SERVICE OFFICER TRAINING SEPTEMBER 20-22, 2006

NON-SERVICE CONNECTED PENSION

DON SMITH - INSTRUCTOR

BASIC PENSION

PURPOSE HISTORY CURRENT PENSION

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

BASIC PENSION 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 improved pension to provide a level of financial support to wartime veterans or their widows.

HISTORY OF PENSION OLD LAW PENSION FEW, IF ANY LEFT

SECTION 306 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. 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

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 Medical expenses Education expenses

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

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

DEDUCTIONS: Unreimbursed Medical Expenses

(M21-1, Pt. IV, Ch. 16)

Para 16.30 Deductible Expenses – General

Para 16.31 Medical Expenses

Addendum A – Listing of possible medical expenses

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.

•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”

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))

Adjustment of allowance for A&A(38 CFR 3.552)

APPROPRIATEREFERENCE MATERIALS

38 CFR M21-1- 3.1 (d), (e) (f) - Part III (l) & - 5.19 to 5.26- 3.3 - 6.01 to 6.10- 3.12a - 6.16 to 6.22- 3.23 - Chapter 7- 3.27 - 9.01 to 9.02- 3.271 to 3.277 - M21-1, MR,- 3.342 PT III, Sub PT ii- 3.351 - M21-1, PT IV- 3.352 - 11.01 to 11.05

- 12.01 to 12.11- 12.15 to 12.19- Chapter 16- Addenda A&B