A-56259, SEPTEMBER 27, 1935, 15 COMP. GEN. 251

A-56259, SEPTEMBER 27, 1935, 15 COMP. GEN. 251

PENSIONS - INMATES OF VETERANS' ADMINISTRATION FACILITIES UNDER THE PROCEDURE AS NOW ESTABLISHED PAYMENTS OF PENSION MAY BE MADE DIRECT TO COMPETENT DOMICILED MEMBERS OF THE VETERANS' ADMINISTRATION FACILITIES. 14 COMP. GEN. 780, MODIFIED.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, SEPTEMBER 27, 1935:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER OF JULY 22, 1935, AS FOLLOWS:

REFERENCE IS MADE TO THAT PART OF YOUR DECISION, A-56259, DATED APRIL 23, 1935, WHEREIN IT IS HELD THAT THERE IS NO AUTHORITY FOR MAKING PAYMENTS OF PENSION DIRECT TO PENSIONERS WHERE SUCH PENSIONERS MAY BE OR ARE RECEIVING DOMICILIARY CARE IN VETERANS' ADMINISTRATION FACILITIES SUCH AS WAS FORMERLY FURNISHED IN NATIONAL HOMES FOR DISABLED VOLUNTEER SOLDIERS, AND THAT THIS PRACTICE SHOULD BE DISCONTINUED IMMEDIATELY.

BECAUSE OF THE ADMINISTRATIVE EXPENSE AND THE DIFFICULTIES ENCOUNTERED IN MAKING PAYMENTS OF PENSION TO MEMBERS OF HOMES THROUGH THE USE OF SO- CALLED "COLLECTIVE VOUCHERS," SUCH METHOD OF PAYMENT WAS DISCONTINUED ON OCTOBER 1, 1933, INSOFAR AS COMPETENT MEMBERS WERE CONCERNED. IT IS CONSIDERED THAT UNDER THE BROAD PROVISIONS OF PUBLIC, NO. 536, 71ST CONGRESS, DATED JULY 3, 1930, THE ADMINISTRATOR WAS GIVEN VERY GENERAL AUTHORITY IN ADMINISTRATIVE MATTERS FOR THE VERY PURPOSE OF EFFECTING ECONOMIES AS HEREIN INVOLVED BY MAKING CHANGES IN PROCEDURE. BASICALLY, THERE HAS BEEN NO CHANGE IN THE MANNER OF PAYMENT TO THE INDIVIDUAL COMPETENT MEMBER. UNDER THE PROCEDURE FOLLOWED BY THE NATIONAL HOMES FOR DISABLED VOLUNTEER SOLDIERS, THE CHECK FOR THE AMOUNT OF THE MONTHLY PENSION DUE WAS ISSUED TO THE INDIVIDUAL MEMBER BY THE TREASURER OF THE HOME, WHEREAS THE CURRENT METHOD PROVIDES FOR ISSUING THE CHECK DIRECT TO THE PENSIONER BY THE DIVISION OF DISBURSEMENT, TREASURY DEPARTMENT, UPON PROPER CERTIFICATION BY THIS ADMINISTRATION.

VERY LITTLE, IF ANYTHING, IS GAINED FOR THE PURPOSE OF IDENTIFYING THE SOURCE OF FUNDS TO A VETERAN'S CREDIT BY REVERTING TO THE OLD PAYMENT METHOD. IN EITHER CASE, THE VETERAN HAS A PENSION CHECK AND WHETHER THAT CHECK BE DRAWN IN HIS FAVOR THROUGH AN OFFICIAL OF THE FACILITY IN WHICH HE IS DOMICILED OR BY THE DIVISION OF DISBURSEMENT, TREASURY DEPARTMENT, THE PROBLEM AS TO THE DISPOSITION OF THE PROCEEDS OF THE CHECK IS THE SAME. THE PAYMENT OF PENSION DIRECT TO COMPETENT MEMBERS NOT ONLY RESULTS IN A SUBSTANTIAL SAVING TO THE GOVERNMENT IN ADMINISTRATIVE COSTS BUT PERMITS THE HANDLING OF PAYMENTS TO COMPETENT VETERANS, WHO RECEIVE PENSION, IN THE SAME MANNER AS THOSE TO VETERANS RECEIVING COMPENSATION AND THUS ELIMINATES THE NECESSITY OF TWO METHODS OF PAYMENT.

WHILE THE ACT OF 1882 PROVIDES THE MANNER FOR MAKING PAYMENTS TO PENSIONERS IN NATIONAL HOMES FOR DISABLED VOLUNTEER SOLDIERS, IT IS BELIEVED THAT THIS PROCEDURE HAS BEEN RENDERED INOPERATIVE BY THE CONSOLIDATION ACT OF 1930 WHICH HAD AS ITS VERY OBJECT THE ESTABLISHMENT OF A SINGLE UNIFORM METHOD FOR HANDLING ALL VETERANS' BENEFITS AND THE UNIFICATION OF ADMINISTRATIVE PROCEDURE IN CONNECTION THEREWITH. THERE IS ALSO FOR CONSIDERATION THE FACT THAT THERE ARE NO LONGER TREASURERS AT VETERANS' ADMINISTRATION FACILITIES, NOR DO ANY COMPARABLE POSITIONS EXIST AS ALL OF THE AUTHORITY FOR THE DISBURSEMENT OF FUNDS OF THE CHARACTER OF PENSIONS, COMPENSATION, ETC., WAS, UNDER THE EXECUTIVE ORDER OF JUNE 10, 1933, TRANSFERRED FROM THE VETERANS' ADMINISTRATION TO THE TREASURY DEPARTMENT.

THE PRESENT ACCOUNTING SYSTEM PROVIDES FOR THE SEGREGATION OF PENSION FUNDS TO THE CREDIT OF EACH VETERAN AS DISTINGUISHED FROM THE SO-CALLED "PERSONAL FUNDS.' HOWEVER, INSTRUCTIONS TO ALL FACILITIES OF THE VETERANS' ADMINISTRATION, WHICH PROVIDE DOMICILIARY CARE, ARE BEING PREPARED WITH A VIEW TOWARD A MORE DEFINITE ACCOUNTING OF PENSION FUNDS TO THE CREDIT OF THE INDIVIDUAL MEMBERS IN ORDER THAT PROPER DISPOSITION THEREOF MAY BE EFFECTED UNDER EXISTING LAW AT THE TIME OF DEATH OR ABSENCE WITHOUT LEAVE.

IN VIEW OF THE FACT THAT EVERY EFFORT IS BEING MADE TO IDENTIFY, SEGREGATE, AND ACCOUNT FOR PENSION FUNDS AS SUCH, IT IS HOPED THAT WITH THIS ADDITIONAL INFORMATION AT YOUR DISPOSAL THAT YOU WILL GRANT YOUR APPROVAL TO THE CONTINUATION OF THE PAYMENT OF PENSIONS BY THIS ADMINISTRATION DIRECT TO COMPETENT DOMICILED MEMBERS OF VETERANS' ADMINISTRATION FACILITIES.

MY DECISION TO YOU OF APRIL 23, 1935, HOLDING, IN PART, THAT THERE WAS NO AUTHORITY FOR MAKING PAYMENTS OF PENSIONS DIRECT TO PENSIONERS WHERE SUCH PENSIONERS MAY BE OR ARE RECEIVING DOMICILIARY CARE IN VETERANS' ADMINISTRATION FACILITIES SUCH AS WAS FORMERLY FURNISHED IN NATIONAL HOMES FOR DISABLED VOLUNTEER SOLDIERS WAS PREDICATED ON THE FACTS THEN APPEARING THAT THE CHANGED MODE OF PAYMENT IN SUCH CASES WOULD HAVE THE EFFECT OF DISREGARDING OR NULLIFYING THE PROVISIONS OF THE ACT OF JULY 1, 1902, 32 STAT. 564 AND THE ACT OF JUNE 25, 1910, 36 STAT. 736, RELATING TO THE DISPOSITION OF PENSION MONEY IN THE CLASS OF PENSION INMATES REFERRED TO.

ON THE BASIS OF THE FACTS NOW REPORTED SHOWING THAT THE CHANGE IN THE MODE OF PAYMENT IN NOWISE AFFECTS THE PENSION STATUS OF SUCH PAYMENTS AND WITH THE UNDERSTANDING THAT PROPER SAFEGUARDS HAVE BEEN ADOPTED SO AS TO PRESERVE THE CHARACTER OF SUCH PAYMENTS AS PENSION MONEYS WITH THE VIEW TO GIVING FULL EFFECT TO THE PROVISIONS OF THE 1902 AND 1910 ACTS ABOVE CITED, THE DECISION TO YOU OF APRIL 23, 1935, 14 COMP. GEN. 780, IS MODIFIED TO PERMIT PAYMENTS OF PENSIONS DIRECT TO COMPETENT DOMICILED MEMBERS OF VETERANS' ADMINISTRATION FACILITIES UNDER THE PRESENT PROCEDURE.