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HRD-78-26 1 (1978-01-18)

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                         DOCUMENT RESUMK9

048f49 - (B01950831 (Restricted)

Veterans Administrato'fi Benefits Programs in the Philippines
Need Reassesstent. HRD-79-26; B-133044. January 18, 1978. 34 pp.
+ appendix (1 pp.).

Report to Sen. William .[oxmire, Chairman, Senate Coamittee on
Appropriations: .UD-Ine endent Agencies Subcommittee; by Elmer
B. Staats, Comptroller .  eral.

Issue Area: Income Secuilty Programs: Programs to Protect
    Workers' Iucome (31f6); Employment and Training Programs:
    Beport on the Traect of 1974 13208).
Contact: Human Resources Div.
Budget Function: Educa-ton, Manpower, and Social Services:
    Training and Emp]?oyAnt (504).
Orqanization Concerne &Cepartment of Labor; Veterans
    Administration.
congressional Relevance: House Committee on Ways and lieans;
    Senate Committee oni Tinance.
Authority:  (P.L. 89-6Tfi- 38 U.S.C. 107). Armed Forces Voluntary
    RecruitmeLnt Act 6 ':T945. National Service Life Insurance Act
    of 1940. P.L. 79-3061 P.L. 94-432. P.L. 95-117. P.L. 94-502.
    V'.L. 95-202.

         Filipino veterats, primarily of World War II, ace
entitled by law to pensions, educational benefits, and other
compensation as American veterans. However, they receive much
hiqher benefits becaug e the leveI. of income in the Philippines
is lower than in the Urited States. The situation causes many
abuses of the programs .,n the Philippines and payments to
American veterans in the United States that are disproportionate
to their Filipino counterparts. Recommendations: The
Subcommittee on HUD and Independent Agencies of the qenate
Committee on Appropriations should reassesr the benefits
programs and study the following alteznatives to curtail program
abuses and to better equate benefit payments with the prevailing
level of income in the Philippines: retain the present level of
benefits but do not increase them in the future, move Veterans
Administration functions to the United States, change the basis
used to compute benefits, and set up a trust fund or negotiate a
lump-sum settlement w~h the Republic of the Philippinca to
cover costs of all remaining benefits. The subcommittee should
also consider rescis@ion of the authority which permits
Filipinos to enlist ijMhe U.S. Armed forces so that they will
no longer be eligible'ao receive benefits. Since a reassessment
of the proqram will probably take considerable time, the
Administrator of Veterans Affairs should take the necessary
actions in the interim to insure that payments are being made
only to eligible beneficiaries. (Author/SC)

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