Understanding the Application Process for Aid & Attendance Pension

Pension (aid and attendance benefit) and its sister benefit, Compensation, are two disability income programs available to veterans. Compensation is the more heavily used benefit and is available to veterans who have service-connected disabilities. VA estimates about 35% of all currently discharging veterans will apply for Compensation some time during their lives. Pension is a lesser used benefit and a lesser known disability income that is available to veterans who served during a period of war. Pension is available to war veterans who are non-service-connected disabled or age 65 and older. Special death benefit arrangements related to these two disability programs are also available to surviving dependents of veterans.

 

Claims for Compensation and Pension are submitted on the same application form and VA can grant either one. Generally, Compensation is the more desirable benefit because there is no income or asset test and it is not taxable as income. Pension works best for veteran households with very low income who do not qualify for Compensation. Pension also fits well for veteran households incurring the high costs of long term care services and in these cases may be a better alternative to Compensation.

 

In 2008, the Compensation and Pension program expects to serve 3,733,100 beneficiaries and pay out annually $41,058,000,000. This represents almost half of VA's 2008 fiscal year budget. The Compensation and Pension program plans on processing about 800,000 claims in 2008 related to these two benefits.

 

The Department of Veterans Affairs
In terms of number of employees, the Department of Veterans Affairs is the second largest federal agency, employing over 218,000 full-time workers. The Secretary of Veterans Affairs is a member of the President's Cabinet.

 

VA is divided into three benefit divisions:

  1. Veterans Health Administration -- VHA
  2. Veterans Benefits Administration -- VBA
  3. National Cemetery Administration -- NCA

There are also numerous other administrative and support divisions in the Department of Veterans Affairs devoted to supporting the 8 legislated benefit programs available to veterans..

Read More Contact a Consultant Become a Consultant