The first government pensions in American history were awarded to naval officers in 1799. Naval pensions were administered by a commission composed of the
secretary of war,
secretary of the Navy, and
secretary of the Army from 1799 to 1832. The commission dissolved in 1832, and the Secretary of the Navy administered the pension plan alone until 1840. In 1828, Congress enacted legislation granting pensions to all remaining
American Revolutionary War veterans. These pensions were administered by the
secretary of the treasury. In 1833, Congress created a "commissioner of pensions" within the War Department and transferred the Treasury's pension function to this new office. Congress created the Department of the Interior in 1849 and transferred the commissioner of pensions office to it. Renamed the Bureau of Pensions, the agency had two duties: Assess and either approve or deny claims, and to pay benefits. The massive increase in pension processing required by the Civil War led to the construction of a massive, new
Pension Bureau Building. The Bureau of Pensions moved into this structure in 1887. Political support came from the
Republican Party, and the largest veterans' organization, the
Grand Army of the Republic. In 1896, pensions accounted for 40% of all federal spending as the Bureau of Pensions provided monthly funds that averaged $12 to 750,000 veterans, and 222,000 dependents, especially widows. The money reached 63% of all surviving Union veterans. With the death of many Civil War veterans beginning in the early 1900s (more than 500,000 had died between 1900 and 1920, requiring a 50 percent reduction in bureau staff), the Bureau of Pensions no longer needed the vast space of the Pension Bureau Building. The agency moved into the
Interior Building in early 1926. On July 21, 1930, President
Herbert Hoover signed an executive order merging the Bureau of Pensions, Veterans' Bureau, and Home for Disabled Volunteer Soldiers into a single Veterans Administration. This ended the Bureau of Pensions' existence as a federal agency. ==References==