I 
113TH CONGRESS 
1ST SESSION H. R. 2341 
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 
JUNE 12, 2013 
Mr. ROONEY (for himself, Mr. BILIRAKIS, Mr. BARBER, and Mr. SCHRADER) 
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 ‘‘Veterans Pension Pro-
tection 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 maximum amount of monthly pension 
that is payable to a veteran under section 1513 or 
1521 of this title, including the maximum amount of 
increased pension payable under such sections on ac-
count of family members, but not including any 
amount of pension payable under such sections be-
cause a veteran is in need of regular aid and attend-
ance or is permanently housebound, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(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 
the amount in the corpus of the estate of the child that 
the Secretary considers, under all the circumstances, 
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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, the spouse of the veteran, or the 
child disposes of covered resources for less than fair mar-
ket 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 vet-
eran, the spouse of the veteran, or the child on or 
after the look-back date described in subparagraph 
(C)(i); divided by 
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‘‘(ii) the maximum amount of increased month-
ly pension that is payable to a veteran under sub-
section (c), (d), (e), or (f) of section 1521 of this 
title on account of a child, 
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 disposed of for 
less than fair market value have been returned to 
the individual who disposed of the resources; 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 maximum amount of monthly pension 
that is payable to a surviving spouse under section 
1541 of this title, including the maximum amount of 
increased pension payable under such section on ac-
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count of a child, but not including any amount of 
pension payable under such section because a sur-
viving spouse is in need of regular aid and attend-
ance or is permanently housebound, 
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 surviving spouse 
during the veteran’s lifetime that resulted in a period of 
ineligibility for the veteran under section 1522 of this title, 
the Secretary shall apply to the surviving spouse any re-
maining ineligibility for that period.’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(4)(A) If a surviving spouse otherwise eligible for 
payment of increased pension under subsection (c), (d), 
or (e) of section 1541 of this title on account of a child 
or the child 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 dis-
continue payment of such increased pension for months 
during the period beginning on the date described in sub-
paragraph (D) and equal to the number of months cal-
culated 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 
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the estate of the child that the Secretary considers that 
under all the circumstances, if the surviving spouse or the 
child had not disposed of such resource, it would be rea-
sonable 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 
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 surviving spouse applies for payment of in-
creased pension under subsection (c), (d), or (e) of section 
1541 of this title on account of a child or, if later, the 
date on which the surviving spouse (or the child) disposes 
of covered resources for less than fair market value. 
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‘‘(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 
clause shall be equal to— 
‘‘(i) the total, cumulative uncompensated value 
of all covered resources so disposed of by the sur-
viving spouse (or the child) on or after the look-back 
date described in subparagraph (C)(i); divided by 
‘‘(ii) the maximum amount of increased month-
ly pension that is payable to a surviving spouse 
under subsection (c), (d), or (e) of section 1541 of 
this title on account of a child, 
rounded, in the case of any fraction, to the nearest whole 
number, but shall not in any case exceed 36 months.’’; 
(2) in subsection (b)— 
(A) by inserting ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2)(A) If a child otherwise eligible for payment of 
pension under section 1542 of this title or any person with 
whom such child is residing who is legally responsible for 
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such child’s support disposes of covered resources for less 
than fair market value on or after the look-back date de-
scribed in subparagraph (C)(i), the Secretary shall deny 
or discontinue the payment of pension to such child under 
section 1542 of this title for months during the period be-
ginning 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 child or the corpus of the estate of any 
person with whom such child is residing who is legally re-
sponsible for such child’s support that the Secretary con-
siders that under all the circumstances, if the child or per-
son had not disposed of such resource, it would be reason-
able 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 
the amount in the corpus of the estate described in clause 
(i) that the Secretary considers, under all the cir-
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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 1541 or 1542 of this 
title or payment of increased pension under subsection (c), 
(d), or (e) of section 1541 of this title on account of a 
child by reason of the application of subsection (a)(2), 
(a)(4), 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 disposed of for 
less than fair market value have been returned to 
the individual who disposed of the resources; or 
‘‘(B) the Secretary determines, under proce-
dures established by the Secretary, that the denial 
or discontinuance of payment would work an undue 
hardship as determined on the basis of criteria es-
tablished by the Secretary. 
‘‘(2) At the time a surviving spouse or child applies 
for pension under section 1541 or 1542 of this title or 
increased pension under subsection (c), (d), or (e) of sec-
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tion 1541 of this title on account of a child, and at such 
other times as the Secretary considers appropriate, the 
Secretary shall— 
‘‘(A) inform such surviving spouse or child of 
the provisions of subsections (a)(2), (a)(4), and 
(b)(2), as applicable, providing for a period of ineli-
gibility for payment of pension or increased pension 
under such sections for individuals who make certain 
dispositions of resources for less than fair market 
value; and 
‘‘(B) obtain from such surviving spouse or child 
information which may be used in determining 
whether or not a period of ineligibility for such pay-
ments would be required by reason of such sub-
sections.’’. 
(c) EFFECTIVE DATE.—Subsections (a)(2), (b)(2), 
and (c) of section 1522 of title 38, United States Code, 
as added by subsection (a), and subsections (a)(2), (a)(4), 
(b)(2), and (c) of section 1543 of such title, as added by 
subsection (b), shall take effect on the date that is one 
year after the date of the enactment of this Act and shall 
apply with respect to payments of pension and increased 
pension applied for after such date and to payments of 
pension and increased pension for which eligibility is rede-
termined after such date, except that no reduction in pen-
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sion shall be made under such subsections because of any 
disposal of covered resources made before such date. 
(d) ANNUAL REPORTS.— 
(1) IN
GENERAL.—Not later than two years 
after the date of the enactment of this Act and not 
less frequently than once each year thereafter 
through 2018, the Secretary of Veterans Affairs 
shall submit to the appropriate committees of Con-
gress a report on the administration of subsections 
(a)(2), (b)(2), and (c) of section 1522 of title 38, 
United States Code, as added by subsection (a), and 
subsections (a)(2), (a)(4), (b)(2), and (c) of section 
1543 of such title, as added by subsection (b), dur-
ing the most recent 12-month period. 
(2) ELEMENTS.—Each report submitted under 
paragraph (1) shall include the following, for the pe-
riod covered by the report: 
(A) The number of individuals who applied 
for pension under chapter 15 of such title. 
(B) The number of individuals who re-
ceived pension under such chapter. 
(C) The number of individuals with respect 
to whom the Secretary denied or discontinued 
payment of pension under the subsections re-
ferred to in paragraph (1). 
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(D) A description of any trends identified 
by the Secretary regarding pension payments 
that have occurred as a result of the amend-
ments made by this section. 
(E) Such other information as the Sec-
retary considers appropriate. 
(3) APPROPRIATE COMMITTEES OF CONGRESS 
DEFINED.—In this subsection, the term ‘‘appro-
priate committees of Congress’’ means— 
(A) the Committee on Veterans’ Affairs 
and the Select Committee on Aging of the Sen-
ate; and 
(B) the Committee on Veterans’ Affairs of 
the House of Representatives. 
Æ 
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