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Chapter: 1800 Income Program: FS 16 1810.0906 Veterans Benefits and Payments (FS) Veterans’ compensation and pensions are based primarily on service in the armed forces and may also be made to the veterans’ dependents or survivors. These payments, including stipend payments for participation in a study of Vietnam era veterans’ psychological problems (P.L. 99- 576) and monthly payments to veterans of the Vietnam era as a result of exposure to Agent Orange (P.L. 102-4) are counted as unearned income. The following are excluded as income:

1. Reductions in basic pay while in active duty service or selected reserve service to provide for future basic educational assistance (P.L. 99-576). 2. Payments to a natural child of a Vietnam veteran born with spina bifida, except spina bifida occulta, as a result of the exposure of one or both parents to Agent Orange (P.L. 104-204). 3. Payments to a natural child of a woman Vietnam veteran born with one or more birth defects resulting in permanent physical or mental disability (P.L. 106-419). 4. Aid and attendance, a housebound allowance and unreimbursed medical expenses. 1810.0908 Workers’ Compensation Payments (FS) Workers’ Compensation payments are included as unearned income.

Workers’ Compensation payments are awarded to an injured employee or to the employee's survivors. Any portion of the payment designated for medical expenses or legal fees paid or deducted at the source and not controlled by the individual is excluded from the income amount. 1810.0909 Railroad Retirement Payments (FS) Retirement, survivor, unemployment, sickness and strike benefits from railroad payments are included as unearned income. Premiums for medical insurance under Medicare that may have been deducted must be added to the payment amount in determining the amount of unearned income. Individuals having an SSN beginning with the number “7” are entitled or potentially entitled to railroad benefits.

There are three different railroad employee benefits:

1. The retirement benefit is payable only to the railroad employee or the employee's spouse. Benefits may be increased because of dependent children; however, the amount of the increase is considered income to the individual rather than the child(ren). 2. The survivor benefit is payable to widows/widowers and children or to dependent parents if no widow(er) or child qualifies. 3. Checks for unemployment, sickness, and strike benefits cover a period up to two weeks.

Retirement and survivor benefits are paid monthly. Payment received in the current month is the amount due the individual for the prior month.

Railroad retirement benefits are adjusted for cost of living at the same time as SSA. However, differences in amounts may exist due to individual case circumstances. Verification of differences should be made by reviewing an award notice. When contact with the railroad retirement board (RRB) is necessary, contact the local RRB district office, not the RRB in Chicago. 1810.0910 Unemployment Compensation (FS) Payments received pursuant to a state or federal unemployment law, or paid by a union or employer are included as unearned income. 1810.0912 Severance Pay (FS) Severance pay is included as unearned income.