Eligibility Reporting Requirements

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AJ09

Eligibility Reporting Requirements

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA)

adjudication regulations concerning eligibility verification reports

(EVRs) for recipients of pension under programs in effect prior to

January 1, 1979. The amendment reduces the number of circumstances

under which VA requires such pensioners to furnish annual EVRs. The

intended effect of this amendment is to reduce the reporting burden on

these beneficiaries, reduce the workload at VA regional offices, and

enable VA to use its resources more effectively.

DATES: Effective date: October 6, 1998.

Comment date: Comments must be received on or before December 7,

1998.

ADDRESSES: Mail or hand-deliver written comments to: Director, Office

of Regulations Management (02D), Department of Veterans Affairs, 810

Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should

indicate that they are submitted in response to ``RIN: 2900-AJ09.'' All

written comments received will be available for public inspection at

the above address in the Office of Regulations Management, Room 1158,

between the hours of 8 a.m. and 4:30 p.m., Monday through Friday

(except holidays). (In addition, see the Paperwork Reduction Act

heading under the Supplementary Information section of this preamble

regarding submission of comments on the information collection burden.)

FOR FURTHER INFORMATION CONTACT: John Bisset, Jr., Consultant,

Regulations Staff, Compensation and Pension Service, Veterans Benefits

Administration, 810 Vermont Avenue, NW, Washington, DC 20420, telephone

(202) 273-7210.

SUPPLEMENTARY INFORMATION: The term ``eligibility verification report''

(EVR)

[[Page 53594]]

means a VA form requesting information, such as income and marital

status, that VA needs to determine or verify eligibility for its need-

based benefit programs, such as old law pension and section 306

pension. The term ``old law pension'' means the disability and death

pension programs that were in effect on June 30, 1960. The term

``section 306 pension'' means those disability and death pension

programs in effect on December 31, 1978.

Old law and section 306 pension are need-based benefits in that an

individual's eligibility for either depends on his or her income being

below a certain limit. If an individual's income exceeds the limit, the

individual is no longer eligible. Also, the rate of pension paid is

affected by the number of dependents the eligible individual has. For

these reasons, EVRs request information concerning income and marital

status.

Former 38 CFR 3.256(b)(3) required every old law and section 306

pension recipient, as a condition to continuing to receive pension, to

furnish VA an EVR upon request. Former 38 CFR 3.256(b)(2) required VA

to require an EVR under the following circumstances: (i) If the Social

Security Administration has not verified the recipient's Social

Security number and, if the recipient is married, his or her spouse's

Social Security number; (ii) if there is any reason to believe that the

recipient or, if the recipient's spouse's income could affect

entitlement, his or her spouse may have received income other than

Social Security benefits during the current or previous calendar year;

or (iii) if the Secretary determines that an EVR is necessary to

preserve program integrity. This interim final rule requires VA to

require an EVR from an old-law or section-306 pension recipient only if

the Secretary determines that an EVR is necessary to preserve program

integrity.

VA has determined that it is no longer necessary to require EVRs

from old law or section 306 pension recipients solely on the bases

described in former 38 CFR 3.256(b)(2)(i) and (ii). VA required EVRs in

these circumstances to help determine whether the recipients' income

exceeded applicable limits. However, the annual income of all old law

and section 306 pension recipients has been below applicable limits

every year since 1978, and we believe it unlikely that their income

will exceed applicable limits in the future. If a recipient's income

does exceed the applicable limit, 38 CFR 3.256(a) still requires that

he or she promptly notify VA.

Based on these facts, we have determined that it is no longer

necessary to require old law and section 306 pension recipients to

submit EVRs based on unverified Social Security numbers or suspected

additional income.

Requiring fewer EVRs from old law and section 306 pensioners will

reduce the reporting burden for these elderly beneficiaries (the

average age is 75) without significantly increasing the risk of

erroneous pension payments. Because the rates of payment do not change,

changes in income have no effect on payments except in the rare

instance of income exceeding the income limit. Furthermore, VA has data

exchange programs with other agencies such as the Internal Revenue

Service, the Social Security Administration, the Railroad Retirement

Board, and the Office of Personnel Management. These computer matching

programs increase the likelihood that VA will learn of increases in

income in those rare instances where the beneficiary failed to report

the change. This amendment will also reduce workload at VA regional

offices and enable VA to redirect scarce resources to other types of

claims processing.

VA will still require old law and section 306 pensioners to furnish

EVRs if it determines that it is necessary to preserve program

integrity, which means it is necessary for VA, or an agency with

oversight authority over VA, to verify that EVR-exempt beneficiaries

are accurately reporting changes in entitlement factors. 38 CFR 3.256

is amended accordingly.

Paperwork Reduction Act

Under the Paperwork Reduction Act of 1995, as amended (44 U.S.C.

3501-3520), this interim final rule includes information collection

provisions in 38 CFR 3.256 and 3.277. Prior to the effective date of

this document, the information collections contained in Secs. 3.256 and

3.277 were approved by OMB through November 30, 2000, under OMB Control

No. 2900-0101. For some recipients of pension under programs in effect

prior to January 1, 1979, this interim final rule eliminates the

previous requirement they submit EVRs to VA annually. The only action

concerning information collection taken by this document is to

eliminate certain collections of information contained in the approval

under OMB Control No. 2900-0101. In accordance with section 3507(j) of

the Act and 5 CFR 1320.13, we have requested that OMB approve the

information collection provisions in Secs. 3.256 and Sec. 3.277 under

OMB Control No. 2900-0101 on an emergency basis for 180 days.

VA intends to seek an extension of the approval for the information

collection changes made by this document. Therefore, VA asks for

comments regarding the information collection provisions contained in

Secs. 3.256 and 3.277. After considering any comments received during

the comment period, VA will submit a copy of the proposed information

collection provisions to OMB for approval.

This document eliminates 22,500 reporting hours from the total of

354,725 burden hours that OMB had previously approved under the same

control number. The Secretary has determined that the collection of

information is essential to the mission of the agency, that use of the

collection of information in this document is needed before the normal

time periods established under 5 CFR part 1320, and that public harm is

reasonably likely to result if normal clearance procedures are

followed. This interim final rule eliminates the need for VA to mail

approximately 45,000 elderly recipients of old law or section 306

pensions reporting forms that would require responses. Accordingly,

emergency approval of the information collection as amended by this

interim final rule is needed to eliminate VA's obligation to mail out

unnecessary EVR forms and thereby avoid an unnecessary burden to the

public.

Title: Eligibility Verification Reports.

Summary of collection of information: This collection of

information consists of written information concerning entitlement

factors in VA's income-based benefit programs, pension and parents'

dependency and indemnity compensation, that a person must submit on a

form prescribed by the Secretary within 60 days of a request by VA. It

also consists of written information concerning the same entitlement

factors that a person must report promptly if there is a change

affecting entitlement, but need not submit on a form.

Description of need for information and proposed use of

information: Any individual who has applied for or receives pension or

parents' dependency and indemnity compensation must promptly notify the

Secretary of changes affecting entitlement to such benefits and respond

within 60 days of a request by VA for written information concerning

entitlement factors. The information is required to comply with

statutory eligibility requirements.

Description of likely respondents: Individuals or households.

Estimated number of respondents: 664,450.

[[Page 53595]]

Estimated frequency of responses: Once per year.

Estimated total annual reporting and recordkeeping burden: 332,225

hours.

Estimated average burden per collection: 30 minutes.

The Department considers comments by the public on proposed

collections of information in--

Evaluating whether the proposed collections of information

are necessary for the proper performance of the functions of the

Department, including whether the information will have practical

utility;

Evaluating the accuracy of the Department's estimate of

the burden of the proposed collections of information, including the

validity of the methodology and assumptions used;

Enhancing the quality, usefulness, and clarity of the

information to be collected; and

Minimizing the burden of the collections of information on

those who are to respond, including through the use of appropriate

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology, e.g., permitting

electronic submission of responses.

OMB assigns a control number for each collection of information it

approves. VA may not conduct or sponsor, and a person is not required

to respond to, a collection of information unless it displays a

currently valid OMB control number.

Comments on the collection of information must be submitted by

October 14, 1998 and be sent to the Office of Management and Budget,

Attention: Desk Officer for the Department of Veterans Affairs, Office

of Information and Regulatory Affairs, Washington, DC 20503, with

copies to the Director, Office of Regulations Management (02D),

Department of Veterans Affairs, 810 Vermont Ave., NW, Washington, DC

20420. Comments should indicate that they are submitted in response to

``RIN 2900--AJ09.'' We have asked OMB to act by October 21 1998.

Administrative Procedure Act

There is good cause under the provisions of 5 U.S.C. 553 to publish

this interim final rule without regard to prior notice and comment and

effective date provisions. Compliance with these provisions would be

impracticable, unnecessary, and contrary to the public interest. This

interim final rule merely eliminates collections of information that

are no longer needed.

Regulatory Flexibility Act

Because no notice of proposed rulemaking was required in connection

with the adoption of this interim final rule, no regulatory flexibility

analysis is required under the Regulatory Flexibility Act (5 U.S.C.

601-612). Even so, the Secretary hereby certifies that this interim

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. This interim final rule affects only individuals.

Executive Order 12866

OMB has reviewed this document under the provisions of Executive

Order 12866.

The Catalog of Federal Domestic Assistance program numbers are

64.104 and 64.105.

List of Subjects in 38 CFR Part 3

Administrative practice and procedure, Claims, Disability benefits,

Health care, Pensions, Veterans, Vietnam.

Approved: May 18, 1998.

Togo D. West, Jr.,

Secretary.

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. Section 3.256 is revised to read as follows:

Sec. 3.256 Eligibility reporting requirements.

(a) Obligation to report changes in factors affecting entitlement.

Any individual who has applied for or receives pension or parents'

dependency and indemnity compensation must promptly notify the

Secretary in writing of any change affecting entitlement in any of the

following:

(1) Income;

(2) Net worth or corpus of estate;

(3) Marital status;

(4) Nursing home patient status;

(5) School enrollment status of a child 18 years of age or older;

or

(6) Any other factor that affects entitlement to benefits under the

provisions of this Part.

(b) Eligibility verification reports. (1) For purposes of this

section the term eligibility verification report means a form

prescribed by the Secretary that is used to request income, net worth

(if applicable), dependency status, and any other information necessary

to determine or verify entitlement to pension or parents' dependency

and indemnity compensation.

(2) VA will not require old law or section 306 pensioners to submit

eligibility verification reports unless the Secretary determines that

doing so is necessary to preserve program integrity.

(3) The Secretary shall require an eligibility verification report

from individuals receiving parents' dependency and indemnity

compensation under the following circumstances:

(i) If the Social Security Administration has not verified the

beneficiary's Social Security number and, if the beneficiary is

married, his or her spouse's Social Security number.

(ii) If there is reason to believe that the beneficiary or, if the

spouse's income could affect entitlement, his or her spouse may have

received income other than Social Security during the current or

previous calendar year; or

(iii) If the Secretary determines that an eligibility verification

report is necessary to preserve program integrity.

(4) An individual who applies for or receives pension or parents'

dependency and indemnity compensation as defined in Secs. 3.3 or 3.5 of

this part shall, as a condition of receipt or continued receipt of

benefits, furnish the Department of Veterans Affairs an eligibility

verification report upon request.

(c) If VA requests that a claimant or beneficiary submit an

eligibility verification report but he or she fails to do so within 60

days of the date of the VA request, the Secretary shall suspend the

award or disallow the claim.

(Authority: Sec. 306(a)(2) and (b)(3), Pub. L. 95-588, 92 Stat.

2508-2509; 38 U.S.C. 1315(e))

3. Section 3.277 is republished as follows:

Sec. 3.277 Eligibility reporting requirements.

(a) Evidence of entitlement. As a condition of granting or

continuing pension, the Department of Veterans Affairs may require from

any person who is an applicant for or a recipient of pension such

information, proofs, and evidence as is necessary to determine the

annual income and the value of the corpus of the estate of such person,

and of any spouse or child from whom the person is receiving or is to

receive increased pension (such child is hereinafter in this section

referred to as

[[Page 53596]]

a dependent child), and, in the case of a child applying for or in

receipt of pension in his or her own behalf (hereinafter in this

section referred to as a surviving child), of any person with whom such

child is residing who is legally responsible for such child's support.

(b) Obligation to report changes in factors affecting entitlement.

Any individual who has applied for or receives pension must promptly

notify the Secretary in writing of any change affecting entitlement in

any of the following:

(1) Income;

(2) Net worth or corpus of estate;

(3) Marital status;

(4) Nursing home patient status;

(5) School enrollment status of a child 18 years of age or older;

or

(6) Any other factor that affects entitlement to benefits under the

provisions of this part.

(c) Eligibility verification reports. (1) For purposes of this

section the term eligibility verification report means a form

prescribed by the Secretary that is used to request income, net worth,

dependency status, and any other information necessary to determine or

verify entitlement to pension.

(2) The Secretary shall require an eligibility verification report

under the following circumstances:

(i) If the Social Security Administration has not verified the

beneficiary's Social Security number and, if the beneficiary is

married, his or her spouse's Social Security number;

(ii) If there is reason to believe that the beneficiary or his or

her spouse may have received income other than Social Security during

the current or previous calendar year; or

(iii) If the Secretary determines that an eligibility verification

report is necessary to preserve program integrity.

(3) An individual who applies for or receives pension as defined in

Sec. 3.3 of this part shall, as a condition of receipt or continued

receipt of benefits, furnish the Department of Veterans Affairs an

eligibility verification report upon request,

(d) If VA requests that a claimant or beneficiary submit an

eligibility verification report but he or she fails to do so within 60

days of the date of the VA request, the Secretary shall suspend the

award or disallow the claim.

(Authority: 38 U.S.C. 1506)

[FR Doc. 98-26781 Filed 10-5-98; 8:45 am]

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