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Veterans’ Benefits Act of 2010

Overview of Changes Made by
Public Law 111-275, the Veterans’
Benefits Act of 2010

 

Purpose
On October 13, 2010, the President signed the Veterans’ Benefits Act of 2010. This
letter provides guidance regarding those statutory changes that impact delivery of VA
disability benefits.
The amendments pertinent to Compensation and Pension benefits are effective on
October 1, 2011 with the exception of section 606, which was effective on the date of
the law change.
IMPORTANT: See section 606 on page 9 for important procedural changes that
should be followed immediately when processing certain pension awards.

Overview of Pertinent Changes from Public Law
111-275
TITLE V – BURIAL AND CEMETERY MATTERS
Section 501. INCREASE IN CERTAIN BURIAL
AND FUNERAL BENEFITS AND PLOT
ALLOWANCES FOR VETERANS.
Title 38, United States Code (U.S.C.), Section 2303
(a) is amended to increase the burial allowance from
$300 to $700 for Veterans who die while properly hospitalized
by VA. Section 2303 (b) is amended to increase
the plot allowance for all eligible Veterans from $300 to
$700. In addition, this amendment provides for an
annual increase in the burial and plot allowances beginning
in fiscal year 2013 based upon the Consumer Price
Index for the preceding 12-month period. The increases
from $300 to $700 will apply to deaths occurring on or
after October 1, 2011. The first opportunity for an
annual increase is October 1, 2012.
TITLE VI – COMPENSATION AND PENSION
Section 601. ENHANCEMENT OF DISABILITY
COMPENSATION FOR CERTAIN DISABLED
VETERANS WITH DIFFICULTIES USING PROSTHESES
AND DISABLED VETERANS IN NEED
OF REGULAR AID AND ATTENDANCE FOR
RESIDUALS OF TRAUMATIC BRAIN INJURY.
38 U.S.C. § 1114 (m), (n), and (o) are amended to
remove current statutory language that bases special
monthly compensation (SMC) payments on the location
(or site) of the amputation or complications from such
amputation. Instead, if other requirements are satisfied,
the statute will now allow SMC rates at the (m), (n), and
(o) levels to be paid based on “factors” that prevent natural
elbow or knee action with prostheses in place or use of
prosthetic appliances. VA will be required to promulgate
regulations describing the “factors” that should be considered
when adjudicating such claims.
Section 1114 is amended to add a new subsection
1114 (t), which will pay SMC at the R2 rate for Veterans
who, because of traumatic brain injury residuals, are in
need of aid and attendance, and in absence of such aid
and attendance would require hospitalization, nursing
home care, or other residential institutional care.
Section 602. COST OF LIVING INCREASE FOR
TEMPORARY DEPENDENCY AND INDEMNITY
COMPENSATION PAYABLE FOR SURVIVING
SPOUSES WITH DEPENDENT CHILDREN
UNDER THE AGE OF 18.
38 U.S.C. § 1311 (f) is amended to establish cost-ofliving
increases for the temporary $250 increase in
dependency and indemnity compensation (DIC) that is
payable to surviving spouses with dependent children
under 18. The cost-of-living increases are tied to the
percentage increase to benefit amounts under Title II of
the Social Security Act. Although this amendment was
effective upon enactment, there is no cost-of-living
increase for fiscal year 2011.
Section 603. PAYMENT OF DEPENDENCY AND
INDEMNITY COMPENSATION TO SURVIVORS
OF FORMER PRISONERS OF WAR WHO DIED
ON OR BEFORE SEPTEMBER 30, 1999.
38 U.S.C. § 1318 (b)(3) is amended to allow survivors
of former prisoners of war with a disability continuously
rated totally disabling for at least one year prior to death
to be eligible for DIC without regard to the date of the
Veteran’s death. Currently, survivors are only eligible for
DIC under section 1318 if the Veteran died after
September 30, 1999.
This amendment is effective on October 1, 2011.
Section 604. EXCLUSION OF CERTAIN
AMOUNTS FROM CONSIDERATION AS
INCOME FOR PURPOSES OF VETERANS PENSION
BENEFITS.
38 U.S.C. § 1503(a) is amended to authorize VA to
exclude up to $5,000 of income from a state or municipality
that is paid to the Veteran due to injury or disease when
determining annual income for Veterans pension benefits.
The amendment applies to determinations of annual
income for calendar years beginning after October 1, 2011.
Section 605. COMMENCEMENT OF PERIOD OF
PAYMENT OF ORIGINAL AWARDS OF COMPENSATION
FOR VETERANS RETIRED OR SEPARATED
FROM THE UNIFORMED SERVICES
FOR CATASTROPHIC DISABILITY.
38 U.S.C. § 5111 is amended to allow VA to begin
paying Veterans who have retired or separated from
active duty due to a catastrophic disability from the
effective date of the award of VA compensation (instead
of the first day of the calendar month following the
effective date of the award).
The term “catastrophic disability,” with respect to a
Veteran, means a permanent, severely disabling injury,
disorder, or disease that compromises the ability of the
Veteran to carry out the activities of daily living to such
a degree that the Veteran requires personal or mechanical
assistance to leave home or bed, or requires constant
supervision to avoid physical harm to self or others.
The amendments to section 5111(a) apply to awards of
original compensation claims that become effective on
or after October 1, 2011.
Section 606. APPLICABILITY OF LIMITATION
TO PENSION PAYABLE TO CERTAIN CHILDREN
OF VETERANS OF A PERIOD OF WAR.
38 U.S.C. § 5503(d) is amended to provide VA with
the authority to apply the $90 Medicaid rule to children
of Veterans in receipt of pension. The amendment limits
to $90 a month the amount of pension payable to the
child of a Veteran who receives Medicaid-covered nursing
home care.
Section 607. EXTENSION OF REDUCED PENSION
FOR CERTAIN VETERANS COVERED BY
MEDICAID PLANS FOR SERVICES FURNISHED
BY NURSING FACILITIES.
38 U.S.C. § 5503(d)(7) is amended to extend VA’s
authority to apply the $90 Medicaid nursing home rule
for Veterans, surviving spouses, and children with no
dependents through May 31, 2015. This authority was
scheduled to expire on September 30, 2011.
Section 608. CODIFICATION OF 2009 COST-OFLIVING
ADJUSTMENT IN RATES OF PENSION
FOR DISABLED VETERANS AND SURVIVING
SPOUSES AND CHILDREN.
38 U.S.C. § 1521 is amended to codify pension rates for
Veterans, surviving spouses, and surviving children. This
amendment does not change actual rates paid to these beneficiaries;
it merely updates the rates listed in the statute.
TITLE VII-BENEFITS MATTERS
Section 803. ELIGIBILITY OF DISABLED VETERANS
AND MEMBERS OF THE ARMED
FORCES WITH SEVERE BURN INJURIES FOR
AUTOMOBILES AND ADAPTIVE EQUIPMENT.
38 U.S.C. § 3901 is amended to provide automobile
and adaptive equipment assistance to disabled Service
members and Veterans with severe burn injury (as determined
pursuant to regulations prescribed by the
Secretary). The effective date of this amendment is
October 1, 2011.
Section 804. ENHANCEMENT OF AUTOMOBILE
ASSISTANCE ALLOWANCE FOR VETERANS.
38 U.S.C. § 3902 is amended to increase the automobile
allowance from $11,000 to $18,900. VA is also
directed to increase the maximum allowance annually by
a percentage corresponding to annual increases in the
Consumer Price Index. The effective date of this amendment
is October 1, 2011.
Section 805. NATIONAL ACADEMIES REVIEW
OF BEST TREATMENTS FOR CHRONIC MULTISYMPTOM
ILLNESS IN PERSIAN GULF WAR
VETERANS.
38 U.S.C. § 805 directs the Secretary to enter into an
agreement with the Institute of Medicine of the National
Academy of Sciences to review the best treatment practices
for chronic multi-symptom illness in Gulf War
Veterans. The report shall include recommendations for
legislative or administrative action.
Section 806. EXTENSION AND MODIFICATION
OF NATIONAL ACADEMY OF SCIENCES
REVIEWS AND EVALUATIONS ON ILLNESS AND
SERVICE IN THE PERSIAN GULF WAR AND
POST-9/11 GLOBAL OPERATIONS THEATERS.
This section extends through October 1, 2015, the program
established by the Persian Gulf War Veterans Act
of 1998 (Pub. L. 105-277) under which VA obtains biennial
reports from the National Academy of Sciences
(NAS) on the health effects of exposures during the Gulf
War. It also extends the provisions of the Veterans
Program Enhancement Act of 1998 (Pub. L. 105-368),
imposing similar requirements for reports from NAS
through October 1, 2018. It directs NAS to provide a
separate report on health effects of exposures incurred in
service after September 11, 2001, in the Post-9/11
Global Theater of Operations.
Section 808. EXTENSION OF AN ANNUAL
REPORT ON EQUITABLE RELIEF.
This section extends VA’s obligation to provide Congress
an annual report regarding the disposition of each case recommended
to the Secretary for equitable relief during the preceding year through December 31, 2014