The Latest Threat in Veteran Scams: Pension Poachers

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Veterans who faithfully served our country are sometimes entitled to benefits, pensions, and other payments that help support them. However, because the process of applying for these benefits can often be complex, bad actors often try to take advantage of the most vulnerable veterans.

One common way veterans are exploited is through pension poaching. In this blog, we’ll tell you all about how pension poaching works, how it hurts veterans, and crucially, how you can avoid it. Let’s start with a brief overview of the VA’s pension and benefits programs.

What are the VA’s Pension and Compensation Programs?

The VA has a number of different kinds of pension and benefits programs to support those who have served our country, and their families as well. These pensions can largely be broken into two groups: needs-based pensions, and service-connected disability pensions.

The VA Veterans Pension Program

The Veterans Pension Program is a needs-based program that provides monthly payments to help Veterans cover monthly expenses and living costs. To qualify for the Veterans Pension program, Veterans must meet a number of eligibility requirements relating to their age, level of disability, and income or net worth.

Additionally, eligibility depends on having served during specified wartime periods. Currently, most Veterans Pensions benefits go to the Korean conflict, Vietnam War, and Gulf War Veterans; however, no official ‘end date’ has been set for the Gulf War, although this is subject to change.

Currently, nearly 300,000 veterans and survivors receive some kind of VA pension. The amount of each monthly payment can vary from Veteran to Veteran; each Veteran’s pension will be the difference between their annual income and the Maximum Annual Pension Rate, which is set by Congress. This amount is then divided by 12 and distributed monthly.

Service-Connected Disability Compensation

Veterans who were injured during their service and live with a disability as a result may also be entitled to pensions or compensation. Veterans who served in active duty, active duty for training, or inactive duty training and have an injury or illness as a result may be eligible for compensation.

The payments a Veteran receives for their service-related injuries or illnesses are based on their disability rating. In 2022, Veterans with no spouse or dependents can receive anywhere from $152.64 to $3,332.06 each month depending on their disability rating.  Unlike needs-based pensions, a Veteran does not have to have served in specified wartime periods.

What is Pension Poaching?

Pension poaching for needs-based pensions is a type of scam that manipulates a potential pensioner’s finances to create the illusion that they’re eligible for the Veterans Pension program, or other programs. Similar fraudulent program eligibility tactics have been used in Medicaid scams as well.

For needs-based pensions, a scammer will tell a Veteran they could qualify for a pension if they move their money to financial vessels such as trusts or annuities. The scammer will usually charge an upfront fee, or have the pension benefits deposited into accounts other than the Veteran’s.

With service-related disability benefits, a pension poacher will represent the Veteran throughout their claim or appeal process; however, instead of requesting a contingency fee for any back benefits awarded as is standard practice, they request a contingency fee for future benefits. This means a Veteran will only be receiving a portion of the future benefits they’re entitled to because a scammer is continually taking a percentage.

How Pension Poaching Hurts Veterans

Pension poaching is clearly an unethical scheme, designed to target and take advantage of vulnerable groups of Veterans who believe they’re being helped. Here’s just how it hurts them:

Needs-Based Pension Scams Can Have a Long-Term Harmful Effect on Veterans

Pension poaching for needs-based pensions work similar to Medicaid scams. Just like with Medicaid, a three-year look back is performed to assess a Veteran’s eligibility for the pension. When these assessments find that the Veteran’s finances have been manipulated in order to make them eligible, the Veteran will be responsible for repaying the benefits they received, even if the Veteran was unaware of how they have been taken advantage of.

When Veterans are forced to pay these benefits back, it can be challenging, as significant amounts of their funds may be locked away in trusts, annuities, or other investments that they can’t easily pull money from.

Additionally, if a Veteran is found to have fraudulently qualified for a pension, it can disqualify them from receiving various benefits in the future even if they weren’t aware of how they were being taken advantage of.

Service-Related Disability Pensions

Pension poaching for service-related disability pensions is nothing short of robbery. The VA’s payments based on Veterans’ disability ratings are specifically designed to help fill the gaps in income that may be impacted by the Veteran’s disability. When an individual or group dupes a Veteran into paying them a percentage of all future disability benefits, they’re directly limiting a Veteran’s ability to survive.

In many cases, the combination of fees paid to scammers, money that is difficult to access, and burdensome repayments can leave victims of pension poaching worse off than they started.

Remember, in almost every VA benefits appeal, a Veteran should never pay a representative’s fee upfront or be based on future payment of benefits (versus payment based on awareness of back benefits).

Common Signs You’re Dealing With a Pension Poacher

Pension poaching scammers have the potential to cause serious financial harm to Veterans that are already struggling. Fortunately, these unethical scammers have many easily-recognizable calling cards. Watch out for any of these signs when interacting with anyone advising you about VA pensions:

  • They make a guarantee: Because no adviser—even VA accredited attorneys, agents, or VSOs—can guarantee that you will receive VA benefits or service, you should be suspicious of people telling you they can.

  • They charge fees before a VA Regional Office issues a claim decision: Be wary of any advisor who charges fees before a RO’s claim decision. Most VA-accredited attorneys and claim agents only start to advise veterans after a claim decision has been made. 

  • Advising you to move your money: Pension poaching only works when scammers are able to manipulate an applicant’s finances by artificially making them seem lower than they truly are. If you’re being advised to move your money to investments like annuities or trusts in order to qualify for a VA pension, stop communicating with that adviser.

  • They cold call you: One giveaway of a pension poacher is the act of ‘poaching’ itself. These scammers seek out vulnerable Veterans to exploit, and will often contact you to tell you about all the benefits they can get you right away. Be suspicious of any adviser who seems to be ‘selling’ you something, offers things like free lunches at seminars, or otherwise contacts you unannounced.

  • They aren’t VA-accredited: One of the easiest ways to stay secure when consulting with an attorney or agent on VA pension or claims matters is to use the VA’s accreditation search to verify that they’re VA-accredited. Avoid taking advice from any professional who isn’t VA-accredited.

What to Do If You Are a Victim of Pension Poaching

Sadly, when it comes to pension poaching, Veterans’ options for recovery are limited. Veterans are ultimately responsible for their needs-based pension applications, and they may face legal complications if they’ve agreed to pay a percent of future benefits to the poacher.

However, if you were a victim of pension poaching, or interacted with an advisor you believe to have been a pension poacher, don’t hesitate to take the following actions:

Michael Eisenberg is a VA-Accredited Attorney You Can Trust

When it comes to getting the benefits you deserve, don’t take a chance with a lawyer who doesn’t know the VA system. Michael D.J. Eisenberg is a highly-skilled attorney who has advocated for military service members, federal employees, and Veterans for over a decade and a half.

Not every Veterans lawyer is truly familiar with service-related disability benefits and pensions, and the VA system. For skilled help appealing your claim, turn to Michael Eisenberg. Mr. Eisenberg will help prepare your claim or appeal in a highly detailed and strategic manner, while keeping you informed the entire time.

Mr. Eisenberg only charges the standard contingency fee, and never requires a portion of the Veteran’s future benefits. To schedule a free consultation regarding your VA benefits appeal with a VA-accredited attorney you can trust, contact The Law Office of Michael D.J. Eisenberg today.

Note: Consultations for Veterans’ Benefits Appeals Matters are free; however, consultations for Military Records Issues and Medical/Physical Evaluation Boards are paid.

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