Roosevelt Wallace - Page 24




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          the projects as a medically therapeutic activity, and are                   
          supervised by VA medical personnel.”  The VA report, appended to            
          the committee’s report, describes the compensatory aspect of the            
          CWT program as “[reinforcing] through the use of well-established           
          motivational principles (‘rewards’), modifications or development           
          of attitudes, habits, skills, and behaviors necessary to attain             
          or maintain a maximum level of social or psychological                      
          adjustment.”  S. Rept. 94-1206 (Part I), supra at 181, 1976                 
          U.S.C.C.A.N. at 6472.  We believe that, over the years, Congress            
          has understood that the principal benefits to participants in VA            
          therapeutic work programs are medical and not pecuniary.  It is             
          reasonable to assume that that understanding played a role in               
          Congress’s 1986 decision to recast payments made to participants            
          in VA therapeutic work programs as “distributions” (and not                 
          “payments”, “wages”, or “remuneration”) and to provide that those           
          distributions not be considered income for certain pension                  
          purposes.  See discussion of Veterans’ Benefits Improvement and             
          Health-Care Authorization Act of 1986 supra in section III.F.3.             
          of this report.                                                             
               While petitioner was compensated with a distribution from              
          the VA Special Therapeutic and Rehabilitation Activities Fund for           
          the services he rendered, we are inclined to conclude that                  
          distributions of that class are not simply payments for services            
          rendered.  There is a welfare (noncompensatory) aspect to them              







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