[Federal Register Volume 63, Number 3 (Tuesday, January 6, 1998)]
[Rules and Regulations]
[Pages 412-413]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-179]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AI83


Minimum Income Annuity

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
adjudication regulations to provide for payment of the minimum income 
annuity, authorized by Public Law 92-425 as amended, to certain 
surviving spouses. This amendment is necessary to reflect statutory 
revisions contained in the National Defense Authorization Act for 
Fiscal Year 1997 that transfers the responsibility for paying this 
benefit from the Department of Defense (DoD) to VA.

EFFECTIVE DATE: January 6, 1998.

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) 273-7230.

SUPPLEMENTARY INFORMATION: Public Law 92-425, section 4, 86 Stat. 706, 
712 (1972) (10 U.S.C. 1448 note), provides for payment of a guaranteed 
minimum annual income (the so-called minimum-income-widow annuity, 
hereinafter referred to as the minimum income annuity) to certain 
surviving spouses of persons entitled to military retired or retainer 
pay at the time of their death. To be eligible, a person must: (1) Be 
the surviving spouse of a military retiree who died on or before March 
20, 1974; (2) be eligible for VA nonservice-connected death pension; 
(3) have annual income that is less than the maximum annual rate of 
pension under 38 U.S.C. 1541(b); and (4) be ineligible to receive an 
annuity under the Survivor Benefit Plan (10 U.S.C. 1447-1455).
    Section 638 of the National Defense Authorization Act for Fiscal 
Year 1997, Public Law 104-201, section 638, 110 Stat. 2422, 2581, 
transfers responsibility for the payment of the minimum income annuity 
to the Secretary of Veterans Affairs from DoD. However, DoD remains 
responsible for funding this benefit and determining basic eligibility. 
This transfer was effective on July 1, 1997, and applies with respect 
to payments of benefits for any month after June 1997.
    VA published an interim rule with a request for comments to 
implement section 638 of Pubic Law 104-201 in the Federal Register of 
July 3, 1997 (62 FR 35970-72). Interested persons were invited to 
submit written comments on or before September 2, 1997. No comments 
were received. The interim rule is now adopted with a technical change 
noting that, as required by statute, in certain instances, the 
Department of Transportation will determine whether an individual meets 
the criteria of section 4(a) of Pub. L. 92-425 as amended.
    The Secretary hereby certifies that this regulatory amendment 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. The reason for this certification is that these 
amendments would not directly affect any small entities. Only VA 
beneficiaries could be directly affected. Therefore, pursuant to 5 
U.S.C. 605(b), these amendments are exempt from the initial and final 
regulatory flexibility analysis requirements of sections 603 and 604.

    The Catalog of Federal Domestic Assistance program number is 
64.105.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedure, Claims, Disability benefits, 
Health care, Pensions, Veterans, Vietnam.

    Approved: December 23, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, the amendment to 38 CFR 
part 3 published July 3, 1997 (62 FR 35970) is adopted as final with 
the following changes:

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 3.811 is revised to read as follows:


Sec. 3.811  Minimum income annuity.

    (a) Eligibility. The minimum income annuity authorized by Public 
Law 92-425 as amended is payable to a person:
    (1) Whom the Department of Defense or the Department of 
Transportation has determined meets the eligibility criteria of section 
4(a) of Pub. L. 92-425 as amended other than section 4(a)(1) and (2); 
and
    (2) Who is eligible for pension under subchapter III of chapter 15 
of title 38, United States Code, or section 306 of the Veterans' and 
Survivors' Pension Improvement Act of 1978; and
    (3) Whose annual income, as determined in establishing pension 
eligibility, is less than the maximum annual rate of pension in effect 
under 38 U.S.C. 1541(b).
    (b) Computation of the minimum income annuity payment--(1) Annual 
income. VA will determine a beneficiary's annual income for minimum 
income annuity purposes under the provisions of Secs. 3.271 and 3.272 
of this part for beneficiaries receiving improved pension, or under 
Secs. 3.260 through 3.262 of this part for beneficiaries receiving old 
law or section 306 pensions, except that the amount of the minimum 
income annuity will be excluded from the calculation.
    (2) VA will determine the minimum income annuity payment for 
beneficiaries entitled to improved pension by subtracting the annual 
income for minimum income annuity purposes from the maximum annual 
pension rate under 38 U.S.C. 1541(b).
    (3) VA will determine the minimum income annuity payment for 
beneficiaries receiving old law and section 306 pensions by reducing 
the maximum annual pension rate under 38 U.S.C. 1541(b) by the amount 
of the Retired Servicemen's Family Protection Plan benefit, if any, 
that the beneficiary receives and subtracting from that amount the 
annual income for minimum income annuity purposes.
    (4) VA will recompute the monthly minimum income annuity payment 
whenever there is a change to the maximum annual rate of pension in 
effect under 38 U.S.C. 1541(b), and whenever there is a change in the 
beneficiary's income.
    (c) An individual otherwise eligible for pension under subchapter 
III of chapter 15 of title 38, United States Code, or section 306 of 
the Veterans' and Survivors' Pension Improvement Act of 1978 shall be 
considered eligible for pension for purposes of determining eligibility 
for the minimum income annuity even though as a result of adding the 
amount of the minimum

[[Page 413]]

income annuity authorized under Public Law 92-425 as amended to any 
other countable income, no amount of pension is due.
    (d) Termination. Other than as provided in paragraph (c) of this 
section, if a beneficiary receiving the minimum income annuity becomes 
ineligible for pension, VA will terminate the minimum income annuity 
effective the same date.

(Authority: Pub. L. 92-425 as amended (10 U.S.C. 1448 note); Sec. 
638, Pub. L. 104-201, 110 Stat. 2581)

[FR Doc. 98-179 Filed 1-5-98; 8:45 am]
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