BASIC SERVICE OFFICER TRAINING SEPTEMBER 7, 2011

NON-SERVICE CONNECTED PENSION

DON SMITH - INSTRUCTOR

BASIC PENSION(Overview of Topics)

PURPOSE HISTORY CURRENT PENSION

(PL 95-588) PENSION ELIGIBILITY WARTIME PERIODS DISABILITY REQUIREMENTS

Overview Cont.

INCOME REQUIREMENTS NET WORTH REQUIREMENTS COMPUTATION OF PENSION RATE MEDICAL EXPENSES ANNUAL REPORTING (EVR’S) 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 VA’s 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 95-588 – 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 WarWWII: 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 3.321 (b) (2)

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.

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

EXCLUSIONS FROM INCOME

38 CFR 3.272

Welfare

Maintenance

Sale of Property

DEDUCTIBLE EXPENSES38 CFR 3.272

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 WORTH38 CFR 3.274

Relationship of Net Worth to Pension

“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

COMPUTATION OF INCOME Income work sheet (PL 95-588)

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 3.351 and 3.352.

Describe A&A

Describe H/B

ANNUAL REPORTING Eligibility Verification Reports

- Who Receives Annually?

- What form do they receive?21-0516 vice 21-0516-1

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 SHOULDhave been paid for previous year, NOT the amount they were actuallypaid.

Based on actual income and deductible expenses for that year.

As determined by annual EVR and 21-8416.

Retro check or Overpayment letter to follow.

Retro check WILL NOT be equal to total ofMedical Expenses reported on 21-8416.

CONDITIONS OF REDUCTION Reduction because of hospitalization (38 CFR

3.551 (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

21-527EZ Traditional Pension Claim

21-526

Death Pension No Fully Developed Claim

21-534 Only

APPROPRIATEREFERENCE MATERIALS

38 CFR M21-1MR, Part V, Subpart iii,- 3.1 (d), (e) (f) Chapter 1, Section G (l) &- 3.3- 3.12a- 3.23- 3.27- 3.271 to 3.277- 3.342 - 3.351- 3.352

QUESTIONS ????