Service Officer Training

Randy LingerfeltVeterans Benefit Representative Randy.lingerfelt@tn.gov

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Non-Service Connected Pension

(VA Form 21-527EZ)

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2013 PENSI ON RATES

Veteran

Annual Monthly 5%Medical

Standard HB A & A Standard HB A & A

Alone $12,465 $15,233 $20,795 $1,038 $1,269 $1,733 $623

1 $16,324 $19,093 $24,652 $1,360 $1,591 $2,054 $816

2 $18,453 $21,222 $26,781 $1,538 $1,769 $2,232 $922

3 $20,582 $23,351 $28,910 $1,715 $1,946 $2,409 $1,029

For each additional child add $2129.00

Widow

Annual MonthlyStandard HB A & A Standard HB A & A

Alone $8,359 $10,217 $13,362 $697 $851 $1,114 $418

1 $10,924 $12,796 $15,940 $910 $1,066 $1,328 $546

2 $13,071 $14,925 $18,069 $1,089 $1,244 $1,506 $654

3 $15,200 $17,054 $20,198 $1,267 $1,421 $1,683 $760

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

AI D & 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

BASIC PENSION

PurposeHistoryCurrent Pension(PL 95-588)Pension EligibilityWartime PeriodsDisability Requirements

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BASIC PENSION CONT.

Income RequirementsNet Worth RequirementsComputation of Pension RateMedical ExpensesConditions of ReductionFile 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.

INCOME

Minus DED. Expenses (Less 5% MAPR)

= IVAP

MAPR

Minus 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) & - 3.351 3.3 - 3.352 3.12a 3.23 3.27 3.262 3.271 to 3.277 3.342

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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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