**§3.501 Veterans.**

The effective date of discontinuance of pension or compensation to or
for a veteran will be the earliest of the dates stated in this section.
Where an award is reduced, the reduced rate will be payable the day
following the date of discontinuance of the greater benefit.

\(a\) *Active service pay (38 U.S.C. 5112(b)(3); Pub. L. 87-825;
§3.700(a))*. Day preceding entrance on active duty. See §3.654.

\(b\) *Aid and attendance*:

\(1\) *Section 3.552(b)(1)*. Last day of calendar month following month
in which veteran is hospitalized at Department of Veterans Affairs
expense.

\(2\) *Section 3.552(b)(2)*. Last day of calendar month following month
in which veteran hospitalized at United States Government expense.

\(3\) *Aid and attendance for spouse*. End of month in which award
action is taken if need for aid and attendance has ceased.

\(c\) *Disappearance of veteran*. See §3.656.

\(d\) *Divorce or annulment (38 U.S.C. 5112(b)(2))*:

\(1\) Divorce or annulment prior to October 1, 1982: last day of the
calendar year in which divorce or annulment occurred.

\(2\) Divorce or annulment on or after October 1, 1982: last day of the
month in which divorce or annulment occurred, except that section 306
and old-law pension reductions or terminations will continue to be
effective the last day of the calendar year in which divorce or
annulment occurred.

\(e\) *Employability regained (38 U.S.C. 5112(b) (5), (6); Pub. L.
87-825; §3.105)*:

\(1\) *Pension*. Last day of month in which discontinuance is approved.

\(2\) *Compensation*. Last day of month following 60 days after notice
to payee.

\(f\) *Employment questionnaire, failure to return*. Reduce award to the
amount payable for the schedular evaluation shown in the current rating
as of the day following the date of last payment.

\(g\) *Evaluation reduced (38 U.S.C. 5112(b) (5), (6); Pub. L. 87-825;
§3.105)*:

\(1\) *Pension*. Last day of month in which reduction or discontinuance
is approved.

\(2\) *Compensation*. Last day of month following 60 days after notice
to payee.

\(h\) *Examination; failure to report*. See §3.655.

\(i\) *Hospitalization*.

\(1\) *Section 3.551(b)*. Last day of the sixth calendar month following
admission if veteran without dependents.

\(2\) *Section 3.551(c)*.

\(i\) Last day of the second calendar month following admission to
domiciliary care if veteran without spouse or child or, though married,
is receiving pension at the rate provided for a veteran without
dependents.

\(ii\) Last day of the third calendar month following admission for
hospital or nursing home care if veteran without spouse or child or,
though married, is receiving pension at the rate provided for a veteran
without dependents.

\(iii\) Upon readmission to hospital, domiciliary, or nursing home care
within 6 months of a period for which pension was reduced under
§3.551(c)(1), the last day of the month of such readmission.

\(3\) *Section 3.552(b)*. Upon readmission to hospital care within 6
months of a period of hospital care for which pension was affected by
the provisions of §3.552(b)(1) and (2) or §3.552(k) and discharge or
release was against medical advice or was the result of disciplinary
action, the day preceding the date of such readmission.

\(4\) *Section 3.551(d)*.

\(i\) Last day of the second calendar month following admission to
domiciliary care if veteran without spouse or child or, though married,
is receiving pension at the rate for a veteran without dependents.

\(ii\) Last day of the third calendar month following admission for
hospitalization or nursing home care if veteran without spouse or child
or, though married, is receiving pension at the rate for a veteran
without dependents.

\(iii\) Upon readmission to hospital, domiciliary, or nursing home care
within 6 months of a period for which pension was reduced under
§3.551(d)(1) or (2), the last day of the month of such readmission.

\(5\) *Section 3.551(e)*.

\(i\) Last day of the third calendar month following admission to
domiciliary or nursing home care if veteran without spouse or child or,
though married, is receiving pension at the rate for a veteran without
dependents.

\(ii\) Upon readmission to domiciliary or nursing home care within 6
months of a period of domiciliary or nursing home care for which pension
was reduced under §3.551(e)(1), the last day of the month of such
readmission.

\(6\) *Section 3.551(h)*.

\(i\) Last day of the calendar month in which Medicaid payments begin,
last day of the month following 60 days after issuance of a prereduction
notice required under §3.103(b)(2), or the earliest date on which
payment may be reduced without creating an overpayment, whichever date
is later; or

\(ii\) If the veteran willfully conceals information necessary to make
the reduction, the last day of the month in which that willful
concealment occurred. (Authority: 38 U.S.C. 5503)

\(j\) *Institutional award and/or to Personal Funds of Patients
(§3.852)*. Date of last payment when veteran is discharged from
hospital, fiduciary appointed, or veteran rated competent.

\(k\) *Lump-sum readjustment pay*. See §3.700(a)(2).

\(l\) *Retirement pay (38 U.S.C. 5112(b)(3); Pub. L. 87-825; §3.750)*.
Day before effective date of retirement pay.

\(m\) *Temporary increase (38 U.S.C. 5112(b)(8); §4.29 of this
chapter)*. Last day of month in which hospitalization or treatment
terminated, whichever is earlier, where temporary increase in
compensation was authorized because of hospitalization for treatment.

\(n\) *Section 3.853*. *Incompetents; estate over \$25,000*. Incompetent
veteran receiving compensation, without spouse, child, or dependent
parent, whose estate exceeds \$25,000: Last day of the first month in
which the veteran's estate exceeds \$25,000, but not earlier than
November 1, 1990. (Authority: 38 U.S.C. 5505)

\[26 FR 1596, Feb. 24, 1961, as amended at 27 FR 11889, Dec. 1, 1962; 29
FR 12368, Aug. 28, 1964; 29 FR 16329, Dec. 5, 1964; 35 FR 2828, Feb. 11,
1970; 37 FR 6679, Apr. 1, 1972; 38 FR 34115, Dec. 11, 1973; 41 FR 55874,
Dec. 23, 1976; 44 FR 45941, Aug. 6, 1979; 48 FR 34473, July 29, 1983; 53
FR 23236, June 21, 1988; 56 FR 25045, June 3, 1991; 56 FR 65848, Dec.
19, 1991; 56 FR 65852, Dec. 19, 1991; 66 FR 48560, Sept. 21, 2001; 68 FR
34542, June 10, 2003\]

**Supplement *Highlights* references**: 47(2), 57(1).