[Federal Register Volume 60, Number 6 (Tuesday, January 10, 1995)]
[Rules and Regulations]
[Pages 2522-2523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-487]



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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 3
RIN 2900-AH12

Exclusions from Income (RECA Payments)
AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
adjudication regulations concerning income and net worth exclusions. 
The purpose of the rule is to implement legislation excluding from 
consideration as countable income and net worth amounts paid to 
claimants under the Radiation Exposure Compensation Act (RECA). The 
intended effect of this amendment is to have VA regulations conform to 
the requirements of that statute.

EFFECTIVE DATE: This amendment is effective October 15, 1990, the date 
specified in Pub. L. 101-426.

FOR FURTHER INFORMATION CONTACT: Paul Trowbridge, Consultant, 
Regulations Staff, Compensation and Pension Service, Veterans Benefits 
Administration, 810 Vermont Avenue, NW, Washington, DC 20420, telephone 
(202) 273-7210.

SUPPLEMENTARY INFORMATION: Public Law 101-426, the Radiation Exposure 
Compensation Act (RECA), was enacted by Congress to compensate 
individuals who may have suffered adverse health effects from working 
in uranium mines or living downwind of above-ground nuclear tests. 
Section 6(h) of that law provides that RECA payments shall not be 
included as income or resources for purposes of determining eligibility 
for benefits described in section 3803(c)(2)(C) of Title 31, United 
States Code. Title 31 U.S.C. 3803(c)(2)(C)(viii) lists benefits under 
chapters 11, 13 and 15 of Title 38, United States Code, which governs 
payment of VA benefits.
    VA administers several income-based benefit programs under which a 
claimant's countable income determines the rate of VA benefits payable. 
Net worth may also affect eligibility. Those affected by RECA are death 
compensation (38 U.S.C. chapter 11), Parents' Dependency and Indemnity 
Compensation (38 U.S.C. chapter 13) and the Improved Pension program 
(38 U.S.C. chapter 15). Other VA benefits which are income-based, 
notably the prior pension programs known as the Section 306 and Old Law 
pension programs, are no longer authorized under those chapters of 38 
U.S.C. listed in Public Law 101-426.
    VA regulations at 38 CFR 3.271 state that payments of any kind from 
any source shall be counted as income for purposes of the Improved 
Pension program unless specifically excluded under 38 CFR 3.272. 38 CFR 
3.261(a) indicates whether various categories of income are included or 
excluded when determining eligibility for Parents Dependency and 
Indemnity Compensation or pension programs which were in effect prior 
to January 1, 1979. It also indicates whether various categories of 
income are included or excluded when determining whether a parent 
qualifies as a dependent parent for purposes of 38 U.S.C. chapter 11. 
38 CFR 3.274 states that Improved Pension shall be denied or 
discontinued when the corpus of a claimant's estate is such that it is 
reasonable that some of the estate be used for the claimant's 
maintenance.
    We are amending 38 CFR 3.261, 3.262, and 3.272 to show that RECA 
payments are excludable from countable income for Parents' Dependency 
and Indemnity Compensation, the Improved Pension program, and in 
determining whether a parent is dependent for purposes of 38 U.S.C. 
chapter 11. We are amending 38 CFR 3.275 to show that RECA payments are 
not to be included in computing an Improved Pension claimant's net 
worth. Net worth is not a factor for Parents' Dependency and Indemnity 
Compensation. The purpose of this rule is to amend the regulations to 
be consistent with the provisions of section 6 of Public Law 101-426.
    This final rule is made effective without notice and comment since 
it makes changes merely to reflect statutory requirements.
    The Secretary certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act (RFA), 5 U.S.C. 
601-612. This rule will directly affect VA beneficiaries but will not 
affect small businesses. Therefore, pursuant to 5 U.S.C. 605(b), this 
final regulation is exempt from the initial and final regulatory 
flexibility analyses requirements of sections 603 and 604.

    The catalog of Federal Domestic Assistance program numbers are 
64.104, 64.105, 64.109, and 64.110.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedure, Claims, Health care, 
Individuals with disabilities, Pensions, Veterans.

    Approved: December 22, 1994.
Jesse Brown,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR Part 3 is amended 
as follows:
PART 3--ADJUDICATION
Subpart A--Pension, Compensation, and Dependency and Indemnity 
Compensation
    1. The authority citation for part 3, subpart A continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), unless otherwise noted.
    2. In Sec. 3.261, a new paragraph (a)(38) is added to read as 
follows:


Sec. 3.261  Character of income; exclusions and estates.

    (a) Income

                                                                                                                
        *                  *                  *                  *                  *                  *        
                                                        *                                                       
(38) Income received under Section 6                                                                            
 of the                                                                                                         
  Radiation Exposure Compensation Act  Excluded       Excluded       Included       Included       3.262(w)     
 (Pub. L. 101-426)                                                                                              
                                                                                                                
        *                  *                  *                  *                  *                  *        
                                                        *                                                       
                                                                                                                

    3. In Sec. 3.262, paragraph (w) and its authority citation are 
added to read as follows:
Sec. 3.262  Evaluation of income.

* * * * *
    (w) Radiation Exposure Compensation Act. For the purposes of 
parents' dependency and indemnity compensation, there shall be excluded 
from income computation payments under Section 6 of the Radiation 
Exposure Compensation Act of 1990.
(Authority: 42 U.S.C. 2210 note) [[Page 2523]] 
    4. In Sec. 3.272, paragraph (s) and its authority citation are 
added to read as follows:


Sec. 3.272  Exclusions from income.

* * * * *
    (s) Radiation Exposure Compensation Act. Any payment made under 
Section 6 of the Radiation Exposure Compensation Act of 1990.

(Authority: 42 U.S.C. 2210 note)

    5. In Sec. 3.275, paragraph (h) and its authority citation are 
added to read as follows:


Sec. 3.275  Criteria for evaluating net worth.

* * * * *
    (h) Radiation Exposure Compensation Act. There shall be excluded 
from the corpus of estate or net worth of a claimant any payment made 
under Section 6 of the Radiation Exposure Compensation Act of 1990.

(Authority: 42 U.S.C. 2210 note)

[FR Doc. 95-487 Filed 1-9-95; 8:45 am]
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