§**3.252 Annual income; pension; Mexican border period and later war
periods.**

\(a\) *Annual income limitations; old law pension*. Where the right to
old law pension is payable under section 306(b) of Pub. L. 95-588 (92
Stat. 2497 ), pension is not payable if the pensioner's annual income
exceeds the income limitations prescribed by §3.26(c).

\(b\) *Annual income and net worth limitations; Pub. L. 86-211*. Pension
is not payable to a veteran, surviving spouse or child whose annual
income exceeds the limitations set forth in 38 U.S.C. 1521, 1541 or
1542; or to a veteran surviving spouse or child if it is reasonable that
some part of the claimant's estate be consumed for his or her
maintenance. Where a veteran and spouse are living together, the
separate income of the spouse will be considered as the veteran's income
as provided in §3.262(b). (Authority: 38 U.S.C. 1543)

\(c\) *Basic rule*. Payments of any kind or from any source will be
counted as income unless specifically excluded. Income will be counted
for the calendar year in which it is received and total income for the
full calendar year will be considered except as provided in §3.260.

\(d\) *Veteran with a spouse*. For the purpose of determining
eligibility under paragraph (b) of this section the pension rates
provided by 38 U.S.C. 1521(c) may be authorized for a married veteran if
he or she is living with or, if estranged, is reasonably contributing to
the support of his or her spouse. The determination of "reasonable"
contribution will be based on all the circumstances in the case,
considering the income and estate of the veteran and the separate income
and estate of the spouse. Apportionment of the veteran's pension under
§3.451 meets the requirement of reasonable contribution.

\(e\) *Surviving spouse with a child*:

\(1\) *Child*. The term "child" means a child as defined in §3.57. Where
a veteran's child is born after the veteran dies, the surviving spouse
will not be considered a surviving spouse with a child prior to the
child's date of birth.

\(2\) *Veteran's child not in surviving spouse's custody*. Where the
veteran was survived by a surviving spouse and by a child, the income
increments for a surviving spouse and child apply even though the child
is not the child of the surviving spouse and not in his or her custody.

\(3\) *Income of child*. The separate income received by a child or
children, regardless of custody, will not be considered in computing the
surviving spouse's income. Where the separate income of the child is
turned over to the surviving spouse, only so much of the money as is
left after deducting any expenses for maintenance of the child will be
considered the surviving spouse's income.

\(4\) *Alternative rate*. Whenever the monthly pension rate payable to
the surviving spouse under the formula in 38 U.S.C. 1541(c) is less than
the rate payable for one child under section 1542 if the surviving
spouse were not entitled, the surviving spouse will be paid the child's
rate.

\(f\) *Income over maximum; reduced aid and attendance allowance*.
Beginning January 1, 1977, veterans in need of regular aid and
attendance who are not receiving pension because their income exceeds
the applicable statutory limitation may be eligible for a reduced aid
and attendance allowance. The amount payable is the regular aid and
attendance allowance authorized by 38 U.S.C. 1521(d)(1) reduced by 16.6
percent for each \$100, or portion thereof, by which the veteran's
annual income exceeds the applicable maximum income limitation. The
reduced aid and attendance allowance is payable when:

\(1\) A veteran in need of regular aid and attendance is denied pension
under 38 U.S.C. 1521 solely because the veteran's annual income exceeds
the applicable maximum income limitation in 38 U.S.C. 1521(b)(3) and
(c)(3); or

\(2\) Pension payable under 38 U.S.C. 1521 to a veteran in need of
regular aid and attendance is discontinued solely because the veteran's
annual income exceeds the applicable maximum income limitation in 38
U.S.C. 1521(b)(3) or (c)(3); and

\(3\) The veteran's annual income exceeds the applicable maximum income
limitation in 38 U.S.C. 1521(b)(3) or (c)(3) by an amount not greater
than the amount specified in 38 U.S.C. 1521(d)(2).

\[28 FR 30, Jan. 1, 1963, as amended at 40 FR 16065, Apr. 9, 1975; 41 FR
15411, Apr. 13, 1976; 41 FR 56803, Dec. 30, 1976; 44 FR 45935, Aug. 6,
1979; 61 FR 20727, May 8, 1996; 62 FR 5529, Feb. 6, 1997\]

**Cross references:** Basic pension determinations. See §3.314.
Determination of permanent need for regular aid and attendance and
"permanently bedridden." See §3.352.

**Supplement *Highlight* reference**: 27(2)