[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR3.714]

[Page 309-311]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 3--ADJUDICATION--Table of Contents
 
     Subpart A--Pension, Compensation, and Dependency and Indemnity 
                              Compensation
 
Sec. 3.714  Improved pension elections--public assistance beneficiaries.

    (a) Definitions. The following definitions are applicable to this 
section.
    (1) Pensioner. This means a person who was entitled to section 306 
or old-law pension, or a dependent of such a person for the purposes of 
chapter 15 of title 38, United States Code as in effect on December 31, 
1978.
    (2) Public assistance. This means payments under the following 
titles of the Social Security Act:
    (i) Title I (Grants to States for Old Age Assistance and Medical 
Assistance to the Aged).
    (ii) Title X (Grants to States for Aid to the Blind).
    (iii) Title XIV (Grants to States for Aid to the Permanently and 
Totally Disabled).
    (iv) Part A of title IV (Aid to Families with Dependent Children).
    (v) Title XVI (Supplemental Security Income for the Aged, Blind and 
Disabled).
    (3) Medicaid. This means a State plan for medical assistance under 
title XIX of the Social Security Act.
    (4) Informed election. The term ``informed election'' means an 
election of improved pension (or a reaffirmation of a previous election 
of improved pension) after the Department of Veterans Affairs has 
complied with the requirements of paragraph (e) of this section.
    (b) General. In some States only a person in receipt of public 
assistance is eligible for medicaid. When this is the case the following 
applies effective January 1, 1979:

[[Page 310]]

    (1) A pensioner may not be required to elect improved pension to 
receive, or to continue to receive, public assistance; or
    (2) A pensioner may not be denied (or suffer a reduction in the 
amount of) public assistance by reason of failure or refusal to elect 
improved pension.
    (c) Public assistance deemed to continue. Public assistance (or a 
supplementary payment under Pub. L. 93-233, sec. 13(c)) payable to a 
pensioner may have been terminated because the pensioner's income 
increased as a result of electing improved pension. In this instance 
public assistance (or a supplementary payment under Pub. L. 93-233, sec. 
13(c)) shall be deemed to have remained payable to a pensioner for each 
month after December 1978 when the following conditons are met:
    (1) The pensioner was in receipt of pension for the month of 
December 1978; and
    (2) The pensioner was in receipt of public assistance (or a 
supplementary payment under Pub. L. 93-233, sec. 13(c)) prior to June 
17, 1980, and for the month of December 1978, and
    (3) The pensioner's public assistance payments (or a supplementary 
payment under Pub. L. 93-233, sec. 13(c)) were discontinued because of 
an increase in income resulting from an election of improved pension.
    (d) End of the deemed period of entitlement to public assistance. 
The deemed period of entitlement to public assistance (or a 
supplementary payment under Pub. L. 93-233, sec. 13(c)) ends the first 
calendar month that begins more than 10 days after a pensioner makes an 
informed election of improved pension. (If the pensioner is unable to 
make an informed election the informed election may be made by a member 
of the pensioner's family.) A pensioner who fails to disaffirm a 
previously made election of improved pension within the time limits set 
forth in paragraph (e) of this section shall be deemed to have 
reaffirmed the previous election. This will also end the deemed period 
of entitlement to public assistance.
    (e) Notice of right to make informed election or disaffirm election 
previously made. The Department of Veterans Affairs shall send a written 
notice to each pensioner to whom paragraph (b) of this section applies 
and who is eligible to elect or who has elected improved pension. The 
notice shall be in clear and understandable language. It shall include 
the following:
    (1) A description of the consequences to the pensioner (and the 
pensioner's family if applicable) of losing medicaid eligibility because 
of an increase in income resulting from electing improved pension; and
    (2) A description of the provisions of paragraph (b) of this 
section; and
    (3) In the case of a pensioner who has previously elected improved 
pension, a form for the purpose of enabling the pensioner to disaffirm 
the previous election of improved pensions; and
    (4) The following provisons of Pub. L. 96-272, sec. 310(b)(2)(B):
    (i) That a pensioner has 90 days from the date the notice is mailed 
to the pensioner to disaffirm a previous electon by completing the 
disaffirmation form and mailing it to the Department of Veterans 
Affairs.
    (ii) That a pensioner who disaffirms a previous election shall 
receive, beginning the calendar month after the calendar month in which 
the Department of Veterans Affairs receives the disaffirmation, the 
amount of pension payable if improved pension had not been elected.
    (iii) That a pensioner who disaffirms a previous election may again 
elect improved pension but without a right to disaffirm the subsequent 
election.
    (iv) That a pensioner who disaffirms an election of improved pension 
shall not be indebted to the United States for the period in which the 
pensioner received improved pension.


(Authority: Pub. L. 96-272, sec. 310; 94 Stat. 500)

    (f) Notification to the Department of Health and Human Services. The 
Department of Veterans Affairs shall promptly furnish the Department of 
Health and Human Services the following information:
    (1) The name and identifying information of each pensioner who 
disaffirms his or her election of improved pension.
    (2) The name and identifying information of each pensioner who fails 
to

[[Page 311]]

disaffirm and election of improved pension within the 90-day period 
described in paragraph (e)(4)(i) of this section.
    (3) The name and identifying information of each pensioner who after 
disaffirming his or her election of improved pension, subsequently 
reelected improved pension.

(Authority: 38 U.S.C. 501)

[46 FR 11661, Feb. 10, 1981]