**§3.23 Improved pension rates---Veterans and surviving spouses.**

\(a\) *Maximum annual rates of improved pension*. The maximum annual
rates of improved pension for the following categories of beneficiaries
shall be the amounts specified in 38 U.S.C. 1521 and 1542, as increased
from time to time under 38 U.S.C. 5312. Each time there is an increase
under 38 U.S.C. 5312, the actual rates will be published in the
"Notices" section of the *Federal Register*.

\(1\) Veterans who are permanently and totally disabled. (Authority: 38
U.S.C. 1521(b) or (c))

\(2\) Veterans in need of aid and attendance. (Authority: 38 U.S.C.
1521(d))

\(3\) Veterans who are housebound. (Authority: 38 U.S.C. 1521(e))

\(4\) Two veterans married to one another; combined rates. (Authority:
38 U.S.C. 1521(f))

\(5\) Surviving spouse alone or with a child or children of the deceased
veteran in custody of the surviving spouse. (Authority: 38 U.S.C.
1541(b) or (c))

\(6\) Surviving spouses in need of aid and attendance. (Authority: 38
U.S.C. 1541(d))

\(7\) Surviving spouses who are housebound. (Authority: 38 U.S.C.
1541(e))

\(b\) *Reduction for income*. The maximum rates of improved pension in
paragraph (a) of this section shall be reduced by the amount of the
countable annual income of the veteran or surviving spouse. (Authority:
38 U.S.C. 1521, 1541)

\(c\) *Mexican border period and World War I veterans*. The applicable
maximum annual rate payable to a Mexican border period or World War I
veteran under this section shall be increased by the amount specified in
38 U.S.C. 1521(g), as increased from time to time under 38 U.S.C. 5312.
Each time there is an increase under 38 U.S.C. 5312, the actual rate
will be published in the "Notices" section of the *Federal Register*.
(Authority: 38 U.S.C. 1521(g))

\(d\) *Definitions of terms used in this section*:

\(1\) *Dependent*. A veteran's spouse or child. A veteran's spouse who
resides apart from the veteran and is estranged from the veteran may not
be considered the veteran's dependent unless the spouse receives
reasonable support contributions from the veteran. (Note that under
§3.60 a veteran and spouse who reside apart are considered to be living
together unless they are estranged.) A child of a veteran not in custody
of the veteran and to whose support the veteran is not reasonably
contributing, may not be considered the veteran's dependent. (Authority:
38 U.S.C. 1521(b)).

\(2\) *In need of aid and attendance*. As defined in §3.351(b).

\(3\) *Housebound*. As defined in §3.351(d)(2), (f). This term also
includes a veteran who has a disability or disabilities evaluated as 60
percent or more disabling in addition to a permanent and totally
disabling condition. See §3.351(d)(1).

\(4\) *Veteran's annual income*. This term includes the veteran's annual
income, the annual income of the veteran's dependent spouse, and the
annual income of each child of the veteran (other than a child for whom
increased pension is not payable under 38 U.S.C. 1522(b)) in the
veteran's custody or to whose support the veteran is reasonably
contributing (to the extent such child's income is reasonably available
to or for the veteran, unless in the judgment of the Department of
Veterans Affairs to do so would work a hardship on the veteran.) There
is a rebuttable presumption that all of such a child's income is
reasonably available to or for the veteran. (Authority: 38 U.S.C. 1521
(c), (h))

\(5\) *Surviving spouse's annual income*. This term includes the
surviving spouse's annual income and the annual income of each child of
the veteran (other than a child for whom increased pension is not
payable under 38 U.S.C. 1543(a)(2)) in the custody of the surviving
spouse to the extent that such child's income is reasonably available to
or for the surviving spouse, unless in the judgment of the Department of
Veterans Affairs to do so would work a hardship on the surviving spouse.
There is a rebuttable presumption that all of such a child's income is
available to or for the surviving spouse. (Authority: 38 U.S.C. 1541(c),
(g))

\(6\) *Reasonable availability and hardship*. For the purposes of
paragraphs (d)(4) and (d)(5) of this section, a child's income shall be
considered "reasonably available" when it can be readily applied to meet
the veteran's or surviving spouse's expenses necessary for reasonable
family maintenance, and "hardship" shall be held to exist when annual
expenses necessary for reasonable family maintenance exceed the sum of
countable annual income plus VA pension entitlement. "Expenses necessary
for reasonable family maintenance" include expenses for basic
necessities (such as food, clothing, shelter, etc. ) and other expenses,
determined on a case-by-case basis, which are necessary to support a
reasonable quality of life. (Authority: 38 U.S.C. 501(a))

\[44 FR 45933, Aug. 6, 1979, as amended at 52 FR 34907, Sept. 14, 1987;
53 FR 23235, June 21, 1988; 61 FR 20727, May 8, 1996\]

**Cross references:** Improved Pension. See §3.1(w). Child. See
§3.57(d). Definition of "living with." See §3.60. Exclusions from
income. See §3.272.