**§3.811 Minimum income annuity and gratuitous annuity.**

\(a\) *Eligibility for minimum income annuity*. The minimum income
annuity authorized by Public Law 92-425 as amended is payable to a
person:

\(1\) Whom the Department of Defense or the Department of Transportation
has determined meets the eligibility criteria of section 4(a) of Pub. L.
92-425 as amended other than section 4(a)(1) and (2); and

\(2\) Who is eligible for pension under subchapter III of chapter 15 of
title 38, United States Code, or section 306 of the Veterans' and
Survivors' Pension Improvement Act of 1978; and

\(3\) Whose annual income, as determined in establishing pension
eligibility, is less than the maximum annual rate of pension in effect
under 38 U.S.C. 1541(b).

\(b\) *Computation of the minimum income annuity payment*:

\(1\) *Annual income*. VA will determine a beneficiary's annual income
for minimum income annuity purposes under the provisions of §§3.271 and
3.272 of this part for beneficiaries receiving improved pension, or
under §§3.260 through 3.262 of this part for beneficiaries receiving old
law or section 306 pensions, except that the amount of the minimum
income annuity will be excluded from the calculation.

\(2\) VA will determine the minimum income annuity payment for
beneficiaries entitled to improved pension by subtracting the annual
income for minimum income annuity purposes from the maximum annual
pension rate under 38 U.S.C. 1541(b).

\(3\) VA will determine the minimum income annuity payment for
beneficiaries receiving old law and section 306 pensions by reducing the
maximum annual pension rate under 38 U.S.C. 1541(b) by the amount of the
Retired Servicemen's Family Protection Plan benefit, if any, that the
beneficiary receives and subtracting from that amount the annual income
for minimum income annuity purposes.

\(4\) VA will recompute the monthly minimum income annuity payment
whenever there is a change to the maximum annual rate of pension in
effect under 38 U.S.C. 1541(b), and whenever there is a change in the
beneficiary's income.

\(c\) An individual otherwise eligible for pension under subchapter III
of chapter 15 of title 38, United States Code, or section 306 of the
Veterans' and Survivors' Pension Improvement Act of 1978 shall be
considered eligible for pension for purposes of determining eligibility
for the minimum income annuity even though as a result of adding the
amount of the minimum income annuity authorized under Public Law 92-425
as amended to any other countable income, no amount of pension is due.

\(d\) If the Department of Defense or the Department of Transportation
determines that a minimum income annuitant also is entitled to the
gratuitous annuity authorized by Pub. L. 100-456 as amended, which is
payable to certain surviving spouses of servicemembers who died before
November 1, 1953, and were entitled to retired or retainer pay on the
date of death, VA will combine the payment of the gratuitous annuity
with the minimum income annuity payment.

\(e\) *Termination*. Other than as provided in paragraph (c) of this
section, if a beneficiary receiving the minimum income annuity becomes
ineligible for pension, VA will terminate the minimum income annuity
effective the same date. (Authority: §4, Pub. L. 92-425, 86 Stat. 706,
712, as amended (10 U.S.C. 1448 note))

\[62 FR 35971, July 3, 1997, as amended at 63 FR 412, Jan. 6, 1998; 63
FR 62943, Nov. 10, 1998\]

**Supplement *Highlights* references**: 30(3), 32(1), 35(1).

Reserved