Chapter 1. Overview of Eligibility Requirements and Development for Pension and Parents’ Dependency and Indemnity Compensation (DIC)

1. General Information on Types of Pension and Entitlement Requirements
Introduction
/ This topic contains information on the eligibility requirements for pension, including
  • the definition of pension
  • types of pension
  • the requirement that new claimants qualify forcurrent-law pension, and
  • entitlement requirements for pension.

Change Date
/ March 3, 2016
a. Definition: Pension
/ Pension is a needs-based benefit paid to
  • a wartime Veteran because of
permanent and total disability, the disabilities do not have to be service-connected (SC), or
having attained age 65, or
  • a surviving spouse or surviving child because of a wartime Veteran’s death.
Note: Refer to pension for living Veterans as Veterans Pension, and pension for survivors as Survivors Pension.
Reference: For more information on establishing a surviving child’s eligibility, see M21-1, Part III, Subpart iii,5,F.
b. Types of Pension
/ The Department of Veterans Affairs (VA) currently pays the following three types of pension:
  • pension (formerly known as Improved Pension), per Public Law (PL) 95-588
  • Section 306 Pension, per PL 86-211, and
  • Old Law Pension.
Notes:
  • Pension under PL 95-588 is sometimes called “current-law pension” when it is necessary to distinguish it from Section 306 Pension and Old Law Pension.
  • When necessary to distinguish current-law pension for Veterans from current-law pension for survivors, refer to Veterans Pension and Survivors Pension.

c. New Claimants Must Qualify for Current-Law Pension
/ Because the Old Law and Section 306 Pension programs have been phased out, a person filing a new claim for pension benefits must qualify forcurrent-law pension.
If current-law pension eligibility cannot be established, deny the claim.
Reference: For more information on the Old Law and Section 306 Pension programs, seeM21-1, Part V, Subpart i, 1.3.
d. Entitlement Requirements for Pension
/ Entitlement to VA pension benefits is based on Veteran’s character of discharge, minimum active duty service requirements, and meeting one day of wartime service requirement. Among other things, the claimant, and all dependents income and networth are also considered.
A claimant’s net worth
  • is a factor in determining entitlement tocurrent-law pension and for continuing entitlement to Section 306 Pension, but
  • is not a factor in determining continuing entitlement to Old Law Pension.
References: For more information on pension entitlement requirements, see
  • 38 CFR 3.3
  • 38 CFR 3.12
  • 38 CFR 3.12a
  • 38 CFR 3.2, and
  • 38 CFR 3.274.

2. Service Requirement for Pension Eligibility
Introduction
/ This topic contains information on the service requirements for pension eligibility, including
  • the pension wartime service requirement
  • the pension wartime periods table
  • minimum active duty service requirement for pension, and
  • minimum active duty service requirement for pension examples.

Change Date
/ March 3, 2016
a. Pension Wartime Service Requirement
/ Veterans must have served one day during a wartime period to qualify for Veterans Pension or for their survivors to qualify forSurvivors Pension. Please see pension wartimetable below.
References:
  • For more information on the wartime service requirement, see
M21-1, Part III, Subpart ii, 6.7, and
38 U.S.C. 1521(j).
b. Pension Wartime Periods Table
/ The following table provides the beginning and ending dates of qualifying wartime periods for pension benefits.
Wartime Period / Beginning and Ending Dates
Mexican Border Period / May 9, 1916, through April 5, 1917 for Veterans who served in Mexico, on its borders, or adjacent waters
World War I / April 6, 1917, through November 11, 1918; for Veterans who served in Russia, April 6, 1917, through April 1, 1920
World War II / December 7, 1941, through December 31, 1946
Korean Conflict / June 27, 1950, through January 31, 1955
Vietnam Era / August 5, 1964, through May 7, 1975; for Veterans who served “in country” before August 5, 1964, February 28, 1961, through May 7, 1975
Gulf War / August 2, 1990, through a date to be set by law or Presidential Proclamation
Reference: For more information on verifying service, see M21-1, Part III, Subpart ii, 6.
c. Minimum Active Duty Service for Pension
/ In addition to one day of service during a wartime period and other than dishonorable military service discharge:
Prior to September 7, 1980, Veterans must have served 90 or more consecutive days of active duty thatbegan or ended during a wartime period or a total of 90 or more days of active duty during one or more wartime periods.
Veterans who entered active duty after September 7, 1980, must have met a minimum active duty service requirement in addition to the wartime service requirement to be eligible for Veterans Pension or for a Veteran’s survivors to be eligible forSurvivors Pension.
In order to fulfill the minimum active duty service requirement, Veterans must have completed 24 months of continuous active duty, or the full period for which they were called or ordered to active duty. Certain exceptions may apply.
Notes:
  • The minimum active duty service requirement is specific to a period of service. Therefore, the minimum active duty period must include at least one day during a wartime period for pension eligibility to exist.
  • If the Veteran served during a wartime period and was discharged or released for a SC disability, then this period of service meets the active duty service requirement.
References: For more information on the minimum active duty service requirement, see
  • M21-1, Part III, Subpart ii, 6.4
  • M21-1, Part V, Subpart i, 1.2.c.
  • 38 CFR 3.12a,
  • 38 CFR 3.3(a)(3),, and
  • 38 U.S.C. 5303A

d. Minimum Active Duty Service for Pension: Examples
/ Below are three examples of how a Veteran’s minimum active duty and wartime service apply to the Veteran’s (or survivor’s) pension eligibility.
Example / Does this Veteran's service qualify for pension?
A Veteran had 24 continuous months of active duty which ended on August 3, 1990. / Yes. The Veteran served 24 continuous months of active duty that includes at least one day of wartime service. (The Veteran also served at least 90 consecutive days that ended during a wartime period.)
A Veteran had 24 continuous months of active duty between 1985 and 1987. The Veteranthen had a later, separate period of service from August 1, 1990, to January 1, 1991. However, the DD 214 shows the Veteran did not complete the full period for which he was ordered to serve and discharge reason is clerical error. / No. Although the Veteran served 24 continuous months of active duty, from 1985-1987, it was during peacetime and does not qualify for pension. The Veteran’s second period of service is within a wartime period, butdid not meet the minimum active duty service requirement. Note: if service documents do not state reason of discharge, development required.
A Veteran had fewer than 90 days of active duty served after August 2, 1990; however, the DD 214 shows the Veteran served the full period for which he was ordered to serve. (The Veteran has no SC disability.) / Yes. Although theVeteran’s servicedoes not met the minimum of two years of active duty requirement, the Veteran’s service qualifies because he served the full period of service for which he was called to active duty and meets the wartime service requirement.
3. Continuing Entitlement to Section 306 Pension and Old Law Pension
Introduction
/ This topic contains information on continuing entitlement to Section 306 Pension and Old Law Pension, including
  • the dates of entitlement for Section 306 and Old Law Pension
  • rate adjustments for Section 306 and Old Law Pension
  • the effect of income limits on the payment of benefits, and
  • cases in which a beneficiary wants a higher rate of pension.

Change Date
/ June 11, 2015
a. Dates of Entitlement for Section 306 and Old Law Pension
/ The Section 306 Pension and Old Law Pension programs are referred to as “protected” programs. Entitlement to these pension programs is restricted to beneficiaries who were continuously entitled to receive benefits from the dates on which the programs were phased out until the present.
The last date on which entitlement could be established to
  • Old Law Pension was June 30, 1960, and
  • Section 306 Pension was December 31, 1978.
Notes:
  • These benefits are not entirely protected because
the hospital reduction provisions of 38 CFR3.551 apply, and
the benefits can be discontinued due to fraud, treason, subversion, or incarceration.
  • The fugitive felon provisions of 38 U.S.C.5313B do not apply to Section 306 or Old Law Pension.
Reference: For specific information about the Section 306 Pension and Old Law Pension programs, see M21-1, Part V, Subpart iii, 1.C.
b. Rate Adjustments for Section 306 and Old Law Pension
/ Generally, Section 306 and Old Law beneficiaries continue to receive the rates to which they were entitled on their respective phase-out dates. Section 306 and Old Law pensioners
  • do not receive cost-of-living increases
  • do not receive a rate increase because of changes such as reductions in income or added dependents
  • mayhave their rates reduced under certain circumstances, such as when a dependent is lost, and
  • do not receive increased benefits if found eligible for Housebound or Aid and Attendance (A&A). They must elect current-law pension if they wish to receive increased pension based on Housebound or A&A eligibility.

c. Income Limits Affecting Payment of the Protected Rate
/ Use the table below to determine the impact of a beneficiary’s income on the payment of pension.
If a Section 306 or Old Law Pension beneficiary’s income ... / Then ...
exceeds the income limit for any year /
  • the protected rate is lost, and
  • future pension eligibility must be established under the current-law pension program.

exceeds the income limit for any year solely because of cost-of-living increases in benefits, such as Social Security (SS) / the protected pensioner does not lose entitlement.
Note: Although Section 306 and Old Law beneficiaries do not receive cost-of-living increases, the income limit for Section 306 and Old Law eligibility is increased each year by the cost-of-living factor.
Reference: For information on the cost-of-living factor, see M21-1, Part I, Appendix B, Section VI and Section VII.
does not exceed the income limitations / pension is paid at the protected rate.

d. When a Beneficiary Wants a Higher Rate of Pension

/ If a Section 306 or Old Law Pension beneficiary wants to receive a higher rate of pension, the beneficiary must electcurrent-law pension.
A beneficiary may be better off continuing to receive the protected Section 306 Pension rate if he/she receives a type of income, such as a spouse’s wages, that is
  • countable for current-law pension purposes, but
  • not countable for Section 306 Pension purposes.

4. Entitlement Requirements and Development for Parents’ DIC

Introduction

/ This topic contains information on entitlement requirements and development for Parents’ DIC, including
  • the definition of Parents’ Dependency and Indemnity Compensation (DIC)
  • notifying the parent(s) of the right to claim Parents’ DIC
  • establishing the entitlement of a parent to Parents’ DIC
  • acceptable proof of relationship of a parent to a Veteran
  • the effect of the marital status of a parent on the Parents’ DIC rate, and
  • situations in which both parents are living and only one parent has filed a Parents’ DIC claim.

Change Date

/ June 6, 2011

a. Definition: Parents’ DIC

/ Parents’ Dependency and Indemnity Compensation (DIC) is a monthly payment to a parent or parents of a Veteran, based on a Veteran’s SC death that occurred after December 31, 1956.

b. Notifying the Parent(s) of the Right to Claim Parents’ DIC

/ At the time a Veteran’s death is determined to be SC
  • check the file for the name and current address of the Veteran’s parents, and
  • invite a claim from the parents by sending VA Form 21-535, Application for Dependency and Indemnity Compensation by Parent(s) (Including Accrued Benefits and Death Compensation When Applicable), if this was not done during notice of death (NOD) processing.

c. Establishing the Eligibility of the Parent(s) to Parents’ DIC

/ For Parents’ DIC purposes, only one father and mother may be established, per 38 CFR 3.59(b). In order to establish basic entitlement, a parent must
  • establish his/her relationship to the Veteran, and
  • meet the income limitation set by law.
Note: Factors such as abandonment by a parent, court judgments, and length of relationship before the Veteran entered service may affect the claim.
References: For more information on
  • establishment of a parental relationship to a Veteran, see M21-1, Part III, Subpart iii, 5.I.4, and
  • income limitations for Parents’ DIC, see M21-1, Part V, Subpart iii, 1.D.

d. Acceptable Proof of Relationship of a Parent to a Veteran

/ Use the table below for information on acceptable proof of relationship of a
  • natural parent
  • adoptive parent, or
  • foster parent.

If the parent is a ... / Then he/she must establish relationship to the Veteran by providing ...
natural parent / a copy of the Veteran’s birth certificate showing the name of the natural parent.
adoptive parent / a copy of the
  • final decree of adoption, and
  • revised birth certificate.

foster parent / a completed VA Form 21P-524, Statement of Person Claiming to Have Stood in Relation of Parent.
The foster parent relationship must have
  • begun prior to the Veteran’s 21st birthday, and
  • lasted at least one continuous year.

Reference: For information on different types of parental relationships, see M21-1, Part III, Subpart iii, 5.I.1.

e. Effect of the Marital Status of the Parent on the Parents’ DIC Rate

/ The marital status of the parent affects the monthly Parents’ DIC rate. After basic eligibility is established based on relationship, determine whether the parent is
  • married to the other parent
  • married to another person, or
  • unmarried, separated, or divorced.
If the parent is married and living with a spouse, the spouse’s income is used to determine the DIC rate, regardless of whether the spouse is the other parent or another person.

f. When Both Parents Are Living and Only One Parent Has Filed a Parents’ DIC Claim

/ If there are two parents living, but only one has filed a Parents’ DIC claim, the mere existence of the other parent affects the rate payable to the claimant, per 38 CFR 3.251(a)(5). The other parent’s potential eligibility continues until death or receipt of evidence of a legal bar to entitlement, other than excessive income.
Award DIC to the claiming parent at the rate payable to only one surviving parent, when it is determined that the nonclaiming parent no longer has eligibility to DIC because of
  • abandonment of the Veteran, or
  • the existence of another person, now deceased, who was last in locoparentis.
Definition in loco parentis: A person standing in loco parentis serves in place of the parent and has a parent’s rights, duties and responsibilities.
Reference: For information on abandonment by the parent of a Veteran, see M21-1, Part III, Subpart iii, 5.I.8.