38 USC § 5112 - Effective dates of reductions and discontinuances

(a) Except as otherwise specified in this section, the effective date of reduction or discontinuance of compensation, dependency and indemnity compensation, or pension shall be fixed in accordance with the facts found.

(b) The effective date of a reduction or discontinuance of compensation, dependency and indemnity compensation, or pension—

(1) by reason of marriage or remarriage, or death of a payee shall be the last day of the month before such marriage, remarriage, or death occurs;

(2) by reason of marriage, annulment, divorce, or death of a dependent of a payee shall be the last day of the month in which such marriage, annulment, divorce, or death occurs;

(3) by reason of receipt of active service pay or retirement pay shall be the day before the date such pay began;

(4) by reason of—

(A) change in income shall (except as provided in section 5312 of this title) be the last day of the month in which the change occurred; and

(B) change in corpus of estate shall be the last day of the calendar year in which the change occurred;

(5) by reason of a change in disability or employability of a veteran in receipt of pension shall be the last day of the month in which discontinuance of the award is approved;

(6) by reason of change in law or administrative issue, change in interpretation of a law or administrative issue, or, for compensation purposes, a change in service-connected or employability status or change in physical condition shall be the last day of the month following sixty days from the date of notice to the payee (at the payee’s last address of record) of the reduction or discontinuance;

(7) by reason of the discontinuance of school attendance of a payee or a dependent of a payee shall be the last day of the month in which such discontinuance occurred;

(8) by reason of termination of a temporary increase in compensation for hospitalization or treatment shall be the last day of the month in which the hospital discharge or termination of treatment occurred, whichever is earlier;

(9) by reason of an erroneous award based on an act of commission or omission by the beneficiary, or with the beneficiary’s knowledge, shall be the effective date of the award; and

(10) by reason of an erroneous award based solely on administrative error or error in judgment shall be the date of last payment.

Source

(Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1227, § 3012; Pub. L. 87–825, § 2,Oct. 15, 1962, 76 Stat. 949; Pub. L. 89–730, § 3,Nov. 2, 1966, 80 Stat. 1159; Pub. L. 90–275, § 5,Mar. 28, 1968, 82 Stat. 68; Pub. L. 92–198, § 3,Dec. 15, 1971, 85 Stat. 664; Pub. L. 94–433, title IV, § 402,Sept. 30, 1976, 90 Stat. 1378; Pub. L. 95–588, title III, § 303,Nov. 4, 1978, 92 Stat. 2506; Pub. L. 97–253, title IV, § 402(a),Sept. 8, 1982, 96 Stat. 802; Pub. L. 99–576, title V, § 503, title VII, § 701(64),Oct. 28, 1986, 100 Stat. 3286, 3296; renumbered § 5112 and amended Pub. L. 102–40, title IV, § 402(b)(1), (d)(1),May 7, 1991, 105 Stat. 238, 239; Pub. L. 107–103, title II, § 204(b)(2),Dec. 27, 2001, 115 Stat. 990.)

Amendments

2001—Subsec. (c). Pub. L. 107–103struck out subsec. (c) which read as follows: “The effective date of a discontinuance under section 5503 (b)(1)(A) of this title of pension, compensation, or emergency officers’ retirement pay by reason of hospital treatment or institutional or domiciliary care shall be the last day of the first month of such treatment or care during which the value of the veteran’s estate, as determined under such section, equals or exceeds $1,500.”

1991—Pub. L. 102–40, § 402(b)(1), renumbered section 3012 of this title as this section.

Subsec. (b)(4)(A). Pub. L. 102–40, § 402(d)(1), substituted “5312” for “3112”.

Subsec. (c). Pub. L. 102–40, § 402(d)(1), substituted “5503(b)(1)(A)” for “3203(b)(1)(A)”.

1986—Subsec. (b)(6). Pub. L. 99–576, § 701(64), substituted “the payee’s” for “his”.

Subsec. (c). Pub. L. 99–576, § 503, added subsec. (c).

1982—Subsec. (b)(2). Pub. L. 97–253substituted “month” for “calendar year”.

1978—Subsec. (b)(4). Pub. L. 95–588restructured subsection and, as so restructured, provided that the effective date of a change in compensation by reason of a change in income would be the last day of the month in which the change occurred rather than the last day in the calendar year in which such change in income occurred.

1976—Subsec. (b)(2). Pub. L. 94–433, § 402(1), inserted “annulment,” before “divorce” in two places.

Subsec. (b)(9). Pub. L. 94–433, § 402(2), substituted “the beneficiary’s” for “his” before “knowledge”.

1971—Subsec. (b)(2). Pub. L. 92–198substituted “last day of the calendar year” for “last day of the month”.

1968—Subsec. (b)(4). Pub. L. 90–275struck out exception which provided that where change in income is due to an increase in payments under a public or private retirement plan the effective date of the resulting reduction or discontinuance shall be the last day of the calendar year in which the change occurred.

1966—Subsec. (b)(4). Pub. L. 89–730provided for exception that where change in income is due to an increase in payments under a public or private retirement plan the effective date of the resulting reduction or discontinuance shall be the last day of the calendar year in which the change occurred.

1962—Subsecs. (b), (c). Pub. L. 87–825redesignated subsec. (c) as (b), amended such subsec. generally, and among other changes, inserted provisions relating to the marriage, divorce, or death of a dependent of a payee, the change in income or corpus of an estate, the change in disability or employability of a veteran, the change in law or administrative issue of service-connected or employability status or physical condition, the discontinuance of school attendance, the termination of a temporary increase in compensation for hospitalization or treatment, an erroneous award based on an act or omission of the beneficiary or with his knowledge, and an erroneous award based solely on administrative error or error in judgment, changed the effective date by reason of death, or by reason of marriage or remarriage, from the date of death, or the day before the date of marriage or remarriage, respectively, to the last day of the month before such death, marriage or remarriage occurs, and eliminated provisions relating to attaining age 18 or 21, as applicable, and to fraud on the part of the beneficiary or with his knowledge. Former subsec. (b), which related to the effective date of a reduction or discontinuance in rates, of a compensation, dependency and indemnity compensation, or a pension award, was struck out.

Effective Date of 1982 Amendment

Section 402(b) ofPub. L. 97–253provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to any marriage, annulment, divorce, or death that occurs after September 30, 1982.”

Effective Date of 1978 Amendment

Amendment by Pub. L. 95–588effective Jan. 1, 1979, see section 401 ofPub. L. 95–588, set out as a note under section 101 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–433effective Oct. 1, 1976, see section 406 ofPub. L. 94–433, set out as a note under section 1101 of this title.

Effective Date of 1971 Amendment

Amendment by Pub. L. 92–198effective Jan. 1, 1972, see section 6 ofPub. L. 92–198, set out as a note under section 1521 of this title.

Effective Date of 1968 Amendment

Amendment by Pub. L. 90–275effective first day of first calendar month following month of initial payment of increases in monthly insurance benefits provided by Social Security Amendments of 1967, see section 6(b) ofPub. L. 90–275, set out as a note under section 1521 of this title.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–730effective first day of second calendar month following Nov. 2, 1966, see section 7(a) ofPub. L. 89–730, set out as a note under section 1315 of this title.

Effective Date of 1962 Amendment

Amendment by Pub. L. 87–825effective first day of second calendar month which begins after Oct. 15, 1962, see section 7 ofPub. L. 87–825, set out as a note under section 110 of this title.