Overview
In This Section |
This section contains the following topics:
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1. Income Reporting for Pension and Parents’ DIC
Introduction |
This topic contains information on income reporting for pension and Parents’ DIC, including
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Change Date |
March 23, 2015
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V.iii.1.A.1.c. Handling Income Reported in Foreign Currency |
If a claimant reports income or expenses in a foreign currency
Note: The Department of the Treasury publishes a quarterly document entitledTreasury Reporting Rates of Exchange. This publication is routinely sent to the Pittsburgh Regional Office (RO), the pension management centers (PMCs), and the Houston RO. Additionally, obtain exchange rate information by contacting the Compensation Service Procedures and Program Development Staff (212A).
Reference: For more information on handling income reported in foreign currency, see 38 CFR 3.32.
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V.iii.1.A.1.d. Developing for Income Information |
For specific information about developing for income, see M21-1, Part V, Subpart i, 3.
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2. Action to Take When IVAP Is Uncertain
Introduction |
This topic contains information on the action to take when IVAP is uncertain, including
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Change Date |
April 12, 2018
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V.iii.1.A.2.a. Deferments in Pension Cases |
Income for pension purposes is normally counted from the first of the month after the month during which it is received. Pension rates are generally based on expected (or “projected”) income, including deductible expenses.
Almost every Department of Veterans Affairs (VA) Pension income decision is a “deferred determination” within the meaning of 38 CFR 3.271(f), because pension claimants and beneficiaries have established time limits to report income changes, including deductible expenses.
Therefore, award action need not be deferred for processing purposes simply because future IVAP changes cannot be predicted.
However, if an application or other income report is so incomplete or unclear that a decision is not possible, the claims processor may defer for processing purposes and develop the claim. This will be a judgment call on the part of the claims processor. Otherwise, the claims processor should pay the benefit at the lowest rate justified by all the evidence of record, including VA matching programs with the
Obtain information from the IRS and the SSA before paying pension and when re-calculating net worth.
Important: VA will not normally make a decision on an incomplete income report; however, if the information provided clearly shows non-entitlement, deny entitlement based on the incomplete report.
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V.iii.1.A.2.b. Handling a Deferment in Pension Cases |
Use the information in the table below to handle deferments in pension cases.
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V.iii.1.A.2.d. Action to Take When Social Security Rate Reported by the Beneficiary is Different Than Social Security Rate in Share |
Use the table below to determine the action to take when the Social Security rate reported by the beneficiary is different than the Social Security rate in Share.
Reference: For information on accessing Social Security rates through Share, seeM21-1, Part V, Subpart iii, 1.B.12.
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V.iii.1.A.2.e. Analyzing FTI |
For original claims, when FTI is available, an analysis should be completed.
Note: If FTI is unavailable, process the claim with the available evidence of record.
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V.iii.1.A.2.f.Action to Take When Income Reported on the Application is Different Than FTI Found in Share |
Use the table below to determine the action to take when the income reported by the beneficiary is different than the calculated FTI and Social Security rate in Share.
Note: Unless the claimant submits proof from the issuing agency/company verifying his/her gross payment (to include, but not limited to Railroad Retirement, Civil Service Retirement, etc.), use the higher countable income based on the application, or as provided by the FTI, when evaluating countable income.
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V.iii.1.A.2.j. Handling FTI When Claimant is Eligible for the $90 Medicaid Nursing Home Rate |
If a the claims processor can grant the $90.00 Medicaid rate, do not use IRS and SSA data to verify income.
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3. Denying a Claim When IVAP Is Excessive; Considering Amended Income Information
Introduction |
This topic contains information on denying a claim when IVAP is excessive and considering amended income information, including
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Change Date |
February 19, 2019
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V.iii.1.A.3.a. Notification When Income Exceeds the MAPR or Income Limit |
If pension or Parents’ DIC is denied because income exceeds the MAPR or income limit, advise the claimant of
References: For more information on
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V.iii.1.A.3.b. Time Limits to Submit Amended Income Information |
Per 38 CFR 3.160(d), a claim is not finally adjudicated until the:
38 CFR 3.660(b) provides the time limits for a claimant to submit amended income information after his/her claim is denied due to excessive income or net worth. It determines the date from which entitlement can be established when new evidence is submitted.
Important: 38 CFR 3.160(d) does not extend the time limits in 38 CFR 3.660(b)for submitting satisfactory evidence of entitlement because of income. If income information is not received, along with a claim, within the established time limits, then the earliest possible effective date is the date of receipt of the new claim under 38 CFR 3.400(r).
Reference: For more information on when a claim is considered finally adjudicated, see M21-1, Part III, Subpart iv, 2.B.1.c.
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V.iii.1.A.3.c. Provisions of 38 CFR 3.660(b) |
38 CFR 3.660(b) has two subsections which address different factual situations and which invoke a different concept of the term “year.”
The table below summarizes the provisions of 38 CFR 3.660(b)(1) and 38 CFR 3.660(b)(2).
Important: The distinction between calendar years and annualized years is not relevant to Parents’ DIC cases because income is always counted on a calendar year basis in Parents’ DIC cases. The distinction is, however, critical in pension cases.
Note: 38 U.S.C. 5110(h), the statutory authority for 38 CFR 3.660(b)(1), specifies that income information to establish entitlement or increased entitlement must be received before the end of the “next” calendar year for VA to pay or increase pension for the initial year. For pension purposes, the “same” calendar year is the year in which the initial year ends, and the “next” calendar year is the year after that.
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V.iii.1.A.3.d. Definition: Satisfactory Evidence of Entitlement Within Specified Time Limits |
38 CFR 3.660(b) describes establishing entitlement to benefits if satisfactory evidence is received within specified time limits.
The phrase satisfactory evidence of entitlement within specified time limitsmeans evidence adequate to support award action must be received and date stamped in VA by a specific date.
Example:
Situation: A 65-year old Veteran files a pension claim that the RO receives on March 14, 2019.
Result: Because satisfactory evidence of entitlement was not received before January 1, 2022, VA cannot award benefits for the period March 14, 2019, through March 31, 2020.
The earliest date from which pension entitlement can be established is September 15, 2021 (with a October 1, 2021, payment date), if the Veteran establishes that income and net worth are acceptable from September 15, 2021. September 15, 2021, through September 30, 2022, would then be considered the Veteran’s new initial year.
Reference: For more information on initial year of entitlement, see M21-1, Part V, Subpart iii, 1.A.5.
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V.iii.1.A.3.e. Parents’ DIC Time Limit for Establishing Entitlement for the Initial Year |
Income determinations for Parents’ DIC purposes are always made on a calendar-year basis.
If a Parents’ DIC claim is initially denied because income exceeds the limit, 38 CFR 3.660(b)(1) gives the parent the remainder of the calendar year during which entitlement would have been established, had income not been a bar, plus the next calendar year to furnish evidence establishing entitlement from the original effective date.
Example:
Situation: A parent files a DIC claim on September 29, 2019. The claims processor considers all of the parent’s calendar year 2019 income and compares that with the parent’s proportional 2019 income to determine entitlement. Entitlement would be established from September 29, 2019, were it not for the fact that calendar year 2019 income and proportional income received on and after September 29, 2019, is above the limit set by law. The parent’s claim is denied on November 18, 2019.
Result: The parent has up to and including December 31, 2020, to submit satisfactory evidence showing that calendar year 2019 income or proportional income for the period September 29, 2019, through December 31, 2019, was within the limit.
Notes:
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V.iii.1.A.3.f. Parents’ DIC Time Limit for Establishing Entitlement for the Following Year |
Per 38 CFR 3.660(b)(2), when income for the initial calendar year is above the limit set by law, the parent can establish entitlement for the following calendar year if satisfactory evidence of entitlement is received within the following calendar year.
Situation: A parent files a DIC claim on September 29, 2019. Entitlement would be established from September 29, 2019, were it not for the fact that 2019 calendar year income (and proportional income) exceeds the income limit. The parent’s claim is denied on November 15, 2014.
Result: The parent has up to and including December 31, 2020, to submit satisfactory evidence showing that calendar year 2020 income is within the limit.
Note: The date VA denies the claim is irrelevant.
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Pension income reporting periods now generally coincide with the calendar year. However, the initial year for a pension award extends from the effective date of the award (or the date of the Veteran’s death, if later than the effective date) to 12 months after the payment date.
Therefore, the initial year will range in length from 12 months plus the stub month (up to 13 months) and will not coincide with a calendar year.
Per 38 CFR 3.660(b), if a claimant is not shown to be entitled for the initial year, the claimant has through the end of the calendar year that follows the end of the initial year to submit satisfactory evidence of entitlement for the initial year.
References: For a definition of
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V.iii.1.A.3.h. Considering a Veteran’s Disability Status After Original Claim Was Denied Because IVAP Exceeded MAPR |
When VA denies an initial Veterans Pension claim because IVAP exceeds the MAPR, the claim is not referred to the rating activity for a permanent and total (PT) disability rating determination.
If, within the 38 CFR 3.660(b) time limit, a Veteran establishes that initial-year IVAP was below the MAPR, then VA will make a rating determination of the Veteran’s disability status, if entitlement is otherwise shown.
If a Veteran turns 65, enters a nursing home or VA approved medical foster home, or is found disabled by Social Security during the initial year and establishes that initial-year IVAP was below the MAPR, VA must determine whether the Veteran has PT disability from the beginning of the initial year.
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V.iii.1.A.3.i. Example 1: Pension Time Limit for Establishing Entitlement for the Initial Year- Veterans Pension |
Situation: VA receives an original Veterans Pension claim on March 14, 2019. The Veteran receives recurring income which exceeds the pension MAPR, and the claim is denied on August 7, 2019. The initial year extends from March 14, 2019, through March 31, 2020.
Result: The Veteran has up to and including December 31, 2021 , to submit a claim along with satisfactory evidence of deductible expenses paid (or other income changes) during the period March 14, 2019 through March 31, 2020, for the purpose of reducing IVAP below the MAPR for the initial year. (If entitlement is shown, the effective date will be March 14, 2019, with a payment date of April 1, 2019, because of 38 CFR 3.31).
Note: The PMC or VSC must determine whether the Veteran has PT disability from March 14, 2019, if, before January 1, 2022, VA receives the income information establishing that initial-year IVAP was below the MAPR. If the Veteran is determined to have PT disability (or age 65 status) effective from a later date, then that later date will be the beginning of the initial year.
Reference: For more information on effective dates, see M21-1 Part V, Subpart iii, 1.A.6.
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V.iii.1.A.3.j. Example 2: Pension Time Limit for Establishing Entitlement for the Initial Year- Survivors Pension |
Situation: The Veteran died February 9, 2019. The Veteran was not in receipt of VA benefits. The Veteran’s surviving spouse files an original Survivors Pension claim on March 2, 2019, but the initial claim is denied on March 14, 2019, because the surviving spouse received one-time countable income on February 23, 2019. The initial year is February 9, 2019, through February 29, 2020.
Result: The surviving spouse has up to and including December 31, 2021, to submit a claim and evidence of deductible expenses paid during the period February 9, 2019, through February 29, 2020, or other evidence that initial-year IVAP was below the MAPR. If income evidence is received before January 1, 2021, benefits, if otherwise payable, can be awarded effective February 1, 2019 (with a payment date of March 1, 2019, because of 38 CFR 3.31).
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V.iii.1.A.3.k. Pension Time Limit for Establishing Entitlement for the Following 12-Month Period |
Per 38 CFR 3.660(b), when IVAP for the initial year exceeds the MAPR, the claimant can establish entitlement for the “following 12-month period” (that is, the 12-month period that follows the initial year) if satisfactory evidence of entitlement is received within that following 12-month period.
In this situation, the beginning of the following 12-month period becomes the beginning of a new initial year. When a new initial year is established, initial year time limits apply.
Note: For pension claims, the time limit to establish entitlement for the following 12-month period is shorter than the time limit to establish entitlement for the initial year.
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V.iii.1.A.3.l. Initial Year Periods Following a Break in Entitlement |
When entitlement to pension is reestablished on a new date after break in entitlement, the claimant is entitled to a new initial year. A new entitlement date denotes a new initial year.
Example:
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V.iii.1.A.3.m. Time Limits and Payment Dates for Initial Year and Following 12-Month Period for Pension Claims |
The table below contains examples for pension claims of
Important: If the claimant submits income information before the time limit for the initial-year of entitlement expires, but after the time limit for the following 12-month period of entitlement expires, benefits are payable from the following 12-month period of entitlement only if the claimant is also entitled for the initial year. Otherwise, entitlement would be based on date of receipt of either the initial or supplemental claim (whichever was used to reopen the evidentiary record). The date of receipt of that claim would start a new initial period. When a new initial year is established, initial year time limits apply.
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V.iii.1.A.3.n. Example 1: Pension Time Limit for Establishing Entitlement for the Following 12-Month Period – Veterans Pension |
Situation: A Veteran who is receiving Social Security disability benefits files an original pension claim that VA receives March 14, 2019 However, the Veteran has recurring income that causes expected IVAP to exceed the MAPR, and the claim is denied because IVAP exceeds the MAPR. The initial year extends from March 14, 2019, through March 31, 2020. The following 12-month period extends from April 1, 2020, through March 31, 2021.
Result: The Veteran has until March 31, 2021, to submit a claim and satisfactory evidence establishing that IVAP for the period April 1, 2020, through March 31, 2021, is below the MAPR. If VA receives the evidence before April 1, 2021, benefits can be awarded with a payment date of April 1, 2020.
Reference: For more information on effective dates, see M21-1, Part V, Subpart iii, 1.A.6.
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V.iii.1.A.3.o. Example 2: Pension Time Limit for Establishing Entitlement for the Following 12-Month Period – Survivors Pension |
Situation: The Veteran died on February 9, 2019. The surviving spouse files a pension claim that VA receives on February 13, 2019. The surviving spouse reports receiving retirement benefits of $12,000 per year. The claim is denied because IVAP exceeds the MAPR.
Result: The surviving spouse has up to and including December 31, 2021, to submit medical expenses or other evidence establishing that IVAP for the period February 9, 2019, through February 29, 2020, was below the MAPR. However, the surviving spouse only has up to and including February 28, 2021, to submit medical expenses or other evidence establishing that IVAP for the period March 1, 2020, through February 28, 2021, was below the MAPR.
Note: If the surviving spouse submitted the income information after February 28, 2021, but before January 1, 2022, benefits could have been payable from March 1, 2020, only if the surviving spouse was also entitled for the initial year (February 9, 2019, through February 29, 2020). Otherwise, entitlement would be based on date of receipt of the claim that was used to reopen the evidentiary record. The date of receipt of that claim would start a new initial period.
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V.iii.1.A.3.p. Time Limit to Furnish Amended Income Information to Increase Rate |
For information about the time limit for a Veteran to furnish amended income information to increase his/her rate, see M21-1, Part V, Subpart iii, 1.H.1.
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4. Pension and Parents’ DIC Award Effective Dates and Payment Dates
Introduction |
This topic contains information on pension and Parents’ DIC award effective dates and payment dates, including
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Change Date |
February 19, 2019
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V.iii.1.A.4.a. Definition: Effective Date or Entitlement Date |
The effective date (or entitlement date) is the date a claimant is entitled to benefits under the existing law without regard to 38 CFR 3.31.
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V.iii.1.A.4.b. Effective Dates for Pension and Parents’ DIC Awards |
Generally, the effective date for an original or new pension or Parents’ DIC award is the date of the receipt of the initial claim, per 38 CFR 3.400.
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V.iii.1.A.4.c. Retroactive Effective Dates Due to a Veteran’s PT Disability |
Under 38 CFR 3.400(b)(1), if all of the conditions listed below are met, a pension award may be retroactive for up to one year prior to the date of receipt of the initial claim, but not earlier than the date of PT disability.
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V.iii.1.A.4.d. Retroactive Effect Dates to Pension Due to Liberalizing Law |
Under Public Law (PL) 107-103 subject to 38 CFR 3.114, Pension may be awarded to a Veteran retroactive for up to one year prior to the date of receipt of the initial claim if any of the following criteria are continuously met from September 17, 2001 until the date of claim:
Important: After entitlement to pension has been granted a claims processor should send a development letter to request income, expense information and a complete application to determine entitlement from one year prior to the date of receipt. Do not establish an end product for control. Inform the Veteran that he/she has one year to establish entitlement to the earlier date.
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5. General Information on the Payment Date Under 38 CFR 3.31
Introduction |
This topic contains general information on the payment date under 38 CFR 3.31, including
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Change Date |
February 19, 2019
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V.iii.1.A.5.a. Definition: Payment Date |
The payment date is the date an award is effective after application of 38 CFR 3.31.
Example: If a Veteran is determined to have a PT disability from March 14, the effective date is March 14 and the payment date is April 1.
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V.iii.1.A.5.b. Provisions of 38 CFR 3.31 |
Under 38 CFR 3.31, payment of monetary benefits based on original, new, initial, supplemental, or increased awards of pension or Parents’ DIC may not be made for any period before the first day of the calendar month, following the month in which the award would otherwise have been effective.
For purposes of this provision, an increased award is an award that is increased because of
Notes:
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V.iii.1.A.5.c. History of 38 CFR 3.31 |
PL 97-253, The Omnibus Budget Reconciliation Act of 1982 (OBRA), provided the statutory authority for 38 CFR 3.31. It was codified as 38 U.S.C. 5111.
The Omnibus Act was intended to save money by withholding payment for the initial month of entitlement or stub month. However, this deceptively simple provision has given rise to numerous questions as to its applicability in specific situations and as to its effect on income-counting rules and payment dates.
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V.iii.1.A.5.d. Determining Whether to Apply 38 CFR 3.31 |
Follow the steps in the table below to determine whether to apply 38 CFR 3.31.
Important: The provisions of 38 CFR 3.31 do not apply to certain types of awards.
Reference: For information on specific exclusions to the payment period commencement under 38 CFR 3.31, see M21-1, Part V, Subpart iii, 1.A.6.
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V.iii.1.A.5.e. Determining the Payment Period Commencement After an Election |
When an election of current-law pension from Section 306 Pension or Old-Law Pension results in an increased rate, the new rate commences as of the first of the month following the date of the election.
Elections between disability compensation and pension (including assumed elections) are subject to 38 CFR 3.31, but 38 CFR 3.31 does not apply if an assumed election results solely from a legislative change, such as when a cost-of-living adjustment (COLA) under 38 CFR 3.27 makes an election of the other benefit advantageous.
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V.iii.1.A.5.f. Terminating Protected Pension When Income Exceeds the Limit |
If Section 306 Pension or Old-Law Pension is terminated because income exceeds the limit, current-law Pension is effective and payable January 1st of the next year, if the beneficiary is otherwise entitled.
Note: The award of current-law pension is not an election and is not subject to 38 CFR 3.31.
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V.iii.1.A.5.g. Rec-omputing Awards Based on New Income Information |
Under 38 CFR 3.660(b)(1), a claimant or beneficiary has until the end of the calendar year that follows a calendar year or the end of an initial period to furnish new income information and get a retroactive increase. Until the time limit has expired, the pension or parents’ DIC payment amount (“rate”) is always provisional.
Important: The adjustment of a provisional rate does not constitute an increased rate for purposes of 38 CFR 3.31, unless the change in income results in an increased rate compared to the month immediately preceding the date that the income change is effective.
If a change in income does cause an increased rate (compared to the month immediately preceding the date that the income change is effective), 38 CFR 3.31applies. In this situation, carry forward the preceding month’s rate for the so-calledstub month. The stub month is the month during which payment of the increased rate is barred by 38 CFR 3.31.
Note: In some situations, a stub month can be an entire month in length.
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V.iii.1.A.5.h. Example 1: Re-computing Awards Based on New Income Information |
Situation: A Veteran’s pension rate for the period January 1, 2019, through November 30, 2019, is $200 per month. Effective December 1, 2019, the rate increases to $215 per month due to the COLA. The pension rate is reduced to $100 per month for the period January 1, 2020, through December 31, 2020, because of the removal of 2019 unreimbursed medical expenses (UMEs).
In March 2021, the Veteran reports calendar-year 2020 medical expenses.
After re-computation, it is determined that the Veteran is entitled to $150 per month for the period January 1, 2020, through December 31, 2020.
Result: Pay the increase from January 1, 2020, because the rate payable on that date ($150) is less than the December 2019 rate ($215). The fact that the $150 rate is greater than the former January 1, 2020, rate ($100), based on estimated income is irrelevant.
Rationale: There has not been an increased award within the meaning of 38 CFR 3.31.
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V.iii.1.A.5.i. Example 2: Re-computing Awards Based on New Income Information |
Situation: A Veteran’s Pension rate for the period January 1, 2019, through November 30, 2019, is $200 per month. Effective December 1, 2019, the rate increases to $215 per month due to the COLA. The rate is reduced to $100 per month for the period January 1, 2020, through December 31, 2020, because of the removal of 2019 UMEs.
In March 2021 the Veteran reports calendar-year 2020 medical expenses. After re-computation, it is determined that the Veteran is entitled to a rate of $250 per month for calendar-year 2020.
Result: Do not increase the $250 rate until February 1, 2020. Adjust the January 1, 2020, payment to $215 (the December 2019 amount).
Rationale: There has been an increased award as defined by 38 CFR 3.31.
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V.iii.1.A.5.j. Handling a MAPR and Income Change Effective the Same Date |
In a pension case, when an income change necessitates application of 38 CFR 3.31, and the effective date of the income change coincides with the date of a change in the MAPR, strict application of the procedures outlined in this topic deprives the beneficiary of the benefit of the new MAPR for the initial month.
To afford the beneficiary the benefit of the MAPR increase, when 38 CFR 3.31 is a factor and the effective dates of an income change and MAPR change coincide, carry forward the deductible expenses and non-Social Security income (as opposed to the pension rate) from the month immediately preceding the income/MAPR change.
If the beneficiary receives recurring Social Security income, count the post-COLASocial Security rate from the effective date of the COLA.
If the beneficiary receives a benefit other than Social Security which has a COLA increase effective the same date as the MAPR change, carry forward the rate of the other benefit (as opposed to the VA pension rate) from the month preceding the income/MAPR change (that is, November for a December 1 COLA).
Note: Social Security is the only type of income that is charged at the post-COLA rate in this situation.
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V.iii.1.A.5.k.Applying 38 CFR 3.31 When Effective Dates of the MAPR and Income Change Coincide |
When the effective dates of the MAPR change and beneficiary’s income change coincide, the basic question is whether 38 CFR 3.31 would have been applied had the same income change taken place on a date that did not coincide with the Social Security COLA and change in the VA pension MAPR.
One way of determining whether 38 CFR 3.31 should be applied is to complete the initial (December 1st) Income screen twice.
Follow the steps in the table below to determine if 38 CFR 3.31 must be applied.
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V.iii.1.A.5.l. Example: Handling a MAPR and Income Change Effective the Same Date |
Situation: A Veteran was paid pension of $446 per month from January 2019 through November 2019 based on retirement income of $400 per month ($4,800 per year). Effective December 1, 2019, the pension rate increased to $481 because of the COLA.
In February 2020, the Veteran reports that his retirement income was reduced to $350 per month on December 1, 2019. The re-computed IVAP effective December 1, 2019, is $4,200, which entitles the Veteran to a monthly rate of $531 effective December 1, 2019.
Result/Rationale: Because there is an increase in the monthly rate compared to the month immediately preceding the month of the income change ($531 for December 2019 compared to $446 for November 2019) and part of the increase is attributable to the reduction in IVAP, 38 CFR 3.31 applies. Therefore, the $531 rate cannot be paid until January 1, 2020. If the claims processor carries forward the November 2019 rate ($446) for the month of December 2019 however, the Veteran will be deprived of the benefit of the MAPR increase effective December 1, 2019.
To compensate for this, carry forward the November 2019 IVAP of $4,800 for the month of December 2019. The award should pay
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V.iii.1.A.5.m. Handling Income That Exceeds the MAPR for the Initial Year |
In a pension case, the initial year extends from the effective date of the award (or later date of the Veteran’s death) to one year from the payment date.
If payment is barred for the initial year because income exceeds the MAPR but income for the following 12-month period is below the MAPR, pay from the beginning of the following 12-month period. Although this is an original award, 38 CFR 3.31 has already been factored into the initial year.
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V.iii.1.A.5.n. Example: Handling Income Over the MAPR for the Initial Year |
Situation: A 65-year old Veteran files an initial pension claim that VA receives March 14, 2019. VA is about to award Pension, but before the award is authorized, the Veteran reports her spouse started working, with the first check received on March 28, 2019. The Veteran expects her spouse to receive wages of $1,400 each month. The initial claim is denied because income exceeds the MAPR.
During March 2020 the Veteran submits a claim and reports that her spouse was fired at the end of calendar-year 2019. The total wages received were $14,000. (The Veteran reported no medical expenses and did not claim special monthly pension.) Her income still exceeds the MAPR for the initial year extending from March 14, 2019, through March 31, 2020.
Result: If the Veteran expects no income after December 2019, the original award can be made with a payment date of April 1, 2020.
Reference: For more information on this type of recalculation of income, see 38 CFR 3.271(a)(1).
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6. Specific Exclusions to Payment Period Commencement Under 38 CFR 3.31
Introduction |
This topic contains information on specific exclusions to the payment period commencement under 38 CFR 3.31, including
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Change Date |
February 19, 2019
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V.iii.1.A.6.a. Award Adjustments |
An award may be reduced or benefits may be withheld for a variety of reasons, such as
In some cases, the award is subsequently restored to the preadjustment rate because the circumstances that necessitated the adjustment no longer exist. For example, the Veteran was discharged from the hospital or is no longer incarcerated.
In such cases, 38 CFR 3.31 does not apply to restoration of the preadjustment rate, per 38 CFR 3.31(c)(3).
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V.iii.1.A.6.b. Example 1: Award Adjustments |
Situation: A Veteran’s Pension has been reduced because a minor child attained age 18. VA Form 21-674, Request for Approval of School Attendance, is received showing the child’s continuous enrollment in an approved school from age 18.
Result/Rationale: If entitlement exists retroactively to the date the child was removed, with no increase over the prior rate, the award to restore additional benefits for the child is not an “increased award” for purposes of 38 CFR 3.31. Adjust the award from the date of reduction.
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V.iii.1.A.6.c. Example 2: Award Adjustments |
Situation: A Veteran without dependents whose pension was reduced under 38 CFR 3.551(c) is now discharged from nursing home care at VA expense.
Result/Rationale: Restoration of the full pension benefit is not an
“increased award” within the meaning of 38 CFR 3.31. It is an adjustment to restore the previous rate. Adjust the award effective the date of discharge. Note: The same principle applies if aid and attendance (A&A) benefits are reduced under 38 CFR 3.552.
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V.iii.1.A.6.d. Example 3: Award Adjustments |
Situation: A part of the Veteran’s Pension is being apportioned for the Veteran’s estranged spouse.
Result/Rationale 1: If the apportionment is terminated and the apportioned amount is restored to the Veteran, 38 CFR 3.31 does not apply. This is viewed as a restoration of benefits.
Result/Rationale 2: If the estranged spouse had income that was being counted against the Veteran and the termination of the apportionment results in an increased rate of pension, 38 CFR 3.31 does apply. In this instance, the increased award would be at least partially attributable to a reduction in countable income.
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V.iii.1.A.6.e. Reduction or Discontinuance of an Award After Receipt of Non-recurring Income |
If a pension beneficiary receives non-recurring income, the income is counted on the award for 12 months. However, the effect on pension payments depends on whether the non-recurring income causes discontinuance or only reduction of the running award.
Use the table below to determine when to resume the benefits.
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V.iii.1.A.6.f. Example 1: 38 CFR 3.31 and Nonrecurring Income – Discontinuance of Award |
Situation: A Veteran receives a one-time payment of income on August 7, 2019. The amount of the payment causes the Veteran’s income to exceed the MAPR. The award is discontinued effective September 1, 2019.
Result: The earliest effective date for a new award is September 1, 2020, with a payment date of October 1, 2020.
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V.iii.1.A.6.g. Example 2: 38 CFR 3.31 and Non-recurring Income – Reduction of Award |
Situation: A Veteran receives a one-time payment of income on August 7, 2019. Pension is reduced for the period September 1, 2019, to September 1, 2020.
Result/Rationale: The pension rate change when it occurs on September 1, 2020, will not be an increased award based on a reduction of income. The September 1, 2020, award line represents a restoration of benefits.
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V.iii.1.A.6.h. Increases Resulting Solely from the Enactment of Legislation |
Pension COLA increases under 38 CFR 3.27 and other increases attributable to legislation are not subject to 38 CFR 3.31.
Reference: For more information on exceptions to the delayed payment provisions of the Omnibus Act, see 38 CFR 3.31(c).
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| Historical_M21-1V_iii_1_SecA_4-12-18.docx | May 20, 2019 | 86 KB |
| 2-19-19_Key-Changes_M21-1V_iii_1_SecA.docx | May 20, 2019 | 82 KB |
| Historical_M21-1V_iii_1_SecA_03-23-2015.doc | May 20, 2019 | 253 KB |
| Change-July-18-2015-Transmittal-Sheet-M21-1V_III_1_SecA_TS.docx | May 20, 2019 | 39 KB |
| 4-12-18_Key-Changes_M21-1-V_iii_1_SecA.docx | May 20, 2019 | 94 KB |
| Transmittal-02_13_07.doc | May 20, 2019 | 55 KB |
| Transmittal-pt05_sp03_TS_2-3-11.doc | May 20, 2019 | 108 KB |
| Change-March-23-2015-Transmittal-Sheet-M21-1MRV_iii_1_SecA_TS.docx | May 20, 2019 | 39 KB |
in Chapter 1 The Effect of Income and Net Worth on Pension and Parents Dependency and Indemnity Compensation (DIC), Part V Pension and Parents Dependency and Indemnity Compensation (DIC), Subpart iii Authorization issues
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