1. Service Officer Training Randy Lingerfelt Veterans Benefit Representative Randy.lingerfelt@tn.gov 2 Non-Service Connected Pension (VA Form 21-527EZ)

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3. BASIC PENSION  Purpose  History  Current Pension  (PL 95-588)  Pension Eligibility  Wartime Periods  Disability Requirements 3

4. BASIC PENSION CONT.  Income Requirements  Net Worth Requirements  Computation of Pension Rate  Medical Expenses  Conditions of Reduction  File on VA Form 21-527EZ 4

5. PURPOSE OF VA PENSION  Pensions were intended to relieve distress from disability and destitution among the aging population of veterans and surviving spouses. Today VA’s pension has evolved into what is now known as improved pension and provides a level of financial support to wartime veterans or their widows. 5

6. HISTORY OF PENSION  Old Law Pension  Few, if any left  Section 306 Pension  Income Based (Vets Only)  Fixed Monthly Amount (Does not have a cost of living increase)  Can elect to convert to Improved Pension (Conversion is Irrevocable)  Improved Pension – PL 95-588 – January 1, 1979 6

7. BASIC ELIGIBILITY UNDER “IMPROVED PENSION”  To qualify, veteran must have 90 days or more of active duty, at least one day of which was during a period of war. 38 CFR 3.3(3). Generally, veterans who entered a / d on or after 9/18/1980, 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 7

8. DISABILITY REQUIREMENTS  Must be permanently and totally disabled (P&T) (38 CFR 4.17)  Exceptional Cases Allowed? (38 CFR 3.321 (b) (Must be approved by SVC Center Manager)  PL 107 – 103, Sec. 206 & 207 – Authority for statutory presumption of P&T for pension at age 65. Effective 12/27/2001.  Plus P&T for veteran’s who are either a patient in a N/H getting long term care or Social Security disability or Supplemental Social Security Income. 8

9. INCOME REQUIREMENTS  Recognizing countable income – See 38 CFR 3.271 (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? 9

10. EXCLUSIONS FROM INCOME 38 CFR 3.272 M21-1 PART IV, 16.41  Welfare  Maintenance  Sale of Property  Medical Expenses  Education Expenses  Funeral Expenses 10

11. NET WORTH 38 CFR 3.274  Relationship of Net Worth to Pension. Net Worth will be a bar to benefits if it is “reasonable that some part of the corpus of such estate be consumed for the veteran’s maintenance”  Evaluating Net Worth – 38 CFR 3.275  Whether property can be readily converted into cash at no substantial sacrifice  Life expectancy of claimant, number of dependents & potential rate of depletion. 11

12. COMPUTATION OF INCOME  Gross (family) Annual Income  Deductible Expenses (Minus 5% of MAPR)  IVAP (Income for VA purposes)  MAPR (Maximum annual pension rate)  Annual / Monthly Entitlement 12

13. COMPUTATION CONT. INCOME Minus DED. Expenses (Less 5% MAPR) = IVAP MAPR Minus IVAP = Entitlement (Annual) 13

14. DEDUCTIONS: Unusual Medical Expenses 38 CFR 3.262(I) (M21-1, P. IV, Ch.16)  Unusual Medical Expenses – Unreimbursed medical expenses that exceed 5% MAPR  Para 16.30 Deductible Expenses – General  Para 16.31 Medical Expenses  Addendum A – Listing of possible medical expenses 14

15. DEDUCTIONS CONT. (Additional Points of Interest)  Para 16.31 b. (2) – In-Home Attendants  Disabled Person A&A or HB – Attendant does not have to be licensed. All fees paid are allowable “as long as the attendant provides some medical or nursing services” includes fees paid for cleaning and food preparation, etc.  Disabled Person NOT A&A or HB – Attendant must be licensed health professional, then all fees are allowable. 15

16. DEDUCTIONS CONT. (Additional Points of Interest)  Para 16.31 b. (10) – Reference for Assisted Living Facilities  Disabled Person A&A or HB – Full cost of Assisted Living is deductible as long “as the facility provides some medical or nursing services”  Disabled Person NOT A&A or HB – “Allow expenses paid to the facility only to the extent that they represent payment for medical treatment” 16

17. 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 3.351 and 3.352.  Describe A&A  Describe H/B 18

18. CONDITIONS OF REDUCTION  Reduction because of hospitalization (38 CFR 3.551 (e)  Adjustment of allowance for A&A (38 CFR 3.552) 19

19. ANNUAL REPORTING  Claiming Medical Expenses VA Form 21-8416  Projected Medical Expenses  Difference between recurring and Non-recurring medical expenses? 20

20. 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 VA Form 21-8416  Retro check or Overpayment letter to follow.  Retro check WILL NOT be equal to total of medical expenses reported on 21-8416. 21

21. APPROPRIATE REFERENCE MATERIALS  38 CFR  3.1 (d), (e) (f) (I) & - 3.351  3.3 - 3.352  3.12a  3.23  3.27  3.262  3.271 to 3.277  3.342 22

22. APPROPRIATE REFERENCE MATERIALS  M21-1  Part III - M21-1, PT IV  5.19 to 5.26 - 11.01 to 11.05  6.01 to 6.10 - 12.01 to 12.11  6.16 to 6.22 - 12.15 to 12.19  Chapter 7 - Chapter 16  M21-1, MR CH 2 - Addenda A&B  9.01 to 9.02  M21-1, MR PT III, Sub PT ii 23