and indemnity compensation. Servicemen's indemnity discontinued day preceding due date of installment next following beginning date of award of dependency and indemnity compensation. (2) Payee (child) awarded servicemen's indemnity: Dependency and indemnity compensation discontinued day preceding due date of installment of servicemen's indemnity for the month in which the monthly installment becomes greater than the monthly rate of dependency and indemnity compensation.

(t) Treasonable acts or subversive activities. (38 U.S.C. 3504 and 3505; §§ 3.902, 3.903.) Beginning date of award, or day preceding date of commission of treasonable act or subversive activities for which convicted, whichever is later. (See § 3.669.)

(u) Whereabouts unknown (§§ 3.158, 3.656). Date of last payment.

(v) Change in law or Veterans Administration issue, or interpretation. See § 3.114.

(w) Failure to furnish evidence. Except as otherwise provided, date of last payment where evidence requested to establish continued entitlement is not furnished.

[26 F.R. 1596, Feb. 24, 1961, as amended at 27 F.R. 8830, Sept. 5, 1962; 27 F.R. 11889, Dec. 1, 1962]

CROSS REFERENCE: Failure to return questionnaire. See § 3.661 (b). § 3.501

Veterans.

The effective date of discontinuance of pension or compensation to or for a veteran will be the earliest of the dates stated in this section. Where an award is reduced, the reduced rate will be payable the day following the date of discontinuance of the greater benefit.

(a) Active service pay (38 U.S.C. 3012 (b) (3); Public Law 87-825; § 3.700(a)). Day preceding entrance on active duty. See § 3.654.

(b) Aid and attendance-(1) § 3.552 (b)(1). Last day of calendar month following month in which veteran is hospitalized at Veterans Administration expense.

(2) § 3.552(b)(2). Last day of calendar month following month in which veteran hospitalized at United States Government expense.

(c) Disappearance of veteran. See § 3.656.

(d) Divorce (38 U.S.C. 3012(b) (2); Public Law 87-825). Last day of month in which divorce occurred.

(2) Compensation. Last day of month following 60 days after notice to payee.

(f) Employment questionnaire, failure to return. Reduce award to the amount payable for the schedular evaluation shown in the current rating as of the day following the date of last payment. (g) Evaluation reduced (38 U.S.C. 3012(b) (5), (6); Public Law 87-825; § 3.105)-(1) Pension. Last day of month in which reduction or discontinuance is approved.

(2) Compensation. Last day of month following 60 days after notice to payee.

(h) Examination; failure to report. See § 3.655.

(i) Hospitalization—(1) § 3.551(b). First day of seventh calendar month following admission if veteran without dependents, or first day of the month following the month in which the action is taken, whichever is later.

(2) § 3.551 (c). First day of third calendar month following admission if veteran without wife or child or, though married, is receiving pension at rate provided by 38 U.S.C. 521(b).

hospital

(3) § 3.557. Incompetent ized veteran, without dependents, whose estate equals or exceeds $1,500: Date of admission or end of the month in which any Veterans Administration office receives information that estate equals or exceeds $1,500, whichever is later. If the veteran was hospitalized for observation and examination, the date treatment began will be considered the date of admission.

(j) Institutional award and/or to Personal Funds of Patients (§ 3.852). Date of last payment, when veteran is discharged from hospital, fiduciary appointed, or veteran rated competent.

(k) Lump-sum readjustment pay. See § 3.700 (a) (2).

(1) Retirement Lay (38 U.S.C. 3012 (b) (3); Public Law 87-825; § 3.750). Day before effective date of retirement pay.

(m) Temporary increase (38 U.S.C. 3012(b) (8); Public Law 87-825; Paragraph 29, "General Policy in Rating,” 1945 Schedule for Rating Disabilities). Last day of month in which hospitalization or treatment terminated, whichever

The effective date of discontinuance of pension, compensation, or dependency and indemnity compensation to or for a widow will be the earliest of the dates stated in this section. Where an award is reduced, the reduced rate will be payable the day following the date of discontinuance of the greater benefit.

(a) Additional allowance of dependency and indemnity compensation for children (§ 3.5(e) (3)). (1) Day preceding child's 18th birthday or last day of month in which child's marriage occurred (see § 3.500 (n) (2) and (3)), whichever is earlier.

(2) Last day of month in which increase was effective, when allowance is reduced or discontinued because of increase in old-age and survivor's in

surance.

(b) Basic pay; dependency and indemnity compensation (38 U.S.C. 411(a), 3012(b) (10); Public Law 87-825). Date of last payment when rate is reduced because of new certification of basic pay.

(c) Legal widow entitled. Date of last payment on award to another woman as widow. See § 3.657.

(d) Marriage. See § 3.500 (n).

[26 F.R. 1596, Feb. 24, 1961, as amended at 27 F.R. 11890, Dec. 1, 1962; 29 F.R. 16329, Dec. 5, 1964]

$3.503 Children.

The effective date of discontinuance of pension, compensation, or dependency and indemnity compensation to or for a child, or to or for a veteran or widow on behalf of such child, will be the earliest of the dates stated in this section. Where an award is reduced, the reduced rate will be payable the day following the date of discontinuance of the greater benefit.

(a) Age 18 (or 23) (38 U.S.C. 3012(a); § 3.57). Day before 18th (or 23d birthday.

(b) Enters service (§§ 3.450(b), 3.458 (e)). Date of last payment of apportioned disability benefits for child not in custody of estranged wife. Full rate payable to veteran. No change where payments are being made for the child

to the veteran, his estranged wife, his widow, or to the fiduciary of a child not in the widow's custody.

(c) Permanently incapable of selfsupport (38 U.S.C. 3012(a), (b) (6); Public Law 87-825; §§ 3.57, 3.950)-(1) Pension. Date of last payment.

(2) Compensation or dependency and indemnity compensation. Last day of month following 60 days after notice to payee.

(d) Marriage. See § 3.500 (n).

(e) School attendance. See § 3.667. (f) Stepchild no longer member of veteran's household (§3.57). Last day child was a member of household.

(g) Two parent cases (§ 3.703). Day preceding beginning date of award based on service of the other parent.

(h) War orphans' educational assistance (§§ 3.707, 3.807). Day preceding beginning date of educational assistance allowance.

(1) Widow becomes entitled. Date of last payment. See §3.657.

[26 F.R. 1597, Feb. 24, 1961, as amended at 27 F.R. 11890, Dec. 1, 1962; 30 F.R. 14983, Dec. 3, 1965]

HOSPITALIZATION ADJUSTMENTS

(a) General. Pension, compensation or retirement pay in excess of $30 monthly is subject to reduction when a veteran who has neither wife, child nor dependent parent is hospitalized, unless the veteran is hospitalized for Hansen's disease. The provisions of this section apply to initial periods of hospitalization and to readmissions following discharge from a prior period of hospitalization. If the veteran is hospitalized for observation and examination, the date treatment began is considered the date of admission. Special rules governing discontinuance of aid and attendance allowance are contained in

3.552 and for discontinuance of awards for incompetent veterans in § 3.557. Except as otherwise indicated the terms "hospitalized" and "hospitalization" in §§ 3.551 through 3.559 mean:

(1) Hospital treatment in a Veterans Administration hospital or in any hospital at Veterans Administration expense.

(2) Institutional, domiciliary or nursing home care in a Veterans Administration institution or domiciliary or at Veterans Administration expense.

(b) Reduction after 6 months. Pension (except as provided in paragraph (c) of this section), compensation or retirement pay in excess of $30 monthly for a veteran who has neither wife, child nor dependent parent shall continue at the full monthly rate until the end of the sixth calendar month following the month of admission for hospitalization. The rate payable will be reduced effective the first of the seventh calendar month to $30 monthly or 50 percent of the amount otherwise payable, whichever is greater. The reduced rate will be effective the first day of the seventh calendar month following admission or the first day of the month following the month in which action is taken, whichever is later. Payment of the amount withheld may be as provided in § 3.556. (38 U.S.C. 3203 (a) (1))

(c) Reduction after 2 months. Where pension is being paid to a veteran under 38 U.S.C. 521(b) or to a Spanish-American War veteran or an Indian War veteran who was not receiving pension for June 30, 1960, or who elected pension as prescribed by 38 U.S.C. 521 pursuant to 38 U.S.C. 511(c) and 512(a) (3), the pension for a veteran who has neither wife nor child, or who, though married, is receiving pension as prescribed by 38 U.S.C. 521(b) because not living with or reasonably contributing to the support of his spouse shall continue at the full monthly rate until the end of the second calendar month (except as provided in paragraph (d) of this section) following the month of admission for hospitalization. The rate payable will be reduced effective the first of the third calendar month to $30 monthly. Where the veteran has been discharged from a period of hospitalization of not less than 2 full calendar months and is readmitted within 6 months, the award will be reduced effective the date of readmission. Where pension was being paid to a married veteran at the rate prescribed by 38 U.S.C. 521(b), all or any part of the rates payable under 38 U.S.C. 521(c) or (c) and (e) may be apportioned for an estranged wife as provided in § 3.454 (b). (38 U.S.C. 3203 (d))

(d) Computation of period. In computing the period of hospitalization prior to reduction under paragraph (c) of this section, the period will be extended by reason of time spent on leave, regularly authorized furlough or trial visit, regard

less of length after the month of admission. Absence on pass is included as part of the period of hospitalization. For the purposes of paragraph (c) of this section, the veteran will be considered to have been hospitalized for 2 calendar months when he has received a total of 60 days of treatment or care, exclusive of specified absences.

(e) Readmission-(1) Approved discharge. Except as provided in paragraph (c) of this section, where a veteran has been given an approved discharge or release, readmission the next day to the same or any other Veterans Administration institution begins a new period of hospitalization, unless the veteran was released for purposes of admission to another Veterans Administration institution.

(2) Unapproved discharge. When a veteran whose award is subject to reduction under paragraph (b) of this section has been discharged or released from a hospital against medical advice or as the result of disciplinary action, reentry within 6 months from the date of a previous admission constitutes a continuation of that period of hospitalization, and his award will not be reduced prior to the first day of the seventh calendar month following the month of his original admission, exclusive of furloughs. Except as provided in the preceding sentence, if a veteran reenters a hospital within 6 months after his discharge or release against medical advice or as a result of disciplinary action, his award will be reduced as of the date of readmission. A reentry 6 months or more after such discharge or release will be considered as a new admission. (Public Law 89-362.)

(f) Proof of dependents. The veteran will be considered to have neither wife, child nor dependent parent in the absence of satisfactory proof. Statements contained in the claims folder concerning the existence of such dependents will be considered a prima facie showing. If the necessary evidence is not received (1) within 60 days after the date of request where the award is subject to reduction under paragraph (b) of this section, or (2) prior to the effective date of reduction under paragraph (c) of this section, the veteran's award will be reduced on the basis of no dependents. The full rate may be authorized from the date of reduction if the necessary

evidence is received within 1 year after the date of request.

[27 F.R. 7677, Aug. 3, 1962, as amended at 27 F.R. 8793; Sept. 1, 1962; 29 F.R. 12368, Aug. 28, 1964; 29 F.R. 15207, Nov. 11, 1964; 29 F.R. 16329, Dec. 5, 1964; 31 F.R. 4790, Mar. 22, 1966]

CROSS REFERENCES: Time limits. See § 3.109. Apportionment. See §3.400 (e). Reduc

tions

and discontinuances; general. See § 3.500. Incompetents; hospitalized. See §3.557. Incompetents; See

$3.558.

§ 3.552

Adjustment of allowance for regular aid and attendance.

(a) (1) When a veteran is hospitalized, additional compensation or increased pension for regular aid and attendance will be discontinued as provided in paragraph (b) of this section except as to disabilities specified in subparagraph (2) of this paragraph.

(2) The allowance for aid and attendance will be continued during hospitalization where the disability is paraplegia involving paralysis of both lower extremities together with loss of anal and bladder sphincter control, or Hansen's disease, except where discontinuance is required by paragraph (b) (2) of this section. In addition, in pension cases only, the aid and attendance allowance will be continued where the pensionable disability is blindness (visual acuity 5/200 or less) or concentric contraction of visual field to 5 degrees or less. Awards are, however, subject to the provisions of § 3.551 (except where the disabling condition is Hansen's disease) and § 3.557.

(3) Additional compensation for dependents under § 3.4 (b) (2) is payable during hospitalization in addition to the rates authorized by this section. The rates specified will also be increased by amounts authorized under 38 U.S.C. 314(k) based on independently ratable disability, subject to the statutory ceiling on the total amount of compensation payable ($600 or $480).

(b) (1) Where a veteran is admitted for hospitalization on or after October 1, 1964, the additional compensation or increased pension for aid and attendance will be discontinued effective the last day of the month following the month in which the veteran is admitted for hospitalization at the expense of the Veterans Administration. Where a veteran was admitted for hospitalization before October 1, 1964, the additional compensation or increased pension for aid and

(3) Where a veteran affected by the provisions of subparagraphs (1) and (2) of this paragraph is discharged or released from the hospital against medical advice or as the result of disciplinary action, and is readmitted to such hospitalization within 6 months after that date, the allowance, additional compensation, or increased pension will be discontinued effective the day preceding the date of readmission. A readmission 6 months or more after such discharge or release will be considered as a new admission. (38 U.S.C. 3203 (f); Public Law 89-362.)

(c) Reduction will not be made where the same monthly rate of compensation would be payable without consideration of need for regular aid and attendance. This can only be determined after careful review of the current maximum entitlement without regard to any amount for aid and attendance.

(d) Where entitlement by reason of need for regular aid and attendance is the basis of the monthly rate under 38 U.S.C. 314 (1) or the peacetime rate the award will be reduced to the rate payable under 38 U.S.C. 314(s).

(e) Where pension is payable at the aid and attendance rate the reduced award will include the rate authorized by § 3.351(d) in addition to the appropriate basic rate, except for cases subject to paragraph (a) (2) of this section.

(f) Where entitlement to the rate in 38 U.S.C. 314 (o) or its peacetime equivalent is based in part on need for regular aid and attendance reduction because of being hospitalized will be to the rate payable for the other conditions shown.

(g) Where a veteran entitled to one of the rates under 38 U.S.C. 314 (1), (m), or (n) or their corresponding peacetime equivalent by reason of anatomical losses or losses of use of extremities, blindness (visual acuity 5/200 or less or light perception only), or anatomical loss of both eyes is being paid compensation of $600 (or $480) because of entitlement to an

other rate under section 314(1) on account of need for aid and attendance his compensation will be reduced while hospitalized to the following:

(1) If entitlement is under section 314(1) and in addition there is need for regular aid and attendance for another disability, the award during hospitalization will be $450 (or $360) since the disability requiring aid and attendance is 100 percent disabling. (38 U.S.C. 314 (p))

(2) If entitlement is under section 314(m), $525 (or $420).

(3) If entitlement is under section 314(n), $600 (or $480) would be continued, since the disability previously causing the need for regular aid and attendance would then be totally disabling entitling him to the maximum rate under 38 U.S.C. 314(p).

(h) If, because of blindness, a veteran requires regular aid and attendance, but has better vision than "light perception only" his award under 38 U.S.C. 314(m) $450 (or $360) will be reduced while hospitalized to the rate payable under 38 U.S.C. 314(1) ($400 or $320).

(i) If the disability meets the aid and attendance requirements of 38 U.S.C. 314(1) and the intermediate or next higher rate was assigned for disability independently ratable at 50 percent or 100 percent, the award based on such entitlement will be reduced because of hospitalization to the amount payable under 38 U.S.C. 314(s).

[28 F.R. 1588, Feb. 20, 1963, as amended at 29 F.R. 12369, Aug. 28, 1964; 29 F.R. 15207, Nov. 11, 1964; 30 F.R. 14983, Dec. 3, 1965; 31 F.R. 4790, Mar. 22, 1966]

§ 3.556 Adjustment on discharge or release.

absence-30

days.

(a) Temporary (1) Where a competent veteran whose award was reduced under § 3.551(b) is placed on trial visit status or other authorized absence of 30 days or more the full monthly rate, excluding any allowance for regular aid and attendance, will be restored effective the date of reduction. The full monthly rate for an incompetent veteran, or for a competent veteran whose pension was reduced under § 3.551(c), will be restored effective the date of departure from the hospital unless it is determined that apportionment for an estranged wife should be continued. In all instances, any allowance for regular aid and attendance will be

restored effective the date of departure from the hospital.

(2) Upon the veteran's return to the hospital, an award which is subject to reduction under § 3.551(b) will again be reduced effective the end of the month in which the action is taken; under § 3.551(c), the award will again be reduced effective the date of the veteran's return to the hospital. In all instances, any allowance for regular aid and attendance will be discontinued, if in order, effective the date of the veteran's return to the hospital.

(c) Adjustment based on need. Where an award of pension was reduced under § 3.551(c), the full rate covering absences of less than 30 days may be restored, subject to prior payments, prior to discharge from hospitalization at the request of the Director of the hospital, center or domiciliary, where this action is necessary to meet the veteran's financial needs, if he has been hospitalized for more than 6 months and the periods of absence exceed a total of 30 days.

(d) Unapproved discharge. When a competent veteran is given a disciplinary discharge or is discharged against medical advice, the full rate will be restored effective the date of release from the hospital. Payment of any amount withheld under § 3.551(b) will not be authorized until the expiration of 6 months after termination of hospitalization unless the prior release is changed to an approved release. However, amounts not paid under paragraph (c) of this section covering absences of less than 30 days where the award was reduced under §3.551 (c) will be authorized immediately.

(e) Approved discharge. When a veteran, either competent or incompetent, is given an approved discharge or release, the full rate, including any allowance for regular aid and attendance will be restored effective the date of release from the hospital, subject to prior payments. The award will be based on the most recent rating and, where the award was reduced under $3.551(b), will include, in the case of a competent veteran, any amounts withheld because of hospitalization. The amount withheld for an incompetent veteran will not be authorized until the expiration of 6 months following a rating of competency by the Veterans Administration or 6 months following removal of legal disability, whichever is later. Any institutional award will be discontinued effective date of last payment, as provided in § 3.501(j).