What does the term "compensation and pension" refer to?

The term "compensation and pension" specifically refers to the two primary types of benefits that the Department of Veterans Affairs provides to veterans. Compensation is designed for those veterans who have sustained disabilities as a result of their military service. This benefit is a monetary payment intended to compensate for the loss of earning capacity due to service-related disabilities.

On the other hand, pensions are financial assistance programs specifically aimed at veterans who have limited income and who have served a minimum length of time in military service. These pensions support veterans who may not have sufficient financial resources to meet basic living expenses.

Thus, the combination of compensation and pension encompasses vital financial support tailored to address the needs of veterans—acknowledging their sacrifices and ensuring a degree of financial security. This accurate understanding differentiates these benefits from other options, such as those aimed at family support or training for employment, which do not fall under the specific category of "compensation and pension."