Compensation vs. Pension

I spoke to an Elder Law attorney today. She indicated that my step-father's current VA income is compensation (an entitlement) and that if I want to apply for A&A as a pension, it would stop his compensation pay - i.e. can't have both. Is this true?

This is correct. The VA will pay the benefit which is greater for the veteran. Pension is based on income and compensation is based on the severity of the disability related to the service. There is an ‘aid & attendance’ benefit under the compensation program. It is usually referred to as SMC (special monthly compensation). If a veteran is rated at 70% or higher service connected disabled, the VA will pay the entire cost of the assisted care facility and/or nursing home charges.

I thought I read somewhere that you could receive BOTH.

I think what you read was the recent changes in the law that will allow a veteran retired from the military to receive both compensation benefits and his retirement benefit. It use to be that one would off-set the other dollar per dollar. Military retirement is taxable income and VA service-connected compensation is not. A veteran could elect a portion of his benefit under the VA and receive tax free benefits.

Also, she indicated there are two types of A&A, one raises the compensation, the other replaces compensation - this is confusing...

I think this is addressed in the above response.

Let us know if you have additional questions.

The Veteran Advocate