A guide to veterans pension

What is VA Pension?

Generally, the VA offers two types of needs-based pensions: One, a Veterans Pension (available to eligible wartime veterans); and two, Death Pension (available to unremarried surviving spouses, or unmarried minor dependent children of deceased eligible wartime veterans.)

What is Veterans Pension?

Veterans Pension is a needs-based benefit paid to wartime veterans who have limited or no income, and who are age 65 or older, or, if under 65, who are permanently and totally disabled, not due to their own willful misconduct. (Veterans seriously disabled may qualify for Aid and Attendance or Housebound benefits which are benefits paid in addition to the basic pension rate.)

What is Death (Widows) Pension?

Death Pension is a needs-based benefit paid to unremarried surviving spouses, or an unmarried minor children of a deceased wartime veterans. (Survivors seriously disabled may qualify for Aid and Attendance or Housebound benefits which are benefits paid in addition to the basic pension rate.)

How do I know if I’m eligible?

The general criteria for determining eligibility for either pension are:

— One, the veteran’s military discharge must have been under other than dishonorable conditions, and

— Two, the veteran served at least 90 days of active military service — one day of which was during a period of war (If he/she entered active duty after Sept. 7, 1980, the veteran must have served at least 24 months or the full period for which called or ordered to active duty.), and

— Three, you are the surviving spouse or unmarried dependent child of a deceased qualifying veteran (see 1 and 2 above), and

— Four, your “family” countable income is below the yearly limit set by Congress.

How much does it pay?

VA pays the difference between your countable income and the yearly income limit (see below). The difference is generally paid in 12 equal monthly payments.

What is the current yearly ‘countable income’ limit?

The income limits for veterans and survivors are different, although each increases with the number of eligible dependents.

What is considered

‘countable income’?

This includes household income received from sources, such as; earnings, disability and retirement payments, interest and dividends, net income from farming or business, etc.

Are there any exclusions to income to reduce my total countable income?

Yes, there are exclusions. The following are examples of the types of exclusions or deductibles to countable income:

— One, final expenses of the veteran’s last illness and burial paid by the surviving spouse or eligible children.

— Two, public assistance such as Supplemental Security Income (SSI), welfare benefits, and some wages earned by dependent children is not counted toward the yearly limit, however all income should be reported. VA will exclude any income that the law allows.

— Three, a portion of un-reimbursed medical expenses paid by the claimant.

— Four, certain other expenses, such as education expenses of the claimant.

What about ‘net worth’?

Net worth means the net value of the assets of the veteran, surviving spouse and/or eligible children.  Assets include cash, bank accounts, stocks, bonds, mutual funds and any property other than the principle residence and a reasonable lot area. There is no set limit on how much net worth a claimant can have, but net worth cannot be excessive. The decision as to whether a claimant’s net worth is excessive depends on the facts of each individual case. All net worth should be reported and VA will determine if a claimant’s assets are sufficiently large that the claimant could live off these assets for a reasonable period of time. VA’s needs-based programs are not intended to protect substantial assets or build up an estate for the benefit of heirs.

How do I apply?

Veterans may complete VA Form 21-526, “Veteran’s Application for Compensation and/or Pension” and survivors may complete VA Form 21-534, “Application for Dependency and Indemnity Compensation, Death Pension and Accrued Benefits by Surviving Spouse or Child”, and mail it to the VA Regional Office in Honolulu along with copies of applicable records such as military discharge documents, dependency records (marriage & children’s birth certificates), death certificates, etc. Instructions for completing the form(s) are included with the forms.

Or you may call the Kaua‘i Office of Veterans’ Services at: 241-3348/3346 to make an appointment to receive one-on-one assistance. These services are provided free-of-charge and client information is always kept strictly confidential.

For more information, check out Chapter 3 of the 2009 edition of the Federal Benefits for Veterans, Dependents and Survivors Handbook, and the VA Web site at www.va.gov.

• A benefits counselor for the Hawai‘i Office of Veterans’ Services, Tony Elliott is accredited by the Department of Veterans Affairs to prepare, present and prosecute benefits claims.