(VA Form 21-527EZ)
Randy Lingerfelt
Veterans Benefit Representative
Randy.lingerfelt@tn.gov
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2013 PENSION RATES
Veteran
Alone
1
2
3
Standard
$12,465
$16,324
$18,453
$20,582
Annual
HB
$15,233
$19,093
$21,222
$23,351
A & A
$20,795
$24,652
$26,781
$28,910
Standard
$1,038
$1,360
$1,538
$1,715
For each additional child add $2129.00
Monthly
HB
$1,269
$1,591
$1,769
$1,946
A & A
$1,733
$2,054
$2,232
$2,409
5%Medical
$623
$816
$922
$1,029
Widow
Alone
1
2
3
Annual
Standard
$8,359
$10,924
$13,071
HB
$10,217
$12,796
$14,925
A & A
$13,362
$15,940
$18,069
Standard
$697
$910
$1,089
$15,200 $17,054 $20,198 $1,267
38 CFR 3.272(j)(1) Child deduction Earned income = $10,000
Monthly
HB
$851
$1,066
$1,244
$1,421
Medical Expenses must exceed 5% to be deducted form Maximum Annual Pension Rate
A & A
$1,114
$1,328
$1,506
$1,683
$418
$546
$654
$760
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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 Purpose
 History
 Current Pension
 (PL 95-588)
 Pension Eligibility
 Wartime Periods
 Disability Requirements
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 Income Requirements
 Net Worth Requirements
 Computation of Pension Rate
 Medical Expenses
 Conditions of Reduction
 File on VA Form 21-527EZ
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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 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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 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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 Reduction because of hospitalization (38 CFR
3.551 (e)
 Adjustment of allowance for A&A (38 CFR
3.552)
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 Claiming Medical Expenses VA Form 21-8416
 Projected Medical Expenses
 Difference between recurring and Non-recurring medical expenses?
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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 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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 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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 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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