II 

113TH CONGRESS 

1ST SESSION S. 748 

To amend title 38, United States Code, to require the Secretary of Veterans 

Affairs to consider the resources of individuals applying for pension 

that were recently disposed of by the individuals for less than fair 

market value when determining the eligibility of such individuals for 

such pension, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 17, 2013 

Mr. WYDEN (for himself, Mr. BURR, Mr. TESTER, Mr. HELLER, Mr. 

BLUMENTHAL, and Mrs. MCCASKILL) introduced the following bill; which 

was read twice and referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to require the Secretary of Veterans Affairs to consider the resources of 

individuals applying for pension that were recently disposed of by the individuals for less than fair market 

value when determining the eligibility of such individuals 

for such pension, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Pension Pro5 tection Act’’. 


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1 SEC. 2. CONSIDERATION BY SECRETARY OF VETERANS AF2 FAIRS OF RESOURCES DISPOSED OF FOR 

3 LESS THAN FAIR MARKET VALUE BY INDIVID4 UALS APPLYING FOR PENSION. 

5 (a) VETERANS.—Section 1522 of title 38, United 

6 States Code, is amended— 

7 (1) in subsection (a)— 

8 (A) by inserting ‘‘(1)’’ before ‘‘The Sec9 retary’’; and 

10 (B) by adding at the end the following new 

11 paragraph: 

12 ‘‘(2)(A) If a veteran otherwise eligible for payment 

13 of pension under section 1513 or 1521 of this title or the 

14 spouse of such veteran disposes of covered resources for 

15 less than fair market value on or after the look-back date 

16 described in subparagraph (C)(i), the Secretary shall deny 

17 or discontinue the payment of pension to such veteran 

18 under section 1513 or 1521 of this title, as the case may 

19 be, for months during the period beginning on the date 

20 described in subparagraph (D) and equal to the number 

21 of months calculated as provided in subparagraph (E). 

22 ‘‘(B)(i) For purposes of this paragraph, a covered re23 source is any resource that was a part of the corpus of 

24 the estate of the veteran or, if the veteran has a spouse, 

25 the corpus of the estates of the veteran and of the vet26 eran’s spouse, that the Secretary considers that under all 


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1 the circumstances, if the veteran or spouse had not dis2 posed of such resource, it would be reasonable that the 

3 resource (or some portion of the resource) be consumed 

4 for the veteran’s maintenance. 

5 ‘‘(ii) For purposes of this paragraph, the Secretary 

6 may consider, in accordance with regulations the Sec7 retary shall prescribe, a transfer of an asset (including a 

8 transfer of an asset to an annuity, trust, or other financial 

9 instrument or investment) a disposal of a covered resource 

10 for less than fair market value if such transfer reduces 

11 the amount in the corpus of the estate of the veteran or, 

12 if the veteran has a spouse, the corpus of the estates of 

13 the veteran and of the veteran’s spouse, that the Secretary 

14 considers, under all the circumstances, would be reason15 able to be consumed for the veteran’s maintenance. 

16 ‘‘(C)(i) The look-back date described in this clause 

17 is a date that is 36 months before the date described in 

18 clause (ii). 

19 ‘‘(ii) The date described in this clause is the date on 

20 which the veteran applies for pension under section 1513 

21 or 1521 of this title or, if later, the date on which the 

22 veteran (or the spouse of the veteran) disposes of covered 

23 resources for less than fair market value. 

24 ‘‘(D) The date described in this subparagraph is the 

25 first day of the first month in or after which covered reVerDate Mar 15 2010 00:07 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S748.IS S748

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1 sources were disposed of for less than fair market value 

2 and which does not occur in any other period of ineligi3 bility under this paragraph. 

4 ‘‘(E) The number of months calculated under this 

5 subparagraph shall be equal to— 

6 ‘‘(i) the total, cumulative uncompensated value 

7 of all covered resources so disposed of by the veteran 

8 (or the spouse of the veteran) on or after the look9 back date described in subparagraph (C)(i); divided 

10 by 

11 ‘‘(ii) the maximum amount of monthly pension 

12 that is payable to a veteran under section 1513 or 

13 1521 of this title, including the maximum amount of 

14 increased pension payable under such sections on ac15 count of family members, but not including any 

16 amount of pension payable under such sections be17 cause a veteran is in need of regular aid and attend18 ance or is permanently housebound, 

19 rounded, in the case of any fraction, to the nearest whole 

20 number, but shall not in any case exceed 36 months.’’; 

21 (2) in subsection (b)— 

22 (A) by inserting ‘‘(1)’’ before ‘‘The Sec23 retary’’; and 

24 (B) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(2)(A) If a veteran otherwise eligible for payment 

2 of increased pension under subsection (c), (d), (e), or (f) 

3 of section 1521 of this title on account of a child, the 

4 spouse of the veteran, or the child disposes of covered re5 sources for less than fair market value on or after the 

6 look-back date described in subparagraph (C)(i), the Sec7 retary shall deny or discontinue payment of such increased 

8 pension for months during the period beginning on the 

9 date described in subparagraph (D) and equal to the num10 ber of months calculated as provided in subparagraph (E). 

11 ‘‘(B)(i) For purposes of this paragraph, a covered re12 source is any resource that was a part of the corpus of 

13 the estate of the child that the Secretary considers that 

14 under all the circumstances, if the veteran, the spouse of 

15 the veteran, or the child had not disposed of such resource, 

16 it would be reasonable that the resource (or some portion 

17 of the resource) be consumed for the child’s maintenance. 

18 ‘‘(ii) For purposes of this paragraph, the Secretary 

19 may consider, in accordance with regulations the Sec20 retary shall prescribe, a transfer of an asset (including a 

21 transfer of an asset to an annuity, trust, or other financial 

22 instrument or investment) a disposal of a covered resource 

23 for less than fair market value if such transfer reduces 

24 the amount in the corpus of the estate of the child that 

25 the Secretary considers, under all the circumstances, 


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1 would be reasonable to be consumed for the child’s mainte2 nance. 

3 ‘‘(C)(i) The look-back date described in this clause 

4 is a date that is 36 months before the date described in 

5 clause (ii). 

6 ‘‘(ii) The date described in this clause is the date on 

7 which the veteran applies for payment of increased pen8 sion under subsection (c), (d), (e), or (f) of section 1521 

9 of this title on account of a child or, if later, the date 

10 on which the veteran, the spouse of the veteran, or the 

11 child disposes of covered resources for less than fair mar12 ket value. 

13 ‘‘(D) The date described in this subparagraph is the 

14 first day of the first month in or after which covered re15 sources were disposed of for less than fair market value 

16 and which does not occur in any other period of ineligi17 bility under this paragraph. 

18 ‘‘(E) The number of months calculated under this 

19 subparagraph shall be equal to— 

20 ‘‘(i) the total, cumulative uncompensated value 

21 of all covered resources so disposed of by the vet22 eran, the spouse of the veteran, or the child on or 

23 after the look-back date described in subparagraph 

24 (C)(i); divided by 


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1 ‘‘(ii) the maximum amount of increased month2 ly pension that is payable to a veteran under sub3 section (c), (d), (e), or (f) of section 1521 of this 

4 title on account of a child, 

5 rounded, in the case of any fraction, to the nearest whole 

6 number, but shall not in any case exceed 36 months.’’; 

7 and 

8 (3) by adding at the end the following new sub9 section: 

10 ‘‘(c)(1) The Secretary shall not deny or discontinue 

11 payment of pension under section 1513 or 1521 of this 

12 title or payment of increased pension under subsection (c), 

13 (d), (e), or (f) of section 1521 of this title on account of 

14 a child by reason of the application of subsection (a)(2) 

15 or (b)(2) of this section to the disposal of resources by 

16 an individual to the extent that— 

17 ‘‘(A) a satisfactory showing is made to the Sec18 retary (in accordance with regulations promulgated 

19 by the Secretary) that all resources disposed of for 

20 less than fair market value have been returned to 

21 the individual who disposed of the resources; or 

22 ‘‘(B) the Secretary determines, under proce23 dures established by the Secretary, that the denial 

24 or discontinuance of payment would work an undue 


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1 hardship as determined on the basis of criteria es2 tablished by the Secretary. 

3 ‘‘(2) At the time a veteran applies for pension under 

4 section 1513 or 1521 of this title or increased pension 

5 under subsection (c), (d), (e), or (f) of section 1521 of 

6 this title on account of a child, and at such other times 

7 as the Secretary considers appropriate, the Secretary 

8 shall— 

9 ‘‘(A) inform such veteran of the provisions of 

10 subsections (a)(2) and (b)(2) providing for a period 

11 of ineligibility for payment of pension under such 

12 sections for individuals who make certain disposi13 tions of resources for less than fair market value; 

14 and 

15 ‘‘(B) obtain from such veteran information 

16 which may be used in determining whether or not a 

17 period of ineligibility for such payments would be re18 quired by reason of such subsections.’’. 

19 (b) SURVIVING SPOUSES AND CHILDREN.—Section 

20 1543 of such title is amended— 

21 (1) in subsection (a)— 

22 (A) by redesignating paragraph (2) as 

23 paragraph (3); 

24 (B) by inserting after paragraph (1) the 

25 following new paragraph (2): 


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1 ‘‘(2)(A) If a surviving spouse otherwise eligible for 

2 payment of pension under section 1541 of this title dis3 poses of covered resources for less than fair market value 

4 on or after the look-back date described in subparagraph 

5 (C)(i), the Secretary shall deny or discontinue the pay6 ment of pension to such surviving spouse under section 

7 1541 of this title for months during the period beginning 

8 on the date described in subparagraph (D) and equal to 

9 the number of months calculated as provided in subpara10 graph (E). 

11 ‘‘(B)(i) For purposes of this paragraph, a covered re12 source is any resource that was a part of the corpus of 

13 the estate of the surviving spouse that the Secretary con14 siders that under all the circumstances, if the surviving 

15 spouse had not disposed of such resource, it would be rea16 sonable that the resource (or some portion of the resource) 

17 be consumed for the surviving spouse’s maintenance. 

18 ‘‘(ii) For purposes of this paragraph, the Secretary 

19 may consider, in accordance with regulations the Sec20 retary shall prescribe, a transfer of an asset (including a 

21 transfer of an asset to an annuity, trust, or other financial 

22 instrument or investment) a disposal of a covered resource 

23 for less than fair market value if such transfer reduces 

24 the amount in the corpus of the estate of the surviving 

25 spouse that the Secretary considers, under all the cirVerDate Mar 15 2010 00:07 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S748.IS S748

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1 cumstances, would be reasonable to be consumed for the 

2 surviving spouse’s maintenance. 

3 ‘‘(C)(i) The look-back date described in this clause 

4 is a date that is 36 months before the date described in 

5 clause (ii). 

6 ‘‘(ii) The date described in this clause is the date on 

7 which the surviving spouse applies for pension under sec8 tion 1541 of this title or, if later, the date on which the 

9 surviving spouse disposes of covered resources for less 

10 than fair market value. 

11 ‘‘(D) The date described in this subparagraph is the 

12 first day of the first month in or after which covered re13 sources were disposed of for less than fair market value 

14 and which does not occur in any other period of ineligi15 bility under this paragraph. 

16 ‘‘(E) The number of months calculated under this 

17 subparagraph shall be equal to— 

18 ‘‘(i) the total, cumulative uncompensated value 

19 of all covered resources so disposed of by the sur20 viving spouse on or after the look-back date de21 scribed in subparagraph (C)(i); divided by 

22 ‘‘(ii) the maximum amount of monthly pension 

23 that is payable to a surviving spouse under section 

24 1541 of this title, including the maximum amount of 

25 increased pension payable under such section on acVerDate Mar 15 2010 00:07 Apr 23, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S748.IS S748

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1 count of a child, but not including any amount of 

2 pension payable under such section because a sur3 viving spouse is in need of regular aid and attend4 ance or is permanently housebound, 

5 rounded, in the case of any fraction, to the nearest whole 

6 number, but shall not in any case exceed 36 months. 

7 ‘‘(F) In the case of a transfer by the surviving spouse 

8 during the veteran’s lifetime that resulted in a period of 

9 ineligibility for the veteran under section 1522 of this title, 

10 the Secretary shall apply to the surviving spouse any re11 maining ineligibility for that period.’’; and 

12 (C) by adding at the end the following new 

13 paragraph: 

14 ‘‘(4)(A) If a surviving spouse otherwise eligible for 

15 payment of increased pension under subsection (c), (d), 

16 or (e) of section 1541 of this title on account of a child 

17 or the child disposes of covered resources for less than fair 

18 market value on or after the look-back date described in 

19 subparagraph (C)(i), the Secretary shall deny or dis20 continue payment of such increased pension for months 

21 during the period beginning on the date described in sub22 paragraph (D) and equal to the number of months cal23 culated as provided in subparagraph (E). 

24 ‘‘(B)(i) For purposes of this paragraph, a covered re25 source is any resource that was a part of the corpus of 


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1 the estate of the child that the Secretary considers that 

2 under all the circumstances, if the surviving spouse or the 

3 child had not disposed of such resource, it would be rea4 sonable that the resource (or some portion of the resource) 

5 be consumed for the child’s maintenance. 

6 ‘‘(ii) For purposes of this paragraph, the Secretary 

7 may consider, in accordance with regulations the Sec8 retary shall prescribe, a transfer of an asset (including a 

9 transfer of an asset to an annuity, trust, or other financial 

10 instrument or investment) a disposal of a covered resource 

11 for less than fair market value if such transfer reduces 

12 the amount in the corpus of the estate of the child that 

13 the Secretary considers, under all the circumstances, 

14 would be reasonable to be consumed for the child’s mainte15 nance. 

16 ‘‘(C)(i) The look-back date described in this clause 

17 is a date that is 36 months before the date described in 

18 clause (ii). 

19 ‘‘(ii) The date described in this clause is the date on 

20 which the surviving spouse applies for payment of in21 creased pension under subsection (c), (d), or (e) of section 

22 1541 of this title on account of a child or, if later, the 

23 date on which the surviving spouse (or the child) disposes 

24 of covered resources for less than fair market value. 


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1 ‘‘(D) The date described in this subparagraph is the 

2 first day of the first month in or after which covered re3 sources were disposed of for less than fair market value 

4 and which does not occur in any other period of ineligi5 bility under this paragraph. 

6 ‘‘(E) The number of months calculated under this 

7 clause shall be equal to— 

8 ‘‘(i) the total, cumulative uncompensated value 

9 of all covered resources so disposed of by the sur10 viving spouse (or the child) on or after the look-back 

11 date described in subparagraph (C)(i); divided by 

12 ‘‘(ii) the maximum amount of increased month13 ly pension that is payable to a surviving spouse 

14 under subsection (c), (d), or (e) of section 1541 of 

15 this title on account of a child, 

16 rounded, in the case of any fraction, to the nearest whole 

17 number, but shall not in any case exceed 36 months.’’; 

18 (2) in subsection (b)— 

19 (A) by inserting ‘‘(1)’’ before ‘‘The Sec20 retary’’; and 

21 (B) by adding at the end the following new 

22 paragraph: 

23 ‘‘(2)(A) If a child otherwise eligible for payment of 

24 pension under section 1542 of this title or any person with 

25 whom such child is residing who is legally responsible for 


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1 such child’s support disposes of covered resources for less 

2 than fair market value on or after the look-back date de3 scribed in subparagraph (C)(i), the Secretary shall deny 

4 or discontinue the payment of pension to such child under 

5 section 1542 of this title for months during the period be6 ginning on the date described in subparagraph (D) and 

7 equal to the number of months calculated as provided in 

8 subparagraph (E). 

9 ‘‘(B)(i) For purposes of this paragraph, a covered re10 source is any resource that was a part of the corpus of 

11 the estate of the child or the corpus of the estate of any 

12 person with whom such child is residing who is legally re13 sponsible for such child’s support that the Secretary con14 siders that under all the circumstances, if the child or per15 son had not disposed of such resource, it would be reason16 able that the resource (or some portion of the resource) 

17 be consumed for the child’s maintenance. 

18 ‘‘(ii) For purposes of this paragraph, the Secretary 

19 may consider, in accordance with regulations the Sec20 retary shall prescribe, a transfer of an asset (including a 

21 transfer of an asset to an annuity, trust, or other financial 

22 instrument or investment) a disposal of a covered resource 

23 for less than fair market value if such transfer reduces 

24 the amount in the corpus of the estate described in clause 

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1 cumstances, would be reasonable to be consumed for the 

2 child’s maintenance. 

3 ‘‘(C)(i) The look-back date described in this clause 

4 is a date that is 36 months before the date described in 

5 clause (ii). 

6 ‘‘(ii) The date described in this clause is the date on 

7 which the child applies for pension under section 1542 of 

8 this title or, if later, the date on which the child (or person 

9 described in subparagraph (B)) disposes of covered re10 sources for less than fair market value. 

11 ‘‘(D) The date described in this clause is the first 

12 day of the first month in or after which covered resources 

13 were disposed of for less than fair market value and which 

14 does not occur in any other period of ineligibility under 

15 this paragraph. 

16 ‘‘(E) The number of months calculated under this 

17 clause shall be equal to— 

18 ‘‘(i) the total, cumulative uncompensated value 

19 of all covered resources so disposed of by the child 

20 (or person described in subparagraph (B)) on or 

21 after the look-back date described in subparagraph 

22 (C)(i); divided by 

23 ‘‘(ii) the maximum amount of monthly pension 

24 that is payable to a child under section 1542 of this 

25 title, 


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1 rounded, in the case of any fraction, to the nearest whole 

2 number, but shall not in any case exceed 36 months.’’; 

3 and 

4 (3) by adding at the end the following new sub5 section: 

6 ‘‘(c)(1) The Secretary shall not deny or discontinue 

7 payment of pension under section 1541 or 1542 of this 

8 title or payment of increased pension under subsection (c), 

9 (d), or (e) of section 1541 of this title on account of a 

10 child by reason of the application of subsection (a)(2), 

11 (a)(4), or (b)(2) of this section to the disposal of resources 

12 by an individual to the extent that— 

13 ‘‘(A) a satisfactory showing is made to the Sec14 retary (in accordance with regulations promulgated 

15 by the Secretary) that all resources disposed of for 

16 less than fair market value have been returned to 

17 the individual who disposed of the resources; or 

18 ‘‘(B) the Secretary determines, under proce19 dures established by the Secretary, that the denial 

20 or discontinuance of payment would work an undue 

21 hardship as determined on the basis of criteria es22 tablished by the Secretary. 

23 ‘‘(2) At the time a surviving spouse or child applies 

24 for pension under section 1541 or 1542 of this title or 

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1 tion 1541 of this title on account of a child, and at such 

2 other times as the Secretary considers appropriate, the 

3 Secretary shall— 

4 ‘‘(A) inform such surviving spouse or child of 

5 the provisions of subsections (a)(2), (a)(4), and 

6 (b)(2), as applicable, providing for a period of ineli7 gibility for payment of pension or increased pension 

8 under such sections for individuals who make certain 

9 dispositions of resources for less than fair market 

10 value; and 

11 ‘‘(B) obtain from such surviving spouse or child 

12 information which may be used in determining 

13 whether or not a period of ineligibility for such pay14 ments would be required by reason of such sub15 sections.’’. 

16 (c) EFFECTIVE DATE.—Subsections (a)(2), (b)(2), 

17 and (c) of section 1522 of title 38, United States Code, 

18 as added by subsection (a), and subsections (a)(2), (a)(4), 

19 (b)(2), and (c) of section 1543 of such title, as added by 

20 subsection (b), shall take effect on the date that is one 

21 year after the date of the enactment of this Act and shall 

22 apply with respect to payments of pension and increased 

23 pension applied for after such date and to payments of 

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1 sion shall be made under such subsections because of any 

2 disposal of covered resources made before such date. 

3 (d) ANNUAL REPORTS.— 

4 (1) IN GENERAL.—Not later than two years 

5 after the date of the enactment of this Act and not 

6 less frequently than once each year thereafter 

7 through 2018, the Secretary of Veterans Affairs 

8 shall submit to the appropriate committees of Con9 gress a report on the administration of subsections 

10 (a)(2), (b)(2), and (c) of section 1522 of title 38, 

11 United States Code, as added by subsection (a), and 

12 subsections (a)(2), (a)(4), (b)(2), and (c) of section 

13 1543 of such title, as added by subsection (b), dur14 ing the most recent 12-month period. 

15 (2) ELEMENTS.—Each report submitted under 

16 paragraph (1) shall include the following, for the pe17 riod covered by the report: 

18 (A) The number of individuals who applied 

19 for pension under chapter 15 of such title. 

20 (B) The number of individuals who re21 ceived pension under such chapter. 

22 (C) The number of individuals with respect 

23 to whom the Secretary denied or discontinued 

24 payment of pension under the subsections re25 ferred to in paragraph (1). 


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1 (D) A description of any trends identified 

2 by the Secretary regarding pension payments 

3 that have occurred as a result of the amend4 ments made by this section. 

5 (E) Such other information as the Sec6 retary considers appropriate. 

7 (3) APPROPRIATE COMMITTEES OF CONGRESS

8 DEFINED.—In this subsection, the term ‘‘appro9 priate committees of Congress’’ means— 

10 (A) the Committee on Veterans’ Affairs 

11 and the Select Committee on Aging of the Sen12 ate; and 

13 (B) the Committee on Veterans’ Affairs of 

14 the House of Representatives. 

Æ 


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