FAMILYVA program

Section 306 and Old Law Pension (Legacy Pension Programs)

Legacy pension programs for veterans and survivors who were already getting Section 306 or Old Law pension on December 31, 1978, the day before the current Improved Pension began. They keep the protected rates, which may be more favorable than the current program for some beneficiaries.

Available to veterans and survivors getting Section 306 or Old Law pension on December 31, 1978

View on VA.gov

Step-by-step guide

What VA looks for: Keeping a Section 306 or Old Law pension

On the protected pension since December 31, 1978Section 306 pension is the program in effect from July 1, 1960, through December 31, 1978. Old Law pension is the program in effect before July 1, 1960. The protected rate continues only for someone receiving one of them on December 31, 1978, who has not chosen Improved Pension.
Yearly income under the protected limitCountable yearly income has to stay at or below the limit VA publishes for your program and household. A Section 306 limit is higher with Aid and Attendance. Section 306 also looks at net worth: a net worth large enough that some of it should go to your support ends the pension.

Source: 38 CFR 3.1(u) (opens in new tab); 38 CFR 3.1(v) (opens in new tab); 38 CFR 3.960(a) (opens in new tab); VA.gov: protected pension rates (opens in new tab); 38 CFR 3.26 (opens in new tab); 38 CFR 3.960(b) (opens in new tab)

Which kind of claim is this?

Keeping a Section 306 or Old Law pension
For a veteran, surviving spouse, or child who was getting Section 306 or Old Law pension on December 31, 1978, and has not moved to Improved Pension. VA keeps paying the monthly rate from that date as long as the income limits and the other rules are met.
Source: 38 CFR 3.960(a) (opens in new tab); 38 CFR 3.960(b) (opens in new tab); 38 CFR 3.26 (opens in new tab); VA.gov: protected pension rates (opens in new tab)
Choosing to move to Improved Pension
Someone on Section 306 or Old Law pension can choose to switch to the current program, called Improved Pension. The choice is final. Once the first Improved Pension payment is cashed, there is no going back.
1. On a protected pension, and a spouse who agrees if both are veteransThe choice is open to someone who was on Section 306 or Old Law pension on December 31, 1978. If two veterans who could each make this choice are married to each other, neither gets Improved Pension unless both choose it.
2. A choice that cannot be undoneThe choice takes effect on the date VA receives it. It becomes final when you or your fiduciary cash one Improved Pension check, and there is no right to choose again.
Source: 38 CFR 3.711 (opens in new tab); 38 CFR 3.713(a) (opens in new tab); 38 CFR 3.1(w) (opens in new tab); VA.gov: protected pension rates (opens in new tab)

What to gather, and what it shows VA

Documents for this benefit: what each is, what it shows VA, and how VA gets it
Document	What it shows	How VA gets it	Have it?
Your pension award or payment letter A VA letter showing which pension program pays you and the monthly rate.	That you are on a protected pension	VA sends these. If you cannot find one, call VA at 800-827-1000, the number VA lists for protected pension questions.	Yes
Income and asset records Statements for every source of income, such as Social Security, retirement, and investment payments, and for your assets.	Income and net worth against the protected limit	Each payer or bank sends these. VA can ask for proof of income and assets as a condition of continuing pension.	Yes
Medical expense report VA Form 21P-8416, a list of medical expenses you paid for yourself or a family member in your household and were not paid back for.	Medical costs that lower countable income	You fill it out from your own bills and receipts and send it to VA. BeneVets does not collect expense details.
Your written choice of Improved Pension A signed statement to VA that you choose to receive Improved Pension instead of your protected pension.	The date and terms of your choice	You send it to VA. The choice starts on the date VA receives it and becomes final once one Improved Pension check is cashed.

Records and statements go to VA. BeneVets never asks you to upload or type them here.

Steps, in order

Get free help from a VSO
Free help: an accredited VSO can file this with you. Find one near you in the BeneVets VSO directory at Find an accredited VSO near you. A VSO can help you compare the two programs before you choose.
Source: VA.gov: accredited representatives (opens in new tab); VA.gov: VA pension benefits (opens in new tab)
Confirm which program pays you
Check your award letter for Section 306 pension, Old Law pension, or Improved Pension. If you are not on Section 306 or Old Law pension now, this card does not apply: see Veterans Pension or Survivors Pension.
Source: 38 CFR 3.1(u) (opens in new tab); 38 CFR 3.1(v) (opens in new tab); 38 CFR 3.1(w) (opens in new tab); VA.gov: protected pension rates (opens in new tab)
Compare your income with the protected limit
Total your countable yearly income, less medical costs you paid and were not paid back for, and compare it with the limit for your program and household on VA's protected pension rates page.
Source: 38 CFR 3.26 (opens in new tab); 38 CFR 3.278(a) (opens in new tab); VA.gov: protected pension rates (opens in new tab)
Compare before you choose
Compare your protected monthly rate with the Improved Pension rate for your household on VA's Veterans Pension or Survivors Pension rates pages. Because the choice is final, do this before you decide.
Source: VA.gov: protected pension rates (opens in new tab); VA.gov: current pension rates (opens in new tab); VA.gov: Survivors Pension rates (opens in new tab); 38 CFR 3.711 (opens in new tab)
Send your choice to VA in writing
If you choose Improved Pension, send VA a signed statement saying so. It starts on the date VA receives it. Cashing the first Improved Pension check makes it final.
Source: 38 CFR 3.711 (opens in new tab); 38 CFR 3.713(a) (opens in new tab)
Report changes
Tell VA promptly about changes in income, net worth, marital status, or dependents. A change can lower or end a protected pension.
Source: 38 CFR 3.277(b) (opens in new tab); 38 CFR 3.960(b) (opens in new tab); 38 CFR 3.960(c) (opens in new tab)
If the protected pension ended, apply for Improved Pension
A protected pension that ended cannot be restarted. Apply for Veterans Pension or Survivors Pension instead.
Source: 38 CFR 3.960(d) (opens in new tab); VA.gov: protected pension rates (opens in new tab)

Good to know

No new applications

These programs closed to new people at the end of 1978. Nobody can newly apply. If a protected pension ends, it cannot be restarted, and the only pension left is Improved Pension: Veterans Pension or Survivors Pension.

Source: 38 CFR 3.960(d) (opens in new tab); 38 CFR 3.1(w) (opens in new tab); VA.gov: protected pension rates (opens in new tab)

What ends or lowers a protected pension

It ends if a veteran is no longer permanently and totally disabled, a surviving spouse or child no longer meets the legal definition, income goes over the limit, or, for Section 306, net worth grows too large. Losing a dependent lowers the rate by the amount added for that dependent.

Source: 38 CFR 3.960(b) (opens in new tab); 38 CFR 3.960(c) (opens in new tab)

Medical costs still lower income

Medical costs you paid and were not paid back for can lower countable income for Section 306 pension, using the same list of medical expenses as Improved Pension.

Source: 38 CFR 3.278(a) (opens in new tab); VA.gov: protected pension rates (opens in new tab)

BeneVets is informational and is not an accredited representative. Free help: an accredited VSO can work through VA benefits with you at no cost. Find an accredited VSO near you