82 FR 12915 - Cost of Living Adjustments Effective December 1, 2016

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 82, Issue 43 (March 7, 2017)

As required by law, the Department of Veterans Affairs (VA) is hereby giving notice of cost-of-living adjustments (COLAs) 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, 2016, as announced by the Social Security Administration (SSA). SSA has announced an increase of 0.3%.

[Federal Register Volume 82, Number 43 (Tuesday, March 7, 2017)]
[Notices]
[Pages 12915-12916]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-04356]


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DEPARTMENT OF VETERANS AFFAIRS


Cost of Living Adjustments Effective December 1, 2016

AGENCY: Department of Veterans Affairs.

ACTION: Notice.

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SUMMARY: As required by law, the Department of Veterans Affairs (VA) is 
hereby giving notice of cost-of-living adjustments (COLAs) 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, 2016, as announced by the Social 
Security Administration (SSA). SSA has announced an increase of 0.3%.

DATES: The COLAs are effective December 1, 2016.

FOR FURTHER INFORMATION CONTACT: Daniel McCargar, Pension Analyst, 
Pension and Fiduciary Service, Veterans Benefits Administration, 
Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 
20420, (612-713-8911).

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. The increased rates and income limitations are also 
required to be published in the Federal Register.
    The Social Security Administration has announced that there will be 
a 0.3% COLA increase in Social Security benefits effective December 1, 
2016. 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 will be 
effective December 1, 2016:

Pension

Maximum Annual Rates

    (1) Veterans permanently and totally disabled (38 U.S.C. 1521):
Veteran with no dependents, $12,907
Veteran with one dependent, $16,902
For each additional dependent, $2,205
    (2) Veterans in need of aid and attendance (38 U.S.C. 1521):
Veteran with no dependents, $21,531
Veteran with one dependent, $25,525
For each additional dependent, $2,205
    (3) Veterans who are housebound (38 U.S.C. 1521):
Veteran with no dependents, $15,773
Veteran with one dependent, $19,770
For each additional dependent, $2,205
    (4) Two veterans married to one another, combined rates (38 U.S.C. 
1521):
Neither veteran in need of aid and attendance or housebound, $16,902
Either veteran in need of aid and attendance, $25,525
Both veterans in need of aid and attendance, $34,153
Either veteran housebound, $19,770
Both veterans housebound, $22,634
One veteran housebound and one veteran in need of aid and attendance, 
$28,385
For each dependent child, $2,205
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 increased by $2,932. (38 U.S.C. 1521(g))
    (5) 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, $8,656
Surviving spouse and one child in his or her custody, $11,330
For each additional child in his or her custody, $2,205
    (6) Surviving spouses in need of aid and attendance (38 U.S.C. 
1541):
Surviving spouse alone, $13,836
Surviving spouse with one child in custody, $16,506
Surviving Spouse of Spanish-American War veteran alone, $14,397
Surviving Spouse of Spanish-American War veteran with one child in 
custody, $17,006
For each additional child in his or her custody, $2,205
    (7) Surviving spouses who are housebound (38 U.S.C. 1541):
Surviving spouse alone, $10,580
Surviving spouse and one child in his or her custody, $13,249
For each additional child in his or her custody, $2,205
    (8) Surviving child alone (38 U.S.C. 1542), $2,205
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).

Parents' DIC

    DIC shall be paid monthly to parents of a deceased veteran in the 
following amounts (38 U.S.C. 1315):
    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 $622 reduced on the 
basis of the parent's annual income according to the following formula:
    For each $1 of annual income which is more than $0.00 but not more 
than $800, the $622 monthly rate shall not be reduced.
    For each $1 of annual income which is more than $800 but not more 
than $8,512, the monthly rate shall be reduced by $0.08.
    For each $1 of annual income which is more than $8,512 but not more 
than $8,513, the monthly rate shall be reduced by $0.04.
    For each $1 of annual income which is more than $8,513, the monthly 
rate will not be reduced.
    No Parents' DIC is payable under this table if annual income 
exceeds $14,680.
    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.
    One of two parents not living with spouse (38 U.S.C. 1315(c)): The 
rates in Table 3 apply to (1) two parents who are

[[Page 12916]]

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 $450 reduced on the basis of each parent's 
annual income, according to the following formula:
    For each $1 of annual income which is more than $0 but not more 
than $800, the $450 monthly rate shall not be reduced.
    For each $1 of annual income which is more than $800 but not more 
than $900, the monthly rate shall be reduced by $0.06.
    For each $1 of annual income which is more than $900 but not more 
than $1,100, the monthly rate shall be reduced by $0.07.
    For each $1 of annual income which is more than $1,100 but not more 
than $6,412, the monthly rate shall be reduced by $0.08.
    For each $1 of annual income more than $6,412 but not more than 
$6,413, the monthly rate shall be reduced by $0.04.
    For each $1 of annual income which is more than $6,413, the monthly 
rate shall not be reduced.
    No Parents' DIC is payable under this table if annual income 
exceeds $14,680.
    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 $423 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:
    For each $1 of annual income which is more than $0 but not more 
than $1,000, the $423 monthly rate shall not be reduced.
    For each $1 of annual income which is more than $1,000 but not more 
than $1,500, the monthly rate shall be reduced by $0.03.
    For each $1 of annual income which is more than $1,500 but not more 
than $1,900, the monthly rate shall be reduced by $0.04.
    For each $1 of annual income which is more than $1,900 but not more 
than $2,400, the monthly rate shall be reduced by $0.05.
    For each $1 of annual income which is more than $2,400 but not more 
than $2,900, the monthly rate shall be reduced by $0.06.
    For each $1 of annual income which is more than $2,900 but not more 
than $3,200, the monthly rate shall be reduced by $0.07.
    For each $1 of annual income which is more than $3,200 but not more 
than $7,087, the monthly rate shall be reduced by $0.08.
    For each $1 of annual income which is more than $7,087 but not more 
than $7,088, the monthly rate shall be reduced by $0.04.
    For each $1 of annual income which is more than $7,088, the monthly 
rate shall not be reduced.
    No Parents' DIC is payable if the annual income exceeds $19,733.
    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 Table 2 for one parent.
    Aid and attendance: The monthly rate of DIC payable to a parent 
under Tables 2 through 4 shall be increased by $337 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.
    Minimum rate: The monthly rate of DIC payable to any parent under 
Tables 2 through 4 shall not be less than $5.

Section 306 Pension Income Limitations

    Veteran or surviving spouse with no dependents, $14,680 (Pub. L. 
95-588, section 306(a))
    Veteran in need of aid and attendance with no dependents, $15,208 
(38 U.S.C. 1521(d) as in effect on December 31, 1978
    Veteran or surviving spouse with one or more dependents, $19,733 
(Pub. L. 95-588, section 306(a))
    Veteran in need of aid and attendance with one or more dependents, 
$20,260 (38 U.S.C. 1521(d) as in effect on December 31, 1978)
    Child (no entitled veteran or surviving spouse), $12,003 (Pub. L. 
95-588, section 306(a))
    Spouse income exclusion (38 CFR 3.262), $4,688 (Pub. L. 95-588, 
section 306(a)(2)(B))

Old-Law Pension Income Limitations

    Veteran or surviving spouse without dependents or an entitled 
child, $12,854 (Pub. L. 95-588, section 306(b))
    Veteran or surviving spouse with one or more dependents, $18,528 
(Pub. L. 95-588, section 306(b))
    The Secretary of Veterans Affairs, or designee, approved this 
document 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. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on February 16, 2017, for publication.

    Dated: February 16, 2017.
Jeffrey Martin,
Office Program Manager, Office of Regulation Policy & Management, 
Office of the Secretary, Department of Veterans Affairs.
[FR Doc. 2017-04356 Filed 3-6-17; 8:45 a.m.]
 BILLING CODE 8320-01-P