Veterans’ Benefits: Pension Benefit Programs
Christine Scott
Specialist in Social Policy
Carol D. Davis
Information Research Specialist
December 13, 2011
Congressional Research Service
7-5700
www.crs.gov
RS22804
CRS Report for Congress
Pr
epared for Members and Committees of Congress
Veterans’ Benefits: Pension Benefit Programs
Summary
The Department of Veterans Affairs (VA) administers several pension benefit programs for
veterans as well as their surviving spouses and dependent children. The most current pension
programs available (for those meeting the eligibility criteria on or after January 1, 1979) are the
Improved Disability Pension for certain low-income veterans and the Improved Death Pension for
certain low-income surviving spouses or children of veterans. There is also a special pension for
Medal of Honor recipients. This report describes these programs, including the eligibility criteria
and current benefit levels, and provides data on the number of pension beneficiaries in FY2010.
This report will be updated as needed to reflect legislative activity and changes to benefits or
eligibility requirements.
Congressional Research Service
Veterans’ Benefits: Pension Benefit Programs
Contents
Overview.......................................................................................................................................... 1
The Improved Disability Pension Benefit........................................................................................ 1
Maximum Annual Benefit Amount ........................................................................................... 1
Aid and Attendance ............................................................................................................. 2
Housebound......................................................................................................................... 2
Eligibility Criteria...................................................................................................................... 3
Combat/Period of Service ................................................................................................... 3
Income/Net Worth ............................................................................................................... 3
Disability/Age ..................................................................................................................... 4
Other.......................................................................................................................................... 5
Interaction with Social Security and Supplemental Security Income........................................ 5
The Improved Death Pension Benefit.............................................................................................. 5
Deceased Veteran....................................................................................................................... 5
Surviving Spouse....................................................................................................................... 5
Surviving Children .................................................................................................................... 6
Income ....................................................................................................................................... 6
Maximum Benefit Amount........................................................................................................ 6
Medal of Honor Pension.................................................................................................................. 7
Pension Beneficiaries....................................................................................................................... 7
Tables
Table 1. Pension Beneficiaries by Category and State, FY2010...................................................... 7
Contacts
Author Contact Information............................................................................................................. 8
Congressional Research Service
Veterans’ Benefits: Pension Benefit Programs
Overview
The Department of Veterans Affairs (VA) administers several pension programs for veterans and
their surviving spouses and dependent children. There are two types of pension programs
administered by the VA: (1) pension programs for veterans of specific periods of war; and (2)
pension programs for certain low-income veterans. The pension programs for specific periods of
war are for periods before World War I. They include pension programs for veterans, as well as
their surviving spouses and dependent children, of certain periods of war such as the Civil War,
the Indian Wars, and the Spanish-American War. The pension programs for certain low-income
veterans include the Old Law Disability Pension, the Section 306 Disability Pension, and the
Improved Disability Pension. The VA pension programs for certain low-income surviving spouses
and dependent children of veterans include the Old Law Death Pension, the Section 306 Death
Pension, and the Improved Death Pension.
In addition to the pension programs for certain periods of service, certain low-income veterans,
and surviving spouses and dependent children, the VA administers a special pension program for
Medal of Honor recipients.
This report will provide information on the most current pension programs—those programs for
which a veteran, a surviving spouse, or a dependent child becomes eligible on or after January 1,
1979—and on the special pension program for Medal of Honor recipients. The current pension
program for veterans is the Improved Disability Pension, which is for certain low-income
veterans. The current pension program for certain low-income surviving spouses and dependent
children of veterans is the Improved Death Pension. Both pension programs were created by P.L.
95-588, the Veterans and Survivors Pension Improvement Act of 1978.
The Improved Disability Pension Benefit
The Improved Disability Pension provides a monthly benefit to certain low-income veterans. The
monthly benefit is based on a maximum annual benefit, and the actual benefit received by the
veteran reflects a reduction (from the maximum amount) of the veteran’s “countable” income.
This means that a veteran with countable income above the maximum annual benefit amount is
not eligible for the pension.
Maximum Annual Benefit Amount
The maximum annual benefit amounts for the veterans’ pension benefit are set in statute1 and are
based on the presence of a spouse or dependent child (or children) and the need for aid and
attendance.2 The annual benefit amounts are adjusted automatically by law3 each year to reflect a
cost-of-living adjustment (COLA) equal to the COLA for Social Security benefits. For example,
beginning December 1, 2011, the maximum annual amount for the pension benefit for 2012 is
1 38 U.S.C. §1521(b)-§1521(g).
2 Aid and attendance is provided when a veteran needs another person’s help to perform activities of daily living, such
as eating, dressing, or taking a shower.
3 38 U.S.C. §5312.
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Veterans’ Benefits: Pension Benefit Programs
$12,256 for a veteran and $16,051 for a veteran with one dependent.4 If two veterans are married
to each other, the maximum annual amount is $16,051, the same as for a veteran with one
dependent.5 The maximum annual benefit amount will be higher if the veteran is housebound or
requires aid and attendance.6
Aid and Attendance
Claimants eligible for the pension may be eligible for a higher maximum benefit amount when
additional care and services (aid and attendance) are needed, such as assisted living or in home
care. The necessity for aid and attendance is presumed when either (1) the claimant is a patient in
a nursing home or (2) when the claimant is blind or has a severe visual impairment. The necessity
for aid and attendance will also be considered to exist when either
• the veteran requires the aid and assistance of another person in order to perform
personal functions required in everyday living, such as bathing, feeding, dressing,
attending to the wants of nature, adjusting prosthetic devices, or protecting
himself or herself from the hazards of his or her daily environment; or
• the veteran is bedridden, in that his or her disability or disabilities require that he
or she remain in bed, apart from any prescribed course of convalescence or
treatment.
All the factors listed above do not have to be present to receive a higher maximum pension
benefit because of the need for aid and attendance. The totality of the circumstances will guide
the determination of need. The pension claimant also does not need to show the need for round-
the-clock care, but only that there is a regular and ongoing need for the aid and attendance of
another person.
Under current law, a veteran without a spouse or dependents who is in a nursing home where care
is being provided or paid for by the VA or Medicaid may have his or her pension reduced to $90 a
month.7
Housebound
A pension claimant must meet either of the following requirements to have a higher maximum
pension amount due to being housebound:
• The claimant must have a single permanent disability evaluated as 100%
disabling and, due to such disability, the claimant is permanently and
substantially confined to his or her immediate premises.
• The claimant must have a single permanent disability evaluated as 100%
disabling and must also have another disability, or disabilities, evaluated as 60%
or more disabling.
4For more information on the Social Security COLA, see CRS Report 94-803, Social Security: Cost-of-Living
Adjustments, by Gary Sidor.
5 For more information on current rates, please see the Department of Veterans Affairs website.
6 Definitions of aid and attendance and housebound can be found in 38 C.F.R. 3.351.
7 38 U.S.C. 5503. Expires September 30, 2016.
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Essentially, a person will be considered “housebound” when he or she is substantially confined to
a dwelling and the immediate premises due to a disability and it is reasonably certain that this
confinement will continue throughout that person’s lifetime. A “dwelling” includes not only the
claimant’s home, but also any other place he or she is living, such as a care facility. Additionally,
if the claimant is unable to leave the dwelling without the assistance of another, such as when a
disability prevents the claimant from being able to drive, the claimant will be considered
housebound.
Eligibility Criteria
To be eligible for the pension benefit, a veteran must meet eligibility criteria related to
combat/period of service; income/net worth; and age or disability.
Combat/Period of Service
A veteran must meet military service requirements related to combat, or service during a period of
war to be eligible for the pension benefit.8 Specifically, a veteran must have been discharged from
military service under conditions other than dishonorable and must have served in the active
military:
• for at least 90 days during a period of war;9
• during a period of war and was released from service for a service-connected
disability;
• for 90 or more consecutive days which began or ended during a period of war; or
• for a total of 90 days or more in two or more separate periods of service during
one or more periods of war.
Income/Net Worth
As noted previously, the pension benefit for a veteran who meets the other eligibility
requirements (combat/period of service and disability/age) is calculated by subtracting the
veteran’s annual countable income from the statutory annual maximum benefit. This means that a
veteran with annual countable income above the annual maximum benefit amount will receive no
pension benefit. A veteran with annual countable income below the annual maximum benefit
amount will have his or her benefit reduced dollar for dollar by the amount of annual countable
income. In addition, a veteran may not have a net worth, or estate, large enough that it would be
reasonable for part of the estate to be used for the veteran’s maintenance.10
Annual countable income includes income from nearly all sources. However, there are several
specific sources of income that are not included in determining annual countable income:11
8 38 U.S.C. §1521(j).
9 For information on periods of war, see CRS Report RS21405, U.S. Periods of War and Dates of Current Conflicts, by
Barbara Salazar Torreon.
10 38 U.S.C. §1522.
11 38 U.S.C. §1503.
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Veterans’ Benefits: Pension Benefit Programs
• donations from public welfare or private relief organizations;
• pension benefits administered by the VA;
• expenses paid by a veteran’s spouse (or the veteran’s surviving spouse or child)
for the veteran’s last illness, burial, or debts;
• amounts paid by the veteran for the last illness and burial of the veteran’s spouse
or child;
• amounts paid by a veteran’s spouse for the last illness and burial of the veteran’s
child;
• insurance reimbursement for property casualty loss (up to the greater of fair
market value or replacement value);
• profit from disposing of personal or real property (other than in the course of
business);
• amounts in joint accounts the veteran acquires by the death of the other owner(s);
• amounts paid by the veteran, spouse, or child for unreimbursed medical expenses
(limited to the excess above 5% of the pension benefit);
• up to $5,000 paid as a veteran’s benefit due to injury or disease by a state or
municipality (for determinations of income for calendar years beginning after
October 1, 2011);12 and
• amounts paid by a veteran or surviving spouse to pursue education, vocational
rehabilitation, or training, including tuition, fees, books, and, if the veteran or
surviving spouse needs aid and attendance, travel expenses above reasonable
expenses for a nondisabled person.
Disability/Age
To be eligible for the pension benefit, the veteran must be totally disabled13 due to non-service
connected injuries or illnesses that are not a result of the veteran’s willful misconduct.14 However,
to determine if a veteran is totally disabled, the Secretary of Veterans Affairs may combine the
disability ratings for service-connected disabilities with the disability ratings for non-service
connected disabilities. The restriction is that if the veteran’s service-connected disabilities have
contributed to making the veteran eligible for the pension benefit, the veteran will receive the
greater of the pension benefit or the disability compensation benefit (for the service-connected
disabilities). A veteran cannot receive both disability compensation and the pension benefit.
P.L. 107-103, the Veterans Education and Benefits Expansion Act of 2001, extended the pension
benefit to veterans aged 65 or over, regardless of disability status (or disability rating), who meet
the other pension requirements (combat/period and income/net worth).
12 Provision was part of the Veterans’ Benefits Act of 2010 (P.L. 111-275).
13 The VA rates disability on a scale of 0-100 in 10% increments, with 100% being totally disabled. The rating is used
for pensions and for disability compensation. For more information on disability evaluation by the VA, see the “VA
Disability Evaluation” section of CRS Report RL33991, Disability Evaluation of Military Servicemembers, by
Christine Scott and Don J. Jansen.
14 38 U.S.C. §1513 and 38 U.S.C. §1521.
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Veterans’ Benefits: Pension Benefit Programs
Other
The pension benefit for a veteran convicted of a felony or misdemeanor will be stopped
beginning 61 days after the veteran is imprisoned, and it will resume when the imprisonment
ends. The veteran’s pension benefit may be paid to the veteran’s spouse or dependent children
during the veteran’s imprisonment.
To apply for the pension benefit, a veteran must complete and submit VA Form 21-526, which is
the application form for both disability compensation and the pension benefit. As part of the
claims processing, the veteran will receive a disability rating, which may require a physical
examination.
Interaction with Social Security and Supplemental Security Income
Countable income for the veterans’ pension benefit includes any Social Security benefits
received. Therefore, the receipt of Social Security benefits can reduce or eliminate a veteran’s
pension benefit. Countable income does not include any Supplemental Security Income (SSI)
payments received. However, because the SSI program includes veterans’ benefits as unearned
income in calculating the income limitations for SSI, a veteran’s pension benefit could reduce the
veteran’s SSI benefit.15
The Improved Death Pension Benefit
The surviving spouse or dependent child of a veteran may be eligible for the Improved Death
Pension Benefit if eligibility requirements with respect to the deceased veteran and surviving
spouse or dependent child are met, along with an income requirement.
Deceased Veteran
The deceased veteran must have met the military service requirements for the Improved
Disability Pension with respect to the veteran’s discharge and period of service.16 However, for
the Improved Death Pension, an individual who has at least two years of honorable military
service and who dies in military service but not in the line of duty is also considered a veteran.17
Surviving Spouse
The surviving spouse cannot be remarried and must have been married to the deceased veteran:18
15 For more information on the SSI program, see CRS Report 94-486, Supplemental Security Income (SSI), by Umar
Moulta-Ali, and CRS Report RS20294, Supplemental Security Income (SSI): Beneficiary Income/Resource Limits and
Accounts Exempt from Benefit Determinations, by Umar Moulta-Ali.
16 38 U.S.C. §1541(a) and §1542(a).
17 38 U.S.C. §1541(h).
18 38 U.S.C. §1541(f).
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• for at least one year (there is no minimum if the surviving spouse and veteran had
a child), and
• must have been wed before December 14, 1944, for deceased veterans of the
Mexican border period and World War I; before January 1, 1957, for deceased
veterans of World War II; before February 1, 1965, for deceased veterans of the
Korean conflict; before May 8, 1985, for deceased veterans of the Vietnam era;
or before January 1, 2001, for deceased veterans of the Persian Gulf War.
Surviving Children
Surviving children must be under the age of 18 (or under age 23 if in school) or must have
become incapable of self-care before the age of 18.
Income
The countable income for a surviving spouse or child is calculated like that of a veteran for the
Improved Disability Pension. However, for a surviving spouse with custody of a deceased
veteran’s child, part of the child’s income that is available to the surviving spouse may be
included in countable income.19 For a veteran’s surviving child, his or her current work income is
excluded from countable income, if the income is not more than the income level at which a
federal income tax return must be filed20 plus postsecondary education or vocational
rehabilitation or training expenses paid by the child.21 In addition, for a surviving spouse or child,
the proceeds from a life insurance policy on the veteran is excluded from countable income.22
Maximum Benefit Amount
The maximum annual benefit amounts for surviving spouses and dependent children, like those
for veterans, are set in statute and are automatically increased to reflect the COLA for Social
Security benefits. For example, effective December 1, 2011,23 the maximum annual benefit
amount in 2012 for a surviving spouse without a dependent child is $8,219, and $10,759 for a
surviving spouse with a dependent child (there is an incremental amount for each dependent
child). Maximum annual benefit amounts are higher if the surviving spouse is housebound or
requires aid and attendance.24 For a surviving child, the maximum annual benefit amount is
$2,093.
19 38 U.S.C. §1541(g).
20 The income level at which a tax return must be filed (the filing requirement) is equal to the sum of the standard
deduction and personal exemption amounts. For tax year 2012, the filing requirement for a single taxpayer is $9,750 for
a single taxpayer under age 65.
21 38 U.S.C. §1503(a)(10).
22 38 U.S.C. §1503(a)(12).
23 For more information on the Social Security COLA, see CRS Report 94-803, Social Security: Cost-of-Living
Adjustments, by Gary Sidor.
24 For more information on current rates, please see the Department of Veterans Affairs website.
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Veterans’ Benefits: Pension Benefit Programs
Medal of Honor Pension
A veteran who has been awarded a Medal of Honor is eligible for a monthly pension ($1,237 as
of December 1, 2011).25 Eligibility for the pension is based solely on receipt of the Medal of
Honor, and receipt of the special pension (the Medal of Honor recipient must elect to receive the
special pension) does not reduce any other benefits under U.S. law. A veteran who has received
more than one Medal of Honor is, however, limited to receiving only one Medal of Honor
pension benefit.26
Pension Beneficiaries
Table 1 shows the number of pension beneficiaries by category and by state for FY2010. In
FY2010, there were 313,563 veterans receiving pension benefits. In addition, 186,170 surviving
spouses and 12,662 surviving children were receiving pension benefits.
Table 1. Pension Beneficiaries by Category and State, FY2010
Surviving
Surviving
State Veteran
Spouse
Children Total
Alabama
9,245
10,151
253
19,649
Alaska
289
62
2
353
Arizona
5,349
1,872
83
7,304
Arkansas
4,756
2,600
144
7,500
California
25,450
9,997
1,006
36,453
Colorado
3,562
1,350
94
5,006
Connecticut
1,980
1,580
145
3,705
Delaware
526
369
44
939
District Of Columbia
755
362
29
1,146
Florida
22,397
10,687
389
33,473
Georgia
11,118
8,355
314
19,787
Hawai
690
179
16
885
Idaho
1,418
418
34
1,870
Illinois
9,011
4,052
526 13,589
Indiana
5,012
2,836
253
8,101
Iowa
3,446
2,082
201
5,729
Kansas
2,748
1,300
114
4,162
Kentucky
5,665
3,749
176
9,590
Louisiana
7,632
5,180
248
13,060
Maine
2,190
733
80
3,003
Maryland
3,271
1,915
188
5,374
Massachusetts
4,096
2,326
223
6,645
Michigan
9,939
5,154
396
15,489
Minnesota
4,240
2,177
241
6,658
Mississippi
4,801
4,218
173
9,192
Missouri
8,139
4,730
321
13,190
25 The pension benefit was increased to $1,000 and a COLA was provided by P.L. 107-330, the Veterans Benefits Act
of 2002.
26 38 U.S.C. §1562.
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Veterans’ Benefits: Pension Benefit Programs
Surviving
Surviving
State Veteran
Spouse
Children Total
Montana
1,576
453
34
2,063
Nebraska
1,630
711
144
2,485
Nevada
3,075
847
33
3,955
New Hampshire
875
456
51
1,382
New Jersey
3,081
2,183
270
5,534
New Mexico
2,618
1,172
61
3,851
New York
13,516
10,064
1,154
24,734
North Carolina
9,335
7,332
325
16,992
North Dakota
824
398
44
1,266
Ohio
15,716
7,783
1,007
24,506
Oklahoma
6,289
2,968
173
9,430
Oregon
5,536
1,542
129
7,207
Pennsylvania
14,096
10,705
649
25,450
Rhode Island
983
575
50
1,608
South Carolina
6,543
5,526
146
12,215
South Dakota
1,480
713
49
2,242
Tennessee
8,692
6,607
277
15,576
Texas
24,966
13,793
788
39,547
Utah
1,531
776
55
2,362
Vermont
439
182
39
660
Virginia
5,776
3,865
408
10,049
Washington
5,380
1,841
176
7,397
West Virginia
3,577
1,939
119
5,635
Wisconsin
5,519
2,271
379
8,169
Wyoming
484
184
13
681
Puerto Rico
10,902
8,633
150
19,685
Territories and Other
1,399
4,217
246
5,862
Total 313,563
186,170
12,662
512,395
Source: Table prepared by the Congressional Research Service (CRS) using data provided by the Department
of Veterans Affairs.
Author Contact Information
Christine Scott
Carol D. Davis
Specialist in Social Policy
Information Research Specialist
cscott@crs.loc.gov, 7-7366
cdavis@crs.loc.gov, 7-8994
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