Transcript Quarterly Training

Service Officer Training
Non-Service
Connected Pension
(VA Form 21-527EZ)
Randy Lingerfelt
Veterans Benefit Representative
[email protected]
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2013 PENSION RATES
Veteran
Annual
Alone
1
2
3
Standard
$12,465
$16,324
$18,453
$20,582
HB
$15,233
$19,093
$21,222
$23,351
Monthly
A&A
$20,795
$24,652
$26,781
$28,910
Standard
$1,038
$1,360
$1,538
$1,715
HB
$1,269
$1,591
$1,769
$1,946
5%Medical
A&A
$1,733
$2,054
$2,232
$2,409
$623
$816
$922
$1,029
A&A
$1,114
$1,328
$1,506
$1,683
$418
$546
$654
$760
For each additional child add $2129.00
Widow
Annual
Monthly
Standard
HB
A&A
Standard
HB
Alone
$8,359
$10,217
$13,362
$697
$851
1
$10,924
$12,796
$15,940
$910
$1,066
2
$13,071
$14,925
$18,069
$1,089
$1,244
3
$15,200
$17,054
$20,198
$1,267
$1,421
38 CFR 3.272(j)(1) Child deduction Earned income = $10,000
Medical Expenses must exceed 5% to be deducted form Maximum Annual Pension Rate
DIC = $1215.00 or IF the veteran was PERMANENT AND TOTAL FOR AT LEAST EIGHT YRS.
The widow is eligible for an additional $258/month or $1473.00 monthly if she was married to the veteran
for the full eight years. Any additional school child $301; Helpless child $515; 38 USC1311(a)(1)
HOUSEBOUND
DIC Housebound add $141
You must meet one of the following conditions to receive the Housebound benefit:
Your disability confines you to your home, OR
You have one condition rated 100% disabling AND another condition rated
60% or more disabling
AID & ATTENDANCE
DIC A & A add $301
You must meet one of the following conditons to receive the Aid & Attendance benefit:
You need constant help with your daily needs such as bathing, dressing or eating, OR
You are blind, OR
You are a patient in a nursing home
The Standard Medicare deduction Part "B" = $104.90
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BASIC PENSION
 Purpose
 History
 Current Pension
 (PL 95-588)
 Pension Eligibility
 Wartime Periods
 Disability Requirements
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BASIC PENSION CONT.
 Income Requirements
 Net Worth Requirements
 Computation of Pension Rate
 Medical Expenses
 Conditions of Reduction
 File on VA Form 21-527EZ
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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.
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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
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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
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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.
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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?
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EXCLUSIONS FROM INCOME 38
CFR 3.272 M21-1 PART IV, 16.41
 Welfare
 Maintenance
 Sale of Property
 Medical Expenses
 Education Expenses
 Funeral Expenses
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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.
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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
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COMPUTATION CONT.
Minus
=
INCOME
DED. Expenses (Less 5% MAPR)
IVAP
Minus
=
MAPR
IVAP
Entitlement (Annual)
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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
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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.
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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”
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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
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CONDITIONS OF
REDUCTION
 Reduction because of hospitalization (38 CFR
3.551 (e)
 Adjustment of allowance for A&A (38 CFR
3.552)
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ANNUAL REPORTING
 Claiming Medical Expenses VA Form 21-8416
Projected Medical Expenses
 Difference between recurring and Non-recurring
medical expenses?

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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.
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APPROPRIATE REFERENCE
MATERIALS
 38 CFR








3.1 (d), (e) (f) (I) &
3.3
3.12a
3.23
3.27
3.262
3.271 to 3.277
3.342
- 3.351
- 3.352
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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
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