Transcript NSC Pension Benefits Power Point

SERVICE OFFICER TRAINING
SEPTEMBER 20-22, 2006
NON-SERVICE CONNECTED PENSION
DON SMITH - INSTRUCTOR
BASIC PENSION
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PURPOSE
HISTORY
CURRENT PENSION
(PL 95-588)
PENSION ELIGIBILITY
WARTIME PERIODS
DISABILITY REQUIREMENTS
BASIC PENSION 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 improved pension to provide a
level of financial support to wartime
veterans or their widows.
HISTORY OF PENSION
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OLD LAW PENSION
FEW, IF ANY LEFT
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SECTION 306 PENSION
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-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. 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
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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
Maintenance
Sale of Property
Medical expenses
Education expenses
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
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
DEDUCTIONS: Unreimbursed Medical
Expenses
(M21-1, Pt. IV, Ch. 16)
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Para 16.30 Deductible Expenses –
General
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Para 16.31 Medical Expenses
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Addendum A – Listing of possible
medical expenses
DEDUCTIONS CONT.
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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
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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))
Adjustment of
allowance for A&A
(38 CFR 3.552)
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
M21-1
- Part III
- 5.19 to 5.26
- 6.01 to 6.10
- 6.16 to 6.22
- Chapter 7
- 9.01 to 9.02
- M21-1, MR,
PT III, Sub PT ii
- M21-1, PT IV
- 11.01 to 11.05
- 12.01 to 12.11
- 12.15 to 12.19
- Chapter 16
- Addenda A&B