[Federal Register Volume 63, Number 193 (Tuesday, October 6, 1998)]
[Rules and Regulations]
[Pages 53593-53596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26781]
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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]
BILLING CODE 8320-01-P
