When a veteran is eligible for a disability pension, they will receive benefits under the Department of Veterans Affairs' (VA) improved disability pension program that was established on January 1, 1979.

A veteran is eligible for the improved disability pension when they have at least 90 days of active duty service with at least one day of service during a wartime period. A veteran who entered active duty after September 7, 1980, must have served at least 24 months or the full period ordered to active duty with at least one day of service during a wartime period. The veteran must receive an honorably military service discharge, and be:

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  Age 65 or older; or

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  Totally and permanently disabled; or

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  A patient in a nursing home receiving skilled care; or

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  Receiving Social Security Disability Insurance benefits; or

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  Receiving Supplemental Security Income (SSI).

The VA pays improved disability pension based on the countable income of the veteran, their spouse, and dependent children. Congress establishes the maximum annual improved disability pension rates.

Improved disability pension payments are a needs-based benefit.

Prior to the VA’s improved disability pension program, its previous disability pension programs were called:

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  Old Law; and

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  Section 306 disability pensions (also known as protected disability pensions).

On January, 1, 1979, these protected disability pensions were phased out and replaced by the improved disability pension program. At the time, recipients of protected disability pensions could elect to receive the improved disability pension or continue to receive disability pensions through Old Law or Section 306. Recipients who elected to remain on the protected disability pensions, continue to receive the payment rates they were entitled to when the programs were phased out and do not receive cost-of-living adjustments (COLA).

Protected disability pensions are needs-based. In addition, any countable income of the veteran, their spouse, and dependent children, reduces their benefit amounts.

When a surviving spouse is eligible for a death pension, they receive benefits under the VA’s surviving spouse improved death pension program which was established on January 1, 1979. The VA provides this pension to low-income surviving spouses and unmarried children of deceased veterans with wartime service. To be eligible, spouses must not be remarried. For children to be eligible, they must meet the following conditions:

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  Be under age 18, or

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  Are under age 23, if attending a VA-approved school; or

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  The VA determines the surviving spouse and unmarried children to be permanently incapable of self-support because of a disability before age 18.

Surviving spouse improved death pensions are a needs-based benefit. In addition, any countable income of the surviving spouse and dependent children reduces their benefit amounts. Congress establishes the maximum annual surviving spouse improved death pension rates.

Prior to the VA’s surviving spouse improved death pension program, its previous pension programs were called:

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  Old Law; and

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  Section 306 death pensions (also known as protected death pensions).

On January 1, 1979, surviving spouse protected death pensions were phased out and replaced by the surviving spouse improved death pension program. At the time, recipients of surviving spouse-protected death pensions could elect to receive the surviving spouse improved death pension or continue to receive death pensions through Old Law or Section 306. Recipients who elected to remain on the protected death pension programs continue to receive the payment rates they were entitled to when the programs were phased out and do not receive COLA increases.

Surviving spouse protected death pensions payments are a needs-based benefit. In addition, any countable income of the surviving spouse and dependent children reduces their benefit amounts.

A veteran, who receives a Medal of Honor, is eligible to receive a special monthly pension. The VA can pay the monthly Medal of Honor pension as follows:

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  A single entitlement, or

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  With another entitlement in a combined award, and

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  Only to the recipient.

NOTE: Medal of Honor pension payments are not based on need.

Special Act of Congress pension payments are made to individuals in recognition of special acts. The terms of a Special Act of Congress pension award state:

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  The pension rate (i.e., whether constant or subject to COLA increases);

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  The pension start date; and

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  The duration of the pension (i.e., whether for a fixed period or is to be received continuously).

NOTE: A Special Act of Congress pension recipient must choose between the special pension and any other VA pension or compensation benefit they are eligible for, unless terms of the Special Act of Congress award say otherwise. This choice only occurs when terms of the Special Act of Congress pension state the pension rate is constant (i.e., not subject to COLA increases) and the pension begin date is fixed.

Special Act of Congress pension payments are not a needs-based benefit.

The VA takes into account the needs of a dependent when determining a pension benefit amount. However, the VA does not make a pension payment directly to a dependent during the lifetime of the veteran. Instead, the VA increases the amount of the veteran's basic pension if the veteran has dependents. For disability pensions, the veteran is the beneficiary.

A VA pension payment that is increased for dependent(s) is an augmented VA payment. A VA pension payment made directly to the dependent of a living veteran is an apportioned payment. For a discussion of augmented and apportioned payments, see SI 00830.314.

The VA takes into account the needs of a surviving dependent when determining a pension benefit amount when a veteran is deceased. The VA considers the surviving spouse the beneficiary and, any eligible children, as dependent children of the surviving spouse when paying surviving spouse pension payments. The VA will not make a pension payment directly to a dependent child during the lifetime of the surviving spouse. Instead, VA increases the amount of the surviving spouse’s basic pension when the surviving spouse has dependent children.

A surviving spouse pension payment that is increased for dependent children is an augmented VA payment. A surviving spouse pension that is made directly to a dependent child of a surviving spouse is an apportioned payment. For more information about augmented and apportioned payments, see SI 00830.314.

The VA takes into account the needs of surviving dependents when determining a pension benefit amount when a veteran is deceased. For surviving child improved death pension, the VA considers the surviving child the beneficiary and VA does not pay any increased benefits for any dependents of the surviving child.

The Medal of Honor pension is payable only to the recipient. There cannot be any additional dependents for this pension.

The VA takes into account the needs of dependents when determining the pension benefit amount. The VA considers the veteran the beneficiary and the eligible spouse and children as dependents. The VA does not make pension payments directly to a dependent during the lifetime of the veteran. If the veteran has a dependent spouse and children, the VA increases the amount of the veteran’s basic pension.

A Special Act of Congress pension that is increased for dependent(s) is an augmented VA payment. A Special Act of Congress pension payment made directly to a dependent spouse or dependent child of a veteran is an apportioned payment. For more information about augmented and apportioned payments, see SI 00830.314.

VA aid and attendance (A&A) and housebound allowances (HBA) are not income. All or part of a VA pension may be subject to this rule. For more information about A&A and HBA, see SI 00830.308.

VA payments resulting from unreimbursed medical expenses are not income. All or part of a VA pension payment may be subject to this rule. For more information about unreimbursed medical expenses, see SI 00830.312.

The Medal of Honor pension is not a needs-based benefit. The VA does not consider Medal of Honor pension payments as income.

The Special Act of Congress pension is not needs-based benefit. These pensions are unearned income and the $20 general exclusion applies; see SI 00810.420.

To code VA pension payments on the SSI claims system, select “Yes” for “Department of Veterans Affairs” on the Income Selection page for the following types of VA pension payments:

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  Improved disability pension,

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  Protected disability pension,

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  Surviving spouse improved death pension,

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  Surviving spouse-protected death pension, or

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  Surviving child improved death pension.

On the VETERANS AFFAIRS PAYMENT (IVAB) page, select the appropriate VA pension payment types from the drop-down list:

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  Pension – Base on Need

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  Other VA Payment – Based on Need

Enter the:

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  “Name of beneficiary” field - First name, middle initial, and last name of the beneficiary. If the name of the beneficiary is unknown, select the “Unknown” checkbox.

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  “ID” field - Veterans Affairs Payment claim number in the “ID” field. If the ID is unknown, select “Unknown.”

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  Monthly Values, if available:

  Date From

  Date To

  Alleged Amount (of the VA pension payment)

  Verified Amount (of the VA pension payment)

  Court Ordered or IV-D Support Amount

  Double Counting Overpayment Recovery Amount

  Double Counting Applies

  Other Deduction Amount

  Unknown

  Countable Amount

  Actions

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  If any of the required fields in Monthly Values are not available, select “Unknown” checkbox.

  For more information on the IVAB page, see MS INTRANETSSI 014.052.

Select “Yes” for “Department of Veterans Affairs” on the Income Selection page for the following types of VA pensions payments:

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  Medal of Honor pension, or

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  Special Act of Congress pension

On the IVAB page, select from the following VA pension payment types from the “TYPE” drop-down list:

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  Pension – Medal of Honor, or

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  Pension – Special Act of Congress

Enter the:

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  “Name of Beneficiary” field - First name, middle initial, and last name of the beneficiary. If the name of the beneficiary is unknown, select the “Unknown.”

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  “ID” field - Veterans Affairs Payment claim number in the “ID” field. If the ID is unknown, select “Unknown.”

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  Monthly Values, if available:

Date From

Date To

Alleged Amount (of the Medal of Honor or Special Act of Congress pension payment)

Verified Amount (of the VA pension payment)

Court Ordered or IV-D Support Amount

Double Counting Overpayment Recovery Amount

Double Counting Applies

Other Deduction Amount

Unknown

Countable Amount

Actions

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  If any of the required field in Monthly Values are not available, select “Unknown” checkbox.

For more information on the IVAB page, see MS INTRANETSSI 014.052.

On the SSA-1719B (Supplemental Security Income Post-Entitlement Input) or SSA-450-SI (SSI Data Input and Determination), enter “E” for the unearned income type, the amount of the VA pension payment, and the appropriate unearned income identification for the following VA pension payments types:

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  Improved disability pension,

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  Protected disability pension,

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  Surviving spouse improved death pension,

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  Surviving spouse-protected death pension, or

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  Surviving child improved death pension.

NOTE: Protected disability and surviving spouse-protected death pensions are not subject to legislative cost-of-living increases. For a discussion on how to code the UM claim identification field for legislative increases, see SM 01305.296D.

On the SSA-1719B or SSA-450-SI, enter “C” for the unearned income type, the amount of the VA pension payment, and the appropriate unearned income identification for the Special Act of Congress pension.