Overview
In This Section |
This section contains the following topics:
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1. Adjustments Based on Changes in Income
Introduction |
This topic contains information on adjustments based on changes in income, including
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Change Date |
November 3, 2016
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V.iii.1.H.1.a. Counting Income |
The income counting procedures apply equally to
Reference: For more information about counting income, see M21-1, Part V, Subpart iii, 1.E.6.
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V.iii.1.H.1.b. Time Limit to Furnish Amended Income Information to Increase the Rate |
38 CFR 3.660(b)(1) provides the time limit for submitting new evidence to get a higher rate for a particular income year.
For an original award or a new award after a period of non-entitlement, the “income year” is the initial year. (Therefore, a claimant can have more than one “initial year.”) Otherwise, the income year is the applicable calendar year.
38 CFR 3.660(b)(1) provides that where pension was paid at a lower rate based on anticipated income, pension may be increased in accordance with the facts found if satisfactory evidence of entitlement is received within the same or next calendar year.
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V.iii.1.H.1.c. Definition: Same Calendar Year Under 38 CFR 3.660(b)(1) |
The same calendar year under 38 CFR 3.660(b)(1) is the year in which the applicable calendar year or initial period ends.
Therefore, a claimant has the entire calendar year that follows the applicable calendar year (or that follows the year that the initial year ends) to submit satisfactory evidence of entitlement for the calendar year in question.
The table below describes the time limit for the claimant to submit satisfactory evidence of entitlement for the same calendar year.
Reference: For the definition of the term initial year, see M21-1, Part V, Subpart iii, 1.E.7.a.
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V.iii.1.H.1.d. Example 1: Time Limit to Furnish Amended Income Information to Increase Rate |
Situation: A Veteran’s initial year is July 12, 2006, through July 31, 2007. The “same calendar year” refers to 2007, the calendar year during which the initial year ends.
Result: The Veteran has up to and including December 31, 2008, to submit income information (such as unreimbursed medical expenses) to reduce income for the period July 12, 2006, through July 31, 2007.
Note: A Veteran under the age of 65 who was not rated permanently and totally (P&T) disabled because income for VA purposes (IVAP) exceeded the maximum annual pension rate (MAPR) may be rated P&T from the original date of claim (unless the medical evidence precludes such a rating), if the Veteran submits income information within the 38 CFR 3.660(b) time limits and IVAP (and net worth) permits payment.
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V.iii.1.H.1.f. Evidence Date Stamp |
38 CFR 3.660(b) speaks in terms of establishing entitlement to benefits if satisfactory evidence is received within specified time limits. This means that evidence adequate to support award action must be date stamped into VA by the critical date, or by the next workday, if the time limit expires on a Saturday, Sunday, or legal holiday.
Reference: For more information on computation of time limits, see 38 CFR 3.110.
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V.iii.1.H.1.g. Time Limit to Submit Amended Income Information to Reduce an Overpayment |
Under 38 CFR 3.652(b), there is no time limit to submit evidence of continued entitlement, such as income evidence, for the purpose of reducing an overpayment.
However, the evidence submitted must relate to the period during which the overpayment was created, per 38 CFR 3.660(b).
Example:
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V.iii.1.H.1.h. Time Limit to Submit Amended Income Information When a Pension Award Is Discontinued Because IVAP Exceeds the MAPR |
When a pension award is discontinued because IVAP exceeds the MAPR, 38 CFR 3.660(b) determines the time limit to submit new income information.
Note that the 38 CFR 3.660(b) time limits cannot be extended because of a delay in notifying the beneficiary of the discontinuance.
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V.iii.1.H.1.i. Continuing Entitlement Established |
A pensioner has up to and including the last day of the calendar year that follows the end of the initial year or calendar year period to establish continuing entitlement for the income counting period during which the discontinuance occurred.
Situation:
Result: The Veteran has through the end of 2007 to submit evidence of continuing entitlement (for example, deductible expenses) from September 1, 2006.
Note: In this example, if the Veteran responded before January 1, 2008, with information establishing uninterrupted entitlement for the 2006 calendar year, the amount of time the Veteran has to establish entitlement for the following calendar year (2007), is determined by whether the Veteran had previously submitted income information for that year.
If the Veteran had not previously submitted income information for 2007, the Veteran has 12 months from the date of request by VA to furnish the required evidence.
However, if income evidence for 2007 had previously been submitted but benefits were not awarded because it appeared IVAP would exceed the MAPR for 2007, then
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V.iii.1.H.1.j. Payment of Pension After a Break in the Entitlement |
The time limit to submit evidence establishing entitlement after a break in entitlement is determined by 38 CFR 3.660(b)(2). That is, the claimant has two years from the date of discontinuance to submit evidence establishing entitlement from 12 months after the date of discontinuance.
If the claimant re-establishes entitlement from a date that is 12 months from the date of discontinuance, 38 CFR 3.31 applies in determining the proper payment date.
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2. COLAs
Introduction |
This topic contains information on COLAs, including
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Change Date |
March 13, 2019
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V.iii.1.H.2.a. Effect of COLA Adjustments |
Cost-of-living adjustments (COLAs) in other benefits affect the rate of current-law pension payable.
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V.iii.1.H.2.b. Normal Impact of Social Security COLA on the Current-Law Pension Rate |
Normally, a Social Security COLA adjustment will not reduce the rate of current-law pension because the current-law pension MAPR always increases at the same time and by the same percentage as the rate of Social Security, per 38 CFR 3.27.
If the Social Security COLA does not reduce the rate of current-law pension, count the increased rate of Social Security from the effective date of the COLA (generally December 1). This is an exception to the general end-of-the-month rule that increased income is counted from the first day of the month after the month during which it is received.
Example: A Veteran is receiving current-law pension based on Social Security of $5,000 per year. Effective December 1, 2005, the rate of Social Security goes up to $5,205 as a result of the COLA. Pay $447 per month based on IVAP of $5,205 from December 1, 2005.
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V.iii.1.H.2.c. Reduction in Rate of Current-Law Pension Due to Social Security’s COLA |
If deductible expenses are a factor, a beneficiary’s rate of current-law pension may go down as the result of an Social Security COLA. This happens most often when a beneficiary’s annual rate of Social Security approaches or exceeds the applicable MAPR.
If an Social Security COLA adjustment results in a decrease in the rate of current-law pension, decrease the pension rate effective the first of the month after the effective date of the COLA/MAPR increase.
However, if deductible expenses for the calendar year associated with the COLA are projected to increase, then carry forward the previous year’s pension payment rate until February 1.
Notes:
Reference: For more information on adjusting an award to reflect a COLA, seeM21-1, Part III, Subpart v, 10.A.3.a.
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V.iii.1.H.2.e. Example: Adjusting the Rate of Current-Law Pension When Calendar-Year Medical Expenses Are Projected to Increase |
Situation:
Result: Adjust the award to pay at the rate of $599 per month through January 31, 2005, and $666 from February 1, 2005 (38 CFR 3.31).
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V.iii.1.H.2.f. Reduction in Rate of Current-Law Pension Due to Other Benefit Program’s COLA |
If a VA beneficiary receives additional income because of a COLA in a benefit program other than Social Security, then the general rule for counting recurring income applies. Count the additional income from the first of the month after the month during which it is received.
Reference: For more information on counting recurring income, see M21-1, Part V, Subpart iii, 1.E.6.d.
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V.iii.1.H.2.l. COLA Transfers From Fiduciary Hubs |
PMCs are responsible for working COLA claims transferred from fiduciary hubs. PMCs should work both the fiduciary claim and the COLA claim together.
The PMC must complete all actions to finalize both claims and provide the claimant notification of all decisions to include the fiduciary issues.
The PMC is entitled to both the COLA end product (EP) and the fiduciary action EP.
References: For additional information on
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3. Adjustments for the Loss of Disability Social Security
Introduction |
This topic contains information on adjustments for the loss of disability Social Security, including
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Change Date |
September 12, 2016
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4. Effect of Discontinued Survivors Pension Award on Other Beneficiaries
Introduction |
This topic contains information on the effect of a discontinued Survivors Pension award on other beneficiaries, including
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Change Date |
September 12, 2016
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V.iii.1.H.4.c. Remarriage of the Surviving Spouse |
If a surviving spouse remarries, current-law pension eligibility is lost as described in38 CFR 3.500(n)(1). A remarried surviving spouse whose subsequent marriage is annulled or declared void can reestablish eligibility as a surviving spouse.
This applies to both pension and DIC recipients.
If it appears that a child may be entitled to a pension in his/her own right, initiate development to determine the income of the child, parent and stepparent or other custodian of the child with whom the child resides.
Reference: For more information on reestablishing eligibility to benefits, see 38 CFR 3.55.
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V.iii.1.H.4.d. Discontinuance of a Child’s Award |
If there is no surviving spouse, or if a child is out of the surviving spouse’s legal custody for current-law pension purposes, the child’s entitlement is completely independent of any benefits paid to any other beneficiary. The adjustment or discontinuance of such an award has no impact on any other beneficiaries, unless the other beneficiaries are receiving Section 306 Pension or Old-Law Pension. Reference: For more information on handling another beneficiary’s Section 306 Pension or Old-Law Pension award when a surviving spouse’s or child’s Section 306 Pension or Old-Law Pension award is discontinued, see M21-1, Part V, Subpart iii, 1.C.6. |
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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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