[Federal Register Volume 59, Number 171 (Tuesday, September 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21852]
[[Page Unknown]]
[Federal Register: September 6, 1994]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 3
RIN 2900-AG47
Exclusions From Income
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) has amended its
regulations concerning exclusions from income. The amendment implements
an opinion of VA's General Counsel that the portion of the cash
surrender value of a life insurance policy which represents a return of
premiums should not be considered income under VA's improved pension
program. The intended result is to ensure that countable income is
correctly computed when VA determines entitlement to improved pension.
EFFECTIVE DATE: This amendment is effective October 6, 1994.
FOR FURTHER INFORMATION CONTACT:
Steven Thornberry, Consultant, Regulations Staff, Compensation and
Pension Service, Veterans Benefits Administration, 810 Vermont Avenue,
NW., Washington, DC 20420, (202) 233-3005.
SUPPLEMENTARY INFORMATION: In the Federal Register of December 17,
1993, VA published a proposal to amend 38 CFR 3.272 to exclude from
income for improved pension purposes that portion of the proceeds from
the cash surrender of a life insurance policy which represents a return
of premiums (58 FR 65958-59). A technical correction extending the
comment and review period was published in the Federal Register of
January 4, 1994 (59 FR 278). Interested persons were invited to submit
written comments, suggestions, or objections to the proposal on or
before February 15, 1994. Since no comments were received, the proposed
amendment is adopted without change.
The Secretary hereby certifies that these regulatory amendments
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 numbers are
64.104 and 64.105.
List of Subjects in 38 CFR Part 3
Administrative practice and procedure, Claims, Handicapped, Health
care, Pensions, Veterans.
Approved: July 12, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set forth in the preamble, 38 CFR Part 3 is amended
to read as follows:
PART 3--ADJUDICATION
Subpart A--Pension, Compensation, 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. In Sec. 3.272, paragraph (q) and an authority citation are added
to read as follows:
Sec. 3.272 Exclusions from income.
* * * * *
(q) Cash surrender value of life insurance. That portion of
proceeds from the cash surrender of a life insurance policy which
represents a return of insurance premiums.
(Authority: 38 U.S.C. 501(a))
[FR Doc. 94-21852 Filed 9-2-94; 8:45 am]
BILLING CODE 8320-01-M
