[House Report 114-206]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-206
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VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 2015
_______
July 16, 2015.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 675]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 675) to increase, effective as of December 1,
2015, the rates of compensation for veterans with service-
connected disabilities and the rates of dependency and
indemnity compensation for the survivors of certain disabled
veterans, and for other purposes, having considered the same,
report favorably thereon with amendments and recommend that the
bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 6
Background and Need for Legislation.............................. 7
Hearings......................................................... 12
Subcommittee Consideration....................................... 13
Committee Consideration.......................................... 13
Committee Votes.................................................. 14
Committee Oversight Findings..................................... 14
Statement of General Performance Goals and Objectives............ 14
New Budget Authority, Entitlement Authority, and Tax Expenditures 14
Earmarks and Tax and Tariff Benefits............................. 14
Committee Cost Estimate.......................................... 14
Congressional Budget Office Estimate............................. 14
Federal Mandates Statement....................................... 19
Advisory Committee Statement..................................... 19
Constitutional Authority Statement............................... 19
Applicability to Legislative Branch.............................. 20
Statement on Duplication of Federal Programs..................... 20
Disclosure of Directed Rulemaking................................ 20
Section-by-Section Analysis of the Legislation................... 20
Changes in Existing Law Made by the Bill as Reported............. 23
Amendment
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans'
Compensation Cost-of-Living Adjustment Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--COMPENSATION COST-OF-LIVING ADJUSTMENT
Sec. 101. Increase in rates of disability compensation and dependency
and indemnity compensation.
Sec. 102. Publication of adjusted rates.
TITLE II--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS
Sec. 201. Extending temporary expansion of United States Court of
Appeals for Veterans Claims.
Sec. 202. Recall of retired judges of United States Court of Appeals
for Veterans Claims.
Sec. 203. Life insurance program relating to judges of United States
Court of Appeals for Veterans Claims.
Sec. 204. Voluntary contributions to enlarge survivors' annuity.
Sec. 205. Salaries of judges of United States Court of Appeals for
Veterans Claims.
Sec. 206. Selection of chief judge of United States Court of Appeals
for Veterans Claims.
TITLE III--IMPROVEMENT OF CLAIMS PROCESSING
Sec. 301. Interim payments of compensation benefits under laws
administered by the Secretary of Veterans Affairs.
Sec. 302. Claims processors training.
Sec. 303. Notice of average times for processing claims and percentage
of claims approved.
TITLE IV--OTHER MATTERS
Sec. 401. Clarification of eligible recipients of certain accrued
benefits upon death of beneficiary.
Sec. 402. Observance of Veterans Day.
TITLE I--COMPENSATION COST-OF-LIVING ADJUSTMENT
SEC. 101. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY
AND INDEMNITY COMPENSATION.
(a) Rate Adjustment.--Effective on December 1, 2015, the Secretary of
Veterans Affairs shall increase, in accordance with subsection (c), the
dollar amounts in effect on November 30, 2015, for the payment of
disability compensation and dependency and indemnity compensation under
the provisions specified in subsection (b).
(b) Amounts To Be Increased.--The dollar amounts to be increased
pursuant to subsection (a) are the following:
(1) Wartime disability compensation.--Each of the dollar
amounts under section 1114 of title 38, United States Code.
(2) Additional compensation for dependents.--Each of the
dollar amounts under section 1115(1) of such title.
(3) Clothing allowance.--The dollar amount under section 1162
of such title.
(4) Dependency and indemnity compensation to surviving
spouse.--Each of the dollar amounts under subsections (a)
through (d) of section 1311 of such title.
(5) Dependency and indemnity compensation to children.--Each
of the dollar amounts under sections 1313(a) and 1314 of such
title.
(c) Determination of Increase.--
(1) Percentage.--Except as provided in paragraph (2), each
dollar amount described in subsection (b) shall be increased by
the same percentage as the percentage by which benefit amounts
payable under title II of the Social Security Act (42 U.S.C.
401 et seq.) are increased effective December 1, 2015, as a
result of a determination under section 215(i) of such Act (42
U.S.C. 415(i)).
(2) Rounding.--Each dollar amount increased under paragraph
(1), if not a whole dollar amount, shall be rounded to the next
lower whole dollar amount.
(d) Special Rule.--The Secretary of Veterans Affairs may adjust
administratively, consistent with the increases made under subsection
(a), the rates of disability compensation payable to persons under
section 10 of Public Law 85-857 (72 Stat. 1263) who have not received
compensation under chapter 11 of title 38, United States Code.
SEC. 102. PUBLICATION OF ADJUSTED RATES.
The Secretary of Veterans Affairs shall publish in the Federal
Register the amounts specified in section 101(b), as increased under
that section, not later than the date on which the matters specified in
section 215(i)(2)(D) of the Social Security Act (42 U.S.C.
415(i)(2)(D)) are required to be published by reason of a determination
made under section 215(i) of such Act during fiscal year 2016.
TITLE II--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS
SEC. 201. EXTENDING TEMPORARY EXPANSION OF UNITED STATES COURT OF
APPEALS FOR VETERANS CLAIMS.
Section 7253(i)(2) of title 38, United States Code, is amended by
striking ``January 1, 2013'' and inserting ``January 1, 2020''.
SEC. 202. RECALL OF RETIRED JUDGES OF UNITED STATES COURT OF APPEALS
FOR VETERANS CLAIMS.
Paragraph (1) of section 7257(b) of title 38, United States Code, is
amended to read as follows:
``(1)(A) The chief judge may recall for further service on the Court
a recall-eligible retired judge in accordance with this section. Such a
recall shall be made upon written certification by the chief judge that
substantial service is expected to be performed by the retired judge
for such period, not to exceed 90 days (or the equivalent), as
determined by the chief judge to be necessary to meet the needs of the
Court.
``(B)(i) A recall-eligible judge may request that the chief judge
recall the recall-eligible judge for a period of service of not less
than 90 days (or the equivalent).
``(ii) The chief judge shall approve a request made by a recall-
eligible judge pursuant to clause (i) unless the chief judge certifies,
in writing, that the Court does not have--
``(I) sufficient work to assign such recall-eligible judge
during the period of recalled service; or
``(II) sufficient resources to provide to such recall-
eligible judge appropriate administrative and office support.
``(iii) At any time during the period of recalled service of a judge
who is recalled pursuant to clause (i), the chief judge may terminate
such recalled service if the chief judge makes a written certification
described in clause (ii).''.
SEC. 203. LIFE INSURANCE PROGRAM RELATING TO JUDGES OF UNITED STATES
COURT OF APPEALS FOR VETERANS CLAIMS.
(a) In General.--Section 7281 of title 38, United States Code, is
amended by adding at the end the following:
``(j) For purposes of chapter 87 of title 5, a judge who is in
regular active service and a judge who is retired under section 7296 of
this title or under chapter 83 or 84 of title 5 shall be treated as an
employee described in section 8701(a)(5) of title 5.''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to any payment made on or after the first day of the first
applicable pay period beginning on or after the date of the enactment
of this Act.
SEC. 204. VOLUNTARY CONTRIBUTIONS TO ENLARGE SURVIVORS' ANNUITY.
Section 7297 of title 38, United States Code, is amended by adding at
the end the following new subsection:
``(p)(1) A covered judge who makes an election under subsection (b)
may purchase, in three-month increments, up to an additional year of
service credit for each year of Federal judicial service completed,
under the terms set forth in this section.
``(2) In this subsection, the term `covered judge' means any of the
following:
``(A) A judge in regular active service.
``(B) A retired judge who is a recall-eligible retired judge
pursuant to subsection (a) of section 7257 of this title.
``(C) A retired judge who would be a recall-eligible retired
judge pursuant to subsection (a) of section 7257 but for--
``(i) meeting the aggregate recall service
requirements under subsection (b)(3) of such section;
or
``(ii) being permanently disabled as described by
subsection (b)(4) of such section.''.
SEC. 205. SALARIES OF JUDGES OF UNITED STATES COURT OF APPEALS FOR
VETERANS CLAIMS.
Section 7253(e) of title 38, United States Code, is amended by
striking ``district courts'' and inserting ``courts of appeals''.
SEC. 206. SELECTION OF CHIEF JUDGE OF UNITED STATES COURT OF APPEALS
FOR VETERANS CLAIMS.
Section 7253(d) of title 38, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'';
(B) by redesignating subparagraph (B) as subparagraph
(C); and
(C) by inserting after subparagraph (A) the following
new subparagraph (B):
``(B) are 64 years of age or under and have at least three
years remaining in term of office; and''; and
(2) by amending paragraph (2) to read as follows:
``(2)(A) In any case in which there is no judge of the Court in
regular active service who meets the requirements under paragraph (1),
the judge of the Court in regular active service who is senior in
commission and meets subparagraph (A) or (B) and subparagraph (C) of
paragraph (1) shall act as the chief judge.
``(B) In any case under subparagraph (A) of this paragraph in which
there is no judge of the Court in regular active service who meets
subparagraph (A) or (B) and subparagraph (C) of paragraph (1), the
judge of the Court in regular active service who is senior in
commission and meets subparagraph (C) shall act as the chief judge.''.
TITLE III--IMPROVEMENT OF CLAIMS PROCESSING
SEC. 301. INTERIM PAYMENTS OF COMPENSATION BENEFITS UNDER LAWS
ADMINISTERED BY THE SECRETARY OF VETERANS AFFAIRS.
(a) In General.--Subchapter III of chapter 51 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 5127. Interim payments of compensation benefits
``(a) In General.--In the case of a claim described in subsection
(b), prior to adjudicating the claim, the Secretary shall make interim
payments of monetary benefits to the claimant based on any disability
for which the Secretary has made a decision or, with respect to such a
disability that is not compensable, notify the claimant of the rating
relating to such disability. Upon the adjudication of the claim, the
Secretary shall pay to the claimant any monetary benefits awarded to
the claimant for the period of payment under section 5111 of this title
less the amount of such benefits paid to the claimant under this
section.
``(b) Claim Described.--A claim described in this subsection is a
claim for disability compensation under chapter 11 of this title
(including a claim regarding an increased rating)--
``(1) the adjudication of which requires the Secretary to
make decisions with respect to two or more disabilities; and
``(2) for which, before completing the adjudication of the
claim, the Secretary makes a decision with respect to a
disability that would result in the payment of monetary
benefits to the claimant upon the adjudication of the claim.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end of the items relating to
such subchapter the following new item:
``5127. Interim payments of compensation benefits.''.
SEC. 302. CLAIMS PROCESSORS TRAINING.
(a) Establishment.--The Secretary of Veterans Affairs shall establish
a training program to provide newly hired claims processors of the
Department of Veterans Affairs with training for a period of not less
than two years. In carrying out such program, the Secretary shall
identify successful claims processors of the Department who can assist
in the training of newly hired claims processors.
(b) Ability to Process Claims.--The Secretary shall carry out the
training program established under subsection (a) without increasing
the amount of time in which claims are processed by the Department.
(c) Effective Date.--This section shall take effect on the date that
is one year after the date of the enactment of this Act.
SEC. 303. NOTICE OF AVERAGE TIMES FOR PROCESSING CLAIMS AND PERCENTAGE
OF CLAIMS APPROVED.
(a) Public Notice.--The Secretary of Veterans Affairs shall post the
information described in subsection (c)--
(1) in a conspicuous place in each regional office and claims
intake facilities of the Department of Veterans Affairs; and
(2) on the Internet Web site of the Department.
(b) Notice to Applicants.--
(1) In general.--The Secretary shall provide to each person
who submits a claim for benefits under the laws administered by
the Secretary before the person submits such claim--
(A) notice of the information described in subsection
(c); and
(B) notice that the person is eligible to receive up
to an extra year of benefits payments if the person
files a claim that is fully developed.
(2) Acknowledgment of receipt of notice.--Each person who
submits a claim for benefits under the laws administered by the
Secretary shall include in such application a signed form
acknowledging that the person received the information
described in subsection (c).
(c) Information Described.--
(1) In general.--The information described in this subsection
is the following:
(A) The average processing time of the claims
described in paragraph (2) and the percentage of such
submitted claims for which benefits are awarded.
(B) The percentage of each of the following types of
submitted claims for benefits under the laws
administered by the Secretary of Veterans Affairs for
which benefits are awarded:
(i) Claims filed by veterans who authorized a
veterans service organization to act on the
veterans' behalf under a durable power of
attorney.
(ii) Claims filed by veterans who authorized
a person other than a veterans service
organization to act on the veterans' behalf
under a durable power of attorney.
(iii) Claims filed by veterans who did not
authorize a person to act on the veterans'
behalf under a durable power of attorney.
(2) Claims described.--The claims described in this paragraph
are each of the following types of claims for benefits under
the laws administered by the Secretary of Veterans Affairs:
(A) A fully developed claim that is submitted in
standard electronic form.
(B) A fully developed claim that is submitted in
standard paper form.
(C) A claim that is not fully developed that is
submitted in standard electronic form.
(D) A claim that is not fully developed that is
submitted in standard paper form.
(E) A claim that is not fully developed that is
submitted in non-standard paper form.
(3) Update of information.--The information described in this
subsection shall be updated not less frequently than once each
fiscal quarter.
TITLE IV--OTHER MATTERS
SEC. 401. CLARIFICATION OF ELIGIBLE RECIPIENTS OF CERTAIN ACCRUED
BENEFITS UPON DEATH OF BENEFICIARY.
(a) Eligibility of Estate.--Section 5121(a)(2) of title 38, United
States Code, is amended--
(1) in the matter preceding subparagraph (A), by inserting
``, or estate,'' after ``person''; and
(2) by adding at the end the following new subparagraph:
``(D) The estate of the veteran (unless the estate
will escheat).''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to the death of an individual on or after the date that is
two years after the date of the enactment of this Act.
SEC. 402. OBSERVANCE OF VETERANS DAY.
(a) Two Minutes of Silence.--Chapter 1 of title 36, United States
Code, is amended by adding at the end the following new section:
``Sec. 145. Veterans Day
``The President shall issue each year a proclamation calling on the
people of the United States to observe two minutes of silence on
Veterans Day in honor of the service and sacrifice of veterans
throughout the history of the Nation, beginning at--
``(1) 3:11 p.m. Atlantic standard time;
``(2) 2:11 p.m. eastern standard time;
``(3) 1:11 p.m. central standard time;
``(4) 12:11 p.m. mountain standard time;
``(5) 11:11 a.m. Pacific standard time;
``(6) 10:11 a.m. Alaska standard time; and
``(7) 9:11 a.m. Hawaii-Aleutian standard time.''.
(b) Clerical Amendment.--The table of sections for chapter 1 of title
36, United States Code, is amended by adding at the end the following
new item:
``145. Veterans Day.''.
Amend the title so as to read:
A bill to increase, effective as of December 1, 2015, the
rates of compensation for veterans with service-connected
disabilities and the rates of dependency and indemnity
compensation for the survivors of certain disabled veterans, to
amend title 38, United States Code, to improve the United
States Court of Appeals for Veterans Claims, to improve the
processing of claims by the Secretary of Veterans Affairs, and
for other purposes.
Purpose and Summary
H.R. 675, as amended, the ``Veterans' Compensation Cost-of-
Living Adjustment Act of 2015,'' was introduced by
Representative Ralph Abraham of Louisiana, Chairman of the
Subcommittee of Disability Assistance and Memorial Affairs
(DAMA), on February 3, 2015. H.R. 675, as amended, incorporates
the text of: H.R. 995, introduced by Representative Stephen
Lynch of Massachusetts on February 13, 2015; H.R. 1067, as
amended, introduced by Representative Ryan Costello of
Pennsylvania on February 25, 2015; H.R 1414, as amended,
introduced by Representative Dina Titus of Nevada on March 17,
2015, and H.R. 1569, introduced by Representative Lee Zeldin of
New York on March 25, 2015.
Together, these provisions would, (1) as of December 1,
2015, increase the rates of Wartime Disability Compensation,
Compensation for Dependents, Clothing Allowance, Dependency and
Indemnity Compensation to Surviving Spouse, and Dependency and
Indemnity Compensation to Children by the same percentage as
the increase in benefits provided under title II (Old Age,
Survivors, and Disability Insurance) of the Social Security
Act; (2) extend until 2020 the temporary expansion of the Court
of Appeals for Veterans Claims (CAVC); permit retired CAVC
judges to be recalled for more than 90 days under certain
circumstances; (3) allow regular service and retired CAVC
judges to participate in the government life insurance program;
(4) authorize certain CAVC judges to purchase additional
service credit for retirement purposes; set the salary of CAVC
judges at the same rate as that of federal appellate judges;
(5) revise the eligibility criteria of the CAVC chief judge;
(6) direct the Secretary of the Department of Veterans Affairs
(VA) to make interim payments based on any disability for which
the Secretary has already made a decision prior to adjudicating
a claim requiring decisions with respect to two or more
disabilities; (7) establish a statutory two-year training
program for claims processors; (8) direct the Secretary to
provide notice of average times for processing claims and
percentage of claims approved; (9) require VA to pay accrued
benefits for certain deceased veterans to the veteran's estate;
and (10) codify a two minute moment of silence on Veterans'
Day.
Background and Need For Legislation
TITLE I--COMPENSATION COST OF LIVING ADJUSTMENT
Section 101--Increase in rates of disability compensation and
dependency and indemnity compensation
The purpose of the disability compensation program is to
provide relief from the impaired earning capacity of veterans
disabled as the result of their military service. The amount of
compensation payable varies according to the degree of
disability. This amount in turn is required by law to
represent, to the extent practicable, the average impairment in
earning capacity in civilian occupations resulting from such
disability or combination of disabilities.
To be eligible to receive disability compensation, a
veteran must have a disability incurred or aggravated during
military service, which is not the result of willful
misconduct, and must have been discharged under other than
dishonorable conditions. The responsibility for determining a
veteran's entitlement to service-connection for a disability
rests with VA.
Surviving spouses and dependent children of veterans who
died of disabilities determined by VA to be service-connected
(including veterans who died while on active duty) or who had a
service-connected disability rated at 100 percent for certain
periods of time prior to death are entitled to receive monthly
Dependency Indemnity Compensation (DIC) benefits. Additional
amounts are paid to survivors who are housebound, in need of
aid and attendance, or who have minor children. The purpose of
DIC benefits authorized under chapter 13 of title 38, U.S.C.,
is to provide partial compensation to the appropriate survivors
for the loss in financial support due to the service-connected
death. Income and need are not factors in determining a
surviving spouse's or child's entitlement because the nation,
in part, assumes the legal and moral obligation of the veteran
to support the spouse and children.
Each year, the Committee approves and reports legislation
authorizing the cost-of-living adjustment (COLA) by reference
to the yet-to-be-determined Social Security increase. Section
101 of H.R. 675, as amended, would increase the rates of
Wartime Disability Compensation, Additional Compensation for
Dependents, Clothing Allowance, Dependency and Indemnity
Compensation to Surviving Spouse, and Dependency and Indemnity
Compensation to Children. Such increase in benefits would
increase to be the same percentage as the increase in benefits
provided under title II (Old Age, Survivors, and Disability
Insurance) of the Social Security Act.
Section 102--Publication of adjusted rates
Section 102 of H.R. 675, as amended, would require the
Secretary to publish in the Federal Register the amounts
specified in section 101, as increased under that section, not
later than the date on which the matters specified in section
415(i)(2)(D) of the Social Security Act (42 U.S.C.
415(i)(2)(D)) are required to be published by reason of
determination made under section 415(i) of such Act during
fiscal year 2016.
TITLE II--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS
Section 201--Extending temporary expansion of United States Court of
Appeals for Veterans Claims
In 1988, Congress created the CAVC to afford veterans the
opportunity for an independent judicial review of decisions
issued by the Board of Veterans Appeals (Board). The CAVC is an
independent appellate court that only reviews veterans'
benefits cases, applying general principles for appellate
review of federal agency final decisions.
Generally, judges are appointed for 15-year terms, and upon
retirement, each judge has the option to agree to be available
for further service as a recall-eligible senior judge. During
any period of recall service, a senior judge has all of the
judicial authority and powers of a judge in active service. The
court consists of seven permanent, active judges. Congress
authorized two additional judges as part of a temporary
expansion provision in 2001. The temporary expansion was
reauthorized in 2005 and 2009, but expired on January 1, 2013.
As a result of the temporary expansion, CAVC currently has nine
active judges, but one judge has announced his intention to
retire early next year. Under current law, this position will
not be filled. There will be no additional judicial
appointments to the CAVC until there are fewer than seven
permanent judges.
The CAVC anticipates that appeals will increase
proportionally with the increased decisions the Board has
projected it will complete in the coming years. In FY 2013, the
Board rendered approximately 42,000 decisions, but in FY 2014,
the Board decided more than 55,500. The Board projects that it
will decide more than 57,000 appeals in FY 2015, with similar
and higher projections for following years. The number of
appeals being filed at the CAVC already is estimated to be at
least 4,500 this calendar year, with projections of continued
growth thereafter.\1\ During the April 14, 2015, DAMA hearing,
Chief Judge Bruce E. Kasold's written testimony stated that the
re-authorization for nine judges will help the Court continue
to manage its significant caseload.
---------------------------------------------------------------------------
\1\Kasold, Bruce E., Chief Judge, U.S. Court of Appeals for
Veterans Claims, Statement to the House of Representatives, Committee
on Appropriations, Subcommittee on Military Construction, Veterans
Affairs, and Related Agencies Hearing, March 18, 2015.
---------------------------------------------------------------------------
Section 201 of H.R. 675, as amended, would extend the
temporary expansion of the Court of Appeals for Veterans Claims
(CAVC) until January 1, 2020. This provision will continue the
authorization for nine judges through 2020, at which time the
need can again be reviewed.
Section 202--Recall of retired judges of United States Court of Appeals
for Veterans Claims
Current law authorizes the chief judge to request that a
recall-eligible retired judge temporarily return to service
upon written certification by the chief judge that substantial
service is expected to be performed by such retired judge for a
period not to exceed 90 days (or the equivalent), as determined
by the chief judge to be necessary to meet the needs of the
court. Pursuant to section 7257(b)(3) of title 38, U.S.C.,
retired judges who are recall-eligible and who serve in the
aggregate of at least five years of recalled service are no
longer subject to mandatory recall.
Section 202 of H.R. 675, as amended, would authorize the
chief judge to recall a retired judge who has volunteered to be
available for temporary service on the CAVC. The chief judge
must provide a written certification that substantial service
is expected to be performed by the retired judge for the period
not to exceed 90 days (or the equivalent). Section 202 would
amend current law by permitting a recall-eligible judge to
request that the chief judge recall such judge for a period of
service of not less than 90 days (or the equivalent). The chief
judge would be required to approve such a request, unless the
chief judge certifies, in writing, that the CAVC does not have
sufficient work to assign such judge during the period of
recalled service or sufficient resources to provide to such
recall-eligible judge appropriate administrative and office
support. The provision would also authorize the chief judge to
terminate such recalled service. However, in order to terminate
such recalled-service, the chief judge would be required to
provide a written certification that the CAVC no longer has
sufficient work or resources to provide appropriate
administrative and office support.
Section 203--Life insurance program related to judges of United States
Court of Appeals for Veterans Claims
Section 203 of H.R. 675, as amended, would establish that a
judge who is in regular active service and a judge who is
retired shall be treated as an employee for purposes of
eligibility in the federal government life insurance program.
Under this section, CAVC judges would be eligible for the
Federal Employee Group Life Insurance (FEGLI) program.
Additionally, this section clarifies that CAVC judges may
purchase life insurance at the employee rate, and authorizes
retired judges to do so, consistent with other federal judges,
active and retired.
Section 204--Voluntary contributions to enlarge survivors' annuity
Section 204 of H.R. 675, as amended, would authorize a
covered judge to purchase, in three-month increments, up to an
additional year of service credit for each year of Federal
judicial service completed. A covered judge is defined as: (1)
a judge in regular active service; (2) a retired judge who is
recall-eligible; or (3) a retired judge who would be recall-
eligible but for meeting the aggregate recall service
requirements under subsection section 7257(b)(3) of title 38,
U.S.C., or is permanently disabled as described by section
7257(b)(4) of title 38, U.S.C. This section would allow CAVC
judges to purchase additional service credit for annuity
purposes, the same as for other federal judges.
Section 205--Salaries of judges of United States Court of Appeals for
Veterans Claims
Section 205 of H.R. 675, as amended, would set the salary
of CAVC judges at the rate applicable to federal appellate
court judges. Currently, their salary is set at the rate
applicable to federal district court judges.
Section 206--Selection of chief judge of United States Court of Appeals
for Veterans Claims
Current law provides that the chief judge should be in
regular active service and senior in commission among the
judges of the court who have served at least one year in that
capacity.
Section 206 of H.R. 675, as amended, would revise the
qualifications for the chief judge of the CAVC. This section
would require that the chief judge: (1) be 64 years of age and
under; (2) have at least three years remaining in term of
office; and (3) have not previously served as chief judge. In
any case in which there is no judge of the CAVC who meets all
of these requirements, the judge of the CAVC in regular active
service who is senior in commission and has not served
previously as chief judge; and, has either served for at least
one year as a judge of the court, or is 64 years of age and
under and has at least three years remaining in term of office,
shall act as the chief judge.
TITLE III--IMPROVEMENT OF CLAIMS PROCESSING
Section 301--Interim payments of compensation benefits under laws
administered by the Secretary of Veterans Affairs
Veterans seeking disability benefits often seek them for
more than one medical condition. Although VA currently has the
authority to issue a determination on numerous medical
conditions within a claim, VA continues to use this authority
sparsely. During the April 14, 2015, DAMA hearing, The American
Legion testified that VA is not consistently issuing interim
decisions when evaluating multiple claims for disability.
Failing to utilize this authority increases the economic burden
on veterans who are waiting for the disability claims to be
processed in a timely and adequate manner.
Section 301 of H.R. 675, as amended, would add a new
section to Subchapter III of chapter 51 of title 38, U.S.C.,
that would direct the Secretary, prior to adjudicating a claim
that requires multiple individual determinations with respect
to two or more medical conditions, to make interim payments of
monetary benefits for any medical condition for which VA
adjudicated to the benefit of the veteran, even if VA has not
yet made a decision with respect to all medical conditions
claimed. When VA completes adjudication of all of the veteran's
medical conditions, the Secretary will pay the full amount of
accrued benefits, less the amount of the interim payments the
veteran has already received. Requiring VA to grant benefits as
it adjudicates each individual claim will mean that veterans
will receive at least some of their benefits more
expeditiously. If a veteran has pending claims for disability
compensation for two or more medical conditions, and VA makes a
decision to award benefits for one of the medical conditions,
this section would require VA to pay the awarded benefits as
soon as the decision on that claimed condition is issued,
without waiting to adjudicate pending claims for other medical
conditions.
Section 302--Claims processors training
VA has indicated that, on average, it takes two to three
years for an employee to master the skills necessary to
accurately process claims within Regional Benefits Offices.
While VA has implemented new training programs, Veteran Service
Organizations (VSO) have long reported that VA's training is
not sufficient. Section 302 of H.R. 675, as amended, would
direct the Secretary to establish a training program to provide
newly hired VA claims processors with training for a period of
not less than two years. In carrying out such a program, the
Secretary would be required to identify successful claims
processors within VA who can assist in the training of newly
hired claims processors. Accordingly, this section will require
VA to ensure adequate focus and resources remain targeted to
ongoing and improved education and training for employees.
Section 303--Notice of average times for processing claims and
percentage of claims approved
Section 303 of H.R. 675, as amended, would require VA to
inform each person who submits a claim for benefits that such
person is eligible to receive up to an extra year of benefits
payments if the person files a Fully Developed Claim (FDC). In
addition, this section would require VA to post in a
conspicuous place at each VA Regional Office and claims-intake
facility, and on its internet website, certain information
relating to the average processing time of claims and the
percentage of such submitted claims for which benefits are
awarded.
This section is intended to provide information that would
educate VA stakeholders and veterans of the available options
and consequent timeliness that would be associated with various
claims submission forms. The information would include FDCs
submitted in electronic form, FDCs submitted in paper form,
undeveloped claims submitted in paper form, undeveloped claims
submitted in standard paper form, claims submitted in a non-
standard form, and claims submitted with the assistance of a
VSO. By providing ready access to this information, the
Committee believes that veterans will be more informed of the
possible benefits for faster adjudication of certain forms of
claims submission, which will consequently shift behavior by
encouraging submissions by the most manageable formats and with
an appropriate level of VSO assistance. Additionally, this
section would require that veterans be notified of the
statutory benefit that is provided to FDCs submissions;
pursuant to statute, FDCs are eligible for up to one year of
retroactive benefits for any claims filed between August 6,
2013, and August 6, 2015. This provision is also intended to
encourage veterans to file FDCs, and is intended to result in
time savings within the claims process.
TITLE IV--OTHER MATTERS
Section 401--Clarification of eligible recipients of certain accrued
benefits upon death of beneficiary
Processing a claim for veterans' benefits may take years
and a veteran may die before VA completes adjudication of the
claim. If a veteran dies while VA is still reviewing a claim,
VA will pay any accrued benefits to which the veteran was
entitled as of the date of death to certain family members,
including the spouse, dependent children, and dependent
parents. If the veteran dies without any surviving qualifying
family members, VA currently retains the benefits.
Section 401 of H.R. 675, as amended, would provide for the
payment to the estate of a veteran all or any part of such
benefits to the veteran or to any other dependent or dependents
of the veteran, as may be determined by the Secretary. Section
401 would require VA to pay any accrued benefits to which the
veteran was entitled as of the date of death and would add the
estate of the veteran to the list of qualified family members,
unless the estate would escheat. This would enable surviving
adult children and other beneficiaries of the veteran's estate
to receive the benefits to which the veteran was legally
entitled.
Section 402--Observance of Veterans Day
On November 11, 1918, at 11:00 A.M., fighting came to an
end in World War I. Veterans Day, originally known as Armistice
Day, was first observed in 1919 to commemorate the cease-fire
on the 11th hour of the 11th day of the 11th month. It has been
customarily observed with a two minute moment of silence at
11:00 A.M. Today, observance of a moment of silence varies from
community to community and business to business around the
United States.
Section 402 of H.R. 675, as amended, would encourage the
nationwide observance of two minutes of silence on Veterans
Day. Specifically, this section would direct the President to
issue an annual proclamation calling on the people of the
United States to observe two minutes of silence on Veterans
Day, beginning at 2:11 P.M. Eastern Time, in honor of the
service and sacrifice of veterans throughout the history of the
nation. This section would call for Americans across the nation
to official hold a uniform moment of silence for our nation's
servicemen and women on Veterans Day. The Committee believes
this section would refocus the American public upon the Day's
true and original meaning.
Hearings
There were no full Committee hearings held on H.R. 675, as
amended. On April 14, 2015, the Subcommittee on Disability
Assistance and Memorial Affairs conducted a legislative hearing
on various bills introduced during the 114th Congress,
including H.R. 675, H.R. 1067, H.R. 1414, and H.R. 1569.
The following witnesses testified: The Honorable Chellie
Pingree, U.S. House of Representatives; Mr. David R.
McLenachen, Acting Deputy Under Secretary for Disability
Assistance, Veterans Benefits Administration, U.S. Department
of Veterans Affairs; Mr. Zachary Hearn, Deputy Director for
Claims, Veterans Affairs and Rehabilitation Division, The
American Legion; Mr. Blake C. Ortner, Deputy Government
Relations Director, Paralyzed Veterans of America; Mr. Paul R.
Varela, Assistant National Legislative Director, Disabled
American Veterans; Mr. Ronald B. Abrams, Joint Executive
Director, National Veterans Legal Services Program; and Mr.
Kenneth M. Carpenter, Founding Member, National Organization of
Veterans' Advocates.
Statements for the record were submitted by the following:
The Veterans of Foreign Wars and the U.S. Court of Appeals for
Veterans Claims.
Subcommittee Consideration
On April 14, 2015, the Subcommittee on Disability
Assistance and Memorial Affairs met in open markup session, a
quorum being present, and favorably forwarded to the full
Committee H.R. 675, H.R. 1067, as amended, H.R. 1414, as
amended, and H.R. 1569.
During consideration of H.R. 1067, the following amendment
was considered and agreed to by voice vote: An amendment
offered by Mr. Costello of Pennsylvania that modified the
original text to clarify that a recall-eligible judge may
request that the chief judge recall the recall-eligible judge
for a period of service not less than 90 days (or the
equivalent).
During consideration of H.R. 1414, the following amendment
in the nature of substitute was considered and agreed to by
voice vote.
An amendment in the nature of a substitute offered by Ms.
Titus of Nevada that included the provisions of H.R. 1414 and
inserted text that would: (1) require VA to establish a
training program for newly hired claim processors; (2) require
VA to publicly report on average time to process claims and the
percentage of claims approved; and (3) incorporate text from
H.R. 995, as introduced by Mr. Lynch of Massachusetts, which
would encourage Americans to observe two minutes of silence on
Veterans Day.
Committee Consideration
On May 21, 2015, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 675, as
amended, reported favorably to the House of Representatives by
voice vote. During consideration of the bill, the following
amendments were considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by Mr.
Abraham of Louisiana that incorporated the text of H.R. 1067,
originally offered by Mr. Costello of Pennsylvania, to (1)
extend the temporary expansion of the CAVC from seven to nine
judges through January 1, 2020; (2) permit retired judges to be
recalled for more than 90 days under certain circumstances;
and, (3) establish that CAVC judges are eligible for the same
salaries, life insurance programs, and retirement service
credit benefits offered to other federal appellate court
judges. The amendment in the nature of a substitute also
incorporated the text of H.R. 1414, as amended, originally
offered by Ms. Titus of Nevada, which would require that, in
cases when a veteran files a claim for two or more
disabilities, VA make interim payments for any disability for
which VA has already made a decision. The amendment in the
nature of a substitute would also establish a training program
for claims processors, and require VA to publicly post
information regarding the average time for processing claims
and the percentage of the claims approved. The amendment in the
nature of a substitute also incorporated the text of H.R. 1569,
originally offered by Mr. Zeldin of New York, and would require
VA to pay accrued benefits to the estate of a veteran if such
veteran dies before VA completes adjudication of his or her
claim.
An amendment to the Amendment in the Nature of a Substitute
offered by Mr. Costello of Pennsylvania, which would amend
certain qualifications for the chief judge of the CAVC.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report the legislation and amendments
thereto. There were no recorded votes taken on amendments or in
connection with ordering H.R. 675, as amended, reported to the
House. A motion by Ranking Member Corrine Brown of Florida to
report H.R. 675, as amended, favorably to the House of
Representatives was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 675, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
675, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 675, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 2, 2015.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 675, the Veterans'
Compensation Cost-of-Living Adjustment Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Keith Hall.
Enclosure.
H.R. 675--Veterans' Compensation Cost-of-Living Adjustment Act of 2015
Summary: H.R. 675 would make changes to several benefit
programs administered by the Department of Veterans Affairs
(VA), and to the administrative processes of the Court of
Appeals for Veterans Claims (CAVC). CBO estimates that enacting
H.R. 675 would decrease net direct spending by $4 million over
the 2016-2025 period. Pay-as-you-go procedures apply because
enacting the legislation would affect direct spending. Enacting
the bill would have no effect on revenues.
In addition, CBO estimates that implementing the bill would
cost $5 million over the 2016-2020 period, subject to the
availability of appropriated funds.
H.R. 675 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 675 is shown in Table 1. The costs of
this legislation fall within budget function 700 (veterans
benefits and services).
TABLE 1. ESTIMATED BUDGETARY EFFECTS OF H.R. 675, THE VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF
2015
----------------------------------------------------------------------------------------------------------------
Fiscal year, in millions of dollars--
-------------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDINGa
Estimated Budget Authority.............................. -16 -30 7 4 5 -30
Estimated Outlays....................................... -16 -30 7 4 5 -30
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... * * * 2 2 5
EStimated Outlays....................................... * * * 2 2 5
----------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding.
* = between zero and $500,000.
a In addition to the changes in direct spending shown above, enacting H.R. 675 would have effects beyond 2020
(see Table 2). CBO estimates that enacting H.R. 675 would decrease net direct spending by $4 million over the
2016-2025 period.
Basis of estimate: For this estimate, CBO assumes that H.R.
675 will be enacted near the beginning of fiscal year 2016,
that appropriations will reflect the estimated changes each
year, and that outlays will follow historical spending patterns
for the affected programs.
Direct Spending
H.R. 675 contains several provisions that would affect
direct spending (see Table 2). Enacting H.R. 675 would result
in a net decrease in direct spending of $30 million over the
2016-2020 period, and $4 million over the 2016-2025 period.
Cost-of-Living Adjustment Round-Down. Section 101 would
increase the amounts paid to veterans for disability
compensation and to their survivors for dependency and
indemnity compensation (DIC) by the same cost-of-living
adjustment (COLA) that recipients of Social Security receive.
Those increased payments would be rounded down to the next
lower whole dollar, effective on December 1, 2015.
TABLE 2. ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 675
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
COLA Round-down................................... -24 -30 -28 -32 -33 -34 -38 -36 -34 -38 -147 -327
Accrued Benefits.................................. 0 0 35 36 38 39 40 41 42 43 109 314
Interim Payments of Adjudicated Claims............ 8 * * * * * * * * * 8 9
-----------------------------------------------------------------------------------------------------
Total Changes in Direct Spending.............. -16 -30 7 4 5 5 2 5 8 5 -30 -4
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals due to rounding.
COLA = Cost-of-Living Adjustment; * = between zero and $500,000.
The COLA that would be authorized by this bill is assumed
in CBO's baseline, consistent with section 257 of the Balanced
Budget and Emergency Deficit Control Act. Because the COLA is
assumed in CBO's baseline, authorizing the COLA would have no
budgetary effect relative to the baseline. Relative to current
law, CBO estimates that enacting this bill would increase
spending for those programs by $662 million in fiscal year
2016. That estimate assumes that the COLA effective on December
1, 2015, would be 0.9 percent. (The annualized cost would be
about $890 million in subsequent years.)
Section 101 also would require that the increased payments
resulting from the cost-of-living adjustment be rounded down to
the next lower whole dollar. The previous authority to round
down the COLA expired at the end of calendar year 2013. Based
on projections of the number of people receiving benefits and
payments made each year, CBO estimates that enacting this
section would reduce direct spending by $327 million over the
2016-2025 period.
Accrued Benefits. Section 401 would add the estate of a
veteran to the list of payees for any accrued benefits owed to
a veteran upon his or her death. Under current law, if a
veteran dies while an application for benefits is being
processed, and that application is subsequently approved, any
benefits due to the veteran are paid to the spouse, children,
or parents of the veteran, in that order. In the absence of an
eligible survivor, no payments are made. By allowing payments
to be made to veterans' estates, section 401 would ensure that
such payments are made in all cases. Section 401 would take
effect two years after the date of enactment.
VA reports that, over the last several years, there was an
average of 4,200 cases per year where an award for benefits was
approved but there was no eligible survivor. The average amount
paid to eligible survivors is about $8,000. CBO expects the
same accrued benefit amount would be paid to veterans' estates.
After accounting for inflation and annual growth in the number
of approved applications, CBO estimates that enacting section
401 would increase direct spending by $314 million over the
2016-2025 period.
Interim Payments of Adjudicated Claims. In cases where
veterans file claims for more than one disability at the same
time, section 301 would require VA to pay disability benefits
to veterans as each claim is decided. Under current law, VA has
the authority to make such partial payments for multiple
claims, but that authority is rarely used.
Once adjudicated, VA benefits are paid retroactively from
the date of the initial application. That is, veterans usually
receive an initial lump-sum payment that covers the months
since their application was submitted. Thus, section 301 would
have the effect of shifting some payments to an earlier fiscal
year by paying certain veterans a part of their benefit earlier
than they would otherwise receive it. However, those early
payments would be fully offset by savings in the following year
when the retroactive payments would normally be made.
Based on information from VA, and assuming trends similar
to those observed in previous years, CBO estimates that about
290,000 veterans will apply for disability benefits for the
first time in 2016. CBO expects that veterans who begin
receiving payments at a disability rating of 50 percent or
greater (about 135,000 veterans) would probably have applied to
be compensated for more than one disability. Of those, CBO
estimates that half would be fully adjudicated within the same
fiscal year as the application. For those claims, enacting this
provision would not move spending from one fiscal year to
another.
For claims that would be settled in the fiscal year after
the year of submission, CBO estimates that about 20 percent
would have a claim that could be adjudicated quickly. Two-
thirds of those claims--about 9,000--would then be paid one
year earlier than under current law. Assuming an average rating
of 10 percent ($140 per month) for the quickly adjudicated
claims, and an average of six months of benefits, CBO estimates
that enacting section 301 would increase direct spending by $8
million in 2016. However, that new spending in 2016 would be
offset by an equal reduction in spending in 2017. In each
subsequent year, a similar effect would be seen--increased
spending in one year followed by decreased spending in the
following year. For this estimate, CBO adjusted the amount of
the accelerated spending each year to account for inflation and
population growth.
On that basis, CBO estimates that enacting section 301
would cost $8 million over the 2016-2020 period, and $9 million
over the 2016-2025 period.
Spending Subject to Appropriation
H.R. 675 contains several provisions that would affect
spending subject to appropriation including extending the
temporary expansion of the Court of Appeals for Veterans Claims
and increasing the salaries of CAVC judges, among others (see
Table 3). CBO estimates that implementing those provisions
would cost $5 million over the 2016-2020 period, subject to the
availability of appropriated amounts.
Extension of Temporary Expansion of CAVC. Section 201 would
extend, through January 1, 2020, the authority for the Court of
Appeals for Veterans Claims to appoint a new judge to the court
should a position become vacant. Previous legislation allowed
for the court to expand from seven judges to nine in order to
address the workload of the court. The authority to appoint a
new judge to maintain nine judges expired on January 1, 2013.
TABLE 3. ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 675
----------------------------------------------------------------------------------------------------------------
Fiscal year, in millions of dollars--
-------------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
Extension of Temporary Expansion of CAVC
Estimated Authorization Level....................... 0 0 * 1 1 3
Estimated Outlays................................... 0 0 * 1 1 3
Increased Salaries of CAVC Judges
Estimated Authorization Level....................... * * * * * 1
Estimated Outlays................................... * * * * * 1
Other Provisions
Estimated Authorization Level....................... * * * * * 1
Estimated Outlays................................... * * * * * 1
-------------------------------------------------------
Total Changes
Estimated Authorization Level................... * * * 2 2 5
Estimated Outlays............................... * * * 2 2 5
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals due to rounding.
*=between zero and $500,000; CAVC=Court of Appeals for Veterans Claims.
According to the CAVC, the cost of a judge and his or her
chamber is about $1 million per year. CBO expects that one
judge will leave or retire over the next several years; thus,
under section 201 one new judge would be appointed. Therefore,
CBO estimates that implementing section 201 would cost $3
million over the 2016-2020 period.
Increased Salaries of CAVC Judges. Section 205 would
increase the annual salaries for judges of the CAVC. Under
current law, CAVC judges are paid at the level of district
court judges, which was $199,100 in 2014. Section 205 would
increase the CAVC judges' salaries to the same rate as U.S.
Court of Appeals judges--$211,200 in 2014. Currently, there are
nine CAVC judges. After accounting for inflation, CBO estimates
that implementing section 205 would increase costs for salaries
by about $1 million over the 2016-2020 period.
Other Provisions. Several sections of H.R. 675 would have
very small effects on discretionary costs. In total, CBO
estimates that implementing the following provisions would cost
$1 million over the 2016-2020 period.
Section 202 would allow judges who are eligible to
be recalled to serve for more than the 90 days currently
authorized.
Section 302 would require VA to establish a
training process for newly hired claims processors. According
to VA, it has already begun the process of establishing new
training programs for claims processors. Most of the
requirements of section 104 would align with VA's new training
program.
Section 303 would require VA to post in public
spaces and on their website information about the average
processing times for all claims submitted, claims filed by
veterans service organizations or other persons on the behalf
of veterans, and claims filed by the veteran. Section 303 also
would require VA to provide a notice containing information on
processing times for submitted claims to all individuals who
submit claims for benefits with the department.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 675 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON MAY 21, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.................... -16 -30 7 4 5 5 2 5 8 5 -30 -4
--------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 675
contains no intergovernmental or private sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Dwayne M. Wright;
Impact on state, local, and tribal governments: Jon Sperl;
Impact on the private sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 675, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
675, as amended.
Constitutional Authority Statement
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 675, as amended,
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee estimates that H.R. 675, as amended, contains no
directed rule making.
Section-by-Section Analysis of the Legislation
Section 1--Short title; table of contents
Section 1(a) would establish that this Act may be cited as
the ``Veterans' Compensation Cost-of-Living Adjustment Act of
2015.''
Section 1(b) would contain the table of contents for this
Act.
TITLE I--COMPENSATION COST OF LIVING ADJUSTMENT
Section 101--Increase in rates of disability compensation and
dependency and indemnity compensation
Section 101(a) would authorize the Secretary of Veterans
Affairs to increase, effective December 1, 2015, the dollar
amounts in effect for the payment of disability compensation
and dependency and indemnity compensation.
Section 101(b) would specify the amounts that would be
increased regarding the Wartime Disability Compensation, under
section 1114 of title 38, U.S.C, the Additional Compensation
for Dependents, under section 1115(1) of title 38, U.S.C., the
Clothing Allowance, under section 1162 of title 38, U.S.C., the
Dependency and Indemnity Compensation to Surviving Spouses,
under section 1311 of title 38, U.S.C., and the Dependency and
Indemnity Compensation to Children, under sections 1313(a) and
1314 of title 38, U.S.C.
Section 101(c) would specify that each amount shall be
increased by the same percentage by which benefits are
increased under title II of the Social Security Act\2\ (and
would round down to the next lower dollar amount all
compensation and DIC benefits, when the amount is not a whole
dollar amount).
---------------------------------------------------------------------------
\2\42 U.S.C. Sec. Sec. 401 et seq.
---------------------------------------------------------------------------
Section 101(d) would provide a special rule authorizing the
Secretary of VA to adjust administratively, consistent with the
increases made under subsection (a), the rates of disability
compensation payable to persons within the purview of section
10 of Public Law 85-857, who are not in receipt of compensation
payable pursuant to chapter 11 of title 38, U.S.C.
Section 102--Publication of adjusted rates
Section 102 would require the Secretary of VA to publish in
the Federal Register the amounts specified in subsection
101(b), as increased pursuant to that section.
TITLE II--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS
Section 201--Extending temporary expansion of United States Court of
Appeals for veterans claims
Section 201 would amend section 7253(i)(2) of title 38,
U.S.C., to extend the temporary expansion of the CAVC from
seven to nine judges to January 1, 2020.
Section 202--Recall of retired judges of United States Court of Appeals
for veterans claims
Section 202 would amend section 7257(b) of title 38,
U.S.C., to permit a retired, recall-eligible judge of the CAVC
to be recalled upon request, unless the chief judge of the CAVC
certifies that there is insufficient work for the judge or
there are insufficient resources to provide appropriate
administrative support to the judge.
Section 203--Life insurance program relating to judges of United States
Court of Appeals for veterans claims
Section 203(a) would amend section 7281 of title 38,
U.S.C., to extend certain life insurance benefits to judges of
the CAVC.
Section 203(b) would establish the effective date of this
section as on or after the first day of the first applicable
pay period beginning on or after the date of the enactment of
this Act.
Section 204--Voluntary contributions to enlarge survivors' annuity
Section 204 would amend section 7297 of title 38, U.S.C.,
to provide for judges of the CAVC the option of purchasing
additional service credit to enlarge survivors' annuity.
Section 205--Salaries of judges of United States Court of Appeals for
veterans claims
Section 205 would amend section 7253(e) of title 38, United
States Code, to provide that the judges on the CAVC shall be
paid the same as federal appellate judges.
Section 206--Selection of chief judge of United States Court of Appeals
for veterans claims
Section 206 would amend section 7253(d) of title 38,
U.S.C., to provide that the chief judge should: (1) be in
regular, active service and senior in commission among the
judges of the court who have served at least one year as judges
of the CAVC; (2) be 64 years of age or under and have at least
three years remaining in term of office; and (3) have not
previously served as chief judge. In any case in which there is
no judge of the CAVC who meets all of these requirements, the
judge of the CAVC in regular active service who is senior in
commission and has not served previously as chief judge; and,
has either served for at least one year as a judge of the
court, or is 64 years of age and under and has at least three
years remaining in term of office, shall act as the chief
judge.
TITLE III--IMPROVEMENT OF CLAIMS PROCESSING
Section 301--Interim payments for compensation benefits under laws
administered by the Secretary of Veterans Affairs
Section 301(a) would add a new section to subchapter III of
chapter 51 of title 38, U.S.C., which would require the
Secretary of VA, in claims in which adjudication requires
decision making with respect to two or more medical conditions,
to immediately pay the claimant any monetary benefits awarded
to the claimant for positively adjudicated conditions while
other conditions are further developed.
Section 301(b) would provide a clerical amendment.
Section 302--Claims processors training
Section 302(a) would require the Secretary of VA to
establish a training program for up to two years for newly
hired claims processors and to identify successful claims
processors to assist in the training.
Section 302(b) would require VA to execute the training
program for newly hired claims processors without increasing
the amount of time in which claims are processed.
Section 302(c) would set the effective date of this section
one year after the enactment of the Act.
Section 303--Notice of average times for processing claims and
percentage of claims approved
Section 303(a) would provide for public notice of the
information that is required to be collected by this section to
be posted in each VA Regional Office and claims-intake facility
and on the VA website.
Section 303(b) would require the Secretary of VA to provide
notice to claimants of the information that is required to be
collected by this section, pursuant to subsection (c), as well
as notice that, for the period ending on August 6, 2015,
claimants are eligible to receive up to an extra year of
benefits payments if they are filing a FDC. This subsection
would also require claimants to include a signed form with
their application acknowledging that the claimant received such
notice.
Section 303(c) would require VA to collect information on
the average processing times of specific types of enumerated
claims, including electronic FDCs, paper FDCs, electronic
claims that are not fully developed, standard paper claims that
are not fully developed, and non-standard paper claims that are
not fully developed. Information on the percentage of each such
submitted claim for which benefits are awarded would also be
required. This subsection would also require VA to collect
information on the percentage of claims that are awarded
benefits based on the type of representation received by the
veteran in the claims process. Such information would be
required to be updated at least once each fiscal quarter.
TITLE IV--OTHER MATTERS
Section 401--Clarification of eligible recipients of certain accrued
benefits upon death of beneficiary
Section 401(a) would amend section 5121(a)(2) of title 38,
U.S.C., by requiring VA to pay any accrued benefits that are
due and unpaid, as of the date of death of the veteran, to the
veteran's estate unless the estate will escheat.
Section 401(b) would set the effective date of this section
at two years after the enactment of the Act.
Section 402--Observance of veterans day
Section 402(a) would provide for a codified two minute
moment of silence on Veterans Day in honor of the service and
sacrifice of veterans throughout history.
Section 402(b) would provide a clerical amendment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 51--CLAIMS, EFFECTIVE DATES, AND PAYMENTS
SUBCHAPTER I--CLAIMS
Sec.
5100. Definition of ``claimant''.
* * * * * * *
SUBCHAPTER III--PAYMENT OF BENEFITS
* * * * * * *
5127. Interim payments of compensation benefits.
* * * * * * *
SUBCHAPTER III--PAYMENT OF BENEFITS
* * * * * * *
Sec. 5121. Payment of certain accrued benefits upon death of a
beneficiary
(a) Except as provided in sections 3329 and 3330 of title 31,
periodic monetary benefits (other than insurance and
servicemen's indemnity) under laws administered by the
Secretary to which an individual was entitled at death under
existing ratings or decisions or those based on evidence in the
file at date of death (hereinafter in this section and section
5122 of this title referred to as ``accrued benefits'') and due
and unpaid, shall, upon the death of such individual be paid as
follows:
(1) Upon the death of a person receiving an
apportioned share of benefits payable to a veteran, all
or any part of such benefits to the veteran or to any
other dependent or dependents of the veteran, as may be
determined by the Secretary.
(2) Upon the death of a veteran, to the living
person, or estate, first listed below:
(A) The veteran's spouse.
(B) The veteran's children (in equal shares).
(C) The veteran's dependent parents (in equal
shares).
(D) The estate of the veteran (unless the
estate will escheat).
(3) Upon the death of a surviving spouse or remarried
surviving spouse, to the children of the deceased
veteran.
(4) Upon the death of a child, to the surviving
children of the veteran who are entitled to death
compensation, dependency and indemnity compensation, or
death pension.
(5) Upon the death of a child claiming benefits under
chapter 18 of this title, to the surviving parents.
(6) In all other cases, only so much of the accrued
benefits may be paid as may be necessary to reimburse
the person who bore the expense of last sickness and
burial.
(b) No part of any accrued benefits shall be used to
reimburse any political subdivision of the United States for
expenses incurred in the last sickness or burial of any
beneficiary.
(c) Applications for accrued benefits must be filed within
one year after the date of death. If a claimant's application
is incomplete at the time it is originally submitted, the
Secretary shall notify the claimant of the evidence necessary
to complete the application. If such evidence is not received
within one year from the date of such notification, no accrued
benefits may be paid.
* * * * * * *
Sec. 5127. Interim payments of compensation benefits
(a) In General.--In the case of a claim described in
subsection (b), prior to adjudicating the claim, the Secretary
shall make interim payments of monetary benefits to the
claimant based on any disability for which the Secretary has
made a decision or, with respect to such a disability that is
not compensable, notify the claimant of the rating relating to
such disability. Upon the adjudication of the claim, the
Secretary shall pay to the claimant any monetary benefits
awarded to the claimant for the period of payment under section
5111 of this title less the amount of such benefits paid to the
claimant under this section.
(b) Claim Described.--A claim described in this subsection is
a claim for disability compensation under chapter 11 of this
title (including a claim regarding an increased rating)--
(1) the adjudication of which requires the Secretary
to make decisions with respect to two or more
disabilities; and
(2) for which, before completing the adjudication of
the claim, the Secretary makes a decision with respect
to a disability that would result in the payment of
monetary benefits to the claimant upon the adjudication
of the claim.
* * * * * * *
PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
* * * * * * *
CHAPTER 72--UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS
Subchapter I--ORGANIZATION AND JURISDICTION
* * * * * * *
Sec. 7253. Composition
(a) Composition.--The Court of Appeals for Veterans Claims is
composed of at least three and not more than seven judges, one
of whom shall serve as chief judge in accordance with
subsection (d).
(b) Appointment.--The judges of the Court shall be appointed
by the President, by and with the advice and consent of the
Senate, solely on the grounds of fitness to perform the duties
of the office. A person may not be appointed to the Court who
is not a member in good standing of the bar of a Federal court
or of the highest court of a State. Not more than the number
equal to the next whole number greater than one-half of the
number of judges of the Court may be members of the same
political party.
(c) Term of Office.--The term of office of the judges of the
Court of Appeals for Veterans Claims shall be 15 years. A judge
who is nominated by the President for appointment to an
additional term on the Court without a break in service and
whose term of office expires while that nomination is pending
before the Senate may continue in office for up to 1 year while
that nomination is pending.
(d) Chief Judge.--(1) The chief judge of the Court is the
head of the Court. The chief judge of the Court shall be the
judge of the Court in regular active service who is senior in
commission among the judges of the Court who--
(A) have served for one or more years as judges of
the Court; [and]
(B) are 64 years of age or under and have at least
three years remaining in term of office; and
[(B)] (C) have not previously served as chief judge.
[(2) In any case in which there is no judge of the Court in
regular active service who has served as a judge of the Court
for at least one year, the judge of the court in regular active
service who is senior in commission and has not served
previously as chief judge shall act as the chief judge.]
(2)(A) In any case in which there is no judge of the Court in
regular active service who meets the requirements under
paragraph (1), the judge of the Court in regular active service
who is senior in commission and meets subparagraph (A) or (B)
and subparagraph (C) of paragraph (1) shall act as the chief
judge.
(B) In any case under subparagraph (A) of this paragraph in
which there is no judge of the Court in regular active service
who meets subparagraph (A) or (B) and subparagraph (C) of
paragraph (1), the judge of the Court in regular active service
who is senior in commission and meets subparagraph (C) shall
act as the chief judge.
(3) Except as provided in paragraph (4), a judge of the Court
shall serve as the chief judge under paragraph (1) for a term
of five years or until the judge becomes age 70, whichever
occurs first. If no other judge is eligible under paragraph (1)
to serve as chief judge upon the expiration of that term, that
judge shall continue to serve as chief judge until another
judge becomes eligible under that paragraph to serve as chief
judge.
(4)(A) The term of a chief judge shall be terminated before
the end of the term prescribed by paragraph (3) if--
(i) the chief judge leaves regular active service as
a judge of the Court;
(ii) the chief judge notifies the other judges of the
Court in writing that such judge desires to be relieved
of the duties of chief judge.
(B) The effective date of a termination of the term under
subparagraph (A) shall be the date on which the chief judge
leaves regular active service or the date of the notification
under subparagraph (A)(ii), as the case may be.
(5) If a chief judge is temporarily unable to perform the
duties of chief judge, those duties shall be performed by the
judge of the Court in active service who is present, able and
qualified to act, and is next in precedence.
(6) Judges who have the same seniority in commission shall be
eligible for service as chief judge in accordance with their
relative precedence.
(e) Salary.--Each judge of the Court shall receive a salary
at the same rate as is received by judges of the United States
[district courts] courts of appeals.
(f) Removal.--(1) A judge of the Court may be removed from
office by the President on grounds of misconduct, neglect of
duty, engaging in the practice of law, or violating section
7255(c) of this title. A judge of the Court may not be removed
from office by the President on any other ground.
(2) Before a judge may be removed from office under this
subsection, the judge shall be provided with a full
specification of the reasons for the removal and an opportunity
to be heard.
(g) Rules.--(1) The Court shall prescribe rules, consistent
with the provisions of chapter 16 of title 28, establishing
procedures for the filing of complaints with respect to the
conduct of any judge of the Court and for the investigation and
resolution of such complaints. In investigating and taking
action with respect to any such complaint, the Court shall have
the powers granted to a judicial council under such chapter.
(2) The provisions of sections 354(b) through 360 of title
28, regarding referral or certification to, and petition for
review in, the Judicial Conference of the United States and
action thereon, shall apply to the exercise by the Court of the
powers of a judicial council under paragraph (1) of this
subsection. The grounds for removal from office specified in
subsection (f)(1) shall provide a basis for a determination
pursuant to section 354(b) or 355 of title 28, and
certification and transmittal by the Conference shall be made
to the President for consideration under subsection (f).
(3)(A) In conducting hearings pursuant to paragraph (1), the
Court may exercise the authority provided under section 1821 of
title 28 to pay the fees and allowances described in that
section.
(B) The Court shall have the power provided under section 361
of title 28 to award reimbursement for the reasonable expenses
described in that section. Reimbursements under this
subparagraph shall be made from funds appropriated to the
Court.
(h) Temporary Expansion of Court.--(1) During the period from
January 1, 2002, through August 15, 2005, the authorized number
of judges of the Court specified in subsection (a) is increased
by two.
(2)(A) Of the two additional judges authorized by this
subsection--
(i) only one may be appointed pursuant to a
nomination made in 2002; and
(ii) only one may be appointed pursuant to a
nomination made in 2003.
(B) If a judge is not appointed under this subsection
pursuant to a nomination made in 2002, a judge may be appointed
under this subsection pursuant to a nomination made in 2004. If
a judge is not appointed under this subsection pursuant to a
nomination made in 2003, a judge may be appointed under this
subsection pursuant to a nomination made in 2004. In either
case, such an appointment may be made only pursuant to a
nomination made before October 1, 2004.
(3) The term of office and the eligibility for retirement of
a judge appointed under this subsection, other than a judge
described in paragraph (4), are governed by the provisions of
section 1012 of the Court of Appeals for Veterans Claims
Amendments of 1999 (title X of Public Law 106-117; 113 Stat.
1590; 38 U.S.C. 7296 note) if the judge is one of the first two
judges appointed to the Court after November 30, 1999.
(4) A judge of the Court as of December 27, 2001, who was
appointed to the Court before January 1, 1991, may accept
appointment as a judge of the Court under this subsection
notwithstanding that the term of office of the judge on the
Court has not yet expired under this section. The term of
office of an incumbent judge who receives an appointment as
described in the preceding sentence shall be 15 years, which
includes any period remaining in the unexpired term of the
judge. Any service following an appointment under this
subsection shall be treated as though served as part of the
original term of office of that judge on the Court.
(5) Notwithstanding paragraph (1), an appointment may not be
made to the Court if the appointment would result in there
being more than seven judges on the Court who were appointed
after January 1, 1997. For the purposes of this paragraph, a
judge serving in recall status under section 7257 of this title
shall be disregarded in counting the number of judges appointed
to the Court after such date.
(i) Additional Temporary Expansion of Court.--(1) Subject to
paragraph (2), effective as of December 31, 2009, the
authorized number of judges of the Court specified in
subsection (a) is increased by two.
(2) Effective as of [January 1, 2013] January 1, 2020, an
appointment may not be made to the Court if the appointment
would result in there being more judges of the Court than the
authorized number of judges of the Court specified in
subsection (a).
* * * * * * *
Sec. 7257. Recall of retired judges
(a)(1) A retired judge of the Court may be recalled for
further service on the Court in accordance with this section.
To be eligible to be recalled for such service, a retired judge
must at the time of the judge's retirement provide to the chief
judge of the Court (or, in the case of the chief judge, to the
clerk of the Court) notice in writing that the retired judge is
available for further service on the Court in accordance with
this section and is willing to be recalled under this section.
Such a notice provided by a retired judge to whom section
7296(c)(1)(B) of this title applies is irrevocable.
(2) For the purposes of this section--
(A) a retired judge is a judge of the Court of
Appeals for Veterans Claims who retires from the Court
under section 7296 of this title or under chapter 83 or
84 of title 5; and
(B) a recall-eligible retired judge is a retired
judge who has provided a notice under paragraph (1).
(b)[(1) The chief judge may recall for further service on the
Court a recall-eligible retired judge in accordance with this
section. Such a recall shall be made upon written certification
by the chief judge that substantial service is expected to be
performed by the retired judge for such period, not to exceed
90 days (or the equivalent), as determined by the chief judge
to be necessary to meet the needs of the Court.] (1)(A) The
chief judge may recall for further service on the Court a
recall-eligible retired judge in accordance with this section.
Such a recall shall be made upon written certification by the
chief judge that substantial service is expected to be
performed by the retired judge for such period, not to exceed
90 days (or the equivalent), as determined by the chief judge
to be necessary to meet the needs of the Court.
(B)(i) A recall-eligible judge may request that the chief
judge recall the recall-eligible judge for a period of service
of not less than 90 days (or the equivalent).
(ii) The chief judge shall approve a request made by a
recall-eligible judge pursuant to clause (i) unless the chief
judge certifies, in writing, that the Court does not have--
(I) sufficient work to assign such recall-eligible
judge during the period of recalled service; or
(II) sufficient resources to provide to such recall-
eligible judge appropriate administrative and office
support.
(iii) At any time during the period of recalled service of a
judge who is recalled pursuant to clause (i), the chief judge
may terminate such recalled service if the chief judge makes a
written certification described in clause (ii).
(2) A recall-eligible retired judge may not be recalled for
more than 90 days (or the equivalent) during any calendar year
without the judge's consent.
(3) If a recall-eligible retired judge is recalled by the
chief judge in accordance with this section and (other than in
the case of a judge who has previously during that calendar
year served at least 90 days (or the equivalent) of recalled
service on the court) declines (other than by reason of
disability) to perform the service to which recalled, the chief
judge shall remove that retired judge from the status of a
recall-eligible judge. This paragraph shall not apply to a
judge to whom section 7296(c)(1)(A) or 7296(c)(1)(B) of this
title applies and who has, in the aggregate, served at least
five years of recalled service on the Court under this section.
(4) A recall-eligible retired judge who becomes permanently
disabled and as a result of that disability is unable to
perform further service on the Court shall be removed from the
status of a recall-eligible judge. Determination of such a
disability shall be made pursuant to section 7253(g) or 7296(g)
of this title.
(c) A retired judge who is recalled under this section may
exercise all of the judicial powers and duties of the office of
a judge in active service.
(d)(1) The pay of a recall-eligible retired judge to whom
section 7296(c)(1)(B) of this title applies is the pay
specified in that section.
(2) A judge who is recalled under this section who retired
under chapter 83 or 84 of title 5 or to whom section
7296(c)(1)(A) of this title applies shall be paid, during the
period for which the judge serves in recall status, pay at the
rate of pay in effect under section 7253(e) of this title for a
judge performing active service, less the amount of the judge's
annuity under the applicable provisions of chapter 83 or 84 of
title 5 or the judge's annuity under section 7296(c)(1)(A) of
this title, whichever is applicable.
(e)(1) Except as provided in subsection (d), a judge who is
recalled under this section who retired under chapter 83 or 84
of title 5 shall be considered to be a reemployed annuitant
under that chapter.
(2) Nothing in this section affects the right of a judge who
retired under chapter 83 or 84 of title 5 to serve as a
reemployed annuitant in accordance with the provisions of title
5.
* * * * * * *
SUBCHAPTER III--MISCELLANEOUS PROVISIONS
Sec. 7281. Employees
(a) The Court of Appeals for Veterans Claims may appoint a
clerk without regard to the provisions of title 5 governing
appointments in the competitive service. The clerk shall serve
at the pleasure of the Court.
(b) The judges of the Court may appoint law clerks and
secretaries, in such numbers as the Court may approve, without
regard to the provisions of title 5 governing appointments in
the competitive service. Any such law clerk or secretary shall
serve at the pleasure of the appointing judge.
(c) The clerk, with the approval of the Court, may appoint
necessary deputies and employees without regard to the
provisions of title 5 governing appointments in the competitive
service.
(d) The Court may fix and adjust the rates of basic pay for
the clerk and other employees of the Court without regard to
the provisions of chapter 51, subchapter III of chapter 53, or
section 5373 of title 5. To the maximum extent feasible, the
Court shall compensate employees at rates consistent with those
for employees holding comparable positions in the judicial
branch.
(e) In making appointments under subsections (a) through (c)
of this section, preference shall be given, among equally
qualified persons, to persons who are preference eligibles (as
defined in section 2108(3) of title 5).
(f) The Court may procure the services of experts and
consultants under section 3109 of title 5.
(g) The chief judge of the Court may exercise the authority
of the Court under this section whenever there are not at least
two other judges of the Court.
(h) The Court shall not be considered to be an agency within
the meaning of section 3132(a)(1) of title 5.
(i) The Court may accept and utilize voluntary services and
uncompensated (gratuitous) services, including services as
authorized by section 3102(b) of title 5 and may accept, hold,
administer, and utilize gifts and bequests of personal property
for the purposes of aiding or facilitating the work of the
Court. Gifts or bequests of money to the Court shall be covered
into the Treasury.
(j) For purposes of chapter 87 of title 5, a judge who is in
regular active service and a judge who is retired under section
7296 of this title or under chapter 83 or 84 of title 5 shall
be treated as an employee described in section 8701(a)(5) of
title 5.
* * * * * * *
SUBCHAPTER V--RETIREMENT AND SURVIVORS ANNUITIES
* * * * * * *
Sec. 7297. Survivor annuities
(a) For purposes of this section:
(1) The term ``Court'' means the United States Court
of Appeals for Veterans Claims.
(2) The term ``judge'' means a judge of the Court who
is in active service or who has retired under section
7296 of this title.
(3) The term ``pay'' means salary received under
section 7253(e) of this title and retired pay received
under section 7296 of this title.
(4) The term ``retirement fund'' means the Court of
Appeals for Veterans Claims Retirement Fund established
under section 7298 of this title.
(5) The term ``surviving spouse'' means a surviving
spouse of an individual who (A) was married to such
individual for at least one year immediately preceding
the individual's death, or (B) is a parent of issue by
the marriage.
(6) The term ``dependent child'' has the meaning
given the term ``child'' in section 376(a)(5) of title
28.
(7) The term ``Member of Congress'' means a
Representative, a Senator, a Delegate to Congress, or
the Resident Commissioner of Puerto Rico.
(8) The term ``assassination'' as applied to a judge
shall have the meaning provided that term in section
376(a)(7) of title 28 as applied to a judicial
official.
(b) A judge may become a participant in the annuity program
under this section by filing a written election under this
subsection while in office or within six months after the date
on which the judge marries if the judge has retired under
section 7296 of this title. Any such election shall be made in
such manner as may be prescribed by the Court.
(c) There shall be deducted and withheld each pay period from
the pay of a judge who has made an election under subsection
(b) of this section a sum equal to that percentage of the
judge's pay that is the same as provided for the deduction from
the salary or retirement salary of a judge of the United States
Court of Federal Claims for the purpose of a survivor annuity
under section 376(b)(1)(B) of title 28. Amounts so deducted and
withheld shall be deposited in the retirement fund. A judge who
makes an election under subsection (b) of this section shall be
considered by that election to agree to the deductions from the
judge's pay required by this subsection.
(d)(1) A judge who makes an election under subsection (b) of
this section shall deposit, with interest at 3 percent per year
compounded on December 31 of each year, to the credit of the
retirement fund, an amount equal to 3.5 percent of the judge's
pay and of the judge's basic salary, pay, or compensation for
service as a Member of Congress, and for any other civilian
service within the purview of section 8332 of title 5. Each
such judge may elect to make such deposits in installments
during the judge's period of service in such amount and under
such conditions as may be determined in each instance by the
chief judge. Notwithstanding the failure of a judge to make
such deposit, credit shall be allowed for the service rendered,
but the annual annuity of the surviving spouse of such judge
shall be reduced by an amount equal to 10 percent of the amount
of such deposit, computed as of the date of the death of such
judge, unless the surviving spouse elects to eliminate such
service entirely from credit under subsection (k) of this
section. However, a deposit shall not be required from a judge
for any year with respect to which deductions from the judge's
pay, or a deposit, were actually made (and not withdrawn) under
the civil service retirement laws.
(2) The interest required under the first sentence of
paragraph (1) shall not be required for any period--
(A) during which a judge was separated from any
service described in section 376(d)(2) of title 28; and
(B) during which the judge was not receiving retired
pay based on service as a judge or receiving any
retirement salary as described in section 376(d)(1) of
title 28.
(e) If the service of a judge who makes an election under
subsection (b) of this section terminates other than pursuant
to the provisions of section 7296 of this title, or if any
judge ceases to be married after making the election under
subsection (b) of this section and revokes (in a writing filed
as provided in subsection (b) of this section) such election,
the amount credited to the judge's individual account (together
with interest at 3 percent per year compounded on December 31
of each year to the date of the judge's relinquishment of
office) shall be returned to the judge. For the purpose of this
section, the service of a judge making an election under
subsection (b) of this section shall be considered to have
terminated pursuant to section 7296 of this title if--
(1) the judge is not reappointed following expiration
of the term for which appointed; and
(2) at or before the time of the expiration of that
term, the judge is eligible for and elects to receive
retired pay under section 7296 of this title.
(f)(1) If a judge who makes an election under subsection (b)
of this section dies after having rendered at least 18 months
of civilian service (computed as prescribed in subsection (l)
of this section), for the last 18 months of which the salary
deductions provided for by subsection (c) of this section or
the deposits required by subsection (d) of this section have
actually been made (and not withdrawn) or the salary deductions
required by the civil service retirement laws have actually
been made (and not withdrawn)--
(A) if the judge is survived by a surviving spouse
but not by a dependent child, there shall be paid to
the surviving spouse an annuity beginning with the day
of the death of the judge, in an amount computed as
provided in subsection (k) of this section; or
(B) if the judge is survived by a surviving spouse
and a dependent child or children, there shall be paid
to the surviving spouse an immediate annuity in an
amount computed as provided in subsection (k) of this
section and there shall also be paid to or on behalf of
each such child an immediate annuity equal to the
lesser of--
(i) 10 percent of the average annual pay of
such judge (determined in accordance with
subsection (k) of this section), or
(ii) 20 percent of such average annual pay,
divided by the number of such children; or
(C) if the judge is not survived by a surviving
spouse but is survived by a dependent child or
children, there shall be paid to or on behalf of each
such child an immediate annuity equal to the lesser
of--
(i) 20 percent of the average annual pay of
such judge (determined in accordance with
subsection (k) of this section), or
(ii) 40 percent of such average annual pay,
divided by the number of such children.
(2) The annuity payable to a surviving spouse under this
subsection shall be terminated--
(A) upon the surviving spouse's death; or
(B) upon the remarriage of the surviving spouse
before age 55.
(3) The annuity payable to a child under this subsection
shall be terminated upon the child's death.
(4) In case of the death of a surviving spouse of a judge
leaving a dependent child or children of the judge surviving
the spouse, the annuity of such child or children under
paragraph (1)(B) of this subsection shall be recomputed and
paid as provided in paragraph (1)(C) of this subsection. In any
case in which the annuity of a dependent child is terminated,
the annuities of any remaining dependent child or children,
based upon the service of the same judge, shall be recomputed
and paid as though the child whose annuity was so terminated
had not survived the judge.
(5) If a judge dies as a result of an assassination and
leaves a survivor or survivors who are otherwise entitled to
receive annuity payments under this section, the 18-month
requirement in the matter in paragraph (1) preceding
subparagraph (A) shall not apply.
(g) Questions of family relationships, dependency, and
disability arising under this section shall be determined in
the same manner as such questions arising under chapter 84 of
title 5 are determined.
(h)(1) If--
(A) a judge making an election under subsection (b)
of this section dies while in office (i) before having
rendered 5 years of civilian service computed as
prescribed in subsection (l) of this section, or (ii)
after having rendered 5 years of such civilian service
but without a survivor entitled to annuity benefits
provided by subsection (f) of this section; or
(B) the right of all persons entitled to an annuity
under subsection (f) of this section based on the
service of such judge terminates before a claim for
such benefits has been established,
the total amount credited to the individual account of such
judge (with interest at 3 percent per year, compounded on
December 31 of each year, to the date of the death of such
judge) shall be paid in the manner specified in paragraph (2)
of this subsection.
(2) An amount payable under paragraph (1) of this subsection
shall be paid, upon the establishment of a valid claim
therefor, to the person or persons surviving at the date title
to the payment arises, in the following order of precedence:
(A) To the beneficiary or beneficiaries whom the
judge designated in writing filed before death with the
chief judge (except that in the case of the chief judge
such designation shall be filed before death as
prescribed by the Court).
(B) To the surviving spouse of the judge.
(C) To the child or children of the judge (and the
descendants of any deceased children by
representation).
(D) To the parents of the judge or the survivor of
them.
(E) To the executor or administrator of the estate of
the judge.
(F) To such other next of kin of the judge as may be
determined by the chief judge to be entitled under the
laws of the domicile of the judge at the time of the
judge's death.
(3) Determination as to the surviving spouse, child, or
parent of a judge for the purposes of paragraph (2) of this
subsection shall be made without regard to the definitions in
subsection (a) of this section.
(4) Payment under this subsection in the manner provided in
this subsection shall be a bar to recovery by any other person.
(5) In a case in which the annuities of all persons entitled
to annuity based upon the service of a judge terminate before
the aggregate amount of annuity paid equals the total amount
credited to the individual account of such judge (with interest
at 3 percent per year, compounded on December 31 of each year
to the date of the death of the judge), the difference shall be
paid, upon establishment of a valid claim therefor, in the
order of precedence prescribed in paragraph (2) of this
subsection.
(6) Any accrued annuity remaining unpaid upon the termination
(other than by death) of the annuity of any individual based
upon the service of a judge shall be paid to that individual.
Any accrued annuity remaining unpaid upon the death of an
individual receiving an annuity based upon the service of a
judge shall be paid, upon the establishment of a valid claim
therefor, in the following order of precedence:
(A) To the executor or administrator of the estate of
that person.
(B) After 30 days after the date of the death of such
individual, to such individual or individuals as may
appear in the judgment of the chief judge to be legally
entitled thereto.
Such payment shall be a bar to recovery by any other
individual.
(i) When a payment under this section is to be made to a
minor, or to a person mentally incompetent or under other legal
disability adjudged by a court of competent jurisdiction, the
payment may be made to the person who is constituted guardian
or other fiduciary by the law of the State of residence of such
claimant or is otherwise legally vested with the care of the
claimant or the claimant's estate. If no guardian or other
fiduciary of the person under legal disability has been
appointed under the laws of the State of residence of the
claimant, the chief judge shall determine the person who is
otherwise legally vested with the care of the claimant or the
claimant's estate.
(j) Annuities under this section shall accrue monthly and
shall be due and payable in monthly installments on the first
business day of the month following the month or other period
for which the annuity has accrued. An annuity under this
section is not assignable, either in law or in equity, or
subject to execution, levy, attachment, garnishment, or other
legal process.
(k)(1) The annuity of the surviving spouse of a judge making
an election under subsection (b) of this section shall be an
amount equal to the sum of the following:
(A) The product of--
(i) 1.5 percent of the judge's average annual
pay; and
(ii) the sum of the judge's years of judicial
service, the judge's years of prior allowable
service as a Member of Congress, the judge's
years of prior allowable service performed as a
member of the Armed Forces, and the judge's
years, not exceeding 15, of prior allowable
service performed as a congressional employee
(as defined in section 2107 of title 5).
(B) Three-fourths of 1 percent of the judge's average
annual pay multiplied by the judge's years of allowable
service not counted under subparagraph (A) of this
paragraph.
(2) An annuity computed under this subsection may not exceed
50 percent of the judge's average annual pay and may not be
less than 25 percent of such average annual pay. Such annuity
shall be further reduced in accordance with subsection (d) of
this section (if applicable).
(3) For purposes of this subsection, the term ``average
annual pay'', with respect to a judge, means the average annual
pay received by the judge for judicial service (including
periods in which the judge received retired pay under section
7296(d) of this title) or for any other prior allowable service
during the period of three consecutive years in which the judge
received the largest such average annual pay.
(l) Subject to subsection (d) of this section, the years of
service of a judge which are allowable as the basis for
calculating the amount of the annuity of the judge's surviving
spouse shall include the judge's years of service as a judge of
the Court, the judge's years of service as a Member of
Congress, the judge's years of active service as a member of
the Armed Forces not exceeding 5 years in the aggregate and not
including any such service for which credit is allowed for the
purposes of retirement or retired pay under any other provision
of law, and the judge's years of any other civilian service
within the purview of section 8332 of title 5.
(m) Nothing contained in this section shall be construed to
prevent a surviving spouse eligible therefor from
simultaneously receiving an annuity under this section and any
annuity to which such spouse would otherwise be entitled under
any other law without regard to this section, but in computing
such other annuity service used in the computation of such
spouse's annuity under this section shall not be credited.
(n) A judge making an election under subsection (b) of this
section shall, at the time of such election, waive all benefits
under the civil service retirement laws except section 8440d of
title 5. Such a waiver shall be made in the same manner and
shall have the same force and effect as an election filed under
section 7296(d) of this title.
(o) Each survivor annuity payable from the retirement fund
shall be increased at the same time as, and by the same
percentage by which, annuities payable from the Judicial
Survivors' Annuities Fund are increased pursuant to section
376(m) of title 28.
(p)(1) A covered judge who makes an election under subsection
(b) may purchase, in three-month increments, up to an
additional year of service credit for each year of Federal
judicial service completed, under the terms set forth in this
section.
(2) In this subsection, the term ``covered judge'' means any
of the following:
(A) A judge in regular active service.
(B) A retired judge who is a recall-eligible retired
judge pursuant to subsection (a) of section 7257 of
this title.
(C) A retired judge who would be a recall-eligible
retired judge pursuant to subsection (a) of section
7257 but for--
(i) meeting the aggregate recall service
requirements under subsection (b)(3) of such
section; or
(ii) being permanently disabled as described
by subsection (b)(4) of such section.
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TITLE 36, UNITED STATES CODE
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SUBTITLE I--PATRIOTIC AND NATIONAL OBSERVANCES AND CEREMONIES
* * * * * * *
PART A--OBSERVANCES AND CEREMONIES
* * * * * * *
CHAPTER 1--PATRIOTIC AND NATIONAL OBSERVANCES
Sec.
101. American Heart Month.
* * * * * * *
145. Veterans Day.
* * * * * * *
Sec. 145. Veterans Day
The President shall issue each year a proclamation calling on
the people of the United States to observe two minutes of
silence on Veterans Day in honor of the service and sacrifice
of veterans throughout the history of the Nation, beginning
at--
(1) 3:11 p.m. Atlantic standard time;
(2) 2:11 p.m. eastern standard time;
(3) 1:11 p.m. central standard time;
(4) 12:11 p.m. mountain standard time;
(5) 11:11 a.m. Pacific standard time;
(6) 10:11 a.m. Alaska standard time; and
(7) 9:11 a.m. Hawaii-Aleutian standard time.
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