American Recovery and Reinvestment Act Authorizes Payment of $198 Million Compensation To Eligible Filipino World War II Veterans: When Will Actual Payment Be Received?

On February 17, 2009, President Obama signed the stimulus bill, known as the American Recovery and Reinvestment Act of 2009 (ARRA), which authorizes payment of $198 million compensation to eligible Filipino World War II veterans:  $15,000.00 each for U.S. citizens, $9,000.00 for non-U.S. citizens.

On September 30, 2008 the United States 110th Congress enacted the $198 million financial compensation for damages for human suffering for the active service of Filipino World War II veterans, under the Consolidated Appropriations Act.  But the bill (S.3689) authorizing payment was placed on hold last year.

Ultimately, the United States 111th Congress came through with the passage of the stimulus bill on February 13, 2009, which almost verbatimly reproduced Section 1801 of the Senate bill (S.3689), in Section 1002 of the American Recovery and Reinvestment Act of 2009 (ARRA), entitled “Payments To Eligible Persons Who Served In The United States Armed Forces In The Far East During World War II.”

Payment From Treasury’s General Fund Of Claims Submitted Within One (1) Year:

Section 1002(b) of the ARRA creates a fund known as the “Filipino Veterans Equity Compensation Fund” in the general fund of the Treasury, from which amounts in the fund shall be available to the Secretary of Veterans Affairs to make payments to eligible Filipino World War II veterans.

The Secretary of Veterans Affairs “may make a payment from the compensation fund to an eligible (veteran) who, during the one-year period beginning on the date of enactment of this Act (February 17, 2009 to February 16, 2010) submits to the Secretary a claim for benefits under this section” (Section 1002(c)(1) of the ARRA).

“The application for the claim shall contain such information and evidence as the Secretary may require.”

Under Section 1002(j) of the ARRA, the Secretary “shall  promptly issue application forms and instructions to ensure the prompt and efficient administration of the provisions of this section.”

And Section 1002(k) of the ARRA deletes the requirement under Section 1801(k) of the Senate bill, S.3689, supra, for the Secretary to “prescribe regulations to carry out this section” “not later than 90 days after the enactment of this Act.”  So, the Secretary of Veterans Affairs can implement the payment of compensation benefits without prescribing regulations.

U.S. Department Of Veterans Affairs Now Accepting Claims:
By News Release dated February 18, 2009, the U.S. Department of Veterans Affairs is reaching out to Filipino WWII veterans estimated at about 12,000 living in the Philippines, and 3,000 in the United States, and stating that “claims are now being accepted, (but) information regarding the actual release of payments will be provided as it becomes available.”

The News Release also states the locations of the Philippine Veterans Affairs Offices (PVAO) all over the Philippines, where representatives of the U.S. Department of Veterans Affairs Manila Regional Office would be available to accept claims at specified dates (starting February 19, 2009) and times.

“All Filipino World War II veterans are requested to bring the following information and documentation (if applicable) when filing their claims:
Two (2) forms of identification (such as passport, driver’s license, senior citizen ID, Bureau of Post ID, Voter ID, etc.);
VA Claim Number ;
Service Number;
Philippine Veterans Affairs Office Claim Number;
Philippine Veterans Affairs Office Pension Bank Account Number;
and U.S. Passport (if a U.S. citizen)”.

Veterans are encouraged to apply in person and “claims from spouses, widows, and children of Filipino WWII veterans will not be accepted.”  For more information, visit the U.S. Embassy website at http://manilausembassy.gov.

Proposals On Implementation Of Payment Of Compensation To Filipino WWII Veterans:

A.  Proof Of Eligibility:

Under Section 1002(d) of the ARRA, an eligible veteran is any person who:  (1)(A) served before July 01, 1946, in the organized military forces of the Government of the Commonwealth of the Philippines, while in the service of the Armed Forces of the United States under military order of the President dated July 26, 1941, including organized guerrilla forces under commanders recognized by the Army of the United States; or (B) served in the Philippine Scouts; and (2) was discharged or released from service under conditions other than dishonorable.”

It is recommended that minimum proof of eligibility be required due to passage of time:  for example, V.A. Identification card, certification letter from Missouri (U.S. Armed Forces Personnel Records), etc.

B.  Application For Claim Form:

The Secretary of Veterans Affairs should issue application forms within fifteen (15) days from February 17, 2009; otherwise, applicants should be allowed to use VA Form 21-526, Application For Compensation And/Or Pension, already familiar to and accessible to the Filipino WWII veterans, as suggested by Franco Arcebal, Vice President of the American Coalition For Filipino Veterans, Inc., or send certified letter-application for claim for benefits with eligibility documents, as recommended by Eric Lachica, volunteer coordinator of said veterans’ coalition.

C.  Payment To Surviving Spouse For Legal Heirs:

Section 1002(c)(2) of the ARRA provides that:  “If an eligible person who has filed a claim (within the one-year period starting February 17, 2009) for benefits under this section dies before payment is made under this section, the payment under this section shall be made instead to the surviving spouse, if any, of the eligible person.

It is recommended that payment be made to the surviving spouse to be distributed among all legal heirs of the estate of the deceased veteran, which may include the surviving spouse.  Afterall, compensation payment for damages for human suffering of the veteran would be an asset of his/her estate.

If there is no surviving spouse, payment should be made to the estate of the deceased veteran, to be distributed among his/her legal heirs.

D.  Time Of Payment:

Section 1002(c) of the ARRA does not provide a time of payment of compensation.  It is recommended that an application for claim for compensation benefits be adjudicated or decided within thirty (30) days from submission thereof.

Any Request For Additional Evidence shall be sent to the veteran within the 30-day period, and grant him/her 30 days to submit the evidence requested.

If the Secretary intends to deny the claim, the veteran shall be sent a Notice of Intent To Deny within the 30-day period from submission of the claim, and allowed to present rebuttal arguments and/or evidence within 30-days from receipt of the Notice of Intent To Deny the claim.  After receipt of the rebuttal from the veteran, his/her claim should be decided within fifteen (15) days.

Once the claim application is approved, it is a final agency decision; and payment should be made forthwith.  If the claim is denied, the veteran should have the right to appeal to the United States Court of Federal Claims within 30 days from receipt of the denial decision.

Afterall, Section 1002(i) of the ARRA recognizes the service of Filipino World War II veterans as active military service in the U.S. Armed Forces; and payment of compensation benefits is final and constitutes a complete release of any claim against the United States, under Section 1002(h)(1) thereof.

[The Author, Roman P. Mosqueda, has done pro bono legal work for Filipino World War II veterans for over ten (10) years in Los Angeles, written several articles, and appeared in several forums on veterans’ issues.  He is admitted to practice before the United States Court of Federal Claims.]