In countries like the US and France―which deduct allowances that compensate for additional expenses―core veterans' compensation benefits, such as disability pensions, are generally not deducted. By contrast, in countries such as the UK and Australia, veterans’ benefits are either fully disregarded or partially exempted in the means-testing of social assistance.
The treatment of veterans’ benefits within public assistance schemes reflects a complex interplay of factors, including societal perceptions of veterans’ entitlements, the institutional relationship between the social security system and the veterans’ compensation system, and the overall level and structure of benefit provision.
In the Korean context, it is necessary to consider expanding disregards or exemptions in the assessment of the assessed amount of income with respect to certain categories of veterans’ benefits. In particular, this would include: 1) benefits targeted at economically vulnerable veteran groups; 2) payments with an honorific character reflecting service and sacrifice; and 3) allowances of an additional cost-compensatory nature, especially those related to healthcare expenditures.