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handle is hein.crs/crsmthmbcei0001 and id is 1 raw text is: 


CRS INSIGHT


Executive Branch Legislative Proposals Affecting

Veterans Benefits in the FY2018 Budget

September 12, 2017 (IN10772)




Related Author


     &QSc1t D, SzymendQra




Scott D. Szymendera, Analyst in Disability Policy (sszmenderaacrs.loc gov, 7-0014)

The FY2018 Budget for the De r mn    f    rn Affairs (VA) contains two legislative proposals which, if enacted,

would affect disability and other types of cash benefits payable by the VA to certain veterans. These proposals would
affect both current and future beneficiaries. The proposal to restrict eligibility for Individual Unemployability (IU)
would reduce the monthly benefits of affected veterans and the proposed changed to the calculation of the Cost of
Living Adjustment (COLA) would reduce the annual growth in benefits. Savings from both proposals would be used to
partially offset costs associated with the Vtetrans Choice Program.

Individual Unemployability

For the purposes of vetens Disability Compensatio, veterans with service-connected disabilities are rated by the VA
from 0% to 100%, in 10% increments, based on their level of impairment. Benefits increase with increased ratings.

Under current regulations at 38 CER §416, a veteran with one disability rated at least 60%, or with two or more
disabilities with at least one disability rated at least 40% and a combined rating of at least 70%, may have his or her
disability rating increased to 100% if it is determined that the veteran is unable to maintain substantially gainful
employment because of his or her disabilities (referred to as Individual Unemployability, or TU).

A legislative proposal in the FY2018 budget, as described on page 151 of the document Ma/or Savimm and Reforms:
Budeet ot the Unitedtates-Government FY2018, would reduce the monthly benefit of a veteran who is receiving
disability compensation at the 100% disability rate due to IU to the veteran's original disability rating, when the veteran
reaches the minimum Social Security retirment age and is first eligible for Social Security retirement benefits (age 62).
Current veterans would be affected if they are receiving Social Security retirement benefits.

The justification for this change, as provided in the budget, is that when a veteran reaches retirement age, he or she is no
longer in the labor market and thus, the veteran's unemployment is based on his or her age rather than his or her
disability. p                          r    that, because many of these veterans have been out of the workforce
due to their disabilities, they may only be eligible for small Social Security benefits at retirement age and may not have
other sources of retirement income such as pensions, savings, or 401(k) investment plans.

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