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Updated Mar 28, 2024

In This Chapter
 
This chapter contains the following topics:
 
Topic
Topic Name
1
2
3
4
 

1.  General Information on Types of Pension and Entitlement Requirements

 

Introduction
 
This topic contains information on the eligibility requirements for pension, including

Change Date
 
December 9, 2016

IX.i.1.1.a.  Definition:  Pension
 
Pension is a needs-based benefit paid to  
  • a wartime Veteran because of
  • permanent and total disability, or
  • having attained age 65, or
  • a surviving spouse or surviving child because of a wartime Veteran’s death.
Note:  A Veteran’s service-connected (SC) disabilities may be combined with non-service-connected (NSC) disabilities for purposes of finding the Veteran permanently and totally disabled for pension.
 
References:  For more information on

IX.i.1.1.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 it is necessary to distinguish current-law pension for Veterans from current-law pension for survivors, refer to Veterans Pension and Survivors Pension.

IX.i.1.1.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 for current-law pension. 
 
If current-law pension entitlement cannot be established, deny the claim.
 
Reference:  For more information on the Old-Law and Section 306 Pension programs, see M21-1, Part IX, Subpart i, 1.3.

IX.i.1.1.d.  Overview of Pension Entitlement Requirements
 
Entitlement to VA pension benefits is based on a Veteran’s character of discharge and meeting the  
  • wartime service requirement, and
  • minimum active duty service requirement, where applicable.
The claimant’s, and all dependents’ income and net worth are also considered.
 
A claimant’s net worth  
  • is a factor in determining entitlement to current-law pension and for continuing entitlement to Section 306 Pension, but
  • is not a factor in determining continuing entitlement to Old-Law Pension.
Note:  If a claim does not meet one or more of the eligibility requirements, deny the claim.  Do not develop or rate the claim.
 
 References:  For more information on
 

2.  Service Requirement for Pension Eligibility

 
 

Introduction
 
This topic contains information on the service requirements for pension eligibility, including

Change Date

  
March 6, 2024

IX.i.1.2.a.  Wartime Service Requirement for Veterans Pension
 
Under 38 U.S.C. 1521(j), Veterans must meet a wartime service requirement to be eligible for pension.
 
Wartime service for pension is established if a Veteran served in the active military, naval, space, or air service for
  • at least 90 days during a period of war
  • at least 90 consecutive days and such period began or ended during a period of war
  • a total of 90 or more days during one or more wartime periods, or
  • any amount of time during a period of war and
    • was discharged or released for a disability incurred in or aggravated by service, or
    • had an SC disability at the time of discharge that would have justified a discharge for disability.
Notes:   
  • Active military, naval, space, or air service includes active duty and may include active duty for training (ADT) or inactive duty for training (IADT) if the Veteran has SC conditions due to ADT or IADT.
  • “Active military, naval, space, or air service” is sometimes shortened to “active service.” 
References:  For more information on the  
 

IX.i.1.2.b.  Wartime Service Requirement for Survivors Pension

  
Under 38 U.S.C. 1541(a) and 1542, a Veteran’s survivors may be eligible for pension if the Veteran 
  • met the wartime service requirement for Veterans Pension, or
  • at the time of death, was in receipt of (or entitled to receive) compensation for an SC disability based on service during a period of war.
Important:  If the Veteran had less than 90 days of wartime service, basic entitlement to Survivors Pension exists if the Veteran was in receipt of, or entitled to receive compensation or retirement pay by reason of wartime disability, even though
  • such a grant of benefits is a clear and unmistakable error, and
  • action to sever service connection under 38 CFR 3.105(a) is pending at the time of death, in the absence of illegality or fraud.
References:  For more information on the wartime service requirement for

IX.i.1.2.c.  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
The qualifying wartime periods for Vietnam era as defined in PL 116-315 depend on the date VA adjudicates the claim.
 
If the adjudicative decision is rendered …
Then qualifying service dates are …
before January 5, 2021
  • February 28, 1961- May 7, 1975 (for Veterans who served “in country”), or
  • August 5, 1964 – May 7, 1975.
on or after January 5, 2021
  • November 1, 1955 – May 7, 1975 (for Veterans who served “in country”), or
  • August 5, 1964 – May 7, 1975.
 
Note:  Service in the offshore waters as defined in PL 116-23 will satisfy the “in country” requirement.
 
Important:  Follow the guidance in M21-1, Part V, Subpart ii, 4.A.6 when rendering a decision on an affected claim on or after the date of the law change.  Benefits may be awarded from the effective date of the law or VA issue as noted by M21-1, Part V, Subpart ii, 4.A.6.i. 
Gulf War
August 2, 1990, through a date to be set by law or Presidential Proclamation
 
References:  For more information on

IX.i.1.2.d.  Minimum Active Duty Service Requirement for Pension
 
In addition to the wartime service requirement for pension and an other-than-dishonorable military service discharge, Veterans of the Gulf War and any future wartime periods must generally have met a minimum active duty service requirement to be eligible for Veterans Pension or for their survivors to be eligible for Survivors Pension. 
 
In order to fulfill the minimum active duty service requirement, the Veteran must have 
  • completed 24 months of continuous active duty
  • completed the full period for which they were called or ordered to active duty
  • been discharged or released from active duty
    • for a disability determined to be SC without presumptive provisions of law, or
    • and had a disability at discharge, which in medical judgment would have justified a discharge for disability
  • any SC disability with a compensable evaluation, or
  • been discharged within one year before the expiration of the term of enlistment under 10 U.S.C. 1171 or 1173 for hardship discharge on the DD Form 214, Certificate of Release or Discharge from Active Duty.
Important: 
  • The minimum active duty service requirement is specific to a period of service.  Therefore, the wartime service requirement must be met during the minimum active duty period for pension eligibility to exist.
  • A Veteran is not eligible for pension if they meet the minimum active duty service requirement but do not meet the wartime service requirement for pension or vice versa.  Both requirements must be met unless the Veteran is excepted from meeting the minimum active duty service requirement.
References:  For more information on
 

IX.i.1.2.e.  Examples:  Minimum Active Duty Service Requirement for Pension
Below are four examples of how a Veteran’s minimum active duty and wartime service apply to the Veteran’s (or survivor’s) pension eligibility.  (Assume all Veterans originally enlisted after September 7, 1980.).
 
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 ended during a wartime period; therefore, the minimum active duty service requirement is met.  The wartime service requirement is also met because the Veteran 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 Veteran then had a later, separate period of service from August 1, 1990 to January 1, 1991.  However, the DD 214 for the second period of service shows the Veteran did not complete the full period 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, five-month period of service was within a wartime period and meets the wartime service requirement, but does not meet the minimum active duty service requirement. 
A Veteran had fewer than 90 days of active duty served during the Gulf War period; however, the DD 214 shows the Veteran served the full period ordered to serve.  (The Veteran has no SC disability.)
 
No.  Although the Veteran’s service meets the minimum active duty service requirement (due to serving the full period ordered to serve), the Veteran’s service does not meet the pension wartime service requirement because the Veteran served fewer than 90 days during the wartime period.  
A Veteran has an SC disability rated 10-percent disabling, is receiving compensation, and is now applying for pension.  The Veteran served 100 days during the Gulf War period; however, due to a clerical error, the Veteran did not complete the full period ordered to serve.  (Veteran was not released from service because of the SC disability.)
Yes.  The Veteran meets the 90-day wartime service requirement for pension.  Although the Veteran does not meet the minimum active duty service requirement, under 38 CFR 3.12a(d)(3), Veterans with a compensable SC disability are exempt from the requirement.
 
Note:  In this example, if the Veteran did not have a compensable SC disability, the Veteran would not be eligible for pension.
 
Note:  If service documents do not state a reason for discharge, development may be required.
 
Reference:  For more information on exceptions to the minimum active duty service requirement, see M21-1, Part III, Subpart i, 1.B.1.c.

IX.i.1.2.f.  Communicating Favorable Findings in a Pension Decision Notice

  
The table below describes when and how to communicate favorable findings for Veterans Pension decision notices.  
 
Veterans Pension Favorable Findings
When to Use
Letter Text
Active Duty Service
Use in original grant and denial decision notices (end product (EP) 180 series) where the Veteran meets all the military service requirements for pension.
You meet the minimum active duty requirements to qualify for pension.
At least one day of service during a period of war
Use in original denial decision notices (EP 180 series) where the Veteran has not met all the military service requirements for pension but did serve at least one day during a period of war.
You served during a period of war. 
Character of discharge
Use in original denial decision notices (EP 180 series) where the Veteran has not met all the military service requirements for pension but meets the character of discharge requirement.
You have an acceptable character of discharge.   
 
The table below describes when and how to communicate favorable findings for Survivors Pension decision notices. 
 
Survivors Pension Favorable Findings
When to Use
Letter Text
Active Duty Service
Use in original grant and denial decision notices (EP 190 series) where the Veteran met all the military service requirements for pension.
The Veteran met the minimum active duty requirements to qualify for pension.
At least one day of service during a period of war
Use in original denial decision notices (EP 190 series) where the Veteran had not met all the military service requirements for pension but did serve at least one day during a period of war.
The Veteran served during a period of war. 
Character of discharge
Use in original denial decision notices (EP 190 series) where the Veteran had not met all the military service requirements for pension but meets the character of discharge requirement.
The Veteran had an acceptable character of discharge.   
 
References:  For more information on

IX.i.1.2.g.  Verifying Service in the Eligible Offshore Waters of Vietnam

  
Follow the steps in the table below when
  • the Veteran does not meet the Vietnam Era wartime service requirements, and
  • service in the offshore waters as defined in PL 116-23 is claimed or implied by the claimant and wartime service cannot be otherwise conceded.
Step
Action
1
Are the DD Form 214, service treatment records, and entire official military personnel file of record?
2
Once the records in Step 1 are received, go to the next step.
3
  • Refer the claim to a local claims processor with access to the Veterans Benefits Administration Ship Locator tool.
  • Add Stage 2 Development special issue.
  • Add a note in the Veterans Benefits Management System to explain verification of wartime service in offshore waters is required before processing the claim.
4
After reviewing the available records in the Ship Locator tool, the claims processor will document on the Verification of Wartime Service memo whether or not service in the offshore waters as defined by PL 116-23 is found.
  • If wartime service can be conceded, go to Step 5.
  • If not, additional research is required by the Records Research Team.  The claims processor should
    • upload the Verification of Wartime Service memo, the DECK LOG AVAILABILITY tab results, and the screenshot of the SHIP LOCATION MAP tab results for all vessels and time periods to the electronic claims folder (eFolder)
    • add the Special 12-mile Review special issue, and
    • remove the Stage 2 Development special issue.
5
If service in the eligible offshore waters is found
  • remove the Stage 2 Development special issue, and
  • upload the Verification of Wartime Service memo provided in M21-1, Part IX, Subpart i, 1.2.h to the eFolder.
6
The claim is returned for processing.
 
Reference:  For more information on service in the offshore waters of Vietnam and PL 116-23, see M21-1, Part VIII, Subpart i, 1.B.

IX.i.1.2.h.  Verification of Wartime Service Memo Template

  
The following is a sample memo that must be completed when wartime service verification, in the eligible offshore waters of Vietnam, is needed.
 
Department of
Veterans Affairs
Memorandum
 
Claimant Name: ______________________________
File Number: _________________________________
Date:
 
SUBJ:  Verification of Service in the Eligible Offshore Water of Vietnam Memo
 
☐ Wartime service in the eligible offshore water of Vietnam is conceded based on the Veteran’s duty or visitation (boots on ground) in the Republic of Vietnam.
 
☐ Wartime service in the eligible offshore water of Vietnam is conceded based on the Veteran’s duty on the Republic of Vietnam’s inland waterways.
 
☐ Wartime service in the eligible offshore water of Vietnam is conceded based on the Veteran’s nautical service in one or more of the approved Republic of Vietnam bays or harbors.
 
☐ Wartime service in the eligible offshore water of Vietnam is conceded based on the Veteran’s nautical service in the offshore eligible waters as defined in PL 116-23.
 
☐ Wartime service in the eligible offshore water of Vietnam cannot be conceded as the evidence of record does not show the Veteran had duty or visitation in the Republic of Vietnam, or on its inland waterways, or nautical service in the offshore eligible waters as defined in PL 116-23.
 
_________________________________________
Employee
 
If unable to concede wartime service in the eligible offshore water of Vietnam in cases where the Veteran claimed or the evidence raised possible nautical service, an additional signature from a Records Research Specialist is required below.
 
____________________________________
Records Research Specialist
 
 

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

Change Date
 
August 11, 2016

IX.i.1.3.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 CFR 3.551 apply, and
    • 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 more information on the Section 306 Pension and Old-Law Pension programs, see M21-1, Part IX, Subpart iii, 1.C.

IX.i.1.3.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
  • may have their rates reduced under certain circumstances, such as when a dependent is lost, and
  • do not receive
    • cost-of-living increases
    • a rate increase because of changes such as reductions in income or added dependents, and
    • 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. 

IX.i.1.3.c.  Effect of Income Limits on the Payment of Benefits
 
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
the protected pensioner does not lose entitlement.
 
Note:  Although Section 306 and Old-Law Pension 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 the protected pension rate tables.
does not exceed the income limitations
pension is paid at the protected rate.

IX.i.1.3.d.  Cases in Which 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 elect current-law pension. 
 
A beneficiary may be better off continuing to receive the protected Section 306 Pension rate if they receive 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.
Reference:  For more information on elections between pension programs, see M21-1, Part IX, Subpart iii, 2.C.
 

4.  Entitlement Requirements and Development for Parents’ DIC

 

Introduction
 
This topic contains information on entitlement requirements and development for Parents’ DIC, including

Change Date
 
March 6, 2024

IX.i.1.4.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.

IX.i.1.4.b.  Notifying the Parent(s) of the Right to Claim Parents’ DIC
 
At the time a Veteran’s death is determined to be SC

IX.i.1.4.c.  Establishing the Entitlement of a Parent to Parents’ DIC
 
For Parents’ DIC purposes, only one father and mother may be established, per 38 CFR 3.59(a).  In order to establish basic entitlement, a parent must
  • establish a relationship to the Veteran, and
  • meet the income limitation set by law.
Notes: 
  • Factors such as abandonment by a parent, court judgments, and length of relationship before the Veteran entered service may affect the claim.
  • If a claim does not meet one or more of the eligibility requirements, deny the claim.  Do not develop or rate the claim.
References:  For more information on

IX.i.1.4.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(n) …
Then they must establish a 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
 
The foster parent relationship must have
  • begun prior to the Veteran’s 21st birthday, and
  • lasted at least one continuous year.
 
Reference:  For more information on different types of parental relationships, see M21-1, Part VII, Subpart i, 4.A.1.

IX.i.1.4.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, or
    • another person
  • 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.

IX.i.1.4.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 non-claiming 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 loco parentis.
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 more information on abandonment by the parent of a Veteran, see M21-1, Part VII, Subpart i, 4.A.8.