Revised April 28, 2023
IX.iii.1.H.1.aCounting Income
Income counting procedures, such as time limits to submit a claim for an increased rate, may vary based on the specific type of award adjustment such as
- running awards
- original awards, and
- new awards (awards granted after previous finally denied claim for pension).
References: For more information on
- counting income, see M21-1, Part IX, Subpart iii, 1.E.6, and
- time limits to submit claims to increase pension rates, see M21-1, Part IX, Subpart iii, 1.H.1.b-l.
IX.iii.1.H.1.bTime Limit to Furnish Amended Income Information to Increase Rate
38 CFR 3.660(b)(1) provides the time limit for submitting new evidence to get a higher rate for a particular income year. For an original award or a new award after a period of non-entitlement, the “income year” is the initial year. (Therefore, a claimant can have more than one “initial year.”) Otherwise, the income year is the applicable calendar year. In situations where pension was paid at a lower rate based on anticipated income, pension may be increased in accordance with the facts found if satisfactory evidence of entitlement is received within the same or next calendar year.
IX.iii.1.H.1.cDefinition: Same Calendar Year Under 38 CFR 3.660(b)(1)
The same calendar year under 38 CFR 3.660(b)(1) is the year in which the applicable calendar year or initial period ends. Therefore, a claimant has the entire calendar year that follows the applicable calendar year (or that follows the year that the initial year ends) to submit satisfactory evidence of entitlement for the calendar year in question. The table below describes the time limit for the claimant to submit satisfactory evidence of entitlement for the same calendar year.
| If the same calendar year is ... | Then the Department of Veterans Affairs (VA) must receive evidence of entitlement before the end of ... |
|---|---|
an initial year | the calendar year that follows the year in which the initial year ends. |
a calendar year | the following calendar year. |
Note: Evidence adequate to support award action must be date stamped into VA by the critical date, or by the next workday, if the time limit expires on a Saturday, Sunday, or legal holiday.
References: For more information on
-
the definition of the term initial year, see M21-1, Part IX, Subpart iii, 1.E.7.a, and
-
computation of time limit, see 38 CFR 3.110.
IX.iii.1.H.1.dExample 1: Time Limit to Furnish Amended Income Information to Increase Rate
Situation : A Veteran’s initial year is July 12, 2021, through July 31, 2022. The “same calendar year” refers to 2022, the calendar year during which the initial year ends. Result: The Veteran has up to and including December 31, 2023, to submit income information (such as unreimbursed medical expenses) to reduce income for the period July 12, 2021, through July 31, 2022. Note: A Veteran under the age of 65 who was not rated permanently and totally (P&T) disabled because income for VA purposes (IVAP) exceeded the maximum annual pension rate (MAPR) may be rated P&T from the original date of claim (unless the medical evidence precludes such a rating), if the Veteran submits income information within the 38 CFR 3.660(b) time limits and IVAP (and net worth) permits payment.
IX.iii.1.H.1.eExample 2: Time Limit to Furnish Amended Income Information to Increase Rate
Situation :
- A Veteran’s initial year is November 15, 2021, through November 30, 2022.
- The Veteran previously reported receipt of $500 nonrecurring income on April 1, 2022.
- The nonrecurring income was counted for a 12-month period from May 1, 2022, through April 30, 2023.
Result : The Veteran has up to and including December 31, 2023, to submit satisfactory evidence that the amount of nonrecurring income received on April 1, 2022, was less than $500.
IX.iii.1.H.1.fTime Limit to Submit Amended Income Information to Reduce an Overpayment
Under 38 CFR 3.652(b), there is no time limit to submit evidence of continued entitlement, such as income evidence, for the purpose of reducing an overpayment. However, the evidence submitted must relate to the period during which the overpayment was created, per 38 CFR 3.660(b). Example:
- An overpayment is created in the Veteran’s account because IVAP for 2019 was greater than anticipated.
- On September 29, 2022, the Veteran submits VA Form 21P-8416, Medical Expense Report, showing medical expenses paid during 2019.
- These expenses can be used to reduce the overpayment but cannot be used to pay retroactive benefits.
IX.iii.1.H.1.gTime Limit to Submit Amended Income Information When a Pension Award Is Discontinued Because IVAP Exceeds the MAPR
When a pension award is discontinued because IVAP exceeds the MAPR, 38 CFR 3.660(b) determines the time limit to submit new income information. Note: The time limits provided by 38 CFR 3.660(b) cannot be extended because of a delay in notifying the beneficiary of the discontinuance.
IX.iii.1.H.1.hContinuing Entitlement Established
A pensioner has up to and including the last day of the calendar year that follows the end of the initial year or calendar year period to establish continuing entitlement for the income counting period during which the discontinuance occurred. Situation:
- A Veteran has a running award.
- The Veteran reports winning $15,000 in the lottery on August 7, 2022.
- The award is discontinued September 1, 2022, because projected IVAP exceeds the MAPR.
Result: The Veteran has through the end of 2023 to submit evidence of continuing entitlement (for example, deductible expenses) from September 1, 2022. Reference : For more information on payment of pension after nonrecurring income terminates benefits, see M21-1, Part IX, Subpart iii, 1.E.6.d.
IX.iii.1.H.1.iPayment of Pension After a Break in the Entitlement
The time limit to submit evidence establishing entitlement after a break in entitlement is determined by 38 CFR 3.660(b)(2). That is, the claimant has two years from the date of discontinuance to submit evidence establishing entitlement from 12 months after the date of discontinuance. If the claimant re-establishes entitlement from a date that is 12 months from the date of discontinuance, 38 CFR 3.31 applies in determining the proper payment date.
IX.iii.1.H.1.jExample 1: Payment of Pension After a Break in Entitlement
Situation : The Veteran has a running award.
- August 7, 2021: The Veteran wins the lottery, and the nonrecurring income causes projected IVAP to exceed MAPR.
- September 1, 2021: Date of award discontinuance per the end-of-the-month rule.
- December 15, 2021: The Veteran is notified of the discontinuance.
Result : The Veteran has until September 1, 2023, to submit evidence establishing entitlement from September 1, 2022, with an October 1, 2022, payment date. Note : Before resuming the award from September 1, 2022 (with an October 1, 2022, payment date), develop for necessary income and expense information for the new initial year of September 1, 2022, through September 30, 2023. If continuous entitlement is
- possible, also develop for 2021 and 2022 income and expense information, or
- not possible, but an overpayment still exists, notify the claimant that there is no time limit to reduce an overpayment, if they have not already been so informed.
IX.iii.1.H.1.kExample 2: Payment of Pension After a Break in Entitlement
Situation :
- May 5, 2022: Surviving spouse wins the lottery, and the nonrecurring income causes projected IVAP to exceed MAPR.
- June 1, 2022: Date of award discontinuance per the end-of-the-month rule.
- August 7, 2022: Surviving spouse is notified of the award discontinuance.
- March 14, 2023: Surviving spouse submits 2022 unreimbursed medical expenses. These bring calendar-year 2022 IVAP below the MAPR and permit the award to resume from June 1, 2022. However, 2023 IVAP still exceeds the MAPR.
Result: If the surviving spouse cannot establish entitlement for the 2023 calendar year, the surviving spouse has until June 1, 2024, to submit satisfactory evidence of entitlement from June 1, 2023, and permit resumption of payments from July 1, 2023.
IX.iii.1.H.1.lExample 3: Payment of Pension After a Break in Entitlement
Situation : A Veteran has a running pension award.
- May 5, 2020: The Veteran wins the lottery, and the nonrecurring income causes projected IVAP to exceed MAPR.
- June 1, 2020: Date of award discontinuance per the end-of-the-month rule.
- July 3, 2020: The Veteran is notified of the award discontinuance.
- August 7, 2022: The Veteran files a new pension claim.
- September 1, 2022: Payment date of new award (effective date August 7, 2022).
Result: The Veteran’s new initial year is August 7, 2022, through August 31, 2023. Income received before August 7, 2022, is not countable.
2Recurring Income Increases and Running Awards
This topic contains general information on adjustments to running pension awards, including
- actions to take when incomplete recurring income information is received from a beneficiary that may reduce VA pension
- an example of an unknown date of income increase – no response, and
- an example of an unknown date or amount of income increase – no response.
Revised September 19, 2022
IX.iii.1.H.2.aActions to Take When Incomplete Recurring Income Information Is Received From a Beneficiary That May Reduce VA Pension
When a beneficiary submits income information that is incomplete or questionable, claims processors are encouraged to attempt to resolve the issue by contacting the beneficiary by telephone. If the missing information is received via telephone adjust the award, and send a decision notice. Follow the guidance in
- M21-1, Part III, Subpart i, 2.D.1.e for documenting information received by telephone, and
- M21-1, Part III, Subpart i, 2.D.1.f for handling information received by telephone that might affect benefits.
Use the table below to determine the actions to take if the information could not be obtained via telephone and the new income may reduce VA benefits.
| If VA receives incomplete income information from a beneficiary that only contains ... | Then ... |
|---|---|
the amount of recurring income, but not the date it started |
Upon expiration of the due process timeframe take action to adjust the award as necessary and send a decision notice. |
the date that the income was received, but not the amount of income |
Upon expiration of the due process timeframe, take action to adjust the award as necessary and send a decision notice. |
information that income started, but not the amount of income or the date it started |
|
Upon expiration of the due process timeframe take action to adjust the award as necessary and send a decision notice.
Reference : For information on
-
contemporaneous notice, see M21-1, Part X, Subpart ii, 3.C
-
the effective date to discontinue pension based on incomplete reports of income, see 38 CFR 3.661(b)(2)(i)
-
the requirements of a decision notice, see M21-1, Part VI, Subpart i, 1.B.1.b, and
-
types of notification concerning change in benefits, see M21-1, Part I, Subpart i, 1.B.2.a.
IX.iii.1.H.2.bExample: Unknown Date of Income Increase – No Response
Situation :
- On March 2, 2022, the beneficiary reports receipt of retirement income of $200 per month but does not provide the date the retirement income started.
- Pension was granted effective May 1, 2021.
- Beneficiary does not respond to attempted telephone contact.
- Take award action to count the new income as of date last paid (EP 150 will be cleared by award action).
- Send notice to the beneficiary of the income adjustment.
- Establish an EP 600.
- Send a notice of proposed adverse action,
- requesting the date the retirement income began, and
- advising the beneficiary that failure to provide the information will result in discontinuance or adjustment of VA pension effective May 1, 2021, (the effective date of the award) based on 38 CFR 3.661(b)(2)(i).
- The beneficiary does not respond.
Outcome :
- Upon expiration of the due process timeframe, count the income effective May 1, 2021 (the effective date of the award).
- Send a decision notice.
IX.iii.1.H.2.cExample: Unknown Date or Amount of Income Increase – No Response
Situation :
- On March 2, 2022, the beneficiary reports receipt of retirement income but does not provide the date or amount of the retirement income.
- Pension was granted effective May 1, 2021.
- Clear the EP 150.
- Establish an EP 600.
- Send a notice of proposed adverse action
- requesting the amount and the date the retirement income began, and
- advising the beneficiary that failure to provide the requested information will result in discontinuance of VA pension effective May 1, 2021, (the effective date of the award) based on 38 CFR 3.661(b)(2)(i).
- The beneficiary does not respond.
Outcome :
- Upon expiration of due process timeframe, discontinue the award effective May 1, 2021 (the effective date of the award).
- Send a decision notice.
3COLAs
This topic contains information on COLAs, including
- general information on COLA adjustments
- VA system calculated Social Security rates
- normal impact of Social Security COLA on the current-law pension rate
- reduction in rate of current-law pension due to Social Security’s COLA
- report of death and due process
- example of adjusting the rate of current-law pension when calendar-year medical expenses are projected to
- remain constant, and
- increase
- reduction in rate of current-law pension due to other benefit program’s COLA
- original, new, or suspended awards
- example of original, new, or suspended awards
- retroactive increases
- example 1 of retroactive increases, and
- example 2 of retroactive increases.
Revised January 15, 2026
IX.iii.1.H.3.aGeneral Information on COLA Adjustments
Cost-of-living adjustments (COLAs) in sources of income, such as Social Security income, may affect the rate of current-law pension and Parents’ Dependency and Indemnity Compensation (DIC). VA systems calculate post-COLA Social Security rates for each beneficiary. The VA calculated Social Security rate is used to determine the VA beneficiary’s IVAP.
IX.iii.1.H.3.bVA System Calculated Social Security Rates
Use the table below to determine the steps taken by VA systems to calculate post-COLA Social Security rates.
| If VA records show … | Then VA systems … |
|---|---|
no Medicare or supplementary medical insurance benefit (SMIB) | multiply the monthly Social Security amount in the record by the COLA factor.Example : If the COLA is 4 percent, VA systems multiply the monthly Social Security amount by 1.04. |
a standard SMIB deduction |
|
a pre-COLA SMIB that is other than the current standard amount | the post-COLA Social Security monthly amount is estimated using the pre-COLA SMIB.Note : The assumption is made that there would be no change in the SMIB deduction because there is no way to estimate the post-COLA nonstandard SMIB. |
IX.iii.1.H.3.cNormal Impact of Social Security COLA on the Current-Law Pension Rate
Normally, a Social Security COLA adjustment will not reduce the rate of current-law pension because the current-law pension MAPR always increases at the same time and by the same percentage as the rate of Social Security, per 38 CFR 3.27. If the Social Security COLA does not reduce the rate of current-law pension, count the increased rate of Social Security from the effective date of the COLA (generally December 1). This is an exception to the general end-of-the-month rule that increased income is counted from the first day of the month after the month during which it is received.
Example: A Veteran is receiving current-law pension based on Social Security of $5,000 per year. Effective December 1, 2022, the rate of Social Security goes up to $5,435 as a result of the COLA. Pay benefits based on IVAP of $5,435 from December 1, 2022.Reference : For more information on adjusting an award for a beneficiary who became entitled to new or increased Social Security disability, retirement, or survivor’s benefits in the months of November or December, see M21-1, Part IX, Subpart iii, 1.B.3.h.
IX.iii.1.H.3.dReduction in Rate of Current-Law Pension Due to Social Security’s COLA
If deductible expenses are a factor, a beneficiary’s rate of current-law pension may decrease as the result of a Social Security COLA. This happens most often when a beneficiary’s annual rate of Social Security approaches or exceeds the applicable MAPR. If a Social Security COLA adjustment results in a decrease in the rate of current-law pension, decrease the pension rate effective the first of the month after the effective date of the COLA/MAPR increase. However, if deductible expenses for the calendar year associated with the COLA are projected to increase, then carry forward the previous year’s pension payment rate until February 1. Notes:
- If the adjustment will result in reduction of a running award, it is necessary to furnish notice of proposed adverse action for the reduction.
- Do not adjust the award until at least 60 days after the notice of proposed adverse action is sent to the beneficiary, unless the beneficiary requests the reduction.
- While processing the award adjustment in Veterans Benefits Management System–Awards (VBMS-A), use “Protect COLA Rate” functionality within the FINANCIAL DECISION screen to protect the VA rate when a reduction would occur due to the Social Security Administration (SSA) COLA increase. To remove the rate protection, use “Unprotect COLA Rate” by adding the appropriate subsequent Financial Decision.
- If there are any systems issues with “Protect COLA Rate” functionality, users should use the withholding reason, Pension/Continued Rate COLA , while processing the award adjustment in VBMS-A.
- Effective November 18, 2017, Pension and Parents’ DIC beneficiaries will be mailed a notice of adverse action automatically at the time of COLA batch processing, if their award requires due process prior to adjustment. In addition, an EP 600 will be automatically established to control the action with a suspense date 65 days from the date of the letter. The EPs will be assigned to the appropriate pension management center (PMC) based on geography. These cases must be manually adjusted at the end of the suspense period or when the claimant responds to the notice.
- When additional actions are identified during the processing of automatic COLA adjustments (prior year COLAs, for example), the PMCs must take immediate action to address the issue(s) and not wait until expiration of due process.
Exception: Certain, limited circumstances require using the adjustment reason, Add to Gross Rate in VBMS-A, in order to pay the correct rate of pension and protect the COLA, such as when there is a child’s hardship exclusion included. Reference: For more information on adjusting an award to reflect a COLA, see
- M21-1, Part X, Subpart v, 2.C, and
- VBMS Awards User Guide.
IX.iii.1.H.3.eReport of Death and Due Process
Use the table below to determine what actions to take when an EP 130 is established based on death of beneficiary, and an EP 600 (such as a COLA adjustment) is pending.
| If ... | Then ... |
|---|---|
| do not create further overpayment that is not directly associated with the notice of death. Note : It may be necessary to use the appropriate override command in VBMS-A to prevent erroneous overpayment. |
| process the award in VBMS-A as normal. |
Reference : For more information on override commands in VBMS-A, see the VBMS Awards User Guide.
IX.iii.1.H.3.fExample: Adjusting the Rate of Current-Law Pension When Calendar-Year Medical Expenses Are Projected to Remain Constant
Situation :
- A Veteran is receiving current-law pension of $432 per month based on IVAP of $9,562.
- The Veteran receives Social Security of $16,555 per year and has continuing medical expenses of $7,730 per year.
- Effective December 1, 2022, the annual rate of Social Security goes up to $17,995 because of the COLA. This increases IVAP to $11,066 and reduces the monthly rate of pension to $414.
Result: Continue to pay at the rate of $432 per month through December 31, 2022, and furnish notice of a proposed reduction to $414 from January 1, 2023.
IX.iii.1.H.3.gExample: Adjusting the Rate of Current-Law Pension When Calendar-Year Medical Expenses Are Projected to Increase
Situation :
- A Veteran is receiving current-law pension of $432 per month based on IVAP of $9,562.
- The Veteran receives Social Security of $16,555 per year and has continuing medical expenses of $7,730 per year.
- Effective December 1, 2022, the annual rate of Social Security goes up to $17,995 because of the COLA. This increases IVAP to $11,066 and reduces the monthly rate of pension to $414.
- The Veteran has continuing medical expenses of $8,500 for calendar year 2023. This decreases IVAP to $10,296 and increases the monthly rate of pension to $478.
Result: Adjust the award to pay at the rate of $432 per month through January 31, 2023, and $478 from February 1, 2023 (38 CFR 3.31).
IX.iii.1.H.3.hReduction in Rate of Current-Law Pension Due to Other Benefit Program’s COLA
If a VA beneficiary receives additional income because of a COLA in a benefit program other than Social Security, then the general rule for counting recurring income applies. Count the additional income from the first of the month after the month during which it is received. Reference: For more information on counting recurring income, see M21-1, Part IX, Subpart iii, 1.E.6.e.
IX.iii.1.H.3.iOriginal, New, or Suspended Awards
If the Social Security or other benefit program COLA occurs before an original or new award is processed or when an award is in suspense, no notice of proposed adverse action for a reduction is required.
IX.iii.1.H.3.jExample: Original, New, or Suspended Awards
Situation :
- A Veteran’s award is effective March 14, 2022, with a payment date of April 1, 2022.
- The original award is not authorized until February 13, 2023.
- From April 1, 2022, the Veteran is entitled to a current-law pension rate of $432 per month, based on IVAP of $9,562.
- The Veteran receives Social Security of $16,555 per year and has continuing medical expenses of $7,730 per year.
- Effective December 1, 2022, the annual rate of Social Security goes up to $17,995 because of the COLA. This increases IVAP to $11,066 and reduces the Veteran’s monthly rate of pension to $414.
Result: Adjust the award to pay at the rate of $432 per month through December 31, 2022, and $414 from January 1, 2023.
IX.iii.1.H.3.kRetroactive Increases
Apply the principles in this topic even if the beneficiary subsequently establishes entitlement to a retroactive increase because of a reduction in countable income.
IX.iii.1.H.3.lExample 1: Retroactive Increases
Situation :
- A Veteran is receiving current-law pension of $432 per month based on IVAP of $9,562.
- The Veteran receives Social Security of $16,555 per year and has continuing medical expenses of $7,730 per year.
- Effective December 1, 2022, the annual rate of Social Security goes up to $17,995 because of the COLA. This increases IVAP to $11,066 and reduces the Veteran’s monthly rate of pension to $414 from January 1, 2023.
- The Veteran’s initial year is May 15, 2022, through May 30, 2023.
- In July 2023 the Veteran reports having paid medical expenses of $7,850 during the initial year. The Veteran is now entitled to $442 per month based on IVAP of $9,442 from May 15, 2022, with a payment date of June 1, 2022.
- The rate goes down to $424 per month based on IVAP of $10,946 after the Social Security COLA. The reduction is still effective January 1, 2023.
Result: Adjust the award to pay at the rate of $442 per month from June 1, 2022 through December 31, 2022, and $424 from January 1, 2023.
IX.iii.1.H.3.mExample 2: Retroactive Increases
Situation :
- A Veteran is receiving current-law pension of $812 per month based on Railroad Retirement (RR) benefits of $5,000 per year.
- The December 1, 2022, RR COLA increases the Veteran’s IVAP to $5,435. The RR COLA is received during January 2023 and should be counted from February 1, 2023.
- The Veteran subsequently reports medical expenses of $1,200 for the initial year May 15, 2022, through May 31, 2023.
Result: Adjust the award to pay
- $851 per month based on IVAP of $4,537 from June 1, 2022
- $953 per month based on IVAP of $4,601 from December 1, 2022
- $916 based on IVAP of $5,036 from February 1, 2023, and
- $883 based on IVAP of $5,435 from June 1, 2023 (to remove the $1,200 medical expenses).
4. Adjustments for the Loss of Disability Social Security
This topic contains information on adjustments for the loss of disability Social Security, including
- beneficiary's right to Social Security benefits during appeal
- Social Security rate during appeal
- report of terminated disability Social Security received
- determining whether development for P&T is needed, and
- EP control for income development.
Revised July 7, 2022
IX.iii.1.H.4.aBeneficiary's Right to Social Security Benefits During Appeal
If SSA determines that a beneficiary receiving disability benefits is no longer disabled, the beneficiary may appeal the determination and may elect to have Social Security benefits continue during the SSA appeal process. This election is made on the condition that Social Security payments issued after the initial Social Security termination date will have to be repaid if the SSA’s decision is upheld on appeal.
IX.iii.1.H.4.bSocial Security Rate During Appeal
The beneficiary may not elect to receive a reduced rate of Social Security disability benefits during the appeal, but may elect to have the basic benefit continue while payments for eligible dependents in the household are stopped. Alternatively, the beneficiary may elect to have the basic benefit terminated and have payments for one or more dependents in the household continue. The beneficiary’s election does not control a dependent outside the household whose payments are contingent on the beneficiary’s entitlement. Such a dependent, however, is given the right to elect to have benefits continue during the appeal by accepting responsibility for the overpayment if the appeal is unsuccessful. A Social Security beneficiary who is 62 years old or older may elect to receive Social Security retirement benefits in lieu of disability benefits while the appeal of the disability determination is pending.
IX.iii.1.H.4.cReport of Terminated Disability Social Security Received
If a pension (or Parents’ DIC) beneficiary reports that disability Social Security benefits have been terminated, do not increase VA pension benefits unless there is a statement from the beneficiary on file to the effect that the beneficiary and any dependents
- no longer receive Social Security, and
- will not appeal the SSA’s decision or have elected to receive no benefits while the appeal is pending.
Note: If the beneficiary has elected to receive benefits for certain dependents, the statement must specify the dependents for which payments will continue.
IX.iii.1.H.4.dDetermining Whether Development for P&T Is Needed
If SSA determines that a Veteran is no longer eligible for Social Security disability benefits, and the Veteran is under age 65, determine if additional development is necessary to ascertain whether the Veteran continues to have a P&T disability for pension purposes. If development for P&T disability is necessary, control the issue under EP 310. Note : Request medical records from SSA while developing for records from other sources. Reference : For more information on determining if development for P&T is necessary, see M21-1, Part IX, Subpart ii, 2.A.1.
IX.iii.1.H.4.eEP Control for Income Development
If development for income information is required, control the issue under EP 150 until such time as
- the award can be adjusted for reduced income, or
- a determination is made that no adjustment is in order.
5. Effect of Discontinued Survivors Pension Award on Other Beneficiaries
This topic contains information on the effect of a discontinued Survivors Pension award on other beneficiaries, including
- entitlement of
- in-custody children, and
- out-of-custody children
- remarriage of the surviving spouse, and
- discontinuance of a child's award.
Revised July 7, 2022
IX.iii.1.H.5.aEntitlement of In-Custody Children
If the surviving spouse’s entitlement to pension ceases because IVAP exceeds the MAPR, or net worth is shown to bar pension entitlement, the entitlement of all children in the surviving spouse’s legal custody for current-law pension purposes also ceases. The children can become entitled in their own right only if
- the surviving spouse dies or remarries, or
- the children are removed from the surviving spouse’s legal custody.
Reference: For more information on determining the legal custody of a child for current-law pension purposes, see
IX.iii.1.H.5.bEntitlement of Out-of-Custody Children
The discontinuance of an award to a surviving spouse has no impact on any award being made to children who are not in the surviving spouse’s legal custody for current-law pension purposes.
IX.iii.1.H.5.cRemarriage of the Surviving Spouse
If a surviving spouse remarries, current-law pension eligibility is lost as described in 38 CFR 3.500(n)(1). A remarried surviving spouse whose subsequent marriage is annulled or declared void can reestablish eligibility as a surviving spouse. If it appears that a child may be entitled to pension in their own right, initiate development to determine the income of the child, parent and stepparent or other custodian of the child with whom the child resides. Reference: For more information on reestablishing eligibility to benefits, see 38 CFR 3.55.
IX.iii.1.H.5.dDiscontinuance of a Child's Award
If there is no surviving spouse, or if a child is out of the surviving spouse’s legal custody for current-law pension purposes, the child’s entitlement is completely independent of any benefits paid to any other beneficiary. The adjustment or discontinuance of such an award has no impact on any other beneficiaries, unless the other beneficiaries are receiving Section 306 Pension or Old-Law Pension. Reference: For more information on handling another beneficiary’s Section 306 Pension or Old-Law Pension award when a surviving spouse’s or child’s Section 306 Pension or Old-Law Pension award is discontinued, see M21-1, Part IX, Subpart iii, 1.C.6.
End of Part IX, Subpart iii, Chapter 1, Section H