,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #bcda  ,,in ,,the ,,house ,,of  
,,representatives  ,june #ab1 #bjac ,mr4
 ,rooney 7for himself1 ,mr4 ,bilirakis1 
,mr4 ,barber1 and ,mr4 ,schrader7       
introduced the following bill2 which was
 referred to the ,committee on          
,veterans' ,affairs  ,a ,,bill  ,to     
amend title #ch1 ,united ,states ,code1 
to require the ,secretary of ,veterans  
,affairs to consider the resources of   
individuals applying for pension that   
were recently disposed of by the        
individuals for less than fair market   
value when determining the eligibility  
of such individuals for such pension1   
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,veterans ,pension ,protection ,act4    
#b4 ,consideration by ,secretary of     
,veterans ,affairs of resources disposed
 of for less than fair market value by  
individuals applying for pension  7a7   
,veterans ,section #aebb of title #ch1  
,united ,states ,code1 is amended--     

7#a7 in subsection 7a7--  7,a7 by       
inserting 7#a7 before ,the ,secretary2  
and  7,b7 by adding at the end the      
following new paragraph3  7#b7 7,a7 ,if 
a veteran otherwise eligible for payment
 of pension under section #aeac or #aeba
 of this title or the spouse of such    
veteran disposes of covered resources   
for less than fair market value on or   
after the look-back date described in   
subparagraph 7,c77i71 the ,secretary    
shall deny or discontinue the payment of
 pension to such veteran under section  
#aeac or #aeba of this title1 as the    
case may be1 for months during the      
period beginning on the date described  
in subparagraph 7,d7 and equal to the   
number of months calculated as provided 
in subparagraph 7,e74  7,b7 7i7 ,for    
purposes of this paragraph1 a covered   
resource is any resource that was a part
 of the corpus of the estate of the     
veteran or1 if the veteran has a spouse1
 the corpus of the estates of the       
veteran and of the veteran's spouse1    

that the ,secretary considers that under
 all the circumstances1 if the veteran  
or spouse had not disposed of such      
resource1 it would be reasonable that   
the resource 7or some portion of the    
resource7 be consumed for the veteran's 
maintenance4  7ii7 ,for purposes of this
 paragraph1 the ,secretary may consider1
 in accordance with regulations the     
,secretary shall prescribe1 a transfer  
of an asset 7including a transfer of an 
asset to an annuity1 trust1 or other    
financial instrument or investment7 a   
disposal of a covered resource for less 
than fair market value if such transfer 
reduces the amount in the corpus of the 
estate of the veteran or1 if the veteran
 has a spouse1 the corpus of the estates
 of the veteran and of the veteran's    
spouse1 that the ,secretary considers1  
under all the circumstances1 would be   
reasonable to be consumed for the       
veteran's maintenance4  7,c7 7i7 ,the   
look-back date described in this clause 
is a date that is #cf months before the 

date described in clause 7ii74  7ii7    
,the date described in this clause is   
the date on which the veteran applies   
for pension under section #aeac or #aeba
 of this title or1 if later1 the date on
 which the veteran 7or the spouse of the
 veteran7 disposes of covered resources 
for less than fair market value4  7,d7  
,the date described in this subparagraph
 is the first day of the first month in 
or after which covered resources were   
disposed of for less than fair market   
value and which does not occur in any   
other period of ineligibility under this
 paragraph4  7,e7 ,the number of months 
calculated under this subparagraph shall
 be equal to--  7i7 the total1          
cumulative uncompensated value of all   
covered resources so disposed of by the 
veteran 7or the spouse of the veteran7  
on or after the look-back date described
 in subparagraph 7,c77i72 divided by    
7ii7 the maximum amount of monthly      
pension that is payable to a veteran    
under section #aeac or #aeba of this    

title1 including the maximum amount of  
increased pension payable under such    
sections on account of family members1  
but not including any amount of pension 
payable under such sections because a   
veteran is in need of regular aid and   
attendance or is permanently housebound1
  rounded1 in the case of any fraction1 
to the nearest whole number1 but shall  
not in any case exceed #cf months4  2   
7#b7 in subsection 7b7--  7,a7 by       
inserting 7#a7 before ,the ,secretary2  
and  7,b7 by adding at the end the      
following new paragraph3  7#b7 7,a7 ,if 
a veteran otherwise eligible for payment
 of increased pension under subsection  
7c71 7d71 7e71 or 7f7 of section #aeba  
of this title on account of a child1 the
 spouse of the veteran1 or the child    
disposes of covered resources for less  
than fair market value on or after the  
look-back date described in subparagraph
 7,c77i71 the ,secretary shall deny or  
discontinue payment of such increased   
pension for months during the period    

beginning on the date described in      
subparagraph 7,d7 and equal to the      
number of months calculated as provided 
in subparagraph 7,e74  7,b7 7i7 ,for    
purposes of this paragraph1 a covered   
resource is any resource that was a part
 of the corpus of the estate of the     
child that the ,secretary considers that
 under all the circumstances1 if the    
veteran1 the spouse of the veteran1 or  
the child had not disposed of such      
resource1 it would be reasonable that   
the resource 7or some portion of the    
resource7 be consumed for the child's   
maintenance4  7ii7 ,for purposes of this
 paragraph1 the ,secretary may consider1
 in accordance with regulations the     
,secretary shall prescribe1 a transfer  
of an asset 7including a transfer of an 
asset to an annuity1 trust1 or other    
financial instrument or investment7 a   
disposal of a covered resource for less 
than fair market value if such transfer 
reduces the amount in the corpus of the 
estate of the child that the ,secretary 

considers1 under all the circumstances1 
would be reasonable to be consumed for  
the child's maintenance4  7,c7 7i7 ,the 
look-back date described in this clause 
is a date that is #cf months before the 
date described in clause 7ii74  7ii7    
,the date described in this clause is   
the date on which the veteran applies   
for payment of increased pension under  
subsection 7c71 7d71 7e71 or 7f7 of     
section #aeba of this title on account  
of a child or1 if later1 the date on    
which the veteran1 the spouse of the    
veteran1 or the child disposes of       
covered resources for less than fair    
market value4  7,d7 ,the date described 
in this subparagraph is the first day of
 the first month in or after which      
covered resources were disposed of for  
less than fair market value and which   
does not occur in any other period of   
ineligibility under this paragraph4     
7,e7 ,the number of months calculated   
under this subparagraph shall be equal  
to--  7i7 the total1 cumulative         

uncompensated value of all covered      
resources so disposed of by the veteran1
 the spouse of the veteran1 or the child
 on or after the look-back date         
described in subparagraph 7,c77i72      
divided by  7ii7 the maximum amount of  
increased monthly pension that is       
payable to a veteran under subsection   
7c71 7d71 7e71 or 7f7 of section #aeba  
of this title on account of a child1    
rounded1 in the case of any fraction1 to
 the nearest whole number1 but shall not
 in any case exceed #cf months4  2 and  
7#c7 by adding at the end the following 
new subsection3  7c7 7#a7 ,the          
,secretary shall not deny or discontinue
 payment of pension under section #aeac 
or #aeba of this title or payment of    
increased pension under subsection 7c71 
7d71 7e71 or 7f7 of section #aeba of    
this title on account of a child by     
reason of the application of subsection 
7a77#b7 or 7b77#b7 of this section to   
the disposal of resources by an         
individual to the extent that--  7,a7 a 

satisfactory showing is made to the     
,secretary 7in accordance with          
regulations promulgated by the          
,secretary7 that all resources disposed 
of for less than fair market value have 
been returned to the individual who     
disposed of the resources2 or  7,b7 the 
,secretary determines1 under procedures 
established by the ,secretary1 that the 
denial or discontinuance of payment     
would work an undue hardship as         
determined on the basis of criteria     
established by the ,secretary4  7#b7 ,at
 the time a veteran applies for pension 
under section #aeac or #aeba of this    
title or increased pension under        
subsection 7c71 7d71 7e71 or 7f7 of     
section #aeba of this title on account  
of a child1 and at such other times as  
the ,secretary considers appropriate1   
the ,secretary shall--  7,a7 inform such
 veteran of the provisions of           
subsections 7a77#b7 and 7b77#b7         
providing for a period of ineligibility 
for payment of pension under such       

sections for individuals who make       
certain dispositions of resources for   
less than fair market value2 and  7,b7  
obtain from such veteran information    
which may be used in determining whether
 or not a period of ineligibility for   
such payments would be required by      
reason of such subsections4  4  7b7     
,surviving spouses and children ,section
 #aedc of such title is amended--  7#a7 
in subsection 7a7--  7,a7 by            
redesignating paragraph 7#b7 as         
paragraph 7#c72  7,b7 by inserting after
 paragraph 7#a7 the following new       
paragraph 7#b73  7#b7 7,a7 ,if a        
surviving spouse otherwise eligible for 
payment of pension under section #aeda  
of this title disposes of covered       
resources for less than fair market     
value on or after the look-back date    
described in subparagraph 7,c77i71 the  
,secretary shall deny or discontinue the
 payment of pension to such surviving   
spouse under section #aeda of this title
 for months during the period beginning 

on the date described in subparagraph   
7,d7 and equal to the number of months  
calculated as provided in subparagraph  
7,e74  7,b7 7i7 ,for purposes of this   
paragraph1 a covered resource is any    
resource that was a part of the corpus  
of the estate of the surviving spouse   
that the ,secretary considers that under
 all the circumstances1 if the surviving
 spouse had not disposed of such        
resource1 it would be reasonable that   
the resource 7or some portion of the    
resource7 be consumed for the surviving 
spouse's maintenance4  7ii7 ,for        
purposes of this paragraph1 the         
,secretary may consider1 in accordance  
with regulations the ,secretary shall   
prescribe1 a transfer of an asset       
7including a transfer of an asset to an 
annuity1 trust1 or other financial      
instrument or investment7 a disposal of 
a covered resource for less than fair   
market value if such transfer reduces   
the amount in the corpus of the estate  
of the surviving spouse that the        

,secretary considers1 under all the     
circumstances1 would be reasonable to be
 consumed for the surviving spouse's    
maintenance4  7,c7 7i7 ,the look-back   
date described in this clause is a date 
that is #cf months before the date      
described in clause 7ii74  7ii7 ,the    
date described in this clause is the    
date on which the surviving spouse      
applies for pension under section #aeda 
of this title or1 if later1 the date on 
which the surviving spouse disposes of  
covered resources for less than fair    
market value4  7,d7 ,the date described 
in this subparagraph is the first day of
 the first month in or after which      
covered resources were disposed of for  
less than fair market value and which   
does not occur in any other period of   
ineligibility under this paragraph4     
7,e7 ,the number of months calculated   
under this subparagraph shall be equal  
to--  7i7 the total1 cumulative         
uncompensated value of all covered      
resources so disposed of by the         

surviving spouse on or after the        
look-back date described in subparagraph
 7,c77i72 divided by  7ii7 the maximum  
amount of monthly pension that is       
payable to a surviving spouse under     
section #aeda of this title1 including  
the maximum amount of increased pension 
payable under such section on account of
 a child1 but not including any amount  
of pension payable under such section   
because a surviving spouse is in need of
 regular aid and attendance or is       
permanently housebound1  rounded1 in the
 case of any fraction1 to the nearest   
whole number1 but shall not in any case 
exceed #cf months4  7,f7 ,in the case of
 a transfer by the surviving spouse     
during the veteran's lifetime that      
resulted in a period of ineligibility   
for the veteran under section #aebb of  
this title1 the ,secretary shall apply  
to the surviving spouse any remaining   
ineligibility for that period4  2 and   
7,c7 by adding at the end the following 
new paragraph3  7#d7 7,a7 ,if a         

surviving spouse otherwise eligible for 
payment of increased pension under      
subsection 7c71 7d71 or 7e7 of section  
#aeda of this title on account of a     
child or the child disposes of covered  
resources for less than fair market     
value on or after the look-back date    
described in subparagraph 7,c77i71 the  
,secretary shall deny or discontinue    
payment of such increased pension for   
months during the period beginning on   
the date described in subparagraph 7,d7 
and equal to the number of months       
calculated as provided in subparagraph  
7,e74  7,b7 7i7 ,for purposes of this   
paragraph1 a covered resource is any    
resource that was a part of the corpus  
of the estate of the child that the     
,secretary considers that under all the 
circumstances1 if the surviving spouse  
or the child had not disposed of such   
resource1 it would be reasonable that   
the resource 7or some portion of the    
resource7 be consumed for the child's   
maintenance4  7ii7 ,for purposes of this

 paragraph1 the ,secretary may consider1
 in accordance with regulations the     
,secretary shall prescribe1 a transfer  
of an asset 7including a transfer of an 
asset to an annuity1 trust1 or other    
financial instrument or investment7 a   
disposal of a covered resource for less 
than fair market value if such transfer 
reduces the amount in the corpus of the 
estate of the child that the ,secretary 
considers1 under all the circumstances1 
would be reasonable to be consumed for  
the child's maintenance4  7,c7 7i7 ,the 
look-back date described in this clause 
is a date that is #cf months before the 
date described in clause 7ii74  7ii7    
,the date described in this clause is   
the date on which the surviving spouse  
applies for payment of increased pension
 under subsection 7c71 7d71 or 7e7 of   
section #aeda of this title on account  
of a child or1 if later1 the date on    
which the surviving spouse 7or the      
child7 disposes of covered resources for
 less than fair market value4  7,d7 ,the

 date described in this subparagraph is 
the first day of the first month in or  
after which covered resources were      
disposed of for less than fair market   
value and which does not occur in any   
other period of ineligibility under this
 paragraph4  7,e7 ,the number of months 
calculated under this clause shall be   
equal to--  7i7 the total1 cumulative   
uncompensated value of all covered      
resources so disposed of by the         
surviving spouse 7or the child7 on or   
after the look-back date described in   
subparagraph 7,c77i72 divided by  7ii7  
the maximum amount of increased monthly 
pension that is payable to a surviving  
spouse under subsection 7c71 7d71 or 7e7
 of section #aeda of this title on      
account of a child1  rounded1 in the    
case of any fraction1 to the nearest    
whole number1 but shall not in any case 
exceed #cf months4  2  7#b7 in          
subsection 7b7--  7,a7 by inserting 7#a7
 before ,the ,secretary2 and  7,b7 by   
adding at the end the following new     

paragraph3  7#b7 7,a7 ,if a child       
otherwise eligible for payment of       
pension under section #aedb of this     
title or any person with whom such child
 is residing who is legally responsible 
for such child's support disposes of    
covered resources for less than fair    
market value on or after the look-back  
date described in subparagraph 7,c77i71 
the ,secretary shall deny or discontinue
 the payment of pension to such child   
under section #aedb of this title for   
months during the period beginning on   
the date described in subparagraph 7,d7 
and equal to the number of months       
calculated as provided in subparagraph  
7,e74  7,b7 7i7 ,for purposes of this   
paragraph1 a covered resource is any    
resource that was a part of the corpus  
of the estate of the child or the corpus
 of the estate of any person with whom  
such child is residing who is legally   
responsible for such child's support    
that the ,secretary considers that under
 all the circumstances1 if the child or 

person had not disposed of such         
resource1 it would be reasonable that   
the resource 7or some portion of the    
resource7 be consumed for the child's   
maintenance4  7ii7 ,for purposes of this
 paragraph1 the ,secretary may consider1
 in accordance with regulations the     
,secretary shall prescribe1 a transfer  
of an asset 7including a transfer of an 
asset to an annuity1 trust1 or other    
financial instrument or investment7 a   
disposal of a covered resource for less 
than fair market value if such transfer 
reduces the amount in the corpus of the 
estate described in clause 7i7 that the 
,secretary considers1 under all the     
circumstances1 would be reasonable to be
 consumed for the child's maintenance4  
7,c7 7i7 ,the look-back date described  
in this clause is a date that is #cf    
months before the date described in     
clause 7ii74  7ii7 ,the date described  
in this clause is the date on which the 
child applies for pension under section 
#aedb of this title or1 if later1 the   

date on which the child 7or person      
described in subparagraph 7,b77 disposes
 of covered resources for less than fair
 market value4  7,d7 ,the date described
 in this clause is the first day of the 
first month in or after which covered   
resources were disposed of for less than
 fair market value and which does not   
occur in any other period of            
ineligibility under this paragraph4     
7,e7 ,the number of months calculated   
under this clause shall be equal to--   
7i7 the total1 cumulative uncompensated 
value of all covered resources so       
disposed of by the child 7or person     
described in subparagraph 7,b77 on or   
after the look-back date described in   
subparagraph 7,c77i72 divided by  7ii7  
the maximum amount of monthly pension   
that is payable to a child under section
 #aedb of this title1  rounded1 in the  
case of any fraction1 to the nearest    
whole number1 but shall not in any case 
exceed #cf months4  2 and  7#c7 by      
adding at the end the following new     

subsection3  7c7 7#a7 ,the ,secretary   
shall not deny or discontinue payment of
 pension under section #aeda or #aedb of
 this title or payment of increased     
pension under subsection 7c71 7d71 or   
7e7 of section #aeda of this title on   
account of a child by reason of the     
application of subsection 7a77#b71      
7a77#d71 or 7b77#b7 of this section to  
the disposal of resources by an         
individual to the extent that--  7,a7 a 
satisfactory showing is made to the     
,secretary 7in accordance with          
regulations promulgated by the          
,secretary7 that all resources disposed 
of for less than fair market value have 
been returned to the individual who     
disposed of the resources2 or  7,b7 the 
,secretary determines1 under procedures 
established by the ,secretary1 that the 
denial or discontinuance of payment     
would work an undue hardship as         
determined on the basis of criteria     
established by the ,secretary4  7#b7 ,at
 the time a surviving spouse or child   

applies for pension under section #aeda 
or #aedb of this title or increased     
pension under subsection 7c71 7d71 or   
7e7 of section #aeda of this title on   
account of a child1 and at such other   
times as the ,secretary considers       
appropriate1 the ,secretary shall--     
7,a7 inform such surviving spouse or    
child of the provisions of subsections  
7a77#b71 7a77#d71 and 7b77#b71 as       
applicable1 providing for a period of   
ineligibility for payment of pension or 
increased pension under such sections   
for individuals who make certain        
dispositions of resources for less than 
fair market value2 and  7,b7 obtain from
 such surviving spouse or child         
information which may be used in        
determining whether or not a period of  
ineligibility for such payments would be
 required by reason of such subsections4
  4  7c7 ,effective date ,subsections   
7a77#b71 7b77#b71 and 7c7 of section    
#aebb of title #ch1 ,united ,states     
,code1 as added by subsection 7a71 and  

subsections 7a77#b71 7a77#d71 7b77#b71  
and 7c7 of section #aedc of such title1 
as added by subsection 7b71 shall take  
effect on the date that is one year     
after the date of the enactment of this 
,act and shall apply with respect to    
payments of pension and increased       
pension applied for after such date and 
to payments of pension and increased    
pension for which eligibility is        
redetermined after such date1 except    
that no reduction in pension shall be   
made under such subsections because of  
any disposal of covered resources made  
before such date4  7d7 ,annual reports  
7#a7 ,in general ,not later than two    
years after the date of the enactment of
 this ,act and not less frequently than 
once each year thereafter through #bjah1
 the ,secretary of ,veterans ,affairs   
shall submit to the appropriate         
committees of ,congress a report on the 
administration of subsections 7a77#b71  
7b77#b71 and 7c7 of section #aebb of    
title #ch1 ,united ,states ,code1 as    

added by subsection 7a71 and subsections
 7a77#b71 7a77#d71 7b77#b71 and 7c7 of  
section #aedc of such title1 as added by
 subsection 7b71 during the most recent 
#ab-month period4  7#b7 ,elements ,each 
report submitted under paragraph 7#a7   
shall include the following1 for the    
period covered by the report3  7,a7 ,the
 number of individuals who applied for  
pension under chapter #ae of such title4
  7,b7 ,the number of individuals who   
received pension under such chapter4    
7,c7 ,the number of individuals with    
respect to whom the ,secretary denied or
 discontinued payment of pension under  
the subsections referred to in paragraph
 7#a74  7,d7 ,a description of any      
trends identified by the ,secretary     
regarding pension payments that have    
occurred as a result of the amendments  
made by this section4  7,e7 ,such other 
information as the ,secretary considers 
appropriate4  7#c7 ,appropriate         
committees of ,congress defined ,in this
 subsection1 the term appropriate       

committees of ,congress means--  7,a7   
the ,committee on ,veterans' ,affairs   
and the ,select ,committee on ,aging of 
the ,senate2 and  7,b7 the ,committee on
 ,veterans' ,affairs of the ,house of   
,representatives4