Veterans’ Benefits: Pension Benefit Programs
Noah P. Meyerson
Analyst in Income Security
Carol D. Davis
Information Research Specialist
June 29, 2015
Congressional Research Service
7-5700
www.crs.gov
RS22804


Veterans’ Benefits: Pension Benefit Programs

Summary
This report discusses selected veteran pension programs administered by the Department of
Veterans Affairs (VA):
• The Improved Disability Pension makes payments to certain low-income
veterans. In FY2013, the program paid an average benefit of about $11,300 to
about 310,000 beneficiaries.
• The Improved Death Pension makes payments to certain low-income spouses
or children of deceased veterans. In FY2013, the program paid an average benefit
of about $7,000 to about 210,000 beneficiaries.
• The Medal of Honor Pension makes payments to veterans who were awarded
the Medal of Honor. Fewer than 100 veterans qualify for that pension.
This report also discusses the eligibility criteria and current benefit levels of these programs and
provides data on the number of pension beneficiaries and average annual benefit amounts for
FY1999 through FY2013.

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Veterans’ Benefits: Pension Benefit Programs

Contents
Overview .......................................................................................................................................... 1
The Improved Disability Pension Benefit........................................................................................ 1
Maximum Annual Benefit Amount ........................................................................................... 1
Aid and Attendance ............................................................................................................. 2
Housebound ......................................................................................................................... 3
Eligibility Criteria ...................................................................................................................... 3
Combat/Period of Service Criteria for Pension Eligibility .................................................. 3
Income/Net Worth Limits for Pension Eligibility ............................................................... 4
Disability/Age Requirements for Pension Eligibility .......................................................... 5
Other Pension-Related Provisions ............................................................................................. 5
Interaction with Social Security and Supplemental Security Income........................................ 5
The Improved Death Pension Benefit .............................................................................................. 6
Deceased Veteran ....................................................................................................................... 6
Surviving Spouse Eligibility Criteria for Death Pension ........................................................... 6
Surviving Child Eligibility Criteria for Death Pension ............................................................. 6
Income Criteria for Death Pension ............................................................................................ 6
Maximum Benefit Amount ........................................................................................................ 7
Medal of Honor Pension .................................................................................................................. 7
Pension Beneficiaries ....................................................................................................................... 7

Tables
Table 1. Number of VA Pension Beneficiaries and Average Annual Benefit Amount (in
dollars) by Category, FY1999-FY2013 ........................................................................................ 8

Contacts
Author Contact Information............................................................................................................. 8
Acknowledgments ........................................................................................................................... 8

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Veterans’ Benefits: Pension Benefit Programs

Overview
The Department of Veterans Affairs (VA) administers pension programs for low-income veterans
and their surviving spouses and dependent children. This report discusses the Improved Disability
Pension, which makes payments to certain low-income veterans, and the Improved Death
Pension, which makes payments to certain low-income surviving spouses and dependent children
of deceased veterans. To qualify for either program, individuals must have become eligible for
payments on or after January 1, 1979. Both pension programs were created by P.L. 95-588, the
Veterans and Survivors Pension Improvement Act of 1978.
In addition, this report discusses a special pension program for Medal of Honor recipients.
This report does not discuss several other pension programs that are administered by the VA, such
as the Old Law Disability Pension and the Section 306 Disability Pension, which make payments
to low-income veterans, and the Old Law Death Pension and the Section 306 Death Pension,
which make payments to low-income surviving spouses and dependent children of veterans; these
programs apply only to veterans and their survivors who became entitled to such benefits before
1979.
This report also does not discuss pension programs for veterans of specific periods of war before
World War I, such as the Civil War, the Indian Wars, and the Spanish-American War.
Finally, this report does not address the military retirement system. For information on that
system, see CRS Report RL34751, Military Retirement: Background and Recent Developments,
by Kristy N. Kamarck.
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 is reduced by the veteran’s “countable” income. 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 whether the beneficiary
needs additional care or is housebound.2 The annual benefit amounts are adjusted automatically
by law each year to reflect a cost-of-living adjustment (COLA) equal to the COLA for Social
Security benefits.3 For example, effective with the payment for December 1, 2014 (which was
made in January 2015), the maximum annual amount for the pension benefit is $12,868 for a

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. For more information on the Social Security COLA, see CRS Report 94-803, Social Security: Cost-
of-Living Adjustments
, by Gary Sidor.
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veteran and $16,851 for a veteran with one dependent. If two veterans are married to each other,
the maximum annual amount is $16,851, the same as for a veteran with one dependent.
The maximum annual benefit amount is higher if the veteran either requires additional care,
known as “aid and attendance,” or is housebound.4 An individual’s benefit can be increased for
only one of those reasons; the beneficiary cannot receive both Aid and Attendance benefits and
Housebound benefits.
Aid and Attendance
Claimants eligible for the pension may be eligible for a higher benefit when additional care and
services (aid and attendance) are needed, such as assisted living or in-home care. For payments
made in 2015, the maximum annual benefit for a claimant without dependents who is in need of
aid and attendance is $21,466.
The necessity for aid and attendance is presumed when either (1) the claimant is a patient in a
nursing home or (2) the claimant is blind or has a severe visual impairment.5 The necessity for aid
and attendance is also 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 for the beneficiary to receive a higher
maximum pension benefit due to the need for aid and attendance. The totality of the
circumstances guides the determination of need. The pension claimant does not need to
demonstrate the need for round-the-clock care, but only a regular and ongoing need for the aid
and attendance of another person.
Under current law, a veteran without a spouse or dependents who lives 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.6 This provision expires on September 30, 2016.

4 Department of Veterans Affairs, Veterans Pension Rate Table – Effective 12/1/14, at http://www.benefits.va.gov/
PENSION/current_rates_veteran_pen.asp.
5 Definitions of aid and attendance and housebound can be found in 38 C.F.R. §3.351. For a general overview, see U.S.
Department of Veterans Affairs, Pension: Aid and Attendance and Housebound, at http://benefits.va.gov/pension/
aid_attendance_housebound.asp.
6 38 U.S.C. §5503. Veterans who reside in state veterans nursing homes where the VA pays a per diem for their care
may not have their pension reduced.
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Housebound
Claimants eligible for the pension may be eligible for a higher benefit when they are housebound.
For payments made in 2015, the maximum annual benefit for a housebound claimant without
dependents is $15,725.
A pension claimant must meet either of the following requirements to have a higher maximum
pension amount due to being housebound:
• The claimant has 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 has a single permanent disability evaluated as 100% disabling and
also has another disability, or combination of disabilities, evaluated as 60% or
more disabling.
Essentially, a person is 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 is 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 Criteria for Pension Eligibility
A veteran must meet military service requirements related to combat, or service during a period of
war, to be eligible for the pension benefit.7 Specifically, a veteran must have been discharged
from military service under conditions other than dishonorable and must have served in the
active military either
• for at least 90 days during a period of war;8
• 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.

7 38 U.S.C. §1521(j).
8 For information on periods of war, see CRS Report RS21405, U.S. Periods of War and Dates of Recent Conflicts, by
Barbara Salazar Torreon.
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Income/Net Worth Limits for Pension Eligibility
As noted previously, the pension benefit for a veteran who meets the other eligibility
requirements (combat/period of service and age or disability) is calculated by subtracting the
veteran’s annual countable income from the annual maximum benefit; that is, the benefit amount
is reduced dollar-for-dollar by countable income. A veteran with annual countable income above
the annual maximum benefit amount receives no pension benefit. In addition, no benefit is paid to
a veteran who has significant wealth, defined as a net worth large enough that it would be
reasonable for part of that wealth to be used for the veteran’s maintenance.9
Annual countable income includes income from nearly all sources. However, several specific
sources of income are excluded from annual countable income determinations, including10
• 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);11 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 requires aid and attendance) travel expenses above reasonable
expenses for a nondisabled person.
Section 509 of the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of
2012, P.L. 112-154, expanded and clarified the exclusions to specifically exclude expenses for
replacement or repair of equipment, vehicles, items, money, or property as a result of any

9 38 U.S.C. §1522. Neither law nor regulation specifies an amount of wealth that would make a veteran ineligible.
10 38 U.S.C. §1503.
11 This provision was part of the Veterans’ Benefits Act of 2010 (P.L. 111-275).
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accident, theft or loss, or casualty loss, up to the greater of fair market value or replacement
value.
Disability/Age Requirements for Pension Eligibility
To be eligible for the pension benefit, a veteran must be totally disabled due to a non-service
connected injury, illness, or combination thereof that is not a result of the veteran’s willful
misconduct.12 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. However, if the veteran’s service-connected
disabilities have contributed to making the veteran eligible for the pension benefit, the veteran
receives the greater of the pension benefit or the VA disability compensation benefit (for the
service-connected disabilities).13 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 older, regardless of disability status (or disability rating), who meet
the other pension requirements (combat/period and income/net worth).
Other Pension-Related Provisions
The pension benefit for a veteran convicted of a felony or misdemeanor is stopped beginning 61
days after the veteran is imprisoned, and it resumes 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 process, the veteran receives 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.14

12 38 U.S.C. §1513 and 38 U.S.C. §1521. The VA rates disability on a scale of 0% to 100% in 10% increments, with
100% being totally disabled and 0% indicating the presence of a service-connected disability, but one that is not severe
enough to warrant compensation. The rating is used for pension and for disability compensation determinations.
13 See “Disability Compensation” in CRS Report RL34626, Veterans’ Benefits: Disabled Veterans, by Noah P.
Meyerson et al.
14 For more information on the SSI program, see CRS Report 94-486, Supplemental Security Income (SSI), and CRS
Report RS20294, Supplemental Security Income (SSI): Income/Resource Limits and Accounts Exempt from Benefit
Determinations
, both by William R. Morton.
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The Improved Death Pension Benefit
The low-income surviving spouse or dependent child of a deceased veteran is eligible for the
Improved Death Pension Benefit if the deceased veteran and surviving spouse or dependent child
meet eligibility requirements.
Deceased Veteran
In general, survivors are eligible for the Improved Death Pension Benefit if the deceased veteran
met the veteran’s discharge and period of service requirements for the Improved Disability
Pension.15 However, survivors of an individual who had at least two years of honorable military
service and who died in military service but not in the line of duty are also eligible for the
Improved Death Pension.16
Surviving Spouse Eligibility Criteria for Death Pension
The surviving spouse cannot be remarried and must have been married to the deceased veteran:
• for at least one year17 (there is no minimum if the surviving spouse and veteran
had a child), or
• 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.18
Surviving Child Eligibility Criteria for Death Pension
Surviving children must be under the age of 18 (age 23 or under if in school) or must have
become incapable of self-care before the age of 18.
Income Criteria for Death Pension
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, current work income is excluded
from countable income if the income is not more than the income level at which a federal income

15 38 U.S.C. §1541(a) and §1542(a).
16 38 U.S.C. §1541(h).
17 Or previously married and the marriage was terminated prior to November 1, 1990. See the VA Survivors Pension
Factsheet at http://benefits.va.gov/benefits/factsheets/survivors/Survivorspension.pdf.
18 38 U.S.C. §1541(f).
19 38 U.S.C. §1541(g).
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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, any proceeds from a life
insurance policy on the veteran are 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 with the payment for December 1, 2014 (which was
made in January 2015), the maximum annual benefit amount is $8,630 for a surviving spouse
without a dependent child and $11,296 for a surviving spouse with a dependent child. (An
incremental benefit is paid for each additional dependent child.) Maximum annual benefit
amounts are higher if the surviving spouse is housebound or requires aid and attendance. For a
surviving child, the maximum annual benefit amount is $2,198.23
Medal of Honor Pension
A veteran who has been awarded a Medal of Honor is eligible for a monthly pension ($1,299.61
effective with the payment of December 1, 2014, which was paid in January 2015).24 Eligibility
for the pension is based solely on receipt of the Medal of Honor and is paid to any eligible
individuals who elect to receive it. Receipt of the special pension does not reduce any other
benefits under U.S. law. The benefit does not increase if a veteran receives more than one Medal
of Honor.25 The program is much smaller than the Improved Disability Pension and the Improved
Death Pension, because there are fewer than 100 living Medal of Honor recipients.26
Pension Beneficiaries
Table 1 shows the number of pension beneficiaries and the average annual benefit amount by
beneficiary category for FY1999-FY2013. In FY2013, 308,116 veterans received disability
pension benefits and 210,450 survivors received death pension benefits.

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 2014, the filing requirement for a single taxpayer is $10,150
for a single taxpayer under the age of 65, see Table 1.2014 Filing Requirements Chart for Most Taxpayers in IRS
Publication 501 available at http://www.irs.gov/publications/p501/ar02.html#en_US_2014_publink1000220687.
21 38 U.S.C. §1503(a)(10).
22 38 U.S.C. §1503(a)(12).
23 The annual benefit is divided into monthly payments. See the VA Survivors Pension Tables – Effective 12/1/14 at
http://www.benefits.va.gov/pension/current_rates_survivor_pen.asp.
24 See the VA Special Benefit Allowances rates for 2014 at http://www.benefits.va.gov/compensation/
special_Benefit_Allowances_2014.asp.
25 38 U.S.C. §1562.
26 Congressional Medal of Honor Society, “Archive Statistics,” at http://www.cmohs.org/medal-statistics.php.
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Table 1. Number of VA Pension Beneficiaries and Average Annual Benefit Amount
(in dollars) by Category, FY1999-FY2013
Number of Improved
Number of Improved
Disability Pension
Death Pension
Fiscal
Beneficiaries
Average Annual
Beneficiaries
Average Annual
Year
(Veterans)
Benefit Amount
(Survivors)
Benefit Amount
1999 378,712 $5,677 274,106 $2,509
2000 364,220 $5,917 257,106 $2,571
2001 348,052 $6,244 241,467 $2,682
2002 346,579 $6,564 230,267 $2,821
2003 346,555 $6,879 223,553 $2,950
2004 342,903 $7,135 215,253 $3,107
2005 335,787 $7,682 206,594 $3,351
2006 329,856 $8,173 200,636 $3,644
2007 322,875 $8,634 194,641 $3,962
2008 315,763 $9,006 195,612 $4,341
2009 314,245 $9,754 194,103 $4,999
2010 313,563 $10,080 198,832 $5,478
2011 313,665 $10,401 201,955 $5,905
2012 314,790 $11,038 207,453 $6,521
2013 308,116 $11,315 210,450 $6,988
Source: Congressional Research Service (CRS) based on data from Department of Veterans Affairs, Annual
Benefits Report
, various years, at http://www.benefits.va.gov/reports/annual_performance_reports.asp.

Author Contact Information

Noah P. Meyerson
Carol D. Davis
Analyst in Income Security
Information Research Specialist
nmeyerson@crs.loc.gov, 7-4681
cdavis@crs.loc.gov, 7-8994

Acknowledgments
Adam Salazar contributed to this report. Umar Moulta-Ali wrote a previous version of this report. Please
direct all inquiries to the current authors.
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