### Section B. Initial Awards to Dependents

#### Overview

+------------+---------------------------------------------------------+
| #          | > This section contains the following topics:           |
| #### In th |                                                         |
| is Section |                                                         |
+------------+---------------------------------------------------------+

  ------------ ---------------------------------------------- ------------
  Topic        Topic Name                                     See Page

  9            General Information on Initial Awards to       3-B-2
               Dependents                                     

  10           Determining the Effective Date When the        3-B-4
               Veteran Dies After Separation From Service     

  11           Determining the Surviving Spouse's Entitlement 3-B-7
               to Benefits for the Month of Death             

  12           Payment of the Veteran's Benefit for the Month 3-B-13
               of Death Under 38 CFR 3.20(c)                  

  13           Application of 38 CFR 3.107 on Awards to       3-B-18
               Surviving Spouses or Children                  

  14           Application of 38 CFR 3.107 on Awards to       3-B-21
               Parents                                        

  15           Application of 38 CFR 3.650 When Additional    3-B-22
               Dependents File a Claim                        
  ------------ ---------------------------------------------- ------------

#### 9. General Information on Initial Awards to Dependents

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on initial awards to  |
| troduction | > dependents. It includes information on                |
|            |                                                         |
|            | -   determining the effective date when death occurs    |
|            |     during service                                      |
|            |                                                         |
|            | -   handling claims when all dependents do not apply,   |
|            |     and                                                 |
|            |                                                         |
|            | -   handling claims in which the claimant is awarded    |
|            |     less than the full rate.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > December 13, 2005                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Use the following references to determine the         |
| ### a. Det | > appropriate effective date of an award when death     |
| ermining t | > occurs during service,                                |
| he Effecti |                                                         |
| ve Date Wh | -   [38 CFR                                             |
| en Death O |     3.400(c)](http://                                   |
| ccurs Duri | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_400.DOC) |
| ng Service |                                                         |
|            | -   [38 CFR                                             |
|            |     3.31](http://                                       |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_31.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   M21-1MR, Part IV, Subpart iii, 3.K.48.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Generally, award action on a claim filed by a         |
|  Handling  | > surviving spouse will not be delayed if there is a    |
| Claims Whe | > child for whom a claim has not been filed; nor, will  |
| n All Depe | > a claim filed by a child be delayed if a surviving    |
| ndents Do  | > spouse has not filed a claim.                         |
| Not Apply  | >                                                       |
|            | > Follow the steps in the table below to control claims |
|            | > in which not all dependents apply. See [38 CFR        |
|            | > 3.107](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38cfr/bookb/part3/s3_106.doc); |
|            | > M21-1MR, Part IV, Subpart iii, 3.B.12; and M21-1MR,   |
|            | > Part IV, Subpart iii, 3.B.13.                         |
+------------+---------------------------------------------------------+

  -------- --------------------------------------------------------------
  Step     Action

  1        Make any necessary attempts to locate additional dependent(s)
           for the purpose of furnishing an application.

  2        Pay the dependent that filed a claim at the same rate as if
           all dependents had filed a claim.

  3        If a surviving spouse applies, withhold apportioned shares for
           any children who have not filed a claim; if the spouse has not
           applied, award an apportioned share to the child who filed the
           claim.

  4        Maintain an appropriate control for retroactive adjustment if
           claims are not received at the expiration of the period for
           which retroactive benefits may be awarded.

  5        At the expiration of the control, and if no other dependent
           has filed a claim, amend the running award to authorize the
           full rate from the date benefits were first awarded.
  -------- --------------------------------------------------------------

Continued on next page

9\. General Information on Initial Awards to Dependents, Continued

+------------+---------------------------------------------------------+
| #          | > If a case is encountered in which the claimant was    |
| #### c. Ha | > awarded less than the full rate and the additional    |
| ndling Cla | > claimant, who was receiving an apportioned share, is  |
| ims in Whi | > no longer entitled to benefits                        |
| ch the Cla |                                                         |
| imant Is A | -   adjust the claim without regard to the effective    |
| warded Les |     date requirements of [38 CFR                        |
| s than the |     3.114(a)](http://w                                  |
|  Full Rate | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_114.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   authorize the retroactive increase effective as of  |
|            |     the commencing date of the award, but not prior to  |
|            |     December 1, 1962.                                   |
|            |                                                         |
|            | > ***Note***: If the payee has died, benefits may be    |
|            | > adjusted and payable as an accrued benefit, subject   |
|            | > to the two-year limitation on payment of accrued,     |
|            | > covering a retroactive period.                        |
|            | >                                                       |
|            | > ***Reference***: For more information on accrued      |
|            | > benefits, see                                         |
|            |                                                         |
|            | -   [38 CFR                                             |
|            |     3.1000](http://ww                                   |
|            | w.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_1000.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   M21-1MR, Part VIII.                                 |
+------------+---------------------------------------------------------+

#### 10. Determining the Effective Date When the Veteran Dies After Separation From Service

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on determining the    |
| troduction | > effective date of death benefits when the veteran     |
|            | > dies after separation from service. It includes       |
|            | > information on determining the effective date when    |
|            | > death occurs                                          |
|            |                                                         |
|            | -   before October 1, 1982                              |
|            |                                                         |
|            | -   after October 1, 1982                               |
|            |                                                         |
|            | -   after October 1, 1984 in non service-connected      |
|            |     death cases, and                                    |
|            |                                                         |
|            | -   after December 10, 2004 in non service-connected    |
|            |     death cases.                                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > December 13, 2005                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. D | > If the death of a veteran after separation from       |
| etermining | > service occurred before October 1, 1982, then the     |
|  the Effec | > effective date for original awards of death           |
| tive Date  | > compensation, pension, and Dependency and Indemnity   |
| When Death | > Compensation (DIC) is the                             |
|  Occurs Be |                                                         |
| fore Octob | -   first day of the month in which the veteran died    |
| er 1, 1982 |     for claims that are filed within one year after the |
|            |     date of death, or                                   |
|            |                                                         |
|            | -   date the claim was received for claims that are     |
|            |     *not* filed within one year after the date of       |
|            |     death.                                              |
+------------+---------------------------------------------------------+

Continued on next page

10\. Determining the Effective Date When the Veteran Dies After
Separation From Service, Continued

+------------+---------------------------------------------------------+
| #####      | > If the death of a veteran after separation from       |
|  b. Determ | > service occurred on or after October 1, 1982, then    |
| ining the  | > the effective date for original awards of death       |
| Effective  | > compensation, pension, and DIC is the                 |
| Date When  |                                                         |
| Death Occu | -   first day of the month in which the veteran died    |
| rs on or A |     for claims that are filed within one year after the |
| fter Octob |     date of death, or                                   |
| er 1, 1982 |                                                         |
|            | -   date the claim was received for claims that are     |
|            |     *not* filed within one year after the date of       |
|            |     death.                                              |
|            |                                                         |
|            | > For children or parents, the effective date is the    |
|            | > first day of the calendar month following the death   |
|            | > of the veteran.                                       |
|            | >                                                       |
|            | > For surviving spouses, the effective date is          |
|            | > determined under [38 CFR                              |
|            | > 3.20(b](http://                                       |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC)) |
|            | > by the                                                |
|            |                                                         |
|            | -   rate of benefits payable, and                       |
|            |                                                         |
|            | -   date of the claim.                                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > For surviving spouses of veterans whose death was not |
| c. Determi | > service-connected and death occurred on or after      |
| ning the E | > October 1, 1984, the effective date is the            |
| ffective D |                                                         |
| ate for De | -   first day of the month of death if the claim is     |
| ath on or  |     received within 45 days of death, otherwise         |
| After Octo |                                                         |
| ber 1, 198 | -   date of receipt of the claim.                       |
| 4 in NSC D |                                                         |
| eath Cases |                                                         |
+------------+---------------------------------------------------------+

+-----------------------------------------------------------------------+
| > ***Note***: Effective dates for initial nonservice-connected death  |
| > awards are controlled by 38 [CFR                                    |
| > 3.400(c)(3)                                                         |
| (ii)](http://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_400.DOC). |
+-----------------------------------------------------------------------+

Continued on next page

10\. Determining the Effective Date When the Veteran Dies After
Separation From Service, Continued

+------------+---------------------------------------------------------+
| ##### d    | > PL 108-454 rescinded the 45-day provision, effective  |
| . Determin | > December 10, 2004. Use the table below to determine   |
| ing the Ef | > the proper effective date when a claim for death      |
| fective Da | > pension is received on or after December 10, 2004.    |
| te When a  |                                                         |
| Claim for  |                                                         |
| NSC Death  |                                                         |
| Pension Is |                                                         |
|  Received  |                                                         |
| on or Afte |                                                         |
| r December |                                                         |
|  10, 2004  |                                                         |
+------------+---------------------------------------------------------+

+-----------------------------------+----------------------------------+
| If ...                            | Then the Effective Date Is ...   |
+-----------------------------------+----------------------------------+
| -   the date of death is on or    | the first day of the month of    |
|     after December 10, 2004, and  | death.                           |
|                                   |                                  |
| -   the claim is received within  |                                  |
|     one year of death             |                                  |
+-----------------------------------+----------------------------------+
| -   the date of death is on or    | the date of receipt of claim.    |
|     after December 10, 2004, and  |                                  |
|                                   |                                  |
| -   the claim is not received     |                                  |
|     within one year of death      |                                  |
+-----------------------------------+----------------------------------+
| -   the date of death is prior to | the earlier of the following:    |
|     December 10, 2004, and        |                                  |
|                                   | -   December 10, 2004, or        |
| -   the claim is received         |                                  |
|                                   | -   date of receipt of claim.    |
| ```{=html}                        |                                  |
| <!-- -->                          |                                  |
| ```                               |                                  |
| -   on or after December 10,      |                                  |
|     2004,                         |                                  |
|                                   |                                  |
| -   within one year of death, and |                                  |
|                                   |                                  |
| -   more than 45 days after death |                                  |
+-----------------------------------+----------------------------------+
| -   the date of death is prior to | the first day of the month of    |
|     December 10, 2004, and        | death, as provided by previous   |
|                                   | law.                             |
| -   the claim is received         |                                  |
|                                   |                                  |
| ```{=html}                        |                                  |
| <!-- -->                          |                                  |
| ```                               |                                  |
| -   on or after December 10,      |                                  |
|     2004,                         |                                  |
|                                   |                                  |
| -   within one year of death, and |                                  |
|                                   |                                  |
| -   within 45 days of the date of |                                  |
|     death                         |                                  |
+-----------------------------------+----------------------------------+

#### 11. Determining the Surviving Spouse's Entitlement to Benefits for the Month of Death

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on determining the    |
| troduction | > surviving spouse's entitlement to the deceased        |
|            | > veteran's rate of benefits for the month of death. It |
|            | > includes information on                               |
|            |                                                         |
|            | -   determining the surviving spouse's benefit rate for |
|            |     the month of death when death occurred              |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   on or after October 1, 1982, and                    |
|            |                                                         |
|            | -   after November 30, 1962, but before October 1, 1982 |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   preparing the award to the surviving spouse when    |
|            |     death occurred after November 30, 1962 but before   |
|            |     October 1, 1982                                     |
|            |                                                         |
|            | -   preparing the award to the surviving spouse when    |
|            |     death occurred after October 1, 1982                |
|            |                                                         |
|            | -   determining the appropriate award when              |
|            |     apportionment is required                           |
|            |                                                         |
|            | -   applying the provisions of [38 CFR                  |
|            |     3.20](http://                                       |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   preparing an amended award under [38 CFR            |
|            |     3.20](http://                                       |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 1, 2008                                          |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > Use the table below to determine the surviving        |
| . Determin | > spouse's benefit rate for the month of the veteran's  |
| ing the Su | > death if the veteran died on or after October 1,      |
| rviving Sp | > 1982.                                                 |
| ouse's Ben | >                                                       |
| efit Rate  | > ***Note***: The surviving spouse must establish       |
| for the Mo | > entitlement commencing the first day of the month of  |
| nth of Dea | > the veteran's death after separation from service.    |
| th When De | >                                                       |
| ath Occurr | > ***Reference***: For more information on determining  |
| ed on or A | > the effective date, see M21-1MR, Part IV, Subpart     |
| fter Octob | > iii, 3.B.9.b.                                         |
| er 1, 1982 |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

11\. Determining the Surviving Spouse's Entitlement to Benefits for the
Month of Death, Continued

  -----------------------------------------------------------------------
  a\. Determining the Surviving Spouse's Benefit Rate for the Month of
  Death When Death Occurred on or After October 1, 1982 (continued)

  -----------------------------------------------------------------------

+-----------------------------+----------------------------------------+
| If the veteran ...          | Then the surviving spouse is ...       |
+-----------------------------+----------------------------------------+
| died on or after October 1, | entitled to payment for the month of   |
| 1982                        | death *only* if the veteran's rate for |
|                             | the month of death is *greater* than   |
|                             | the monthly rate of death pension or   |
|                             | DIC to which the surviving spouse is   |
|                             | entitled.                              |
|                             |                                        |
|                             | ***Note***: Payments of death pension  |
|                             | or DIC commence the first day of the   |
|                             | month following death.                 |
+-----------------------------+----------------------------------------+
| -   died on or after        | *not* entitled to payment for the      |
|     October 1, 1982         | month of death, if the veteran's net   |
|                             | Department of Veterans Affairs (VA)    |
| -   was receiving military  | benefit would have been less that the  |
|     retired pay, and        | rate payable to the surviving spouse   |
|                             | in his/her own right, even though the  |
| -   would have been awarded | veteran's gross entitlement to VA      |
|     the available           | benefits might have exceeded the       |
|     difference for the      | surviving spouse's rate.               |
|     month of death pending  |                                        |
|     a total waiver of       |                                        |
|     retired pay             |                                        |
+-----------------------------+----------------------------------------+

+-----------------------------------------------------------------------+
| > ***Important***:                                                    |
|                                                                       |
| -   As a surviving spouse is entitled to either the month of death    |
|     payment at the veteran's rate or payment for death pension or     |
|     DIC, refrain from preparing a check intercept mailgram per        |
|     M21-1MR, Part III, Subpart ii, 8.E.20.b whenever the veteran's    |
|     award included payment for a spouse.                              |
|                                                                       |
| -   If an adjustment in the surviving spouse's death benefits is      |
|     subsequently required because receipt of the month of death       |
|     payment was not warranted as that payment was *less* than the     |
|     death benefit                                                     |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   withhold the month of death payment amount from the death benefit |
|     under type 1 withholding                                          |
|                                                                       |
| -   suppress the system-generated award letter, if appropriate, and   |
|                                                                       |
| -   annotate the award, "Month of death payment withheld per 38 CFR   |
|     3.20(b) and M21-1MR, Part IV, Subpart iii, 3.B.11.a."             |
+-----------------------------------------------------------------------+

Continued on next page

11\. Determining the Surviving Spouse's Entitlement to Benefits for the
Month of Death, Continued

+------------+---------------------------------------------------------+
| #          | > If the veteran died after November 30, 1962, but      |
| #### b. De | > before October 1, 1982, and                           |
| termining  | >                                                       |
| the Surviv | > was receiving, or was entitled to receive, disability |
| ing Spouse | > compensation, pension, or                             |
| 's Benefit |                                                         |
|  Rate for  | Medal of Honor pension, then the rate payable for the   |
| the Month  | month of death under [38 CFR                            |
| of Death W | 3.20](http:/                                            |
| hen Death  | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
| Occurred A | is whichever of the following is greater:               |
| fter Novem |                                                         |
| ber 30, 19 | -   the monthly rate of the specific death benefit      |
| 62, but Be |     awarded, or                                         |
| fore Octob |                                                         |
| er 1, 1982 | -   the full rate that would have been payable to the   |
|            |     veteran.                                            |
|            |                                                         |
|            | > ***Note***: The full rate payable to the veteran      |
|            | > includes                                              |
|            |                                                         |
|            | -   additional compensation for dependents              |
|            |                                                         |
|            | -   Special Monthly Compensation (SMC)                  |
|            |                                                         |
|            | -   allowance for Aid and Attendance (A&A) and          |
|            |     Housebound status                                   |
|            |                                                         |
|            | -   Medal of Honor pension, and                         |
|            |                                                         |
|            | -   any apportioned shares.                             |
+------------+---------------------------------------------------------+

Continued on next page

11\. Determining the Surviving Spouse's Entitlement to Benefits for the
Month of Death, Continued

+------------+---------------------------------------------------------+
| ####       | > This block explains how to prepare an award to a      |
| # c. Prepa | > surviving spouse from the first day of the month of   |
| ring the A | > the veteran's death, if death occurred after November |
| ward to th | > 30, 1962 and before October 1, 1982.                  |
| e Survivin | >                                                       |
| g Spouse W | > Use the instruction in the following table to         |
| hen Death  | > initiate the appropriate payment to the surviving     |
| Occurred A | > spouse:                                               |
| fter Novem |                                                         |
| ber 30, 19 |                                                         |
| 62, but Be |                                                         |
| fore Octob |                                                         |
| er 1, 1982 |                                                         |
+------------+---------------------------------------------------------+

+------------------------------+---------------------------------------+
| If the veteran died after    | Then prepare the surviving spouse     |
| November 30, 1962, but       | award to reflect ...                  |
| before October 1, 1982, and  |                                       |
| ...                          |                                       |
+------------------------------+---------------------------------------+
| the veteran's monthly rate   | -   month of death award line (using  |
| was greater that the         |     the veteran's rate) with          |
| surviving spouse's death     |                                       |
| benefit rate                 | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   reason code 00, and               |
|                              |                                       |
|                              | -   the veteran's entitlement code,   |
|                              |     such as 41 or 71, and             |
|                              |                                       |
|                              | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   first award line of the recurring |
|                              |     death benefit (month following    |
|                              |     death), with                      |
|                              |                                       |
|                              | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   reason code 00, and               |
|                              |                                       |
|                              | -   the appropriate entitlement code  |
|                              |     for the recurring death benefit,  |
|                              |     such as 47 or 77.                 |
+------------------------------+---------------------------------------+
| the veteran's monthly rate   | -   month of death award line (using  |
| was less than the surviving  |     the death benefit rate) with      |
| spouse's death benefit rate  |                                       |
|                              | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   reason code 00, and               |
|                              |                                       |
|                              | -   the appropriate entitlement code  |
|                              |     for the recurring death benefit,  |
|                              |     such as 47 or 77.                 |
+------------------------------+---------------------------------------+

Continued on next page

11\. Determining the Surviving Spouse's Entitlement to Benefits for the
Month of Death, Continued

+------------+---------------------------------------------------------+
| ####       | > This block explains how to prepare an award to pay a  |
| # d. Prepa | > surviving spouse from the first day of the month of   |
| ring the A | > the veteran's death, if death occurred after October  |
| ward to th | > 1, 1982.                                              |
| e Survivin | >                                                       |
| g Spouse W | > Use the instructions in the following table to        |
| hen Death  | > initiate the appropriate payment to the surviving     |
| Occurred A | > spouse:                                               |
| fter Octob |                                                         |
| er 1, 1982 |                                                         |
+------------+---------------------------------------------------------+

+------------------------------+---------------------------------------+
| If the veteran died after    | Then, prepare the surviving spouse    |
| October 1, 1982, and ...     | award to reflect ...                  |
+------------------------------+---------------------------------------+
| the veteran's monthly rate   | -   month of death award line (using  |
| was greater that the         |     the veteran's rate) with          |
| surviving spouse's death     |                                       |
| benefit rate                 | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   reason code 00, and               |
|                              |                                       |
|                              | -   the veteran's entitlement code,   |
|                              |     such as 41 or 71, and             |
|                              |                                       |
|                              | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   first award line of the recurring |
|                              |     death benefit (month following    |
|                              |     death), with                      |
|                              |                                       |
|                              | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   reason code 00, and               |
|                              |                                       |
|                              | -   the appropriate entitlement code  |
|                              |     for the recurring death benefit,  |
|                              |     such as 47 or 77.                 |
+------------------------------+---------------------------------------+
| the veteran's monthly rate   | -   no payment for the month of the   |
| was less than the surviving  |     veteran's death                   |
| spouse's death rate          |                                       |
|                              | -   first award line of the recurring |
|                              |     death benefit (month following    |
|                              |     death), use                       |
|                              |                                       |
|                              | ```{=html}                            |
|                              | <!-- -->                              |
|                              | ```                                   |
|                              | -   reason code 00, and               |
|                              |                                       |
|                              | -   the appropriate entitlement code  |
|                              |     for the recurring death benefit,  |
|                              |     such as 47 or 77.                 |
+------------------------------+---------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > If the surviving spouse is entitled to the veteran's  |
| ## e. Dete | > disability rate for the month of death, and the award |
| rmining th | > is to be apportioned, then the                        |
| e Appropri |                                                         |
| ate Award  | -   child's apportioned share for the month of death is |
| When Appor |     the same apportioned rate payable to the child for  |
| tionment I |     the month after the month of death, based on the    |
| s Required |     recurring death benefit rate, and                   |
|            |                                                         |
|            | -   the surviving spouse's apportioned share for the    |
|            |     month of death is the difference between the        |
|            |     veteran's disability rate and the child's           |
|            |     apportioned share.                                  |
+------------+---------------------------------------------------------+

Continued on next page

11\. Determining the Surviving Spouse's Entitlement to Benefits for the
Month of Death, Continued

+------------+---------------------------------------------------------+
| #####      | > [38 CFR                                               |
| f. Applyin | > 3.20(b)](http:/                                       |
| g Provisio | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
| ns of 38 C | > applies only to surviving spouse awards if            |
| FR 3.20(b) | > entitlement to death benefits commences the first day |
|            | > of the month of the death of a veteran.               |
|            | >                                                       |
|            | > ***Restriction***: [38 CFR                            |
|            | > 3.20(b)](http:/                                       |
|            | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
|            | > does *not* apply if the surviving spouse's            |
|            | > entitlement is limited to death pension commencing    |
|            | > the first day of the year following the year in which |
|            | > the veteran died because of excessive income during   |
|            | > the year of death.                                    |
|            | >                                                       |
|            | > ***Note***: If entitlement commences after the first  |
|            | > day of the month of the death of the veteran, the     |
|            | > surviving spouse may be eligible for the month of     |
|            | > death check under [38 CFR                             |
|            | > 3.20(c)](http://                                      |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Prepare an amended award under [38 CFR                |
| g. Prepari | > 3.20(b)](http:/                                       |
| ng an Amen | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
| ded Award  | > to pay the surviving spouse the increased monthly     |
| Under 38 C | > benefit rate for the month of death if                |
| FR 3.20(b) |                                                         |
|            | -   the surviving spouse's award of DIC or death        |
|            |     pension is effective as of the first day of the     |
|            |     month                                               |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   following the veteran's death, when death occurred  |
|            |     after September 30, 1982, or                        |
|            |                                                         |
|            | -   of the veteran's death, when death occurred after   |
|            |     November 30, 1962, but before October 1, 1982, and  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   it is later determined that the veteran was         |
|            |     entitled to a greater rate.                         |
+------------+---------------------------------------------------------+

#### 12. Payment of the Veteran's Benefit for the Month of Death Under 38 CFR 3.20(c)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on payment of the     |
| troduction | > veteran's rate for the month of death under 38 CFR    |
|            | > 3.20(c). It includes information on                   |
|            |                                                         |
|            | -   payment of the veteran's benefit for the month of   |
|            |     death                                               |
|            |                                                         |
|            | -   what constitutes a claim                            |
|            |                                                         |
|            | -   verifying the identity of the claimant              |
|            |                                                         |
|            | -   considering                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   requests accompanied by *VA Form 21-534,            |
|            |     Application for Dependency and Indemnity            |
|            |     Compensation, Death Pension, and Accrued Benefits*, |
|            |     and                                                 |
|            |                                                         |
|            | -   eligibility for benefits                            |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   providing notification                              |
|            |                                                         |
|            | -   payment under 38 CFR 3.20(c)                        |
|            |                                                         |
|            | -   requirements for a month of death check             |
|            |     determination                                       |
|            |                                                         |
|            | -   examples of payment under 38 CFR 3.20(c)            |
|            |                                                         |
|            | -   example of payment under 38 CFR 3.20(b)             |
|            |                                                         |
|            | -   example of non-payment under 38 CFR 3.20(b) and     |
|            |     (c), and                                            |
|            |                                                         |
|            | -   establishing a withholding.                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 1, 2008                                          |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Under *Public Law (PL) 104-275*, Section 506, if the  |
| #### a. Pa | > surviving spouse of a veteran who dies after December |
| yment of V | > 31, 1996, is *not* entitled to death benefits for the |
| eteran's B | > month of veteran's death, then he/she is entitled to  |
| enefit for | > a one-time payment of the benefit the veteran would   |
|  the Month | > have received for the month of death.                 |
|  of Death  | >                                                       |
|            | > ***Note***: A merit determination for death benefits  |
|            | > is not required for non-entitlement to exist in this  |
|            | > circumstance.                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Consider any communication from the surviving spouse  |
| # b. What  | > requesting the veteran's benefit for the month of     |
| Constitute | > death as a claim for payment for the month of death   |
| s a Claim? | > under [38 U.S.C.                                      |
|            | > 5101](http://straylight.law.cornell.edu/              |
|            | uscode/html/uscode38/usc_sec_38_00005101----000-.html). |
|            | >                                                       |
|            | > ***Notes***:                                          |
|            |                                                         |
|            | -   Telephone or written communications are included in |
|            |     this stipulation.                                   |
|            |                                                         |
|            | -   Document telephone requests on *VA Form 119*,       |
|            |     *Report of* *Contact*.                              |
+------------+---------------------------------------------------------+

Continued on next page

12\. Payment of the Veteran's Benefit for the Month of Death Under 38
CFR 3.20(c), Continued

+------------+---------------------------------------------------------+
| ##### c    | > The caller must provide oral verification             |
| . Verifyin | > satisfactory to the Veterans Service Representative   |
| g the Iden | > (VSR) that the caller is the surviving spouse.        |
| tity of th | >                                                       |
| e Claimant | > Undertake appropriate development if there is any     |
|            | > question as to the validity of the claimant's status  |
|            | > as the surviving spouse. This development can include |
|            |                                                         |
|            | -   any legal documents that would establish the        |
|            |     relationship, such as                               |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   marriage certificates, or                           |
|            |                                                         |
|            | -   divorce decrees for prior marriages, or             |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   requests to legal entities for such legal documents |
|            |     that are known to exist.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > Make a merit determination as to the surviving        |
| Considerin | > spouse's entitlement to death benefits prior to       |
| g Requests | > awarding the veteran's benefit for the month of       |
|  Accompani | > death, when a request for the latter is accompanied   |
| ed by VA F | > by *VA Form 21-534, Application for Dependency and    |
| orm 21-534 | > Indemnity Compensation, Death Pension, and Accrued    |
|            | > Benefits*.                                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The claimant is still eligible for the veteran's      |
|  e. Consid | > benefit for the month of death regardless of whether  |
| ering Elig | > or not the claimant applies for                       |
| ibility fo |                                                         |
| r Benefits | -   DIC more than one year after the veteran's death    |
|            |                                                         |
|            | -   death pension, after December 10, 2004, and more    |
|            |     than one year after the veteran's death with        |
|            |     entitlement established, or                         |
|            |                                                         |
|            | -   death pension, prior to December 10, 2004, and more |
|            |     than 45 days after the veteran's death with         |
|            |     entitlement established.                            |
+------------+---------------------------------------------------------+

Continued on next page

12\. Payment of the Veteran's Benefit for the Month of Death Under 38
CFR 3.20(c), Continued

+------------+---------------------------------------------------------+
| #          | > Use a locally-generated letter to send one of the     |
| #### f. Pr | > following two messages, depending on whether or not   |
| oviding No | > Treasury Inquiry (TINQ) shows the deceased veteran's  |
| tification | > check or direct deposit has been returned:            |
|            |                                                         |
|            | -   "*We will reissue payment to you,*" or              |
|            |                                                         |
|            | -   "*Since you are entitled to the veteran's payment   |
|            |     for the month of death, you are not required to     |
|            |     return the check or direct deposi*t."               |
|            |                                                         |
|            | > In either instance                                    |
|            |                                                         |
|            | -   send the claims folder to the finance activity      |
|            |                                                         |
|            | -   include the following notation on the OF41:         |
|            |     "*Surviving spouse entitled to one-time payment of* |
|            |     **\[amount of monthly compensation or pension       |
|            |     received by the veteran at time of death\]"** per   |
|            |     [38 CFR                                             |
|            |     3.20(c)](http://                                    |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   notify the finance activity to                      |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   remove the overpayment (08E transaction) if the     |
|            |     payment has not been returned, or                   |
|            |                                                         |
|            | -   reissue payment to the surviving spouse (06A        |
|            |     transaction) if the payment has been returned.      |
|            |                                                         |
|            | > ***Notes***:                                          |
|            |                                                         |
|            | -   Input of the 08E transaction must be accomplished   |
|            |     within 45 days of the debt being established.       |
|            |                                                         |
|            | -   The finance activity must notify the Debt           |
|            |     Management Center (DMC) of the action so it can     |
|            |     stop the reclamation process.                       |
|            |                                                         |
|            | -   If the debt has been in the system for 60 days, the |
|            |     DMC cannot stop the reclamation process when the    |
|            |     finance activity inputs the 08E transaction.        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### g    | > Do not confuse payment as described under [38 CFR     |
| . Payment  | > 3.20(c)](http:/                                       |
| Under 38 C | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
| FR 3.20(c) | > with payment of the veteran's rate for the month of   |
|            | > death under [38 CFR                                   |
|            | > 3.20(b)](http://                                      |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC). |
|            | >                                                       |
|            | > Under [38 CFR                                         |
|            | > 3.20(b)](http://                                      |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC), |
|            | > payment is made to the surviving spouse for the month |
|            | > of death on the original death award.                 |
+------------+---------------------------------------------------------+

Continued on next page

12\. Payment of the Veteran's Benefit for the Month of Death Under 38
CFR 3.20(c), Continued

+------------+---------------------------------------------------------+
| ##### h. R | > A determination regarding the surviving spouse's      |
| equirement | > eligibility to receive the veteran's rate for the     |
| s for Mont | > month of death must be made if                        |
| h of Death |                                                         |
|  Check Det | -   the veteran was in receipt of benefits at the time  |
| ermination |     of death, and                                       |
|            |                                                         |
|            | -   a merit determination regarding the surviving       |
|            |     spouse's claim for improved death pension or DIC    |
|            |     has been made.                                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### i.   | > ***Example 1***: A surviving spouse's entitlement to  |
| Examples o | > death benefits has been established. The claim for    |
| f Payment  | > benefits was received more than one year after the    |
| Under 38 C | > veteran's death.                                      |
| FR 3.20(c) | >                                                       |
|            | > ***Result***: The surviving spouse is eligible for a  |
|            | > benefit for the month of death in an amount equal to  |
|            | > the veteran's rate of payment under 38 CFR 3.20(c).   |
|            | > Send an *OF 41* to the finance activity.              |
|            | >                                                       |
|            | > ***Example 2***: The surviving spouse's entitlement   |
|            | > to death benefits has been denied.                    |
|            | >                                                       |
|            | > ***Result***: The surviving spouse is eligible for    |
|            | > the veteran's benefit for the month of death under 38 |
|            | > CFR 3.20(c)(1). Payment for the month of death is     |
|            | > made by sending an *OF 41* to the finance activity.   |
|            | >                                                       |
|            | > ***Reference***: For information on sending an *OF    |
|            | > 41* to the finance activity, see M21-1MR, Part IV,    |
|            | > Subpart iii, 3.B.12.f.                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### j.   | > A surviving spouse's entitlement to death benefits    |
|  Example o | > has been established. The claim for benefits was      |
| f Payment  | > received within one year of the veteran's death. The  |
| Under 38 C | > surviving spouse's rate of payment is less than the   |
| FR 3.20(b) | > veteran's rate for the month of death.                |
|            | >                                                       |
|            | > ***Result***: The surviving spouse is eligible for    |
|            | > the veteran's rate for the month of death under 38    |
|            | > CFR 3.20(b). Payment for the month of death is made   |
|            | > on the original award.                                |
|            | >                                                       |
|            | > ***Reference***: For information on paying the        |
|            | > veteran's rate for the month of death on the original |
|            | > award, see M21-1MR, Part IV, Subpart iii, 3.B.11.d.   |
+------------+---------------------------------------------------------+

Continued on next page

12\. Payment of the Veteran's Benefit for the Month of Death Under 38
CFR 3.20(c), Continued

+------------+---------------------------------------------------------+
| #          | > A surviving spouse's entitlement to death benefits    |
| #### k. Ex | > has been established. The claim for benefits was      |
| ample of N | > received within one year of the veteran's death. The  |
| on-Payment | > surviving spouse's rate of payment is greater than    |
|  Under 38  | > the veteran's rate for the month of death.            |
| CFR 3.20(b |                                                         |
| ) and 38 C | -   The month of death check cannot be paid under 38    |
| FR 3.20(c) |     CFR 3.20(b) since DIC/death pension is the greater  |
|            |     benefit.                                            |
|            |                                                         |
|            | -   Additional benefit in the amount of the veteran's   |
|            |     rate for the month of death check cannot be paid    |
|            |     under 38 CFR 3.20(c) since the surviving spouse is  |
|            |     entitled to death benefits for the month of death.  |
|            |                                                         |
|            | > ***Note***: Although the surviving spouse is entitled |
|            | > to benefits from the first day of the month in which  |
|            | > the veteran died, he/she will not receive any payment |
|            | > for that month due to the limitations established in  |
|            | > 38 CFR 3.20(b).                                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If, after receiving payment under [38 CFR             |
| l. Establi | > 3.20(c)](http://                                      |
| shing a Wi | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC), |
| thholding  | > the surviving spouse becomes entitled to death        |
|            | > benefits from the date of the veteran's death at a    |
|            | > rate higher than the amount paid under [38 CFR        |
|            | > 3.20(c)](http:/                                       |
|            | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
|            |                                                         |
|            | -   withhold the amount paid under [38 CFR              |
|            |     3.20(c)](http:/                                     |
|            | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_20.DOC) |
|            |     from the date of entitlement under type 1           |
|            |     withholding                                         |
|            |                                                         |
|            | -   suppress the system-generated award letter, if      |
|            |     applicable, and                                     |
|            |                                                         |
|            | -   annotate the award*,"**\[Amount\]** withheld to     |
|            |     recover payment made under 38 CFR 3.20(c)."*        |
+------------+---------------------------------------------------------+

#### 13. Application of 38 CFR 3.107 on Awards to Surviving Spouses or Children

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the application of |
| troduction | > 38 CFR 3.107 on awards to surviving spouses and       |
|            | > children. It includes information on                  |
|            |                                                         |
|            | -   when 38 CFR 3.107 does not apply                    |
|            |                                                         |
|            | -   the definition of ***family unit***                 |
|            |                                                         |
|            | -   VA treatment of a family unit                       |
|            |                                                         |
|            | -   when not to delay award action                      |
|            |                                                         |
|            | -   locating additional dependents                      |
|            |                                                         |
|            | -   determining                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   rates payable, and                                  |
|            |                                                         |
|            | -   how to award the apportioned share                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   considering retroactive adjustments, and            |
|            |                                                         |
|            | -   controlling for retroactive adjustments.            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 1, 2008                                          |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > [38 CFR                                               |
| #### a. Wh | > 3.107](http://                                        |
| en 38 CFR  | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_107.DOC) |
| 3.107 Does | > does *not* apply if a                                 |
|  Not Apply |                                                         |
|            | -   surviving spouse files a claim for Improved Pension |
|            |     which does not include a child in custody, or       |
|            |                                                         |
|            | -   child in the custody of the surviving spouse files  |
|            |     a claim for Improved Pension without a claim from   |
|            |     the surviving spouse.                               |
|            |                                                         |
|            | > ***Reference***: For more information on death        |
|            | > pension, see M21-1MR, Part V, Subpart i (TBD) or      |
|            | > M21-1, Part IV, 16.01.                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > For VA purposes, a ***family unit*** consists of all  |
| ### b. Def | > members of a family, including the spouse and         |
| inition: F | > children, without regard to whether or not they can   |
| amily Unit | > be established as dependents.                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c.   | > VA treats all members of the family unit as one       |
|  VA Treatm | > entity for entitlement purposes and considers all     |
| ent of a F | > income from any source for all members of the group   |
| amily Unit | > in making a determination of entitlement to           |
|            | > income-based benefits.                                |
+------------+---------------------------------------------------------+

Continued on next page

13\. Application of 38 CFR 3.107 on Awards to Surviving Spouses or
Children, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > Do *not* delay award action on a claim filed by       |
| When Not t |                                                         |
| o Delay Aw | -   a surviving spouse within one year following the    |
| ard Action |     date of the veteran's death, even if it is shown    |
|            |     that a child (not included in the claim of record)  |
|            |     exists for whom a claim has not been filed          |
|            |                                                         |
|            | -   a child, even if the surviving spouse has not filed |
|            |     a claim, or                                         |
|            |                                                         |
|            | -   a child, or *for* a child out of the legal custody  |
|            |     of the surviving spouse pending receipt of claims   |
|            |     from the surviving spouse or children.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e.   | > Make any necessary attempts to locate additional      |
| Locating A | > dependents in order to furnish them with an           |
| dditional  | > application form.                                     |
| Dependents | >                                                       |
|            | > Inform the claimant that the income, net worth, and   |
|            | > dependency evidence for the other potential           |
|            | > beneficiary(ies) must be of record prior to further   |
|            | > action on the claim.                                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Any awards to persons who have filed a claim are at   |
| # f. Deter | > the rates payable as though all dependents had filed  |
| mining Rat | > a claim *until* the expiration of the period within   |
| es Payable | > which a retroactive share may be awarded to the       |
|            | > additional dependent(s).                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Use the table below to determine how to award the     |
|  g. Determ | > apportioned share.                                    |
| ining How  |                                                         |
| to Award t |                                                         |
| he Apporti |                                                         |
| oned Share |                                                         |
+------------+---------------------------------------------------------+

  ---------------------------- ------------------------------------------
  If ...                       Then ...

  a surviving spouse has filed withhold the apportioned shares for the
  a claim                      child or children from the surviving
                               spouse's award.

  a surviving spouse has *not* award the apportioned share to a child for
  filed a claim                whom a claim is filed pending the timely
                               receipt of a claim from the surviving
                               spouse.
  ---------------------------- ------------------------------------------

Continued on next page

13\. Application of 38 CFR 3.107 on Awards to Surviving Spouses or
Children, Continued

  -----------------------------------------------------------------------
  g\. Determining How to Award the Apportioned Share (continued)

  -----------------------------------------------------------------------

+----------------------------+-----------------------------------------+
| If ...                     | Then ...                                |
+----------------------------+-----------------------------------------+
| -   there is no surviving  | pay the appropriate share to the        |
|     spouse, and            | children who have filed based on the    |
|                            | total number of potentially entitled    |
| -   not all the children   | children.                               |
|     have filed a claim     |                                         |
+----------------------------+-----------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Retroactive adjustments to running awards may be      |
| # h. Consi | > necessary                                             |
| dering Ret |                                                         |
| roactive A | -   when claims from additional dependents are not      |
| djustments |     received by the expiration of the period allowed,   |
|            |     and                                                 |
|            |                                                         |
|            | -   due to the                                          |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   death or marriage of an additional dependent, or    |
|            |                                                         |
|            | -   election of another benefit by a child, before      |
|            |     filing a claim and establishing entitlement.        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### i.   | > Maintain an appropriate control for retroactive       |
|  Controlli | > adjustments.                                          |
| ng for Ret | >                                                       |
| roactive A | > If no claim has been filed by the additional          |
| djustments | > dependent(s) by the expiration of the period allowed, |
|            | > amend the running award(s) to authorize the full rate |
|            | > (share) from the original effective date of the award |
|            | > with no change in reason code.                        |
|            | >                                                       |
|            | > ***Note***: Reliance on the Benefits Delivery Network |
|            | > (BDN) to issue notification with the message code     |
|            | > 880, "*Not all w/h or dependents being paid,*" is not |
|            | > sufficient for control purposes.                      |
+------------+---------------------------------------------------------+

#### 14. Application of 38 CFR 3.107 on Awards to Parents 

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the application of |
| troduction | > 38 CFR 3.107 on awards to parents. It includes        |
|            | > information on the                                    |
|            |                                                         |
|            | -   rights of a non-claiming parent in DIC cases, and   |
|            |                                                         |
|            | -   rates of DIC payable to claiming parents.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 1, 2008                                          |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > In DIC cases, under [38 CFR                           |
| #### a. Ri | > 3.251(a)(5)](http://w                                 |
| ghts of No | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_251.DOC), |
| n-Claiming | > if there are two parents living and only one parent   |
|  Parent in | > has filed a claim, the mere continued existence of    |
|  DIC Cases | > the other parent affects the rate payable to the      |
|            | > claimant.                                             |
|            | >                                                       |
|            | > The other parent's potential right continues until    |
|            |                                                         |
|            | -   death, or                                           |
|            |                                                         |
|            | -   receipt of evidence of a legal bar to entitlement,  |
|            |     other than excessive income.                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > The claiming parent is allowed DIC at the rate        |
| Rates of D | > payable as if there were only one surviving parent,   |
| IC Payable | > if it is determined that the non-claiming parent no   |
|  to Claimi | > longer has entitlement to DIC because                 |
| ng Parent  |                                                         |
|            | -   of abandonment of the veteran per M21-1MR, Part     |
|            |     III, Subpart iii, 5.J.62 (TBD) of M21-1, Part III,  |
|            |     Chapter 6.28, or                                    |
|            |                                                         |
|            | -   another person, now deceased, was last in *loco     |
|            |     parentis* (stood as the veteran's parent).          |
+------------+---------------------------------------------------------+

#### 15. Application of 38 CFR 3.650 When Additional Dependents File a Claim

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the application of |
| troduction | > 38 CFR 3.650 when additional dependents file a claim. |
|            | > It includes information on                            |
|            |                                                         |
|            | -   adjustment of running awards                        |
|            |                                                         |
|            | -   the action to take                                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   in response to a protest from the payee             |
|            |                                                         |
|            | -   if the additional claimant is *not* entitled, and   |
|            |                                                         |
|            | -   if the additional claimant *is* entitled, and       |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   failure to reduce an award when entitlement of an   |
|            |     additional dependent is established.                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > July 1, 2008                                          |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > Follow the due process procedures of M21-1MR, Part I, |
| . Adjustme | > 2.B before reducing any running award if              |
| nt of Runn |                                                         |
| ing Awards | -   benefits were not withheld, and                     |
|            |                                                         |
|            | -   a claim is received from another member of the same |
|            |     class who apparently is entitled to share in the    |
|            |     same benefit (pending development).                 |
|            |                                                         |
|            | > Reduce any running awards under reason code 26        |
|            | > (dependent added), effective as of the date of last   |
|            | > payment, at the expiration of the control period.     |
|            | >                                                       |
|            | > ***Reference***: For more information on the rules    |
|            | > used to determine the effective date of entitlement   |
|            | > for additional claimants and for the adjustment of    |
|            | > any running award from which a share should have been |
|            | > withheld under [38 CFR                                |
|            | > 3.107](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_107.DOC), |
|            | > see [38 CFR                                           |
|            | > 3.650](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_650.DOC). |
|            | >                                                       |
|            | > ***Important***: Do not use these rules in Improved   |
|            | > Pension cases, since there is no withholding for      |
|            | > additional claimants.                                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > If a protest is received from a payee whose award is  |
| #### b. Ac | > reduced, follow the contested claims procedure in     |
| tion to Ta | > M21-1MR, Part III, Subpart vi, 6.B (TBD) and M21-1MR, |
| ke in Resp | > Part III, Subpart vi, 6.C (TBD) or M21-1, Part IV,    |
| onse to Pr | > Chapter 5.                                            |
| otest From |                                                         |
|  the Payee |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

15\. Application of 38 CFR 3.650 When Additional Dependents File a
Claim, Continued

+------------+---------------------------------------------------------+
| ##### c    | > Restore or release the full rate payable to entitled  |
| . Action t | > persons from the date of reduction or entitlement if  |
| o Take if  | > it is determined that the additional dependent is not |
| the Additi | > entitled.                                             |
| onal Depen |                                                         |
| dent Is No |                                                         |
| t Entitled |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > If an additional dependent establishes entitlement    |
| ## d. Acti |                                                         |
| on to Take | -   award the additional dependent's full share         |
|  if the Ad |     effective the date of entitlement, and              |
| ditional D |                                                         |
| ependent I | -   adjust any running awards.                          |
| s Entitled |                                                         |
|            | > Use the table below to adjust running awards.         |
+------------+---------------------------------------------------------+

+------------------------------+---------------------------------------+
| If the additional dependent  | Then reduce the running awards from   |
| is entitled ...              | the ...                               |
+------------------------------+---------------------------------------+
| from a date before the date  | first day of the month following the  |
| VA received his/her claim    | date of entitlement.                  |
|                              |                                       |
|                              | ***Note***: Any resulting overpayment |
|                              | due to failure to withhold benefits   |
|                              | is subject to recovery or waiver of   |
|                              | recovery.                             |
+------------------------------+---------------------------------------+
| only from the date VA        | first day of the month following the  |
| received his/her claim       | later of the following dates:         |
|                              |                                       |
|                              | -   the date of the claim, or         |
|                              |                                       |
|                              | -   the date of the last payment.     |
+------------------------------+---------------------------------------+
| before October 1, 1982       | later of the following dates:         |
|                              |                                       |
|                              | -   the effective date of entitlement |
|                              |                                       |
|                              | -   the date of the claim, or         |
|                              |                                       |
|                              | -   date of last payment (DLP).       |
+------------------------------+---------------------------------------+

Continued on next page

15\. Application of 38 CFR 3.650 When Additional Dependents File a
Claim, Continued

+------------+---------------------------------------------------------+
| ####       | Consider VA's failure to reduce a running award, when   |
| # e. Failu | entitlement of an additional dependent has been         |
| re to Redu | established, the result of administrative error.        |
| ce an Awar |                                                         |
| d When Ent | > To rectify the error                                  |
| itlement o |                                                         |
| f an Addit | -   make adjustments under [38 CFR                      |
| ional Depe |     3.500(b)(2)](http://                                |
| ndent Is E | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_500.DOC) |
| stablished |     and [38 CFR                                         |
|            |     3.650(a)(2)](http://                                |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_650.DOC) |
|            |                                                         |
|            | -   enter a notation "*Administrative error, M21-1MR,   |
|            |     Part IV, Subpart iii, 3.B.12*" under the "Remarks"  |
|            |     section on the award form, and                      |
|            |                                                         |
|            | -   prepare an administrative decision in accordance    |
|            |     with M21-1MR, Part III, Subpart v, 1.H.40 (TBD) or  |
|            |     M21-1, Part IV, Chapter 11.31b(1).                  |
+------------+---------------------------------------------------------+