Provides that if a veteran eligible for a pension for service or for a non-service-connected disability, or the spouse of such veteran, disposes of a resource that was part of such veteran's estate for less than its fair market value within three years before applying for such pension, then the Secretary of Veterans Affairs (VA) shall deny or discontinue the pension payment for months beginning on the date of such disposition and ending when the uncompensated value of such resource is reached. Provides the same denial or discontinuance in the case of a veteran eligible for an increased pension payment on account of a child, unless the Secretary determines that such denial or discontinuance would work an undue hardship.
Applies the same denial or discontinuance, with the same undue hardship exception, in the case of: (1) a veteran's surviving spouse who disposes of a covered resource for less than fair market value within such period, and (2) an increased pension for such spouse on account of a child.
Requires the Secretary, at the time a veteran, surviving spouse, or child applies for such a pension, to: (1) inform the individual of such requirements, and (2) obtain information to determine whether a period of ineligibility for such payments will be required.
Requires annual reports from the Secretary, through 2023, on the administration of this Act.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3270 Introduced in Senate (IS)]
112th CONGRESS
2d Session
S. 3270
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 6, 2012
Mr. Wyden (for himself and Mr. Burr) introduced the following bill;
which was read twice and referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. 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--
(1) in subsection (a)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following new
paragraph:
``(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).
``(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.
``(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.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(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.
``(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.
``(E) The number of months calculated under this subparagraph shall
be equal to--
``(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 by
``(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),
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.
``(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.'';
(2) in subsection (b)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following new
paragraph:
``(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).
``(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.
``(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.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(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.
``(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.
``(E) The number of months calculated under this subparagraph shall
be equal to--
``(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 by
``(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),
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.''; and
(3) by adding at the end the following new subsection:
``(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--
``(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; or
``(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.
``(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--
``(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; and
``(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.''.
(b) Surviving Spouses and Children.--Section 1543 of such title is
amended--
(1) in subsection (a)--
(A) by redesignating paragraph (2) as paragraph
(3);
(B) by inserting after paragraph (1) the following
new paragraph (2):
``(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).
``(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.
``(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.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(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.
``(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.
``(E) The number of months calculated under this subparagraph shall
be equal to--
``(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 by
``(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),
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.''; and
(C) by adding at the end the following new
paragraph:
``(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).
``(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.
``(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.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(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.
``(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.
``(E) The number of months calculated under this clause shall be
equal to--
``(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 by
``(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),
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.'';
(2) in subsection (b)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following new
paragraph:
``(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).
``(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.
``(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.
``(C)(i) The look-back date described in this clause is a date that
is 36 months before the date described in clause (ii).
``(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.
``(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.
``(E) The number of months calculated under this clause shall be
equal to--
``(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 by
``(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),
rounded, in the case of any fraction, to the nearest whole number, but
shall not in any case exceed 36 months.''; and
(3) by adding at the end the following new subsection:
``(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--
``(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; or
``(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.
``(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--
``(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; and
``(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.''.
(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.
(d) Annual Reports.--
(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.
(2) Elements.--Each report submitted under paragraph (1)
shall include the following, for the period covered by the
report:
(A) The number of individuals who applied for
pension under chapter 15 of such title.
(B) The number of individuals who received pension
under such chapter.
(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).
(D) For each individual for whom the Secretary
denied or discontinued payment of pension under the
subsections referred to in paragraph (1)--
(i) the age of the individual;
(ii) if the individual was denied or
discontinued payment of pension because of a
transfer of resources, the value of such
transfer; and
(iii) such other information relating to
such denial or discontinuance as the Secretary
considers appropriate.
(E) Such other information as the Secretary
considers appropriate.
(3) Appropriate committees of congress defined.--In this
subsection, the term ``appropriate committees of Congress''
means--
(A) the Committee on Veterans' Affairs and the
Select Committee on Aging of the Senate; and
(B) the Committee on Veterans' Affairs of the House
of Representatives.
<all>
Introduced in Senate
Read twice and referred to the Committee on Veterans' Affairs.
Committee on Veterans' Affairs. Hearings held. Hearings printed: S.Hrg. 112-668.
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