M21-1 Manual  /  Part XIII, Subpart ii, Chapter 1, Section B

Social Security Administration (SSA) Requests for the Amount of Department of Veterans Affairs (VA) Benefits Received

M21-1, Part XIII, Subpart ii, Chapter 1, Section B

Overview

In This Section

 This section contains the following topics:
TopicTopic Name
1 General Information About SSA Requests for the Amount of VA Benefits a Supplemental Security Income (SSI) Claimant Receives
2 Considering Offsets, Deductions, and Withholdings When Calculating VA Income for SSA Purposes
3 Considering the Additional Benefits VA Pays for Dependents and Benefits VA Pays to Apportionees
4 Excluding Additional Benefits VA Pays in the Form of Special Monthly Compensation (SMC) or Because an Individual Is Housebound or Requires Aid and Attendance (A&A)
5 Excluding Unreimbursed Medical Expenses (UMEs) When Calculating VA Income for SSA Purposes

1. General Information About SSA Requests for the Amount of VA Benefits an SSI Claimant Receives

Introduction

 This topic contains general information about SSA requests for the amount of VA benefits an SSI claimant receives, including
  • why SSA requires information about VA benefits
  • SSA/VA data exchange system and SSA’s use of SSA Form L1103, SSI Request for Information
  • types of benefits SSA
    • recognizes as VA income, and
    • does not recognize as VA income
  • recurring versus non-recurring benefit payments
  • determining the date and amount of non-recurring benefit payments
  • handling SSA
    • requests for payment information on multiple SSI claimants, and
    • inquiries involving nursing home patients
  • calculations that result in a negative amount of VA income for SSA purposes, and
  • work credit for responding to SSA.

Change Date

June 14, 2015

XIII.ii.1.B.1.a. Why SSA Requires Information About VA Benefits

 In administering the Supplemental Security Income (SSI) program, Social Security Administration (SSA) field offices are charged with identifying all of an SSI claimant’s resources, including “income” in the form of monetary benefits from the Department of Veterans Affairs (VA) (hereafter referred to as “VA income for SSA purposes”).

XIII.ii.1.B.1.b. SSA/VA Data Exchange System and SSA’s Use of SSA Form L1103

 The SSA/VA data exchange system is programmed to provide SSA with
  • the amount of monetary benefits VA pays to an individual beneficiary for him/herself, and
  • the amount of additional monetary benefits VA pays the beneficiary for each of his/her dependents.
In some instances, the system is unable to determine the amounts referenced in the above paragraph. When this occurs, SSA asks VA to provide a breakdown on SSA Form L1103, SSI Request for Information, of the benefits VA paid to or for an SSI claimant during a specific time period. SSA identifies the SSI claimant by entering his/her name in Part I of the form. Use the table below for the location on SSA Form L1103 where SSA expects VA to enter an SSI claimant’s VA income for SSA purposes.
If the SSI claimant is ...Then ...
a Veteran or surviving spouse enter the Veteran’s or surviving spouse’s VA income for SSA purposes in Part II, Section C, of SSA Form L1103.
a Veteran’s spouse, child, or parent enter the spouse’s, child’s, or parent’s VA income for SSA purposes in Part II, Section D, of SSA Form L1103.

XIII.ii.1.B.1.c. Types of Benefits SSA Recognizes as VA Income

 SSA recognizes the disability or death benefits VA pays to an SSI claimant as income for SSA purposes. SSA also recognizes the following benefits that VA pays as income for SSA purposes:
  • Naval pension
  • benefits under the Restored Entitlement Program for Survivors (REPS), and
  • benefits under 38 U.S.C. 1312(a).
The table below describes relevant information about the latter three benefits.
Type of BenefitInformation Relevant to the Calculation of VA Income for SSA Purposes
Naval pension An important difference between Naval pension and VA disability and death benefits is that recipients of disability or death benefits may establish entitlement to additional benefits for their dependents. As explained in M21-1, Part XIII, Subpart ii, 1.B.3.a, the additional benefits VA pays for dependents are not countable as VA income for SSA purposes. Therefore, the entire amount of Naval pension that remains, after applying the provisions of M21-1, Part XIII, Subpart ii, 1.B., is considered VA income for SSA purposes.
benefits VA pays under REPS or 38 U.S.C. 1312(a) Benefits under REPS or 38 U.S.C. 1312(a) are payable to eligible dependents of certain deceased Veterans. If a Veteran had multiple dependents, and they are all entitled to one of these benefits, VA does not pay the benefit to all the dependents in a combined award. Rather, it pays benefits in separate awards to each entitled dependent. Therefore, the entire amount of benefits that remains, after applying the provisions of M21-1, Part XIII, Subpart ii, 1.B.2, is considered VA income for SSA purposes.
References: For more information on

XIII.ii.1.B.1.d. Types of Benefits SSA Does Not Recognize as VA Income

 SSA does not recognize VA educational benefits or Medal of Honor Pension as income for the purpose of determining a claimant’s entitlement to SSI. Nevertheless, SSA wants to know if an SSI claimant received either of these benefits during the time period SSA specifies in Part I of SSA Form L1103. Use the table below if the corporate record shows an SSI claimant received educational benefits or Medal of Honor Pension during the time period SSA specified.
If an SSI claimant received ...Then ...
educational benefits during the time period SSA specified check the box labeled Educational Benefits in Part II, Section A, of SSA Form L1103.
Medal of Honor Pension during the time period SSA specified hand-write Medal of Honor Pension along the bottom of Part II, Section A, along with the amount of Medal of Honor Pension the beneficiary received each month during the same time period.
Important: If a Veteran is entitled to both Medal of Honor Pension and disability compensation or pension, VA pays both benefits to the Veteran in a single award. Regardless of whether a Veteran received this benefit by itself or in combination with disability compensation or pension, exclude it when calculating the Veteran’s VA income for SSA purposes. Reference: For more information on Medal of Honor Pension, see M21-1, Part XIII, Subpart i, 6.

XIII.ii.1.B.1.e. Recurring Versus Non-Recurring Benefit Payments

 A response to an SSA inquiry on SSA Form L1103 typically requires consideration of recurring benefit payments only. Notes:
  • Use the information in M21-1, Part XII, Subpart ii, 2.C.1 to reply to SSA requests for information concerning benefits VA paid under 38 U.S.C. 1312(a).
  • When completing Part II of SSA Form L1103, report the amount of benefits VA paid the SSI claimant each month during the time period SSA specified in Part I of the form. This amount might be different than the amount VA currently pays.
  • SSA is specifically interested in
    • payment receipt dates, not effective dates, and
    • the distinction between recurring and non-recurring (retroactive) benefit payments.

XIII.ii.1.B.1.f. Determining the Date and Amount of Non-Recurring Benefit Payments

 Perform a payment inquiry through the Share application to determine the date and amount of any non-recurring benefit payment VA made if, during the time period SSA specified in Part I of SSA Form L1103, VA authorized
  • an amended award that increased benefits retroactively, or
  • an award based on an initial or supplemental claim.
Note: Non-recurring, one-time payments appear as type CP-ONE-T on the PAYMENT HISTORY INQUIRY screen. Reference: For more information on using Share for payment inquiries, see the Share User Guide.

XIII.ii.1.B.1.g. Handling SSA Requests for Payment Information on Multiple SSI Claimants

 SSA may simultaneously request payment information on multiple SSI claimants, listing in Part I of SSA Form L1103 the names of claimants for whom it is requesting information. VA must provide the requested information for each SSI claimant SSA lists on the form. If the response will not fit in the space provided on SSA Form L1103, attach a continuation sheet and transfer the following identification information from the top of SSA Form L1103 to the top of the continuation sheet:
  • the name of the claimant, and
  • the claimant’s Social Security number.

XIII.ii.1.B.1.h. Handling SSA Inquiries Involving Nursing Home Patients

 If SSA indicates on SSA Form L1103 that an SSI claimant is a nursing home patient, and the claimant receives current-law pension in excess of $90.00 per month, determine whether reduction under 38 U.S.C. 5503(f) is in order. Regional office (RO) management must ensure other divisions that process SSA Form L1103 are aware they must refer the form to the Veterans Service Center or pension management center when the circumstances described in the above paragraph exist.

XIII.ii.1.B.1.i. Calculations That Result in a Negative Amount of VA Income for SSA Purposes

 If any of the calculations described in this section result in a negative amount of VA income for SSA purposes, consider the income to be $0.00.

XIII.ii.1.B.1.j. Work Credit for Responding to SSA

Each time an RO completes and returns SSA Form L1103 to SSA, the RO should clear end product 290 for proper work credit, using the claim label SSA Request for VA Benefit Information.

2. Considering Offsets, Deductions, and Withholdings When Calculating VA Income for SSA Purposes

Introduction

This topic contains instructions for considering offsets, deductions, and withholdings when calculating VA income for SSA purposes, including

  • determining whether an offset, deduction, or withholding exists
  • offsets, deductions, and withholdings that must not be included in calculations of VA income for SSA purposes, and
  • offsets, deductions and withholdings that must be included in calculations of VA income for SSA purposes.

Change Date

June 14, 2015

XIII.ii.1.B.2.a. Determining Whether an Offset, Deduction, or Withholding Exists

 When calculating an SSI claimant’s VA income for SSA purposes, always perform a corporate inquiry in Share and check the AWARD INFORMATION tab to determine whether, during the time period SSA specified in Part I of SSA Form L1103,
  • an offset existed against the SSI claimant’s VA benefits, or
  • VA deducted or withheld benefits from the SSI claimant’s award.
References: For more information on
  • using Share, see the Share User Guide, and
  • determining the effect that an offset, withholding, or deduction has on an SSI claimant’s VA income for SSA purposes, see M21-1, Part XIII, Subpart ii, 1.B.2.b and c.

XIII.ii.1.B.2.b. Offsets, Deductions, and Withholdings That Must Not Be Included in Calculations of VA Income for SSA Purposes

 If VA offset, deducted, or withheld benefits during the time period SSA specified in Part I of SSA Form L1103 for any of the following reasons, do not include in the calculation of VA income for SSA purposes the amount of benefits VA offset, withheld, or deducted for that reason:
  • 38 U.S.C. Chapter 30/10 U.S.C. Chapter 1606 offset
  • 38 U.S.C. Chapter 31 receivable
  • 38 U.S.C. Chapter 31 revolving fund loan
  • trainee tools
  • recoupment of disability severance pay
  • recoupment of separation pay
  • military retired pay adjustment
  • drill pay adjustment
  • Radiation Exposure Compensation Act (RECA) adjustment
  • pending appointment of a fiduciary
  • pending confirmation of spouse as fiduciary
  • pending confirmation of continued eligibility
  • pending apportionment decision
  • recoupment of tort settlement
  • workers compensation adjustment
  • hospitalized basic pension adjustment
  • hospitalized Special Monthly Compensation (SMC) adjustment, or
  • incarceration adjustment.

XIII.ii.1.B.2.c. Offsets, Deductions, and Withholdings That Must Be Included in Calculations of VA Income for SSA Purposes

 If VA offset, deducted, or withheld benefits during the time period SSA specified in Part I of SSA Form L1103 for any reason other than those listed in M21-1, Part XIII, Subpart ii, 1.B.2.b, include in the calculation of VA income for SSA purposes the amount of benefits VA offset, withheld, or deducted each month for that reason. The most common of these reasons are
  • compensation or pension receivable (receivable code 30B), and
  • attorney fees (receivable code 31B or deduction code 31J).
Important: If VA withheld benefits to recoup a compensation or pension receivable during the time period SSA specified, request from finance activity the information required to complete the fields in Part II, Section G, of SSA Form L1103.

3. Considering the Additional Benefits VA Pays for Dependents and Benefits VA Pays to Apportionees

Introduction

 This topic discusses how to treat the additional benefits VA pays to beneficiaries for their dependents and benefits VA pays to apportionees when calculating VA income for SSA purposes, including
  • exclusions from the calculation of VA income for SSA purposes, and
  • completing Part II, Section D, of SSA Form L1103.

Change Date

June 14, 2015

XIII.ii.1.B.3.a. Exclusions From the Calculation of VA Income for SSA Purposes

 When calculating VA income for SSA purposes for a Veteran or surviving spouse, exclude as income the amount of additional benefits VA pays the beneficiary for dependent(s). Exceptions:
  • Do not exclude from the calculation of VA income for SSA purposes the “two-year transitional benefit” VA pays for children under the age of 18 to certain surviving spouses that are entitled to Dependency and Indemnity Compensation (DIC).
  • If VA apportioned benefits to the dependent of a Veteran or surviving spouse during the time period SSA specified in Part I of SSA Form L1103, exclude the amount of the apportionment (instead of the amount of additional benefits VA paid for the dependent) when calculating the Veteran’s or surviving spouse’s VA income for SSA purposes.
Important: If the amount of an apportionment to a dependent is less than the amount of additional benefits VA paid the Veteran or surviving spouse for the dependent, the difference between the two amounts must be included in the calculation of the Veteran’s or surviving spouse’s VA income for SSA purposes. References: For more information on the two-year transitional benefit VA pays to certain surviving spouses that are entitled to DIC, see

XIII.ii.1.B.3.b. Completing Part II, Section D, of SSA Form L1103

 Follow the steps in the table below if
  • a Veteran or surviving spouse is entitled to additional benefits for a dependent, and
  • SSA identifies the dependent as an SSI claimant.
Note: The instructions in this block are based on an assumption that VA did not offset, withhold, or deduct benefits for any of the reasons described in M21-1, Part XIII, Subpart ii, 1.B.2 during the time period SSA specified in Part I of SSA Form L1103.
StepAction
1 Did VA apportion benefits to the dependent during the time period SSA specified in Part I of SSA Form L1103?
  • If yes, go to Step 3.
  • If no, go to the next step.
2
  • Enter in Part II, Section D, of SSA Form L1103
    • the dependent’s name, and
    • the amount of additional benefits to which the Veteran or surviving spouse was entitled for the dependent.
  • Go no further.
Important: To determine the amount of additional benefits to which a Veteran or surviving spouse is entitled for dependent(s), when the benefit is
3 Was the dependent one of multiple dependents to whom VA apportioned benefits in a combined award?
  • If yes, go to Step 5.
  • If no, go to the next step.
4
  • Enter in Part II, Section D, of SSA Form L1103
    • the dependent’s name, and
    • the amount of the apportionment.
  • Go no further.
5 Was a spouse included in the apportionment?
  • If yes, go to the next step.
  • If no, go to Step 11.
6 Were multiple children included in the apportionment?
  • If yes, go to Step 9.
  • If no, go to the next step.
7 Review the apportionment decision to determine the amount of benefits VA apportioned to each dependent.
8 Follow the instructions in the table below.
If the apportionment decision…Then …
specifies the amount of benefits VA apportioned to each dependent
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of benefits VA apportioned to that dependent, and
  • go no further.
does not specify the amount of benefits VA apportioned to each dependent
  • divide the amount of the apportionment evenly between the two dependents
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that dependent, and
  • go no further.
Note: If the apportionment does not divide evenly, add the extra pennies to the amount of the apportionment that is attributed to the spouse.
9 Review the apportionment decision to determine the amount of benefits VA apportioned to each dependent.
10 Follow the instructions in the table below.
If the apportionment decision…Then …
specifies the amount of benefits VA apportioned to each dependent
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of benefits VA apportioned to that dependent, and
  • go no further.
specifies the amount of benefits VA apportioned to the spouse but does not specify the amount it apportioned to each child
  • divide the amount of benefits VA apportioned to or for the children by the number of children that received the apportionment
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that dependent, and
  • go no further.
Note: If the amount of the apportionment does not divide evenly among the children, add the extra pennies to the amount of the apportionment that is attributed to the youngest child.
does not specify the amount of benefits VA apportioned to either the spouse or the children
  • divide the amount of the apportionment evenly among all of the dependents
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the dependent SSA identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that dependent, and
  • go no further.
Note: If the apportionment does not divide evenly, add the extra pennies to the amount of the apportionment that is attributed to the spouse.
11 Review the apportionment decision to determine the amount of benefits VA apportioned to each dependent.
12 Follow the instructions in the table below.
If the apportionment decision…Then …
specifies the amount of benefits VA apportioned to each child
  • enter in Part II, Section D, of SSA Form L1103
    • the name of the child SSA identified as an SSI claimant, and
    • the amount of benefits VA apportioned to that child, and
  • go no further.
does not specify the amount of benefits VA apportioned to each child
  • divide the amount of the apportionment evenly among the children
  • enter in Part II, Section D, of SSA Form L1103,
    • the name of the child SSA identified as an SSI claimant, and
    • the amount of the apportionment that is attributed to that child, and
  • go no further.
Note: If the apportionment does not divide evenly, add the extra pennies to the amount of the apportionment that is attributed to the youngest child.
Important:
  • When completing Part II, Section D, of SSA Form L1103, insert apportionee before the name of any dependent that was receiving an apportionment during the time period SSA specified.
  • Completion of Part II, Section E, of SSA Form L1103 is necessary if the award of an apportionment during the time period SSA specified in Part I of SSA Form L1103 resulted in a retroactive apportionment of benefits to the dependent SSA identified as an SSI claimant.
  • Completion of Part II, Section G, of SSA Form L1103 is necessary if VA deducted or withheld benefits from an SSI claimant’s award, during the time period SSA specified, to recoup a compensation or pension receivable, as described in M21-1, Part XIII, Subpart ii, 1.B.2.c.

4. Excluding Additional Benefits VA Pays in the Form of SMC or Because an Individual Is Housebound or Requires A&A

Change Date

June 14, 2015

XIII.ii.1.B.4.a. Excluding Additional Benefits VA Pays in the Form of SMC or Because an Individual Is Housebound or Requires A&A

 When calculating the VA income of a Veteran, surviving spouse, parent, or dependent, exclude any additional benefits VA paid
  • in the form of SMC, or
  • because an individual is housebound or requires the aid and attendance (A&A) of another person.
Examples: The table below describes examples of the application of the principles described in this block. When results are provided in these examples, they are based on an assumption that VA did not offset, withhold, or deduct benefits for any of the reasons described in M21-1, Part XIII, Subpart ii, 1.B.2 during the time period SSA specified in Part I of SSA Form L1103.
ScenarioAction
  • VA has rated a Veteran 50-percent disabled due to service-connected (SC) disabilities.
  • The Veteran has no dependents and is entitled to SMC under 38 U.S.C. 1114(k) for loss of use of a hand.
  • VA pays the Veteran a monthly benefit of $910.00, based on compensation rates in effect on December 1, 2012.
Exclude the additional $100.00 the Veteran receives for loss of use of a hand when calculating VA income for SSA purposes.
  • VA has rated a Veteran 30- percent disabled due to SC disabilities.
  • The Veteran’s only dependent is his spouse.
  • VA has determined the Veteran’s spouse is so disabled that she requires A&A.
  • VA pays the Veteran a monthly benefit of $485.00, based on compensation rates in effect on December 1, 2012.
When calculating the Veteran’s VA income for SSA purposes, exclude
  • the additional $47.00 VA pays for the spouse, and
  • the additional $43.00 VA pays because the spouse requires A&A.
When calculating the spouse’s VA income for SSA purposes, exclude the $43.00 VA pays because the spouse requires A&A. The spouse’s VA income in this scenario would be $47.00
Same scenario as the one described in the row above, except VA is apportioning $75.00 of the Veteran’s award to his spouse. Reference: For more information on the calculation of VA income for SSA purposes when VA is apportioning benefits, see M21-1, Part XIII, Subpart ii, 1.B.3. When calculating the Veteran’s VA income for SSA purposes, exclude
  • the additional $43.00 VA pays because the spouse requires A&A, and
  • the $75.00 VA apportions to the spouse.
Note: The spouse’s VA income in this scenario would be $75.00.
  • VA pays Section 306 Pension to a Veteran for himself and his spouse in the amount of $110.22 per month. ($110.22 represents the amount of benefits VA was paying the Veteran on December 31, 1978, when VA stopped awarding entitlement to Section 306 Pension. It also reflects the Veteran’s need for A&A on that date.)
  • But for the increased income limit for a Veteran in need of A&A, the Veteran would not have been entitled to Section 306 Pension on December 31, 1978.
Do not consider any portion of the $110.22 as VA income for SSA purposes for either the Veteran or his spouse. Reference: For more information on calculating VA income for SSA purposes when VA is paying Section 306 Pension, see M21-1, Part XIII, Subpart ii, 1.E.
Reference: For more information on the effect that a finding of entitlement to additional benefits for being housebound or in need of A&A has on the calculation of VA income for SSA purposes, see

5. Excluding UMEs When Calculating VA Income for SSA Purposes

Introduction

 This topic contains information about the exclusion of additional benefits that VA pays for UMEs when calculating VA income for SSA purposes, including
  • calculating VA income for SSA purposes when VA pays additional benefits for UMEs, and
  • completing Part II, Section F, of SSA Form L1103.

Change Date

June 14, 2015

XIII.ii.1.B.5.a. Calculating VA Income for SSA Purposes When VA Pays Additional Benefits for UMEs

 The additional pension or Parent’s DIC that VA pays to a beneficiary because he/she incurred unreimbursed medical expenses (UMEs) is not countable as VA income for SSA purposes. Example:
Scenario:
  • VA pays current-law pension to a Veteran with no dependents in the amount of $200.00 per month.
  • The provisions of M21-1, Part III, Subpart ii, 1.B.2 do not affect the calculation of VA income for SSA purposes in this scenario.
  • But for UMEs the Veteran reported to VA, her monthly benefit would be limited to $150.00
Result: The Veteran’s VA income for SSA purposes is $150.00 per month. Note: The submission of UMEs by beneficiaries in receipt of Section 306 or Old-Law Pension does not increase the amount of benefits VA currently pays these beneficiaries. However, for the purpose of reducing income for VA purposes (IVAP) for a specified period of time, VA does consider UMEs that a beneficiary in receipt of Section 306 Pension submits. (UMEs are not a factor in calculating IVAP when the benefit is Old-Law Pension.) Reference: For more information on UMEs with,

XIII.ii.1.B.5.b. Completing Part II, Section F, of SSA Form L1103

 Enter in Part II, Section F, of SSA Form L1103 the amount of additional monthly benefits VA paid a beneficiary because of UMEs only if SSA entered a date in the opening sentence of Section F. Example: In the scenario described in M21-1, Part XIII, Subpart ii, 1.B.5.a, the amount of additional monthly benefits VA paid because of UMEs is $50.00. Important: If a beneficiary has one or more dependents, do not attempt to
  • divide up the UMEs equally between the beneficiary and his/her dependent(s), or
  • attribute specific UMEs to the beneficiary and/or a specific dependent or dependents.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part XIII, Subpart ii, Chapter 1, Section B (U.S. government work, reproduced for reference). Browse all sections →