38 C.F.R. § 3.902
(c) Forfeiture before September 2, 1959. Where forfeiture for treasonable acts was declared before September 2, 1959, the Secretary may pay any part of benefits so forfeited to the dependents of the person provided the decision to apportion was authorized prior to September 2, 1959, except that the amount may not be in excess of that which the dependent would be entitled to as a death benefit.
(Authority: 38 U.S.C. 6104(c))
(1) Compensation. Whenever a veteran entitled to disability compensation has forfeited his or her right, any part of the compensation payable except for the forfeiture may be paid to the veteran's spouse, children and parents. The total amount payable will be the lesser of these amounts:
(ii) Amount of compensation payable but for the forfeiture.
No benefits are payable to any person participating in the treasonable act causing the forfeiture.
(2) Pension. Whenever a veteran entitled to pension has forfeited his or her right, any part of the pension payable except for the forfeiture provision may be paid to the veteran's spouse and children. The total amount payable will be the lesser of these amounts:
(ii) Amount of pension being paid the veteran at the time of forfeiture.
No benefits are payable to any person who participated in the treasonable act causing the forfeiture.
(d) Forfeiture after September 1, 1959. After September 1, 1959, forfeiture by reason of a treasonable act may be declared only
(3) The treasonable act was committed in the Philippine Islands.
No part of the benefits forfeited by the person primarily entitled shall be paid to any dependent.
(Authority: 38 U.S.C. 6104)
[27 FR 8590, Aug. 28, 1962; 53 FR 17934, May 19, 1988]