BASIC SERVICE OFFICER TRAINING SEPTEMBER 7, 2011 NON-SERVICE CONNECTED PENSION DON SMITH - INSTRUCTOR

BASIC PENSION (Overview of Topics) PURPOSE HISTORY CURRENT PENSION (PL ) PENSION ELIGIBILITY WARTIME PERIODS DISABILITY REQUIREMENTS

Overview Cont. INCOME REQUIREMENTS NET WORTH REQUIREMENTS COMPUTATION OF PENSION RATE MEDICAL EXPENSES ANNUAL REPORTING (EVRS) UNDERSTANDING RATE CHART

PURPOSE OF VA PENSION Pensions were intended to relieve distress from disability and destitution among the aging population of veterans and surviving spouses. Today VAs pension has evolved into what is now know as non-service connected pension to provide a level of financial support to wartime veterans or their widows.

HISTORY OF PENSION OLD, OLD LAW PENSION FEW, IF ANY LEFT SECTION 306 PENSION (SOMETIMES REFERED TO AS OLD LAW PENSION) -INCOME BASED -FIXED MONTHLY AMOUNT (DOES NOT HAVE COST OF LIVING INCREASE) -CAN ELECT TO CONVERT TO IMPROVED PENSION (CONVERSION IN IRREVOCABLE) IMPROVED PENSION - PL – JANUARY 1, 1979

BASIC ELIGIBILITY UNDER IMPROVED PENSION To qualify, veteran must have 90 days or more of active duty, at least on day of which was during a period of war. Generally, veterans who entered a/d on or after 9/8/1980, or officers who entered a/d on or after 10/16/1981, require a minimum of 24 months active duty. 38 CFR 3.12a(a-d) 38 CFR 3.2 – Periods of War WWII: 12/7/41 – 12/31/46 Korea: 6/27/50 – 1/31/55 Vietnam: 8/5/64 – 5/7/75 (From 2/28/61 for Vets who were in Vietnam) Persian Gulf Was: 8/2/90 – Date TBD

DISABILITY REQUIREMENTS Must be permanently and totally disabled (P&T) (38 CFR 4.17) Exceptional cases allowed? 38 CFR (b) (2) PL , Sec. 206 & 207 – Authority for statutory presumption of P&T for pension at age 65. Effective 12/27/2001. Plus P&T for veterans who are either a patient in a N/H getting long term care or Social Security disability.

INCOME REQUIREMENTS Recognizing countable income – See 38 CFR (Computation of Income) Payments of any kind or source shall be counted as income during the 12 month annualization period. Family income Recurring income Non-recurring income Irregular & short term income

EXCLUSIONS FROM INCOME 38 CFR Welfare Maintenance Sale of Property

DEDUCTIBLE EXPENSES 38 CFR Medical Expenses (See handout) Education Expenses Veterans, Spouses, and Childs Final Expenses Detailed information concerning deductible expenses can be found in M21-1MR, Part V, Subpart iii, Chapter 1, Section G.

NET WORTH 38 CFR Relationship of Net Worth to Pension reasonable that some part of the corpus of such estate be consumed for the veterans maintenance Evaluating Net Worth – 38 CFR Whether property can be readily converted into cash at no substantial sacrifice Life expectancy of claimant Number of dependents

COMPUTATION OF INCOME Income work sheet (PL ) Gross (family) Annual Income Deductible Expenses (Minus 5% of MAPR) IVAP (Income for VA purposes) MAPR (Maximum annual pension rate) Annual/Monthly Entitlement

SPECIAL MONTHLY PENSION Increased pension is payable to a veteran by reason of need for A&A or by being housebound (H/B). 38 CFR and Describe A&A Describe H/B

ANNUAL REPORTING Eligibility Verification Reports - Who Receives Annually? - What form do they receive? vice Difference? Block 8, Medical Expenses Of Significance – Block 8. C. Projected Medical Expenses - Difference Between Recurring and Non-recurring Medical Expenses

ANNUAL PENSION ADJUSTMENT LETTER Indicates amount claimant SHOULD have been paid for previous year, NOT the amount they were actually paid. Based on actual income and deductible expenses for that year. As determined by annual EVR and Retro check or Overpayment letter to follow. Retro check WILL NOT be equal to total of Medical Expenses reported on

CONDITIONS OF REDUCTION Reduction because of hospitalization (38 CFR (e)) – Single veteran provided domiciliary or nursing home care by VA will be reduced to $90 Adjustment of allowance for A&A (38 CFR 3.552) – Veteran entitled to A&A is hospitalized at VA or Government expense, the additional amount received for A&A will be discontinued the last day of the month following the month the veteran was admitted.

DIFFERENT TYPES OF PENSION CLAIMS Live Pension Fully Developed Claim EZ Traditional Pension Claim Death Pension No Fully Developed Claim Only

APPROPRIATE REFERENCE MATERIALS 38 CFRM21-1MR, Part V, Subpart iii, (d), (e) (f) Chapter 1, Section G (l) & a to

QUESTIONS ????