Congressional Research Service Report: 'Veterans Benefits Administration: Pension Programs'
Within the
* The Veterans Pension (also known as the Improved Disability Pension) makes payments to certain disabled, low-income veterans. In FY2019, the program paid an average annual benefit of
* The Survivors Pension (also known as the Improved Death Pension) makes payments to certain low-income spouses or children of deceased veterans. In FY2019, the program paid an average annual benefit of
* The Medal of Honor Pension makes payments to veterans who were awarded the Medal of Honor. There are fewer than 70 Medal of Honor recipients living who qualify for this pension. This pension program pays a monthly benefit of
This report discusses the eligibility criteria and current benefit levels of these programs. In addition, the report provides data on the number of pension beneficiaries and the average annual benefit amounts for FY1999 through FY2019.
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Overview
Within the
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Difference Between VA and DOD Pensions
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This report focuses on
The third VBA-administered pension program discussed in this report is for Medal of Honor recipients. To receive this benefit, a veteran must have been awarded the Medal of Honor from a
VBA administers other pension programs for veterans or survivors who qualified for pension benefits prior to 1979. These programs include the Old Law Disability Pension, the Section 306 Disability Pension, the Old Law Death Pension, and the Section 306 Death Pension. This report is focused on current pension eligibility and benefits, and the aforementioned programs are not discussed./3
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Veterans (Improved Disability) Pension
Eligibility Criteria
To be eligible for the Veterans Pension benefit, a veteran must meet eligibility criteria related to the individual's period of service and military discharge status, income and net worth, and disability or age. A veteran must complete and submit VA Form 21P-527EZ along with the specified materials to apply for this pension benefit.
Period of Service Requirement
A veteran must meet military service requirements, including having served during a period of war, to be eligible for the Veterans Pension benefit./4
Specifically, a veteran must have been discharged from military service under conditions other than dishonorable and must meet one of the following conditions:
* started on active duty before
* started on active duty after
* was an officer and started on active duty after
Disability Requirement
For a veteran to meet the disability requirement for the Veterans Pension benefit, the individual must be permanently and totally disabled due to a nonservice-connected injury, illness, or combination thereof that is not a result of the veteran's willful misconduct./6
If a veteran is either partially or completely disabled by a service-connected injury, illness, or combination, the individual would generally be eligible for disability compensation, a separate
A veteran would meet the disability criteria if the veteran
* is a patient in a nursing home for long-term care due to a disability;
* is unemployable due to a disability reasonably certain to continue throughout life;
* is suffering from a disability that will continue throughout life and that makes it impossible for the veteran to maintain a gainful occupation; or
* is suffering from a disease or disorder that has been determined to be of such nature that the person is permanently and totally disabled./8
To determine if a veteran is totally disabled, VBA may combine the disability ratings for service connected disabilities with the disability ratings for nonservice-connected disabilities. However, if the veteran's service-connected disabilities have contributed to making the veteran eligible for the pension benefit, the veteran will receive the greater of the pension benefit or the
Age Requirement
A veteran may be eligible for the pension if the veteran is aged 65 or older and meets the other pension requirements, regardless of disability status (or disability rating). A veteran under 65 years of age may still be eligible for a pension if permanently and totally disabled from a nonservice-connected disability that was not a result of the veteran's own willful misconduct./9
Net Worth Requirement
No benefit is paid to a veteran who has significant wealth, defined as a net worth large enough that it would be reasonable for part of that wealth to be used for the veteran's maintenance./10
Prior to
These proposed changes would amend Title 38 of the Code of Federal Regulations as it pertains to net worth, asset transfers, and income exclusions for needs-based benefits at
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Economic Impact Payments (EIPs) and Pension Income Limit Section 20010 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136), excludes EIPs from a veteran's annual income, thereby preventing them from counting toward the income limit associated with pension eligibility. The section explicitly states that the rebate "shall not be treated as income or resources for purposes of determining eligibility for pension under chapter 15 of title 38." Consequently, the EIPs included in the CARES Act do not cause a decrease in the amount of pension a veteran or survivor is to receive.
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Following a period of public comment,
* Net Worth Limit. The current total net worth limit to qualify is
* 36-Month Look-Back Period. During the 36 months before filing a claim for benefits, any assets transferred (sold, given away, put in trust, etc.) by the claimant at less than fair market value would be counted as assets for the purposes of determining net worth and could, depending upon the amount transferred, delay eligibility for benefits for up to five years./13 Other major means test programs, such as Medicaid and Supplemental Security Income, have similar look-back rules. These rules are to avoid individuals transferring or selling land to reduce their new worth solely for the purpose of receiving
* Five-Year Penalty Period. This is a period of nonentitlement as a result of a
* Medical Expense Definitions. Before the implementation of the 2018 rule, no regulation clearly defined medical expenses for the purpose of deductions from income for
Thus, the higher the eligible unreimbursed medical expenses, the lower the net income and the greater chance of a veteran being eligible for the pension.
Maximum Annual Pension Rate
The MAPR for the Veterans Pension benefit is set in statute./16
The annual amount is adjusted automatically by law each year to reflect a COLA equal to the COLA for
If the veteran has a spouse or dependent child (or children), the veteran's benefit will be adjusted accordingly.
As noted previously, the pension benefit for a veteran who meets the other eligibility requirements (period of service and age or disability) is calculated by subtracting the veteran's annual countable income from the annual maximum benefit (i.e., the benefit amount is reduced dollar-for-dollar by countable income). A veteran with annual countable income above the annual maximum benefit amount would receive no pension benefit.
As of
The benefit amount could be increased if the veteran either requires additional care, known as aid and attendance,/19 or is housebound. However, the veteran's benefit can be increased for only one of those reasons; the beneficiary cannot receive aid and attendance as well as housebound benefits.
Aid and Attendance/20
Claimants may be eligible for a higher benefit if they need additional care and services (aid and attendance), such as assisted living or in-home care. For payments made in 2020, the maximum annual benefit for a claimant without dependents who is in need of aid and attendance is
For claimants with one dependent, the maximum benefit in 2020 is
The necessity for aid and attendance is presumed when one or more of the following conditions are met:
* the claimant needs another person to help with performing personal functions required for daily living, such as bathing, feeding, and dressing;
* the claimant needs to stay in bed, or spend a significant portion of the day in bed, due to an illness;
* the claimant is a patient in a nursing home due to a loss of mental or physical capabilities related to a disability; or
* the claimant's eyesight is limited (i.e., even with glasses or contact lenses, the claimant has 5/200 or less in both eyes or concentric contraction of the visual field to five degrees or less)./22
Not all four factors must be present for the beneficiary to receive a higher pension amount due to the need for aid and attendance. The claimant is not required to demonstrate the need for round-the-clock care but must demonstrate a regular and ongoing need for the aid and attendance of another person.
If care is provided and paid for by
Housebound
Similar to aid and attendance, claimants who are housebound may be eligible for an increased benefit. For payments made in 2020, the maximum annual benefit for a housebound claimant without dependents is
To receive an increased benefit rate, a pension claimant must either have
* a single permanent disability evaluated as 100% disabling and due to such disability, be permanently and substantially confined to the claimant's immediate premises; or
* a single permanent disability evaluated as 100% disabling and have another disability or combination of disabilities evaluated as 60% or more disabling.
A person is considered housebound when confined to a dwelling and immediate premises due to a disability, and it is reasonably certain that this confinement will continue throughout the individual's lifetime. A dwelling includes the claimant's home or any other place the claimant is living, such as a care facility or a family member's home. Additionally, if the claimant is unable to leave the dwelling without the assistance of another, such as when a disability prevents the claimant from being able to drive, the claimant is considered housebound.
Incarcerated Veterans Pension Provision
The pension benefit for a veteran convicted of a felony or misdemeanor is terminated on the 61st day of federal, state, or local imprisonment. Payment may resume upon the completion of imprisonment if the veteran continues to meet the eligibility requirements. If
Pension benefits can be apportioned to family members if a veteran remains eligible to receive a pension but for the fact that the veteran is incarcerated, and the veteran's dependent(s) meet the income requirements for Survivors Pension (without consideration of the veteran's income).
If a veteran or dependent is a fugitive, felon pension benefits would be prohibited along with any apportionment of those benefits to a spouse or dependent family member./26
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Survivors (Improved Death) Pension
Most survivors of deceased veterans are eligible for the Survivors Pension benefit if the deceased veteran had met the requirements described in the "Veterans (Improved Disability) Pension" section, and the survivor meets the net worth requirement.
Survivors may qualify for the Survivors Pension if the deceased veteran had not met the period of service requirement , but the veteran's service separation was due to a service connected disability or fell under one of the exemptions listed in 38 U.S.C. Sec.5303A (see "Period of Service Requirement"). If, at the time of death, the veteran had met one of these exemptions and had been receiving or was entitled to receive compensation or retirement pay for a service-connected disability, the veteran's survivor(s) may be eligible to receive the Survivors Pension.
Regardless of the exemption, the veteran must have still been considered totally and permanently disabled by a nonservice-connected disability for the survivor to be eligible for this benefit./27
Eligibility Criteria
The low-income surviving spouse or dependent child of a deceased veteran is eligible for the Survivors Pension benefit if the deceased veteran and surviving spouse or dependent child meet the eligibility requirements described in the following sections.
Surviving Spouse Requirement
The surviving spouse must not have remarried following the veteran's death and must have been married to the deceased veteran for at least one year prior to the veteran's death. However, if the veteran and surviving spouse were married less than a year but had a child together either before or after the marriage, the surviving spouse may be eligible for benefits, including benefits for a dependent child (see "Surviving Child Requirement")./28
If the surviving spouse married the veteran after the veteran's discharge but before the following dates, the surviving spouse may still be eligible for benefits:
* For veterans of the Mexican border period and World War I, the marriage must have occurred prior to
* For veterans of World War II, the marriage must have occurred prior to
* For veterans of the Korean conflict, the marriage must have occurred prior to
* For veterans of the
* For veterans of the Gulf War period, which includes those who served post
Surviving Child Requirement
Generally, a surviving child who is in the custody of a surviving spouse does not have entitlement to the Survivors Pension. Rather, the surviving spouse is eligible for a higher MAPR based on the number of dependent children. In addition, the pension may be paid to the guardian of the veteran's dependent child if the child is not under the legal custody of the surviving spouse.
A surviving child of a deceased wartime veteran must be unmarried and meet one of the following requirements:
* be under the age of 18;
* be under the age of 23 and attending a
or
* be unable to care for oneself due to a disability incurred before the age of 18./33
Net Worth Requirement
The net worth for a surviving spouse or child is calculated like that of a veteran for the Veterans Pension. See "Net Worth Requirement" for the description of what is included in the net worth limit of
For a surviving spouse with custody of a deceased veteran's child, the child's income may also be included when it is considered "reasonably available" to the surviving spouse's expenses for "reasonable family maintenance."/34
However, a veteran's surviving child's current work income would be excluded from countable income if the income is not more than the income level at which a federal income tax return must be filed,/35 plus post-secondary education or vocational rehabilitation or training expenses paid by the child./36
If the surviving spouse or child were receiving any proceeds from a life insurance policy on the veteran, those payments would be excluded from countable income./37
Maximum Annual Pension Rate
The MAPR for the Survivors Pension benefit is set in statute./38
The annual amount is adjusted automatically by law each year to reflect a COLA equal to the COLA for
Effective
For surviving spouses with one dependent child, the MAPR is
Aid and Attendance
Surviving spouses may be eligible for a higher benefit if they need additional care and services (aid and attendance), such as assisted living or in-home care. The requirements and qualifications for aid and attendance are the same for a surviving spouse as for a veteran. For payments made in 2020, the maximum annual benefit for a surviving spouse without dependents is
Housebound
Similar to aid and attendance, surviving spouses who are housebound may be eligible for an increased benefit. The requirements and qualifications for the housebound benefit are the same for a surviving spouse as for a veteran. For payments made in 2020, the maximum annual benefit for a housebound surviving spouse without dependents is
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Medal of Honor Pension
On
With the yearly increase, the monthly Medal of Honor pension that took effect on
Eligibility for this pension is based solely on receipt of the Medal of Honor and is paid to any eligible individuals who elect to receive it. Receipt of this special pension does not reduce any other benefits under
The program is smaller than the Veterans Pension and Survivors Pension programs, as there are fewer than 70 living Medal of Honor recipients./45
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Footnotes:
1 The military retirement program is also referred to as a pension. For additional information on military retirement programs, see CRS Report RL34751, Military Retirement: Background and Recent Developments, by
2
3 In the FY2019 VBA Annual Benefits Report, these programs are jointly categorized as "Other Pension" because they are no longer open to new applicants. During FY2019, a total of 760 veterans were collecting one of these two pensions with an average annual payment of
4 38 U.S.C. Sec.1521(j). For information on periods of war, see CRS Report RS21405,
5
6 38 U.S.C. Sec.1521(a). 38 C.F.R. Sec.3.1(n) defines willful misconduct as "an act involving conscious wrongdoing or known prohibited action. A service department finding that injury, disease or death was not due to misconduct will be binding on the
7 For more information on disability compensation and programs for service-disabled veterans, see CRS Report R44837, Benefits for Service-Disabled Veterans, coordinated by
8 38 U.S.C. Sec.1502(a).
9 38 C.F.R. Sec.Sec.3(vi)(A)-(B).
10 38 U.S.C. Sec.1522.
11 The Government Accountability Office (GAO) report recommended that
12 For more information on the
13 Per 38 C.F.R. Sec.3.276(a)(7), the look-back period will not include any date prior to
14 38 C.F.R. Sec.3.276(e) provides an example on determining the penalty period.
15 38 C.F.R. Sec.3.272(g). A complete list of deductible medical expenses is found in 38 C.F.R. Sec.3.278.
16 38 U.S.C. Sec.Sec.1521(b)-1521(g).
17 38 U.S.C. Sec.5312.
18
19 Aid and attendance is provided when a veteran needs another person's help to perform activities of daily living, such as eating, dressing, or taking a shower.
20 Definitions of aid and attendance and housebound can be found in 38 C.F.R. Sec.3.351. For a general overview, see
21
22
23 38 U.S.C. Sec.5503. Veterans who reside in state veterans nursing homes where
24
25
26 38 C.F.R. Sec.3.666.
27 38 U.S.C. Sec.Sec.1521(j)(2), 1541(a), 1542(a), and 5303A. Such exemptions include, but are not limited to, discharge from service due to a physical or mental condition not considered a disability but that prevents the servicemember from performing his or her duties; discharge from service due to a pre-existing condition that
28 If the surviving spouse were previously married, but the marriage was terminated prior to
29 38 U.S.C. Sec.Sec.101(7) and (30). The Mexican border period is defined as "the period beginning on
30 38 U.S.C. Sec.1541(f).
31 38 U.S.C Sec.1501(4). 38 U.S.C. Sec.101(33) defines the Persian Gulf War period as "the period beginning on
32 Per 38 U.S.C. Sec.104(a), a
33
34 38 C.F.R. Sec.3.23(d)(5)-(6). Reasonable family maintenance expenses include costs for basic necessities (such as food, clothing, shelter, etc.) and others, determined on a case-by-case basis, that are necessary to support a reasonable quality of life.
35 The income level at which a tax return must be filed (the filing requirement) is equal to the standard deduction. For tax year 2019, the filing requirement is
36 38 U.S.C. Sec.1503(a)(10).
37 38 U.S.C. Sec.1503(a)(12).
38 38 U.S.C. Sec.1541.
39 38 U.S.C. Sec.5312. For more information on the Social Security COLA, see CRS Report 94-803,
40
41
42
43 See VA, 2020 VA Special Benefit Allowances Rates, at https://www.va.gov/disability/compensation-rates/specialbenefit-allowance-rates/.
44 38 U.S.C. Sec.1562.
45 Congressional Medal of
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View Appendix: https://crsreports.congress.gov/product/pdf/R/R46511
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