NSC PENSION BENEFITS by l9xX2J

VIEWS: 4 PAGES: 18

									   SERVICE OFFICER TRAINING
     SEPTEMBER 20-22, 2006
NON-SERVICE CONNECTED PENSION



   DON SMITH - INSTRUCTOR
          BASIC PENSION
   PURPOSE
   HISTORY
   CURRENT PENSION
    (PL 95-588)
   PENSION ELIGIBILITY
   WARTIME PERIODS
   DISABILITY REQUIREMENTS
BASIC PENSION CONT.
   INCOME REQUIREMENTS
   NET WORTH REQUIREMENTS
   COMPUTATION OF PENSION RATE
   MEDICAL EXPENSES
   ANNUAL REPORTING (EVR’S)
   UNDERSTANDING RATE CHART
     PURPOSE OF VA PENSION
   Pensions were intended to relieve
    distress from disability and destitution
    among the aging population of veterans
    and surviving spouses. Today VA’s
    pension has evolved into what is now
    know as improved pension to provide a
    level of financial support to wartime
    veterans or their widows.
          HISTORY OF PENSION
   OLD LAW PENSION
      FEW, IF ANY LEFT

   SECTION 306 PENSION

        -INCOME BASED

        -FIXED MONTHLY AMOUNT
        (DOES NOT HAVE COST OF LIVING INCREASE)

        -CAN ELECT TO CONVERT TO IMPROVED PENSION
        (CONVERSION IN IRREVOCABLE)

   IMPROVED PENSION - PL 95-588 – JANUARY 1, 1979
     BASIC ELIGIBILITY UNDER
      “IMPROVED PENSION”
   To qualify, veteran must have 90 days or
    more of active duty, at least on day of which
    was during a period of war. 38 CFR 3.3(3)
    Generally, veterans who entered a/d on or
    after 9/18/1980, or officers who entered a/d
    on or after 10/16/1981, require a minimum of
    24 months active duty. 38 CFR 3.12a(a-d)

   38 CFR 3.2 – Periods of War
    DISABILITY REQUIREMENTS
   Must be permanently and totally disabled (P&T) (38
    CFR 4.17)

   Exceptional cases allowed? (38 CFR 3.321 (b) (2)

   PL 107-103, Sec. 206 & 207 – Authority for statutory
    presumption of P&T for pension at age 65. Effective
    12/27/2001.

   Plus P&T for veteran’s who are either a patient in a
    N/H getting long term care or Social Security
    disability.
     INCOME REQUIREMENTS
   Recognizing countable income – See 38 CFR
    3.271 (Computation of Income)
   Payments of any kind or source shall be
    counted as income during the 12 month
    annualization period.
   Family income?
   Recurring income?
   Non-recurring income?
   Irregular & short term income?
EXCLUSIONS FROM INCOME
      38 CFR 3.272
   Welfare
   Maintenance
   Sale of Property
   Medical expenses
   Education expenses
                 NET WORTH
                 38 CFR 3.274
   Relationship of Net Worth to Pension

    “reasonable that some part of the corpus of such
    estate be consumed for the veteran’s maintenance”

   Evaluating Net Worth – 38 CFR 3.275

    Whether property can be readily converted into cash
    at no substantial sacrifice

    Life expectancy of claimant
    COMPUTATION OF INCOME
   Income work sheet (PL 95-588)

   Gross (family) Annual Income

   Deductible Expenses
    (Minus 5% of MAPR)

   IVAP (Income for VA purposes)

   MAPR (Maximum annual pension rate)

   Annual/Monthly Entitlement
DEDUCTIONS: Unreimbursed Medical
           Expenses
     (M21-1, Pt. IV, Ch. 16)



   Para 16.30 Deductible Expenses –
    General

   Para 16.31 Medical Expenses

   Addendum A – Listing of possible
    medical expenses
                  DEDUCTIONS CONT.
         Additional Points of Interest
•Para 16.31 b. (2) – In-Home Attendants
        - Disabled Person A&A or HB – Attendant does NOT have to be
licensed. All fees paid are allowable “as long as the attendant provides
some medical or nursing services” Includes fees paid for cleaning and
food preparation, etc.
        - Disabled Person NOT A&A or HB – Attendant must be licensed
health professional, then all fees are allowable.

•Para 16.31 b. (10) – Reference for Assisted Living Facilities
          - Disabled Person A&A or HB – Full cost of Assisted Living is
deductible as long “as the facility provides some medical or nursing
services”
          - Disabled Person NOT A&A or HB – “allow expenses paid to the
facility only to the extent that they represent payment for medical
treatment”
SPECIAL MONTHLY PENSION
   Increased pension is payable to a
    veteran by reason of need for A&A or
    by being housebound (H/B). 38 CFR
    3.351 and 3.352.

   Describe A&A

   Describe H/B
            ANNUAL REPORTING
   Eligibility Verification Reports

    - Who Receives Annually?

    - What form do they receive?
    21-0516 vice 21-0516-1

    Difference? Block 8, Medical
    Expenses

    Of Significance – Block 8. C.
    Projected Medical Expenses

    - Difference Between Recurring
    and Non-recurring Medical
    Expenses
           ANNUAL PENSION
          ADJUSTMENT LETTER
   Indicates amount claimant SHOULD
    have been paid for previous year,
    NOT the amount they were actually
    paid.

    Based on actual income and
    deductible expenses for that year.

    As determined by annual EVR and 21-8416.

   Retro check or Overpayment letter to follow.

   Retro check WILL NOT be equal to total of
    Medical Expenses reported on 21-8416.
CONDITIONS OF REDUCTION
   Reduction because of
    hospitalization (38
    CFR 3.551 (e))

   Adjustment of
    allowance for A&A
    (38 CFR 3.552)
            APPROPRIATE
        REFERENCE MATERIALS
   38 CFR               M21-1
    - 3.1 (d), (e) (f)    - Part III
      (l) &              - 5.19 to 5.26
    - 3.3                - 6.01 to 6.10
    - 3.12a              - 6.16 to 6.22
    - 3.23               - Chapter 7
    - 3.27               - 9.01 to 9.02
    - 3.271 to 3.277     - M21-1, MR,
    - 3.342                PT III, Sub PT ii
    - 3.351              - M21-1, PT IV
    - 3.352              - 11.01 to 11.05
                         - 12.01 to 12.11
                         - 12.15 to 12.19
                         - Chapter 16
                         - Addenda A&B

								
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