[Federal Register Volume 88, Number 4 (Friday, January 6, 2023)]
[Notices]
[Pages 1109-1111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00070]


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DEPARTMENT OF VETERANS AFFAIRS


Veterans and Survivors Pension and Parents' Dependency and 
Indemnity Compensation Cost of Living Adjustments Effective December 1, 
2022

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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SUMMARY: As required by law, VA is hereby giving notice of Cost-of-
Living Adjustments (COLA) in certain benefit rates and income 
limitations. These COLAs affect the Pension and Parents' Dependency and 
Indemnity Compensation (DIC) programs. The rate of the adjustment is 
tied to the increase in Social Security benefits effective December 1, 
2022, as announced by the Social Security Administration (SSA). SSA has 
announced an increase of 8.7%.

DATES: The Cost-of-Living Adjustments became effective December 1, 
2022, as required by 38 U.S.C. 5312.

FOR FURTHER INFORMATION CONTACT: Eric Baltimore, Program Analyst, 
Pension and Fiduciary Service, Veterans Benefits Administration, 
Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 
20420, 202-632-8863. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: Under the provisions of 38 U.S.C. 5312 and 
section 306 of Public Law 95-588, VA is required to increase the 
benefit rates and income limitations in the Pension and Parents' DIC 
programs by the same percentage, and effective the same date, as 
increases in the benefit amounts payable under Title II of the Social 
Security Act. VA is required to publish the increased rates and income 
limitations in the Federal Register.
    SSA announced an 8.7% COLA increase in Social Security benefits 
effective December 1, 2022. Therefore, applying the same percentage and 
rounding in accordance with 38 CFR 3.29, the following increased rates 
and income limitations for the VA Pension and Parents' DIC programs 
became effective December 1, 2022:

Pension

A. Maximum Annual Rates--Veterans

    (1) Veterans permanently and totally disabled (38 U.S.C. 1521):
    Veteran with no dependents, $16,037.
    Veteran with one dependent, $21,001.
    For each additional dependent, $2,743.
    (2) Veterans in need of aid and attendance (38 U.S.C. 1521):
    Veteran with no dependents, $26,752.

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    Veteran with one dependent, $31,714.
    For each additional dependent, $2,743.
    (3) Veterans who are housebound (38 U.S.C. 1521):
    Veteran with no dependents, $19,598.
    Veteran with one dependent, $24,562.
    For each additional dependent, $2,743.
    (4) Two Veterans married to one another, combined rates (38 U.S.C. 
1521):
    Neither Veteran in need of aid and attendance or housebound, 
$21,001.
    Either Veteran in need of aid and attendance, $31,714.
    Both Veterans in need of aid and attendance, $42,433.
    Either Veteran housebound, $24,562.
    Both Veterans housebound, $28,121.
    One Veteran housebound and one Veteran in need of aid and 
attendance, $35,266.
    For each dependent child, $2,743.
    (5) Net worth limit under 38 CFR 3.274(a):
    For purposes of entitlement to VA pension, the net worth limit 
effective December 1, 2022, is $150,538.
    (6) Monthly Penalty Rate under 38 CFR 3.276(e)(1):
    The monthly penalty rate is $2,642.
    Mexican border period and World War I Veterans: The applicable 
maximum annual rate payable to a Mexican border period or World War I 
Veteran under this table shall be the applicable rate under paragraph 
(1)-(4), increased by $3,645. (38 U.S.C. 1521(g)).

B. Maximum Annual Rates--Survivor Beneficiaries

    (1) Surviving spouse alone and with a child or children of the 
deceased Veteran in custody of the surviving spouse (38 U.S.C. 1541):
    Surviving spouse alone, $10,757.
    Surviving spouse and one child in his or her custody, $14,078.
    For each additional child in his or her custody, $2,743.
    (2) Surviving spouses in need of aid and attendance (38 U.S.C. 
1541, 1536):
    Surviving spouse alone, $17,192.
    Surviving spouse with one child in custody, $20,509.
    Surviving Spouse of Spanish-American War Veteran alone, $17,888.
    Surviving Spouse of Spanish-American War Veteran with one child in 
custody, $21,130.
    For each additional child in his or her custody, $2,743.
    (3) Surviving spouses who are housebound (38 U.S.C. 1541):
    Surviving spouse alone, $13,147.
    Surviving spouse and one child in his or her custody, $16,462.
    For each additional child in his or her custody, $2,743.
    (4) Surviving child alone (38 U.S.C. 1542), $2,743.
    (5) Net worth limit under 38 CFR 3.274(a):
    For purposes of entitlement to VA pension, the net worth limit 
effective December 1, 2022, is $150,538.
    (6) Monthly Penalty Rate under 38 CFR 3.276(e)(1):
    The monthly penalty rate effective December 1, 2022, is $2,642.
    Reduction for income: The rate payable is the applicable maximum 
rate minus the countable annual income of the eligible person. (38 
U.S.C. 1521, 1541 and 1542).

C. Section 306 Pension Income Limitations

    (1) Veteran or surviving spouse with no dependents, $18,240 (Pub. 
L. 95-588, section 306(a)).
    (2) Veteran in need of aid and attendance with no dependents, 
$18,897 (38 U.S.C. 1521(d) as in effect on December 31, 1978).
    (3) Veteran or surviving spouse with one or more dependents, 
$24,518 (Pub. L. 95-588, section 306(a)).
    (4) Veteran in need of aid and attendance with one or more 
dependents, $25,172 (38 U.S.C. 1521(d) as in effect on December 31, 
1978).
    (5) Child (no entitled Veteran or surviving spouse), $14,915 (Pub. 
L. 95-588, section 306(a)).
    (6) Spouse income exclusion (38 CFR 3.262), $5,826 (Pub. L. 95-588, 
section 306(a)(2)(B)).

D. Old-Law Pension Income Limitations

    (1) Veteran or surviving spouse without dependents or an entitled 
child, $15,973 (Pub. L. 95-588, section 306(b)).
    (2) Veteran or surviving spouse with one or more dependents, 
$23,020 (Pub. L. 95-588, section 306(b)).

Parents' DIC

    A. DIC shall be paid monthly to parents of a deceased Veteran in 
the following amounts (38 U.S.C. 1315):
    (1) One parent (38 U.S.C. 1315(b)): If there is only one parent, 
the monthly rate of DIC paid to such parent shall be $774, reduced on 
the basis of the parent's annual income according to the following 
formula:
    (a) For each $1 of annual income which is more than $0.00 but not 
more than $800, the $774 monthly rate shall not be reduced.
    (b) For each $1 of annual income which is more than $800 but not 
more than $10,413, the monthly rate shall be reduced by $0.08.
    (c) For each $1 of annual income which is more than $10,413, the 
monthly rate will not be reduced.
    (d) No Parents' DIC is payable under this table if annual income 
exceeds $18,240.
    (2) One parent who has remarried: If there is only one parent and 
the parent has remarried and is living with the parent's spouse, DIC 
shall be paid under 38 U.S.C. 1315(b) or under 38 U.S.C. 1315(d), 
whichever shall result in the greater benefit being paid to the 
Veteran's parent. In the case of remarriage, the total combined annual 
income of the parent and the parent's spouse shall be counted in 
determining the monthly rate of DIC.
    (3) One of two parents not living with spouse (38 U.S.C. 1315(c)): 
The rates below apply to (1) two parents who are not living together, 
or (2) an unmarried parent when both parents are living and the other 
parent has remarried. The monthly rate of DIC paid to each such parent 
shall be $561 reduced on the basis of each parent's annual income, 
according to the following formula:
    (a) For each $1 of annual income which is more than $0 but not more 
than $800, the $561 monthly rate shall not be reduced.
    (b) For each $1 of annual income which is more than $800 but not 
more than $7,750, the monthly rate shall be reduced by $0.08.
    (c) For each $1 of annual income which is more than $7,750, the 
monthly rate shall not be reduced.
    (d) No Parents' DIC is payable under this table if annual income 
exceeds $18,240.
    (4) One of two parents living with spouse or other parent (38 
U.S.C. 1315(d)): The rates below apply to each parent living with 
another parent; and each remarried parent, when both parents are alive. 
The monthly rate of DIC paid to such parents will be $529 reduced on 
the basis of the combined annual income of the two parents living 
together or the remarried parent or parents and spouse or spouses, as 
computed under the following formula:
    (a) For each $1 of annual income which is more than $0 but not more 
than $1,000, the $529 monthly rate shall not be reduced.
    (b) For each $1 of annual income which is more than $1,000 but not 
more than $1,100, the monthly rate shall be reduced by $0.03.
    (c) For each $1 of annual income which is more than $1,100 but not 
more than $1,200, the monthly rate shall be reduced by $0.04.
    (d) For each $1 of annual income which is more than $1,200 but not 
more than $1,300, the monthly rate shall be reduced by $0.05.
    (e) For each $1 of annual income which is more than $1,300 but not 
more

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than $1,600, the monthly rate shall be reduced by $0.06.
    (f) For each $1 of annual income which is more than $1,600 but not 
more than $1,800, the monthly rate shall be reduced by $0.07.
    (g) For each $1 of annual income which is more than $1,800 but not 
more than $7,775, the monthly rate shall be reduced by $0.08.
    (h) For each $1 of annual income which is more than $7,775, the 
monthly rate shall not be reduced.
    B. No Parents' DIC is payable if the annual income exceeds $24,518.
    C. These rates are also applicable in the case of one surviving 
parent who has remarried, computed on the basis of the combined income 
of the parent and spouse, if this would be a greater benefit than that 
specified in the rates for 38 U.S.C. 1315(b) for one parent.
    D. Aid and attendance: The monthly rate of DIC payable to a parent 
per the guidelines above shall be increased by $420 if such parent is 
(1) a patient in a nursing home, or (2) helpless or blind, or so nearly 
helpless or blind as to need or require the regular aid and attendance 
of another person.
    E. Minimum rate: The monthly rate of DIC payable to any parent 
shall not be less than $5.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on December 30, 2022, and authorized the undersigned to sign 
and submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Luvenia Potts,
Regulation Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.
[FR Doc. 2023-00070 Filed 1-5-23; 8:45 am]
BILLING CODE 8320-01-P