Veterans Benefits Administration (VBA): Pension Programs

Veterans Benefits Administration (VBA):
September 3, 2020
Pension Programs
Heather M. Salazar
Within the Department of Veterans Affairs (VA), the Veterans Benefits Administration (VBA)
Analyst in Veterans Policy
administers three veteran pension programs. These programs provide monthly benefits to

wartime service veterans discharged under other than dishonorable conditions or to their
survivors who meet specific age or disability requirements and have limited incomes. Two of

VA’s main VBA pension programs are needs-based, unlike VA’s disability compensation
program.
 The Veterans Pension (also known as the Improved Disability Pension) makes payments to certain
disabled, low-income veterans. In FY2019, the program paid an average annual benefit of $12,538 to
239,114 beneficiaries.
 The Survivors Pension (also known as the Improved Death Pension) makes payments to certain low-
income spouses or children of deceased veterans. In FY2019, the program paid an average annual benefit
of $8,976 to about 170,037 beneficiaries.
A third pension program is available to veterans who received the Medal of Honor. Unlike the other two pension programs, it
is not a needs-based or income-based program; the only requirement is having received the Medal of Honor.
 The Medal of Honor Pension makes payments to veterans who were awarded the Medal of Honor. There
are fewer than 70 Medal of Honor recipients living who qualify for this pension. This pension program
pays a monthly benefit of $1,388.68—equivalent to $16,664.16 annually—effective December 12, 2019.
This report discusses the eligibility criteria and current benefit levels of th ese programs. In addition, the report provides data
on the number of pension beneficiaries and the average annual benefit amounts for FY1999 through FY2019.

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Contents
Overview ....................................................................................................................... 1
Veterans (Improved Disability) Pension .............................................................................. 1

Eligibility Criteria...................................................................................................... 1
Period of Service Requirement ............................................................................... 2
Disability Requirement ......................................................................................... 2
Age Requirement ................................................................................................. 3
Net Worth Requirement......................................................................................... 3

Maximum Annual Pension Rate ................................................................................... 4
Aid and Attendance .............................................................................................. 5
Housebound ........................................................................................................ 6
Incarcerated Veterans Pension Provision ....................................................................... 6
Survivors (Improved Death) Pension.................................................................................. 7
Eligibility Criteria...................................................................................................... 7
Surviving Spouse Requirement............................................................................... 7
Surviving Child Requirement ................................................................................. 8
Net Worth Requirement......................................................................................... 8
Maximum Annual Pension Rate ................................................................................... 9
Aid and Attendance .............................................................................................. 9
Housebound ........................................................................................................ 9

Medal of Honor Pension .................................................................................................. 9

Tables

Table A-1. Number of VA Pension Beneficiaries and Average Annual Benefit Amount by
Category, FY1999-FY2019 .......................................................................................... 11
Table B-1. Selected Legislative History of VA Pensions and Medal of Honor Pensions ............ 12

Appendixes
Appendix A. Pension Beneficiaries .................................................................................. 11
Appendix B. Selected History of the Modern Veterans Pension, Survivors Pension, and
Medal of Honor Pension.............................................................................................. 12

Contacts
Author Information ....................................................................................................... 15


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Veterans Benefits Administration: Pension Programs

Overview
Within the Department of Veterans Affairs (VA), the Veterans Benefits Administration (VBA)
administers pension programs for certain low-income veterans, their surviving spouses, and
dependent children.1
This report focuses on VA’s two main VBA pension
Difference Between VA and
programs: (1) the Veterans Pension (also known as the
DOD Pensions
Improved Disability Pension), which makes payments to Veterans Affairs pensions are needs-based
certain disabled, low-income veterans, and (2) the
monthly benefits paid to certain wartime
Survivors Pension (also known as the Improved Death
veterans or their survivors, either of whom
Pension), which makes payments to certain low-income
must demonstrate financial need and meet
certain net worth requirements. The active
surviving spouses and dependent children of deceased
duty service requirement must include at
veterans. To qualify for either program, a veteran must
least one day during a period of war.2
have become eligible for payments on or after January 1, Department of Defense pension is a
1979, served during wartime, discharged under other
retirement program for eligible active duty
than dishonorable conditions, and meet net worth limits.
and reservist personnel that is general y
The Veterans and Survivors Pension Improvement Act
based on a minimum of 20 years of active
service.
of 1978 (P.L. 95-588) created both pension programs.
The third VBA-administered pension program discussed in this report is for Medal of Honor
recipients. To receive this benefit, a veteran must have been awarded the Medal of Honor from a
U.S. President. It is not an income or needs-based program.
VBA administers other pension programs for veterans or survivors who qualified for pension
benefits prior to 1979. These programs include the Old Law Disability Pension, the Section 306
Disability Pension, the Old Law Death Pension, and the Section 306 Death Pension. This report is
focused on current pension eligibility and benefits, and the aforementioned programs are not
discussed.3
Veterans (Improved Disability) Pension
Eligibility Criteria
To be eligible for the Veterans Pension benefit, a veteran must meet eligibility criteria related to
the individual’s period of service and military discharge status, income and net worth, and
disability or age. A veteran must complete and submit VA Form 21P-527EZ along with the
specified materials to apply for this pension benefit.

1 T he military retirement program is also referred to as a pension. For additional information on military retirement
programs, see CRS Report RL34751, Military Retirem ent: Background and Recent Developm ents, by Kristy N.
Kamarck.
2 Department of Veterans Affairs (VA), Veterans Benefits Administration (VBA), Pension Program and
Representation
, at https://www.benefits.va.gov/BENEFIT S/factsheets/limitedincome/pensionprogram-and-
representation.pdf.
3 In the FY2019 VBA Annual Benefits Report, these programs are jointly categorized as “Other Pension” because they
are no longer open to new applicants. During FY2019, a total of 760 veterans were collecting one of these two pensions
with an average annual payment of $1,730, which totaled approxima tely $1,210,988 paid in benefits during FY2019.
See VA, VBA, Annual Benefits Report: Fiscal Year 2019 , at https://www.benefits.va.gov/REPORT S/abr/.
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Period of Service Requirement
A veteran must meet military service requirements, including having served during a period of
war, to be eligible for the Veterans Pension benefit.4 Specifical y, a veteran must have been
discharged from military service under conditions other than dishonorable and must meet one of
the following conditions:
 started on active duty before September 8, 1980, and served at least 90 days on
active duty with a minimum of 1 day during wartime;
 started on active duty after September 7, 1980, and served at least 24 months or
served the full period cal ed or ordered to active duty with at least 1 day during
wartime; or
 was an officer and started on active duty after October 16, 1981, and had not
previously served on active duty for at least 24 months.5
Disability Requirement
For a veteran to meet the disability requirement for the Veterans Pension benefit, the individual
must be permanently and total y disabled due to a nonservice-connected injury, il ness, or
combination thereof that is not a result of the veteran’s wil ful misconduct.6 If a veteran is either
partial y or completely disabled by a service-connected injury, il ness, or combination, the
individual would general y be eligible for disability compensation, a separate VA program with its
own eligibility and benefit structure.7
A veteran would meet the disability criteria if the veteran
 is a patient in a nursing home for long-term care due to a disability;
 is unemployable due to a disability reasonably certain to continue throughout
life;
 is suffering from a disability that wil continue throughout life and that makes it
impossible for the veteran to maintain a gainful occupation; or
 is suffering from a disease or disorder that has been determined to be of such
nature that the person is permanently and total y disabled.8
To determine if a veteran is total y disabled, VBA may combine the disability ratings for service-
connected disabilities with the disability ratings for nonservice-connected disabilities. However,
if the veteran’s service-connected disabilities have contributed to making the veteran eligible for
the pension benefit, the veteran wil receive the greater of the pension benefit or the VA disability

4 38 U.S.C. §1521(j). For information on periods of war, see CRS Report RS21405, U.S. Periods of War and Dates of
Recent Conflicts
, by Barbara Salazar T orreon.
5 VA, “Eligibility for Veterans Pension,” at https://www.va.gov/pension/eligibility/. If a veteran were unable to
complete his or her active duty service requirement, there are exemptions that may permit the veteran to be eligible for
the Veterans Pension. T hese exemptions are stated in 38 U.S.C. §5303A.
6 38 U.S.C. §1521(a). 38 C.F.R. §3.1(n) defines willful misconduct as “ an act involving conscious wrongdoing or
known prohibited action. A service department finding that injury, disease or death was not due to misconduct will be
binding on the Department of Veterans Affairs unless it is patently inconsistent with the facts and the requirements of
laws administered by the Department of Veterans Affairs.”
7 For more information on disability compensation and programs for service-disabled veterans, see CRS Report
R44837, Benefits for Service-Disabled Veterans, coordinated by Heather M. Salazar.
8 38 U.S.C. §1502(a).
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compensation benefit. A veteran cannot receive both disability compensation and a VBA pension
benefit.
Age Requirement
A veteran may be eligible for the pension if the veteran is aged 65 or older and meets the other
pension requirements, regardless of disability status (or disability rating). A veteran under 65
years of age may stil be eligible for a pension if permanently and total y disabled from a
nonservice-connected disability that was not a result of the veteran’s own wil ful misconduct.9
Net Worth Requirement
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.10 Prior
to October 2018, there was no set net worth limit or a clear understanding of what counted toward
significant wealth. Following a series of events—including recommendations issued in a
Government Accountability Office (GAO) June 2012 report, a Senate Special Committee on
Aging hearing on the GAO report, and a 2015 VA
rule addressing those referred to as “pension
Economic Impact Payments (EIPs)
poachers”—VA proposed changes to the pension
and Pension Income Limit
eligibility criteria.11 These proposed changes
Section 20010 of the Coronavirus Aid, Relief, and
would amend Title 38 of the Code of Federal
Economic Security Act (CARES Act; P.L. 116-136),
Regulations as it pertains to net worth, asset
excludes EIPs from a veteran’s annual income,
transfers, and income exclusions for needs-based
thereby preventing them from counting toward
benefits at VA.
the income limit associated with pension eligibility.

The section explicitly states that the rebate “shal
Following a period of public comment, VA
not be treated as income or resources for
promulgated final rules on October 18, 2018.
purposes of determining eligibility for pension
These new rules established an annual net worth
under chapter 15 of title 38.” Consequently, the
EIPs included in the CARES Act do not cause a
limit, a 36-month look-back period, a five-year
decrease in the amount of pension a veteran or
penalty period, and updated medical expense
survivor is to receive.
definitions.
Net Worth Limit. The current total net worth limit to qualify is $129,094, and it
is increased by the same percentage as the Social Security cost-of-living
adjustment (COLA) each year.12 The calculation includes countable assets and

9 38 C.F.R. §§3(vi)(A)-(B).
10 38 U.S.C. §1522.
11 T he Government Accountability Office (GAO) report recommended that VA modify the pension application forms;
verify income using a variety of documents; strengthen ability to identify asset transfers; and revise procedures to make
it clearer for claims processors to identify assets. Following this report, the Senate Special Committee on Aging held a
hearing in June 2012 to address the issues and recommendations of the GAO report. T he committee wanted to know
how VA was planning to deal with individuals referred to as “ pension poachers.” See GAO, Veterans’ Pension
Benefits: Improvements Needed to Ensure Only Qualified Veterans and Survivors Receive Benefits, GAO -12-540,
June 6, 2012; and VA, “Net Worth, Asset T ransfers, and Income Exclusions for Needs-Based Benefits,” 15 Federal
Register 3840, January 23, 2015. “Pension poachers” are described by VA as organizations or individuals who reach
out to veterans or their family members claiming they can assist the veteran in receiving a VA pension (even if they do
not qualify) for a fee. VA published a brochure for veterans to alert them to these organizations and individuals,
available at https://www.benefits.va.gov/PENSION/PensionPoachingPostcard.pdf.
12 For more information on the Social Security cost-of-living adjustment (COLA), see CRS Report 94-803, Social
Security: Cost-of-Living Adjustm ents
, by Julie M. Whittaker and T amar B. Breslauer.
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yearly income, with certain assets and income excluded, as described in 38
C.F.R. §§3.274 and 3.275. For example, a claimant’s primary residence and up to
two acres of a residential lot are excluded from the calculation.
36-Month Look-Back Period. During the 36 months before filing a claim for
benefits, any assets transferred (sold, given away, put in trust, etc.) by the
claimant at less than fair market value would be counted as assets for the
purposes of determining net worth and could, depending upon the amount
transferred, delay eligibility for benefits for up to five years.13 Other major means
test programs, such as Medicaid and Supplemental Security Income, have similar
look-back rules. These rules are to avoid individuals transferring or sel ing land
to reduce their new worth solely for the purpose of receiving VA pension
benefits.
Five-Year Penalty Period. This is a period of nonentitlement as a result of a VA
determination that the claimant transferred assets during the look-back period for
less than fair market value for the specific purpose of meeting pension eligibility
requirements. The penalty period cannot exceed five years and would begin on
the first day of the month after the last transfer. VA calculates the length of
penalty period by dividing the total covered asset amount by the monthly penalty
rate and rounding the quotient down to the nearest whole number. The result is
the number of months for which VA wil not pay pension. The monthly penalty
rate is calculated by dividing the maximum annual pension rate (MAPR) for a
veteran in need of “aid and attendance” with one dependent by 12 and rounding
down to the nearest dollar.14 As of April 2020, the monthly penalty rate is $2,266.
Medical Expense Definitions. Before the implementation of the 2018 rule, no
regulation clearly defined medical expenses for the purpose of deductions from
income for VA purposes. According to rules now in effect, if an unreimbursed
medical expense (1) is paid by a claimant or dependent for VA or medical
purposes; (2) is an expense for a claimant or a relative who is a member of the
household; and (3) exceeds 5% of the applicable MAPR, then the total amount is
deducted from the veteran’s countable income for the purpose of pension
eligibility.15 Thus, the higher the eligible unreimbursed medical expenses, the
lower the net income and the greater chance of a veteran being eligible for the
pension.
Maximum Annual Pension Rate
The MAPR for the Veterans Pension benefit is set in statute.16 The annual amount is adjusted
automatical y by law each year to reflect a COLA equal to the COLA for Social Security
benefits.17 If the veteran has a spouse or dependent child (or children), the veteran’s benefit wil
be adjusted accordingly.
As noted previously, the pension benefit for a veteran who meets the other eligibility
requirements (period of service and age or disability) is calculated by subtracting the veteran’s

13 Per 38 C.F.R. §3.276(a)(7), the look-back period will not include any date prior to October 18, 2018.
14 38 C.F.R. §3.276(e) provides an example on determining the penalty period.
15 38 C.F.R. §3.272(g). A complete list of deductible medical expenses is found in 38 C.F.R. §3.278.
16 38 U.S.C. §§1521(b)-1521(g).
17 38 U.S.C. §5312.
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annual countable income from the annual maximum benefit (i.e., the benefit amount is reduced
dollar-for-dollar by countable income). A veteran with annual countable income above the annual
maximum benefit amount would receive no pension benefit.
As of December 1, 2019, the annual pension rate, and therefore the maximum countable income
for a veteran with no dependents, is $13,752. For a veteran with one dependent, the maximum
annual rate is $18,008. If the beneficiary has more than one dependent, the benefit amount would
not increase. If two veterans are married to each other, the total maximum annual amount for the
couple would be $18,008, the same as for a veteran with one dependent.18
The benefit amount could be increased if the veteran either requires additional care, known as aid
and attendance
,19 or is housebound. However, the veteran’s benefit can be increased for only one
of those reasons; the beneficiary cannot receive aid and attendance as wel as housebound
benefits.
Aid and Attendance20
Claimants may be eligible for a higher benefit if they need additional care and services (aid and
attendance), such as assisted living or in-home care. For payments made in 2020, the maximum
annual benefit for a claimant without dependents who is in need of aid and attendance is $22,939.
For claimants with one dependent, the maximum benefit in 2020 is $27,195. If two veterans are
married and both are in need of aid and attendance, the total maximum benefit for them would be
$36,387.21
The necessity for aid and attendance is presumed when one or more of the following conditions
are met:
 the claimant needs another person to help with performing personal functions
required for daily living, such as bathing, feeding, and dressing;
 the claimant needs to stay in bed, or spend a significant portion of the day in bed,
due to an il ness;
 the claimant is a patient in a nursing home due to a loss of mental or physical
capabilities related to a disability; or
 the claimant’s eyesight is limited (i.e., even with glasses or contact lenses, the
claimant has 5/200 or less in both eyes or concentric contraction of the visual
field to five degrees or less).22
Not al four factors must be present for the beneficiary to receive a higher pension amount due to
the need for aid and attendance. The claimant is not required to demonstrate the need for round-
the-clock care but must demonstrate a regular and ongoing need for the aid and attendance of
another person.

18 VA, VBA, “ Veterans Pension Rate T able – Effective 12/1/19,” at http://www.benefits.va.gov/PENSION/
current_rates_veteran_pen.asp (hereinafter VA, “ Veterans Pension Rate T able”).
19 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.
20 Definitions of aid and attendance and housebound can be found in 38 C.F.R. §3.351. For a general overview, see
VA, “VA Aid and Attendance benefits and Housebound allowance,” at http://benefits.va.gov/pension/
aid_attendance_housebound.asp (hereinafter VA, “ Aid and Attendance and Housebound”).
21 VA, “Veterans Pension Rate T able.”
22 VA, “Aid and Attendance and Housebound.”
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If care is provided and paid for by VA or Medicaid to a veteran without dependents, the total
monthly pension benefit may be reduced to $90 per month.23
Housebound
Similar to aid and attendance, claimants who are housebound may be eligible for an increased
benefit. For payments made in 2020, the maximum annual benefit for a housebound claimant
without dependents is $16,805. For claimants with one dependent, the maximum benefit in 2020
is $21,063. If two veterans are married and both qualify for housebound benefits, general y
considered confined to their dwel ing or to the ward or clinical area of an institution, the
maximum combined benefit paid to the veteran for both individuals would be $24,114.24
To receive an increased benefit rate, a pension claimant must either have
 a single permanent disability evaluated as 100% disabling and due to such
disability, be permanently and substantial y confined to the claimant’s immediate
premises; or
 a single permanent disability evaluated as 100% disabling and have another
disability or combination of disabilities evaluated as 60% or more disabling.
A person is considered housebound when confined to a dwel ing and immediate premises due to a
disability, and it is reasonably certain that this confinement wil continue throughout the
individual’s lifetime. A dwel ing includes the claimant’s home or any other place the claimant is
living, such as a care facility or a family member’s home. Additional y, if the claimant is unable
to leave the dwel ing without the assistance of another, such as when a disability prevents the
claimant from being able to drive, the claimant is considered housebound.
Incarcerated Veterans Pension Provision
The pension benefit for a veteran convicted of a felony or misdemeanor is terminated on the 61st
day of federal, state, or local imprisonment. Payment may resume upon the completion of
imprisonment if the veteran continues to meet the eligibility requirements. If VA is not promptly
informed of the veteran’s incarceration, benefits could be suspended until the overpayment is
satisfied.
Pension benefits can be apportioned to family members if a veteran remains eligible to receive a
pension but for the fact that the veteran is incarcerated, and the veteran’s dependent(s) meet the
income requirements for Survivors Pension (without consideration of the veteran’s income). VA
would pay the lesser amount of either the pension benefit the veteran was entitled to before its
discontinuation or the survivor pension benefit the dependent is entitled to based on current
income. This structure is similar to those who are incarcerated and receiving Social Security
benefits; however, the Social Security beneficiary’s benefits would cease after 30 continuous days
of incarceration.25 If a veteran or dependent is a fugitive, felon pension benefits would be
prohibited along with any apportionment of those benefits to a spouse or dependent family
member.26

23 38 U.S.C. §5503. Veterans who reside in state veterans nursing homes where VA pays a per diem for their care may
not have their pension reduced.
24 VA, “Veterans Pension Rate T able.”
25 Social Security Administration, What Prisoners Need to Know, Publication no. 05-10133, at https://www.ssa.gov/
pubs/EN-05-10133.pdf.
26 38 C.F.R. §3.666.
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Survivors (Improved Death) Pension
Most survivors of deceased veterans are eligible for the Survivors Pension benefit if the deceased
veteran had met the requirements described in the “Veterans (Improved Disability) Pension”
section, and the survivor meets the net worth requirement.
Survivors may qualify for the Survivors Pension if the deceased veteran had not met the period of
service requirement , but the veteran’s service separation was due to a service connected
disability or fel under one of the exemptions listed in 38 U.S.C. §5303A (see “Period of Service
Requirement”
). If, at the time of death, the veteran had met one of these exemptions and had been
receiving or was entitled to receive compensation or retirement pay for a service-connected
disability, the veteran’s survivor(s) may be eligible to receive the Survivors Pension.
Regardless of the exemption, the veteran must have stil been considered total y and permanently
disabled by a nonservice-connected disability for the survivor to be eligible for this benefit. 27
Eligibility Criteria
The low-income surviving spouse or dependent child of a deceased veteran is eligible for the
Survivors Pension benefit if the deceased veteran and surviving spouse or dependent child meet
the eligibility requirements described in the following sections.
Surviving Spouse Requirement
The surviving spouse must not have remarried following the veteran’s death and must have been
married to the deceased veteran for at least one year prior to the veteran’s death. However, if the
veteran and surviving spouse were married less than a year but had a child together either before
or after the marriage, the surviving spouse may be eligible for benefits, including benefits for a
dependent child (see “Surviving Child Requirement”).28
If the surviving spouse married the veteran after the veteran’s discharge but before the following
dates, the surviving spouse may stil be eligible for benefits:
 For veterans of the Mexican border period and World War I, the marriage must
have occurred prior to December 14, 1944.29
 For veterans of World War II, the marriage must have occurred prior to January
1, 1957.
 For veterans of the Korean conflict, the marriage must have occurred prior to
February 1, 1965.

27 38 U.S.C. §§1521(j)(2), 1541(a), 1542(a), and 5303A. Such exemptions include, but are not limited to, discharge
from service due to a physical or mental condition not considered a disability but that prevents the servicemember from
performing his or her duties; discharge from service due to a preexisting co ndition that VA does not determine to be
service connected; and an involuntary discharge or release from service due to a reduction in force.
28 If the surviving spouse were previously married, but the marriage was terminated prior to November 1, 1990, the
surviving spouse may also be eligible for the Survivor’s Pension. See VA, “Survivors Pension Factsheet,” at
https://www.benefits.va.gov/BENEFIT S/factsheets/survivors/Survivorspension.pdf.
29 38 U.S.C. §§101(7) and (30). T he Mexican border period is defined as “ the period beginning on May 9, 1916, and
ending on April 5, 1917, in the case of a veteran who during such period served in Mexico, on the borders there of, or in
the waters adjacent thereto.” World War I is defined as “the period beginning on April 6, 1917, and ending on
November 11, 1918, and (B) in the case of a veteran who served with the United States military forces in Russia, means
the period beginning on April 6, 1917, and ending on April 1, 1920 .”
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 For veterans of the Vietnam era, the marriage must have occurred prior to May 8,
1985.30
 For veterans of the Gulf War period, which includes those who served post-
September 11, 2001, the marriage must have occurred prior to January 1, 2001.31
Surviving Child Requirement
General y, a surviving child who is in the custody of a surviving spouse does not have entitlement
to the Survivors Pension. Rather, the surviving spouse is eligible for a higher MAPR based on the
number of dependent children. In addition, the pension may be paid to the guardian of the
veteran’s dependent child if the child is not under the legal custody of the surviving spouse.
A surviving child of a deceased wartime veteran must be unmarried and meet one of the
following requirements:
 be under the age of 18;
 be under the age of 23 and attending a VA “approved educational institution”;32
or
 be unable to care for oneself due to a disability incurred before the age of 18.33
Net Worth Requirement
The net worth for a surviving spouse or child is calculated like that of a veteran for the Veterans
Pension. See “Net Worth Requirement” for the description of what is included in the net worth
limit of $129,094, effective December 1, 2019.
For a surviving spouse with custody of a deceased veteran’s child, the child’s income may also be
included when it is considered “reasonably available” to the surviving spouse’s expenses for
“reasonable family maintenance.”34 However, a veteran’s surviving child’s current work income
would be excluded from countable income if the income is not more than the income level at

30 38 U.S.C. §1541(f).
31 38 U.S.C §1501(4). 38 U.S.C. §101(33) defines the Persian Gulf War period as “the period beginning on August 2,
1990, and ending on the date thereafter prescribed by Presidential proclamation or by law.” T here has not been an
official presidential proclamation to end the Persian Gulf War; therefore, servicemembers who have served since
August 2, 1990, to include those currently serving but who later separate and become veterans, are still considered
veterans of the Persian Gulf War period.
32 Per 38 U.S.C. §104(a), a VA “approved educational institution” includes a school, college, academy, seminary,
technical institute, university, or other educational institution that a veteran’s child between ages 18 and 23 attends with
approval granted by the Secretary of VA.
33 VA, VBA, Improved Pension Eligibility Verification Report (Veteran with Children , OMB Control no. 2900-0101, at
https://www.vba.va.gov/pubs/forms/VBA-21P-0517-1-ARE.pdf.
34 38 C.F.R. §3.23(d)(5)-(6). Reasonable family maintenance expenses include costs for basic necessities (such as food,
clothing, shelter, etc.) and others, determined on a case-by-case basis, that are necessary to support a reasonable quality
of life.
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which a federal income tax return must be filed,35 plus postsecondary education or vocational
rehabilitation or training expenses paid by the child.36
If the surviving spouse or child were receiving any proceeds from a life insurance policy on the
veteran, those payments would be excluded from countable income.37
Maximum Annual Pension Rate
The MAPR for the Survivors Pension benefit is set in statute.38 The annual amount is adjusted
automatical y by law each year to reflect a COLA equal to the COLA for Social Security
benefits.39
Effective December 1, 2019, the MAPR for a surviving spouse without a dependent is $9,224.
For surviving spouses with one dependent child, the MAPR is $12,072. For each additional
dependent child, the MAPR increases by $2,351. The MAPR for a qualifying surviving child is
$2,351, the same as an additional dependent child.40
Aid and Attendance
Surviving spouses may be eligible for a higher benefit if they need additional care and services
(aid and attendance), such as assisted living or in-home care. The requirements and qualifications
for aid and attendance are the same for a surviving spouse as for a veteran. For payments made in
2020, the maximum annual benefit for a surviving spouse without dependents is $14,742. For a
surviving spouse with one dependent, the maximum benefit in 2020 is $17,586.41
Housebound
Similar to aid and attendance, surviving spouses who are housebound may be eligible for an
increased benefit. The requirements and qualifications for the housebound benefit are the same
for a surviving spouse as for a veteran. For payments made in 2020, the maximum annual benefit
for a housebound surviving spouse without dependents is $11,273. For surviving spouses with
one dependent, the maximum benefit in 2020 is $14,116.42
Medal of Honor Pension
On April 27, 1916, Congress passed P.L. 65-56, which created the Army and Navy Medal of
Honor Roll and entitled Medal of Honor recipients to a special pension of $10 per month for life.

35 T he income level at which a tax return must be filed (the filing requirement) is equal to the standard deduction . For
tax year 2019, the filing requirement is $12,200 for a single taxpayer under the age of 65. See Internal Revenue
Service, “ Publication 501 (2019), Dependents, Standard Deduction, and Filing Information ,” T able 1, at
https://www.irs.gov/publications/p501#en_US_2019_publink1000270109 .
36 38 U.S.C. §1503(a)(10).
37 38 U.S.C. §1503(a)(12).
38 38 U.S.C. §1541.
39 38 U.S.C. §5312. For more information on the Social Security COLA, see CRS Report 94-803, Social Security:
Cost-of-Living Adjustm ents
, by Julie M. Whittaker and T amar B. Breslauer.
40 VA, “VA Survivors Pension benefit rates,” at https://www.va.gov/pension/survivors-pension-rates/ (hereinafter VA,
“Survivors Pension benefit rates”).
41 VA, “Survivors Pension benefit rates.”
42 VA, “Survivors Pension benefit rates.”
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The monthly payment of $10 remained in effect until 1961; the enactment of P.L. 87-138 then
increased the monthly pension from $10 to $100. Unlike other VA benefits that reflect COLAs,
prior to 2002, an increase to the Medal of Honor Pension required Congress to pass authorizing
legislation. Under the Veterans Benefits Act of 2002 (P.L. 107-330), Congress increased the
monthly payment to $1,000 and directed the Secretary of VA to increase the pension amount on
December 1 of each year to reflect the same percentage as the Social Security COLA.
With the yearly increase, the monthly Medal of Honor pension that took effect on December 1,
2019, and began to be paid in January 2020, is $1,388.68.43 Eligibility for this 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 this special pension does not reduce any other benefits under U.S. law, and
the benefit does not increase if a veteran receives more than one Medal of Honor.44 The program
is smal er than the Veterans Pension and Survivors Pension programs, as there are fewer than 70
living Medal of Honor recipients.45

43 See VA, 2020 VA Special Benefit Allowances Rates, at https://www.va.gov/disability/compensation-rates/special-
benefit -allowance-rates/.
44 38 U.S.C. §1562.
45 Congressional Medal of Honor Society, “Archive Statistics,” at http://www.cmohs.org/medal-statistics.php.
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Appendix A. Pension Beneficiaries
Table A-1
shows the number of pension beneficiaries and the average annual benefit amount by
beneficiary category for FY1999-FY2019. In FY2019, 239,114 veterans received Veterans
Pension benefits, and 170,037 survivors received Survivors Pension benefits.
Table A-1. Number of VA Pension Beneficiaries and Average Annual Benefit Amount
by Category, FY1999-FY2019
(in dol ars)
Number of Veterans
Number of Survivors
Fiscal
(Improved Disability)
Average Annual
(Improved Death)
Average Annual
Year
Pension Beneficiaries
Benefit Amount
Pension Beneficiaries
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
2014
304,556
$11,682
211,714
$7,513
2015
295,078
$11,977
206,375
$7,910
2016
288,710
$11,991
202,975
$8,318
2017
276,570
$12,103
201,433
$8,443
2018
260,089
$12,350
192,823
$8,800
2019
239,114
$12,538
170,037
$8,976
Source: Congressional Research Service (CRS), based on data from Department of Veterans Affairs, Annual
Benefits Report
, various years, at https://www.benefits.va.gov/REPORTS/abr/.
Notes: Recipients of the Medal of Honor Pension are not included in these data, as the benefit is not income-
based as is the Veterans Pension and Survivors Pension. The Medal of Honor Pension is paid in addition to either
disability compensation or the Veterans Pension benefit. As of August 2020, there are fewer than 70 living Medal
of Honor recipients; those recipients receive a monthly benefit of $1,388.68, which is equivalent to $16,664.16
annual y.
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Appendix B. Selected History of the Modern
Veterans Pension, Survivors Pension, and Medal of
Honor Pension
Table B-1
provides a selected history of legislation leading to the modern Veterans Pension,
Survivors Pension, and Medal of Honor Pension. Many laws, even significant Department of
Veterans Affairs (VA) laws such as the G.I. bil , are not included if the legislation did not impact
the pensions.
Currently, VA uses the term pension to refer to payments “to wartime Veterans who meet certain
age or disability requirements, and who have income and net worth within certain limits”46 and
the term compensation to refer to payments “to Veterans who got sick or injured while serving in
the military and to Veterans whose service made an existing condition worse.”47 This distinction
has not been consistent throughout history. According to VA’s publication, VA History in Brief,
after December 24, 1919, al claims and payments arising from disability or death from World
War I service were regarded as compensation; after March 1933, al payments were regarded as
pensions. The current distinction between compensation and pension started being used again
after World War II.48 The description column in Table B-1 provides an explanation for each law
to clarify the purpose of the legislation, given the inconsistent use of terminology.
For additional history on VA pensions, please consult the following resources:
 U.S. Congress, House Committee on Veterans Affairs, Veterans’ Non-Service-
Connected Pensions: a Report on Veterans’ Benefits in the United States by the
President’s Commission on Veterans’ Pensions, committee print, 84th Cong., 2nd
sess., August 27, 1956, C-P 288 (Washington, DC: GPO, 1956);
 VA, VA History in Brief, 2006, at https://www.va.gov/opa/publications/archives/
docs/history_in_brief.pdf; and
 James D. Ridgway, “Recovering an Institutional Memory: The Origins of the
Modern Veterans’ Benefits System from 1914 to 1958,” Veterans Law Review,
vol. 5 (2013), at https://www.bva.va.gov/docs/VLR_VOL5/Ridgway.pdf.
Table B-1. Selected Legislative History of VA Pensions and Medal of Honor Pensions
Year
Law
Description
1776
First National Pension Lawa
Authorized service-connected pensions, providing half-
pay for life or during disability for any officer, soldier,
or sailor losing a limb or being so disabled as to be
incapable of earning a livelihood.b
1818
An Act to provide for certain persons
Authorized first nonservice-connected pensions to
engaged in the land and naval service of the
nondisabled veterans based on financial need.d
United States, in the Revolutionary Warc
Commissioned officers received $20 per month; others
received $8 per month.

46 See Department of Veterans Affairs (VA), “Eligibility for Veterans Pension,” at https://www.va.gov/pension/
eligibility/.
47 See VA, “VA disability compensation,” at https://www.va.gov/disability/.
48 VA, VA History in Brief, 2006, at https://www.va.gov/opa/publications/archives/docs/history_in_brief.pdf.
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Year
Law
Description
1858
An Act to extend an Act entitled “An Act to
Authorized half-pay survivors’ pensions to veterans’
continue Half-pay to certain Widows and
widows and their orphaned children until age 16.d
Orphans," approved February three,
eighteen hundred and fifty-threee
1862
An Act to grant pensionsf
Authorized disability payments based on rank and
degree of disability; liberalized benefits for widows,
children, and dependent relatives; and provided the first
compensation for diseases such as tuberculosis.d
1873
An Act to revise, consolidate, and amend
Authorized the calculations of the pension amounts
the Laws relating to Pensionsg
based on degree of disability rather than service rank;
began the Aid and Attendance program;d initiated the
creation of a board of surgeons to certify disability.h
1890
An Act granting pensions to soldiers and
Authorized pensions for veterans who were incapable
sailors who are incapacitated for the
of manual labor. Veterans’ widows or orphaned
performance of manual labor, and providing
children (under 16) were provided survivors pensions if
for pensions to widows, minor children, and
they had to support themselves.j
dependent parentsi
1912
An Act Granting pensions to certain enlisted
Authorized pensions to al veterans at age 62. The
men, soldiers, and officers who served in the pension amount depended on the length of service and
Civil War and the War with Mexico (P.L.
the age of the veteran.d Those with permanent
62-155)k
disability, no matter the length of service or age, were
provided $30 per month.
1916
An Act to establish in the War Department
Authorized a $10 monthly pension payment to Medal
and in the Navy Department, respectively, a
of Honor recipients.
rol , designated as “the Army and Navy
medal of honor rol ," and for other purposes
(P.L. 65-66)l
1924
World War Adjustment Compensation Act
Authorized compensation in the form of adjusted
(P.L. 68-20)m
service certificates payable 20 years from the date of
issue to veterans of World War I based on length and
location of service.d
1933n
Economy Act, Act of March 20, 1933 (P.L.
Repealed al previous laws granting benefits for
73-2)o
veterans of the Spanish-American War and al
subsequent conflicts and periods of peacetime service.
Granted authority to the President to issue regulations
determining veterans’ benefits until 1935.d
1935
Independent Offices Appropriations Act,
Authorized a restoration of benefits removed by the
1935 (P.L. 73-141)p
regulations issued after the Economy Act.q
1959
Veterans Pension Act of 1959 (P.L. 86-211)r
Authorized inclusion of spousal income (minus $1,200)
when determining eligibility for, and amount of, pension
to be paid. The payments were adjusted on a sliding
scale based on need. Veterans could elect to remain on
the previous pension scheme if they were already
receiving a pension as of June 30, 1960.d
1961
To amend title 38, United States Code, to
Authorized an increase in monthly Medal of Honor
increase the rate of special pension payable
pensions from $10 to $100 per month.
to certain persons awarded the Medal of
Honor, and for other purposes (P.L 87-138)s
1978
Veterans’ Disability Compensation and
Authorized an increase in monthly Medal of Honor
Survivors’ Benefits Act of 1978 (P.L. 95-
pensions from $100 to $200.
479)t
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Year
Law
Description
1978
Veterans’ and Survivors’ Pension
Authorized inclusion of family and retirement income
Improvement Act of 1978 (P.L. 95-
to determine eligibility for pensions and the amounts
588)Error! Reference source not found.
paid.d
1990
Omnibus Budget Reconciliation Act of 1990
Authorized a decrease in the pension amount to $90 a
(P.L. 101-508)
month if Medicaid was covering cost of a veteran’s
long-term care; gave permanent and total disability
status for pension purposes to veterans if they were
unemployable as a result of a disability that was certain
to continue throughout life.
1993
To amend title 38, United States Code, to
Authorized an increase in monthly Medal of Honor
increase the rate of special pension payable
pensions from $200 to $400.
to persons who have received the
Congressional Medal of Honor (P.L. 103-
161)
1998
Veterans Program Enhancement Act of 1998 Authorized an increase in monthly Medal of Honor
(P.L. 105-368)
pensions from $400 to $600.
2001
Veterans Education and Benefits Expansion
Provisions are discussed in this report under “Disability
Act (P.L. 107-103)
Requirement” and “Age Requirement.”
2002
Veterans Benefits Act of 2002 (P.L. 107-330) Authorized an increase in the monthly Medal of Honor
pension from $600 to $1,000. Directed the Secretary
of VA to increase by the same percentage the Medal of
Honor benefit as the Social Security cost-of-living
adjustment is increased each year after 2002.
Source: Compiled by CRS from publicly available government and peer-reviewed publications.
a. Continental Congress 1776, 5:703, at http://memory.loc.gov/cgi-bin/ampage?col Id=l jc&fileName=005/
l jc005.db&recNum=287&itemLink=r?ammem/
hlaw:@field(DOCID+@lit(jc00568))%230050288&linkText=1.
b. U.S. Congress, House Committee on Veterans Affairs, The Veterans’ Administration Disability Rating Schedule:
Historical Development and Medical Appraisal. Staff Report No. 8, committee print, 84th Cong., 2nd sess., July 18,
1956, C-P 275 (Washington, DC: GPO, 1956), p. 3, at https://congressional.proquest.com/congressional/
docview/t21.d22.cmp-1956-vah-0023.
c. March 18, 1818, ch. 19, 3 Stat. 410, at https://www.loc.gov/law/help/statutes-at-large/15th-congress/session-
1/c15s1ch19.pdf. Referred to in some secondary texts as the “Service Pension Law.”
d. U.S. Department of Veterans Affairs (VA), VA History in Brief, 2006, at https://www.va.gov/opa/publications/
archives/docs/history_in_brief.pdf.
e. Act of June 3, 1858, ch. 85, 11 Stat. 309, at http://www.loc.gov/law/help/statutes-at-large/35th-congress/
session-1/c35s1ch85.pdf.
f.
Act of July 14, 1862, ch. 166, 12 Stat. 566, at https://www.loc.gov/law/help/statutes-at-large/37th-congress/
session-2/c37s2ch166.pdf. Referred to in some secondary texts as the “General Pension Act of 1862.”
g. Act of March 3, 1873, ch. 234, 17 Stat. 566, at https://www.loc.gov/law/help/statutes-at-large/42nd-congress/
session-3/c42s3ch234.pdf. Referred to by the popular name “Consolidation Act of 1873.”
h. U.S. Congress, House, Veterans Legislation: Historical statement of the laws enacted and veterans
regulations promulgated relating to veterans and their dependents, with a complete statement regarding
expenditures or hospital and domiciliary construction, 79th Cong., 1st sess., January 1, 1945, H.Doc. 136
(Washington, DC: GPO, 1945), at https://congressional.proquest.com/congressional/docview/
t47.d48.10961_h.doc.136.
i.
Act of June 27, 1890, ch. 634, 26 Stat. 182, at https://www.loc.gov/law/help/statutes-at-large/51st-congress/
session-1/c51s1ch634.pdf. Referred to by the popular name “Dependent Pension Act.”
j.
Several public laws later changed the qualifications for survivor pensions. For a discussion, see U.S.
Congress, House Committee on Veterans Affairs, Veterans Non-service-connected Pensions. Report on Veterans
Benefits in the U.S. by the President’s Commission on Veterans’ Pensions. Staff Report No. 10
, committee print,
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84th Cong., 2nd sess., August 27, 1956, C-P 288 (Washington, DC: GPO, 1956), at
https://congressional.proquest.com/congressional/docview/t21.d22.cmp-1956-vah-0017.
k. P.L. 62-155, Act of May 11, 1912, ch. 123, 37 Stat. 112, at https://www.loc.gov/law/help/statutes-at-large/
62nd-congress/session-2/c62s2ch123.pdf. Referred to by the popular name “Sherwood Act of 1912,
(Mexican War and Civil War Veteran Pensions).”
l.
P.L. 64-55, Act of April 27, 1916, ch. 88, 39 Stat. 53, at https://www.loc.gov/law/help/statutes-at-large/64th-
congress/session-1/c64s1ch88.pdf.
m. P.L. 68-120, Act of May 19, 1924, ch. 157, 43 Stat. 121, at https://www.loc.gov/law/help/statutes-at-large/
68th-congress/session-1/c68s1ch157.pdf.
n. Veterans Regulation No. 1(a) of June 1933 and Veterans Regulation No. 1(c) of January 19, 1934 provided
disability pensions and were in effect prior to the implementation of the Economy Act of March 20, 1933.
See U.S. Congress, House Committee on Veterans Affairs, Veterans Non-service-connected Pensions. Report on
Veterans Benefits in the U.S. by the President’s Commission on Veterans’ Pensions. Staff Report No. 10
, committee
print, 84th Cong., 2nd sess., August 27, 1956, C-P 288 (Washington, DC: GPO, 1956), at
https://congressional.proquest.com/congressional/docview/t21.d22.cmp-1956-vah-0017.
o. P.L. 73-2, Act of March 20, 1933, ch.3, 48 Stat. 8, at https://www.loc.gov/law/help/statutes-at-large/73rd-
congress/session-1/c73s1ch3.pdf.
p. P.L. 73-480, Act of June 27, 1934, ch. 848, 48 Stat. 1265, at https://www.loc.gov/law/help/statutes-at-large/
73rd-congress/session-2/c73s2ch848.pdf.
q. See James D. Ridgway “Recovering an Institutional Memory: The Origins of the Modern Veterans’ Benefits
System from 1914 to 1958,” Veterans Law Review, vol. 5 (2013), at https://www.bva.va.gov/docs/VLR_VOL5/
Ridgway.pdf.
r. P.L. 86-211, 73 Stat. 432, at https://www.govinfo.gov/content/pkg/STATUTE-73/pdf/STATUTE-73-Pg432-
2.pdf.
s. P.L. 87-138, 75 Stat. 338, at https://uscode.house.gov/statutes/pl/87/138.pdf.
t.
P.L. 95-479, 92 Stat. 1560, at https://uscode.house.gov/statutes/pl/95/479.pdf.
u. P.L. 95-588, 92 Stat. 2497, at https://www.govinfo.gov/content/pkg/STATUTE-92/pdf/STATUTE-92-
Pg2497.pdf.

Author Information

Heather M. Salazar

Analyst in Veterans Policy


Acknowledgments
Isaac Nicchitta, Research Assistant, contributed to this report with data collection. Tamar Breslauer and
Carol Davis, Research Librarians, contributed the legislative history to this report.
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