SERVICE OFFICER TRAINING

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• SERVICE OFFICER TRAINING
• SEPTEMBER 20-22, 2006
  
• NON-SERVICE CONNECTED PENSION
• DON SMITH - INSTRUCTOR

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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
• ANNUAL REPORTING (EVRS)
• UNDERSTANDING RATE CHART

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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 VAs pension has evolved into what is now
  know as improved pension to provide 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
• -FIXED MONTHLY AMOUNT (DOES NOT HAVE
  COST OF LIVING INCREASE)
• -CAN ELECT TO CONVERT TO IMPROVED PENSION
  (CONVERSION IN 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 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

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DISABILITY REQUIREMENTS

• Must be permanently and totally disabled (PT)
  (38 CFR 4.17)
• Exceptional cases allowed? (38 CFR 3.321 (b) (2)
• PL 107-103, Sec. 206 207 Authority for
  statutory presumption of PT for pension at age
  65. Effective 12/27/2001.
• Plus PT for veterans who are either a patient
  in a N/H getting long term care or Social
  Security disability.

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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

• Welfare
• Maintenance
• Sale of Property
• Medical expenses
• Education expenses

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NET WORTH38 CFR 3.274

• Relationship of Net Worth to Pension
• reasonable that some part of the corpus of
  such estate be consumed for the veterans
  maintenance
• Evaluating Net Worth 38 CFR 3.275
• Whether property can be readily converted into
  cash at no substantial sacrifice
• 
  
• Life expectancy of claimant

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COMPUTATION OF INCOME

• Income work sheet (PL 95-588)
• 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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DEDUCTIONS Unreimbursed Medical
Expenses(M21-1, Pt. IV, Ch. 16)

• 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 AA 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 AA 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 AA or HB Full cost of
  Assisted Living is deductible as long as the
  facility provides some medical or nursing
  services
• - Disabled Person NOT AA 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 AA or by being housebound
  (H/B). 38 CFR 3.351 and 3.352.
• Describe AA
• Describe H/B

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ANNUAL REPORTING

• 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

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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 annual EVR and 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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CONDITIONS OF REDUCTION

• Reduction because of
• hospitalization (38
• CFR 3.551 (e))
• Adjustment of
• allowance for AA
• (38 CFR 3.552)

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APPROPRIATEREFERENCE MATERIALS

• 38 CFR M21-1
• - 3.1 (d), (e) (f) - Part III
• (l) - 5.19 to 5.26
• - 3.3 - 6.01 to 6.10
• - 3.12a - 6.16 to 6.22
• - 3.23 - Chapter 7
• - 3.27 - 9.01 to 9.02
• - 3.271 to 3.277 - M21-1, MR,
• - 3.342 PT III, Sub PT ii
• - 3.351 - M21-1, PT IV
• - 3.352 - 11.01 to 11.05
• - 12.01 to 12.11
• - 12.15 to 12.19
• - Chapter 16
• - Addenda AB