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HRD-85-97 1 (1985-08-27)

handle is hein.gao/gaobabnte0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 August 27, 1985 HUMAN RESOURC S DIVISION 3-220103 The Honorable Alan Cranston Ranking Minority Member Committee on Veterans' Affairs United States Senate Dear Senator Cranston: Subject: Impact of Offsetting Earnings From VA's Work Therapy Programs From Veterans' Pensions (GAO/HRD-85-97) At your request, we conducted a study to determine the impact of offsetting income earned by veterans from the Veterans Administration's (VA's) work therapy programs against these veterans' VA pension benefits. We briefed your staff on the results of our study on July 29, 1985. As you know, veterans participating in VA's two work therapy programs--incentive therapy and compensated work therapy--are paid wages based on their ability to function and work. Under the incentive therapy program, veterans are assigned various duties within a VA medical center and are paid from 5 cents an hour to half the minimum hourly wage from VA appropriated funds. Under the compensated work therapy program, private companies contract with VA for work to be performed by the veterans and pay the wages earned. Until 1978, income veterans earned under these programs was not counted in determining pension benefits. Public Law 95-588 established a revised VA pension program which, among other things, provided that all income from any source not specifically exempted by law would be counted as income and used to determine entitlement to, and the level of, VA pension benefits. The law did not exempt income earned from the VA work therapy programs; thus, VA was required to offset earnings from those programs against pension payments. (401 948) 127807 o;3 !)

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