II 

112TH CONGRESS 

2D SESSION S. 3270 

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 

JUNE 6, 2012 

Mr. WYDEN (for himself and Mr. BURR) 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, 

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1 SECTION 1. CONSIDERATION BY SECRETARY OF VETERANS 

2 AFFAIRS 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 remstockstill on DSK4VPTVN1PROD with BILLS

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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 amount of the monthly pension that 

12 would be payable to the veteran under section 1513 

13 or 1521 of this title without consideration of such 

14 resources under paragraph (1), 

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

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

17 ‘‘(F) In the case of a transfer by the spouse of a vet18 eran that results in a period of ineligibility for the veteran 

19 under this paragraph, the Secretary shall apportion the 

20 period (or any portion of the period) among the veteran 

21 and the veteran’s spouse if the spouse becomes eligible for 

22 pension under this chapter.’’; 

23 (2) in subsection (b)— 

24 (A) by inserting ‘‘(1)’’ before ‘‘The Sec25 retary’’; and 

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

2 paragraph: 

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

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

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

6 spouse of the veteran, or the child disposes of covered re7 sources for less than fair market value on or after the 

8 look-back date described in subparagraph (C)(i), the Sec9 retary shall deny or discontinue payment of such increased 

10 pension for months during the period beginning on the 

11 date described in subparagraph (D) and equal to the num12 ber of months calculated as provided in subparagraph (E). 

13 ‘‘(B)(i) For purposes of this paragraph, a covered re14 source is any resource that was a part of the corpus of 

15 the estate of the child that the Secretary considers that 

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

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

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

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

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

21 may consider, in accordance with regulations the Sec22 retary shall prescribe, a transfer of an asset (including a 

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

24 instrument or investment) a disposal of a covered resource 

25 for less than fair market value if such transfer reduces 

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

2 the Secretary considers, under all the circumstances, 

3 would be reasonable to be consumed for the child’s mainte4 nance. 

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

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

7 clause (ii). 

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

9 which the veteran applies for payment of increased pen10 sion under subsection (c), (d), (e), or (f) of section 1521 

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

12 on which the veteran (or the child) disposes of covered 

13 resources for less than fair market value. 

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

15 first day of the first month in or after which covered re16 sources were disposed of for less than fair market value 

17 and which does not occur in any other period of ineligi18 bility under this paragraph. 

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

20 subparagraph shall be equal to— 

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

22 of all covered resources so disposed of by the veteran 

23 (or the child) on or after the look-back date de24 scribed in subparagraph (C)(i); divided by 

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1 ‘‘(ii) the amount of the increased monthly pen2 sion that would be payable to the veteran under sub3 section (c), (d), (e), or (f) of section 1521 of this 

4 title on account of a child without consideration of 

5 such resources under paragraph (1), 

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

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

8 and 

9 (3) by adding at the end the following new sub10 section: 

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

12 payment of pension under section 1513 or 1521 of this 

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

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

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

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

17 an individual to the extent that— 

18 ‘‘(A) a satisfactory showing is made to the Sec19 retary (in accordance with regulations promulgated 

20 by the Secretary) that all resources transferred for 

21 less than fair market value have been returned to 

22 the transferor; or 

23 ‘‘(B) the Secretary determines, under proce24 dures established by the Secretary, that the denial 

25 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 cirmstockstill on DSK4VPTVN1PROD with BILLS

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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 amount of the monthly pension that 

23 would be payable to the surviving spouse under sec24 tion 1541 of this title without consideration of such 

25 resources under paragraph (1), 

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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 (C) by adding at the end the following new 

5 paragraph: 

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

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

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

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

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

11 subparagraph (C)(i), the Secretary shall deny or dis12 continue payment of such increased pension for months 

13 during the period beginning on the date described in sub14 paragraph (D) and equal to the number of months cal15 culated as provided in subparagraph (E). 

16 ‘‘(B)(i) For purposes of this paragraph, a covered re17 source is any resource that was a part of the corpus of 

18 the estate of the child that the Secretary considers that 

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

20 child had not disposed of such resource, it would be rea21 sonable that the resource (or some portion of the resource) 

22 be consumed for the child’s maintenance. 

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

24 may consider, in accordance with regulations the Sec25 retary shall prescribe, a transfer of an asset (including a 

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

2 instrument or investment) a disposal of a covered resource 

3 for less than fair market value if such transfer reduces 

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

5 the Secretary considers, under all the circumstances, 

6 would be reasonable to be consumed for the child’s mainte7 nance. 

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

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

10 clause (ii). 

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

12 which the surviving spouse applies for payment of in13 creased pension under subsection (c), (d), or (e) of section 

14 1541 of this title on account of a child or, if later, the 

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

16 of covered resources for less than fair market value. 

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

18 first day of the first month in or after which covered re19 sources were disposed of for less than fair market value 

20 and which does not occur in any other period of ineligi21 bility under this paragraph. 

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

23 clause shall be equal to— 

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

25 of all covered resources so disposed of by the surmstockstill on DSK4VPTVN1PROD with BILLS

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1 viving spouse (or the child) on or after the look-back 

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

3 ‘‘(ii) the amount of the increased monthly pen4 sion that would be payable to the surviving spouse 

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

6 this title on account of a child without consideration 

7 of such resources under paragraph (3), 

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

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

10 (2) in subsection (b)— 

11 (A) by inserting ‘‘(1)’’ before ‘‘The Sec12 retary’’; and 

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

14 paragraph: 

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

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

17 whom such child is residing who is legally responsible for 

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

19 than fair market value on or after the look-back date de20 scribed in subparagraph (C)(i), the Secretary shall deny 

21 or discontinue the payment of pension to such child under 

22 section 1542 of this title for months during the period be23 ginning on the date described in subparagraph (D) and 

24 equal to the number of months calculated as provided in 

25 subparagraph (E). 

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1 ‘‘(B)(i) For purposes of this paragraph, a covered re2 source is any resource that was a part of the corpus of 

3 the estate of the child or the corpus of the estate of any 

4 person with whom such child is residing who is legally re5 sponsible for such child’s support that the Secretary con6 siders that under all the circumstances, if the child or per7 son had not disposed of such resource, it would be reason8 able that the resource (or some portion of the resource) 

9 be consumed for the child’s maintenance. 

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

11 may consider, in accordance with regulations the Sec12 retary shall prescribe, a transfer of an asset (including a 

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

14 instrument or investment) a disposal of a covered resource 

15 for less than fair market value if such transfer reduces 

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

17 (i) that the Secretary considers, under all the cir18 cumstances, would be reasonable to be consumed for the 

19 child’s maintenance. 

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

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

22 clause (ii). 

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

24 which the child applies for pension under section 1542 of 

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

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1 described in subparagraph (B)) disposes of covered re2 sources for less than fair market value. 

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

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

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

6 does not occur in any other period of ineligibility under 

7 this paragraph. 

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

9 clause shall be equal to— 

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

11 of all covered resources so disposed of by the child 

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

13 after the look-back date described in subparagraph 

14 (C)(i); divided by 

15 ‘‘(ii) the amount of the monthly pension that 

16 would be payable to the child under section 1542 of 

17 this title without consideration of such resources 

18 under paragraph (1), 

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

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

21 and 

22 (3) by adding at the end the following new sub23 section: 

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

25 payment of pension under section 1541 or 1542 of this 

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

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

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

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

5 by an individual to the extent that— 

6 ‘‘(A) a satisfactory showing is made to the Sec7 retary (in accordance with regulations promulgated 

8 by the Secretary) that all resources transferred for 

9 less than fair market value have been returned to 

10 the transferor; or 

11 ‘‘(B) the Secretary determines, under proce12 dures established by the Secretary, that the denial 

13 or discontinuance of payment would work an undue 

14 hardship as determined on the basis of criteria es15 tablished by the Secretary. 

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

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

18 increased pension under subsection (c), (d), or (e) of sec19 tion 1541 of this title on account of a child, and at such 

20 other times as the Secretary considers appropriate, the 

21 Secretary shall— 

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

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

24 (b)(2), as applicable, providing for a period of ineli25 gibility for payment of pension or increased pension 

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1 under such sections for individuals who make certain 

2 dispositions of resources for less than fair market 

3 value; and 

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

5 information which may be used in determining 

6 whether or not a period of ineligibility for such pay7 ments would be required by reason of such sub8 sections.’’. 

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

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

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

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

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

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

15 apply with respect to payments of pension and increased 

16 pension applied for after such date and to payments of 

17 pension and increased pension for which eligibility is rede18 termined after such date. 

19 (d) ANNUAL REPORTS.— 

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

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

22 less frequently than once each year thereafter 

23 through 2023, the Secretary of Veterans Affairs 

24 shall submit to the appropriate committees of Con25 gress a report on the administration of subsections 

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

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

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

4 1543 of such title, as added by subsection (b), dur5 ing the most recent 12-month period. 

6 (2) ELEMENTS.—Each report submitted under 

7 paragraph (1) shall include the following, for the pe8 riod covered by the report: 

9 (A) The number of individuals who applied 

10 for pension under chapter 15 of such title. 

11 (B) The number of individuals who re12 ceived pension under such chapter. 

13 (C) The number of individuals with respect 

14 to whom the Secretary denied or discontinued 

15 payment of pension under the subsections re16 ferred to in paragraph (1). 

17 (D) For each individual for whom the Sec18 retary denied or discontinued payment of pen19 sion under the subsections referred to in para20 graph (1)— 

21 (i) the age of the individual; 

22 (ii) if the individual was denied or dis23 continued payment of pension because of a 

24 transfer of resources, the value of such 

25 transfer; and 

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1 (iii) such other information relating to 

2 such denial or discontinuance as the Sec3 retary considers appropriate. 

4 (E) Such other information as the Sec5 retary considers appropriate. 

6 (3) APPROPRIATE COMMITTEES OF CONGRESS

7 DEFINED.—In this subsection, the term ‘‘appro8 priate committees of Congress’’ means— 

9 (A) the Committee on Veterans’ Affairs 

10 and the Select Committee on Aging of the Sen11 ate; and 

12 (B) the Committee on Veterans’ Affairs of 

13 the House of Representatives. 

Æ 

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