VA PensionMax Barron

Veteran Service Officer

Pension is tax-free supplemental income program payable to low-income veterans or their surviving spouse.

VA Pension was never intended to be a “retirement” benefit that would meet all of the veteran’s financial obligations.

What is it?

Service during a wartime period Age 65 or older, or Totally and permanently disabled, or Patient in a nursing home, or Receiving SSDI, or Receiving Supplemental Security Income If you are unsure if the vet is eligible, file

the claim! The VA will rule on it.

Eligibility

Family income must be below amount set by Congress.

Countable income includes income from most sources as well as from any eligible dependents.

Generally includes earnings, disability and retirement payments, interest and dividend payments from annuities and net income from farming or a business.

Income Based

Veteran and spouse should report their entire net worth.

Net worth includes bank accounts, stocks, bonds, mutual funds, annuities, property other than primary residence.

Bottom line is report all income and net worth. The VA will make the final ruling.

Income Based (cont)

A portion of out of pocket expenses can be used to lower the veteran’s countable income.

Expenses must be proven Generally expenses include Medicare,

Insurance Premiums, Prescription Insurance plans, Dental Insurance, co-pays, etc.

Please refer to handout provided.

Medical Expenses

Costs to stay in an assisted living facility may be allowed to be deducted as a medical expense.

Costs to stay in a skilled nursing facility generally will be allowed to be deducted as a medical expense.

Assisted Living/Nursing Homes

Annual income limit for vet and spouse is $13,855 (MAPR).

Combined income is $10,855 Medical expenses are $8,000 Insurance paid $6,400 Unreimbursed expenses are $1,600 Calculate the portion of medical expenses

that are above 5% of MAPR ($13,855)

Pension Example

5% of $13,855 is $693 $1,600 - $693 = $907 $10,855 - $907 = $9,948 $13,855 - $9,948 = $3,907 $3,907 divided by 12 = $325 per month

Pension Example (cont)

Any changes affecting income/net worth must be reported!

Veteran marries/divorces Child moves into the household Vet moves in with family Vet’s spouse goes to work and earns income Vet starts receiving social security benefits Vet goes into a nursing home or assisted living

facility Any change in income or net worth The VA will find out! (Eventually)

Pension Nightmares

21-526 Initial claim for Pension and/or Compensation (Veteran)

21-527 for Pension only (Net worth statement-Veteran)

21-534 Pension for Surviving Spouse If nothing else, complete one of these forms

in it’s entirety. If the VA needs more documents they will write to the vet/spouse and tell them what is needed.

Forms to use

21-527 EZ (If Fully Developed) 21-534 EZ (If Fully Developed) 21-0518 Eligibility Verification Report

(Surviving Spouse) 21-8416 Medical Expense Report 21-2680 Housebound/Aid and Attendance 21-0779 Nursing Home Information 21-674 Request for approval of school

attendance for college student 18-23

Forms to use (cont)

Marriage certificates Death certificates Medical documentation showing disabilities Receipts of medical expenses Birth certificates for dependent children Veteran’s DD 214 Copies of trusts

Other supporting documents

Pension is a supplemental income program for veterans or surviving spouses that have virtually no income.

It is a benefit that changes with any change in income or net worth.

Take a good history on the vet/spouse and if eligibility is unsure go ahead and file!

Report all income and net worth Stress to the vet/spouse how important it is

to immediately report any changes to income or net worth.

Summary

QUESTIONS?