August 3, 2007

Veteran’s Committee passes a $1 billion cut in wartime elderly, poor, disabled veterans’ benefits

Ranking Member Buyer message to veterans:

For more information, contact: Jeff Phillips, (202) 225-3527

Washington, D.C. — Steve Buyer (R-Ind.), ranking member of the House Committee on Veterans’ Affairs, issued the following message today to veterans regarding legislation that would eliminate special monthly pensions for severely disabled veterans over 65 who are also receiving pensions for wartime service.

“The House Committee on Veterans’ Affairs, on a party-line vote, passed legislation that would cut nearly a billion dollars in pension benefits for wartime, elderly, indigent, severely disabled or house-bound American veterans to fund unprecedented benefits for World War II Filipino veterans.

In the House of Representatives, H.R. 760, the Filipino Veterans Equity Act of 2007, as amended, would eliminate special monthly pensions for severely disabled veterans over 65 who are also receiving pensions for wartime service.  It would use nearly all of the $965 million saved by this unprecedented cut in veterans’ benefits to provide budgetary offsets to fund oversized pensions for non-citizen, non-resident World War II Filipino veterans.  Similar legislation is being considered in the Senate.

In 2006, the U.S. Court of Appeals for Veterans Claims overturned a Department of Veterans Affairs decision that denied an 86-year-old, legally blind World War II veteran, Robert A. Hartness, a VA benefit called a “special monthly pension” (SMP).  The SMP provides an additional payment of up to $2,200 per year to the most severely disabled veterans. 

The Court of Appeals for Veterans Claims reversed VA’s denial of benefits to Mr. Hartness and required VA to begin paying SMP.  The court held that U.S. law requires an award of SMP to a veteran eligible for VA non-service-connected disability pension if, in addition to being at least 65 years old, he or she has a minimum disability rating of 60 percent or more, or is considered permanently housebound.  VA had determined Mr. Hartness to be 70 percent disabled due to loss of vision.

H.R. 760 was introduced by House Committee on Veterans’ Affairs Chairman Bob Filner in January.  In July he amended the bill, adding a section which restricts SMP eligibility.  The amended H.R. 760 grants pensions for Filipino WWII veterans living overseas: $8,400 per year for a married veteran, $6,000 per year for a single veteran, and $3,600 per year for surviving spouses.  Budgetary offsets are necessary for such spending.  In restricting SMP eligibility, Chairman Filner “found” a $965 million offset. 

The median annual Filipino family income is about $2,500.  Adding insult to injury for those elderly, poor, disabled U.S. veterans whose benefits would be cut, the average married Filipino WWII veteran would thus receive the U.S. income equivalent of over $100,000, due to the income disparity between the two countries.

In July, committee Republicans offered an amendment to preserve SMP eligibility.  Committee Democrats refused the amendment, voting to cut these veterans’ benefits by nearly $1 billion.  According to VA, more than 20,000 veterans could be affected by this unprecedented cut in benefits. 

The valor and courage of the Philippine Army, which fought alongside U.S. forces to defeat Imperial Japan in World War II, has been demonstrated beyond a shadow of a doubt.  Despite claims, no U.S. official during or immediately after the war was authorized to promise benefits to members of this army or to so obligate the U.S. government.  When the Philippines became an independent, sovereign nation after the war, the Philippine Army became the responsibility of the new government. 

It is unbelievable that the Democratic proposal would take benefits from elderly, indigent, severely disabled or house-bound American veterans – many from WWII – to finance a new entitlement program for Filipino veterans.”

We could vote on these bills in September.  Please let your representatives in Congress know what you think of this plan to cut by nearly $1 billion the benefits of veterans who most need our support.

For more news from House Committee on Veterans’ Affairs Republicans, please go to:

http://www.republicans.veterans.house.gov/

###

 

Background information on HR 760, as amended:

H.R. 760, the Filipino Veterans Equity Act of 2007, would eliminate special monthly pensions for veterans 65 and older who are 60 percent or more disabled and receiving pensions for wartime service. In other words, it cuts the benefits of elderly, poor, disabled wartime veterans to pay for the benefits of other veterans.  Understand that some 20,000 veterans could be affected by this nearly $1 billion cut in benefits, according to VA.  Here is some information that may be of help in clarifying Mr. Buyer's concerns with the legislation: 

H.R. 760 was introduced by Congressman Bob Filner on January 31, 2007.  H.R. 760, as amended, would deem that certain service in the organized military forces of the Philippines and the Philippine Scouts to be active service for the purposes of any U.S. law conferring veterans’ benefits.  It further prescribes pension amounts for Filipino veterans living overseas in the amounts of $8,400 per year if the veteran is married, $6,000 per year if the veteran is single, and $3,600 per year for surviving spouses.

Currently, under §107 of title 38, United States Code, "Service before July 1, 1946, in the organized military forces of the Government of the Philippines, while such forces were in the service of the Armed Forces of the United States pursuant to the military order of the President dated July 26, 1941, including among such military forces organized guerrilla forces under the commanders appointed, designated, or subsequently recognized by the Commander in Chief, Southwest Pacific Area, or other competent authority in the Army of the United States" is not deemed to have been active military service except for certain limited benefits.  H.R. 760 would change title 38, United States Code to make these individuals eligible for full veteran benefits.

During testimony received on February 18, 2007 during a full Committee hearing on Filipino Veterans, Deputy Under Secretary for Benefits Ron Aument provided the Committee with an overview of the history of the Filipino military and the Philippine Scouts, as well as the current benefits for which certain Filipino veterans area currently eligible.  Mr. Aument’s testimony can be found at http://www.house.gov/va/hearings/schedule110/feb07/02-15-07/witness.html.

During the full Committee markup on Tuesday, July 17, 2007, Chairman Filner offered an amendment in the nature of a substitute for H.R. 760, which used as a PAYGO offset savings gained from legislatively overturning a U. S. Court of Appeals for Veterans Claims (the Court) decision, Hartness v. Nicholson (2006).  According to CBO’s preliminary estimate, overturning the Court’s decision would generate approximately $965 million in savings over ten years.  This cut to the veterans pension entitlement would be unprecedented.

In the Hartness case, the Department of Veterans Affairs (VA) found Mr. Hartness, an 86 year-old legally blind WWII veteran, to be entitled to non-service-connected disability pension benefits for low income wartime veterans under the provisions of 38 U.S.C. § 1513(a) based on being over age 65.  Mr. Hartness subsequently submitted a claim for special monthly pension (SMP), which is an additional pension payment of up to $2,200 a year.   VA determined him to be 70 percent disabled due to loss of vision, but denied him entitlement to SMP.   The Court held that the plain language of section 1513(a) requires an award of SMP to a veteran eligible for pension if, in addition to being at least 65 years old, he or she possesses a minimum disability rating of 60 percent or more, or is considered permanently housebound.  The Justice Department did not appeal and the decision is final.

Ranking Member Buyer offered an amendment to strike the PAYGO offset provision of the amendment in the nature of a substitute.  This amendment was defeated in a nearly straight party-line vote on the yeas and nays (11-16).  The Chair refused to allow further amendments, and the Amendment in the Nature of a Substitute was approved by the yeas and nays (15-12), on a straight party line vote.  H.R. 760, as amended, was approved by voice vote, and ordered reported to the full House for consideration.

H.R. 760 legislative history:

January 31, 2007:  Introduced in the House, and referred to the Committee on Veterans’ Affairs.

February 18, 2007:  Legislative Hearing held at full Committee.

July 17, 2007:  Full Committee markup session held.  Bill amended in the nature of a substitute by the yeas and nays (15-12).  The amendment in the nature of a substitute was approved by voice vote, and ordered reported favorably to the full House for consideration. 

-- End of Background Information --