Veterans Pensions Protection Act of 2016

This bill exempts the following payments from annual income determinations with respect to pensions for veterans and surviving spouses and children of veterans: (1) reimbursements, including insurance settlement payments, for medical expenses related to an accident, theft, loss, or casualty, up to the costs of medical care provided to the victim of such event; and (2) payments for pain and suffering, including insurance settlement payments and general damages awarded by a court related to an accident, theft, loss, or casualty loss up to an amount determined by the Department of Veterans Affairs on a case-by-case basis.