**§3.25 Parent's dependency and indemnity compensation (DIC)-method of
payment computation.**

Monthly payments of parents' DIC shall be computed in accordance with
the following formulas:

\(a\) *One parent*. Except as provided in paragraph (b) of this section,
if there is only one parent, the monthly rate specified in 38 U.S.C.
1315(b)(1), as increased from time to time under 38 U.S.C. 5312, reduced
by \$.08 for each dollar of such parent's countable annual income in
excess of \$800. No payments of DIC may be made under this paragraph,
however, if such parent's countable annual income exceeds the amount
specified in 38 U.S.C. 1315(b)(3), as increased from time to time under
38 U.S.C. 5312, and no payment of DIC to a parent under this paragraph
may be less than \$5 a month.

\(b\) *One parent who has remarried*. If there is only one parent and
the parent has remarried and is living with the parent's spouse, DIC
shall be paid under paragraph (a) or paragraph (d) of this section,
whichever shall result in the greater benefit being paid to the
veteran's parent. In the case of remarriage, the total combined annual
income of the parent and the parent's spouse shall be counted in
determining the monthly rate of DIC.

\(c\) *Two parents not living together*. The rate computation method in
this paragraph applies to:

\(1\) Two parents who are not living together, or

\(2\) An unremarried parent when both parents are living and the other
parent has remarried.

The monthly rate of DIC paid to such parent shall be the rate specified
in 38 U.S.C. 1315(c)(1), as increased from time to time under 38 U.S.C.
5312, reduced by an amount no greater than \$.08 for each dollar of such
parent's countable annual income in excess of \$800, except that no
payments of DIC may be made under this paragraph if such parent's
countable annual income exceeds the amount specified in 38 U.S.C.
1315(c)(3), as increased from time to time under 38 U.S.C. 5312, and no
payment of DIC to a parent under this paragraph may be less than \$5
monthly. Each time there is a rate increase under 38 U.S.C. 5312, the
amount of the reduction under this paragraph shall be recomputed to
provide, as nearly as possible, for an equitable distribution of the
rate increase. The results of this computation method shall be published
in schedular format in the "Notices" section of the *Federal Register*
as provided in paragraph (f) of this section.

\(d\) *Two parents living together or remarried parents living with
spouse*. The rate computation method in this paragraph applies to each
parent living with another parent and to each remarried parent when both
parents are alive. The monthly rate of DIC paid to such parents shall be
the rate specified in 38 U.S.C. 1315(d)(1), as increased from time to
time under 38 U.S.C. 5312, reduced to an amount no greater than \$.08
for each dollar of such parent's and spouse's combined countable annual
income in excess of \$1,000 except that no payments of DIC to a parent
under this paragraph may be less than \$5 monthly. Each time there is a
rate increase under 38 U.S.C. 5312, the amount of the reduction under
this paragraph shall be recomputed to provide, as nearly as possible,
for an equitable distribution of the rate increase. The results of this
computation method shall be published in schedular format in the
"Notices" section of the *Federal Register* as provided in paragraph (f)
of this section.

\(e\) *Aid and attendance*. The monthly rate of DIC payable to a parent
under this section shall be increased by the amount specified in 38
U.S.C. 1315(g), as increased from time to time under 38 U.S.C. 5312, if
such parent is:

\(1\) A patient in a nursing home, or

\(2\) Helpless or blind, or so nearly helpless or blind as to need or
require the regular aid and attendance of another person.

\(f\) *Rate publication*. Each time there is an increase under 38 U.S.C.
5312, the actual rates will be published in the "Notices" section of the
*Federal Register*. (Authority: 38 U.S.C. 501(a))

\[52 FR 34907, Sept. 14, 1987, as amended at 61 FR 20727, May 8, 1996\]