I 
112TH CONGRESS 
2D SESSION 
H. R. 6171 
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 HOUSE OF REPRESENTATIVES 
JULY 24, 2012 
Mr. ROONEY (for himself, Mr. BILIRAKIS, Mr. SCHRADER, and Mr. BARBER) 
introduced the following bill; which was referred to the Committee on 
Veterans’ Affairs 
A BILL 
To amend title 38, United States Code, to require the Sec-
retary of Veterans Affairs to consider the resources of 
individuals applying for pension that were recently dis-
posed of by the individuals for less than fair market 
value when determining the eligibility of such individuals 
for such pension, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting Veterans 
Pension Act’’. 
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SEC. 2. CONSIDERATION BY SECRETARY OF VETERANS AF-
FAIRS OF RESOURCES DISPOSED OF FOR 
LESS THAN FAIR MARKET VALUE BY INDIVID-
UALS APPLYING FOR PENSION. 
(a) VETERANS.—Section 1522 of title 38, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If a veteran otherwise eligible for payment 
of pension under section 1513 or 1521 of this title or the 
spouse of such veteran disposes of covered resources for 
less than fair market value on or after the look-back date 
described in subparagraph (C)(i), the Secretary shall deny 
or discontinue the payment of pension to such veteran 
under section 1513 or 1521 of this title, as the case may 
be, for months during the period beginning on the date 
described in subparagraph (D) and equal to the number 
of months calculated as provided in subparagraph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the veteran or, if the veteran has a spouse, 
the corpus of the estates of the veteran and of the vet-
eran’s spouse, that the Secretary considers that under all 
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the circumstances, if the veteran or spouse had not dis-
posed of such resource, it would be reasonable that the 
resource (or some portion of the resource) be consumed 
for the veteran’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
the amount in the corpus of the estate of the veteran or, 
if the veteran has a spouse, the corpus of the estates of 
the veteran and of the veteran’s spouse, that the Secretary 
considers, under all the circumstances, would be reason-
able to be consumed for the veteran’s maintenance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the veteran applies for pension under section 1513 
or 1521 of this title or, if later, the date on which the 
veteran (or the spouse of the veteran) disposes of covered 
resources for less than fair market value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
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sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
‘‘(E) The number of months calculated under this 
subparagraph shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of all covered resources so disposed of by the veteran 
(or the spouse of the veteran) on or after the look- 
back date described in subparagraph (C)(i); divided 
by 
‘‘(ii) the amount of the monthly pension that 
would be payable to the veteran under section 1513 
or 1521 of this title without consideration of such 
resources under paragraph (1), 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months. 
‘‘(F) In the case of a transfer by the spouse of a vet-
eran that results in a period of ineligibility for the veteran 
under this paragraph, the Secretary shall apportion the 
period (or any portion of the period) among the veteran 
and the veteran’s spouse if the spouse becomes eligible for 
pension under this chapter.’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
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(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If a veteran otherwise eligible for payment 
of increased pension under subsection (c), (d), (e), or (f) 
of section 1521 of this title on account of a child, the 
spouse of the veteran, or the child disposes of covered re-
sources for less than fair market value on or after the 
look-back date described in subparagraph (C)(i), the Sec-
retary shall deny or discontinue payment of such increased 
pension for months during the period beginning on the 
date described in subparagraph (D) and equal to the num-
ber of months calculated as provided in subparagraph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the child that the Secretary considers that 
under all the circumstances, if the veteran, the spouse of 
the veteran, or the child had not disposed of such resource, 
it would be reasonable that the resource (or some portion 
of the resource) be consumed for the child’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
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the amount in the corpus of the estate of the child that 
the Secretary considers, under all the circumstances, 
would be reasonable to be consumed for the child’s mainte-
nance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the veteran applies for payment of increased pen-
sion under subsection (c), (d), (e), or (f) of section 1521 
of this title on account of a child or, if later, the date 
on which the veteran (or the child) disposes of covered 
resources for less than fair market value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
‘‘(E) The number of months calculated under this 
subparagraph shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of all covered resources so disposed of by the veteran 
(or the child) on or after the look-back date de-
scribed in subparagraph (C)(i); divided by 
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‘‘(ii) the amount of the increased monthly pen-
sion that would be payable to the veteran under sub-
section (c), (d), (e), or (f) of section 1521 of this 
title on account of a child without consideration of 
such resources under paragraph (1), 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
and 
(3) by adding at the end the following new sub-
section: 
‘‘(c)(1) The Secretary shall not deny or discontinue 
payment of pension under section 1513 or 1521 of this 
title or payment of increased pension under subsection (c), 
(d), (e), or (f) of section 1521 of this title on account of 
a child by reason of the application of subsection (a)(2) 
or (b)(2) of this section to the disposal of resources by 
an individual to the extent that— 
‘‘(A) a satisfactory showing is made to the Sec-
retary (in accordance with regulations promulgated 
by the Secretary) that all resources transferred for 
less than fair market value have been returned to 
the transferor; or 
‘‘(B) the Secretary determines, under proce-
dures established by the Secretary, that the denial 
or discontinuance of payment would work an undue 
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hardship as determined on the basis of criteria es-
tablished by the Secretary. 
‘‘(2) At the time a veteran applies for pension under 
section 1513 or 1521 of this title or increased pension 
under subsection (c), (d), (e), or (f) of section 1521 of 
this title on account of a child, and at such other times 
as the Secretary considers appropriate, the Secretary 
shall— 
‘‘(A) inform such veteran of the provisions of 
subsections (a)(2) and (b)(2) providing for a period 
of ineligibility for payment of pension under such 
sections for individuals who make certain disposi-
tions of resources for less than fair market value; 
and 
‘‘(B) obtain from such veteran information 
which may be used in determining whether or not a 
period of ineligibility for such payments would be re-
quired by reason of such subsections.’’. 
(b) SURVIVING SPOUSES AND CHILDREN.—Section 
1543 of such title is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraph (2) as 
paragraph (3); 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
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‘‘(2)(A) If a surviving spouse otherwise eligible for 
payment of pension under section 1541 of this title dis-
poses of covered resources for less than fair market value 
on or after the look-back date described in subparagraph 
(C)(i), the Secretary shall deny or discontinue the pay-
ment of pension to such surviving spouse under section 
1541 of this title for months during the period beginning 
on the date described in subparagraph (D) and equal to 
the number of months calculated as provided in subpara-
graph (E). 
‘‘(B)(i) For purposes of this paragraph, a covered re-
source is any resource that was a part of the corpus of 
the estate of the surviving spouse that the Secretary con-
siders that under all the circumstances, if the surviving 
spouse had not disposed of such resource, it would be rea-
sonable that the resource (or some portion of the resource) 
be consumed for the surviving spouse’s maintenance. 
‘‘(ii) For purposes of this paragraph, the Secretary 
may consider, in accordance with regulations the Sec-
retary shall prescribe, a transfer of an asset (including a 
transfer of an asset to an annuity, trust, or other financial 
instrument or investment) a disposal of a covered resource 
for less than fair market value if such transfer reduces 
the amount in the corpus of the estate of the surviving 
spouse that the Secretary considers, under all the cir-
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cumstances, would be reasonable to be consumed for the 
surviving spouse’s maintenance. 
‘‘(C)(i) The look-back date described in this clause 
is a date that is 36 months before the date described in 
clause (ii). 
‘‘(ii) The date described in this clause is the date on 
which the surviving spouse applies for pension under sec-
tion 1541 of this title or, if later, the date on which the 
surviving spouse disposes of covered resources for less 
than fair market value. 
‘‘(D) The date described in this subparagraph is the 
first day of the first month in or after which covered re-
sources were disposed of for less than fair market value 
and which does not occur in any other period of ineligi-
bility under this paragraph. 
‘‘(E) The number of months calculated under this 
subparagraph shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of all covered resources so disposed of by the sur-
viving spouse on or after the look-back date de-
scribed in subparagraph (C)(i); divided by 
‘‘(ii) the amount of the monthly pension that 
would be payable to the surviving spouse under sec-
tion 1541 of this title without consideration of such 
resources under paragraph (1), 
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