    (b) Discontinuance based on the withdrawal of recognition of 
service. When a discontinuance is based on the withdrawal of 
recognition of service, the discontinuance will be effective the first 
day of the month that follows the month for which VA last paid 
benefits.
    (c) Reduction of payments from the full-dollar rate to the half-
dollar rate. The effective date of discontinuance of the full-dollar 
rate of payment under Sec.  5.613 ``Compensation at the full-dollar 
rate for certain Filipino veterans or their survivors residing in the 
United States,'' and reduction to the $0.50 rate of payment will be the 
earliest of the dates stated in this section. Where an award is 
reduced, the reduced rate will be effective the day following the date 
of discontinuance of the greater benefit.
    (1) If a veteran or survivor receiving benefits at the full-dollar 
rate under Sec.  5.613 is physically absent from the U.S. for a total 
of 183 days or more during any calendar year, VA will reduce 
compensation to the rate of $0.50 for each dollar authorized under the 
law, effective on the 183rd day of absence from the U.S.
    (2) If a veteran or survivor receiving benefits at the full-dollar 
rate under Sec.  5.613 is physically absent from the U.S. for more than 
60 consecutive days, VA will reduce compensation to the rate of $0.50 
for each dollar authorized under the law, effective on the 61st day of 
the absence.
    (3) If a veteran or survivor receiving benefits at the full-dollar 
rate under Sec.  5.613 loses either U.S. citizenship or status as an 
alien lawfully admitted for permanent residence in the U.S., VA will 
reduce compensation to the rate of $0.50 for each dollar authorized 
under the law, effective on the day he or she no longer satisfies one 
of these criteria.
    (4) In the case of a veteran or survivor receiving benefits at the 
full-dollar rate under Sec.  5.613, if VA requests evidence of 
verification of continued eligibility under Sec.  5.613, but does not 
receive such evidence within 60 days of such request, VA will reduce 
compensation to the rate of $0.50 for each dollar authorized under the 
law, effective as provided in Sec.  5.104, ``Certifying continuing 
eligibility to receive benefits.''
    (5) If mail to a veteran or survivor receiving benefits at the 
full-dollar rate under Sec.  5.613 is returned to VA by the U.S. Postal 
Service, VA will make reasonable efforts to determine the correct 
mailing address. If VA is unable to determine the veteran's or 
survivor's correct address through reasonable efforts, VA will reduce 
compensation to the rate of $0.50 for each dollar authorized under law, 
effective the first

[[Page 37799]]

day of the month that follows the month for which VA last paid 
benefits.

    Cross-Reference: 38 CFR 5.705 ``General effective dates for 
reduction or discontinuance of benefits.''

(Authority: 38 U.S.C. 107)

Sec. Sec.  5.619--5.629  [Reserved]

[FR Doc. 06-5923 Filed 6-29-06; 8:45 am]
BILLING CODE 8320-01-P