VA “shall pay to each veteran of a period of war who meets the service requirements of this section . . . and who is permanently and totally disabled from non-service-connected disability not the result of the veteran’s willful misconduct, pension at the rate prescribed by [statute].”   38 U.S.C. § 1521(a).  The maximum annual rates for improved pension must be reduced by the amount of the veteran’s countable annual income.  38 U.S.C. § 1521; 38 C.F.R. § 3.23(b); Springer v. West, 11 Vet. App. 38, 40 (1998).  “Payments of any kind from any source shall be counted as income during the 12-month annualization period in which received unless specifically excluded under [section] 3.272.”  38 C.F.R. § 3.271(a); 38 U.S.C. § 1503; see Martin v. Brown, 7 Vet. App. 196, 199 (1994) (stating “statute and VA regulations provide that ‘annual income,’ as defined by statute and applicable regulation, includes payments of any kind from any source, unless explicitly exempted by statute or regulation”); but see 38 C.F.R. § 3.272 (enumerating categories to “be excluded from countable income for the purpose of determining entitlement to improved pension”).

Certain countable income is specifically excluded from this rule and as a result, a veteran’s pension will not be reduced.  38 C.F.R. § 3.272.  Social Security Administration (SSA) old age and survivor’s insurance and disability insurance payments are considered income and must, therefore, be included.  38 C.F.R. §§ 3.262; 3.271(g); Burch v. Brown, 6 Vet. App. 512, 513 (1994).  Benefits under noncontributory programs, such as old age assistance, aid to dependent children, and supplemental security income are treated as charitable donations.  See 38 C.F.R. §§ 3.262(d), (f).  Unreimbursed medical expenses paid within the 12-month annualization period are excluded from income to the extent that they are in excess of 5% of the maximum annual pension rate.  38 C.F.R. § 3.272(g)(1)(iii).  Whether a claimant is entitled to VA pension benefits is a question of fact.

Pursuant to 38 U.S.C. § 1505, pension benefits administered by the Secretary shall not be paid to or for an individual who has been imprisoned in a Federal, State, or local penal institution as a result of conviction of a felony or misdemeanor for any part of the period beginning 61 days after such individual’s imprisonment begins and ending when such individual’s imprisonment ends.  38 U.S.C. § 1505(a); 38 C.F.R. § 3.666; see also Latham v. Brown, 4 Vet. App. 265 (1993).

VA Non-Service Connected Pension or Wartime Pension

Many people confuse VA Pension with VA disability compensation. The two are different.

  • VA pension is based on wartime service, having a non-service connected disability and the Veteran must be of low income.
  • VA disability compensation is based on a service connected disability rating for the Veteran. The focus of this article is to provide the facts on the VA Pension since recently there has been misleading TV and internet advertisements promoting Veteran’s and Spouses to apply for the Pension.

Over the years the VA improved pension has been known as a Non-service connected Pension, a VA low-income Pension, live VA pension and most recently on TV and the internet advertised as a VA Wartime Pension for Veterans or Surviving Widows of Wartime Veterans.   The current improved pension became effective January 1, 1979 and was preceded by Section 306 Pension and Old-Law Pension Program.   All three non-service connected programs are disability and needs based. Today, the only available program for applicants is the improved pension program or non-service connected pension.

Eligibility for Non-Service Connected Pension

The improved pension program is for Veterans who served during wartime and meet specific requirements. It is for the requirement reason that TV advertisements refer to this pension as a wartime pension. The following program qualifying requirements must apply for the Veteran to receive this pension:

The Veteran must have an have a discharge “under other than dishonorable conditions” also known as a “honorable discharge”,

  1. actively served a minimum of one day during wartime,
  2. meet specific service time requirements,
    1. 90 days or more of active duty
    2. Veterans with active duty enlistment after September 7, 1980 must serve at least 24 months of active duty or complete the full period for which they were called to active duty.
  3. be of limited income (determined by the Maximum Annual Pension Rate or MARP) and net-worth, which are discussed later in this article and
  4. the Veteran must have one or more of the following :
    1. age 65 or older, or
    2. have a permanent and total non-service connected disability that will continue throughout the Veteran’s lifetime and prevents the Veteran from sustaining employment, or
    3. be a reside in a nursing home for long-term care , or
    4. be a recipient of Social Security disability benefits.

Maximum Annual Pension Rate for VA NSC Pension

Date of Cost-of-Living Increase: 12-01-2017
Increase Factor:  2.0%
Standard Medicare Deduction: Actual amount will be determined by SSA based on individual income.

Maximum Annual Pension Rate (MAPR) Category

Amount

If you are a veteran… Your yearly income must be less than…
Without Spouse or Child $13,166
To be deducted, medical expenses must exceed 5% of MAPR,  or,  $ 659
With One Dependent $17,241
To be deducted, medical expenses must exceed 5% of MAPR,  or,  $ 863
Housebound Without Dependents $16,089
Housebound With One Dependent $20,166
A&A Without Dependents $21,962
A&A With One Dependent $26,036
Two Vets Married to Each Other $17,241
Two Vets Married to Each Other One H/B $20,166
Two Vets Married to Each Other Both H/B $23,087
Two Vets Married to Each Other One A/A $26,036
Two Vets Married to Each Other One A/A One H/B $28,953
Two Vets Married to Each Other Both A/A $34,837
Add for Early War Veteran (Mexican Border Period or WW1) to any category above $2,991
Add for Each Additional Child to any category above $2,250
Child Earned Income Exclusion effective: 01-01-2000 $7,200
(38 CFR §3.272 (j)(1))
This link takes you to the full regulation;
scroll down to get the specific citation.
01-01-2001 $7,450
01-01-2002 $7,700
01-01-2003 $7,800
01-01-2004 $7,950
01-01-2005 $8,200
01-01-2006 $8,450
01-01-2007 $8,750
01-01-2008 $8,950
01-01-2009 $9,350
01-01-2012 $9,750
01-01-2013 $10,000
01-01-2014 $10,150
01-01-2015 $10,300
01-01-2016 $10,350
01-01-2017 $10,400
01-01-2018 $10,650

*Child dependents are: (1) under the age of 18, (2) between the ages of 18 and 23 who are attending college, or (3) declared a “helpless child” due to an infirmity before the age of 18. Veterans with additional dependent children should add $2,205 to the MAPR limit for each child.

For A Complete Guide To VA Disability Claims and to find out more about your potential VA disability case and how to obtain favorable VA Rating Decision! Visit: VA-Claims.org

For Cases & Decisions that Could Save Your VA Service-Connected Claims! Visit: VAClaims.org ~ A Non-Profit Non Governmental Agency

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