VA Disability Compensation Update 05: Approximately 3 million veterans...about 2 million of whom are under age 65...receive compensation from the Department of Veterans Affairs (VA) for their serviceconnected disabilities. The amount is based on a rating of an impairment’s effect on a veteran’s earnings capacity, on average; disability ratings range from zero to 100%. Additional allowances are paid to veterans whose disabilities are rated 30% or higher and who have dependent spouses, children, or parents. Veterans with disabilities may also qualify for cash payments from other sources, including workers’ compensation; private disability insurance; means-tested program benefits, such as Supplemental Security Income; and, for veterans under 65, the Social Security Disability Insurance (DI) program. About 146,000 veterans who receive disability compensation from VA also receive DI payments. When Social Security beneficiaries are eligible for disability benefits from more than one source, ceilings usually limit combined disability benefits from public sources to 80% of a recipient’s average pre-disability earnings. Those DI payments...after any reduction...are adjusted periodically to reflect changes in the cost of living and in national average wages. Veterans’ compensation payments for disabilities are not considered for that purpose, however, and thus do not apply toward limits. That same exclusion applies to means-tested benefits and to some benefits that are based on public employment.
The Congressional Budget Office (CBO) has provided to Congress an option to reduce government spending that would limit disability compensation for veterans who receive VA disability benefits and DI payments. The option would reduce VA’s disability compensation by the amount of the DI benefit. Applying that change to current and future recipients of veterans’ compensation would affect an estimated 153,000 recipients in 2010, saving almost $1.8 billion that year and approximately $9.6 billion between 2010 and 2014. Applying the change only to veterans who are newly awarded compensation payments or DI payments would affect an estimated 3,000 recipients in 2010, saving about $40 million in outlays that year and about $1.1 billion through 2014. A rationale in favor of this option is that it would eliminate duplicate public compensation for a single disability. An argument against it is that the change would subject veterans’ disability benefits to a form of means-testing (VA benefits are considered entitlements). Moreover, to the extent that this option applied to current DI recipients, some disabled veterans would have their income reduced. [source: CBO Budget Options Vol 2 Aug 09 ++]
Question
robert51
VA Disability Compensation Update 05: Approximately 3 million veterans...about 2 million of whom are under age 65...receive compensation from the Department of Veterans Affairs (VA) for their serviceconnected disabilities. The amount is based on a rating of an impairment’s effect on a veteran’s earnings capacity, on average; disability ratings range from zero to 100%. Additional allowances are paid to veterans whose disabilities are rated 30% or higher and who have dependent spouses, children, or parents. Veterans with disabilities may also qualify for cash payments from other sources, including workers’ compensation; private disability insurance; means-tested program benefits, such as Supplemental Security Income; and, for veterans under 65, the Social Security Disability Insurance (DI) program. About 146,000 veterans who receive disability compensation from VA also receive DI payments. When Social Security beneficiaries are eligible for disability benefits from more than one source, ceilings usually limit combined disability benefits from public sources to 80% of a recipient’s average pre-disability earnings. Those DI payments...after any reduction...are adjusted periodically to reflect changes in the cost of living and in national average wages. Veterans’ compensation payments for disabilities are not considered for that purpose, however, and thus do not apply toward limits. That same exclusion applies to means-tested benefits and to some benefits that are based on public employment.
The Congressional Budget Office (CBO) has provided to Congress an option to reduce government spending that would limit disability compensation for veterans who receive VA disability benefits and DI payments. The option would reduce VA’s disability compensation by the amount of the DI benefit. Applying that change to current and future recipients of veterans’ compensation would affect an estimated 153,000 recipients in 2010, saving almost $1.8 billion that year and approximately $9.6 billion between 2010 and 2014. Applying the change only to veterans who are newly awarded compensation payments or DI payments would affect an estimated 3,000 recipients in 2010, saving about $40 million in outlays that year and about $1.1 billion through 2014. A rationale in favor of this option is that it would eliminate duplicate public compensation for a single disability. An argument against it is that the change would subject veterans’ disability benefits to a form of means-testing (VA benefits are considered entitlements). Moreover, to the extent that this option applied to current DI recipients, some disabled veterans would have their income reduced. [source: CBO Budget Options Vol 2 Aug 09 ++]
Link to comment
Share on other sites
Top Posters For This Question
2
2
1
1
Popular Days
Oct 1
9
Top Posters For This Question
Pete53 2 posts
cowgirl 2 posts
robert51 1 post
jbasser 1 post
Popular Days
Oct 1 2009
9 posts
8 answers to this question
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now