### Section A. General Authorization and Notification Issues

#### Overview

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

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

  1            Determining the Pay Grade for DIC Awards       3-A-2

  2            DIC Under 38 U.S.C. 1318                       3-A-4

  3            Denial When a Claimant Fails to Prosecute a    3-A-6
               Claim                                          

  4            Adjustments Based on Claims Filed With the     3-A-7
               Social Security Administration (SSA)           

  5            DIC Reform Under Public Law (PL) 102-568       3-A-9

  6            DIC Reform Under PL 106-117                    3-A-11

  7            DIC Reform Under PL 108-454                    3-A-13

  8            Exhibit: BDN 401 Screen                        3-A-15
  ------------ ---------------------------------------------- ------------

#### 1. Determining the Pay Grade for DIC Awards

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on determining the    |
| troduction | > pay grade code for Dependency and Indemnity           |
|            | > Compensation (DIC) awards. It includes information on |
|            |                                                         |
|            | -   when the pay grade code                             |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   is not required, and                                |
|            |                                                         |
|            | -   is required                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   the basis for pay grade codes, and                  |
|            |                                                         |
|            | -   the action to take if the pay grade is unverified   |
|            |     at the time an original award is authorized.        |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ##### a.   | > A verified pay grade code is not required on          |
|  When the  |                                                         |
| Pay Grade  | -   awards of DIC to children or parents,               |
| Code Is No |                                                         |
| t Required | -   awards of any benefit other than DIC to any         |
|            |     beneficiary, or                                     |
|            |                                                         |
|            | -   awards based on a veteran's death after December    |
|            |     31, 1992.                                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > A pay grade code is a required input on the Benefits  |
| # b. When  | > Delivery Network (BDN) 401 special conditions screen  |
| the Pay Gr | > (see [M21-1, Part V,                                  |
| ade Code I | > 5.08b](htt                                            |
| s Required | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch05.doc)) |
|            | > for all                                               |
|            |                                                         |
|            | -   original and reopened Dependency and Indemnity      |
|            |     Compensation (DIC) awards to surviving spouses, and |
|            |                                                         |
|            | -   amended awards when there is a change in the pay    |
|            |     grade or a change from death compensation to DIC.   |
|            |                                                         |
|            | > ***Note***: If the veteran died *after* December 31,  |
|            | > 1992, verification of the pay grade is not required   |
|            | > since the surviving spouse's rate of DIC is not based |
|            | > on the veteran's pay grade. Although verification of  |
|            | > pay grade is not required, a 401 screen entry in the  |
|            | > PAY GR field is required.                             |
|            | >                                                       |
|            | > ***References***:                                     |
|            |                                                         |
|            | -   For more information on how the veteran's pay grade |
|            |     affects the DIC rate, see M21-1MR, Part IV, Subpart |
|            |     iii, 1.5.c.                                         |
|            |                                                         |
|            | -   A sample 401 special conditions screen is located   |
|            |     at the end of this section, in M21-1MR, Part IV,    |
|            |     Subpart iii, 3.A.7.                                 |
+------------+---------------------------------------------------------+

Continued on next page

1\. Determining the Pay Grade for DIC Awards, Continued

+------------+---------------------------------------------------------+
| ####       | > Enter the code from the table in [M21-1, Part I,      |
| # c. Basis | > Appendix                                              |
|  for Pay G | > B](http://w                                           |
| rade Codes | ww.warms.vba.va.gov/admin21/m21_1/part1/appb/sectV.doc) |
|            | > for the pay grade of the veteran based on             |
|            |                                                         |
|            | -   his/her rank on the date of last separation from    |
|            |     service under conditions other than dishonorable,   |
|            |     or                                                  |
|            |                                                         |
|            | -   a higher rank held for a period of six months or    |
|            |     more meeting the requirements of [38 U.S.C.         |
|            |     1302(d)](http://assembler.law.cornell.edu/          |
|            | uscode/html/uscode38/usc_sec_38_00001302----000-.html), |
|            |     if applicable.                                      |
|            |                                                         |
|            | > ***Reference***: For more information on elections    |
|            | > between DIC and death compensation, see M21-1MR, Part |
|            | > IV, Subpart iii, 3.H.                                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d    | > If the pay grade is unverified at the time an         |
| . Action t | > original award is authorized,                         |
| o Take if  |                                                         |
| Pay Grade  | -   pay DIC benefits at the minimum pay grade (41) rate |
| Is Unverif |     until the pay grade can be verified by the          |
| ied When a |     appropriate service department                      |
| n Original |                                                         |
|  Award Is  | -   request the pay grade directly through PIES or via  |
| Authorized |     MAP-D, and                                          |
|            |                                                         |
|            | -   maintain a 60-day control under end product (EP)    |
|            |     290.                                                |
|            |                                                         |
|            | > ***Note***: Amended award action is required to       |
|            | > change the pay grade and the corresponding DIC        |
|            | > benefit payment.                                      |
|            | >                                                       |
|            | > ***Reference***: For information on developing for a  |
|            | > veteran's pay grade, see M21-1MR, Part IV, Subpart    |
|            | > iii, 1.5.                                             |
+------------+---------------------------------------------------------+

#### 2. DIC Under 38 U.S.C. 1318

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on DIC under 38       |
| troduction | > U.S.C. 1318. It includes information on               |
|            |                                                         |
|            | -   when the issue of entitlement to benefits under 38  |
|            |     U.S.C. 1318 is inferred                             |
|            |                                                         |
|            | -   evaluations that provide entitlement to benefits    |
|            |     under 38 U.S.C. 1318                                |
|            |                                                         |
|            | -   when benefits are payable under 38 U.S.C. 1318      |
|            |                                                         |
|            | -   when benefits are not payable under 38 U.S.C. 1318  |
|            |                                                         |
|            | -   determining entitlement to benefits under 38 U.S.C. |
|            |     1318, and                                           |
|            |                                                         |
|            | -   partial ratings.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > The issue of entitlement to benefits under [38 U.S.C. |
| # a. When  | > 1318](http://assembler.law.cornell.edu                |
| the Issue  | /uscode/html/uscode38/usc_sec_38_00001318----000-.html) |
| of Entitle | > is inferred whenever service connection for the cause |
| ment to Be | > of death is denied and the veteran had a totally      |
| nefits Und | > disabling service-connected (SC) condition at the     |
| er 38 U.S. | > time of death.                                        |
| C. 1318 Is |                                                         |
|  Inferred  |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Evaluations that provide entitlement to benefits      |
|  Evaluatio | > under [38 U.S.C.                                      |
| ns That Pr | > 1318](http://assembler.law.cornell.edu                |
| ovide Enti | /uscode/html/uscode38/usc_sec_38_00001318----000-.html) |
| tlement to | > include total evaluations based on                    |
|  Benefits  |                                                         |
| Under 38 U | -   individual unemployability (IU) under [38 CFR       |
| .S.C. 1318 |     4.16](http://                                       |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKC/PART4/S4_16.DOC), |
|            |     and                                                 |
|            |                                                         |
|            | -   paired organs or extremities under [38 U.S.C.       |
|            |     1160](http://assembler.law.cornell.edu/             |
|            | uscode/html/uscode38/usc_sec_38_00001160----000-.html). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Pay DIC to a surviving spouse or children in the same |
|  c. When B | > manner as if death were SC, if a veteran was in       |
| enefits Ar | > receipt of, or entitled to receive, disability        |
| e Payable  | > compensation for an SC disability totally disabling   |
| Under 38 U | > for                                                   |
| .S.C. 1318 |                                                         |
|            | -   10 or more years immediately preceding death, or    |
|            |                                                         |
|            | -   a continuous period of not less than five years     |
|            |     from the time of separation from service until      |
|            |     death.                                              |
|            |                                                         |
|            | > ***Note***: The starting point for calculating the    |
|            | > 10-year period is the effective date of the total     |
|            | > evaluation.                                           |
+------------+---------------------------------------------------------+

Continued on next page

2\. DIC Under 38 U.S.C. 1318, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > Benefits under [38 U.S.C.                             |
| When Benef | > 1318](http://assembler.law.cornell.edu                |
| its Are No | /uscode/html/uscode38/usc_sec_38_00001318----000-.html) |
| t Payable  | > are not payable if                                    |
| Under 38 U |                                                         |
| .S.C. 1318 | -   the cause of death is found to have been the result |
|            |     of a veteran's own willful misconduct, or           |
|            |                                                         |
|            | -   the veteran's death was wrongfully and              |
|            |     intentionally caused by the claimant.               |
|            |                                                         |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   willful misconduct, see M21-1MR, Part III, Subpart  |
|            |     v, 1.D, and                                         |
|            |                                                         |
|            | -   development action the veteran's death is a         |
|            |     homicide, see M21-1MR, Part III, Subpart v, 1.F.22. |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > Entitlement to benefits under [38 U.S.C.              |
| ## e. Dete | > 1318](http://assembler.law.cornell.edu                |
| rmine Enti | /uscode/html/uscode38/usc_sec_38_00001318----000-.html) |
| tlement to | > is determined by the rating activity in a formal      |
|  Benefits  | > rating decision.                                      |
| Under 38 U | >                                                       |
| .S.C. 1318 | > ***Note***: The fact that the veteran may never have  |
|  by Rating | > actually received compensation (as in retired pay     |
|            | > cases) does *not* preclude a grant under [38 U.S.C.   |
|            | > 1318](http://assembler.law.cornell.edu/               |
|            | uscode/html/uscode38/usc_sec_38_00001318----000-.html). |
|            | >                                                       |
|            | > ***Reference***: For more information on DIC payable  |
|            | > in nonservice-connected (NSC) death cases, see        |
|            |                                                         |
|            | -   M21-1MR, Part IV, Subpart iii, 3.D, and             |
|            |                                                         |
|            | -   [38 CFR                                             |
|            |     3.22](http://                                       |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_22.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > If development is necessary to dispose of the issue   |
| ### f. Par | > of service connection for the cause of death under    |
| tial Ratin | > [38 U.S.C.                                            |
| g Pending  | > 1110](http://assembler.law.cornell.edu                |
| Developmen | /uscode/html/uscode38/usc_sec_38_00001110----000-.html) |
| t for Serv | > or [38 U.S.C.                                         |
| ice- Conne | > 1112](http://assembler.law.cornell.edu/               |
| cted Death | uscode/html/uscode38/usc_sec_38_00001112----000-.html), |
|            | > prepare a rating decision granting entitlement to DIC |
|            | > under [38 U.S.C.                                      |
|            | > 1318](http://assembler.law.cornell.edu                |
|            | /uscode/html/uscode38/usc_sec_38_00001318----000-.html) |
|            | > in any case where entitlement to payment as if death  |
|            | > were service-connected is shown per [*Salgado v.      |
|            | > Brown*](                                              |
|            | http://vbaw.vba.va.gov/bl/21/Advisory/CAVCDAD.htm#bms), |
|            | > 4 Vet. App.316 (1993)*.*                              |
+------------+---------------------------------------------------------+

#### 3. Denial When a Claimant Fails to Prosecute a Claim

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on denying a claim    |
| troduction | > when a claimant fails to prosecute a claim. It        |
|            | > includes information on                               |
|            |                                                         |
|            | -   consideration given to entitlement of another       |
|            |     claimant or other claimants involved in DIC claims, |
|            |     and                                                 |
|            |                                                         |
|            | -   action to take when multiple claimants are          |
|            |     involved.                                           |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ##         | > When processing DIC claims, determine whether there   |
| ### a. Con | > are other claimants whose entitlement or rates may be |
| sidering t | > affected if                                           |
| he Entitle |                                                         |
| ment of An | -   a claim is denied because the required evidence was |
| other Clai |     not received within the control period, but         |
| mant or Cl |                                                         |
| aimants In | -   the statutory period for submission of evidence has |
| volved in  |     not expired.                                        |
| DIC Claims |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b. A | > If other claimants are involved, set up a control to  |
| ction to T | > expire at the end of the statutory period. When the   |
| ake When M | > control period expires,                               |
| ultiple Cl |                                                         |
| aimants Ar | -   determine the rights of such claimants, and         |
| e Involved |                                                         |
|            | -   take appropriate action.                            |
+------------+---------------------------------------------------------+

#### 4. Adjustments Based on Claims Filed With the Social Security Administration (SSA)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on adjustments based  |
| troduction | > on claims filed with the Social Security              |
|            | > Administration (SSA). It includes information on      |
|            |                                                         |
|            | -   recognition of applications to SSA as applications  |
|            |     to the Department of Veterans Affairs (VA)          |
|            |                                                         |
|            | -   action to take if *VA Form 21-4182, Application for |
|            |     Dependency and Indemnity Compensation or Death      |
|            |     Pension*, is not received prior to taking award     |
|            |     action, and                                         |
|            |                                                         |
|            | -   considering entitlement to benefits from an earlier |
|            |     effective date.                                     |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| #####      | > Under [38 CFR                                         |
|  a. Recogn | > 3.153](http://w                                       |
| ition of A | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_153.DOC), |
| pplication | > consider an application for survivors' benefits filed |
| s to SSA a | > as a result of the death of a veteran with the SSA on |
| s Applicat | > or after January 1, 1957, as a claim for Department   |
| ions to VA | > of Veterans Affairs (VA) death benefits, even if *VA  |
|            | > Form 21-4182, Application for Dependency and          |
|            | > Indemnity Compensation or Death Pension* is *not*     |
|            | > received by VA.                                       |
|            | >                                                       |
|            | > ***Reference***: For more information on              |
|            |                                                         |
|            | -   claims applications and initial actions, see        |
|            |     M21-1MR, Part III, Subpart ii, 2, and               |
|            |                                                         |
|            | -   information requests to, or from, other Federal and |
|            |     State agencies, see                                 |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   M21-1MR, Part III, Subpart iii, 3, and              |
|            |                                                         |
|            | -   M21-1MR, Part III, Subpart iii, 4.                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b    | > Request verification of the date that the application |
| . Action t | > was filed with the SSA from the appropriate Social    |
| o Take if  | > Security (SS) payment center if                       |
| VA Form 21 |                                                         |
| -4182 Is N | -   *VA Form 21-4182* has not been received at the time |
| ot Receive |     award action is taken, and                          |
| d Prior to |                                                         |
|  Taking Aw | -   it appears that an earlier effective date may be    |
| ard Action |     established on the basis of an application          |
|            |     allegedly filed with the SSA.                       |
|            |                                                         |
|            | > ***Note***: If necessary, adjust the effective date   |
|            | > of the award upon receipt of *VA Form 21-4182*.       |
+------------+---------------------------------------------------------+

Continued on next page

4\. Adjustments Based on Claims Filed With the Social Security
Administration (SSA), Continued

+------------+---------------------------------------------------------+
| ##         | > The table below describes the process for determining |
| ### c. Con | > whether benefits may be awarded from an earlier       |
| sidering E | > effective date.                                       |
| ntitlement | >                                                       |
|  to an Ear | > ***Note***: The same criteria apply to death pension  |
| lier Effec | > claims.                                               |
| tive Date  |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Stage | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | > Consider entitlement to benefits from an earlier effective |
|       | > date when                                                  |
|       |                                                              |
|       | -   benefits are awarded from the date of receipt of claim   |
|       |     which was filed more than one year after the date of the |
|       |     veteran's death, and                                     |
|       |                                                              |
|       | -   there is no indication in the claims folder as to        |
|       |     whether or not a claim for survivors' benefits was filed |
|       |     with the SSA.                                            |
+-------+--------------------------------------------------------------+
| 2     | Contact the claimant to inform him/her of the possibility of |
|       | assignment of an earlier effective date if a claim for SSA   |
|       | benefits was filed prior to the claim for VA benefits.       |
+-------+--------------------------------------------------------------+
| 3     | > If the claimant responds, indicating that an application   |
|       | > was filed with the SSA prior to the VA claim,              |
|       |                                                              |
|       | -   ask the appropriate SS payment center to verify in       |
|       |     writing the date the application was filed with that     |
|       |     agency, or                                               |
|       |                                                              |
|       | -   verify the information via Share.                        |
+-------+--------------------------------------------------------------+
| 4     | > Adjust the effective date of the award, if otherwise in    |
|       | > order, upon receipt of information from SSA establishing   |
|       | > the date the SSA application/claim was received.           |
+-------+--------------------------------------------------------------+

#### 5. DIC Reform Under Public Law (PL) 102-568

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on DIC reform under   |
| troduction | > *PL 102-568*. It includes information on              |
|            |                                                         |
|            | -   the effective date of *PL 102-568*                  |
|            |                                                         |
|            | -   benefits available for the surviving spouse of a    |
|            |     veteran who died prior to January 1, 1993           |
|            |                                                         |
|            | -   benefits available for the surviving spouse of a    |
|            |     veteran who died on or after January 1, 1993        |
|            |                                                         |
|            | -   an additional allowance available for the surviving |
|            |     spouse of a veteran who died on or after January 1, |
|            |     1993, and                                           |
|            |                                                         |
|            | -   DIC apportionment rates for the dependent children  |
|            |     of a veteran who died on or after January 1, 1993.  |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ##### a    | > The Veterans' Benefits Act of 1992, *PL 102-568*,     |
| . Effectiv | > reformed the DIC program effective January l, l993.   |
| e Date of  |                                                         |
| PL 102-568 |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > If the veteran died prior to January l, l993, DIC is  |
| Benefits A | > paid to a surviving spouse based on whichever of the  |
| vailable f | > following provisions provides the greater benefit     |
| or the Sur |                                                         |
| viving Spo | -   [38 U.S.C.                                          |
| use of a V |     1311a(3)](http://assembler.law.cornell.edu/         |
| eteran Who | uscode/html/uscode38/usc_sec_38_00001311----000-.html), |
|  Died Prio |     which is based on the veteran's pay grade, or       |
| r to Janua |                                                         |
| ry 1, 1993 | -   [38 U.S.C.                                          |
|            |     1311a(1)](http://assembler.law.cornell.edu          |
|            | /uscode/html/uscode38/usc_sec_38_00001311----000-.html) |
|            |     and [38 U.S.C.                                      |
|            |     1311a(2)](http://assembler.law.cornell.edu/         |
|            | uscode/html/uscode38/usc_sec_38_00001311----000-.html), |
|            |     which is based on the basic rate of DIC and any     |
|            |     additional allowance payable because the veteran    |
|            |     was rated as totally disabled for at least eight    |
|            |     continuous years and married to the surviving       |
|            |     spouse for the same period of time.                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > If the veteran died on or after January l, l993, DIC  |
| ### c. Ben | > is paid to a surviving spouse at the basic monthly    |
| efits Avai | > rate set forth in [38 U.S.C.                          |
| lable for  | > 1311a(1)](http://assembler.law.cornell.edu/           |
| the Surviv | uscode/html/uscode38/usc_sec_38_00001311----000-.html). |
| ing Spouse |                                                         |
|  of a Vete |                                                         |
| ran Who Di |                                                         |
| ed on or A |                                                         |
| fter Janua |                                                         |
| ry 1, 1993 |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

5\. DIC Reform Under Public Law (PL) 102-568, Continued

+------------+---------------------------------------------------------+
| ####       | > An additional monthly allowance is payable under [38  |
| # d. Addit | > U.S.C.                                                |
| ional Allo | > 1311a(2)](http://assembler.law.cornell.edu            |
| wance Avai | /uscode/html/uscode38/usc_sec_38_00001311----000-.html) |
| lable for  | > if, at the time of the veteran's death, the veteran   |
| the Surviv | > was                                                   |
| ing Spouse |                                                         |
|  of a Vete | -   in receipt of, or entitled to receive, compensation |
| ran Who Di |     for an SC disability rated totally disabling        |
| ed on or A |     (including a rating based on individual             |
| fter Janua |     unemployability) for a continuous period of at      |
| ry 1, 1993 |     least eight years immediately preceding death, and  |
|            |                                                         |
|            | -   the surviving spouse was married to the veteran for |
|            |     those same eight years.                             |
|            |                                                         |
|            | > ***Important***: Both requirements *must* be met in   |
|            | > order to establish entitlement to this supplemental   |
|            | > allowance.                                            |
|            | >                                                       |
|            | > ***Note***: Entitlement to this additional benefit    |
|            | > must be identified during award input by entry of     |
|            | > special law code 23 on the BDN 401 Special Conditions |
|            | > screen. For more information, see the exhibit in      |
|            | > M21-1MR, Part IV, Subpart iii, 3.A.8.                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > A surviving spouse is paid an additional monthly      |
|  e. DIC Ap | > allowance for each child under age 18.                |
| portionmen | >                                                       |
| t Rates fo | > The DIC apportionment rates approved by the           |
| r Dependen | > Undersecretary for Benefits under [38 CFR             |
| t Children | > 3.461(b)](http://                                     |
|  of a Vete | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_461.DOC) |
| ran Who Di | > are the additional allowance received for each child, |
| ed on or A | > under [38 U.S.C.                                      |
| fter Janua | > 1311(b)](http://assembler.law.cornell.edu/            |
| ry 1, 1993 | uscode/html/uscode38/usc_sec_38_00001311----000-.html), |
|            | > *except* where hardship is shown to exist and special |
|            | > apportionment consideration under [38 CFR             |
|            | > 3.451](http://                                        |
|            | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_451.DOC) |
|            | > is warranted.                                         |
+------------+---------------------------------------------------------+

#### 6. DIC Reform Under PL 106-117

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on DIC reform under   |
| troduction | > *PL 106-117*. It includes information on the          |
|            | > provisions of                                         |
|            |                                                         |
|            | -   *PL 106-117*, Section 501, and                      |
|            |                                                         |
|            | -   *PL 106-117*, Section 502.                          |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| #####      | > ***Application of Provisions***: The provisions of    |
| a. Provisi | > *PL 106-117*, Section 501 apply to survivors of       |
| ons of PL  | > former POWs who                                       |
| 106-117, S |                                                         |
| ection 501 | -   died after September 30, 1999, and                  |
|            |                                                         |
|            | -   were continuously rated totally disabled for an SC  |
|            |     disability for a period of not less than one year   |
|            |     immediately preceding death.                        |
|            |                                                         |
|            | > ***Benefit***: *PL 106-117*, Section 501, authorizes  |
|            | > payment of DIC under [38 U.S.C.                       |
|            | > 1318](http://assembler.law.cornell.edu/               |
|            | uscode/html/uscode38/usc_sec_38_00001318----000-.html). |
|            | >                                                       |
|            | > ***Effective Date***: *PL 106-117*, Section 501 is    |
|            | > effective November 30, 1999.                          |
|            | >                                                       |
|            | > ***Reference***: For information on processing claims |
|            | > by survivors of POW's, see M21-1MR, Part IV, Subpart  |
|            | > iii, 1.7.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > ***Application of Provisions***: The provisions of    |
| b. Provisi | > *PL 106-117*, Section 502 apply to a surviving spouse |
| ons of PL  |                                                         |
| 106-117, S | -   whose remarriage has been terminated by death or    |
| ection 502 |     divorce, or                                         |
|            |                                                         |
|            | -   who has ceased living with another person and       |
|            |     holding himself/herself out openly to the public as |
|            |     that person's spouse.                               |
|            |                                                         |
|            | > ***Benefit***: *PL 106-117*, Section 502 restores the |
|            | > following benefits:                                   |
|            |                                                         |
|            | -   civilian health and medical program of VA (CHAMPVA) |
|            |     under [38 U.S.C. Chapter                            |
|            |     17](http://assembler.law.cornell.e                  |
|            | du/uscode/html/uscode38/usc_sup_01_38_10_II_20_17.html) |
|            |                                                         |
|            | -   education benefits under [38 U.S.C. Chapter         |
|            |     35](http://assembler.law.cornell.edu                |
|            | /uscode/html/uscode38/usc_sup_01_38_10_III_20_35.html), |
|            |     and                                                 |
|            |                                                         |
|            | -   housing loans under [38 U.S.C. Chapter              |
|            |     37](http://assembler.law.cornell.edu                |
|            | /uscode/html/uscode38/usc_sup_01_38_10_III_20_37.html). |
+------------+---------------------------------------------------------+

Continued on next page

6\. DIC Reform Under PL 106-117, Continued

+------------+---------------------------------------------------------+
| b\.        | > ***Effective Date***: *PL 106-117*, Section 502 is    |
| Provisions | > effective December 1, 1999.                           |
| of PL      | >                                                       |
| 106-117,   | > ***Important***: Benefits under *PL 106-117*, Section |
| Section    | > 502 are *not* payable for the period October 1, 1998, |
| 502        | > through November 30, 1999.                            |
| (          | >                                                       |
| continued) | > ***Reference***: For information on issues involving  |
|            | > remarriage of a surviving spouse, see M21-1MR, Part   |
|            | > IV, Subpart iii, 3.F.                                 |
+------------+---------------------------------------------------------+

#### 7. DIC Reform Under PL 108-454

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on DIC reform under   |
| troduction | > of 38 U.S.C. 1311, Section 301(b) under *PL 108-454*. |
|            | > It includes information on                            |
|            |                                                         |
|            | -   the effective date of *PL 108-454*                  |
|            |                                                         |
|            | -   additional monthly payments for surviving spouses   |
|            |                                                         |
|            | -   the effective date of additional payments           |
|            |                                                         |
|            | -   limited duration of additional monthly payments     |
|            |                                                         |
|            | -   identification of affected awards and receipt of    |
|            |     work credit                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > The Veterans' Benefits Act of 2004, *PL 108-454*,     |
| . Effectiv | > reformed DIC effective December 10, 2004.             |
| e Date of  |                                                         |
| PL 108-454 |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b. A | > Under *PL 108-454*, 38 U.S.C. 1311, Section 301(b),   |
| dditional  | > authorizes an additional monthly DIC payment of       |
| Monthly DI | > \$250.00 to certain surviving spouses. The table      |
| C Payment  | > below describes the criteria to determine eligibility |
| to Survivi | > for the additional monthly payment.                   |
| ng Spouses |                                                         |
+------------+---------------------------------------------------------+

+--------------------------+-------------------------------------------+
| If ...                   | Then ...                                  |
+--------------------------+-------------------------------------------+
| the surviving spouse     | a monthly amount of \$250.00 will be paid |
|                          | in addition to the regular DIC payment.   |
| -   is receiving DIC     |                                           |
|                          |                                           |
| -   has one or more      |                                           |
|     children under the   |                                           |
|     age of 18 on the DIC |                                           |
|     award, and           |                                           |
|                          |                                           |
| -   has not received DIC |                                           |
|     for more than two    |                                           |
|     years from the date  |                                           |
|     of original          |                                           |
|     entitlement to DIC   |                                           |
+--------------------------+-------------------------------------------+

Continued on next page

7\. DIC Reform Under PL 108-454, Continued

+------------+---------------------------------------------------------+
| ##### c.   | > The additional monthly amount is added to the award   |
| Effective  | > effective January 1, 2005, the first of the month     |
| Date of Ad | > after the date of enactment of *PL 108-454*.          |
| ditional M |                                                         |
| onthly DIC |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > Eligibility for the additional monthly amount only    |
| Additional | > applies to the months occurring during the two-year   |
|  Monthly P | > period beginning from the date entitlement to DIC     |
| ayments Ar | > began. Entitlement terminates at the earliest of when |
| e for a Li |                                                         |
| mited Time | -   the two-year period from the original date of DIC   |
|            |     eligibility ends, or                                |
|            |                                                         |
|            | -   the last minor child on the surviving spouse's      |
|            |     award                                               |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   reaches the age of 18, or                           |
|            |                                                         |
|            | -   leaves the spouse's award.                          |
+------------+---------------------------------------------------------+

+-----------------------------------------------------------------------+
| > ***Important***: Only one additional \$250.00 monthly payment is    |
| > made, regardless of the number of minor children on the surviving   |
| > spouse's award.                                                     |
| >                                                                     |
| > ***Example 1***: A surviving spouse with at least one child under   |
| > the age of 18 had an original award of DIC effective July 1, 2004.  |
| > The two-year period from the date of initial entitlement ends June  |
| > 30, 2006. The surviving spouse would be entitled to the additional  |
| > \$250.00 monthly amount from January 1, 2005, through June 30,      |
| > 2006. (Payments from February 1, 2005, to July 1, 2006.)            |
| >                                                                     |
| > ***Example 2***: A surviving spouse with at least one child under   |
| > the age of 18 had an original award of DIC effective February 1,    |
| > 2003. The two-year period from date of initial entitlement ends     |
| > January 31, 2005. In this case, the surviving spouse would be       |
| > entitled to the additional \$250.00 for one month, from January 1,  |
| > 2005, through January 31, 2005.                                     |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > DIC awards adjusted to include the additional monthly |
| ## e. Iden | > payment will be                                       |
| tification |                                                         |
|  of Affect | -   identified by use of special law code 28, and       |
| ed Awards  |                                                         |
| and Work C | -   adjusted under end product 690, if this is the only |
| redit for  |     action taken.                                       |
| Adjustment |                                                         |
+------------+---------------------------------------------------------+

#### 8. Exhibit: BDN 401 Screen

+------------+---------------------------------------------------------+
| ##### In   | > The BDN 401 screen is used to enter data that is      |
| troduction | > necessary to support the correct payment and control  |
|            | > of DIC awards.                                        |
+------------+---------------------------------------------------------+

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

+------------+---------------------------------------------------------+
| ####       | > The following is an example of the BDN 401 screen,    |
| # a. Examp | > including data fields for                             |
| le of BDN  |                                                         |
| 401 Screen | -   pay grades                                          |
|            |                                                         |
|            | -   special law codes                                   |
|            |                                                         |
|            | -   rate of veteran's last payment, and                 |
|            |                                                         |
|            | -   minimum payment rate indicator.                     |
+------------+---------------------------------------------------------+

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