Order Code RL33323
Veterans Affairs: Benefits for
Service-Connected Disabilities
Updated August 23, 2007
Douglas Reid Weimer
Legislative Attorney
American Law Division

Veterans Affairs:
Benefits for Service-Connected Disabilities
Summary
Congress provides various benefits to American veterans and their dependents
through the United States Department of Veterans Affairs (VA). One of these
benefits is disability compensation, which is a monthly cash benefit program for
veterans currently impaired from past service-connected activities.
A claim for disability compensation in initially analyzed by the VA at the local
level to determine: 1) whether the claimant is considered a “veteran” (eligible for
benefits); 2) whether the veteran qualifies for disability compensation (entitled to
benefits); 3) the extent of the impairment and the “rate” of the disability; and 4) the
effective date for the compensation.
Three requirements to qualify for disability compensation are: 1) medical
diagnosis of the current impairment; 2) evidence of an in-service occurrence or an
aggravation of the disease or injury; and 3) medical proof of a connection between
the in-service incident or aggravation of an injury or illness and the current disability.
The requisite standard of proof and certain medical presumptions are set by statute.
The VA is required to provide assistance to the veteran in his/her case preparation by
providing records and medical examinations. Special rules have been established for
certain specific situations involving combat veterans, prisoners of war, and veterans
exposed to Agent Orange.
If the veteran is found eligible for disability compensation, the VA then uses the
Schedule for Rating Disabilities (SRD) to set the amount of earnings impairment on
a percentage basis; the higher the percentage, the greater the compensation will be.
Certain complications arise with the use of the rating system. A veteran’s rating may
be increased or decreased over time — depending on his/her medical condition.
Rating decisions may be appealed administratively.
Legislation passed in the Second Session of the 109th Congress increased the
2007 monthly disability compensation payments. The 110th Congress has considered
additional legislation that may impact service-connected disabilities. One bill would
change the manner in which disabled veterans could qualify to receive Social
Security Disability Insurance (SSDI) benefits. Several bills have been introduced to
deal with the claims processing backlog at the VA. Other legislation has been
introduced that would provide veterans a cost-of living adjustment (COLA) for their
VA benefits equal to the COLA for Social Security benefits.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Veterans’ Disability Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The “Local Determination” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Requirements for Disability Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Medical Proof of a Connection Between the In-Service Incident or
Aggravation or an Injury/Illness and the Current Disability . . . . . . . . . 4
The VA’s Obligations in the Preparation/Presentation of
the Veteran’s Case and Certain Presumptions . . . . . . . . . . . . . . . . . . . . . . . . 5
Standard of Proof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Assistance in Case Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Certain Presumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Presumption of Medical Soundness . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Special Rules for Certain In-Service Occurrences . . . . . . . . . . . . . . . . . 6
The VA Rating System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Schedule for Rating Disabilities (SRD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Application of the Rating System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Complications in the Use of the Rating System . . . . . . . . . . . . . . . . . . 8
Changes in Veterans’ Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Special Monthly Compensation (SMC) . . . . . . . . . . . . . . . . . . . . . . . . . 9
Zero Percent Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Periodic Examinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Appeals from Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Evaluation of the Rating System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Current Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Veterans’ COLA (Cost-of-Living Adjustment) . . . . . . . . . . . . . . . . . . . . . . 10
Social Security Disability Insurance (SSDI) Benefits . . . . . . . . . . . . . . . . . 11
Veterans’ Claims Backlog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Veterans Affairs: Benefits for
Service-Connected Disabilities
Introduction
Veterans’ Disability Programs
Congress, through the United States Department of Veterans Affairs (VA),
provides a wide variety of services and benefits to veterans and to certain members
of their families.1
Two disability programs are administered by the VA. These programs pay
monthly cash benefits to certain disabled veterans.2 Disability compensation, the
focus of this report, provides a monthly cash benefit if the veteran is at least 10%
disabled3 as a consequence of his/her military service — which is considered to be
a service-connected disability. A veteran applying for service-connected disability
compensation does not need to be totally disabled, have low income, or wartime
military service. In contrast, a disability pension may be paid to a wartime4 veteran
with limited income, who is no longer able to work, or is at least age 65. A disability
pension is not related to a service-connected injury or medical condition and takes
into account the material needs of the veteran; it is a “needs-based” pension.5
The “Local Determination”
The VA analyzes each veteran’s claim for disability compensation at the VA
regional office closest to the veteran’s residence, called the “local determination.”
This determination involves a four-step adjudication process of the veteran’s claim.
1 See generally Federal Benefits for Veterans and Dependents, published by the
Departments of Veterans Affairs (2007 edition). (Hereafter cited as “Federal Benefits.”)
See [http://www1.va.gov/opa/vadocs/fedben.pdf] for the publication online. See CRS Report
RL33113, Veterans Affairs: Basic Eligibility for Disability Benefit Programs, by Douglas
Reid Weimer. This report deals with the fundamental requirements for disability benefit
programs.
2 Id.
3 The severity of the veteran’s disability is evaluated by the VA and a determination is made
as to what percentage of employment capacity is impaired. See discussion below.
4 See CRS Report RL33113, Veterans Affairs: Basic Eligibility for Disability Benefit
Programs
, by Douglas Reid Weimer.
5 For further discussion of a disability pension or a non-service-connected pension, see CRS
Report RL33113, Veterans Affairs: Basic Eligibility for Disability Benefit Programs, by
Douglas Reid Weimer.

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First, the VA determines the claimant’s basic eligibility to receive VA benefits.
A determination is made as to whether the claimant was discharged or separated
under other than dishonorable conditions,6 whether the claimant had “active
service,”7 and whether the claimant’s condition is based upon the veteran’s willful
misconduct.8
Second, if the claimant is found eligible for benefits,9 the VA then determines
whether the veteran qualifies for in-service disability compensation.
Third, if the VA determines that the veteran is entitled to disability
compensation, the VA then evaluates the extent of the disability and makes a
determination of the percentage of the disability based upon the “Schedule for Rating
Disabilities.”10 Findings adverse to the interests of the veteran may be appealed
administratively.
Fourth, the VA establishes the effective date for the award.
Requirements for Disability Compensation11
The purpose of disability compensation is to assist currently disabled veterans
whose injury is connected to military service, and to that end, a veteran12 must meet
three basic criteria to the VA’s satisfaction.
! One: A recent medical diagnosis of a current impairment, disability,
or disease.
! Two: Medical or, on occasion, lay evidence of an in-service
occurrence or aggravation of the disease or injury.
! Three: Medical proof of a connection between the in-service
occurrence or aggravation of an injury or illness and the current
disability.
Each of these requirements is examined below.
6 See CRS Report RL33113, Veterans Affairs: Basic Eligibility for Disability Benefit
Programs
, by Douglas Reid Weimer.
7 Id. at 4-5.
8 Id. at 7-8.
9 Hence, the claimant becomes a “veteran” for purposes of benefits.
10 38 U.S.C. § 1155; 38 C.F.R. § 4. See discussion below.
11 See Barton F. Stichman et al., Veterans Benefits Manual at § 3.1.5. (Hereafter cited as
Veterans Benefits Manual.”)
12 For the purposes of this report, it is assumed that the claimant/applicant has met the very
basic eligibility requirements for VA benefits. The claimant/applicant will be referred to
as the “veteran” for the remainder of this report.

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Medical Evidence of the Current Impairment or Disability
Disability compensation is available only to veterans with current disabilities.13
Although a veteran may have had an illness or injury during his/her service time, the
mere fact that this occurred is not compensable.
To provide evidence of the current medical problem, the veteran may submit
medical records of the current diagnosis and/or treatment. Letters from physicians
may be added to the record. Generally speaking, lay evidence of a medical condition
is not sufficient. The VA has certain duties to assist veterans in the application
process.14 The VA must assist by providing the veteran with the appropriate
records.15 Usually, the VA is required to provide veterans with a medical exam in
order to diagnose a current medical condition.16 However, certain circumstances may
exist under which the VA may not be required to provide such an examination or
assistance to the veteran.17 In addition, the VA must advise veterans of incomplete
applications18 and evidence which is needed to evaluate the veteran’s claim.19
Evidence of an In-Service Occurrence or
Aggravation of the Disease or Injury

The veteran’s second requirement for disability compensation is that there is
medical or, under certain circumstances, lay evidence of an in-service occurrence or
aggravation of a disease or injury. The in-service requirement is construed broadly.
A disability incident or onset of disability is not required to be related to the veteran’s
military responsibilities and is covered even if it occurred during leave.20 Further, the
evidence submitted on the record must only demonstrate that it is as likely as not that
there was an in-service aggravation or occurrence of a disease or injury. When there
is nearly equal positive and negative evidence regarding a material issue, the
Secretary is required to give the benefit of the doubt to the veteran.21
13 38 U.S.C. §§ 1110, 1131. These provisions deal with the basic entitlement for disability
compensation.
14 38 U.S.C. § 5103A.
15 38 U.S.C. §§ 5103A(b),(c).
16 38 U.S.C. § 5103A(d).
17 38 U.S.C. § 5103A(a)(2).
18 38 U.S.C. § 5102(b).
19 38 U.S.C. § 5103(a).
20 For example, a veteran may receive compensation for a medical condition that resulted
from a sports injury incurred during in-service time. See Veterans Benefit Manual at
§3.1.1.1.
21 38 U.S.C. § 5107(b).

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The veteran must submit corroborating evidence of the incident.22 He/she must
prepare and submit a statement describing the occurrence, disease, or injury in detail,
along with the circumstances surrounding the event. The type of evidence that the
veteran must submit may depend upon the type of injury or disease which is being
connected to the time of service. For example, a veteran who sustained a fall while
in-service might produce evidence of medical treatment for the fall at the time of its
occurrence and evidence from military personnel who witnessed the fall.
Medical Proof of a Connection Between
the In-Service Incident or Aggravation or
an Injury/Illness and the Current Disability

This third element requires that there must be a link between the current injury
or illness (requirement 1) and that the disease, injury, or event happened during a
period of military service (requirement 2). This requirement is sometimes known as
service-connected, the “service connection,” or the nexus requirement.
Statutes and regulations require proof of one of five types of connections. One:
there is a direct connection between the current disability and an incident that
happened during the period of military service.23 Two: the current medical condition
existed prior to service but was exacerbated during service.24 Three: the current
medical problem did not appear during military service, but is presumed to have
begun or be connected with something that occurred during service, either by statute
or by VA regulation.25 Four: The present problem is the result of a primary medical
condition, and that condition is connected to a period of military service.26 Five: the
condition is the result of an injury caused by VA health service, VA
22 38 C.F.R. § 3.303.
23 38 C.F.R. §§ 3.303(a), 3.304, 3.305. See also 38 U.S.C. § 1154. In determining whether
the current condition relates to the in-service problem, the VA determines whether the
problem is acute or chronic. An acute problem is considered to be a problem of relatively
short duration. A chronic condition is of lengthy duration and may return.
24 38 U.S.C. § 1153; 38 C.F.R. § 3.306(a). If the disability existed prior to service, the VA
must ascertain whether there was an increase in the disability during service. The
preexisting problem will not be considered to be aggravated by service if the VA determines
that the exacerbation resulted from the natural progression of the disease.
25 38 U.S.C. §§ 1112, 1116, 1133; 38 C.F.R. §§ 3.307-3.309; 38 C.F.R. § 3.313(b). If the
disability claimed is a disease which was not diagnosed or recorded on the veteran’s service
record, the VA is required to ascertain whether the incubation time for the disease could
have started during in-service time (38 C.F.R. § 3.03(d)).
26 38 C.F.R. § 3.310(a). If the disability claimed cannot be determined to be in-service,
either directly or by exacerbation, the VA will then decide whether the problem may be
service-connected on a secondary basis. This reasoning is based on the theory that it was
proximately caused by a service-connected condition. For instance, a primary disease is
contracted in-service. A related, secondary disease develops as a result of the primary
disease.

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training/rehabilitation services, or by participation in a VA sponsored work therapy
program.27
In order to establish this connection, it is necessary to have adequate medical
evidence in the claim.28 What this signifies is that for the in-service connection to be
approved, the veteran is required to have medical proof that the disease, injury, or
event which occurred during service actually caused the veteran’s current disability.
The VA’s Obligations in
the Preparation/Presentation of
the Veteran’s Case and Certain Presumptions
The VA is required by law to use certain standards in the review of a veteran’s
claims, and the VA has certain statutory obligations in the preparation of the
veteran’s case. In addition, statute and regulations provide for certain presumptions
of disability as a result of certain occurrences. These standards, requirements, and
presumptions are summarized below.
Standard of Proof
As explained, to receive disability benefits evidence is required to prove a
connection between an in-service incident and a current disability, but in assessing
evidence on these elements the veteran is to be given the “benefit of the doubt.”29
The statute provides that “When there is an approximate balance of positive and
negative evidence regarding any issue material to the determination of a matter, the
Secretary shall give the benefit of the doubt to the claimant.”30 Regulations provide
that when reasonable doubt arises, such doubt will be resolved in favor of the
claimant.31 Hence, in order to satisfy this element, the submitted medical evidence
generally needs to show that it is as likely as not, that there is a connection between
the in-service injury, occurrence, or illness and the current disability.
Assistance in Case Preparation
The VA has a responsibility to assist the veteran in developing a claim. Among
other things, the VA is required to advise the veteran of the type of evidence that will
need to be submitted to substantiate the claim.32
27 38 U.S.C. § 1151.
28 38 U.S.C. § 5107.
29 38 U.S.C. § 5107(b).
30 Id.
31 38 C.F.R. § 3.102.
32 38 U.S.C. § 5103(a).

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The VA also must make service and medical records available to veterans for
the preparation of their cases.33 Such records are often crucial in proving the
veteran’s claim. In many instances, the VA is required to provide veterans with a
medical examination in order to diagnose the current medical condition.34 However,
under certain circumstances the VA may not be required to provide assistance to the
veteran.35
Certain Presumptions
In its analysis of certain claims, the VA is required by statute and/or regulation
to make certain presumptions.
Presumption of Medical Soundness. In evaluating a veteran’s claim, the
VA generally presumes that the veteran entered the service in sound medical
condition.36 This may assist the veteran in proving a claim by making it difficult for
the VA to claim that the condition or disease existed prior to service. However, if
the medical impairment was noted at the time of entry into service, the veteran may
have to prove that the condition was exacerbated in-service. If the VA is able to
prove by “clear and unmistakable evidence” that the disease or injury was in
existence prior to service, and that it was not worsened during service, the veteran’s
claim will be denied.
Special Rules for Certain In-Service Occurrences. Special rules exist
under which the VA is required to consider a service-connected problem by
presumption. For example, certain diseases associated with exposure to Agent
Orange will be presumed to be service-related in the case of Vietnam veterans. 37
A similar regulation holds that veterans who were held prisoners of war, or who
served in combat, can be presumed to have suffered traumatic, stressful events during
their military service.38 Similarly, combat veterans have special rules applicable to
them in proving an in-service injury, or other incident.39 Usually, if a combat veteran
states that he/she suffered a disease, injury, or other event during combat, the VA will
usually accept that statement as fact. This is the case even if there are no service
records to substantiate the claim.
33 38 U.S.C. §§ 5103A(b), (c).
34 38 U.S.C. § 5103A(d).
35 38 U.S.C. § 5103A(a)(2).
36 38 U.S.C. § 1111.
37 38 C.F.R. § 3.307(a)(6)(iii).
38 38 C.F.R. § 3.304(f).
39 38 U.S.C. § 1154(b); 38 C.F.R. § 3.304(d),(f).

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The VA Rating System
Congress has established by statute a rating system to categorize a veteran’s
degree of disability for in-service injuries.40 This system is implemented by the VA
through a series of complex regulations and procedures.
After the VA determines that a disability is service-connected, the VA regional
office level goes through a review process (the “rating activity”) to determine the
disability rating (on a percentage basis). As used by the VA, the term “disability” is
defined as “the average impairment in earning capacity” that results from diseases,
injuries, or their resultant aftermath.41
Schedule for Rating Disabilities (SRD)
By authority of Congress the VA set up the Schedule for Rating Disabilities
(“SRD”), which rates various disabilities on a percentage basis.42 The statute
provides for ten grades of disability,43 and the higher the disability determination, the
higher is the monthly compensation that the veteran receives. The VA determines
the disability level for an eligible veteran, and Congress sets the compensation rates
for veterans based on ratings. 44
Again, in making individual determinations, the VA and the Board of Veterans’
Appeals (BVA) apply the various ratings of the SRD.45 The SRD is detailed: various
sections deal with injuries or diseases that impact particular body functions/parts,
including the musculoskeletal system,46 eyes,47 and other functions such as hearing
and eye diseases, infectious diseases, respiratory system, cardiovascular system,
digestive system, genitourinary system, gynecological conditions, and other
functions. Each of these sections of the SRD (dealing with a particular body part or
function) has a series of medical diagnoses with a numerical diagnostic code (dc)
40 38 U.S.C. § 1155.
41 38 C.F.R. § 4.1.
42 38 U.S.C. §§ 1155.
43 10% through 100%.
44 The current monthly rates, effective on December 1, 2006, are as follows: an unmarried
veteran without dependents and with a 10% disability receives $115 per month. The rates
increase to a 100% disability payment of $2,471 per month. For rate tables and a
compensation calculator, see [http://www.vba.va.gov/bln/21/Rates/comp01.htm]. The
payment rates are not automatically adjusted for inflation, and are only increased if
Congress passes enabling legislation.
Congress usually grants an increase based on the
consumer price index or the cost-of-living formula used to determine the Social Security old
age increase. The 2007 rates were set by P.L. 109-361, 109th Cong., 2nd Sess. (2006), the
Veterans’ Compensation Cost-of-Living Adjustment Act of 2006.
45 38 C.F.R. § 4.1.
46 38 C.F.R. §§ 4.40 to 4.73.
47 38 C.F.R. § 4.75 to 4.84a.

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that breaks down percentages of disability48 based upon the severity of the disability.
Each degree of disability under each dc has a description of the symptoms that the
claimant veteran must have in order to qualify for that rating. The disability degree
increases with the increase in the severity of the symptoms.
Application of the Rating System49
Applying this rating system, the VA examines the veteran’s medical records to
determine the medical diagnosis for the veteran’s service-connected disability. The
VA then finds the applicable diagnostic code for the disability and finds the degree
of disability that is appropriate to the symptoms and diagnosis of the veteran’s
condition. If a rating falls between two ratings, and the symptoms are closer to the
higher rating, then the higher rating will be selected.50 In makings its determination,
the VA examines all of the available evidence, including service records, lay
statements, and medical records and other evidence.51
Complications in the Use of the Rating System. When the VA applies
the diagnostic code(s) to veterans’ claims, a number of variables come into play,
some which may be quite complex. And while every rating has unique
circumstances, VA ratings in similar cases may not always seem consistent. Having
to make fine distinctions within an intricate rating system based on a reading of a
veteran’s symptoms inevitably leads to some claims that a rating is “wrong” or
“underrated.”
Another complication in the rating process is that a medical condition may be
able to be rated under more than one diagnostic code, sometimes to the detriment of
the veteran. In addition, not all disabilities and their symptoms and complications
are listed on the rating chart, in which case an analogous condition may be used for
the rating.52
A further complication in the rating system occurs when a veteran has two or
more service-connected disabilities. In such a circumstance, the overall percentage
of disability is determined by combining the individual ratings, but not by adding
them up together.
To calculate the appropriate combined rating, the VA makes a
determination by considering each impairment in the order of its severity. Direction
48 See 38 C.F.R. § 4.84a for an example of the ratings and diagnostic codes chart for
impairment of vision.
49 See CRS Report RL33991, Disability Evaluation of Military Servicemembers, by
Christine Scott, Sidath Viranga Panangala, Sarah A. Lister, and Charles A. Henning.
50 38 C.F.R. § 4.7.
51 38 C.F.R. § 3.103(d).
52 38 C.F.R. § 4.20. However, if a case when a veteran’s disability is so extraordinary or
unusual that an analogy cannot be made through use of the rating charts, an “extraschedular
rating” for a veteran may be made (38 C.F.R. § 3.321(b)).

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on how to make these determinations is contained in the “Combined Rating Table”
in the VA regulations.53
Changes in Veterans’ Ratings. Should the severity of the service-
connected disability increase over time, the veteran may apply for an increase in the
rated percentage of disability.54 Similarly, should the condition improve, the ratings
percentage may be decreased, and the monthly payments would decrease.
Special Monthly Compensation (SMC). If a veteran has severe
disabilities,55 he/she may be entitled to special monthly compensation (SMC) which
provides compensation payments at a rate higher than the 100% rate.56 In addition
to the SMC, certain veterans with severe disabilities that require daily assistance or
regular health services may be eligible for extra compensation.57
Zero Percent Evaluation. If the degree of disability from a service-
connected incident does not impair earning capacity, a veteran may receive a 0%
rating.58 However, even a noncompensable evaluation under certain circumstances
may entitle the veteran to preferences in federal or state employment and VA health
care. A noncompensable evaluation may also be used to document a medical
condition if it subsequently worsens.
Periodic Examinations. Following the award of compensation benefits, the
VA may require periodic examinations to determine whether the condition is
constant in its severity and that continued payment of disability compensation is
warranted.59 The VA is authorized to reexamine veterans receiving compensation
benefits at any time. However, under certain circumstances — if the condition is
static — the VA may not schedule review examinations.
Appeals from Ratings. Some veterans may not be satisfied with their
disability rating, and may wish to appeal. Such an appeal is first undertaken at the
local VA level and may eventually proceed to the Court of Veterans Claims
(“Court”).60 The Court examines whether the VA considered all of the appropriate
facts and set forth a satisfactory explanation for its choice and application of the
diagnostic code.
53 38 U.S.C. § 1157; 38 C.F.R. § 4.25.
54 See “Disability Compensation Benefits” at VA website; A Summary of VA Benefits:
Putting Veterans First
, VA Pamphlet 21-00-1 (February 2004); see also [http://www.va.gov]
(click on “Benefits,” and then go to “Compensation and Pension”).
55 Such disabilities may involve anatomical loss or the loss of use of a hand or foot.
56 38 U.S.C. § 1114(k); 38 C.F.R. § 3.350.
57 38 U.S.C. § 1114(r)(2); 38 C.F.R. § 3.352.
58 Many conditions listed within the ratings tables are rated as 0. See also 38 C.F.R. § 4.31.
59 38 C.F.R. § 3.327(a).
60 See CRS Report RS22561, Veterans Affairs: The U.S. Court of Appeals for Veterans
Claims — Judicial Review of VA Decision Making
, by Douglas Reid Weimer.

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Evaluation of the Rating System
A recent Government Accountability Office (GAO) study, Veterans’ Disability
Benefits — Claims Processing Challenges and Opportunities for Improvements61
evaluated certain aspects of the disability compensation process. GAO noted that the
VA provided $30 billion in cash disability benefits to more than 3.4 million veterans
and their survivors in FY2004.62 GAO found that the VA has continuing challenges
in the disability compensation process, including large numbers of pending claims
and long processing times.63
Another issue that GAO highlighted is the lack of consistency and accuracy of
rating decisions at and among the VA’s 57 regional offices.64 Consequently, veterans
with similar disabilities may receive different evaluations, and hence may receive
significantly different compensation from the different VA regional offices. GAO
also noted that the VA’s evaluative process has not kept pace with recent
developments in medical technology.65
GAO uncovered another issue — that more recent veterans with severe injuries
would appear to favor a lump sum compensation payment, as opposed to monthly
compensation payments over an extended period of time.66
Current Legislation67
Veterans’ COLA (Cost-of-Living Adjustment)
Congress typically has passed legislation annually to provide a COLA in
veterans disability compensation equal to the COLA automatically provided under
permanent law to recipients of Social Security disability. However, this COLA is not
automatic, and must be enacted annually. The Veterans’ Compensation Cost-of-
Living Adjustment Act of 200668 increased, effective December 1, 2006, the rates
(dollar amounts) of veteran’s disability compensation (as well as for additional
compensation for dependents, the clothing allowance for certain disabled veterans,
61 GAO-06-283T, Testimony before the Committee on Veterans’ Affairs, House of
Representatives; Statement for the Record by Cynthia A. Bascetta, Director, Education,
Workforce, and Income Security Issues (GAO) (December 7, 2005).
62 Id. at 1.
63 Id. at 2, 4-6.
64 Id. at 5-7.
65 Id. at 8-9.
66 Id. at 9-10.
67 See CRS Report RL33216, Veterans Benefits Issues in the 110th Congress, by Carik D,
Davis, Coordinator, Shannon S. Loane, Meredith Peterson, Christine Scott, Charmaine
Mercer, Libby Perl, and Douglas Reid Weimer.
68 P.L. 109-361, 109th Cong., 2nd Sess. (October 16, 2006).

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and the dependency and indemnity compensation for surviving spouses and
children).69
In the 110th Congress, S. 423 (sponsored by Senator Daniel Akaka)70 and H.R.
1284 (sponsored by Representative John Hall)71 would provide veterans a cost-of-
living adjustment equal to the COLA for Social Security benefits effective December
1, 2007. S. 161 (sponsored by Senator John Thune)72 and H.R. 402 (sponsored by
Representative Joe Knollenberg)73 would create an automatic veterans’ COLA based
on the Social Security adjustment.
Social Security Disability Insurance (SSDI) Benefits
H.R. 2941 (introduced by Representative John P. Sarbannes)74 would change
the manner in which disabled veterans could qualify to receive SSDI benefits. If
enacted, the bill would permit veterans with service-connected disabilities that are
rated and certified by the VA as total, to be eligible for SSDI benefits without having
to be evaluated by the Social Security Administration (SSA) if they meet the other
requirements for SSDI benefits. At the present time, SSA evaluates all applicants
(veterans and non-veterans) to determine their eligibility for SSDI benefits.75
Veterans’ Claims Backlog
Presently, there is a large and growing number of pending veterans’ claims
before the VA. According to the VA, which tracks these figures, for the week ended
August 18, 2007, there were 641,029 cases pending.76 Of these cases, 401,298
involve rating cases.77 Concern over this backlog has been expressed by legislators
and veterans’ groups.
In response to this backlog, several bills have been introduced in the 110th
Congress that would impact disability determinations by the VA. The proposed
Wounded Warrior Assistance Act of 2007 is pending in the House, H.R. 1538
69 This law amended 38 U.S.C. § 1114 and established increased monthly payments.
70 Reported by the Senate Committee on Veterans Affairs, Report No. 110-135, and placed
on the Senate Legislative Calendar on July 24, 2007.
71 Passed by the House on March 21, 2007, and referred to the Senate Committee on
Veterans’ Affairs on March 22, 2007.
72 Referred to the Senate Committee on Veterans’ Affairs on January 4, 2007.
73 Referred to the House Committee on Veterans’ Affairs on January 11, 2007.
74 Referred to the House Committee on Ways and Means on June 28, 2007.
75 See CRS Report RL32279, Primer on Disability Benefits: Social Security Disability
Insurance (SSDI) and Supplemental Security Income (SSI)
, by Scott Szymendera.
76 The VA breaks these figures down in very detailed “workload reports.” See
[http://www.vba.gov/bln/201/reports/mmrindex.htm].
77 Id.

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(introduced by Representative Ike Skelton),78 and in the Senate, S. 1283 (introduced
by Senator Mark Pryor).79 Both bills address disability evaluations, a study by the
DOD and VA concerning their evaluation systems, and the possibility of combining
the two systems.
H.R. 653 (sponsored by Representative Thomas M. Reynolds)80 would have the
Secretary of Veterans Affairs accept that an injury or disease is service connected (if
there is no clear and convincing proof to the contrary), based upon the sworn
affidavit of a veteran who served in combat on or before July 27, 1953 (prior to or
during the Korean War).
H.R. 797 (sponsored by Representative Tammy Baldwin)81 and S. 1163
(sponsored by Senator Daniel Akaka)82 would expand disability compensation for
veterans who are visually impaired in both eyes by using a standard definition of
blindness used by other federal agencies.
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78 The bill passed the House on March 28, 2007, and passed the Senate with an amendment
by Unanimous Consent on July 25, 2007. A message on Senate action was sent to the House
on July 26, 2007.
79 The bill was referred to the Senate Committee on Armed Services on May 3, 2007.
80 The bill was referred to the House Committee on Veterans’ Affairs on January 24, 2007.
81 The bill passed the House on May 21, 2007, and was referred to the Senate Committee on
Veterans’ Affairs on March 22, 2007.
82 The bill was placed on the Senate Legislative Calendar on August 3, 2007.