HR 6171 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 6171CommentsClose CommentsPermalink

To amend title 38, United States Code, to require the Secretary of Veterans Affairs to consider the resources of individuals applying for pension that were recently disposed of by the individuals for less than fair market value when determining the eligibility of such individuals for such pension, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

July 24, 2012CommentsClose CommentsPermalink

Mr. ROONEY (for himself, Mr. BILIRAKIS, Mr. SCHRADER, and Mr. BARBER) introduced the following bill; which was referred to the Committee on Veterans’ AffairsCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend title 38, United States Code, to require the Secretary of Veterans Affairs to consider the resources of individuals applying for pension that were recently disposed of by the individuals for less than fair market value when determining the eligibility of such individuals for such pension, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Protecting Veterans Pension Act’.CommentsClose CommentsPermalink

SEC. 2. CONSIDERATION BY SECRETARY OF VETERANS AFFAIRS OF RESOURCES DISPOSED OF FOR LESS THAN FAIR MARKET VALUE BY INDIVIDUALS APPLYING FOR PENSION.

(a) Veterans- Section 1522 of title 38, United States Code, is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) by inserting ‘(1)’ before ‘The Secretary’; andCommentsClose CommentsPermalink





(B) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(2)(A) If a veteran otherwise eligible for payment of pension under section 1513 or 1521 of this title or the spouse of such veteran disposes of covered resources for less than fair market value on or after the look-back date described in subparagraph (C)(i), the Secretary shall deny or discontinue the payment of pension to such veteran under section 1513 or 1521 of this title, as the case may be, for months during the period beginning on the date described in subparagraph (D) and equal to the number of months calculated as provided in subparagraph (E).CommentsClose CommentsPermalink





‘(B)(i) For purposes of this paragraph, a covered resource is any resource that was a part of the corpus of the estate of the veteran or, if the veteran has a spouse, the corpus of the estates of the veteran and of the veteran’s spouse, that the Secretary considers that under all the circumstances, if the veteran or spouse had not disposed of such resource, it would be reasonable that the resource (or some portion of the resource) be consumed for the veteran’s maintenance.CommentsClose CommentsPermalink





‘(ii) For purposes of this paragraph, the Secretary may consider, in accordance with regulations the Secretary shall prescribe, a transfer of an asset (including a transfer of an asset to an annuity, trust, or other financial instrument or investment) a disposal of a covered resource for less than fair market value if such transfer reduces the amount in the corpus of the estate of the veteran or, if the veteran has a spouse, the corpus of the estates of the veteran and of the veteran’s spouse, that the Secretary considers, under all the circumstances, would be reasonable to be consumed for the veteran’s maintenance.CommentsClose CommentsPermalink





‘(C)(i) The look-back date described in this clause is a date that is 36 months before the date described in clause (ii).CommentsClose CommentsPermalink





‘(ii) The date described in this clause is the date on which the veteran applies for pension under section 1513 or 1521 of this title or, if later, the date on which the veteran (or the spouse of the veteran) disposes of covered resources for less than fair market value.CommentsClose CommentsPermalink





‘(D) The date described in this subparagraph is the first day of the first month in or after which covered resources were disposed of for less than fair market value and which does not occur in any other period of ineligibility under this paragraph.CommentsClose CommentsPermalink





‘(E) The number of months calculated under this subparagraph shall be equal to--CommentsClose CommentsPermalink





‘(i) the total, cumulative uncompensated value of all covered resources so disposed of by the veteran (or the spouse of the veteran) on or after the look-back date described in subparagraph (C)(i); divided byCommentsClose CommentsPermalink





‘(ii) the amount of the monthly pension that would be payable to the veteran under section 1513 or 1521 of this title without consideration of such resources under paragraph (1),CommentsClose CommentsPermalink





rounded, in the case of any fraction, to the nearest whole number, but shall not in any case exceed 36 months.CommentsClose CommentsPermalink





‘(F) In the case of a transfer by the spouse of a veteran that results in a period of ineligibility for the veteran under this paragraph, the Secretary shall apportion the period (or any portion of the period) among the veteran and the veteran’s spouse if the spouse becomes eligible for pension under this chapter.’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) by inserting ‘(1)’ before ‘The Secretary’; andCommentsClose CommentsPermalink





(B) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(2)(A) If a veteran otherwise eligible for payment of increased pension under subsection (c), (d), (e), or (f) of section 1521 of this title on account of a child, the spouse of the veteran, or the child disposes of covered resources for less than fair market value on or after the look-back date described in subparagraph (C)(i), the Secretary shall deny or discontinue payment of such increased pension for months during the period beginning on the date described in subparagraph (D) and equal to the number of months calculated as provided in subparagraph (E).CommentsClose CommentsPermalink





‘(B)(i) For purposes of this paragraph, a covered resource is any resource that was a part of the corpus of the estate of the child that the Secretary considers that under all the circumstances, if the veteran, the spouse of the veteran, or the child had not disposed of such resource, it would be reasonable that the resource (or some portion of the resource) be consumed for the child’s maintenance.CommentsClose CommentsPermalink





‘(ii) For purposes of this paragraph, the Secretary may consider, in accordance with regulations the Secretary shall prescribe, a transfer of an asset (including a transfer of an asset to an annuity, trust, or other financial instrument or investment) a disposal of a covered resource for less than fair market value if such transfer reduces the amount in the corpus of the estate of the child that the Secretary considers, under all the circumstances, would be reasonable to be consumed for the child’s maintenance.CommentsClose CommentsPermalink





‘(C)(i) The look-back date described in this clause is a date that is 36 months before the date described in clause (ii).CommentsClose CommentsPermalink





‘(ii) The date described in this clause is the date on which the veteran applies for payment of increased pension under subsection (c), (d), (e), or (f) of section 1521 of this title on account of a child or, if later, the date on which the veteran (or the child) disposes of covered resources for less than fair market value.CommentsClose CommentsPermalink





‘(D) The date described in this subparagraph is the first day of the first month in or after which covered resources were disposed of for less than fair market value and which does not occur in any other period of ineligibility under this paragraph.CommentsClose CommentsPermalink





‘(E) The number of months calculated under this subparagraph shall be equal to--CommentsClose CommentsPermalink





‘(i) the total, cumulative uncompensated value of all covered resources so disposed of by the veteran (or the child) on or after the look-back date described in subparagraph (C)(i); divided byCommentsClose CommentsPermalink





‘(ii) the amount of the increased monthly pension that would be payable to the veteran under subsection (c), (d), (e), or (f) of section 1521 of this title on account of a child without consideration of such resources under paragraph (1),CommentsClose CommentsPermalink





rounded, in the case of any fraction, to the nearest whole number, but shall not in any case exceed 36 months.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(c)(1) The Secretary shall not deny or discontinue payment of pension under section 1513 or 1521 of this title or payment of increased pension under subsection (c), (d), (e), or (f) of section 1521 of this title on account of a child by reason of the application of subsection (a)(2) or (b)(2) of this section to the disposal of resources by an individual to the extent that--CommentsClose CommentsPermalink





‘(A) a satisfactory showing is made to the Secretary (in accordance with regulations promulgated by the Secretary) that all resources transferred for less than fair market value have been returned to the transferor; orCommentsClose CommentsPermalink





‘(B) the Secretary determines, under procedures established by the Secretary, that the denial or discontinuance of payment would work an undue hardship as determined on the basis of criteria established by the Secretary.CommentsClose CommentsPermalink





‘(2) At the time a veteran applies for pension under section 1513 or 1521 of this title or increased pension under subsection (c), (d), (e), or (f) of section 1521 of this title on account of a child, and at such other times as the Secretary considers appropriate, the Secretary shall--CommentsClose CommentsPermalink





‘(A) inform such veteran of the provisions of subsections (a)(2) and (b)(2) providing for a period of ineligibility for payment of pension under such sections for individuals who make certain dispositions of resources for less than fair market value; andCommentsClose CommentsPermalink





‘(B) obtain from such veteran information which may be used in determining whether or not a period of ineligibility for such payments would be required by reason of such subsections.’.CommentsClose CommentsPermalink





(b) Surviving Spouses and Children- Section 1543 of such title is amended--CommentsClose CommentsPermalink





(1) in subsection (a)--CommentsClose CommentsPermalink





(A) by redesignating paragraph (2) as paragraph (3);CommentsClose CommentsPermalink





(B) by inserting after paragraph (1) the following new paragraph (2):CommentsClose CommentsPermalink





‘(2)(A) If a surviving spouse otherwise eligible for payment of pension under section 1541 of this title disposes of covered resources for less than fair market value on or after the look-back date described in subparagraph (C)(i), the Secretary shall deny or discontinue the payment of pension to such surviving spouse under section 1541 of this title for months during the period beginning on the date described in subparagraph (D) and equal to the number of months calculated as provided in subparagraph (E).CommentsClose CommentsPermalink





‘(B)(i) For purposes of this paragraph, a covered resource is any resource that was a part of the corpus of the estate of the surviving spouse that the Secretary considers that under all the circumstances, if the surviving spouse had not disposed of such resource, it would be reasonable that the resource (or some portion of the resource) be consumed for the surviving spouse’s maintenance.CommentsClose CommentsPermalink





‘(ii) For purposes of this paragraph, the Secretary may consider, in accordance with regulations the Secretary shall prescribe, a transfer of an asset (including a transfer of an asset to an annuity, trust, or other financial instrument or investment) a disposal of a covered resource for less than fair market value if such transfer reduces the amount in the corpus of the estate of the surviving spouse that the Secretary considers, under all the circumstances, would be reasonable to be consumed for the surviving spouse’s maintenance.CommentsClose CommentsPermalink





‘(C)(i) The look-back date described in this clause is a date that is 36 months before the date described in clause (ii).CommentsClose CommentsPermalink





‘(ii) The date described in this clause is the date on which the surviving spouse applies for pension under section 1541 of this title or, if later, the date on which the surviving spouse disposes of covered resources for less than fair market value.CommentsClose CommentsPermalink





‘(D) The date described in this subparagraph is the first day of the first month in or after which covered resources were disposed of for less than fair market value and which does not occur in any other period of ineligibility under this paragraph.CommentsClose CommentsPermalink





‘(E) The number of months calculated under this subparagraph shall be equal to--CommentsClose CommentsPermalink





‘(i) the total, cumulative uncompensated value of all covered resources so disposed of by the surviving spouse on or after the look-back date described in subparagraph (C)(i); divided byCommentsClose CommentsPermalink





‘(ii) the amount of the monthly pension that would be payable to the surviving spouse under section 1541 of this title without consideration of such resources under paragraph (1),CommentsClose CommentsPermalink





rounded, in the case of any fraction, to the nearest whole number, but shall not in any case exceed 36 months.’; andCommentsClose CommentsPermalink





(C) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4)(A) If a surviving spouse otherwise eligible for payment of increased pension under subsection (c), (d), or (e) of section 1541 of this title on account of a child or the child disposes of covered resources for less than fair market value on or after the look-back date described in subparagraph (C)(i), the Secretary shall deny or discontinue payment of such increased pension for months during the period beginning on the date described in subparagraph (D) and equal to the number of months calculated as provided in subparagraph (E).CommentsClose CommentsPermalink





‘(B)(i) For purposes of this paragraph, a covered resource is any resource that was a part of the corpus of the estate of the child that the Secretary considers that under all the circumstances, if the surviving spouse or the child had not disposed of such resource, it would be reasonable that the resource (or some portion of the resource) be consumed for the child’s maintenance.CommentsClose CommentsPermalink





‘(ii) For purposes of this paragraph, the Secretary may consider, in accordance with regulations the Secretary shall prescribe, a transfer of an asset (including a transfer of an asset to an annuity, trust, or other financial instrument or investment) a disposal of a covered resource for less than fair market value if such transfer reduces the amount in the corpus of the estate of the child that the Secretary considers, under all the circumstances, would be reasonable to be consumed for the child’s maintenance.CommentsClose CommentsPermalink





‘(C)(i) The look-back date described in this clause is a date that is 36 months before the date described in clause (ii).CommentsClose CommentsPermalink





‘(ii) The date described in this clause is the date on which the surviving spouse applies for payment of increased pension under subsection (c), (d), or (e) of section 1541 of this title on account of a child or, if later, the date on which the surviving spouse (or the child) disposes of covered resources for less than fair market value.CommentsClose CommentsPermalink





‘(D) The date described in this subparagraph is the first day of the first month in or after which covered resources were disposed of for less than fair market value and which does not occur in any other period of ineligibility under this paragraph.CommentsClose CommentsPermalink





‘(E) The number of months calculated under this clause shall be equal to--CommentsClose CommentsPermalink





‘(i) the total, cumulative uncompensated value of all covered resources so disposed of by the surviving spouse (or the child) on or after the look-back date described in subparagraph (C)(i); divided byCommentsClose CommentsPermalink





‘(ii) the amount of the increased monthly pension that would be payable to the surviving spouse under subsection (c), (d), or (e) of section 1541 of this title on account of a child without consideration of such resources under paragraph (3),CommentsClose CommentsPermalink





rounded, in the case of any fraction, to the nearest whole number, but shall not in any case exceed 36 months.’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) by inserting ‘(1)’ before ‘The Secretary’; andCommentsClose CommentsPermalink





(B) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(2)(A) If a child otherwise eligible for payment of pension under section 1542 of this title or any person with whom such child is residing who is legally responsible for such child’s support disposes of covered resources for less than fair market value on or after the look-back date described in subparagraph (C)(i), the Secretary shall deny or discontinue the payment of pension to such child under section 1542 of this title for months during the period beginning on the date described in subparagraph (D) and equal to the number of months calculated as provided in subparagraph (E).CommentsClose CommentsPermalink





‘(B)(i) For purposes of this paragraph, a covered resource is any resource that was a part of the corpus of the estate of the child or the corpus of the estate of any person with whom such child is residing who is legally responsible for such child’s support that the Secretary considers that under all the circumstances, if the child or person had not disposed of such resource, it would be reasonable that the resource (or some portion of the resource) be consumed for the child’s maintenance.CommentsClose CommentsPermalink





‘(ii) For purposes of this paragraph, the Secretary may consider, in accordance with regulations the Secretary shall prescribe, a transfer of an asset (including a transfer of an asset to an annuity, trust, or other financial instrument or investment) a disposal of a covered resource for less than fair market value if such transfer reduces the amount in the corpus of the estate described in clause (i) that the Secretary considers, under all the circumstances, would be reasonable to be consumed for the child’s maintenance.CommentsClose CommentsPermalink





‘(C)(i) The look-back date described in this clause is a date that is 36 months before the date described in clause (ii).CommentsClose CommentsPermalink





‘(ii) The date described in this clause is the date on which the child applies for pension under section 1542 of this title or, if later, the date on which the child (or person described in subparagraph (B)) disposes of covered resources for less than fair market value.CommentsClose CommentsPermalink





‘(D) The date described in this clause is the first day of the first month in or after which covered resources were disposed of for less than fair market value and which does not occur in any other period of ineligibility under this paragraph.CommentsClose CommentsPermalink





‘(E) The number of months calculated under this clause shall be equal to--CommentsClose CommentsPermalink





‘(i) the total, cumulative uncompensated value of all covered resources so disposed of by the child (or person described in subparagraph (B)) on or after the look-back date described in subparagraph (C)(i); divided byCommentsClose CommentsPermalink





‘(ii) the amount of the monthly pension that would be payable to the child under section 1542 of this title without consideration of such resources under paragraph (1),CommentsClose CommentsPermalink





rounded, in the case of any fraction, to the nearest whole number, but shall not in any case exceed 36 months.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(c)(1) The Secretary shall not deny or discontinue payment of pension under section 1541 or 1542 of this title or payment of increased pension under subsection (c), (d), or (e) of section 1541 of this title on account of a child by reason of the application of subsection (a)(2), (a)(4), or (b)(2) of this section to the disposal of resources by an individual to the extent that--CommentsClose CommentsPermalink





‘(A) a satisfactory showing is made to the Secretary (in accordance with regulations promulgated by the Secretary) that all resources transferred for less than fair market value have been returned to the transferor; orCommentsClose CommentsPermalink





‘(B) the Secretary determines, under procedures established by the Secretary, that the denial or discontinuance of payment would work an undue hardship as determined on the basis of criteria established by the Secretary.CommentsClose CommentsPermalink





‘(2) At the time a surviving spouse or child applies for pension under section 1541 or 1542 of this title or increased pension under subsection (c), (d), or (e) of section 1541 of this title on account of a child, and at such other times as the Secretary considers appropriate, the Secretary shall--CommentsClose CommentsPermalink





‘(A) inform such surviving spouse or child of the provisions of subsections (a)(2), (a)(4), and (b)(2), as applicable, providing for a period of ineligibility for payment of pension or increased pension under such sections for individuals who make certain dispositions of resources for less than fair market value; andCommentsClose CommentsPermalink





‘(B) obtain from such surviving spouse or child information which may be used in determining whether or not a period of ineligibility for such payments would be required by reason of such subsections.’.CommentsClose CommentsPermalink





(c) Effective Date- Subsections (a)(2), (b)(2), and (c) of section 1522 of title 38, United States Code, as added by subsection (a), and subsections (a)(2), (a)(4), (b)(2), and (c) of section 1543 of such title, as added by subsection (b), shall take effect on the date that is one year after the date of the enactment of this Act and shall apply with respect to payments of pension and increased pension applied for after such date and to payments of pension and increased pension for which eligibility is redetermined after such date.CommentsClose CommentsPermalink





(d) Annual Reports-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than two years after the date of the enactment of this Act and not less frequently than once each year thereafter through 2023, the Secretary of Veterans Affairs shall submit to the appropriate committees of Congress a report on the administration of subsections (a)(2), (b)(2), and (c) of section 1522 of title 38, United States Code, as added by subsection (a), and subsections (a)(2), (a)(4), (b)(2), and (c) of section 1543 of such title, as added by subsection (b), during the most recent 12-month period.CommentsClose CommentsPermalink





(2) ELEMENTS- Each report submitted under paragraph (1) shall include the following, for the period covered by the report:CommentsClose CommentsPermalink





(A) The number of individuals who applied for pension under chapter 15 of such title.CommentsClose CommentsPermalink





(B) The number of individuals who received pension under such chapter.CommentsClose CommentsPermalink





(C) The number of individuals with respect to whom the Secretary denied or discontinued payment of pension under the subsections referred to in paragraph (1).CommentsClose CommentsPermalink





(D) For each individual for whom the Secretary denied or discontinued payment of pension under the subsections referred to in paragraph (1)--CommentsClose CommentsPermalink





(i) the age of the individual;CommentsClose CommentsPermalink





(ii) if the individual was denied or discontinued payment of pension because of a transfer of resources, the value of such transfer; andCommentsClose CommentsPermalink





(iii) such other information relating to such denial or discontinuance as the Secretary considers appropriate.CommentsClose CommentsPermalink





(E) Such other information as the Secretary considers appropriate.CommentsClose CommentsPermalink





(3) APPROPRIATE COMMITTEES OF CONGRESS DEFINED- In this subsection, the term ‘appropriate committees of Congress’ means--CommentsClose CommentsPermalink





(A) the Committee on Veterans’ Affairs and the Select Committee on Aging of the Senate; andCommentsClose CommentsPermalink





(B) the Committee on Veterans’ Affairs of the House of Representatives.CommentsClose CommentsPermalink