4-5a DO YOU HAVE A VA DISABILITY AND HAS THE CONDITION INCREASED IN
SEVERITY?
If yes, you should request in increase in your percent
of disability by filing VA Form 21`-4138
"Statement in Support of Claim". You can also use a blank sheet of
paper to provide the pertinent information. The first paragraph should read:
"I am requesting revaluation on my service-connected disability".
The veteran need not submit conclusive evidence that a compensable condition
has increased in severity. To persuade the VA to authorize a VA examination to
assess the severity of the condition, the veteran needs only to submit evidence
that leads the VA to conclude there is the "reasonable probability of a valid
claim". The VA may accept a private medical statement, a lay statement, even the
veteran's own statement that the service-connected disability has increased in
severity. Even a sketchy medical statement that the veteran is being treated for
the service-connected condition will almost always result in a VA examination.
If possibly, the veteran should submit a statement from the treating physician
showing the current severity of the condition. The physician should be requested
to include the "disability" outlook rather than the "treatment" outlook. For
more information contact your local VA Service Office.
(Barksdale AFB
Feb 93)
Disability Compensation
Eligibility:
Monetary
benefits, called disability compensation, are paid to veterans who are disabled
by injury or disease incurred or aggravated during active military service in
the line of duty. The service of the veteran must have been terminated
through separation or discharge under conditions that were other than
dishonorable. Monetary benefits are related to the residual effects of the
injury or disease. The amounts of the benefits, which are not subject to federal
or state income tax, are set by Congress. Disability compensation is paid in
monthly payments. Rates effective December 1, 1993:
Compensation Rates
Updated 1994 (Latest Revision)
-----------------------------------
|
Disability Monthly Rate |
-----------------------------------
| 10 percent
$ 87 |
| 20 percent 166 |
| 30 percent 253 |
| 40 percent 361 |
| 50
percent 515 |
| 60 percent 648 |
| 70 percent 819 |
| 80 percent 948
|
| 90 percent 1,067 |
| 100 percent 1,774
|
-----------------------------------
In addition, amounts up to
$5,071 per month are paid when the eligible veteran is adjudged to have suffered
certain specific,
severe disabilities. These are all decided on an individual
basis. Federal law prohibits the award of VA disability
compensation
concurrently with military retirement pay, except to the extent
the retirement pay is waived.
Allowances for
Dependents:
Veterans whose service-connected disabilities are rated
at 30 percent or more are entitled to additional allowances for
dependents.
The additional amount, from $16 to $164 a month, is determined according to the
number of dependents and the
degree of disability. A disabled veteran
evaluated 30 percent or more also is entitled to receive a special allowance for
a
spouse who is in need of the aid and attendance of another person.
Prisoners of War:
Former prisoners of war who were
incarcerated for at least 30 days are entitled to a presumption of service
connection for
disabilities resulting from certain diseases or ailments if
manifested to a degree of 10 percent at any time after active service.
These
presumptions may be rebutted by proof of other intervening causes.
Other Disability Benefits:
Specially Adapted Homes;
Disabled veterans may be entitled to a grant from VA for a home specially
adapted to their needs or for adaptations.
For a $38,000 Grant; VA may
approve a grant of not more than 50 percent of the cost of building, buying or
remodeling adapted homes or paying indebtedness on those homes already
acquired, up to a maximum of $38,000. Veterans must be entitled to
compensation for permanent and total service-connected disability due
to:
..(a) loss or loss of use of both lower extremities, such as to preclude
locomotion without the aid of braces, crutches, canes or a wheelchair,
or
..(b) disability which includes (1) blindness in both eyes, having only
light perception, plus (2)loss or loss of use of one lower extremity,
or
..(c) loss or loss of use of one lower extremity together with (1)
residuals of organic disease or injury, or (2) the loss or loss of
use of one
upper extremity, which so affects the functions of balance or propulsion as to
preclude locomotion without using
braces, canes, crutches or a wheelchair.
For $6,500 Grant; VA may approve a grant for the actual cost, up to a
maximum of $6,500, for adaptations to a veteran's
residence which are
determined by VA to be reasonably necessary. The grant also may be used to
assist eligible veterans in
acquiring a residence which has already been
adapted with special features for the veteran's disability. In the latter
situation, the
amount of the grant is based on the fair market value of the
existing special features, and not their cost. Veterans must be
entitled to
compensation for permanent and total service-connected disability due
to:
..(a) Blindness in both eyes with 5/200 visual acuity or less,
or
..(b) Anatomical loss or loss of use of both hands.
Supplemental Financing:
Veterans with available loan
guaranty entitlement may also obtain a guaranteed loan or a direct loan
from
VA to supplement the grant to acquire a specially adapted home.
Housing Insurance:
Veterans with a specially adapted
housing grant may be eligible for Veterans Mortgage Life Insurance.
Automobiles or Other Conveyances:
Veterans and
current service personnel qualify for this benefit if they have
service-connected loss of one or both hands or feet,
or permanent loss of
use, or permanent impairment of vision of both eyes. Veterans entitled to
compensation for ankylosis
(abnormal immobility) of one or both knees, or one
or both hips, also qualify for adaptive equipment for an automobile. There is
a one-time payment by VA of not more than $5,500 toward the purchase of an
automobile or other conveyance. VA will pay for adaptive equipment, and for
repair, replacement, or reinstallation required because of disability, and for
the safe operation of a vehicle purchased with VA assistance or a previously
or subsequently acquired vehicle. To apply, contact a VA regional office or
the prosthetic office at a VA medical center.
Clothing
Allowance:
Any veteran who is entitled to receive compensation for
a service-connected disability for which he or she uses prosthetic
or
orthopedic appliances, including a wheelchair that tends to wear out or
tear clothing, may receive an annual clothing allowance
of $478. Any veteran
whose service-connected skin condition requires prescribed medication that
irreparably damages the
veteran's outer garments also may receive the
allowance.
Pension Eligibility:
Veterans may be
eligible for support if they have limited income when they have 90 days or more
of active military service, at
least one day of which was during a period of
war. Their discharge from active duty must have been under conditions
other
than dishonorable. They must be permanently and totally disabled for
reasons neither traceable to military service nor to willful
misconduct.
Payments are made to qualified veterans to bring their total income, including
other retirement or Social Security
income, to an established support level.
Countable income may be reduced by unreimbursed medical expenses. Pension is
not
payable to those who have assets that can be used to provide adequate
maintenance.
Improved Pension:
Effective Dec. 1,
1994, the Improved Pension program provides for the following maximum annual
rates, generally payable
monthly. The annual payment is reduced by the amount
of the annual countable income of the veteran and the income of any
spouse or
dependent children.
Veteran without dependent spouse or
child..........................$ 7,818
Veteran with one dependent spouse or
child.........................$10,240
Veteran in need of regular aid and
attendance with no dependent....$12,504
Veteran in need of regular aid and
attendance with one dependent...$14,927
Veteran permanently housebound with
no dependent...................$ 9,556
Veteran permanently housebound with
one dependent..................$11,977
Two veterans married to one
another................................$10,240
Veterans of World War I and
Mexican Border Period,
add to the applicable annual
rate......................................$ 1,769
Increase for each
additional dependent child........................$ 1,330
Reduction While in Nursing Home or Domiciliary:
When
a veteran without a spouse or a child is being furnished nursing-home or
domiciliary care by VA, the pension is reduced
to an amount not in excess of
$90 per month after three full-calendar months of care. The reduction may be
delayed if
nursing-home care is being continued for the primary purpose of
providing the veteran with a prescribed program of
rehabilitation services.
Protected Pension Programs:
Pensioners entitled to
benefits as of Dec. 31, 1978, who do not elect to receive a pension under the
Improved Pension
program, will continue to receive pension benefits at the
rate they were entitled to receive on Dec. 31, 1978, as long as they remain
permanently and totally disabled, do not lose a dependent, or their incomes do
not exceed the adjusted income
limitation. The income limitation is increased
annually based on changes in the Consumer Price Index.
Vocational Training:
Veterans in receipt of pensions
between Feb. 1, 1985, and Dec. 31, 1995, may elect to participate in a
vocational training
program. Under this pilot program a veteran may receive
24 months or more of vocational training and related services as well
as up
to 18 months of placement and post-placement services. Work income will affect
the continuing receipt of pension.
Aid and Attendance or
Housebound:
A veteran who is a patient in a nursing home or
otherwise determined by VA to be in need of the regular aid and attendance
of
another person or who is permanently housebound may be entitled to higher
income limitations or additional benefits,
depending on the type of pension
received.
Disability Compensation
Monetary benefits, called disability compensation, are paid to veterans who are disabled by injury or disease incurred or aggravated during active military service. The service of the veteran must have been terminated through separation or discharge under conditions that were other than dishonorable. Disability compensation varies with the degree of disability and the number of dependents, and is paid monthly. The benefits are not subject to federal or state income tax. The payment of military retirement pay, disability severance pay and separation incentive payments known as SSB and VSI (Special Separation Benefits and Voluntary Separation Incentives) also affect the amount of VA compensation paid. See benefits table on page 60.
Prisoners of War
Former prisoners of war who were incarcerated for at least 30 days may be presumed to be eligible for disability compensation if they become at least 10 percent disabled from specific diseases associated with POWs. These presumptive diseases are avitaminosis, beriberi heart disease and ischemic heart disease, chronic dysentery, helminthiasis, malnutrition including optic atrophy, pellagra and other nutritional deficiencies, psychosis, anxiety states and dysthymic disorder or depressive neurosis, post-traumatic osteoarthritis, irritable bowel syndrome, peptic ulcer disease, peripheral neuropathy and residuals of cold injury to include arthritis, neuropathy and skin cancer at the site of the cold injury.
Agent Orange and other Herbicides
Nine diseases are presumed by VA to be related to exposure to Agent Orange and other herbicides. They are chloracne, porphyria cutanea tarda, soft-tissue sarcoma, Hodgkin’s disease, multiple myeloma, respiratory cancers (lung, bronchus, larynx, trachea), non-Hodgkin’s lymphoma, prostate cancer and acute and subacute peripheral neuropathy.
Military personnel who served in Vietnam and are suffering from these diseases may qualify for compensation without proving exposure to Agent Orange.
Veterans Exposed to Radiation
Veterans exposed to ionizing radiation while on active duty may be eligible for disability compensation if they have disabilities due to that exposure. To determine service-connection, factors considered include amount of radiation exposure, duration of exposure and elapsed time between exposure and onset of the disease. Conditions recognized as radiogenic include all forms of leukemia except for chronic lymphocytic leukemia; cancer of the thyroid, breast, lung, bone, liver, skin, esophagus, stomach, colon, pancreas, kidney, urinary bladder, ovaries, salivary gland and rectum; posterior subcapsular cataracts; non-malignant thyroid nodular disease; parathyroid adenoma; tumors of the brain and central nervous system; multiple myeloma; and lymphomas other than Hodgkin’s disease.
Gulf War Veterans
Gulf War veterans who suffer from chronic disabilities resulting from undiagnosed illnesses may receive disability compensation. The undiagnosed illnesses must have appeared either during active duty in the Southwest Theater of Operations during the Gulf War or at any time through Dec. 31, 2001.
The following symptoms may be manifestations of an undiagnosed illness: fatigue, skin disorders, headache, muscle pain, joint pain, neurologic symptoms, neuropsychological symptoms, symptoms involving the respiratory system, sleep disturbances, gastrointestinal symptoms, cardiovascular symptoms, abnormal weight loss and menstrual disorders.
While these categories represent the signs and symptoms frequently noted in VA’s experience to date, other signs and symptoms also could qualify for compensation. A disability is considered chronic if it has existed for at least six months.
Allowances for Dependents
Veterans whose service-connected disabilities are rated at 30 percent or more are entitled to additional allowances for dependents. The additional amount is determined according to the number of dependents and the degree of disability. A disabled veteran evaluated 30 percent or more also is entitled to receive a special allowance for a spouse who is in need of the aid and attendance of another person.
Other Disability Benefits
Specially Adapted Homes
Disabled veterans may be entitled to a grant from VA for a home specially adapted to their needs or for adaptations to a house.
For a $38,000 Grant. VA may approve a grant of not more than 50 percent of the cost of building, buying or remodeling adapted homes or paying indebtedness on those homes already acquired, up to a maximum of $38,000. Veterans must be entitled to compensation for permanent and total service-connected disability due to:
1. loss or loss of use of both lower extremities, such as to preclude locomotion without the aid of braces, crutches, canes or a wheelchair, or
2. disability that includes (a) blindness in both eyes, having only light perception, plus (b) loss or loss of use of one lower extremity, or
3. loss or loss of use of one lower extremity together with (a) residuals of organic disease or injury, or (b) the loss or loss of use of one upper extremity, which so affects the functions of balance or propulsion as to preclude locomotion without using braces, canes, crutches or a wheelchair.
For a $6,500 Grant. VA may approve a grant for the actual cost, up to a maximum of $6,500, for adaptations to a veteran's residence which are determined by VA to be reasonably necessary. The grant also may be used to assist veterans in acquiring a residence which already has been adapted with special features for the veteran's disability. Veterans must be entitled to compensation for permanent and total service-connected disability due to (1) blindness in both eyes with 5/200 visual acuity or less, or (2) anatomical loss or loss of use of both hands.
Supplemental Financing. Veterans with available loan guaranty entitlement may also obtain a guaranteed loan or a direct loan from VA to supplement the grant to acquire a specially adapted home.
Automobile Assistance
Veterans and servicemembers qualify for this benefit if they have service-connected loss of one or both hands or feet, or permanent loss of use, or permanent impairment of vision of both eyes. Veterans entitled to compensation for ankylosis (immobility) of one or both knees, or one or both hips, also qualify for adaptive equipment for an automobile. There is a one-time payment by VA of not more than $5,500 toward the purchase of an automobile or other conveyance. VA will pay for adaptive equipment, and for repair, replacement, or reinstallation required because of disability, and for the safe operation of a vehicle purchased with VA assistance. To apply, contact a VA regional office or a VA medical center.
Clothing Allowance
Any veteran who is entitled to receive compensation for a service-connected disability for which he or she uses prosthetic or orthopedic appliances may receive an annual clothing allowance. The allowance also is available to any veteran whose service-connected skin condition requires prescribed medication that damages the veteran's outer garments. To apply, contact a VA regional office.
Pension
Veterans with low incomes may be eligible for monetary support if they have 90 days or more of active military service, one day of which was during a period of war. The discharge from active duty must have been under conditions other than dishonorable. The veterans must be permanently and totally disabled for reasons not traceable to willful misconduct. Payments are made to qualified veterans to bring their total income, including other retirement or Social Security income, to a level set by Congress. Countable income may be reduced by unreimbursed medical expenses. Pension is not payable to those who have assets that can be used to provide adequate maintenance.
Improved Pension
The Improved Pension program provides for the maximum annual rates listed in the table on page 60. The payment is reduced by the amount of the countable income of the veteran and the income of the spouse or dependent children. When a veteran without a spouse or a child is being furnished nursing-home or domiciliary care by VA, the pension is reduced to an amount not to exceed $90 per month after three calendar months of care. The reduction may be delayed if nursing-home care is being continued for the primary purpose of providing the veteran with rehabilitation services.
Protected Pension Programs
Pensioners entitled to benefits as of Dec. 31, 1978, who do not elect to receive a pension under the Improved Pension program, continue to receive pension benefits at the rate they were entitled to receive on Dec. 31, 1978, as long as they remain permanently and totally disabled, do not lose a dependent, and their incomes do not exceed the income limitation, adjusted annually.
Aid and Attendance or Housebound
A veteran who is a patient in a nursing home, who is otherwise determined by VA to be in need of the regular aid and attendance of another person or who is permanently housebound, may be entitled to higher income limitations or additional benefits, depending on the type of pension received.
Medal of Honor Pension
VA administers pensions to holders of the Medal of Honor. Congress in December 1993 set the monthly pension at $400.
Education and Training
Montgomery GI Bill (Active Duty)
Eligibility
The Montgomery GI Bill (Active Duty) provides a program of education benefits to individuals who enter active duty for the first time after June 30, 1985, and receive an honorable discharge. Active duty includes full-time National Guard duty performed after Nov. 29, 1989. Members of the Army and Air Force National Guard who enlisted between June 30, 1985, and Nov. 29, 1989, had to decide before July 9, 1997, to participate in the Montgomery GI Bill (Active Duty). To receive the maximum benefit, the participant must serve for three years. An individual also may qualify for the full benefit by initially serving two continuous years on active duty, followed by four years of Selected Reserve service, beginning within one year of release from active duty.
To participate in the Montgomery GI Bill, servicemembers have their military pay reduced by $100 a month for the first 12 months of active duty. This money is not refundable. The participant must have a high school diploma or an equivalency certificate before the first period of active duty ends. Completing 12 credit hours toward a college degree also meets this requirement. Individuals who initially serve a continuous period of at least three years of active duty, even though they were initially obligated to serve less, will be paid the maximum benefit.
Benefits under this program generally end 10 years from the date of the veteran's last discharge or release from active duty, but some extenuating circumstances qualify for extensions. A veteran with a discharge upgraded by the military will have 10 years from the date of the upgrade.
Vietnam Era GI Bill and VEAP Conversions
Also eligible for Montgomery GI Bill benefits are individuals who had remaining entitlement under the Vietnam Era GI Bill on Dec. 31, 1989, and served on active duty between Oct. 19, 1984, and July 1, 1985, and continued to serve on active duty to July 1, 1988, or to July 1, 1987, followed by four years in the Selected Reserve. An individual who converts from the Vietnam Era Gl Bill must have a high school diploma or an equivalency certificate before Dec. 31, 1989. Completion of 12 credit hours toward a college degree meets this requirement. Individuals who are involuntarily separated from active duty after Feb. 2, 1991, may receive Montgomery benefits, but they must have their basic pay reduced by $1,200. Those who voluntarily separated after Oct. 23, 1992, under the Voluntary Separation Incentive or the Special Separation Benefit programs also may participate if they reduce their basic pay by $1,200.
Discharges and Separations
For the Montgomery Gl Bill program, the discharge must be honorable. Discharges designated "under honorable conditions" and "general" do not establish eligibility. A discharge for one of the following reasons may result in a reduction of the required length of active duty: (1) convenience of the government; (2) disability; (3) hardship; (4) a medical condition existing before service; (5) force reductions; (6) physical or mental conditions which prevent satisfactory performance of duty.
Education and Training Available
The following are available under the Montgomery Gl Bill:
1. Courses at colleges and universities leading to associate, bachelor or graduate degrees, and accredited independent study. 2. Courses leading to a certificate or diploma from business, technical or vocational schools.
3. Apprenticeship or on-job training programs for individuals not on active duty.
4. Correspondence courses, under certain conditions.
5. Flight training. Before beginning training, the veteran must have a private pilot license and meet the medical requirements for a commercial license throughout the training program. Benefits may be received for flying hours up to the minimum required by the FAA for a rating or certification.
6. Tutorial assistance benefits if individual is enrolled in school half-time or more. Refresher, deficiency and other training also may be available.
7. State-approved teacher certification programs.
Work-Study
Participants are paid in advance but must train at the three-quarter or full-time rate. Participants under the supervision of a VA employee may provide outreach services, prepare and process VA paperwork, and work at a VA medical facility or perform other approved activities.
Counseling
Counseling may be available for individuals who are eligible for VA educational assistance; who are on active duty and within 180 days of discharge; or who have been discharged one year or less. VA will help individuals understand their educational and vocational needs, and plan an educational or vocational goal. VA may also help individuals plan an effective job search.
Payments
Veterans who served on active duty for three years or more, or two years active duty plus four years in the Selected Reserve or National Guard, will receive $439.85 a month in basic benefits for 36 months. Those who enlist and serve for less than three years will receive $357.38 a month. VA pays an additional amount, commonly called a "kicker," if directed by the Defense Department.
Montgomery Gl Bill (Selected Reserve)
Eligibility
The Montgomery Gl Bill (Selected Reserve) provides education benefits to members of the reserve elements of the Army, Navy, Air Force, Marine Corps and Coast Guard, and to members of the Army National Guard and the Air National Guard. To be eligible for the program, a reservist must: (1) have a six-year obligation to serve in the Selected Reserve signed after June 30, 1985, or, if an officer, agree to serve six years in addition to the original obligation; (2) complete Initial Active Duty for Training (IADT); (3) have a high school diploma or equivalency certificate before completing IADT; and (4) remain in good standing in a Selected Reserve unit.
Education and Training Available
Reservists may seek an undergraduate degree or graduate training or take technical courses at colleges and universities. Those who have a six-year commitment beginning after Sept. 30, 1990, may take courses for a certificate or diploma from business, technical, or vocational schools; cooperative training; apprenticeship or on-job training; correspondence courses; independent study programs; flight training; tutorial assistance; remedial, refresher and other training; and state-approved certification programs for alternative teachers.
Work-Study
Participants are paid in advance but must train at the three-quarter or full-time rate. Participants under the supervision of a VA employee may provide outreach services, prepare and process VA paperwork, and work at a VA medical facility or perform other approved activities.
Period of Eligibility
If a reservist stays in the Selected Reserve, benefits end 10 years from the date the reservist became eligible for the program. VA may extend the 10-year period if the individual could not train due to a disability caused by Selected Reserve service. If a reservist leaves the Selected Reserve because of a disability, the individual may use the full 10 years. VA may also extend the 10-year period if the reservist was ordered to active duty. In other cases, benefits end the day the reservist leaves the Selected Reserve, except that certain individuals separated from the Selected Reserve due to downsizing of the military between Oct. 1, 1991, and Sept. 30, 1999, will have the full 10 years to use their benefits. If the 10-year period ends, however, while the participant is attending school, VA will pay benefits until the end of the term. If the training is not on a term basis, payments may continue for 12 weeks.
Counseling
Counseling may be available for individuals who are eligible for VA educational assistance; who are on active duty and within 180 days of discharge; or who have been discharged one year or less. VA will help these individuals understand their educational and vocational strengths and weaknesses and plan an educational or vocational goal. VA also may help individuals plan a job search.
Payments
The full-time rate is $208.93 a month for 36 months.
Veterans' Educational Assistance Program (VEAP)
Eligibility
Under VEAP, active duty personnel voluntarily participated in a plan for education or training in which their savings were administered and added to by the federal government. Servicepersons were eligible to enroll in VEAP if they entered active duty for the first time after Dec. 31, 1976, and before July 1, 1985. Some contribution to VEAP must have been made prior to April 1, 1987. The maximum participant contribution is $2,700. While on active duty, participants may make a lump-sum contribution to the training fund.
A serviceperson who participated in VEAP is eligible to receive benefits while on active duty if: (1) at least three months of contributions are available, except for high school or elementary school, in which case only one month of contributions is needed; and (2) the first active-duty commitment is completed. If the individual's first term is for more than six years, benefits may be available after six years. To attend an elementary or high school program, the individual must be in the last six months of the first enlistment.
A veteran who participated in VEAP is eligible to receive benefits if the discharge was under conditions other than dishonorable and: (1) the first enlistment was prior to Sept. 8, 1980; or the participant entered active duty as an officer on or before Oct. 17, 1981, and served for a continuous period of 181 days or more, or was discharged for a service-connected disability; or (2) the participant enlisted for the first time on or after Sept. 8, 1980; or entered active duty as an officer on or after Oct. 17, 1981, and completed 24 continuous months of active duty.
Education eligibility may be established even though the required active duty is not completed if the veteran: (1) receives VA disability compensation or military disability retirement; (2) served a previous period of at least 24 continuous months of active duty before Oct. 17, 1981; or (3) was discharged or released for early out, hardship or service-connected disability.
Education and Training Available
VEAP participants may pursue associate, bachelor or graduate degrees at colleges or universities. Courses leading to a certificate or diploma from business, technical or vocational schools may also be taken. Other opportunities may include apprenticeship or on-job training programs; cooperative courses; correspondence courses; tutorial assistance; refresher, deficiency and other training; and state-approved alternative teacher certification programs.
Flight training also may be pursued, including solo flying hours up to the minimum required by the FAA for the rating or certification being pursued. Before beginning training, the veteran must have a private pilot license and meet the medical requirements for a commercial license throughout the training program.
A participant may study abroad in programs leading to a college degree and in programs which offer, as part of the curriculum, nontraditional training away from school. A participant with a deficiency in a subject may receive tutorial assistance benefits if enrolled half-time or more.
Period of Eligibility
A veteran has 10 years from the date of last discharge or release from active duty to use VEAP benefits. This 10-year period can be extended by the amount of time the veteran could not train because of a disability or because of being held by a foreign government or power. The 10-year period may also be extended if the veteran reenters active duty for 90 continuous days or more after becoming eligible. For periods of less than 90 days, the veteran may qualify for extensions under certain circumstances. The extension ends 10 years from the date of discharge or release from the later active duty period. A veteran with a discharge upgraded by the military will have 10 years from the date of the upgrade.
Work-Study
Participants are paid in advance but must train at the three-quarter or full-time rate
Payments
When the participant elects to use VEAP benefits, the Defense Department will match the participant's contribution at the rate of $2 for every $1 the individual put into the fund. Defense also may make additional contributions to the fund in exchange for special duties performed by the participant.
Vocational and Educational Counseling
Counseling may be available for veterans who are eligible for VA educational assistance; who are on active duty and within 180 days of discharge; or who have been discharged one year or less. VA will help individuals understand their educational and vocational needs and help plan an educational or vocational goal. VA also may help in the search for a job.
Vocational Rehabilitation
A disabled veteran may receive employment assistance, self-employment assistance, training in a rehabilitation facility, and college and other training. Severely disabled veterans may receive assistance to improve their ability to live independently. The current rates for rehabilitation pay are on page 61.
Eligibility
Veterans and servicemembers are eligible for vocational rehabilitation if:
1. They suffered a service-connected disability or disabilities in active service, and are receiving at least 20 percent compensation or would do so but for receipt of military retirement pay. Veterans with a 10 percent disability also may be found eligible if they have a serious employment handicap.
2. They were discharged or released under other than dishonorable conditions or are hospitalized awaiting separation for a service-connected disability.
3. They need vocational rehabilitation to overcome an employment handicap caused by their service-connected disability.
Period of Rehabilitation Program
The veteran must complete a rehabilitation program 12 years from the date of receiving a service-connected disability rating. This period may be extended if a medical condition prevented the veteran from training or if the veteran has a serious employment handicap. Disabled veterans may receive services until they have reached their rehabilitation goal, up to 48 months. VA may provide counseling, job placement and post-employment services for up to 18 additional months.
Rehabilitation Program Costs
While in training and for two months after completing training, eligible veterans may receive subsistence allowances in addition to their disability compensation or retirement pay. Servicemembers cannot receive subsistence allowances until they leave active duty. VA may pay the costs of tuition and required fees, books, supplies and equipment. VA may also pay for special support, such as tutorial assistance, prosthetic devices, lip-reading training and signing for the deaf. VA will help the veteran to pay for at least part of the transportation expenses unique to disabled persons during training or employment services. VA also may provide an advance against future benefit payments for veterans who run into financial difficulties during training.
Work-Study
Participants are paid in advance but must train at the three-quarter or full-time rate. Participants under the supervision of a VA employee may provide outreach services, prepare and process VA paperwork, work at a VA medical facility or perform other approved activities.
Program for Unemployable Veterans
Veterans awarded 100 percent disability compensation based upon unemployability may request an evaluation and, if found eligible, may participate in a vocational rehabilitation program and receive assistance in securing employment. A veteran with an unemployability rating who secures employment under the special program will continue to receive disability compensation without reduction until the veteran has worked continuously for 12 months.
Home Loan Guaranties
VA loan guaranties loans are made to servicemembers, veterans, reservists and unremarried surviving spouses for the purchase of homes, condominiums and manufactured homes and for refinancing loans. VA guarantees part of the total loan, permitting the purchaser to obtain a mortgage with a competitive interest rate, even without a down payment if the lender agrees. VA requires a down payment for the purchase of a manufactured home. VA also requires a down payment for a home or condominium if the purchase price exceeds the reasonable value of the property or the loan has a graduated payment feature. With a VA guaranty, the lender is protected against loss up to the amount of the guaranty if the borrower fails to repay the loan. A VA loan guaranty can be used to:
1. Buy a home.
2. Buy a residential condominium.
3. Build a home.
4. Repair, alter or improve a home.
5. Refinance an existing home loan.
6. Buy a manufactured home with or without a lot.
7. Buy and improve a manufactured home lot.
8. Install a solar heating or cooling system or other weatherization improvements.
9. Purchase and improve a home simultaneously with energy- efficient improvements.
10. Refinance an existing VA loan to reduce the interest rate and make energy efficient improvements.
11. Refinance a manufactured home loan to acquire a lot.
Eligibility
Applicants must have a good credit rating, have an income sufficient to support mortgage payments, and agree to live in the property. To obtain a VA certificate of eligibility, complete VA Form 26-1880, "Request for Determination of Eligibility and Available Loan Guaranty Entitlement," and submit it to the nearest VA regional office. Eligibility varies with service.
World War II: (1) active duty service after Sept. 15, 1940, and prior to July 26, 1947; (2) discharge under other than dishonorable conditions; and (3) at least 90 days service unless discharged early for service-connected disability.
Post-World War II: (1) active duty service after July 25, 1947, and prior to June 27, 1950; (2) discharge under other than dishonorable conditions; and (3) 181 days continuous active duty unless discharged early for service-connected disability.
Korean Conflict: (1) active duty after June 26, 1950, and prior to Feb. 1, 1955; (2) discharge under other than dishonorable conditions; and (3) at least 90 days total service, unless discharged early for service-connected disability.
Post-Korean Conflict: (1) active duty between Jan. 31, 1955, and Aug. 5, 1964; (2) discharge under conditions other than dishonorable; (3) 181 days continuous service, unless discharged early for service-connected disability.
Vietnam: (1) Active duty after Aug. 4, 1964, and prior to May 8, 1975; (2) Discharge under conditions other than dishonorable; and (3) 90 days total service, unless discharged early for service-connected disability. For veterans who served in the Republic of Vietnam, the beginning date is Feb. 28, 1961.
Post-Vietnam: For veterans whose enlisted service began before Sept. 8, 1980, or whose service as an officer began before Oct. 17, 1981: (1) active duty for 181 continuous days, all of which occurred after May 7, 1975, and (2) discharge under conditions other than dishonorable; or (3) early discharge for service-connected disability. For veterans separated from enlisted service between Sept. 8, 1980, and Aug. 1, 1990, or service as an officer between Oct. 17, 1981, and Aug. 1, 1990: (1) completion of 24 months of continuous active duty or the full period — at least 181 days — for which the person was called or ordered to active duty, and discharge under conditions other than dishonorable; or (2) completion of at least 181 days of active duty with a hardship discharge or discharge for the convenience of the government, reduction in force or certain medical conditions; or (3) early discharge for service-connected disability.
Gulf War: (1) completion of 24 months of continuous active duty or the full period and at least 90 days for which the person was called to active duty, and discharge from active duty under conditions other than dishonorable; or (2) discharge after at least 90 days with a hardship discharge, discharge at the convenience of the government, reduction in force or certain medical conditions, or discharge for service-connected disability. Reservists and National Guard members are eligible if they were activated after Aug. 1, 1990, served at least 90 days, and were discharged honorably.
Active Duty Personnel: Until the Persian Gulf era is ended by law or Presidential Proclamation, persons on active duty are eligible after serving on continuous active duty for 90 days. Six-month enlistees who serve for six months on active duty for training only are not eligible, but they may be eligible for FHA Home Mortgage Insurance for veterans.
Members of the Selected Reserve: Individuals are eligible if they have completed at least six years in the reserves or National Guard or were discharged because of a service-connected disability. This eligibility expires Oct. 28, 1999.
Others: Others eligible include unremarried spouses of veterans or reservists who died on active duty or as a result of service-connected causes; spouses of active-duty servicemembers who have been missing in action or a prisoner of war for at least 90 days; U.S. citizens who served in the armed forces of a U.S. ally in World War II; and members of organizations with recognized contributions to the U.S. World War II effort. Eligibility may be determined at any VA regional office.
Guaranty Amount
The amount of the VA guaranty available to an eligible veteran is called the entitlement, and may be considered the equivalent of a down payment by lenders. Up to $50,750 in entitlement may be available to veterans purchasing or constructing homes to be financed with a loan of more than $144,000 and to veterans who obtain an Interest Rate Reduction Refinancing Loan of more than $144,000. The amount of entitlement varies with the loan amount. Loan guaranty limits are listed in a table on page 64.
VA does not establish a maximum loan amount. No loan for the acquisition of a home, however, may exceed the reasonable value of the property. A loan for the purpose of refinancing existing mortgage loans or other liens secured on a dwelling is generally limited to 90 percent of the appraised value of the dwelling. A loan to reduce the interest rate on an existing VA-guaranteed loan, however, can be made for an amount equal to the outstanding balance on the old loan plus closing costs, reasonable discount points and energy efficient improvements. A loan for the purchase of a manufactured home or lot is limited to 95 percent of the amount that would be subject to finance charges. In addition to these limits, the VA funding fee and up to $6,000 in energy-efficient improvements may be included.
A veteran who previously obtained a VA loan can use the remaining entitlement for a second purchase. The amount of remaining entitlement is the difference between $36,000, or $50,750 for special loans, and the amount of entitlement used on prior loans. Veterans refinancing an existing VA loan with a new VA loan at a lower interest rate need not have any entitlement available for use.
Required Occupancy
Veterans must certify that they intend to live in the home they are buying or building with a VA guaranty. A veteran who wishes to refinance or improve a home with a VA guaranty also must certify to being in occupancy at the time of application. A spouse may certify occupancy if the buyer is on active duty. In refinancing a VA-guaranteed loan solely to reduce the interest rate, veterans need only certify to prior occupancy.
Closing Costs
Payment in cash is required on all home loan closing costs, including title search and recording, hazard insurance premiums, prepaid taxes and a 1 percent origination fee, which may be required by lenders in lieu of certain other costs. In the case of refinancing loans, all such costs may be included in the loan, as long as the total loan does not exceed 90 percent of the reasonable value of the property. Interest Rate Reduction Refinancing Loans may include closing costs and a maximum of 2 discount points. Loans, including refinancing loans, are charged a funding fee by VA, except for loans made to disabled veterans and unremarried surviving spouses of veterans who died as a result of service. The VA funding fee is based on the loan amount and, at the discretion of the veteran and the lender, may be included in the loan. Funding fee rates are listed in a table on page 64.
Financing, Interest Rates and Terms
Veterans obtain VA-guaranteed loans through the usual lending institutions, including banks, savings and loan associations, building and loan associations and mortgage loan companies. Veterans may obtain a loan with a fixed interest rate, which may be negotiated with the lender. If the lender charges discount points on the loan, the veteran may negotiate with the seller as to who will pay points or if they will be split between buyer and seller. Points paid by the veteran may not be included in the loan, except that a maximum of 2 points may be included in Interest Rate Reduction Refinancing Loans. The term of the loan may be for as long as 30 years and 32 days. VA normally does not require that a down payment be made. VA does require a down payment for a manufactured home or lot loan, and for a loan with graduated payment features. And a down payment is required to prevent the amount of a loan from exceeding VA's determination of the property's reasonable value. If the sale price exceeds the reasonable value, the veteran must certify that the difference is being paid in cash without supplementary borrowing. A cash down payment of 5 percent of the purchase price is required for manufactured home or lot loans.
Release of Liability
When a veteran sells a home financed through a VA guaranty to a purchaser who assumes the loan, the veteran may request release from liability to the federal goverment provided the loan is current, the purchaser has been obligated by contract to purchase the property and assume all of the veteran's liabilities, and VA is satisfied that the purchaser is a good risk. A release of liability does not mean that a veteran’s guaranty entitlement is restored. VA usually restores entitlement only when it is no longer liable. If the new veteran-buyer, however, agrees to substitute entitlement for that of the original veteran-buyer, entitlement may be restored to the original veteran-buyer.
For loans made on or after March 1, 1988, a release from liability determination must be made in every case involving the assumption of a VA-guaranteed loan. This will involve a determination of the good credit of the buyer assuming the loan by the holder of the loan or VA. A VA loan for which a commitment was made on or after March 1, 1988, is not assumable without approval of VA or its authorized agent. The person who assumes a VA loan for which a commitment was made on or after March 1, 1988, must pay a fee to VA equal to 1/2 of 1 percent of the balance of the loan being assumed. If a person disposes of the property securing a VA-guaranteed loan for which a commitment was made after March 1, 1988, without first notifying the holder of the loan, the holder may demand immediate and full payment of the loan.
Loans for Native Americans
VA direct home loans are available to eligible Native American veterans who wish to purchase, construct or improve a home on Native American trust land. These loans may be used to simultaneously purchase and improve a home. Direct loans also are available to reduce the interest rate on existing loans obtained under this program. VA direct loans may be limited to the cost of the home or $80,000, whichever is less. Before a Native American veteran can obtain a loan under this program, tribal officials and the Secretary of Veterans Affairs must sign an agreement that spells out the program. A funding fee must be paid to VA. The fee is 1.25 percent for loans to purchase, construct or improve a home. For loans to refinance an existing loan, the fee is 0.5 percent of the loan amount. Veterans receiving compensation for service-connected disability are not required to pay the funding fee. Veterans who qualify based on service in the Reserves or National Guard that was not active duty are charged a funding fee of 2 percent of the loan amount. The funding fee may be paid in cash or included in the loan. Other closing costs may not be included in the loan. The following may not be included in the loan: VA appraisal, credit report, loan processing fee, title search, title insurance, recording fees, transfer taxes, survey charges and hazard insurance.
Repossessed Houses
VA sells homes that have been acquired after foreclosure of a VA-guaranteed loan. These homes are available to both veterans and nonveterans. Contact local real estate agents for available listings.
Safeguards for Veterans
1. Homes completed less than a year before purchase with VA financing and inspected during construction by either VA or HUD must meet VA requirements.
2. VA may suspend from the loan program those who take unfair advantage of veteran borrowers or decline to sell a new home or make a loan to an eligible veteran of good credit because of race, color, religion, sex, disability, family status or national origin.
3. The builder of a new home is required to give the purchasing veteran a one-year warranty that the home has been constructed to VA-approved plans and specifications. A similar warranty must be given for new manufactured homes.
4. In cases of new construction completed under VA or HUD inspection, VA may pay or otherwise compensate the veteran borrower for correction of structural defects seriously affecting livability if assistance is requested within four years of a home-loan guaranty.
5. The borrower obtaining a loan may only be charged the fees and other charges prescribed by VA as allowable.
6. The borrower can prepay without penalty the entire loan or any part not less than the amount of one installment or $100.
7. VA encourages holders to extend forbearance if a borrower becomes temporarily unable to meet the terms of the loan.
Life Insurance
Two regular and two disabled insurance programs are currently open for new policyholders. Servicemember’s Group Life Insurance is open to active-duty members of the uniformed services. Veterans’ Group Life Insurance is available to individuals released from active duty after Aug. 1, 1974, and to reservists. Service Disabled Insurance is available for veterans with service-connected disabilities. Veterans’ Mortgage Life Insurance provides mortgage life insurance for veterans granted specially adapted housing grants.
Servicemembers’ Group Life Insurance
The following are automatically insured for $200,000 under Servicemembers’ Group Life Insurance (SGLI): active-duty members of the Army, Navy, Air Force, Marines and Coast Guard; commissioned members of the National Oceanic and Atmospheric Administration and the Public Health Service; cadets or midshipmen of the service academies; members, cadets and midshipmen of the ROTC while engaged in authorized training; and members of the Ready Reserves. Individuals may elect to be covered for a lesser amount or not to be covered at all. Part-time coverage may be provided to members of the Reserves who do not qualify for full-time coverage. Premiums are deducted automatically from an individual's pay or are collected by the individual’s service.
Veterans’ Group Life Insurance
SGLI may be converted to Veterans’ Group Life Insurance (VGLI), which is renewable five-year term coverage. This program is administered by the Office of Servicemens’ Group Life Insurance (OSGLI), 213 Washington St., Newark, NJ 07102. VGLI is available to: (a) individuals with full-time SGLI coverage upon release from active duty or the reserves; (b) individuals with part-time SGLI coverage who incur a disability or aggravate a pre-existing disability during a reserve period which renders them uninsurable at standard premium rates; and (c) members of the Individual Ready Reserve and Inactive National Guard.
Individuals entitled to SGLI coverage can convert to VGLI by submitting the premium within 120 days of separating from active duty. After 121 days, the veteran may be granted VGLI provided initial premium and evidence of insurability are submitted within one year after termination of the veteran's SGLI coverage. Individuals with full-time SGLI coverage who are totally disabled at the time of separation and whose service makes them eligible for VGLI may purchase the insurance while remaining totally disabled up to one year following separation.
Service Disabled Veterans Insurance
A veteran who has a service-connected disability but is otherwise in good health may apply to VA for up to $10,000 in life insurance coverage at standard insurance rates . This insurance is limited to veterans who left service after April 24, 1951. Veterans who are totally disabled may apply for a waiver of premiums. For those veterans who are eligible for this waiver, additional coverage of up to $20,000 is available. Premiums cannot be waived on the additional insurance.
Veterans’ Mortgage Life Insurance
The maximum amount of mortgage life insurance available for those granted a specially adapted housing grant is $90,000. Pro- tection is automatic unless the veteran declines. Premiums are au- tomatically deducted from VA benefit payments or paid direct, if the veteran does not draw compensation, and will continue until the mortgage has been liquidated, the home is sold, or the coverage terminates when the veteran reaches age 70. If a mortgage is disposed of, VMLI may be obtained on the mortgage of another home.
Insurance Dividends
Some insurance programs pay dividends. The dividends are paid on the policy anniversary date. The Internal Revenue Service has announced that interest on insurance dividends left on deposit with VA is not taxable. For details on this ruling contact the IRS.
Assistance with Insurance
For information about government life insurance, call the VA Insurance Center in Philadelphia toll-free, 1-800-669-8477. Specialists are available between the hours of 8:30 a.m. and 6 p.m., Eastern Time, to discuss premium payments, insurance dividends, changes of address, policy loans, naming beneficiaries and reporting the death of the insured. After hours a caller may listen to recorded insurance information or leave a recorded message to be answered on the next workday. If the policy number is unknown, send the veteran's VA file number, date of birth, Social Security number, military serial number or military service branch and dates of service to:
Department of Veterans Affairs
Regional Office and Insurance Center
Box 42954
Philadelphia, PA 19101
Increasing Insurance. Policyholders with National Service Life Insurance can use their dividends to purchase additional paid up coverage. Policyholders with Veterans Special Life Insurance and Veterans Reopened Insurance can purchase additions to coverage.
Reinstating Lapsed Insurance. Some lapsed term policies may be reinstated within five years from the date of lapse. Contact the Insurance Center for details. A five-year term policy that is not lapsed at the end of the term period is automatically renewed for an additional five-year period. The exception is the National Service Life Limited Convertible Term Plan, which may be converted to a permanent plan but may not be renewed after age 50.
Converting Term Policies. A term policy that is in force may be converted to a permanent plan. Upon reaching renewal at age 70 or older, National Service Life term policies on total disability premium waiver are automatically converted to a permanent insurance, which provides cash, loan value and higher dividends.
Modified Life Policy. A “modified life at age 65” plan is available to National Service Life policyholders. The premium rates for this plan remain the same throughout the premium-paying period, while the face value reduces by 50 percent at age 65. The reduced amount may be replaced with a “special ordinary life.” A “modified life at age 70” plan also is available.
Disability Provisions. National Service Life policyholders who become totally disabled should consult VA about premium waivers. U.S. Government Life policyholders who become totally disabled should consult VA about receiving monthly payments.
Borrowing on Policies. Policyholders may borrow up to 94 percent of the cash surrender value of their insurance and continue the insur-ance in force by payment of premiums. Interest on policy loans is compounded annually. The current interest rate may be obtained at any VA office, or by calling toll-free 1-0800-669-8477.
Burial Benefits
Burial in National Cemeteries
VA Cemeteries
Burial benefits in a VA national cemetery include the gravesite, a headstone or marker, opening and closing of the grave, and perpetual care. Many national cemeteries have columbaria or gravesites for cremated remains. To contact a cemetery, see the "VA Facilities" section in the back of this book.
Veterans, servicemembers and dependents are eligible for burial in a VA national cemetery. An eligible veteran must have been discharged or separated from active duty under conditions other than dishonorable and have completed the required period of service. Persons entitled to retired pay as a result of 20 years creditable service with a reserve component are eligible. A U.S. citizen who served in the armed forces of a government allied with the United States in a war also may be eligible. A 1997 law bars any veteran convicted of a federal or state capital crime from being buried or memorialized in one of the VA national cemeteries or in Arlington National Cemetery.
Spouses and minor children of eligible veterans and of service- members also may be buried in a national cemetery. If a surviving spouse of an eligible veteran marries a nonveteran, and remarriage was terminated by death or divorce of the nonveteran, the spouse is eligible for burial in a national cemetery.
Gravesites in national cemeteries cannot be reserved. Funeral directors or others making burial arrangements must apply at the time of death. Reservations made under previous programs are honored. Cemeteries do not provide military honors but may make referrals to military units or volunteer groups. The National Cemetery System normally does not conduct burials on weekends. A weekend caller, however, will be directed to one of three VA cemetery offices that remain open during weekends to schedule burials at the cemetery of the caller's choice during the following week.
Arlington National Cemetery
Arlington National Cemetery is under the jurisdiction of the Army. Eligibility for burials is more limited than other national cemeteries. Eligibility for cremated remains in Arlington's columbarium is the same as eligibility for burial in VA national cemeteries. For information on Arlington burials, write to Superintendent, Arlington National Cemetery, Arlington, VA 22211, or call 703-695-3250.
Interior Department, State Veteran Cemeteries
The two active national cemeteries administered by the Department of the Interior are Andersonville National Cemetery in Georgia and Andrew Johnson National Cemetery in Tennessee. Eligibility for burial is similar to VA cemetery eligibility. Cemeteries for veterans also are operated by many states. For burials in these ce- meteries, contact the cemetery or the applicable state.
Headstones and Markers
VA provides headstones and markers for the unmarked graves of veterans anywhere in the world and for eligible dependents of veterans buried in national, state veteran or military post cemeteries. Flat bronze, flat granite, flat marble, upright granite and upright marble types are available to mark the grave in a style consistent with the cemetery. Niche markers also are available for cremated remains.
Headstones and markers are inscribed with the name of the deceased, branch of service, and the years of birth and death. Optional items that may be inscribed are military grade, rank or rate; war service such as "World War II"; months and days of birth and death; an emblem reflecting one's religion; and text indicating valor awards. When burial is in a national, state veteran or military post cemetery, the headstone or marker is ordered through the cemetery, which will place it on the grave. Information on style, inscription and shipping can be obtained from the cemetery.
When burial occurs in a cemetery other than a national, military post or state veterans cemetery, the headstone or marker must be applied for from VA. It is shipped at government expense. VA, however, does not pay the cost of placing the headstone or marker. To apply, complete VA Form 40-1330 and forward it to Director, Memorial Programs Service (403A), National Cemetery System, Department of Veterans Affairs, Washington, DC 20420.
Forms and assistance are available at VA regional offices. For information regarding the status of an application, write to the Director, Memorial Programs Service (403A), or call 1-800-697-6947. VA cannot issue a headstone or marker for a spouse or child buried in a private cemetery. Twenty-year reservists are eligible for a headstone or grave marker, if they are entitled to military retired pay at the time of death.
Headstones or Markers for Memorial Plots
To memorialize an eligible veteran whose remains are not available for burial, VA will provide a memorial headstone or marker. The headstone or marker is the same as that used to identify a grave except that the mandatory phrase "In Memory of" precedes the inscription. The headstone or marker is available to memorialize eligible