The Department of Veterans Affairs (VA) constantly seeks to support veterans by providing them with financial assistance based on their eligibility.
These financial assistance programs include VA compensation and pension. Most veterans tend to confuse the distinct requirements of these two financial benefits.
Understanding the difference between VA compensation and pension can help file your claim and confirm your eligibility.
Understanding the difference between compensation and pension is important, and so is looking for assistance filing VA disability claims.
VA Pension
Some veterans may ask, “Is VA considered a pension?” Or “Is VA disability considered a pension?”
To ensure that veterans receive adequate finances to support their medical necessities, the VA implemented a VA pension—otherwise known as a Veterans Disability Pension. It is a monthly financial benefit available to veterans who meet the following eligibility criteria:
- Receive an honorable discharge
- They are at least 65 years old
- Has a permanent and total disability
- Has a low or unsustainable income
The VA will need to confirm your income—including other benefits such as Social Security payments and retirement funds—and some of your medical expenses. By calculating your total earnings and determining the number of dependents, the VA can gauge your Maximum Annual Pension Rate — or MAPR.
If you are qualified for a VA pension, chances are you are also qualified for an Aid and Attendance benefit. For the VA to grant you this benefit, you need to meet at least one requirement:
- You require another person for your daily tasks (e.g., bathing, eating, or getting dressed);
- Your injuries render you immobile, spending most of your time in bed.
- You are a patient in a nursing home, which can be a result of a mental or physical disability.
- Limited eyesight: Even with the use of glasses or contact lenses, your vision still appears blurry.
In some cases, some veterans can still receive a pension, but they may not be eligible for an Aid and Attendance pension if they do not meet at least one of the specified requirements.
VA Compensation
VA disability compensation is another form of financial assistance from the VA, where veterans receive a monthly compensation based on their service-connected disability.
The service member’s time in the military can either directly cause these disabilities or aggravate existing ones that have developed over time.
To receive this benefit, the veteran must provide all medical evidence, or statements, that confirm that their injuries or disabilities are the direct result of their active service.
Difference between VA compensation and pension
There are key differences between VA compensation and pension:
Service connection
Understand that the VA provides financial assistance to cover all your disability-related expenses during your active duty. Veterans receive a VA pension not because of their injuries or illnesses, but because of their age and income.
Income and age requirements
Veterans can be eligible for a VA pension if they have a low income and are at least 65 years old. Meanwhile, veterans can continue to earn a decent income while receiving VA disability compensation, provided they can demonstrate that their disability is service-related and age-independent.
Payment Rate
The payment rate for a VA pension varies depending on whether you have a dependent. Individuals who qualify for an Aid and Attendance pension and have no dependents can receive a maximum of $27,609 per year ($2,300.75 per month), while those who have at least one qualifying dependent can receive at least $32,729 per year ($2,727.42 per month). These rates can also change depending on your net worth.
Meanwhile, the highest payment rate for VA disability compensation is $3,877.22 with no dependents, $4,098.87 per month with 1 child and spouse, and $4,433.39 with 1 child, a spouse, and two parents—if the veteran receives a 100% disability rating.
Am I eligible for both VA disability compensation and pension?
The VA confirmed that a veteran cannot get a VA pension and disability compensation at once; however, if you applied for both and the VA confirms you are eligible for both VA compensation and pension exam, they will pay you whichever benefit is higher.
Veterans with financial needs receive VA pensions, while those with documented medical conditions related to their active service receive VA disability compensation.
Is there an income limit for a VA pension?
So, how does the VA calculate your MAPR?
The amount of your VA pension rates depends on whether you have a dependent.
Veterans with no dependents and who do not qualify for an Aid and Attendance benefit will have an annual pension of $16,551, minus the difference from their other income (e.g., Social Security benefits).
If, for instance, your Social Security benefits per annum are worth $10,000, then you will receive a VA pension of $6,551, divided monthly.
If you are eligible for Aid and Attendance benefits with no dependents, then the MAPR amount is $27,609.
If you have multiple dependents, VA non-service-connected pension rates are higher.
Differences between service-connected and non-service-connected disabilities
Non-service-connected disabilities are for veterans with health issues that are unrelated to their active service but have a significant impact on their daily lives; service-connected disabilities are injuries or medical conditions that a veteran receives during their active duty.
Service-connected compensations are considered VA disability compensation, while non-service-connected disabilities are associated more with VA pensions. Retirement plans—or a Navy retirement pension—often incorporate it, as it caters to veterans within a specific age range.
Looking for more information on how to get your VA claim or VA pension approved? Book a free strategy call and contact our experienced veteran coaches directly. You may also visit our VA claims assistance page for more information.