Statement of Administration Policy: H.R. 4244 - Veterans' Compensation Rate Amendments of 1992

(SENT 731/92)
(House)
(Applegate (D) OH and 17 others)

The Administration strongly supports annual increases in the rates of compensation for service-disabled veterans and the survivors of (1) servicepersons who die in service and (2) veterans who die as a result of service-connected conditions.

The President's FY 1993 Budget proposes that the increase in the rates of veterans' compensation and dependency and indemnity compensation (DIC) be identical to that provided to Social Security and veterans' pension beneficiaries. That increase, equal to the annual change in the Consumer Price Index (CPI), was estimated to be 3.0 percent in the President's FY 1993 Budget. H.R. 4244 would provide a 3.2 percent rate increase for veterans' compensation and DIC which reflects the Congressional Budget Office's latest estimate of the CPI change.

Should the actual increase in the Consumer Price Index (CPI) be 3.2 percent, the costs above the President's Budget would not be required to be offset under the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990. Increases in excess of the actual CPI increase, however, would have to be offset.

The Administration has no objection to House passage of H.R. 4244, but will work with the Senate to ensure that veterans compensation and DIC beneficiaries receive the same rate increase as provided to Social Security and veterans' pension beneficiaries. That rate increase will be determined no later than November 1, 1992.