Transcript NSC PENSION BENEFITS

BASIC SERVICE OFFICER TRAINING
SEPTEMBER 7, 2011
NON-SERVICE CONNECTED PENSION
DON SMITH - INSTRUCTOR
BASIC PENSION
(Overview of Topics)
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PURPOSE
HISTORY
CURRENT PENSION
(PL 95-588)
PENSION ELIGIBILITY
WARTIME PERIODS
DISABILITY REQUIREMENTS
Overview Cont.
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INCOME REQUIREMENTS
NET WORTH REQUIREMENTS
COMPUTATION OF PENSION RATE
MEDICAL EXPENSES
ANNUAL REPORTING (EVR’S)
UNDERSTANDING RATE CHART
PURPOSE OF VA PENSION
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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
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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)
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IMPROVED PENSION - PL 95-588 – JANUARY 1, 1979
BASIC ELIGIBILITY UNDER
“IMPROVED PENSION”
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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 War
WWII: 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
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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
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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
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Welfare
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Maintenance
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Sale of Property
DEDUCTIBLE EXPENSES
38 CFR 3.272
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Medical Expenses (See handout)
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Education Expenses
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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 WORTH
38 CFR 3.274
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Relationship of Net Worth to Pension
“reasonable that some part of the corpus of such
estate be consumed for the veteran’s maintenance”
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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
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Income work sheet (PL 95-588)
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Gross (family) Annual Income
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Deductible Expenses
(Minus 5% of MAPR)
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IVAP (Income for VA purposes)
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MAPR (Maximum annual pension rate)
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Annual/Monthly Entitlement
SPECIAL MONTHLY PENSION
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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.
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Describe A&A
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Describe H/B
ANNUAL REPORTING
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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
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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 annual EVR and 21-8416.
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Retro check or Overpayment letter to follow.
Retro check WILL NOT be equal to total of
Medical Expenses reported on 21-8416.
CONDITIONS OF REDUCTION
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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
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Live Pension
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Fully Developed Claim
21-527EZ
Traditional Pension Claim
21-526
Death Pension
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No Fully Developed Claim
21-534 Only
APPROPRIATE
REFERENCE MATERIALS
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38 CFR
- 3.1 (d), (e) (f)
(l) &
- 3.3
- 3.12a
- 3.23
- 3.27
- 3.271 to 3.277
- 3.342
- 3.351
- 3.352
M21-1MR, Part V, Subpart iii,
Chapter 1, Section G
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QUESTIONS ????