VA Pension Benefits

NJ INSTITUTE FOR 

CONTINUING LEGAL EDUCATION 

A Lawyer’s Guide to the Law Affecting 

Veterans and the Military 

APRIL 25, 2017 

VA PENSION BENEFITS 

Presented by 

Donald D. Vanarelli, Esq. 

Accredited VA Attorney 

Certified Elder Law Attorney 

Founding Member, Assn. of Special Needs Planners 

Named to the NJ “Super Lawyer” list, 2007 – Present 

VanarelliLaw.com

VA Benefits in General 

Benefits provided by the Department 

of Veterans Affairs (VA) range from 

healthcare, compensation and 

adaptive housing grants for serviceconnected 

disabilities, needs-based 

pensions, education, vocational 

training, home loan guarantees, life 

insurance, and burial and memorial 

benefits.

VA Benefits in General 

(cont’d) 

Certain VA benefits are also 

provided to eligible dependents 

and survivors of veterans.

Veterans Health Administration 

(VHA) 

Purpose: To provide health 

care primarily for the benefit of 

veterans with service-connected 

disabilities, combat veterans, 

and low-income veterans.

Veterans Health Administration 

(VHA) (cont’d) 

Programs include: 

-- VA Hospitals (163 hospitals) 

-- VA Nursing Homes (137 nursing 

homes) 

-- Information Resource Centers 

-- Inpatient and Outpatient Clinics (850 

Outpatient Clinics) 

-- Domiciliary, Home Health, Adult Day 

Care, Residential/Respite Care 

Programs

Veterans Benefits 

Administration (VBA) 

The VBA provides an integrated program 

of veterans’ benefits. The major benefits 

include: 

-- Compensation (for service - 

connected disabilities) 

-- Compensation for surviving 

spouses and dependents of 

deceased veterans 

-- Burial Benefits

Veterans Benefits 

Administration (VBA) (cont’d) 

-- Rehabilitation assistance 

-- Home Loans 

-- Specially-adapted housing 

-- Pension (for non-service 

connected disabilities)

Overview of Major Disability 

Benefits Programs 

• Service-Connected Compensation 

Disability compensation is a monetary 

benefit for veterans who are disabled 

by an injury or disease that was 

incurred or aggravated during active 

service.

Overview of Major Disability 

Benefits Programs (cont’d) 

• Needs-Based Pension 

Pension is a monetary benefit for 

veterans who (1) are disabled (2) 

have low income and resources, and 

(3) served during a period of 

wartime.

Non-Service Connected Benefits: 

VA Improved Pension Program 

• Not dependent upon service–connected 

disability to qualify. 

• Assists families who need additional 

monies to help care for ailing veterans 

who have low income and resources. 

• VA’s version of SSI benefits. 

• Spouse is not eligible if veteran is living.

VA Improved Pension Program: 

Three Tiers of Benefits 

1. Low Income Pension 

2. Housebound Benefits 

3. Aid and Attendance Benefits


Three Tiers of Benefits (cont’d) 

Housebound benefits and Aid and 

Attendance benefits are 

supplements paid in addition to 

the basic Low Income Pension to 

certain veterans to cover the 

additional costs of care for their 

added disabilities.

Basic Eligibility Criteria for VA 

Improved Pension Program 

All of the following criteria must be 

met before a veteran or widow(er) 

of a veteran can receive Improved 

Pension benefits: 

a. The veteran must have served at 

least 90 days of active duty service, 

one day of which must have been 

during a wartime period;


Improved Pension Program (cont’d.) 

In general, wartime is: 

World War I 

World War II–Dec. 7, 1941 – Dec. 31, 1946 

Korean War–June 27, 1950 – Jan. 31, 1955 

Vietnam War – Aug. 5, 1964 – May 7, 1975 

Gulf War – August 2, 1990 through date to 

be set by law by Presidential Proclamation


Improved Pension Program (cont’d.) 

b. The veteran must have received a 

discharge other than dishonorable; 

c. The claimant must have limited 

income and assets; and, 

d. The claimant must be permanently 

and totally disabled, or be over age 65.

COUNTABLE INCOME 

“Countable” income for VA purposes 

(“IVAP”) includes income from most 

sources, including earnings, disability 

and retirement payments, interest and 

dividend payments from annuities, net 

income from farming or business, waived 

income and income from joint accounts 

(in proportion to ownership interest).

EXCLUDED FROM 

“COUNTABLE” INCOME 

Public assistance such as SSI, IRA 

interest, income tax refunds, loans 

(including reverse mortgages), 

insurance dividends, life insurance 

proceeds representing a return of 

premiums, and profit from the sale 

of property (other than from a 

regular business).

EXAMPLE 

As of December 1, 2016, the 

income eligibility limit ( “Maximum 

Annual Pension Rate” or “MAPR”) 

for a single veteran w/o children is 

less than $12,907. Medical 

expenses may be deducted from 

countable income if they exceed 

5% of the income limit ($645, for 

the single veteran w/o children).

Excess Income 

Although most veterans have income that 

exceeds the permissible family income limits, 

unreimbursed medical expenses paid by the 

claimant may be used to reduce the 

claimant’s countable income. Unreimbursed 

medical expenses that may reduce income include: 

doctor’s fees, dentist’s fees, prescription glasses, 

Medicare premium deductions and co-payments, 

prescription medications, health insurance 

premiums, transportation to physician offices, 

therapy, and funeral expenses.

Excess Income (cont’d) 

The most beneficial unreimbursed 

expenses that may reduce 

countable income are the costs of 

home health care, assisted living 

facilities, or nursing homes.

Net Worth: Standard 

The VA considers the net worth of the 

individual seeking benefits, excluding 

the value of the person’s home, 

furnishings, and car. The standard as to 

whether a person will be eligible for 

benefits is whether the person has 

“sufficient means” to pay for his or 

her care.

Net Worth: Standard (cont’d) 

Assets that are counted toward the 

“sufficient means” analysis include bank 

accounts, certificates of deposit, money 

market accounts, investment accounts, 

annuities, retirement accounts, life 

insurance cash surrender values, etc.

How Much Does VA Pay? 

VA pays the difference between the 

maximum annual pension rate 

(MAPR), a yearly limit set by 

Congress, and the veteran’s countable 

family income. This difference is 

generally paid in 12 equal monthly 

payments rounded down to the 

nearest dollar.

Planning For 

VA Pension Eligibility 

• Retitle assets to joint names (joint owner not in 

veteran’s household) 

• Gift assets (donee not in veteran’s household) 

• Transfers with retained life estate not recognized 

• Assets in SNT are countable 

• Personal Services Contract 

• Caveat: Medicaid transfer rules are different!

Look-Back Period For 

VA Pension Eligibility 

• Currently, there is no look-back 

period. 

• GAO recently recommended that 

Congress establish asset transfer 

look-back period, with associated 

penalties, for non-service connected 

pension applicants.


Housebound Benefits 

Pension benefits with a 

Housebound supplement are 

available to a veteran or widow(er) 

of a veteran who is disabled (or 

over age 65), confined to the home 

and financially eligible.


Aid and Attendance 

• Available to eligible veterans and 

surviving spouses who require the 

regular attendance of a person to assist 

them in eating, dressing, undressing or 

taking care of the needs of nature. 

• Also includes individuals who are 

blind, in a nursing home because of 

mental or physical incapacity.


Aid and Attendance 

To qualify medically, a veteran or 

surviving spouse must meet one 

of the following conditions: 

1. Is bedridden, or 

2. Requires the aid of another 

person to perform activities of 

daily living


Aid and Attendance (cont’d) 

3. Is a nursing home resident, 

as a result of a mental or 

physical incapacity, or 

4. Is blind or nearly blind in 

both eyes.

The Medicaid Effect 

Since both Housebound and A&A 

Benefits are supplements to the basic 

Low Income Pension, the supplemental 

benefits are exempt when determining 

the veteran’s eligibility for ALF 

Medicaid. Low Income pension may 

be exempt in determining Medicaid 

eligibility when UMEs exceed the Low 

Income Pension benefit amount.

The Medicaid Effect (cont.) 

If a claimant is in a NH or ALF 

receiving Medicaid, the VA pension 

benefits payable is reduced to $90 

per month.

Accreditation by the VA 

As of June 23, 2008, the VA began 

REQUIRING that ANYONE who assists 

a veteran or family member with the 

preparation, presentation and 

prosecution of a claim for benefits be 

accredited by and through the VA 

BEFORE they can legally provide 

assistance.

Who Can Charge Fees, 

and When? 

Veterans may obtain free assistance 

with completing an application for 

benefits from accredited veteran 

services organizations and others who 

are accredited. No organization nor 

individual, including lawyers, can 

charge for the preparation, 

presentation, and prosecution of an 

initial claim.


and When? (cont’d) 

But, if a claim is denied or 

approved for fewer benefits than 

are expected, a claimant may hire 

and pay an accredited attorney or 

other accredited representative to 

assist with an appeal after a 

Notice of Disagreement has been 

filed.


and When? (cont’d) 

Only accredited agents and 

attorneys may receive fees 

from claimants for services 

provided in connection with 

representation.

THANK YOU FOR ATTENDING 

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VA Pension Benefits

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