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M21-1, Part III, Subpart iii, Chapter 3, Section B – Social Security Administration (SSA) Requests for Information From Department of Veterans Affairs (VA)

Overview


In This Section

 
This section contains the following topics:
Topic
Topic Name
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1.  Handling SSA Requests for Medical Evidence


Introduction

  This topic contains information relevant to the handling of SSA requests for medical evidence, including


Change Date

June 14, 2015

III.iii.3.B.1.a.  Requirements of 38 U.S.C. 5105

 
38 U.S.C. 5105 requires that evidence a claimant files with either the Social Security Administration (SSA) or the Department of Veterans Affairs (VA) must be made available to the other agency if needed.
Notes:
  • A claimant is not precluded from submitting a duplicate set of records/evidence to one or the other agency.
  • VA does not charge for copies of records/evidence it provides to SSA.
Reference:  For more information about the sharing of evidence between SSA and VA, see 38 CFR 3.201.

III.iii.3.B.1.b.  Where SSA Sends Requests for Medical Evidence in VA’s Possession

 
SSA sends requests for medical evidence in VA’s possession to the VA regional office (RO) of jurisdiction.  These may include requests for medical evidence concerning the status of a child that is incapable of self-support.
Exception:  SSA sends requests for hospital reports on Veterans who are currently hospitalized, or who have been discharged within the last 30 days, directly to the VA medical center (VAMC) involved.

III.iii.3.B.1.c.  Contents of an SSA Request for Medical Evidence

 
An SSA request for medical evidence consists of Form SSA-827Authorization to Disclose Information to the Social Security Administration (SSA), and a cover letter.  The form should contain
  • the full name and Social Security number (SSN) of the individual who is the subject of the request
  • a description of the evidence SSA is requesting, and
  • the address of the SSA office that submitted the request.

III.iii.3.B.1.d.  Statutory Requirement to Maintain the Confidentiality of Certain Medical Records

 
38 U.S.C. 7332 requires VA to maintain the confidentiality of medical records it possesses in connection with the performance of any program or activity if the medical records
  • identify the patient, and
  • contain a diagnosis, prognosis, or discussion of treatment involving
    • drug abuse
    • alcoholism or alcohol abuse
    • infection with the human immunodeficiency virus (HIV) or acquired immune deficiency syndrome (AIDS), or
    • sickle cell anemia.
Note:  The “program or activity” referenced in the above paragraph specifically includes
  • education
  • training
  • treatment
  • rehabilitation, and
  • research.

III.iii.3.B.1.e.  Releasing Medical Records to SSA That Are Confidential

 
If medical records SSA requests are “confidential,” according to M21-1, Part III, Subpart iii, 3.B.1.d, release them to SSA only if Form SSA-827 bears the signature of
  • the individual named on the form (or his/her representative), and
  • a witness (or two witnesses if the individual signed the form with an “X”).
Reference:  For more information on the handling of records pertaining to the treatment of HIV or AIDS, alcohol abuse, drug abuse, or sickle cell anemia, seeM21-1, Part III, Subpart ii, 4.A.6.

III.iii.3.B.1.f.  Steps to Follow When Providing Medical Evidence to SSA

 
Follow the steps in the table below when providing medical evidence to SSA.
Step
Action
1
Annotate the cover letter that accompanied Form SSA-827 to show which records VA is providing.
2
Send the records SSA requested, along with a photocopy of the cover letter, to the SSA office that requested them.
3
File the original cover letter and Form SSA-827 in the corresponding claims folder.
Note:  If the claims folder is entirely paperless, upload the documents into the corresponding electronic claims folder (eFolder).
4
Clear end product (EP) 400 (for work credit).

III.iii.3.B.1.g.  Responding to Follow-Up Requests From SSA for Completion of Form SSA-827

 
Use the table below to determine actions to take upon receipt of a follow-up request from SSA for completion of Form SSA-827.
Note:  Follow-up requests from SSA consist of
  • a photocopy of the original Form SSA-827, and
  • a cover letter with an annotation that reads Second Request.
If the RO …
Then …
already sent a response to the SSA office that submitted the follow-up request
  • annotate the cover letter with the statement VA reply forwarded [insert date]
  • return a photocopy of the cover letter to the SSA office that submitted the follow-up request
  • file the original version of the cover letter in the corresponding claims folder (or eFolder, if the claims folder is entirely paperless), and
  • dispose of the duplicate copy of Form SSA-827 in accordance with RCS VB-1, Part I, Item number 13-052.200.
is awaiting the collection of evidence that SSA requested
  • annotate the cover letter with
    • a statement indicating the RO can take no further action on the request pending collection of the evidence SSA requested, and
    • an explanation of the reason for the delay in providing the evidence
  • return a photocopy of the cover letter to the SSA office that submitted the follow-up request
  • file the original version of the cover letter in the corresponding claims folder (or eFolder, if the claims folder is entirely paperless), and
  • dispose of the duplicate copy of Form SSA-827 in accordance with RCS VB-1, Part I, Item number 13-052.200.
referred the initial request for evidence to a VAMC
  • annotate the cover letter with a statement that identifies the VAMC to which the RO referred the request, and
  • return both the cover letter and theForm SSA-827 to the SSA office that submitted the follow-up request.

2.  Unique Circumstances ROs Might Face When Processing Form SSA-827


Introduction

This topic discusses unique circumstances ROs might face when processing Form SSA-827, including

Change Date

June 14, 2015

III.iii.3.B.2.a.  Misdirected SSA Requests for Hospital Reports

 
Follow the steps in the table below if
  • the Veteran SSA identifies on Form SSA-827 has been discharged from a VAMC more than 30 days following a recent period of hospitalization, and
  • the corresponding hospital report does not exist in his/her claims folder or eFolder.
Step
Action
1
Make a photocopy of the cover letter that accompanied Form SSA-827.
2
Annotate the photocopy with a statement that
  • acknowledges receipt of Form SSA-827
  • identifies the VAMC with possession of the hospital report, and
  • notifies SSA that the form has been referred to that VAMC for a reply.
3
Return the photocopy of the cover letter to the SSA office that requested the medical evidence.
4
Forward Form SSA-827 and the original cover letter to the appropriate VAMC.

III.iii.3.B.2.b.  Veterans Who Have an Insurance Folder Only

 
Follow the steps in the table below if the subject of an SSA request for medical evidence has an insurance folder only.
Step
Action
1
Make a photocopy of the cover letter that accompanied Form SSA-827.
2
Annotate the photocopy with a statement that
  • acknowledges receipt of Form SSA-827, and
  • notifies SSA that the form has been referred to the VA Insurance Center in Philadelphia for a reply.
3
Return the photocopy of the cover letter to the SSA office that requested the medical evidence.
4
Forward Form SSA-827 and the original cover letter to the VA Insurance Center.

III.iii.3.B.2.c.  Veterans With Claims Folders That Are Unavailable

 
Use the table below to determine the actions an RO must take when it receives a request for medical evidence from SSA but the corresponding claims folder is unavailable.
If the claims folder is …
Then the RO must …
located at another RO
  • annotate the cover letter that accompaniedForm SSA-827 with the name and location of the RO that has custody of the claims folder, and
  • return the cover letter and Form SSA-827to the SSA office that sent it.
on temporary transfer to VA Central Office
send the Form SSA-827 and cover letter that accompanied it to the service within VA Central Office that has possession of the folder.
Note:  The service having possession of the folder is responsible for processing the request.
on temporary transfer to the Board of Veterans Appeals
send the Form SSA-827 and cover letter that accompanied it to the Director of Compensation Service (211B) for processing.

III.iii.3.B.2.d.  Claims Folders That Contain Only a VA Form 10-7131

 
Follow the steps in the table below if only a VA Form 10-7131, Exchange of Beneficiary Information and Request for Administrative and Adjudicative Action, relating to the disability and date of onset referenced on Form SSA-827, is in the claims folder.
Step
Action
1
Make a photocopy of the cover letter that accompanied Form SSA-827.
2
Annotate the photocopy with the statement VA Form 10-7131 only on file.
3
Return the photocopy of the cover letter to the SSA office that submitted the Form SSA-827.
4
forward the original cover letter and Form SSA-827 for processing to the hospital or clinic that executed the VA Form 10-7131.

III.iii.3.B.2.e.  Actions to Take if Medical Evidence Is in the Custody of an RO and a VAMC

 
Follow the steps in the table below if
  • SSA requests both a hospital report and a physical examination report from an RO
  • the RO possesses only the physical examination report, and
  • the VAMC possesses the hospital report.
Step
Action
1
Make a photocopy of the cover letter that accompanied Form SSA-827.
2
Annotate the photocopy with a statement that
  • acknowledges receipt of the form, and
  • explains that the form has been referred to the VAMC that possesses the hospital report.
3
Return the photocopy of the cover letter to the SSA office that submitted the Form SSA-827.
4
Forward the Form SSA-827, original cover letter, and a copy of the physical examination report SSA requested to the appropriate VAMC.
Note:  The VAMC is responsible for
  • attaching the hospital report to the documents the RO provided, and
  • returning all of the documents to the SSA office that requested the medical evidence.

3.  General Information About SSA Requests for the Amount of VA Benefits an SSI Claimant Receives


Introduction

 
This topic contains general information about SSA requests for the amount of VA benefits an SSI claimant receives, including

Change Date

June 14, 2015

III.iii.3.B.3.a.  Why SSA Requires Information About VA Benefits

 
In administering the Supplemental Security Income (SSI) program, SSA field offices are charged with identifying all of an SSI claimant’s resources, including “income” in the form of monetary benefits from VA (hereafter referred to as “VA income for SSA purposes”).

III.iii.3.B.3.b.  SSA/VA Data Exchange System and SSA’s Use of SSA Form L1103

 
The SSA/VA data exchange system is programmed to provide SSA with
  • the amount of monetary benefits VA pays to an individual beneficiary for him/herself, and
  • the amount of additional monetary benefits VA pays the beneficiary for each of his/her dependents.
In some instances, the system is unable to determine the amounts referenced in the above paragraph.  When this occurs, SSA asks VA to provide a breakdown onSSA Form L1103SSI Request for Information, of the benefits VA paid to or for an SSI claimant during a specific time period.  SSA identifies the SSI claimant by entering his/her name in Part I of the form.
Use the table below for the location on SSA Form L1103 where SSA expects VA to enter an SSI claimant’s VA income for SSA purposes.
If the SSI claimant is …
Then …
a Veteran or surviving spouse
enter the Veteran’s or surviving spouse’s VA income for SSA purposes in Part II, Section C, of SSA Form L1103.
a Veteran’s spouse, child, or parent
enter the spouse’s, child’s, or parent’s VA income for SSA purposes in Part II, Section D, of SSA Form L1103.

III.iii.3.B.3.c.  Types of Benefits SSA Recognizes as VA Income

 
SSA recognizes the disability or death benefits VA pays to an SSI claimant as income for SSA purposes.  SSA also recognizes the following benefits that VA pays as income for SSA purposes:
  • Naval pension
  • benefits under the Restored Entitlement Program for Survivors (REPS), and
  • benefits under 38 U.S.C. 1312(a).
The table below describes relevant information about the latter three benefits.
Type of Benefit
Information Relevant to the Calculation of VA Income for SSA Purposes
Naval pension
An important difference between Naval pension and VA disability and death benefits is that recipients of disability or death benefits may establish entitlement to additionalbenefits for their dependents.
As explained in M21-1, Part III, Subpart iii, 3.B.5.a, the additional benefits VA pays for dependents are notcountable as VA income for SSA purposes. Therefore, the entire amount of Naval pension that remains, after applying the provisions of M21-1, Part III, Subpart iii, 3.B.4, is considered VA income for SSA purposes.
benefits VA pays under REPS or 38 U.S.C. 1312(a)
Benefits under REPS or 38 U.S.C. 1312(a) are payable to eligible dependents of certain deceased Veterans. If a Veteran had multiple dependents, and they are all entitled to one of these benefits, VA does not pay the benefit to all the dependents in a combined award. Rather, it pays benefits in separate awards to each entitled dependent. Therefore, the entire amount of benefits that remains, after applying the provisions of M21-1, Part III, Subpart iii, 3.B.4, is considered VA income for SSA purposes.
References:  For more information about

III.iii.3.B.3.d.  Types of Benefits SSA Does Not Recognize as VA Income

 
SSA does not recognize VA educational benefits or Medal of Honor Pension as income for the purpose of determining a claimant’s entitlement to SSI.  Nevertheless, SSA wants to know if an SSI claimant received either of these benefits during the time period SSA specifies in Part I of SSA Form L1103.
Use the table below if the corporate record shows an SSI claimant received educational benefits or Medal of Honor Pension during the time period SSA specified.
If an SSI claimant received …
Then …
educational benefits during the time period SSA specified
check the box labeled Educational Benefits in Part II, Section A, of SSA Form L1103.
Medal of Honor Pension during the time period SSA specified
hand-write Medal of Honor Pensionalong the bottom of Part II, Section A, along with the amount of Medal of Honor Pension the beneficiary received each month during the same time period.
Important:  If a Veteran is entitled to both Medal of Honor Pension and disability compensation or pension, VA pays both benefits to the Veteran in a single award. Regardless of whether a Veteran received this benefit by itself or in combination with his/her disability compensation or pension, exclude it when calculating the Veteran’s VA income for SSA purposes.
Reference:  For more information about Medal of Honor Pension, see M21-1, Part IX, Subpart ii, 3.

III.iii.3.B.3.e.  Recurring Versus Non-Recurring Benefit Payments

 
A response to an SSA inquiry on SSA Form L1103 typically requires consideration of recurring benefit payments only.
Notes:
  • Use the information in M21-1, Part IX, Subpart ii, 1.C.1 to reply to SSA requests for information concerning benefits VA paid under 38 U.S.C. 1312(a).
  • When completing Part II of SSA Form L1103, report the amount of benefits VA paid the SSI claimant each month during the time period SSA specified in Part I of the form.  This amount might be different than the amount VA currently pays.
  • SSA is specifically interested in
    • payment receipt dates, not effective dates, and
    • the distinction between recurring and non-recurring (retroactive) benefit payments.

III.iii.3.B.3.f.  Determining the Date and Amount of Non-Recurring Benefit Payments

 
Perform a payment inquiry through the Share application to determine the date and amount of any non-recurring benefit payment VA made if, during the time period SSA specified in Part I of SSA Form L1103, VA authorized
  • an amended award that increased benefits retroactively, or
  • an award based on an initial or supplemental claim.
Note:  Non-recurring, one-time payments appear as type CP-ONE-T on the PAYMENT HISTORY INQUIRY screen.
Reference:  For more information about using Share for payment inquiries, see theShare User Guide.

III.iii.3.B.3.g.  Handling SSA Requests for Payment Information on Multiple SSI Claimants

 
SSA may simultaneously request payment information on multiple SSI claimants, listing in Part I of SSA Form L1103 the names of claimants for whom it is requesting information.
VA must provide the requested information for each SSI claimant SSA lists on the form.  If the response will not fit in the space provided on SSA Form L1103, attach a continuation sheet and transfer the following identification information from the top of SSA Form L1103 to the top of the continuation sheet:
  • the name of the claimant, and
  • the claimant’s SSN.

III.iii.3.B.3.h.  Handling SSA Inquiries Involving Nursing Home Patients

 
If SSA indicates on SSA Form L1103 that an SSI claimant is a nursing home patient, and the claimant receives current-law pension in excess of $90.00 per month, determine whether reduction under 38 U.S.C. 5503(f) is in order.
RO management must ensure other divisions that process SSA Form L1103 are aware they must refer the form to the Veterans Service Center or pension management center when the circumstances described in the above paragraph exist.

III.iii.3.B.3.i.  Calculations That Result in a Negative Amount of VA Income for SSA Purposes

 
If any of the calculations described in this section result in a negative amount of VA income for SSA purposes, consider the income to be $0.00.

III.iii.3.B.3.j.  Work Credit for Responding to SSA

  Each time an RO completes and returns SSA Form L1103 to SSA, the RO should clear EP 290 for proper work credit, using the claim label SSA Request for VA Benefit Information.

4.  Considering Offsets, Deductions, and Withholdings When Calculating VA Income for SSA Purposes


Introduction

  This topic contains instructions for considering offsets, deductions, and withholdings when calculating VA income for SSA purposes, including


Change Date

June 14, 2015

III.iii.3.B.4.a.  Determining Whether an Offset, Deduction, or Withholding Exists

 
When calculating an SSI claimant’s VA income for SSA purposes, always perform a corporate inquiry in Share and check the AWARD INFORMATION tab to determine whether, during the time period SSA specified in Part I of SSA Form L1103,
  • an offset existed against the SSI claimant’s VA benefits, or
  • VA deducted or withheld benefits from the SSI claimant’s award.
References:  For more information about

III.iii.3.B.4.b.  Offsets, Deductions, and Withholdings That Must Not Be Included in Calculations of VA Income for SSA Purposes

 
If VA offset, deducted, or withheld benefits during the time period SSA specified in Part I of SSA Form L1103 for any of the following reasons, do not include in the calculation of VA income for SSA purposes the amount of benefits VA offset, withheld, or deducted for that reason:
  • 38 U.S.C. Chapter 31 revolving fund loan
  • trainee tools
  • recoupment of disability severance pay
  • recoupment of separation pay
  • military retired pay adjustment
  • drill pay adjustment
  • Radiation Exposure Compensation Act (RECA) adjustment
  • pending appointment of a fiduciary
  • pending confirmation of spouse as fiduciary
  • pending confirmation of continued eligibility
  • pending apportionment decision
  • recoupment of tort settlement
  • workers compensation adjustment
  • hospitalized basic pension adjustment
  • hospitalized Special Monthly Compensation (SMC) adjustment, or
  • incarceration adjustment.

III.iii.3.B.4.c.  Offsets, Deductions, and Withholdings That Must Be Included in Calculations of VA Income for SSA Purposes

 
If VA offset, deducted, or withheld benefits during the time period SSA specified in Part I of SSA Form L1103 for any reason other than those listed in M21-1, Part III, Subpart iii, 3.B.4.binclude in the calculation of VA income for SSA purposes the amount of benefits VA offset, withheld, or deducted each month for that reason.  The most common of these reasons are
  • compensation or pension receivable (receivable code 30B), and
  • attorney fees (receivable code 31B or deduction code 31J).
Important:  If VA withheld benefits to recoup a compensation or pension receivable during the time period SSA specified, request from finance activity the information required to complete the fields in Part II, Section G, of SSA Form L1103.

5.  Considering the Additional Benefits VA Pays for Dependents and Benefits VA Pays to Apportionees


Introduction

 
This topic discusses how to treat the additional benefits VA pays to beneficiaries for their dependents and benefits VA pays to apportionees when calculating VA income for SSA purposes, including

Change Date

June 14, 2015

III.iii.3.B.5.a.  Exclusions From the Calculation of VA Income for SSA Purposes

 
When calculating VA income for SSA purposes for a Veteran or surviving spouse, exclude as income the amount of additional benefits VA pays the beneficiary for his/her dependent(s).
Exceptions:
  • Do not exclude from the calculation of VA income for SSA purposes the “two-year transitional benefit” VA pays for children under the age of 18 to certain surviving spouses that are entitled to Dependency and Indemnity Compensation (DIC).
  • If VA apportioned benefits to the dependent of a Veteran or surviving spouse during the time period SSA specified in Part I of SSA Form L1103, exclude the amount of the apportionment (instead of the amount of additional benefits VA paid for the dependent) when calculating the Veteran’s or surviving spouse’s VA income for SSA purposes.
Important:  If the amount of an apportionment to a dependent is less than the amount of additional benefits VA paid the Veteran or surviving spouse for the dependent, the difference between the two amounts must be included in the calculation of the Veteran’s or surviving spouse’s VA income for SSA purposes.
References:  For more information about the two-year transitional benefit VA pays to certain surviving spouses that are entitled to DIC, see

III.iii.3.B.5.b.  Completing Part II, Section D, of SSA Form L1103

 
Follow the steps in the table below if
  • a Veteran or surviving spouse is entitled to additional benefits for a dependent, and
  • SSA identifies the dependent as an SSI claimant.
Note:  The instructions in this block are based on an assumption that VA did not offset, withhold, or deduct benefits for any of the reasons described in M21-1, Part III, Subpart iii, 3.B.4 during the time period SSA specified in Part I of SSA Form L1103.
Step
Action
1
Did VA apportion benefits to the dependent during the time period SSA specified in Part I of SSA Form L1103?
  • If yes, proceed to Step 3.
  • If no, proceed to the next step.
2
  • Enter in Part II, Section D, of SSA Form L1103
    • the dependent’s name, and
    • the amount of additional benefits to which the Veteran or surviving spouse was entitled for the dependent.
  • Proceed no further.
Important:  To determine the amount of additional benefits to which a Veteran or surviving spouse is entitled for his/her dependent(s), when the benefit is
3
Was the dependent one of multiple dependents to whom VA apportioned benefits in a combined award?
  • If yes, proceed to Step 5.
  • If no, proceed to the next step.
4
  • Enter in Part II, Section D, of SSA Form L1103
    • the dependent’s name, and
    • the amount of the apportionment.
  • Proceed no further.
5
Was a spouse included in the apportionment?
  • If yes, proceed to the next step.
  • If no, proceed to Step 11.
6
Were multiple children included in the apportionment?
  • If yes, proceed to Step 9.
  • If no, proceed to the next step.
7
Review the apportionment decision to determine the amount of benefits VA apportioned to each dependent.
8
Follow the instructions in the table below.
If the apportionment decision…
Then …
specifies the amount of benefits VA apportioned to each dependent
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of benefits VA apportioned to that dependent, and
  • proceed no further.
does notspecify the amount of benefits VA apportioned to each dependent
  • divide the amount of the apportionment evenly between the two dependents
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that dependent, and
  • proceed no further.
Note:  If the apportionment does not divide evenly, add the extra pennies to the amount of the apportionment that is attributed to the spouse.
9
Review the apportionment decision to determine the amount of benefits VA apportioned to each dependent.
10
Follow the instructions in the table below.
If the apportionment decision…
Then …
specifies the amount of benefits VA apportioned to each dependent
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of benefits VA apportioned to that dependent, and
  • proceed no further.
specifies the amount of benefits VA apportioned to the spouse but does not specify the amount it apportioned to each child
  • divide the amount of benefits VA apportioned to or for thechildren by the number of children that received the apportionment
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that dependent, and
  • proceed no further.
Note:  If the amount of the apportionment does not divide evenly among the children, add the extra pennies to the amount of the apportionment that is attributed to the youngest child.
does not specify the amount of benefits VA apportioned to either the spouse or the children
  • divide the amount of the apportionment evenly among all of the dependents
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that dependent, and
  • proceed no further.
Note:  If the apportionment does not divide evenly, add the extra pennies to the amount of the apportionment that is attributed to the spouse.
11
Review the apportionment decision to determine the amount of benefits VA apportioned to each dependent.
12
Follow the instructions in the table below.
If the apportionment decision…
Then …
specifies the amount of benefits VA apportioned to each child
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the child SSA identified as an SSI claimant, and
    • the amount of benefits VA apportioned to that child, and
  • proceed no further.
does notspecify the amount of benefits VA apportioned to each child
  • divide the amount of the apportionment evenly among the children
  • enter in Part II, Section D, of SSA Form L1103,
    • the name of the child SSA identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that child, and
  • proceed no further.
Note:  If the apportionment does not divide evenly, add the extra pennies to the amount of the apportionment that is attributed to the youngest child.
Important:
  • When completing Part II, Section D, of SSA Form L1103, insert apportionee before the name of any dependent that was receiving an apportionment during the time period SSA specified.
  • Completion of Part II, Section E, of SSA Form L1103 is necessary if the award of an apportionment during the time period SSA specified in Part I of SSA Form L1103resulted in a retroactive apportionment of benefits to the dependent SSA identified as an SSI claimant.
  • Completion of Part II, Section G, of SSA Form L1103 is necessary if VA deducted or withheld benefits from an SSI claimant’s award, during the time period SSA specified, to recoup a compensation or pension receivable, as described in M21-1, Part III, Subpart iii, 3.B.4.c.

6.  Excluding Additional Benefits VA Pays in the Form of SMC or Because an Individual Is Housebound or Requires A&A


Change Date

June 14, 2015

III.iii.3.B.6.a.  Excluding Additional Benefits VA Pays in the Form of SMC or Because an Individual Is Housebound or Requires A&A

 
When calculating the VA income of a Veteran, surviving spouse, parent, or dependent, exclude any additional benefits VA paid
  • in the form of SMC, or
  • because an individual is housebound or requires the aid and attendance (A&A) of another person.
Examples:  The table below describes examples of the application of the principles described in this block.  When results are provided in these examples, they are based on an assumption that VA did not offset, withhold, or deduct benefits for any of the reasons described in M21-1, Part III, Subpart iii, 3.B.4 during the time period SSA specified in Part I of SSA Form L1103.
Scenario
Action
  • VA has rated a Veteran 50-percent disabled due to service-connected (SC) disabilities.
  • The Veteran has no dependents and is entitled to SMC under 38 U.S.C. 1114(k)for loss of use of a hand.
  • VA pays the Veteran a monthly benefit of $910.00, based on compensation rates in effect on December 1, 2012.
Exclude the additional $100.00 the Veteran receives for loss of use of a hand when calculating his/her VA income for SSA purposes.
  • VA has rated a Veteran 30- percent disabled due to SC disabilities.
  • The Veteran’s only dependent is his spouse.
  • VA has determined the Veteran’s spouse is so disabled that she requires A&A.
  • VA pays the Veteran a monthly benefit of $485.00, based on compensation rates in effect on December 1, 2012.
When calculating the Veteran’s VA income for SSA purposes, exclude
  • the additional $47.00 VA pays for the spouse, and
  • the additional $43.00 VA pays because the spouse requires A&A.
When calculating the spouse’s VA income for SSA purposes, exclude the $43.00 VA pays because the spouse requires A&A. The spouse’s VA income in this scenario would be $47.00
Same scenario as the one described in the row above, except VA is apportioning $75.00 of the Veteran’s award to his spouse.
Reference:  For more information about the calculation of VA income for SSA purposes when VA is apportioning benefits, see M21-1, Part III, Subpart iii, 3.B.5.
When calculating the Veteran’s VA income for SSA purposes, exclude
  • the additional $43.00 VA pays because the spouse requires A&A, and
  • the $75.00 VA apportions to the spouse.
Note:  The spouse’s VA income in this scenario would be $75.00.
  • VA pays Section 306 Pension to a Veteran for himself and his spouse in the amount of $110.22 per month. ($110.22 represents the amount of benefits VA was paying the Veteran on December 31, 1978, when VA stopped awarding entitlement to Section 306 Pension. It also reflects the Veteran’s need for A&A on that date.)
  • But for the increased income limit for a Veteran in need of A&A, the Veteran would nothave been entitled to Section 306 Pension on December 31, 1978.
Do not consider any portion of the $110.22 as VA income for SSA purposes for either the Veteran or his spouse.
Reference:  For more information about calculating VA income for SSA purposes when VA is paying Section 306 Pension, see M21-1, Part III, Subpart iii, 3.B.9.
Reference:  For more information about the effect that a finding of entitlement to additional benefits for being housebound or in need of A&A has on the calculation of VA income for SSA purposes, see

7.  Excluding UMEs When Calculating VA Income for SSA Purposes


Introduction

 
This topic contains information about the exclusion of additional benefits that VA pays for UMEs when calculating VA income for SSA purposes, including

Change Date

June 14, 2015

III.iii.3.B.7.a.  Calculating VA Income for SSA Purposes When VA Pays Additional Benefits for UMEs

 
The additional pension or Parent’s DIC that VA pays to a beneficiary because he/she incurred unreimbursed medical expenses (UMEs) is not countable as VA income for SSA purposes.
Example:
Scenario:
  • VA pays current-law pension to a Veteran with no dependents in the amount of $200.00 per month.
  • The provisions of M21-1, Part III, Subpart iii, 3.B.4 do not affect the calculation of VA income for SSA purposes in this scenario.
  • But for UMEs the Veteran reported to VA, her monthly benefit would be limited to $150.00
Result:  The Veteran’s VA income for SSA purposes is $150.00 per month.
Note:  The submission of UMEs by beneficiaries in receipt of Section 306 or Old Law Pension does not increase the amount of benefits VA currently pays these beneficiaries.  However, for the purpose of reducing income for VA purposes (IVAP) for a specified period of time, VA does consider UMEs that a beneficiary in receipt of Section 306 Pension submits.  (UMEs are not a factor in calculating IVAP when the benefit is Old Law Pension.)
Reference:  For more information about UMEs, see

III.iii.3.B.7.b.  Completing Part II, Section F, of SSA Form L1103

 
Enter in Part II, Section F, of SSA Form L1103 the amount of additional monthly benefits VA paid a beneficiary because of UMEs only if SSA entered a date in the opening sentence of Section F.
Example:  In the scenario described in M21-1, Part III, Subpart iii, 3.B.7.a, the amount of additional monthly benefits VA paid because of UMEs is $50.00.
Important:  If a beneficiary has one or more dependents, do not attempt to
  • divide up the UMEs equally between the beneficiary and his/her dependent(s), or
  • attribute specific UMEs to the beneficiary and/or a specific dependent or dependents.

8.  Calculating VA Income for SSA Purposes When the Benefit Is Old Law Pension


Introduction

 
This topic contains information on calculating VA income for SSA purposes when the benefit is Old Law Pension, including

Change Date

June 14, 2015

III.iii.3.B.8.a.  Effect of Dependents on a Beneficiary’s Entitlement to Old Law Pension

 
Although the addition of a dependent does not increase the rate of Old Law Pension a beneficiary receives, the existence or absence of dependents doesaffect the income limit the beneficiary must meet in order to remain entitled to this benefit.
Reference:  For more information about Old Law Pension, see M21-1, Part V, Subpart i, 1.3.

III.iii.3.B.8.b.  Calculating VA Income for SSA Purposes When the Benefit Is Old Law Disability Pension

 
If the SSI claimant SSA identifies in Part I of SSA Form L1103 is a Veteran and/or his/her dependent(s), and the Veteran was receiving Old Law Disability Pension during the time period SSA specified in the same part of the form,
  • subtract from $78.75 any benefits VA
    • offset, deducted, or withheld each month for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b, during the same time period, and/or
    • apportioned to the Veteran’s dependent(s) each month during the same time period, and
  • use the table below to determine the VA income for SSA purposes of the Veteran and/or his/her dependent(s).
If …
Then …
the Veteran’s IVAP in 1960 was $1,400.00 or less
  • the result of the calculation described above represents the Veteran’s VA income for SSA purposes, and
  • the VA income of any of the Veteran’s dependents who were not receiving an apportionment during the time period SSA specified is $0.00.
the Veteran’s IVAP in 1960 exceeded$1,400.00
  • the result of the calculation described above represents the VA income for SSA purposes of the Veteran’s dependents who were not receiving an apportionment during the time period SSA specified, and
  • the Veteran’s VA income for SSA purposes is $0.00.
Note:  If the Veteran had multiple dependents who were notreceiving an apportionment, divide the result of the calculation described above evenly among all of them. If the result does not divide evenly, add the extra pennies to the amount of benefits attributed to the
  • spouse (if a spouse exists), or
  • youngest child (if there is no spouse).
Note:  If the SSI claimant SSA identifies in Part I of SSA Form L1103 is an apportionee, follow the instructions in M21-1, Part III, Subpart iii, 3.B.5.bstarting with Step 3.

III.iii.3.B.8.c.  Calculating VA Income for SSA Purposes When the Benefit Is Old Law Survivors Pension to a Surviving Spouse

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is Old Law Survivors Pension to a surviving spouse.
Step
Action
1
Did the surviving spouse’s IVAP in 1960 exceed $1,400.00?
  • If no, proceed to Step 6.
  • If yes, the surviving spouse’s VA income for SSA purposes is $0.00. Proceed to the next step if SSA identifies one or more of the deceased Veteran’s children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
2
Determine the monthly amount of pension VA actually paid out to the surviving spouse during the time period SSA specified in Part I of SSA Form L1103.
Important:  Do not include the amount of pension VA apportioned to a child or children during the same time period.
3
Subtract from the amount identified in Step 2 any additional benefits VA paid the surviving spouse each month during the same time period because he/she
  • requires the A&A of another person, or
  • is a patient in a nursing home.
4
Add to the result of the calculation described in Step 3 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
5
  • Attribute the outcome of the action described in Step 4 to the children who were not receiving an apportionment during the time period SSA specified. This represents their VA income for SSA purposes.
  • Proceed no further.
Notes:  If the deceased Veteran had multiple children who were notreceiving an apportionment during the time period SSA specified, divide the outcome of the action described in Step 4 evenly among all of them. If the amount does not divide evenly, add the extra pennies to the youngest child’s share of the benefits.
6
During the time period SSA specified in Part I of SSA Form L1103, did VA offset, deduct, or withhold benefits for any of the reasons listed inM21-1, Part III, Subpart iii, 3.B.4.b?
  • If yes, proceed to the next step.
  • If no, the surviving spouse’s VA income for SSA purposes is $50.40. Proceed to Step 10 if SSA identifies one or more of the deceased Veteran’s children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
7
  • Subtract from $50.40 one half of the monthly offset, withholding, or deduction referenced in Step 6. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Proceed to the next step if SSA identifies one or more of the deceased Veteran’s children as an SSI claimant in Part I ofSSA Form L1103. Otherwise, proceed no further.
8
  • Refer to the column labeled PL 698-83 on page II-3 of the rate table for Old Law Survivors Pension.
  • Determine the gross amount of benefits to which the surviving spouse was entitled based on the number of children on his/her award (including apportionees) during the time period SSA specified.
9
  • Subtract from the amount identified in Step 8
    • $50.40
    • any additional benefits VA paid the surviving spouse because he/she
      • requires the A&A of another person, or
      • is a patient in a nursing home.
    • any benefits VA apportioned to a child or children during the time period SSA specified, and
    • one half of the monthly offset, withholding, or deduction referenced in Step 6.
    • Proceed no further. The remaining amount represents the VA income for SSA purposes of the deceased Veteran’s children who were notreceiving an apportionment during the time period SSA specified.
Note:  If the deceased Veteran had multiple children who were notreceiving an apportionment during the time period SSA specified, divide the result of the above calculation evenly among all of them. If the amount does not divide evenly, add the extra pennies to theyoungest child’s share of the benefits.
10
  • Refer to the column labeled PL 698-83 on page II-3 of the rate table for Old Law Survivors Pension.
  • Determine the gross amount of benefits to which the surviving spouse was entitled based on the number of children on his/her award (including apportionees) during the time period SSA specified.
11
Subtract from the amount identified in Step 10
  • any benefits VA apportioned to a child or children during the time period SSA specified, and
  • any additional benefits VA paid the surviving spouse because he/she
    • requires the A&A of another person, or
    • is a patient in a nursing home.
12
Subtract $50.40 from the amount identified in Step 11. The difference represents the VA income for SSA purposes of the deceased Veteran’s children who were not receiving an apportionment during the time period SSA specified.
Note:  If the deceased Veteran had multiple children who were notreceiving an apportionment during the time period SSA specified, divide the result of the above calculation evenly among all of them. If the amount does not divide evenly, add the extra pennies to theyoungest child’s share of the benefits.
Notes:
  • If the SSI claimant SSA identifies in Part I of SSA Form L1103 is an apportionee, follow the instructions in M21-1, Part III, Subpart iii, 3.B.5.b,starting with Step 3.
  • The additional amount of Old Law Survivors Pension VA pays to a surviving spouse because he/she is in a nursing home or requires A&A is $50.00.

III.iii.3.B.8.d.  Example: Response to a Request for VA Income for SSA Purposes When the Benefit Is Old Law Survivors Pension to a Surviving Spouse

 
Scenario:
  • A surviving spouse is receiving Old Law Pension.
  • From the time the surviving spouse first established entitlement, VA has paid her additional benefits because she
    • requires the A&A of another person, and
    • has one child who is incapable of self-support.
  • As of June 30, 1960, the surviving spouse’s IVAP was $1,000.00.
  • During the time period SSA specified in Part I of SSA Form L1103, VA was withholding $10.00 each month from the surviving spouse’s award for one of the reasons specified in M21-1, Part III, Subpart iii, 3.B.4.b.
  • SSA identified the surviving spouse and her child as SSI claimants in Part I of SSA Form L1103.
Actions:
  • Enter the amount of $45.40 in Part II, Section C, of SSA Form L1103.
  • Enter the child’s name and the amount of $7.60 in Part II, Section D, of the form.

III.iii.3.B.8.e.  Calculating VA Income for SSA Purposes When the Benefit Is Old Law Survivors Pension to a Surviving Child or Children

 
Follow the steps in the table below if
  • VA pays Old Law Survivors Pension to or for the child(ren) of a deceased Veteran
  • no surviving spouse is entitled to Old Law Survivors Pension based on the Veteran’s service, and
  • SSA identifies a child of the deceased Veteran as an SSI claimant in Part I of SSA Form L1103.
Step
Action
1
Determine the amount of Old Law Survivors Pension VA paid out to the child each month during the time period SSA specified in Part I ofSSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA withheld, deducted, or offset each month during the same time period for any reason other than those specified in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Enter the following in Part II, Section D, of SSA Form L1103:
  • the child’s name, and
  • the outcome of the action described in Step 2.

9.  Calculating VA Income for SSA Purposes When the Benefit Is Section 306 Pension


Introduction

 
This topic contains information on calculating VA income for SSA purposes when the benefit is Section 306 Pension, including

Change Date

June 14, 2015

III.iii.3.B.9.a.  Basis for Section 306 Pension Rates

 
The protected rate of Section 306 Pension to which a beneficiary is entitled is based on his/her IVAP in 1978, which is the year VA phased-out this benefit.
Although the addition of a dependent does not increase the rate of Section 306 Pension to which a Veteran or surviving spouse is entitled, the existence or absence of dependents does affect the income limit a Veteran or surviving spouse must meet in order to remain entitled to this benefit.
Note:  VA may pay Section 306 Pension to
  • a Veteran for up to three dependents, or
  • a surviving spouse for any number of children.
Reference:  For more information about Section 306 Pension, see M21-1, Part V, Subpart i, 1.3.

III.iii.3.B.9.b.  Calculating VA Income for SSA Purposes When the Benefit Is Section 306 Disability Pension

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is Section 306 Disability Pension.
Step
Action
1
During the time period SSA specified in Part I of SSA Form L1103, would the Veteran have been entitled to Section 306 Pension if VA had not considered his/her UMEs and/or applied the increased income limit for a Veteran in need of the A&A of another person?
  • If the Veteran would have been entitled, proceed to the next step.
  • If the Veteran would not have been entitled, proceed no further. The Veteran’s VA income for SSA purposes, as well as the VA income of his/her dependents who were notreceiving an apportionment during the same time period, is $0.00.
2
When VA calculated the Veteran’s IVAP in 1978, did it include the income of his/her spouse and/or the deductible expenses of his/her spouse or child(ren)?
  • If yes, proceed to the next step.
  • If no, proceed to Step 5.
Reference:  For more information about the deductible expenses referenced above, see M21-1, Part V, Subpart iii, 1.C.3
3
Recalculate the Veteran’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) using only the income and deductible expenses attributed to the Veteran.
Important:  When recalculating the 1978 IVAP, do not consider any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
Note:  If it is impossible to determine whether certain income or deductible expenses were exclusively the Veteran’s, treat them as if they were.
4
Proceed to Step 6.
5
Recalculate the Veteran’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) without considering any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
6
Did the Veteran have any dependents, including apportionees, on his/her award during the time period SSA specified?
  • If yes, proceed to Step 12.
  • If no, proceed to the next step.
7
Has VA determined the Veteran requires A&A?
  • If yes, proceed to the next step.
  • If no, proceed to Step 9.
8
Using the rate table dated December 5, 1977, Veteran with nodependents, and the Veteran’s recalculated IVAP, determine whether the Veteran would have been entitled to Section 306 Pension in 1978 if VA had not applied the increased income limit for a Veteran in need of A&A.
  • If the Veteran would have been entitled, proceed to the next step.
  • If the Veteran would not have been entitled, proceed no further. The Veteran’s VA income for SSA purposes is $0.00.
9
Using the rate table dated December 5, 1977, Veteran with nodependents, and the Veteran’s recalculated IVAP, determine the amount of Section 306 Pension to which the Veteran would have been entitled without regard to additional benefits payable for a Veteran who is
  • housebound, or
  • in need of A&A.
10
Round down the amount identified in Step 9 to the nearest full dollar.
11
  • Subtract from the outcome of the action described in Step 10 the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b. The difference represents the Veteran’s VA income for SSA purposes.
  • Proceed no further.
12
Has VA determined the Veteran requires A&A?
  • If yes, proceed to the next step.
  • If no, proceed to Step 15.
13
Recalculate the Veteran’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) without considering any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
Important:  Include in this calculation
  • the income of the Veteran’s spouse (if counted) when VA originally calculated the 1978 IVAP, and
  • the deductible expenses (other than UMEs) of the Veteran’s spouse and/or child(ren) that VA allowed when it originally calculated the 1978 IVAP.
14
Using the rate table dated December 5, 1977, Veteran withdependents, determine whether the Veteran would have been entitled to Section 306 Pension in 1978 if VA had not applied the increased income limit for a Veteran in need of A&A. Base this determination on
  • the Veteran’s recalculated IVAP in Step 13, and
  • the number of dependents, including apportionees, that were on the Veteran’s award in 1978.
After making the determination, follow the instructions in the table below.
If the Veteran …
Then …
would have been entitled to benefits
proceed to the next step.
would not have been entitled to benefits
proceed no further. The Veteran’s VA income for SSA purposes, as well as the VA income of any of his/her dependents who were not receiving an apportionment during the time period SSA specified, is $0.00.
15
Is the Veteran’s recalculated IVAP in Step 3 $3,770.00 or less?
  • If yes, the VA income of the Veteran’s dependents that werenot receiving an apportionment during the time period SSA specified is $0.00. Proceed to the next step if SSA identified the Veteran as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
  • If no, the Veteran’s VA income for SSA purposes is $0.00. Proceed to Step 19 if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
16
Using the rate table dated December 5, 1977, Veteran with nodependents, and the Veteran’s recalculated IVAP in Step 3, determine the amount of Section 306 Pension to which the Veteran would have been entitled without regard to additional benefits payable for a Veteran who is
  • housebound, or
  • in need of A&A.
17
Round down the amount identified in Step 16 to the nearest full dollar.
18
  • Subtract from the outcome of the action described in Step 17 the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b. The difference represents the Veteran’s VA income for SSA purposes.
  • Proceed no further.
19
Recalculate the Veteran’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) without considering any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
Important:  Include the following when recalculating the 1978 IVAP.
If the Veteran had …
Then include in the calculation …
a spouse on his/her award (including an apportionee-spouse) during the time period SSA specified
  • the deductible expenses (other than UMEs) of the Veteran’s spouse that VA allowed when it originally calculated the 1978 IVAP, and
  • the income of the Veteran’s spouse (if counted) when VA originally calculated the 1978 IVAP.
a child on his/her award (including an apportionee-child) during the time period SSA specified
the deductible expenses (other thanUMEs) that VA allowed for that same child when it originally calculated the 1978 IVAP.
20
Using the rate table dated December 5, 1977, Veteran withdependents, determine the amount of Section 306 Pension to which the Veteran would have been entitled based on
  • the recalculated IVAP from Step 19, and
  • the number of dependents, including apportionees, that were on the Veteran’s award during the time period SSA specified.
Important:  Exclude from the monthly rate any additional benefits payable to the Veteran in 1978 because he/she
  • was housebound, or
  • required aid and attendance.
21
Using the rate table dated December 5, 1977, Veteran with nodependents, and the Veteran’s recalculated IVAP in Step 3, determine the amount of Section 306 Pension to which the Veteran would have been entitled without regard to additional benefits payable for a Veteran who is
  • housebound, or
  • in need of A&A.
22
Subtract the amount identified in Step 21 from the amount identified in Step 20.
23
Subtract from the result of the calculation described in Step 22
  • the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b, and
  • the amount of benefits VA apportioned to a dependent or dependents during the same time period.
24
Divide the result of the calculation described in Step 23 by the number of the Veteran’s dependents who were not receiving an apportionment during the time period SSA specified. The quotient represents each dependent’s VA income for SSA purposes.
Note:  If the result does not divide evenly, add the extra pennies to the amount of benefits attributed to the
  • spouse (if a spouse exists), or
  • youngest child (if there is no spouse).
Note:  If the SSI claimant SSA identifies in Part I of SSA Form L1103 is an apportionee, follow the instructions in M21-1, Part III, Subpart iii, 3.B.5.bstarting with Step 3.

III.iii.3.B.9.c.  Example: Response to a Request for VA Income for SSA Purposes When the Benefit Is Section 306 Disability Pension

 
Scenario:
  • A Veteran is receiving Section 306 Disability Pension.
  • From the time the Veteran first established entitlement, VA has paid him additional benefits
    • for a spouse and a child who is incapable of self-support, and
    • because he is housebound.
  • The Veteran’s IVAP in 1978 was $2,500.00.  This included
    • the Veteran’s annual income of $3,000.00
    • the spouse’s annual income of $500.00, and
    • UMEs that had the effect of reducing the Veteran’s IVAP by $1,000.00.
  • During the time period SSA specified in Part I of SSA Form L1103, VA was
    • apportioning $50.00 each month to the Veteran’s spouse, and
    • withholding $20.00 each month from the Veteran’s award for one of the reasons specified in M21-1, Part III, Subpart iii, 3.B.4.c.
  • UMEs were not a consideration during the time period SSA specified.
  • SSA identified the Veteran and his spouse and child as SSI claimants in Part I of SSA Form L1103.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103 the amount of $15.00.
  • Enter in Part II, Section D, of the form
    • the name of the Veteran’s spouse and the amount of $50.00, and
    • the name of the Veteran’s child and the amount of $0.00.
  • Complete the fields in Part II, Section G, of the same form.

III.iii.3.B.9.d.  Calculating VA Income for SSA Purposes When the Benefit Is Section 306 Survivors Pension to a Surviving Spouse

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is Section 306 Survivors Pension to a surviving spouse.
Step
Action
1
During the time period SSA specified in Part I of SSA Form L1103, would the surviving spouse have been entitled to Section 306 Survivors Pension if VA had not considered his/her UMEs?
  • If the surviving spouse would have been entitled, proceed to the next step.
  • If the surviving spouse would not have been entitled, proceed no further. The surviving spouse’s VA income for SSA purposes, as well as the VA income of children that were not receiving an apportionment during the same time period, is $0.00.
2
When VA calculated the surviving spouse’s IVAP in 1978, did it include the deductible expenses of the deceased Veteran’s child(ren)?
  • If yes, proceed to the next step.
  • If no, proceed to Step 5.
Reference:  For more information about the deductible expenses referenced above, see M21-1, Part V, Subpart iii, 1.C.3.
3
Recalculate the surviving spouse’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) using only the deductible expenses attributed to the surviving spouse.
Important:  When recalculating the 1978 IVAP, do not consider any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
Note:  If it is impossible to determine whether certain deductible expenses were exclusively the surviving spouse’s, treat them as if they were.
4
Proceed to Step 6.
5
Recalculate the surviving spouse’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) without considering any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
6
Did the surviving spouse have any children, including apportionees, on his/her award during the time period SSA specified?
  • If yes, proceed to Step 10.
  • If no, proceed to the next step.
7
Determine the amount of Section 306 Pension to which the surviving spouse would have been entitled in 1978 based on
  • the surviving spouse’s recalculated IVAP, and
  • the rate table dated December 5, 1977, for a surviving spouse with no children.
Important:  Exclude from the monthly rate any additional benefits payable to the surviving spouse because he/she required the A&A of another person.
8
Round down the amount identified in Step 7 to the nearest full dollar.
9
  • Subtract from the outcome of the action described in Step 8 the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Proceed no further.
10
Is the surviving spouse’s recalculated IVAP $3,770.00 or less?
  • If yes, the VA income of the deceased Veteran’s children who were not receiving an apportionment during the time period SSA specified is $0.00. Proceed to the next step if SSA identified the surviving spouse as an SSI claimant in Part I ofSSA Form L1103. Otherwise, proceed no further.
  • If no, the surviving spouse’s VA income for SSA purposes is $0.00. Proceed to Step 14 if SSA identified any of the deceased Veteran’s children as an SSI claimant in Part I ofSSA Form L1103. Otherwise, proceed no further.
11
Determine the amount of Section 306 Pension to which the surviving spouse would have been entitled in 1978 based on
  • the surviving spouse’s recalculated IVAP, and
  • the rate table dated December 5, 1977, for a surviving spouse with no children.
Important:  Exclude from the monthly rate any additional benefits payable to the surviving spouse because he/she required the A&A of another person.
12
Round down the amount identified in Step 11 to the nearest full dollar.
13
  • Subtract from the outcome of the action described in Step 12 the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Proceed no further.
14
Recalculate the surviving spouse’s 1978 IVAP (only for the purpose of calculating VA income for SSA purposes) without considering any of the UMEs that VA allowed when it originally calculated the 1978 IVAP.
Important:  Include in this calculation the deductible expenses (other than UMEs) VA allowed when it originally calculated the 1978 IVAP that can be associated with a child(ren) on the surviving spouse’s award during the time period SSA specified (including apportionees).
15
Using the rate table dated December 5, 1977, for a surviving spousewith children, determine the amount of Section 306 Pension to which the surviving spouse would have been entitled based on
  • the recalculated IVAP from Step 14, and
  • the number of children (including apportionees) that were on the surviving spouse’s award during the time period SSA specified.
ImportantExclude from the monthly rate any additional benefits payable to the surviving spouse in 1978 because he/she required the A&A of another person.
16
Determine the amount of Section 306 Pension to which the surviving spouse would have been entitled in 1978 based on
  • the surviving spouse’s recalculated IVAP in Step 3, and
  • the rate table dated December 5, 1977, for a surviving spouse with no children.
Important:  Exclude from the monthly rate any additional benefits payable to the surviving spouse because he/she required A&A.
17
Subtract the amount identified in Step 16 from the amount identified in Step 15.
18
Subtract from the result of the calculation described in Step 17
  • the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b, and
  • the amount of benefits VA apportioned to a child or children during the same time period.
19
Divide the result of the calculation described in Step 18 by the number of the deceased Veteran’s children that were not receiving an apportionment during the time period SSA specified. The quotient represents each child’s VA income for SSA purposes.
Note:  If the result does not divide evenly, add the extra pennies to the amount of benefits attributed to the youngest child.
Note:  If the SSI claimant SSA identifies in Part I of SSA Form L1103 is an apportionee, follow the instructions in M21-1, Part III, Subpart iii, 3.B.5.bstarting with Step 3.

III.iii.3.B.9.e.  Example: Response to a Request for VA Income for SSA Purposes When the Benefit Is Section 306 Survivors Pension to a Surviving Spouse

 
Scenario:
  • A surviving spouse is receiving Section 306 Survivors Pension.
  • When the surviving spouse first established entitlement, VA paid her additional benefits for three children.  Now she receives additional benefits for one child only.
  • The surviving spouse has never submitted UMEs or claimed other deductible expenses for herself or any of the children.
  • The surviving spouse’s IVAP in 1978 was $4,000.00 per year.
  • During the time period SSA specified in Part I of SSA Form L1103, VA was withholding $20.00 each month from the surviving spouse’s award for one of the reasons specified in M21-1, Part III, Subpart iii, 3.B.4.b.
  • SSA identified the surviving spouse and child as SSI claimants in Part I ofSSA Form L1103.
Actions:
  • Enter the amount of $0.00 in Part II, Section C, of SSA Form L1103.
  • Enter the child’s name and the amount of $41.00 in Part II, Section D, of the form.

III.iii.3.B.9.f.  Calculating VA Income for SSA Purposes When the Benefit Is Section 306 Survivors Pension to a Surviving Child or Children

 
Follow the steps in the table below if
  • VA pays Section 306 Survivors Pension to the surviving child(ren) of a deceased Veteran
  • no surviving spouse is entitled to Section 306 Survivors Pension based on the Veteran’s service, and
  • SSA identifies a child of the deceased Veteran as an SSI claimant in Part I of SSA Form L1103.
Step
Action
1
During the time period SSA specified in Part I of SSA Form L1103, would the child have been entitled to Section 306 Survivors Pension if VA had not considered his/her UMEs?
  • If the child would have been entitled, proceed to the next step.
  • If the child would not have been entitled, proceed no further. The child’s VA income for SSA purposes is $0.00.
2
When VA calculated the child’s IVAP in 1978, did it allow UMEs that had the effect of lowering the child’s IVAP?
  • If yes, proceed to the next step.
  • If no, proceed to Step 4.
3
If VA had not allowed UMEs when calculating the child’s income in 1978, would the child have remained entitled to benefits?
  • If the child would have remained entitled, proceed to the next step.
  • If the child would not have remained entitled, proceed no further. The child’s VA income for SSA purposes is $0.00.
4
Determine the amount of Section 306 Survivors Pension VA paid outto the child each month during the time period SSA specified.
5
Add to the amount identified in Step 4 any benefits VA withheld, deducted, or offset each month during the same time period for any reason other than those specified in M21-1, Part III, Subpart iii, 3.B.4.b.
6
Enter the following in Part II, Section D, of SSA Form L1103:
  • the child’s name, and
  • the outcome of the action described in Step 5.

10.  Calculating VA Income for SSA Purposes for a Parent in Receipt of DIC or Death Compensation


Introduction

 
This topic contains information on

Change Date

June 14, 2015

III.iii.3.B.10.a.  Calculating VA Income for SSA Purposes for a Parent in Receipt of DIC or Death Compensation

 
VA pays individual awards of DIC or death compensation to each of a deceased Veteran’s eligible parents, even if both parents are still alive and living at the same residence.
Follow the steps in the table below to calculate VA income for SSA purposes, when the benefit is DIC or death compensation to a parent.
Step
Action
1
Determine the amount of benefits VA actually paid out to the parent each month during the time period SSA specified on SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Per the instructions in M21-1, Part III, Subpart iii, 3.B.6 and 7,subtract from the result of the calculation described in Step 2 any additional benefits VA paid the parent because he/she
  • requires the A&A of another person, and/or
  • submitted UMEs to reduce his/her IVAP.
Notes:
  • The additional amount of death compensation VA pays to a parent in need of A&A is $79.00.
  • UMEs are not a factor in determining the amount of death compensationVA pays to a parent.
  • If a parent in receipt of DIC or death compensation has a spouse who wasnot receiving DIC or death compensation during the time period SSA specified, and SSA requests benefit information about both the parentand his/her spouse,
    • follow the procedure in the table above to calculate the parent’s VA income for SSA purposes, and
    • report the spouse’s VA income for SSA purposes as $0.00.
  • If VA pays DIC or death compensation to a parent on an annual or semi-annual basis because the monthly amount of benefits payable is so small, report the parent’s VA income for SSA purposes as $0.00 unless the payment of benefits happens to fall within the time period SSA specified in Part I of SSA Form L1103.

References:  For more information about


III.iii.3.B.10.b.  Example: Response to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Parent

 
Scenario:
  • The sole surviving parent of a deceased Veteran has established entitlement to parent’s DIC.
  • SSA has requested the parent’s VA income for SSA purposes.
  • During the time period SSA specified in Part I of SSA Form L1103, VApaid out $731.00 each month to the parent.  Reflected in this amount were
    • a withholding of $100.00 each month to recover an overpayment of DIC (The overpayment is considered a compensation receivable, as described in M21-1, Part III, Subpart iii, 3.B.4.c.)
    • $160.00 in additional benefits because the parent submitted UMEs that had the effect of reducing her IVAP from $4,000.00 to $2,000.00, and
    • $326.00 in additional benefits because the parent requires A&A.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Actions:
  • Enter the amount of $345.00 in Part II, Section D, of SSA Form L1103.
  • Complete the fields in Part II, Section G, of the form.

11.  Calculating VA Income for SSA Purposes When the Benefit Is DIC or Death Compensation to a Surviving Spouse or Child(ren)


Introduction

 
This topic contains instructions for calculating VA income for SSA purposes when the benefit is DIC or death compensation to a surviving spouse or child(ren), including

Change Date

June 14, 2015

III.iii.3.B.11.a.  Responding to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Surviving Spouse With a Child or Children Under Age 18

 
Follow the steps in the table below for responding to a request for VA income for SSA purposes when the benefit is DIC to a surviving spouse with a child or children under age 18.
Step
Action
1
Did SSA identify the surviving spouse as an SSI claimant?
  • If yes, proceed to the next step.
  • If no, proceed to Step 9.
2
Determine the amount of benefits VA actually paid out to the surviving spouse each month during the time period SSA specified in Part I of SSA Form L1103.
Important:
  • Include in this amount any additional benefits VA paid the surviving spouse each month under
  • Do not include benefits VA apportioned to a surviving child or children during this time period.
Reference:  For more information about the additional benefits payable under
3
Add to the amount identified in Step 2 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
4
During the time period SSA specified, was there a child or children on the surviving spouse’s award?
  • If yes, proceed to the next step.
  • If no, proceed to Step 6.
5
For each surviving child to whom VA did not apportion benefits during the time period SSA specified, subtract from the surviving spouse’s monthly benefit the additional amount VA paid the surviving spouse for each child.
Important:  Do not subtract from the surviving spouse’s monthly benefit the additional amount VA paid under 38 U.S.C 1311(f).
6
Was the surviving spouse entitled to additional benefits because he/she is housebound or requires the aid and attendance of another person?
  • If no, proceed to the next step.
  • If yes, subtract from the surviving spouse’s monthly benefit the additional amount VA paid because the surviving spouse is housebound or requires A&A.
7
Enter in Part II, Section C, of SSA Form L1103 the surviving spouse’s
  • name, and
  • the amount of his/her monthly benefit that remains aftermaking the adjustments described in the preceding steps of this table.
8
Did SSA list a surviving child or children as an SSI claimant in Part I ofSSA Form L1103?
  • If yes, proceed to the next step.
  • If no, proceed no further.
9
Follow the instructions in the table below for each child SSA identified as an SSI claimant.
If …
Then enter in Part II, Section D, of SSA Form L1103 …
VA apportioned benefits to or for the child during the time period SSA specified
  • the child’s name, preceded by the title apportionee, and
  • the amount of benefits VA apportioned to or for the child each month during the same time period.
VA did not apportion benefits to or for the child during the time period SSA specified
  • the child’s name, and
  • the additional benefits VA paid the surviving spouse each month for the child during the same time period.

III.iii.3.B.11.b.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Surviving Spouse With Children Under Age 18

 
Scenario:
  • A surviving spouse with five children (all under the age of 18) has established entitlement to DIC.
  • Three of the children, Katy, Tom, and Jim, live with the surviving spouse.
  • VA apportions benefits from the surviving spouse’s award to the two remaining children, Jeffrey and Eliza.  Each child receives an apportionment that is equal to the amount of additional benefits the surviving spouse receives for each of them.
  • The deceased Veteran on whom the DIC award is based died afterJanuary 1, 1993.
  • SSA identified the surviving spouse and all of her children as SSI claimants in Part I of SSA Form L1103.
  • The provisions of M21-1, Part III, Subpart iii, 3.B.4 do not affect the calculation of VA income for SSA purposes in this scenario.
  • During the time period SSA specified in Part I of SSA Form L1103, VApaid out $2,639.00 each month to the surviving spouse for herself and the three children that live with her.  This amount included additional benefits under 38 U.S.C 1311(a)(2) and 38 U.S.C 1311(f).
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October 2013.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103 the amount of $1736.00($1215.00 (basic monthly rate) + $258.00 (38 U.S.C 1311(a)(2)) + $263.00 (38 U.S.C 1311(f))).
  • Enter in Part II, Section D, of SSA Form L1103
    • Katy and the amount of $301.00
    • Tom and the amount of $301.00
    • Jim and the amount of $301.00
    • apportionee Jeffrey and the amount of $301.00, and
    • apportionee Eliza and the amount of $301.00.
Note:  Occasionally, VA apportions benefits to a child in an amount that exceedsthe additional benefits a surviving spouse receives for that child.  If, in the scenario above, VA had apportioned an additional $50.00 to Eliza,
  • the surviving spouse’s VA income for SSA purposes would be $50.00 less($1686.00), and
  • Eliza’s VA income for SSA purposes would be $50.00 more ($351.00).

III.iii.3.B.11.c.  Responding to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Surviving Spouse and a Child or Children Age 18 or Older

 
Use the table below to determine the instructions to follow in responding to a request for VA income for SSA purposes when the benefit is DIC to a surviving spouse and a child or children age 18 or older.
Note:  If the child of a deceased Veteran remains entitled to DIC when he/she turns 18, VA pays benefits directly to that child in an award that is completely separate from the surviving spouse’s award.
If SSA identified …
Then …
the surviving spouse as an SSI claimant in Part I ofSSA Form L1103
follow the instructions in M21-1, Part III, Subpart iii, 3.B.11.a.
  • a child as an SSI claimant in Part I of SSA Form L1103, and
  • VA pays a separate award of DIC to or for the child because he/she is age 18 or older
follow the instructions in the table below.
Step
Action
1
Determine the amount of benefits VA actually paid out to or for the child each month during the time period SSA specified in Part I of SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
enter the result in Part II, Section D, of the same form.

III.iii.3.B.11.d.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Surviving Spouse and a Child Age 18 or Older

 
Scenario:
  • VA is paying DIC to a surviving spouse for herself only.
  • The surviving spouse is not entitled to additional benefits
    • because she is housebound or requires the A&A of another person.
  • The Veteran on whom the DIC award is based died prior to January 1, 1993.  His grade as an officer was O-5.
  • During the time period SSA specified in Part I of SSA Form L1103, VApaid out $1,554.00 each month to the surviving spouse.  Reflected in this amount is a withholding of $100.00 for recoupment of an overpayment of DIC.  (The overpayment is considered a compensation receivable, as described in M21-1, Part III, Subpart iii, 3.B.4.c.)
  • VA is paying a separate award of DIC to the deceased Veteran’s child, who is over the age of 18 and whom VA has determined is incapable of self-support.
  • SSA identified both the surviving spouse and the child as SSI claimants in Part I of SSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October 2013.
Actions:
  • Enter the amount of $1654.00 in Part II, Section C, of SSA Form L1103.
  • Enter the child’s name and the amount of $513.00 in Part II, Section D, of the form.
  • Complete the fields in Part II, Section G, of the same form.

III.iii.3.B.11.e.  Responding to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Child or Children Only

 
Follow the steps in the table below if
  • VA pays DIC to or for the child(ren) of a deceased Veteran
  • VA does not concurrently pay DIC to a surviving spouse of the deceased Veteran, and
  • SSA identifies a child of the deceased Veteran as an SSI claimant in Part I of SSA Form L1103.
Important:  These instructions apply to any child that is
  • under age 18, or
  • over age 18 but recognized by VA as
    • incapable of self-support, or
    • a school child.
Step
Action
1
Determine the amount of DIC payable to each child by referring to the rate table that
  • covers the time period SSA specified in Part I of SSA Form L1103, and
  • contains the rates payable to children when no surviving spouse is entitled to DIC.
Note:  As the number of entitled children increases, the amount of DIC payable to each individual child decreases.
Example:  Using the rate table in effect on December 1, 2012, the amount of DIC payable when
  • only one child is entitled is $513.00
  • two children are entitled is $369.00 per child, or
  • three children are entitled is $321.00 per child.
2
Subtract from the amount identified in Step 1 any benefits VA withheld, deducted, or offset each month during the same time period for any of the reasons specified in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Enter in Part II, Section D, of SSA Form L1103
  • the name of each child SSA identified as an SSI claimant, and
  • the outcome of the action described in Step 2 for the same child(ren).

III.iii.3.B.11.f.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is DIC to a Child or Children Only

 
Scenario:
  • VA is paying DIC to three of a deceased Veteran’s children.
    • Two of the three children, Ben and Jerry, are under age 18 and receive benefits under a single award.
    • The remaining child, Fred, is over age 18 and incapable of self-support; he receives benefits under a separate award.
  • The provisions of M21-1, Part III, Subpart iii, 3.B.4 do not affect the calculation of VA income for SSA purposes in this scenario.
  • SSA identified all three of the deceased Veteran’s children as SSI claimants in Part I of SSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Action:  Enter in Part II, Section D, of SSA Form L1103
  • Ben and the amount of $321.00
  • Jerry and the amount of $321.00, and
  • Fred and the amount of $622.00 ($321.00 + $301.00).

III.iii.3.B.11.g.  Responding to a Request for VA Income for SSA Purposes When the Benefit Is Death Compensation to a Surviving Spouse

 
Follow the steps in the table below for responding to a request for VA income for SSA purposes when the benefit is death compensation to a surviving spouse.
Step
Action
1
Determine the amount of benefits VA actually paid out to the surviving spouse each month during the time period SSA specified in Part I of SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
During the time period SSA specified, was VA paying the surviving spouse additional benefits because he/she was in a nursing home or required the A&A of another person?
  • If no, proceed to the next step.
  • If yes,
    • subtract $79.00 from the result of the calculation described in Step 2, and
    • proceed to the next step.
4
Enter in Part II, Section C, of SSA Form L1103 the surviving spouse’s
  • name, and
  • the amount of his/her monthly benefit that remains aftermaking the adjustments described in the preceding steps of this table.

III.iii.3.B.11.h.  Responding to a Request for VA Income for SSA Purposes When the Benefit Is Death Compensation to a Child or Children Only

Follow the steps in the table below if
  • VA pays death compensation to or for the child(ren) of a deceased Veteran
  • no surviving spouse is entitled to death compensation based on the Veteran’s service, and
  • SSA identifies a child of the deceased Veteran as an SSI claimant in Part I of SSA Form L1103.
Step
Action
1
Determine the amount of death compensation VA paid out to the child each month during the time period SSA specified in Part I of SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA withheld, deducted, or offset each month during the same time period for any reason other than those specified in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Enter the following in Part II, Section D, of SSA Form L1103:
  • the child’s name, and
  • the outcome of the action described in Step 2.
4
Enter the following in Part II, Section D, of SSA Form L1103 for each child identified as an SSI claimant:
  • the child’s name, and
  • the outcome of the action described in Step 3.

12.  Calculating VA Income for SSA Purposes When the Benefit Is Disability Compensation


Introduction

 
This topic contains information on calculating VA income for SSA purposes when the benefit is disability compensation, including

Change Date

June 14, 2015

III.iii.3.B.12.a.  Determining the Amount of Additional Disability Compensation to Which a Veteran Is Entitled for a Spouse, Parent, or School Child

 
Use the table below for instructions to determine the amount of additional disability compensation to which a Veteran is entitled for a
  • spouse
  • parent, or
  • school child.
If the dependent is …
Then the amount of additional disability compensation to which the Veteran is entitled is …
a spouse
the difference between the Veteran Alone and Veteran With Spouse Only rate on the rate table that covers the time period SSA specifies in Part I of SSA Form L1103.
Important:  When calculating the amount of additional compensation to which a Veteran is entitled for his/her spouse, do not include the additional benefits payable because the spouse requires the A&A of another person.
a parent
the difference between the Veteran Alone and Veteran With One Parent rate on the rate table that covers the time period SSA specified.
a school child
the rate for Each Additional Schoolchild Over Age 18 on therate table that covers the time period SSA specified.

III.iii.3.B.12.b.  Determining the Amount of Additional Disability Compensation to Which a Veteran Is Entitled for a Child Under Age 18

 
Use the table below for instructions to determine the amount of additional disability compensation to which a Veteran is entitled for a child under the age of 18.
Important:  When following the instructions in the table below, do not recognize apportionees as dependents.
If …
Then …
the Veteran was notentitled to additional benefits for other dependents during the time period SSA specified in Part I ofSSA Form L1103
the additional benefits to which the Veteran is entitled for the child is the difference between the Veteran Alone andVeteran With Child Only rate on the rate table that covers the same time period.
  • the Veteran was entitled to additional benefits for other dependents during the time period SSA specified, and
  • none of the other dependents were children under the age of 18
the additional benefits to which the Veteran is entitled for the child is the difference between
  • the rate to which the Veteran was entitled during the same time period for all of his/her dependents (except apportionees), and
  • the rate to which the Veteran was entitled during the same time period for all of his/her dependentsexcept the child (and any apportionees).
the Veteran was entitled to additional benefits for other children under the age of 18 during the time period SSA specified
the table below describes the additional benefits to which the Veteran is entitled for each child under the age of 18.
The additional benefits to which the Veteran is entitled for …
Is …
the youngest child
the difference between
  • the rate to which the Veteran was entitled during the same time period for allof his/her dependentsexcept children under the age of 18 (and apportionees), and
  • the rate to which the Veteran was entitled for
    • the same dependents, and
    • only one childunder the age of 18.
Note:  If the youngest child is a twin or triplet, randomly select one of them as the youngest child.
each remaining child under the age of 18
the rate for Each Additional Child Under Age 18 on the rate table that covers the time period SSA specified.

III.iii.3.B.12.c.  Calculating VA Income for SSA Purposes When the Benefit Is Disability Compensation

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is disability compensation.
Step
Action
1
Use the rate table that covers the time period SSA specified in Part I of SSA Form L1103 to determine the basic rate of payment to which the Veteran was entitled during the same time period.
Important:
  • Include the additional compensation to which the Veteran is entitled each month for his/her dependent(s), includingdependents to whom VA apportioned benefits during the time period SSA specified.
  • Do not include the additional compensation payable because
    • the Veteran is entitled to SMC, or
    • VA has determined the Veteran’s spouse requires the A&A of another person.
2
Subtract from the rate of payment identified in Step 1 any benefits VA withheld, deducted, or offset each month during the same time period for any of the reasons specified in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Was the Veteran entitled to additional benefits for a dependent or dependents during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. The outcome of the action described in Step 2 represents the Veteran’s VA income for SSA purposes.
4
  • For each dependent to whom VA apportioned benefits during the time period SSA specified, subtract the amount of the apportionment from the outcome of the action described in Step 2.
  • For each dependent to whom VA did not apportion benefits, subtract from the outcome of the action described in Step 2 the amount of additional benefits to which the Veteran was entitled for each of these same dependents, as derived from the calculations described in M21-1, Part III, Subpart iii, 3.B.12.a and b.
The amount that remains represents the Veteran’s VA income for SSA purposes.
Important:  If VA apportioned benefits to some but not all of the Veteran’s dependents, subtract the results of both of the calculations described in this step from the outcome of the action described in Step 2.
5
Did SSA list any of the dependents identified in Step 4 as an SSI claimant in Part I of SSA Form L1103?
  • If yes, proceed to the next step.
  • If no, proceed no further.
6
Follow the instructions in M21-1, Part III, Subpart iii, 3.B.5.b.

III.iii.3.B.12.d.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is Disability Compensation

 
Scenario:
  • VA rated a Veteran 90-percent disabled for SC disabilities.
  • The Veteran is entitled to SMC under 38 U.S.C. 1114(k).
  • The Veteran is also entitled to additional disability compensation for
    • a spouse
    • a parent
    • two children under the age of 18 (Dallin is eight years old; Paul is twelve), and
    • three schoolchildren, Jacob, Mason, and Jonah.
  • VA apportions $75.00 of the Veteran’s disability compensation to the parent.
  • VA apportions $175.00 to Jonah.
  • The provisions of M21-1, Part III, Subpart iii, 3.B.4 do not affect the calculation of VA income for SSA purposes in this scenario.
  • SSA identified all of the Veteran’s dependents as SSI claimants in Part I ofSSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103 the amount of $1778.00.
  • Enter in Part II, Section D, of the form
    • the name of the Veteran’s spouse and the amount of $141.00
    • apportionee, the name of the Veteran’s parent, and the amount of $75.00
    • Dallin and the amount of $103.00
    • Paul and the amount of $70.00
    • apportionee Jonah and the amount of $175.00
    • Jacob and the amount of $226.00, and
    • Mason and the amount of $226.00.
Important:  Because the apportionment to Jonah and to the Veteran’s parent areless than the additional benefits VA pays the Veteran for each of these dependents, the difference between the amount of each apportionment and the amount of additional benefits VA pays the Veteran for each dependent (a total of $89.00) must be included in the calculation of the Veteran’s VA income for SSA purposes.

13.  Calculating VA Income for SSA Purposes When the Benefit Is Current-Law Pension


Introduction

 
This topic contains instructions for calculating VA income for SSA purposes when the benefit is current-law pension, including

Change Date

June 14, 2015

III.iii.3.B.13.a.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to a Veteran With No Dependents

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is pension to a Veteran with no dependents.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to the Veteran during the time period SSA specified in Part I of SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Does VA consider the Veteran housebound or in need of the A&A of another person?
  • If yes, proceed to Step 8.
  • If no, proceed to the next step.
4
Did UMEs have any impact on the Veteran’s rate of payment during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. The outcome of the action described in Step 2 represents the Veteran’s VA income for SSA purposes.
5
  • Divide by 12 the difference between
    • the Veteran’s IVAP before VA took into account his/her UMEs, and
    • the Veteran’s IVAP after VA took into account his/her UMEs.
  • Drop any fraction of a cent from the result of the calculation.
Example:  Dropping the fraction of a cent from $208.3333 results in the amount of $208.33.
6
Is the result of the calculation described in Step 5 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. The Veteran’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
7
  • Subtract the result of the calculation described in Step 5 from the outcome of the action described in Step 2. The difference represents the Veteran’s VA income for SSA purposes.
  • Proceed no further.
8
Use the pension rate table that covers the time period SSA specified to determine the maximum annual pension rate (MAPR) for a Veteran with no dependents who
  • is housebound (if VA has determined the Veteran is housebound), or
  • requires A&A (if VA has determined the Veteran requiresA&A).
9
Use the pension rate table that covers the time period SSA specified to determine the MAPR for a Veteran who is neither housebound norrequires A&A with no dependents.
10
  • Divide by 12 the difference between the MAPRs identified in steps 8 and 9.
  • Drop any fraction of a cent from the result of the calculation.
11
Is the result of the calculation described in Step 10 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. The Veteran’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
12
Subtract the result of the calculation described in Step 10 from the outcome of the action described in Step 2.
13
Did UMEs have any impact on the Veteran’s rate of payment during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. The result of the calculation described in Step 12 represents the Veteran’s VA income for SSA purposes.
14
  • Divide by 12 the difference between
    • the Veteran’s IVAP before VA took into account his/her UMEs, and
    • the Veteran’s IVAP after VA took into account his/her UMEs.
  • Drop any fractions of a cent from the result of the calculation.
15
Is the result of the calculation described in Step 14 greater than or equal to the result of the calculation described in Step 12?
  • If yes, proceed no further. The Veteran’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
16
Subtract the result of the calculation described in Step 14 from the result of the calculation described in Step 12. The difference represents the Veteran’s VA income for SSA purposes.

III.iii.3.B.13.b.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to a Veteran With at Least One Dependent

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is pension to a Veteran with at least one dependent.
Important:  If SSA lists a Veteran’s dependent as an SSI claimant in Part I of SSA Form L1103, and VA apportioned benefits to that dependent during the time period SSA specified in the same part of the form, enter the amount of theapportionment in Part II, Section D, of the form rather than the dependent’s VA income for SSA purposes as calculated in the table below.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to the Veteran during the time period SSA specified.
Important:  Do not include the amount of pension VA apportioned to the Veteran’s dependent(s) during the same time period.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Use the pension rate table that covers the time period SSA specified to determine what the Veteran’s MAPR was during the same time period.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a Veteran who is housebound and has two dependents is $21,222.00.
Important:  If VA apportioned benefits to a dependent during this time period, do not consider the apportionee a dependent when determining the Veteran’s MAPR. Using the example above, the Veteran’s MAPR would be $19,093.00 if VA apportioned benefits to one of the dependents.
4
Use the pension rate table that covers the time period SSA specified to determine what the Veteran’s MAPR would have been during the same time period if he/she had had no dependents.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a Veteran who is housebound and has no dependents is $15,233.00.
5
Divide the difference between the MAPRs identified in Steps 3 and 4 by the MAPR identified in Step 3.
Note:  Limit the result of the calculation in this step to four decimal positions. If the number in the fifth decimal position is five or greater, round up the number in the fourth decimal position.
Example:  Using the examples provided in Steps 3 and 4, the result of the calculation in this step would be .2822.
6
Multiply the result of the calculation described in Step 5 by the outcome of the action described in Step 2. The product represents the share of the Veteran’s pension that is attributed to the Veteran’s dependent(s).
Note:  Drop any fractions of a cent from the product.
Example:  If the product is $499.0707, drop the number(s) beyond the second decimal position for a result of $499.07.
7
Subtract the result of the calculation described in Step 6 from the outcome of the action described in Step 2. This represents the amount of pension that is attributed to the Veteran after subtracting the amount of pension that is attributed to his/her dependent(s).
8
Did the Veteran have more than one dependent during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed to Step 13. The result of the calculation described in Step 6 represents the dependent’s share of the Veteran’s benefits.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
9
Use the pension rate table that covers the time period SSA specified to determine what the Veteran’s MAPR would have been during the same time period if he/she had had only one dependent.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a Veteran who is housebound and has one dependent (a spouse or a child) is $19,093.00.
10
Divide the difference between the MAPRs identified in Steps 4 and 9 by the MAPR identified in Step 3.
Example:  Using the examples provided in Steps 3, 4, and 9, the result of the calculation in this step would be .1819.
11
  • Multiply the result of the calculation described in Step 10 by the outcome of the action described in Step 2.
  • Drop any fraction of a cent from the product of the calculation. The result represents the share of the Veteran’s pension that is attributed to the first dependent.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
Notes:
  • The “first dependent” is
    • the Veteran’s spouse, or
    • the youngest child for whom the Veteran received additional benefits if there was no spouse.
  • The amount of benefits attributed to the first dependent is always more than the amount attributed to the other dependent(s).
  • If the youngest child is a twin or triplet, randomly select one of them as the youngest child.
12
Determine the amount of benefits attributed to each remainingdependent by
  • subtracting the result of the calculation described in Step 11 from the result of the calculation described in Step 6
  • dividing the difference equally among the remaining dependents, and
  • dropping any fraction of a cent from the result of the calculations.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
13
Did VA consider the Veteran housebound or in need of the A&A of another person during the time period SSA specified?
  • If yes, proceed to Step 21.
  • If no, proceed to the next step.
14
Did UMEs have any impact on the Veteran’s rate of payment during the time period SSA specified?
  • If yes, proceed to Step 16.
  • If no, the result of the calculation described in Step 7 represents the Veteran’s VA income for SSA purposes. Proceed to the next step if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
15
Proceed no further after following the instructions in the table below for determining each dependent’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
If the Veteran had …
Then . . .
only one dependent
the result of the calculation described in Step 6 represents the dependent’s VA income for SSA purposes.
multiple dependents
  • the result of the calculation described in Step 11 represents the first dependent’s VA income for SSA purposes, and
  • the result of the calculation described in Step 12 represents each remaining dependent’s VA income for SSA purposes.
16
  • Divide by 12 the difference between
    • the Veteran’s IVAP before VA took into account his/her UMEs, and
    • the Veteran’s IVAP after VA took into account his/her UMEs.
  • Drop any fraction of a cent from the result of the calculation.
17
Is the result of the calculations described in Step 16 greater than or equal to the result of the calculation described in Step 7?
  • If no, proceed to the next step.
  • If yes, the Veteran’s VA income for SSA purposes is $0.00. Proceed to Step 19 if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
18
  • Subtract the result of the calculation described in Step 16 from the result of the calculation described in Step 7. The difference represents the Veteran’s VA income for SSA purposes.
  • Return to Step 15 if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
19
  • Determine the difference between the results of the calculations described in Steps 7 and 16.
  • Divide the difference by the number of dependents that werenot receiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
20
Proceed no further after following the instructions in the table below for determining each dependent’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
If the Veteran had …
Then . . .
only one dependent
subtract the result of the calculations described in Step 19 from the result of the calculation described in Step 6. The difference represents the dependent’s VA income for SSA purposes.
multiple dependents
  • subtract the result of the calculations described in Step 19 from the result of the calculation described in Step 11. (The difference represents the first dependent’s VA income for SSA purposes.), and
  • subtract the result of the calculations described in Step 19 from the result of the calculations described in Step 12. (The difference represents each remaining dependent’s VA income for SSA purposes.)
21
Use the pension rate table that covers the time period SSA specified to determine what the Veteran’s MAPR would have been during the same time period if he/she were neither housebound nor in need of A&A.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a Veteran with two dependents who is neither housebound nor in need of A&A is $18,453.00.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
22
  • Divide by 12 the difference between the MAPRs identified in Steps 3 and 21.
  • Drop any fraction of a cent from the result of the calculation.
Example:  Using the examples provided in Steps 3 and 21, the result of the calculations described in this step would be $230.75.
23
Is the result of the calculations described in Step 22 greater than or equal to the result of the calculation described in Step 7?
  • If no, proceed to Step 26.
  • If yes, the Veteran’s VA income for SSA purposes is $0.00. Proceed to the next step if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
24
  • Determine the difference between the results of the calculations described in Steps 7 and 22.
  • Divide the difference by the number of dependents that werenot receiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
25
Proceed no further after following the instructions in the table below for determining each dependent’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
If the Veteran had …
Then . . .
only one dependent
subtract the result of the calculations described in Step 24 from the result of the calculation described in Step 6. The difference represents the dependent’s VA income for SSA purposes.
multiple dependents
  • subtract the result of the calculations described in Step 24 from the result of the calculation described in Step 11 (The difference represents the first dependent’s VA income for SSA purposes.), and
  • subtract the result of the calculations described in Step 24 from the result of the calculations described in Step 12. (The difference represents each remaining dependent’s VA income for SSA purposes.)
26
Did UMEs have any impact on the Veteran’s rate of payment during the time period SSA specified?
  • If yes, proceed to Step 28.
  • If no, proceed to the next step.
27
  • Subtract the result of the calculations described in Step 22 from the result of the calculation described in Step 7. The difference represents the Veteran’s VA income for SSA purposes.
  • Return to Step 15 if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
28
  • Divide by 12 the difference between
    • the Veteran’s IVAP before VA took into account his/her UMEs, and
    • the Veteran’s IVAP after VA took into account his/her UMEs.
  • Drop any fraction of a cent from the result of the calculation.
29
Subtract the result of the calculations described in Step 22 from the result of the calculation described in Step 7.
30
Is the result of the calculation described in Step 28 greater than or equal to the result of the calculation described in Step 29?
  • If no, proceed to Step 33.
  • If yes, the Veteran’s VA income for SSA purposes is $0.00. Proceed to the next step if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
31
  • Determine the difference between the results of the calculations described in Steps 28 and 29.
  • Divide the difference by the number of dependents that werenot receiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
32
Proceed no further after following the instructions in the table below for determining each dependent’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a dependent during the time period SSA specified, do not consider the apportionee a dependent for the purpose of this step.
If the Veteran had …
Then . . .
only one dependent
subtract the result of the calculations described in Step 31 from the result of the calculation described in Step 6. The difference represents the dependent’s VA income for SSA purposes.
multiple dependents
  • subtract the result of the calculations described in Step 31 from the result of the calculation described in Step 11 (The difference represents the first dependent’s VA income for SSA purposes.), and
  • subtract the result of the calculations described in Step 31 from the result of the calculations described in Step 12. (The difference represents each remaining dependent’s VA income for SSA purposes.)
33
  • Subtract the result of the calculations described in Step 28 from the result of the calculation described in Step 29. The difference represents the Veteran’s VA income for SSA purposes.
  • Return to Step 15 if SSA identified any of the Veteran’s dependents as an SSI claimant in Part I of SSA Form L1103.

III.iii.3.B.13.c.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is Pension to a Veteran With Multiple Dependents

 
Scenario:
  • VA is paying pension to a Veteran for herself, her spouse, and their three children, Patty, Carson, and Kaylee.  Patty is the youngest child.
  • VA has determined the Veteran requires the A&A of another person.
  • VA apportions $125.00 to the Veteran’s spouse.
  • Because the Veteran has no income, she has not reported any UMEs to VA.
  • During the entire time period SSA specified in Part I of SSA Form L1103, VA was withholding $50.00 from the Veteran’s monthly award for recoupment of an overpayment of pension.  (The overpayment is considered a pension receivable, as described in M21-1, Part III, Subpart iii, 3.B.4.c.)
  • After the withholding and the apportionment were taken into account, VApaid out $2,411.00 to the Veteran each month during the time period SSA specified in Part I of SSA Form L1103.
  • SSA identified the Veteran and all of her dependents as SSI claimants in Part I of SSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103 the amount of $1076.20.
  • Enter in Part II, Section D, of the form
    • apportionee, the name of the Veteran’s spouse, and the amount of $125.00
      • Patty and the amount of $328.29
      • Carson and the amount of $181.25, and
      • Kaylee and the amount of $181.25.
  • Complete the fields in Part II, Section G, of the same form.

III.iii.3.B.13.d.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to a Surviving Spouse With No Children

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is pension to a surviving spouse with no children.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to the surviving spouse during the time period SSA specified in Part I of SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Did VA consider the surviving spouse housebound or in need of the A&A of another person during the time period SSA specified?
  • If yes, proceed to Step 8.
  • If no, proceed to the next step.
4
Did UMEs have any impact on the surviving spouse’s rate of payment during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. The outcome of the action described in Step 2 represents the surviving spouse’s VA income for SSA purposes.
5
  • Divide by 12 the difference between
    • the surviving spouse’s IVAP before VA took into account his/her UMEs, and
    • the surviving spouse’s IVAP after VA took into account his/her UMEs.
  • Drop any fractions of a cent from the result of the calculation.
Example:  Dropping the fraction of a cent from $208.3333 results in the amount of $208.33.
6
Is the result of the calculation described in Step 5 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. The surviving spouse’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
7
  • Subtract the result of the calculation described in Step 5 from the outcome of the action described in Step 2. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Proceed no further.
8
Use the current-law pension rate table that covers the time period SSA specified to determine the MAPR for a surviving spouse with no children who
  • is housebound (if VA has determined the surviving spouse is housebound), or
  • requires A&A (if VA has determined the surviving spouse requires A&A).
9
Use the pension rate table that covers the time period SSA specified to determine the MAPR for a surviving spouse with no children who isneither housebound nor requires A&A.
10
  • Divide by 12 the difference between the MAPRs identified in Steps 8 and 9.
  • Drop any fraction of a cent from the result of the calculation.
11
Is the result of the calculation described in Step 10 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. The surviving spouse’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
12
Subtract the result of the calculation described in Step 10 from the outcome of the action described in Step 2.
13
Did UMEs have any impact on the surviving spouse’s rate of payment during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. The result of the calculation described in Step 12 represents the surviving spouse’s VA income for SSA purposes.
14
  • Divide by 12 the difference between
    • the surviving spouse’s IVAP before VA took into account his/her UMEs, and
    • the surviving spouse’s IVAP after VA took into account his/her UMEs.
  • Drop any fraction of a cent from the result of the calculations.
15
Is the result of the calculation described in Step 14 greater than or equal to the result of the calculation described in Step 12?
  • If yes, proceed no further. The surviving spouse’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
16
Subtract the result of the calculation described in Step 14 from the result of the calculation described in Step 12. The difference represents the surviving spouse’s VA income for SSA purposes.

III.iii.3.B.13.e.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to a Surviving Spouse With at Least One Child

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is pension to a surviving spouse with at least one child.
Important:  If SSA lists a surviving child as an SSI claimant in Part I of SSA Form L1103, and VA apportioned benefits to that child during the time period SSA specified in the form, enter the amount of the apportionment in Part II, Section D, of the form rather than the child’s VA income for SSA purposes as calculated in the table below.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to the surviving spouse during the time period SSA specified.
Important:  Do not include the amount of pension VA apportioned to a child or children during the same time period.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Use the pension rate table that covers the time period SSA specified to determine the surviving spouse’s MAPR during the same time period.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a surviving spouse who is housebound and has two children is $14,925.00.
Important:  If VA apportioned benefits to a child during this time period, do not consider the apportionee a child when determining the surviving spouse’s MAPR. Using the example above, the surviving spouse’s MAPR would be $12,796.00 if VA apportioned benefits to one of the children.
4
Use the pension rate table that covers the time period SSA specified to determine what the surviving spouse’s MAPR would have been during the same time period if he/she had had no children.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a surviving spouse who is housebound and has no children is $10,217.00.
5
Divide the difference between the MAPRs identified in Steps 3 and 4 by the MAPR identified in Step 3.
Note:  Limit the result of the calculation in this step to four decimal positions. If the number in the fifth decimal position is five or greater, round up the number in the fourth decimal position.
Example:  Using the examples provided in Steps 3 and 4, the result of the calculation in this step would be .3154.
6
Multiply the result of the calculation described in Step 5 by the outcome of the action described in Step 2. The product represents the share of the surviving spouse’s pension that is attributed to the child(ren).
Note:  Drop any fractions of a cent from the product.
Example:  If the product is $4,707.345, drop the number(s) beyond the second decimal position for a result of $4,707.34.
7
Subtract the result of the calculation described in Step 6 from the outcome of the action described in Step 2. This represents the amount of pension that is attributed to the surviving spouse after subtracting the amount of pension that is attributed to his/her child(ren).
8
Did the surviving spouse have more than one child during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed to Step 13. The result of the calculation described in Step 6 represents the child’s share of the surviving spouse’s benefits.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
9
Use the pension rate table that covers the time period SSA specified to determine what the surviving spouse’s MAPR would have been during the same time period if he/she had had only one child.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a surviving spouse who is housebound and has one child is $12,796.00.
10
Divide the difference between the MAPRs identified in Steps 4 and 9 by the MAPR identified in Step 3.
Example:  Using the examples provided in Steps 3, 4, and 9, the result of the calculation in this step would be .1728.
11
  • Multiply the result of the calculation described in Step 10 by the outcome of the action described in Step 2.
  • Drop any fraction of a cent from the product of the calculation. The result represents the share of the surviving spouse’s pension that is attributed to the youngest child.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
Notes:
  • The amount of benefits attributed to the youngest child is always more than the amount attributed to the other child(ren).
  • If the youngest child is a twin or triplet, randomly select one of them as the youngest child.
12
Determine the amount of benefits attributed to each remaining child by
  • subtracting the result of the calculation described in Step 11 from the result of the calculation described in Step 6
  • dividing the difference equally among the remaining children, and
  • dropping any fraction of a cent from the result of the calculations.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
13
Did VA consider the surviving spouse housebound or in need of the A&A of another person during the time period SSA specified?
  • If yes, proceed to Step 21.
  • If no, proceed to the next step.
14
Did UMEs have any impact on the surviving spouse’s rate of payment during the time period SSA specified?
  • If yes, proceed to Step 16.
  • If no, the result of the calculation described in Step 7 represents the surviving spouse’s VA income for SSA purposes. Proceed to the next step if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
15
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
If the surviving spouse had …
Then . . .
only one child
the result of the calculation described in Step 6 represents the child’s VA income for SSA purposes.
multiple children
  • the result of the calculation described in Step 11 represents the youngest child’sVA income for SSA purposes, and
  • the result of the calculation described in Step 12 represents each remaining child’s VA income for SSA purposes.
16
  • Divide by 12 the difference between
    • the surviving spouse’s IVAP before VA took into account his/her UMEs, and
    • the surviving spouse’s IVAP after VA took into account his/her UMEs.
  • Drop any fraction of a cent from the result of the calculation.
17
Is the result of the calculations described in Step 16 greater than or equal to the result of the calculation described in Step 7?
  • If no, proceed to the next step.
  • If yes, the surviving spouse’s VA income for SSA purposes is $0.00. Proceed to Step 19 if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
18
  • Subtract the result of the calculation described in Step 16 from the result of the calculation described in Step 7. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Return to Step 15 if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
19
  • Determine the difference between the results of the calculations described in Steps 7 and 16.
  • Divide the difference by the number of children that were notreceiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
20
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
If the surviving spouse had …
Then . . .
only one child
subtract the result of the calculations described in Step 19 from the result of the calculation described in Step 6. The difference represents the child’s VA income for SSA purposes.
multiple children
  • subtract the result of the calculations described in Step 19 from the result of the calculation described in Step 11 (The difference represents the youngest child’s VA income for SSA purposes.), and
  • subtract the result of the calculations described in Step 19 from the result of the calculations described in Step 12. (The difference represents each remaining child’s VA income for SSA purposes.)
21
Use the pension rate table that covers the time period SSA specified to determine what the surviving spouse’s MAPR would have been during the same time period if he/she were neither housebound nor in need of A&A.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a surviving spouse with two children, who is neither housebound nor in need of A&A, is $13,071.00.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
22
  • Divide by 12 the difference between the MAPRs identified in Steps 3 and 21.
  • Drop any fraction of a cent from the result of the calculation.
Example:  Using the examples provided in Steps 3 and 21, the result of the calculations described in this step would be $154.50.
23
Is the result of the calculations described in Step 22 greater than or equal to the result of the calculation described in Step 7?
  • If no, proceed to Step 26.
  • If yes, the surviving spouse’s VA income for SSA purposes is $0.00. Proceed to the next step if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
24
  • Determine the difference between the results of the calculations described in Steps 7 and 22.
  • Divide the difference by the number of children that were notreceiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
25
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
If the surviving spouse had …
Then . . .
only one child
subtract the result of the calculations described in Step 24 from the result of the calculation described in Step 6. The difference represents the child’s VA income for SSA purposes.
multiple children
  • subtract the result of the calculations described in Step 24 from the result of the calculation described in Step 11 (The difference represents the youngest child’s VA income for SSA purposes.), and
  • subtract the result of the calculations described in Step 24 from the result of the calculations described in Step 12. (The difference represents each remaining child’s VA income for SSA purposes.)
26
Did UMEs have any impact on the surviving spouse’s rate of payment during the time period SSA specified in Part I of SSA Form L1103?
  • If yes, proceed to Step 28.
  • If no, proceed to the next step.
27
  • Subtract the result of the calculations described in Step 22 from the result of the calculation described in Step 7. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Return to Step 15 if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
28
  • Divide by 12 the difference between
    • the surviving spouse’s IVAP before VA took into account his/her UMEs, and
    • the surviving spouse’s IVAP after VA took into account his/her UMEs.
  • Drop any fraction of a cent from the result of the calculation.
29
Subtract the result of the calculations described in Step 22 from the result of the calculation described in Step 7.
30
Is the result of the calculation described in Step 28 greater than or equal to the result of the calculation described in Step 29?
  • If no, proceed to Step 33.
  • If yes, the surviving spouse’s VA income for SSA purposes is $0.00. Proceed to the next step if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
31
  • Determine the difference between the results of the calculations described in Steps 28 and 29.
  • Divide the difference by the number of children that were notreceiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
32
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important: If VA apportioned benefits to a child during the time period SSA specified, do not consider the apportionee a child for the purpose of this step.
If the surviving spouse had …
Then . . .
only one child
subtract the result of the calculations described in Step 31 from the result of the calculation described in Step 6. The difference represents the child’s VA income for SSA purposes.
multiple children
  • subtract the result of the calculations described in Step 31 from the result of the calculation described in Step 11 (The difference represents the youngest child’s VA income for SSA purposes.), and
  • subtract the result of the calculations described in Step 31 from the result of the calculations described in Steps 12. (The difference represents each remaining child’s VA income for SSA purposes.)
33
  • Subtract the result of the calculations described in Step 28 from the results of the calculation described in Step 29. The difference represents the surviving spouse’s VA income for SSA purposes.
  • Return to Step 15 if SSA listed any of the children as an SSI claimant in Part I of SSA Form L1103.

III.iii.3.B.13.f.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is Pension to a Surviving Spouse With Multiple Children

 
Scenario:
  • VA is paying current-law pension to a surviving spouse for himself and three children, Jody, Brian, and Benji.  (Jody is the youngest child.)
  • The surviving spouse submitted UMEs to VA that had the effect of reducing his IVAP by $2,500.00 during the time period SSA specified in Part I of SSA Form L1103.  (This amount represents the difference in the surviving spouse’s IVAP before and after VA considered his UMEs.)
  • VA paid out $1,200.00 in pension each month to the surviving spouse during the time period SSA specified.
  • VA is not offsetting, deducting, or withholding any of the surviving spouse’s benefits.
  • SSA listed all of the surviving spouse’s children as SSI claimants in Part I of SSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103 the amount of $659.88.
  • Enter in Part II, Section D, of SSA Form L1103
    • Jody and the amount of $203.88
    • Brian and the amount of $168.12, and
    • Benji and the amount of $168.12.

III.iii.3.B.13.g.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to a Surviving Child or Children Only

 
Follow the steps in the table below to calculate VA income for SSA purposes when
  • SSA identifies a surviving child as an SSI claimant in Part I of SSA Form L1103
  • the surviving child received current-law pension during the time period SSA specified in Part I of SSA Form L1103, and
  • the deceased Veteran on whose service the child’s entitlement is based has no surviving spouse that is entitled to current-law pension.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to the surviving child(ren) during the time period SSA specified.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Did UMEs have any impact on the surviving child’s or children’s rate of payment during the time period SSA specified?
  • If yes, proceed to Step 5.
  • If no, proceed to the next step.
4
Proceed no further after following the instructions in the table below for determining the surviving child(ren)’s VA income for SSA purposes.
If the pension award involved …
Then …
only one child
the outcome of the action described in Step 2 represents the child’s VA income for SSA purposes.
multiple children
divide the outcome of the action described in Step 2 by the number of children on the award. The result, after dropping any fractions of a cent, represents each child’s VA income for SSA purposes.
5
Divide by 12 the difference between
  • the surviving child(ren)’s IVAP before VA took into account his/her(their) UMEs, and
  • the surviving child(ren)’s IVAP after VA took into account his/her(their) UMEs.
6
Is the result of the calculation described in Step 5 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. The surviving child(ren)’s VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
7
Subtract the result of the calculation described in Step 5 from the outcome of the action described in Step 2.
8
Follow the instructions in the table below for determining the surviving child(ren)’s VA income for SSA purposes.
If the pension award involved …
Then …
only one child
the result of the calculation described in Step 7 represents the child’s VA income for SSA purposes.
multiple children
divide the result of the calculation described in Step 7 by the number of children on the award. The result, after dropping any fractions of a cent, represents each child’s VA income for SSA purposes.

III.iii.3.B.13.h.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is Pension to Surviving Children Only

 
Scenario:
  • VA is paying pension to a deceased Veteran’s children.
  • The children’s custodian submitted UMEs to VA that had the effect of reducing each child’s IVAP by $300.00 during the time period SSA specified in Part I of SSA Form L1103.  (This amount represents the difference in the children’s IVAP before and after VA considered their UMEs.)
  • The monthly amount of benefits VA paid out for each child during the time period SSA specified was $165.00.
  • VA is not offsetting, deducting, or withholding any of the children’s benefits.
  • SSA listed all of the children as SSI claimants in Part I of SSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Result:  Each child’s VA income for SSA purposes is $140.00.

III.iii.3.B.13.i.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to Two Veterans That Are Married to One Another and Have No Children

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is pension to two Veterans that are married to one another and have no children.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to both Veterans, whether in a single award or two separate awards, during the time period SSA specified in Part I of SSA Form L1103.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Did VA consider either of the Veterans housebound or in need of the A&A of another person during the time period SSA specified?
  • If yes, proceed to Step 8.
  • If no, proceed to the next step.
4
Did UMEs have any impact on the Veterans’ rate of payment during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. One half of the amount derived in Step 2 represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.
Note:  Drop any fraction of a cent that exists after dividing the amount derived in Step 2 into equal halves.
Example:  Dropping the fraction of a cent from $208.3333 results in the amount of $208.33.
5
  • Divide by 12 the difference between
    • the Veterans’ IVAP before VA took into account their UMEs, and
    • the Veterans’ IVAP after VA took into account their UMEs.
  • Drop any fraction of a cent from the result of the calculation.
6
Is the result of the calculation described in Step 5 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. Both Veterans’ VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
7
  • Subtract the result of the calculation described in Step 5 from the outcome of the action described in Step 2.
  • Divide the difference into equal halves and drop any fraction of a cent from each half. One of the halves represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.
  • Proceed no further.
8
Use the pension rate table that covers the time period SSA specified to determine the MAPR for two Veterans that are married to one another when either or both
  • are housebound (if VA has determined either or both Veterans are housebound), or
  • require A&A (if VA has determined either or both Veterans require A&A).
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a Veteran and Veteran-spouse who are both housebound is $21,860.00.
9
Use the pension rate table that covers the time period SSA specified to determine what the Veterans’ MAPR would be if neither were housebound nor in need of A&A.
10
  • Divide by 12 the difference between the MAPRs identified in Steps 8 and 9.
  • Drop any fraction of a cent from the result of the calculation.
11
Is the result of the calculation described in Step 10 greater than or equal to the outcome of the action described in Step 2?
  • If yes, proceed no further. Both Veterans’ VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
12
Subtract the result of the calculation described in Step 10 from the outcome of the action described in Step 2.
13
Did UMEs have any impact on the Veterans’ rate of payment during the time period SSA specified?
  • If yes, proceed to Step 15.
  • If no, proceed to the next step.
14
  • Divide the result of the calculation described in Step 12 into equal halves.
  • Drop any fraction of a cent from each half. One of the halves represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.
  • Proceed no further.
15
  • Divide by 12 the difference between
    • the Veterans’ IVAP before VA took into account their UMEs, and
    • the Veterans’ IVAP after VA took into account their UMEs.
  • Drop any fractions of a cent from the result of the calculation.
16
Is the result of the calculation described in Step 15 greater than or equal to the result of the calculation described in Step 12?
  • If yes, proceed no further. Both Veterans’ VA income for SSA purposes is $0.00.
  • If no, proceed to the next step.
17
  • Subtract the result of the calculation described in Step 15 from the result of the calculation described in Step 12.
  • Divide the difference into equal halves and drop any fraction of a cent from each half. One of the halves represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.

III.iii.3.B.13.j.  Calculating VA Income for SSA Purposes When the Benefit Is Pension to Two Veterans That Are Married to One Another and Have at Least One Child

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is pension to two Veterans that are married to one another and have at least one child.
Important:  If SSA lists any of the Veterans’ children as an SSI claimant in Part I ofSSA Form L1103, and VA apportioned benefits to that child during the time period SSA specified in the form, enter the amount of the apportionment in Part II, Section D, of the form rather than the child’s VA income for SSA purposes as calculated in the table below.
Step
Action
1
Determine the monthly amount of pension VA actually paid out to both Veterans, whether in a single award or two separate awards, during the time period SSA specified in Part I of SSA Form L1103.
Important:  Do not include the amount of pension VA apportioned to a child or children during the same time period.
2
Add to the amount identified in Step 1 any benefits VA offset, withheld, or deducted each month during the same time period for reasons other than those listed in M21-1, Part III, Subpart iii, 3.B.4.b.
3
Use the pension rate table that covers the time period SSA specified to determine the Veterans’ MAPR during the same time period.
Example:  If a Veteran and his/her Veteran-spouse are both housebound, and they have two children, their MAPR is $26,118.00, according to the rate table in effect on December 1, 2012.
Important:  If VA apportioned benefits to a child during this time period, do not consider him/her a dependent when determining the Veterans’ MAPR. Using the example above, the Veterans’ MAPR would be $23,989.00 if VA apportioned benefits to one of their children.
4
Use the pension rate table that covers the time period SSA specified to determine what the MAPR would have been during the same time period for the Veteran and his/her Veteran-spouse only.
Example:  If a Veteran and his/her Veteran-spouse are both housebound, their MAPR is $21,860.00, according to the rate table in effect on December 1, 2012.
5
Divide the difference between the MAPRs identified in Steps 3 and 4 by the MAPR identified in Step 3.
Note:  Limit the result of the calculation in this step to four decimal positions. If the number in the fifth decimal position is five or greater, round up the number in the fourth decimal position.
Example:  Using the examples provided in Steps 3 and 4, the result of the calculation in this step would be .0887.
6
Multiply the result of the calculation described in Step 5 by the outcome of the action described in Step 2. The product represents the share of the Veterans’ pension that is attributed to their child(ren).
Note:  Drop any fractions of a cent from the product.
Example:  If the product is $499.0707, drop the number(s) beyond the second decimal position for a result of $499.07.
7
Subtract the result of the calculation described in Step 6 from the outcome of the action described in Step 2. This represents the amount of pension that is attributed to the Veterans after subtracting the amount of pension that is attributed to their child(ren).
8
Did the Veterans have more than one child during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed to Step 10. The result of the calculation described in Step 6 represents the child’s share of the Veterans’ benefits.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the child a dependent for the purpose of this step.
9
Determine the amount of benefits attributed to each child by
  • dividing the result of the calculation described in Step 6 by the number of the Veterans’ children that were not receiving an apportionment, and
  • dropping any fraction of a cent from the remainder.
10
Did VA consider either of the Veterans housebound or in need of the A&A of another person during the time period SSA specified?
  • If yes, proceed to Step 18.
  • If no, proceed to the next step.
11
Did UMEs have any impact on the Veterans’ rate of payment during the time period SSA specified?
  • If yes, proceed to Step 13.
  • If no, one half of the result of the calculation described in Step 7 represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes. Proceed to the next step if SSA listed any of the Veteran’s children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
Note:  Drop any fraction of a cent that exists after dividing the result of the calculation described in Step 7 into equal halves.
12
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important: If VA apportioned benefits to a child during the time period SSA specified, do not consider the child a dependent for the purpose of this step.
If the Veterans had …
Then . . .
only one child
the result of the calculation described in Step 6 represents the child’s VA income for SSA purposes.
multiple children
the result of the calculation described in Step 9 represents each child’s VA income for SSA purposes.
13
  • Divide by 12 the difference between
    • the Veterans’ IVAP before VA took into account their UMEs, and
    • the Veterans’ IVAP after VA took into account their UMEs.
  • Drop any fraction of a cent from the result of the calculation.
14
Is the result of the calculations described in Step 13 greater than or equal to the result of the calculation described in Step 7?
  • If no, proceed to the next step.
  • If yes, both Veterans’ VA income for SSA purposes is $0.00. Proceed to Step 16 if SSA listed any of the Veterans’ children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
15
  • Subtract the result of the calculation described in Step 13 from the result of the calculation described in Step 7.
  • Divide the difference into equal halves and drop any fraction of a cent from each half. One of the halves represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.
  • Return to Step 12 if SSA listed any of the Veterans’ children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
16
  • Determine the difference between the results of the calculations described in Steps 7 and 13.
  • Divide the difference by the number of children that were notreceiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
17
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the child a dependent for the purpose of this step.
If the Veterans had …
Then . . .
only one child
subtract the result of the calculations described in Step 16 from the result of the calculations described in Step 6. The difference represents the child’s VA income for SSA purposes.
multiple children
subtract the result of the calculations described in Step 16 from the result of the calculation described in Step 9. (The difference represents each child’s VA income for SSA purposes.)
18
Use the pension rate table that covers the time period SSA specified to determine what the Veterans’ MAPR would have been during the same time period if neither were housebound nor in need of A&A.
Example:  Using the rate table in effect on December 1, 2012, the MAPR for a Veteran and Veteran-spouse with two children is $20,582.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the child a dependent for the purpose of this step.
19
  • Divide by 12 the difference between the MAPRs identified in Steps 3 and 18.
  • Drop any fraction of a cent from the result of the calculation.
Example:  Using the examples provided in Steps 3 and 18, the result of the calculations described in this step would be $461.33.
20
Is the result of the calculations described in Step 19 greater than or equal to the result of the calculation described in Step 7?
  • If no, proceed to Step 23.
  • If yes, both Veterans’ VA income for SSA purposes is $0.00. Proceed to the next step if SSA listed any of the Veterans’ children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
21
  • Determine the difference between the results of the calculations described in Steps 7 and 19.
  • Divide the difference by the number of children that were notreceiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
22
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the child a dependent for the purpose of this step.
If the Veterans had …
Then . . .
only one child
subtract the result of the calculations described in Step 21 from the result of the calculation described in Step 6. The difference represents the child’s VA income for SSA purposes.
multiple children
subtract the result of the calculations described in Step 21 from the result of the calculation described in Step 9. The difference represents each child’s VA income for SSA purposes.
23
Did UMEs have any impact on the Veterans’ rate of payment during the time period SSA specified?
  • If yes, proceed to Step 25.
  • If no, proceed to the next step.
24
  • Subtract the result of the calculations described in Step 19 from the result of the calculation described in Step 7.
  • Divide the difference into equal halves and drop any fraction of a cent from each half. One of the halves represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.
    • Return to Step 12 if SSA listed any of the Veterans’ children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
25
  • Divide by 12 the difference between
    • the Veterans’ IVAP before VA took into account their UMEs, and
    • the Veterans’ IVAP after VA took into account their UMEs.
  • Drop any fraction of a cent from the result of the calculation.
26
Subtract the result of the calculations described in Step 19 from the result of the calculation described in Step 7.
27
Is the result of the calculation described in Step 25 greater than or equal to the result of the calculation described in Step 26?
  • If no, proceed to Step 30.
  • If yes, both Veterans’ VA income for SSA purposes is $0.00. Proceed to the next step if SSA listed any of the Veterans’ children as an SSI claimant in Part I of SSA Form L1103. Otherwise, proceed no further.
28
  • Determine the difference between the results of the calculations described in Steps 25 and 26.
  • Divide the difference by the number of children that were notreceiving an apportionment during the time period SSA specified.
  • Drop any fraction of a cent from the result of the calculations.
29
Proceed no further after following the instructions in the table below for determining each child’s VA income for SSA purposes.
Important:  If VA apportioned benefits to a child during the time period SSA specified, do not consider the child a dependent for the purpose of this step.
If the Veterans had …
Then . . .
only one child
subtract the result of the calculations described in Step 28 from the result of the calculation described in Step 6. The difference represents the child’s VA income for SSA purposes.
multiple children
subtract the result of the calculations described in Step 28 from the result of the calculation described in Step 9. The difference represents each child’s VA income for SSA purposes.
30
  • Subtract the result of the calculations described in Step 25 from the result of the calculation described in Step 26.
  • Divide the difference into equal halves and drop any fraction of a cent from each half. One of the halves represents one Veteran’s VA income for SSA purposes, while the other half represents the other Veteran’s VA income for SSA purposes.
  • Return to Step 12 if SSA listed any of the Veterans’ children as an SSI claimant in Part I of SSA Form L1103.

III.iii.3.B.13.k.  Example:  Response to a Request for VA Income for SSA Purposes When the Benefit Is Pension to Two Veterans That Are Married to One Another and Have Children

 
Scenario:
  • VA is paying pension to a Veteran (Katy) for herself, her spouse (Charles), and their two children (Josh and Ross).
  • Charles is also a Veteran who is entitled to pension.
  • VA has determined
    • Katy requires the A&A of another person, and
    • Charles is housebound.
  • VA received a report of UMEs that had the effect of reducing the Veterans’ IVAP by $2500.00 during the time period SSA specified in Part I of SSA Form L1103.  (This amount represents the difference in the Veterans’ IVAP before and after VA considered their UMEs.)
  • VA is not offsetting, deducting, or withholding any benefits.
  • VA pays separate awards to each Veteran.  The combined amount of pension that both Veterans received each month during the time period SSA specified was $2,431.00.
  • SSA listed Katy, Charles, and their children as SSI claimants in Part I ofSSA Form L1103.
  • The time period SSA specified falls between January and October of 2013.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103
    • Katy and the amount of $485.89 on one line, and
    • Charles and the amount of $485.89 on a separate line.
  • Enter in Part II, Section D, of SSA Form L1103
  • Josh and the amount of $163.36, and
  • Ross and the amount of $163.36.

14.  Calculating VA Income for SSA Purposes When the Benefit Is Service Pension to a Surviving Spouse or Child(ren)


Introduction

 
This topic contains information on calculating VA income for SSA purposes when the benefit is service pension to a surviving spouse or child(ren), including

Change Date

June 14, 2015

III.iii.3.B.14.a.  Amount of Service Pension Payable to Entitled Surviving Spouses

 
If a Veteran served in the Spanish-American War, his/her surviving spouse may be entitled to service pension at the rate of
  • $75.00 per month, if the surviving spouse and Veteran were married to one other while the Veteran was serving in the war, or
  • $70.00 per month, if the surviving spouse and Veteran were not married to one another while the Veteran was serving in the war.
The surviving spouse may be entitled to an additional
  • $79.00 per month if he/she requires the A&A of another person, and/or
  • $8.13 for each of the deceased Veteran’s children.

III.iii.3.B.14.b.  Calculating VA Income for SSA Purposes When the Benefit Is Service Pension to a Surviving Spouse

 
Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is service pension to a surviving spouse.
Step
Action
1
Use the information provided in M21-1, Part III, Subpart iii, 3.B.14.ato determine the gross amount of benefits to which the surviving spouse was entitled during the time period SSA specified on SSA Form L1103.
2
Subtract from the amount identified in Step 1
  • any benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b, and
  • any additional monthly benefit to which the surviving spouse was entitled during the same time period because he/she requires A&A.
3
Was the surviving spouse entitled to additional benefits for a child or children during the time period SSA specified?
  • If yes, proceed to the next step.
  • If no, proceed no further. The result of the calculation described in Step 2 represents the surviving spouse’s VA income for SSA purposes.
4
  • For each child to whom VA apportioned benefits from the surviving spouse’s award during the time period SSA specified, subtract the amount of the apportionment from the result of the calculation described in Step 2.
  • For each child to whom VA did not apportion benefits, subtract $8.13 from the result of the calculation described in Step 2.
The remaining amount represents the surviving spouse’s VA income for SSA purposes.
Important:  If VA apportioned benefits to some but not all of the children, subtract the results of both of the calculations described in this step from the result of the calculation described in Step 2.
5
Did SSA list any of the children identified in Step 4 as SSI claimants in Part I of SSA Form L1103?
  • If yes, proceed to the next step.
  • If no, proceed no further.
6
Follow the instructions in M21-1, Part III, Subpart iii, 3.B.5.b. The VA income for SSA purposes of any child that was not receiving an apportionment is $8.13.

III.iii.3.B.14.c.  Amount of Service Pension Payable to Surviving Children When No Surviving Spouse Is Entitled

 
Use the table below to determine the service pension rates the Veteran’s surviving children may be entitled to if a Veteran served during the Civil War or Spanish-American War and no surviving spouse is entitled to service pension based on the Veteran’s service.
If …
Then …
only one child is entitled to service pension
the monthly amount of benefits payable to that child is $73.13.
multiple children are entitled to service pension based on the service of the same Veteran
the monthly amount of benefits payable for all of the children is $73.13 plus $8.13 for each entitled child beyond the first one.
Example: If three surviving children are entitled to service pension, the monthly amount of benefits payable for all three of them is $89.39 ($73.13 + $8.13 + $8.13).

III.iii.3.B.14.d.  Calculating VA Income for SSA Purposes When the Benefit Is Service Pension to a Surviving Child or Children Only

 
Use the table below for instructions on calculating VA income for SSA purposes if
  • VA pays service pension to or for the child(ren) of a deceased Veteran
  • no surviving spouse is entitled to service pension based on the Veteran’s service, and
  • SSA identifies a child of the deceased Veteran as an SSI claimant in Part I of SSA Form L1103.
If …
Then …
only one child was entitled to service pension during the time period SSA specified in Part I of SSA Form L1103
subtract from $73.13 the amount of benefits VA offset, deducted, or withheld each month, during the same time period, for any of the reasons listed in M21-1, Part III, Subpart iii, 3.B.4.b. The result represents the child’s VA income for SSA purposes.
multiple children were entitled to service pension during the time period SSA specified
  • follow the instructions in M21-1, Part III, Subpart iii, 3.B.14.c for determining the total amount of benefits payable for all of the children
  • subtract from the total amount payable the amount of benefits VA offset, deducted, or withheld each month, during the time period SSA specified, for any of the reasons listed inM21-1, Part III, Subpart iii, 3.B.4.b, and
  • divide the remaining amount by the number of entitled children. The result represents each child’s VA income for SSA purposes.
Note:  If the remaining amount does not divide evenly, add the extra pennies to the amount of benefits attributed to the youngest child.
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