Veterans Benefits Administration M21-1, Part 1

Department of Veterans Affairs Change 46

Washington, DC 20420 September 25, 2003

Veterans Benefits Administration Manual M21-1, part I, Appendix B, is
changed as follows:

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By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

September 25, 2003 M21-1, Part 1

Change 46

**IMPROVED DEATH PENSION**

**Entitlement Codes 1.4** % **Cost-of-Living Increase**

**1D, 2D, 3D, 5D, 6D, 7D, and 0D Effective 12/1/02**

**MAXIMUM ANNUAL RATES**

<table style="width:100%;">
<colgroup>
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<tr class="odd">
<td>Dep</td>
<td>Codes</td>
<td><p>Surviving</p>
<p>Spouse</p></td>
<td><p>Surviving</p>
<p>Spouse + HB</p></td>
<td>Surviving Spouse + A/A</td>
<td>Dep</td>
<td>Codes</td>
<td></td>
<td>Dep</td>
<td>Codes</td>
<td><p>Child</p>
<p>Only</p></td>
<td>Dep</td>
<td>Codes</td>
</tr>
<tr class="even">
<td>10</td>
<td>SS</td>
<td>$6,497</td>
<td>$7,942</td>
<td>$10,387</td>
<td>10</td>
<td>SS</td>
<td></td>
<td>81</td>
<td>1C</td>
<td>$1,653</td>
<td>81</td>
<td>1C</td>
</tr>
<tr class="odd">
<td>11</td>
<td>SS-1C</td>
<td>$8,507</td>
<td>$9,948</td>
<td>$12,393</td>
<td>11</td>
<td>SS-1C</td>
<td></td>
<td>82</td>
<td>2C</td>
<td>$3,306</td>
<td>82</td>
<td>2C</td>
</tr>
<tr class="even">
<td>12</td>
<td>SS-2C</td>
<td>$10,160</td>
<td>$11,601</td>
<td>$14,046</td>
<td>12</td>
<td>SS-2C</td>
<td></td>
<td>83</td>
<td>3C</td>
<td>$4,959</td>
<td>83</td>
<td>3C</td>
</tr>
<tr class="odd">
<td>13</td>
<td>SS-3C</td>
<td>$11,813</td>
<td>$13,254</td>
<td>$15,699</td>
<td>13</td>
<td>SS-3C</td>
<td></td>
<td>84</td>
<td>4C</td>
<td>$6,612</td>
<td>84</td>
<td>4C</td>
</tr>
<tr class="even">
<td colspan="2"><p>For each additional</p>
<p>child - Add</p></td>
<td>$1,653</td>
<td>$1,653</td>
<td>$1,653</td>
<td colspan="2"><p>For each additional</p>
<p>child - Add</p></td>
<td></td>
<td colspan="2"><p>For each additional</p>
<p>child - Add</p></td>
<td>$1,653</td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

  --------------- ------------- -- --------------- -- ------ -- ------------- --------------- --------- ------------- -------- ------------- --------- -------- -- --
  **SBP/MIW                                                     **38 CFR                                                                                           
  ANNUITY                                                       3.272(j)(1)                                                                                        
  LIMITATION**                                                  DEDUCTION                                                                                          
                                                                FROM CHILD\'S                                                                                      
                                                                EARNED                                                                                             
                                                                INCOME**                                                                                           

                                                                                                                                                                   

  **Amount**      **Effective                                                 **Exclusion**             **Effective            **Exclusion                         
                  Date**                                                                                Date**                 Effective                           
                                                                                                                               Date**                              

  \$6,497         12/1/02                                                                     \$5,900                 1/1/92                 \$6,950   1/1/98      

                                                                                              \$6,050                 1/1/93                 \$7,050   1/1/99      

                                                                                              \$6,250                 1/1/94                 \$7,200   1/1/00      

  **SURVIVING**   **SPOUSE OF      **VETERAN\***                                              \$6,400                 1/1/95                 \$7,450   1/1/01      
                  SAW**                                                                                                                                            

  Dependency      Codes            A/A Rate                                                   \$6,550                 1/1/96                 \$7,700   1/1/02      

  10              SS               \$11,058                                                   \$6,800                 1/1/97                 \$7,800   1/1/03      

  11              SS-1C            \$13,063                                                                                                                        

  12              SS-2C            \$14,716                                                                                                                        

  For each        child add        \$1,653                                                                                                                         
  additional                                                                                                                                                       
  --------------- ------------- -- --------------- -- ------ -- ------------- --------------- --------- ------------- -------- ------------- --------- -------- -- --

\* PL 105-178 increased A/A rates for surviving spouses of SAW veterans
effective 10/1/98.

September 25, 2003 M21-1, Part 1

Change 46

**IMPROVED DISABILITY PENSION**

**Entitlement Codes 1.4% Cost-of-Living Increase**

**1L, 2L, 3L, 5L, 6L, 7L, and 0L Effective 12/1/02**

**MAXIMUM ANNUAL RATES**

<table>
<colgroup>
<col style="width: 18%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 0%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="5"></td>
<td colspan="7">TWO VETERANS MARRIED TO ONE ANOTHER</td>
<td colspan="2"></td>
</tr>
<tr class="even">
<td>Dependency Codes</td>
<td>Veteran PT</td>
<td>Veteran HB</td>
<td><p>Veteran</p>
<p>A&amp;A</p></td>
<td colspan="2"></td>
<td><p>Both</p>
<p>PT</p></td>
<td><p>One</p>
<p>HB</p></td>
<td><p>Both</p>
<p>HB</p></td>
<td><p>One</p>
<p>A&amp;A</p></td>
<td><p>One A&amp;A</p>
<p>One HB</p></td>
<td colspan="2"><p>Both</p>
<p>A&amp;A</p></td>
<td><p>Dep</p>
<p>Codes</p></td>
</tr>
<tr class="odd">
<td>00 Veteran</td>
<td>$9,690</td>
<td>$11,843</td>
<td>$16,169</td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td>00</td>
</tr>
<tr class="even">
<td>10/81 V-S or V-1C</td>
<td>$12,692</td>
<td>$14,844</td>
<td>$19,167</td>
<td colspan="2"></td>
<td>$12,692</td>
<td>$14,844</td>
<td>$16,998</td>
<td>$19,167</td>
<td>$21,317</td>
<td colspan="2">$24,973</td>
<td>10</td>
</tr>
<tr class="odd">
<td>11/82 V-S-1C or V-2C</td>
<td>$14,345</td>
<td>$16,497</td>
<td>$20,820</td>
<td colspan="2"></td>
<td>$14,345</td>
<td>$16,497</td>
<td>$18,651</td>
<td>$20,820</td>
<td>$22,970</td>
<td colspan="2">$26,626</td>
<td>11</td>
</tr>
<tr class="even">
<td>12/83 V-S-2C or V-3C</td>
<td>$15,998</td>
<td>$18,150</td>
<td>$22,473</td>
<td colspan="2"></td>
<td>$15,998</td>
<td>$18,150</td>
<td>$20,304</td>
<td>$22,473</td>
<td>$24,623</td>
<td colspan="2">$28,279</td>
<td>12</td>
</tr>
<tr class="odd">
<td><p>For each additional</p>
<p>child - Add</p></td>
<td>$1,653</td>
<td>$1,653</td>
<td>$1,653</td>
<td colspan="2"></td>
<td>$1,653</td>
<td>$1,653</td>
<td>$1,653</td>
<td>$1,653</td>
<td>$1,653</td>
<td colspan="2">$1,653</td>
<td><p>Additional</p>
<p>Child</p></td>
</tr>
<tr class="even">
<td>Veterans of Mexican Border Period or WWI</td>
<td>(1)</td>
<td>(1)</td>
<td>(1)</td>
<td colspan="2"></td>
<td>(1)</td>
<td>(1)</td>
<td>(1)</td>
<td>(1)</td>
<td>(1)</td>
<td colspan="2">(1)</td>
<td></td>
</tr>
</tbody>
</table>

\(1\) Add \$2,197 to applicable rate

**38 CFR 3.272(j)(1) Exclusion from Child\'s Earnings**

  ----------- ----------- ----------- ----------- ----------- -----------
              Exclusion   Effective   Exclusion   Effective   
                          Date                    Date        

                                                              

              \$6,400     1/1/95      \$7,200     1/1/00      

              \$6,550     1/1/96      \$7,450     1/1/01      

              \$6,800     1/1/97      \$7,700     1/1/02      

              \$6,950     1/1/98      \$7,800     1/1/03      

              \$7,050     1/1/99                              
  ----------- ----------- ----------- ----------- ----------- -----------

September 25, 2003 M21-1, Part 1

Change 46

**SECTION 306 DEATH PENSION**

**Entitlement Codes 1.4 % Cost-of-Living Increase**

**18,28,38,58,68, and 78 Effective 12/1/02**

SURVIVING SPOUSE ONLY

The rate entitled to on December 31, 1978, may be continued if the
surviving spouse\'s IVAP for 2002 is \$11,024 or less.

CHILDREN ONLY

The rate entitled to on December 31, 1978, may be continued if the
child\'s IVAP for 2002 is \$9,011 or less.

SURVIVING SPOUSE AND CHILDREN

The rate entitled to on December 31, 1978, may be continued if the
surviving spouse\'s IVAP for 2002 is \$14,817 or less.

SBP/MIW ANNUITY LIMITATION

  ------------ ------------ ------------ ----------------- ------------ ---
                            Amount       Effective Date                 

                            \$6,497      12/1/02                        
  ------------ ------------ ------------ ----------------- ------------ ---

September 25, 2003 M21-1, Part 1

Change 46

## OLD LAW DEATH PENSION

**(Entitlement Established Prior to 7/1/60)**

Entitlement Codes

16, 26, and 36

**INCOME LIMITATIONS**

<table style="width:100%;">
<colgroup>
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 10%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="3"><strong>Income Limits</strong></td>
<td colspan="2"></td>
<td colspan="3"><strong>Income Limits</strong></td>
<td></td>
<td colspan="3"><strong>Income Limits</strong></td>
</tr>
<tr class="even">
<td><strong>Effective Date</strong></td>
<td><p><strong>Surviving Spouse</strong></p>
<p><strong>Only or Each Child</strong></p>
<p><strong>(No Surviving Spouse)</strong></p></td>
<td colspan="2"><p><strong>Surviving Spouse</strong></p>
<p><strong>(With Child or Children)</strong></p></td>
<td></td>
<td><strong>Effective Date</strong></td>
<td><p><strong>Surviving Spouse</strong></p>
<p><strong>Only or Each Child</strong></p>
<p><strong>(No Surviving Spouse)</strong></p></td>
<td><p><strong>Surviving Spouse</strong></p>
<p><strong>(With Child or Children)</strong></p></td>
<td></td>
<td><strong>Effective Date</strong></td>
<td><p><strong>Surviving Spouse</strong></p>
<p><strong>Only or Each Child</strong></p>
<p><strong>(No Surviving Spouse)</strong></p></td>
<td><p><strong>Surviving Spouse</strong></p>
<p><strong>(With Child or Children)</strong></p></td>
</tr>
<tr class="odd">
<td><p><strong>PL 93-527</strong></p>
<p><strong>1/1/75</strong></p></td>
<td><strong>$2,600</strong></td>
<td colspan="2"><strong>$3,900</strong></td>
<td></td>
<td><p><strong>3.5% COL</strong></p>
<p><strong>12/1/84</strong></p></td>
<td><strong>$5,683</strong></td>
<td><strong>$8,197</strong></td>
<td></td>
<td><p><strong>2.8% COL</strong></p>
<p><strong>12/1/94</strong></p></td>
<td><strong>$8,002</strong></td>
<td><strong>$11,539</strong></td>
</tr>
<tr class="even">
<td><p><strong>PL 94-169</strong></p>
<p><strong>1/1/76</strong></p></td>
<td><strong>$2,900</strong></td>
<td colspan="2"><strong>$4,200</strong></td>
<td></td>
<td><p><strong>3.1% COL</strong></p>
<p><strong>12/1/85</strong></p></td>
<td><strong>$5,860</strong></td>
<td><strong>$8,452</strong></td>
<td></td>
<td><p><strong>2.6% COL</strong></p>
<p><strong>12/1/95</strong></p></td>
<td><strong>$8,211</strong></td>
<td><strong>$11,840</strong></td>
</tr>
<tr class="odd">
<td><p><strong>PL 94-432</strong></p>
<p><strong>1/1/77</strong></p></td>
<td><strong>$3,100</strong></td>
<td colspan="2"><strong>$4,460</strong></td>
<td></td>
<td><p><strong>1.3% COL</strong></p>
<p><strong>12/1/86</strong></p></td>
<td><strong>$5,937</strong></td>
<td><strong>$8,562</strong></td>
<td></td>
<td><p><strong>2.9. % COL</strong></p>
<p><strong>12/1/96</strong></p></td>
<td><strong>$8,450</strong></td>
<td><strong>$12,184</strong></td>
</tr>
<tr class="even">
<td><p><strong>PL 95-204</strong></p>
<p><strong>1/1/78</strong></p></td>
<td><strong>$3,300</strong></td>
<td colspan="2"><strong>$4,760</strong></td>
<td></td>
<td><p><strong>4.2% COL</strong></p>
<p><strong>12/1/87</strong></p></td>
<td><strong>$6,187</strong></td>
<td><strong>$8,922</strong></td>
<td></td>
<td><p><strong>2.1 % COL</strong></p>
<p><strong>12/1/97</strong></p></td>
<td><strong>$8,628</strong></td>
<td><strong>$12,440</strong></td>
</tr>
<tr class="odd">
<td><p><strong>PL 95-588</strong></p>
<p><strong>1/1/79</strong></p></td>
<td><strong>$3,534</strong></td>
<td colspan="2"><strong>$5,098</strong></td>
<td></td>
<td><p><strong>4.0% COL</strong></p>
<p><strong>12/1/88</strong></p></td>
<td><strong>$6,435</strong></td>
<td><strong>$9,279</strong></td>
<td></td>
<td><p><strong>1.3% COL</strong></p>
<p><strong>12/1/98</strong></p></td>
<td><strong>$8,741</strong></td>
<td><strong>$12,602</strong></td>
</tr>
<tr class="even">
<td><p><strong>9.9% COL</strong></p>
<p><strong>6/1/79</strong></p></td>
<td><strong>$3,884</strong></td>
<td colspan="2"><strong>$5,603</strong></td>
<td></td>
<td><p><strong>4.7% COL</strong></p>
<p><strong>12/1/89</strong></p></td>
<td><strong>$6,738</strong></td>
<td><strong>$9,716</strong></td>
<td></td>
<td><p><strong>2.4% COL</strong></p>
<p><strong>12/1/99</strong></p></td>
<td><strong>$8,951</strong></td>
<td><strong>$12,905</strong></td>
</tr>
<tr class="odd">
<td><p><strong>14.3% COL</strong></p>
<p><strong>6/1/80</strong></p></td>
<td><strong>$4,440</strong></td>
<td colspan="2"><strong>$6,405</strong></td>
<td></td>
<td><p><strong>5.4% COL</strong></p>
<p><strong>12/1/90</strong></p></td>
<td><strong>$7,102</strong></td>
<td><strong>$10,241</strong></td>
<td></td>
<td><p><strong>3.5% COL</strong></p>
<p><strong>12/1/00</strong></p></td>
<td><strong>$9,265</strong></td>
<td><strong>$13,357</strong></td>
</tr>
<tr class="even">
<td><p><strong>11.2% COL</strong></p>
<p><strong>6/1/81</strong></p></td>
<td><strong>$4,938</strong></td>
<td colspan="2"><strong>$7,123</strong></td>
<td></td>
<td><p><strong>3.7% COL</strong></p>
<p><strong>12/1/91</strong></p></td>
<td><strong>$7,365</strong></td>
<td><strong>$10,620</strong></td>
<td></td>
<td><p><strong>2.6% COL</strong></p>
<p><strong>12/1/01</strong></p></td>
<td><strong>$9,516</strong></td>
<td><strong>$13,719</strong></td>
</tr>
<tr class="odd">
<td><p><strong>7.4% COL</strong></p>
<p><strong>6/1/82</strong></p></td>
<td><strong>$5,304</strong></td>
<td colspan="2"><strong>$7,651</strong></td>
<td></td>
<td><p><strong>3.0% COL</strong></p>
<p><strong>12/1/92</strong></p></td>
<td><strong>$7,586</strong></td>
<td><strong>$10,939</strong></td>
<td></td>
<td><p><strong>1.4% COL</strong></p>
<p><strong>12/1/02</strong></p></td>
<td><strong>$9,650</strong></td>
<td><strong>$13,912</strong></td>
</tr>
<tr class="even">
<td><p><strong>3.5% COL</strong></p>
<p><strong>12/1/83</strong></p></td>
<td><strong>$5,490</strong></td>
<td colspan="2"><strong>$7,919</strong></td>
<td></td>
<td><p><strong>2.6% COL</strong></p>
<p><strong>12/1/93</strong></p></td>
<td><strong>$7,784</strong></td>
<td><strong>$11,224</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

### SBP/MIW ANNUITY LIMITATION

  ------------- -------------- -------- ------------- -------------- -------- ------------- --------------
  **Amount**    **Effective             **Amount**    **Effective             **Amount**    **Effective
                Date**                                Date**                                Date**

  **\$3,786**   **12/01/84**            **\$4,918**   **12/01/91**            **\$5,808**   **12/01/97**

  **\$3,905**   **12/01/85**            **\$5,067**   **12/01/92**            **\$5,884**   **12/01/98**

  **\$3,957**   **12/01/86**            **\$5,200**   **12/01/93**            **\$6,026**   **12/01/99**

  **\$4,125**   **12/01/87**            **\$5,347**   **12/01/94**            **\$6,237**   **12/01/00**

  **\$4,292**   **12/01/88**            **\$5,488**   **12/01/95**            **\$6,407**   **12/01/01**

  **\$4,496**   **12/01/89**            **\$5,649**   **12/01/96**            **\$6,497**   **12/01/02**

  **\$4,741**   **12/01/90**            **\$5,688**   **07/01/97**                          
  ------------- -------------- -------- ------------- -------------- -------- ------------- --------------

  -----------------------------------------------------------------------
  **See M21-1, Part I, Appendix B, pages II-2 and II-3 for Old Law Death
  Pension rates.**

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

September 25, 2003 M21-1, Part I

Change 46

**DEPENDENCY AND INDEMNITY COMPENSATION**

**(38 U.S.C. 1315)**

**PARENT** RATES

**Entitlement Codes 1.4% Cost-of-Living Increase**

**17, 27, 37, 47, 57, 67, Effective 12/1/02**

**77, 87, 97, 07, and 99**

**Sole Surviving Parent**

**Unremarried or Remarried Living with Spouse**

+---------+---------+---------+---------+---------+---------+--------+
| Total   |         |         |         | Total   |         |        |
| Dep.    |         |         |         | Dep.    |         |        |
| Code    |         |         |         | Code    |         |        |
| 50/60   |         |         |         | 50/60   |         |        |
|         |         |         |         |         |         |        |
| This    |         |         |         | This    |         |        |
| Dep.    |         |         |         | Dep.    |         |        |
| Code    |         |         |         | Code    |         |        |
| 50/60   |         |         |         | 50/60   |         |        |
| or      |         |         |         | or      |         |        |
| 52/62   |         |         |         | 52/62   |         |        |
+---------+---------+---------+---------+---------+---------+--------+
| Income  | Monthly | Each    |         | Income  | Monthly | Each   |
|         |         | \$1     |         |         |         | \$1    |
| Not     | Rate    |         |         | Not     | Rate    |        |
| Over    |         | De      |         | Over    |         | Dec    |
|         |         | crement |         |         |         | rement |
+---------+---------+---------+---------+---------+---------+--------+
| \$800   | \$464   | None    |         | 4200    | 192     | .08    |
+---------+---------+---------+---------+---------+---------+--------+
| 900     | 456     | .08     |         | 4300    | 184     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1000    | 448     |         |         | 4400    | 176     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1100    | 440     |         |         | 4500    | 168     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1200    | 432     |         |         | 4600    | 160     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1300    | 424     |         |         | 4700    | 152     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1400    | 416     |         |         | 4800    | 144     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1500    | 408     |         |         | 4900    | 136     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1600    | 400     |         |         | 5000    | 128     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1700    | 392     |         |         | 5100    | 120     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1800    | 384     |         |         | 5200    | 112     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 1900    | 376     |         |         | 5300    | 104     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2000    | 368     |         |         | 5400    | 96      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2100    | 360     |         |         | 5500    | 88      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2200    | 352     |         |         | 5600    | 80      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2300    | 344     |         |         | 5700    | 72      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2400    | 336     |         |         | 5800    | 64      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2500    | 328     |         |         | 5900    | 56      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2600    | 320     |         |         | 6000    | 48      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2700    | 312     |         |         | 6100    | 40      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2800    | 304     |         |         | 6200    | 32      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 2900    | 296     |         |         | 6300    | 24      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3000    | 288     |         |         | 6400    | 16      |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3100    | 280     |         |         | 6500    | 8       |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3200    | 272     |         |         | 6537    | 5.04    |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3300    | 264     |         |         | 6538    |         |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3400    | 256     |         |         | to      | 5       | None   |
+---------+---------+---------+---------+---------+---------+--------+
| 3500    | 248     |         |         | \*\*    |         |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3600    | 240     |         |         | If A&A  |         |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3700    | 232     |         |         | Add     | 250     |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3800    | 224     |         |         | \*\*    |         |        |
+---------+---------+---------+---------+---------+---------+--------+
| 3900    | 216     |         |         | If      |         | \$     |
|         |         |         |         | living  |         | 14817  |
|         |         |         |         | with    |         |        |
+---------+---------+---------+---------+---------+---------+--------+
| 4000    | 208     |         |         | with    | spouse  |        |
+---------+---------+---------+---------+---------+---------+--------+
| 4100    | 200     |         |         | If not  | living  | \$     |
|         |         |         |         | living  |         | 11024  |
+---------+---------+---------+---------+---------+---------+--------+
|         |         |         |         | with    | spouse  |        |
+---------+---------+---------+---------+---------+---------+--------+

M21-1, Part 1 September 25, 2003

Change 46

**DEPENDENCY AND INDEMNITY COMPENSATION**

**(38 U.S.C. 1315)**

**PARENT RATES**

**Entitlement Codes 1.4% Cost-of-Living Increase**

**17, 27, 37, 47, 57, 67, Effective 12/1/02**

**77, 87, 97, 07, and 99**

**One of Two Parents**

**Not Living with Spouse**

+---------+---------+---------+---------+---------+---------+---------+
| Total   |         |         |         | Total   |         |         |
| Dep.    |         |         |         | Dep.    |         |         |
| Code 70 |         |         |         | Code 70 |         |         |
|         |         |         |         |         |         |         |
| This    |         |         |         | This    |         |         |
| Dep.    |         |         |         | Dep.    |         |         |
| Code    |         |         |         | Code    |         |         |
| 50/60   |         |         |         | 50/60   |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| Income  | Monthly | Each    |         | Income  | Monthly | Each    |
|         |         | \$1     |         |         |         | \$1     |
| Not     | Rate    |         |         | Not     | Rate    |         |
| Over    |         | De      |         | Over    |         | De      |
|         |         | crement |         |         |         | crement |
+---------+---------+---------+---------+---------+---------+---------+
| \$800   | \$334   | None    |         | \$3800  | \$ 98   | .08     |
+---------+---------+---------+---------+---------+---------+---------+
| 900     | 328     | .06     |         | 3900    | 90      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1000    | 321     | .07     |         | 4000    | 82      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1100    | 314     |         |         | 4100    | 74      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1200    | 306     | .08     |         | 4200    | 66      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1300    | 298     |         |         | 4300    | 58      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1400    | 290     |         |         | 4400    | 50      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1500    | 282     |         |         | 4500    | 42      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1600    | 274     |         |         | 4600    | 34      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1700    | 266     |         |         | 4700    | 26      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1800    | 258     |         |         | 4800    | 18      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1900    | 250     |         |         | 4900    | 10      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2000    | 242     |         |         | 4962    | 5.04    |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2100    | 234     |         |         | 4963    |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2200    | 226     |         |         | to      | 5       | None    |
+---------+---------+---------+---------+---------+---------+---------+
| 2300    | 218     |         |         | 11024   |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2400    | 210     |         |         | If A&A  |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2500    | 202     |         |         | Add     | \$250   |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2600    | 194     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2700    | 186     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2800    | 178     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2900    | 170     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3000    | 162     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3100    | 154     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3200    | 146     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3300    | 138     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3400    | 130     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3500    | 122     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3600    | 114     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3700    | 106     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+

M21-1, Part 1 September 25, 2003

Change 46

**DEPENDENCY AND INDEMNITY COMPENSATION**

**(38 U.S.C. 1315)**

**PARENT RATES**

**Entitlement Codes 1.4% Cost-of-Living Increase**

**17, 27, 37, 47, 57, 67 Effective 12/1/02**

**77, 87, 97, 07, and 99**

**One of Two Parents**

**Living with Spouse or Other Parent**

+---------+---------+---------+---------+---------+---------+---------+
| Total   |         |         |         | Total   |         |         |
| Dep.    |         |         |         | Dep.    |         |         |
| Code 70 |         |         |         | Code 70 |         |         |
|         |         |         |         |         |         |         |
| This    |         |         |         | This    |         |         |
| Dep.    |         |         |         | Dep.    |         |         |
| Code    |         |         |         | Code    |         |         |
|         |         |         |         |         |         |         |
| With    |         |         |         | With    |         |         |
| Other   |         |         |         | Other   |         |         |
| Parent: |         |         |         | Parent: |         |         |
| 51/61   |         |         |         | 51/61   |         |         |
|         |         |         |         |         |         |         |
| Re      |         |         |         | Re      |         |         |
| married |         |         |         | married |         |         |
| With    |         |         |         | With    |         |         |
| Spouse: |         |         |         | Spouse: |         |         |
| 52/62   |         |         |         | 52/62   |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| Income  | Monthly | Each    |         | Income  | Monthly | Each    |
|         |         | \$1     |         |         |         | \$1     |
| Not     | Rate    |         |         | Not     | Rate    |         |
| Over    |         | De      |         | Over    |         | De      |
|         |         | crement |         |         |         | crement |
+---------+---------+---------+---------+---------+---------+---------+
| \$1000  | \$314   | None    |         | \$3800  | \$159   | .08     |
+---------+---------+---------+---------+---------+---------+---------+
| 1100    | 311     | .03     |         | 3900    | 151     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1200    | 308     |         |         | 4000    | 143     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1300    | 305     |         |         | 4100    | 135     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1400    | 302     |         |         | 4200    | 127     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1500    | 299     |         |         | 4300    | 119     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1600    | 295     | .04     |         | 4400    | 111     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1700    | 291     |         |         | 4500    | 103     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1800    | 287     |         |         | 4600    | 95      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 1900    | 283     |         |         | 4700    | 87      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2000    | 278     | .05     |         | 4800    | 79      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2100    | 273     |         |         | 4900    | 71      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2200    | 268     |         |         | 5000    | 63      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2300    | 263     |         |         | 5100    | 55      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2400    | 258     |         |         | 5200    | 47      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2500    | 252     | .06     |         | 5300    | 39      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2600    | 246     |         |         | 5400    | 31      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2700    | 240     |         |         | 5500    | 23      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2800    | 234     |         |         | 5600    | 15      |         |
+---------+---------+---------+---------+---------+---------+---------+
| 2900    | 228     |         |         | 5700    | 7       |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3000    | 221     | .07     |         | 5724    | 5.08    |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3100    | 214     |         |         | 5725    |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3200    | 207     |         |         | to      | 5       | None    |
+---------+---------+---------+---------+---------+---------+---------+
| 3300    | 199     | .08     |         | \       |         |         |
|         |         |         |         | $14,817 |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3400    | 191     |         |         | If A&A  |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3500    | 183     |         |         | Add     | 250     |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3600    | 175     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| 3700    | 167     |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+

M21-1, Part 1 September 25, 2003

Change 46

#### SECTION 306 DISABILITY PENSION

**Entitlement Codes 1.4 % Cost-of-Living Increase**

**14, 24, 34, 64, and 74 Effective 12/1/02**

VETERAN ONLY

The rate entitled to on December 31, 1978, may be continued if the
veteran\'s IVAP for 2002 is \$11,024 or less.

[Special A/A Allowance When Income Exceeds \$11,024]{.underline} . The
rate entitled to on December 31, 1978, may be continued if the
veteran\'s IVAP for 2002 is \$11,524 or less.

[38 CFR 3.552 Rates (Hospital Reduction) for Special A/A Allowance]{.underline}.
The rate entitled to (see 38 CFR 3.552 Rate Chart on page VI (1978) -1)
on December 31, 1978, will be paid if the veteran is hospitalized on
January 1, 2002, or later and the veteran\'s IVAP for 2002 is \$11,524
or less.

VETERAN WITH DEPENDENTS

The rate entitled to on December 31, 1978, may be continued if the IVAP
for 2002 is \$14,817 or less.

[Special A/A Allowance When Income Exceeds \$14,817]{.underline} . The
rate entitled to on December 31, 1978, may be continued if the
veteran\'s IVAP for 2002 is \$15,317 or less.

[38 CFR 3.552 Rates (Hospital Reduction) for Special A/A Allowance]{.underline}.
The rate entitled to (see 38 CFR 3.552 Rate Chart on page VI (1978) -2)
on December 31, 1978, will be paid if the veteran is hospitalized on
January 1, 2002, or later and the veteran\'s IVAP for 2002 is \$15,317
or less.

  --------------- -------------- ------- ------- -------------- -------------
  **SPOUSE INCOME                                               
  EXCLUSION UNDER                                               
  38 CFR                                                        
  3.262(b)(2)**                                                 

  Effective Date  Exclusion                      Effective Date Exclusion

  12/1/92         \$2,764                        12/1/98        \$3,185

  12/1/93         \$2,836                        12/1/99        \$3,262

  12/1/94         \$2,916                        12/1/00        \$3,377

  12/1/95         \$2,992                        12/1/01        \$3,468

  12/1/96         \$3,079                        12/1/02        \$3,517

  12/1/97         \$3,144                                       
  --------------- -------------- ------- ------- -------------- -------------

September 25, 2003 M21-1, Part 1

> Change 46

**OLD LAW DISABILITY PENSION**

**WWI, WWII, KOREAN CONFLICT (38 U.S.C. 1521 - Prior to 7/1/60)**

Entitlement Codes

12, 22, and 32

  ------- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  Total                                                                                                                    9.9%       14.3%      11.2%

  Dep.                  90-77      90-275     91-588     92-198     93-527     94-169     94-432     95-204     95-588     COL        COL        COL

  Code                  10/1/67    1/1/69     1/1/71     1/1/72     1/1/75     1/1/76     1/1/77     1/1/78     1/1/79     6/1/79     6/1/80     6/1/81

          Income Limits                                                                                                                          

  00      Unmarried     \$1,400    \$1,600    \$1,900    \$2,200    \$2,600    \$2,900    \$3,100    \$3,300    \$3,534    \$3,884    \$4,440    \$4,938
          Veterans                                                                                                                               

  10      Veteran and                                                                                                                            
          Spouse or                                                                                                                              

  81      Minor Child   \$2,700    \$2,900    \$3,200    \$3,500    \$3,900    \$4,200    \$4,460    \$4,760    \$5,098    \$5,603    \$6,405    \$7,123
          (no spouse)                                                                                                                            

          Rates Payable                                                                                                                          

          Basic Rates   \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15

          10 Years or   \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75
          Age 65                                                                                                                                 

          If Entitled   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45
          to A/A                                                                                                                                 

          If Entitled                                    \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00
          to HB                                                                                                                                  
  ------- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

  ------- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  Total                 7.4%       3.5%       3.5%       3.1%       1.3%       4.2%       4.0%       4.7%       5.4%       3.7%       3.0%       2.6%

  Dep.                  COL        COL        COL        COL        COL        COL        COL        COL        COL        COL        COL        COL

  Code                  6/1/82     12/1/83    12/1/84    12/1/85    12/1/86    12/1/87    12/1/88    12/1/89    12/1/90    12/1/91    12/1/92    12/1/93

          Income Limits                                                                                                                          

  00      Unmarried     \$5,304    \$5,490    \$5,683    \$5,860    \$5,937    \$6,187    \$6,435    \$6,738    \$7,102    \$7,365    \$7,586    \$7,784
          Veterans                                                                                                                               

  10      Veteran and                                                                                                                            
          Spouse or                                                                                                                              

  81      Minor Child   \$7,651    \$7,919    \$8,197    \$8,452    \$8,562    \$8,922    \$9,279    \$9,716    \$10,241   \$10,620   \$10,939   \$11,224
          (no spouse)                                                                                                                            

          Rates Payable                                                                                                                          

          Basic Rates   \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15

          10 Years or   \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75
          Age 65                                                                                                                                 

          If Entitled   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45
          to A/A                                                                                                                                 

          If Entitled   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00
          to HB                                                                                                                                  
  ------- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

  ------- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------ ---------- -- ---- -- -----------
  Total                 2.8%       2.6%       2.9%       2.1%       1.3%       2.4%       3.5%       2.6%       1.4%                         

  Dep.                  COL        COL        COL        COL        COL        COL        COL        COL               COL                   

                        12/1/94    12/1/95    12/1/96    12/1/97    12/1/98    12/1/99    12/1/00    12/1/01           12/1/02               Note: See
                                                                                                                                             M21-1,

          Income Limits                                                                                                                      App. B,
                                                                                                                                             page VII-2

  00      Unmarried     \$8,002    \$8,211    \$8,450    \$8,628    \$8,741    \$8,951    \$9,265    \$9,516           \$9,650               for Service
          Veterans                                                                                                                           Pension

  10      Veteran and                                                                                                                        rates.
          Spouse or                                                                                                                          

  81      Minor Child   \$11,539   \$11,840   \$12,184   \$12,440   \$12,602   \$12,905   \$13,357   \$13,719          \$13,912              
          (no spouse)                                                                                                                        

          Rates Payable                                                                                                                      \* Initial
                                                                                                                                             A&A grant

          Basic Rates   \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15    \$66.15           \$66.15               by P.L.
                                                                                                                                             149-82

          10 Years or   \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75    \$78.75           \$78.75               effective
          Age 65                                                                                                                             11/1/51

          If Entitled   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45   \$135.45          \$135.45              
          to A/A                                                                                                                             

          If Entitled   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00   \$100.00          \$100.00              
          to HB                                                                                                                              
  ------- ------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------ ---------- -- ---- -- -----------

September 25, 2003 M21-1, Part 1

Change 46

**BURIAL, PLOT AND HEADSTONE/MARKER BENEFITS**

Historical and Current

  ------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
                     10/1/80   10/1/81   10/1/82   10/1/83   10/1/84   10/1/85   10/1/86   10/1/87   10/1/88   10/1/89   10/1/90   10/1/91

  Headstone/Marker                                                                                                                 

  PL 95-476          \$59      \$63      \$67      \$68      \$70      \$71      \$71      \$76      \$80      \$85      \$85      \$97

                                                                                                                                   

                                                                                                                                   

                     10/1/92   10/1/93   10/1/94   10/1/95   10/1/96   10/1/97   10/1/98   10/1/99   10/1/00   10/1/01   10/1/02   

  Headstone/Marker                                                                                                                 

  PL 95-476          \$96      \$98      \$100     \$101     \$96      \$109     \$96      \$90      \$94      \$109     \$101     
  ------------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------

  ----------- -------- --------- --------- --------- --------- --------- --------- --------- ---------
              PL       PL 73-2   PL 79-796 PL 79-529 PL 85-674 PL 93-43  PL 95-479 PL        PL
              68-242                                                               100-322   107-103

              6/7/24   3/31/33   10/5/40   7/24/46   8/18/58   6/18/73   10/1/78   4/1/88    12/1/01

                                                                                             

  SC BURIAL   \$100    \$75      \$100     \$150     \$250     \$800     \$1,100   \$1,500   \$2,000

  NSC BURIAL  \$100    \$75      \$100     \$150     \$250     \$250     \$300     \$300     \$300

  PLOT                                                         \$150     \$150     \$150     \$300
  ALLOWANCE                                                                                  

  STATE                                                                                      
  CEMETERY                                                                                   

  PLOT                                                                   \$150     \$150     \$300
  ALLOWANCE                                                                                  
  ----------- -------- --------- --------- --------- --------- --------- --------- --------- ---------

Note 1: The P.L. 107-103 service-connected burial rate applies in cases
where death occurred on or after 9/11/01.

Note 2: The headstone/marker allowance is payable only if the veteran
died between 10/18/78 and 11/1/90. The rate payable is determined by
when the headstone/marker was purchased For example, the rate payable
would be \$98 if the veteran died on 7/1/85 and the headstone/marker was
purchased on 9/29/94.

September 25, 2003 M21-1, Part 1

Change 46

**SPINA BIFIDA BENEFITS**

**(38 U.S.C. Chapter 18)**

  -------------- ------------------ ------------------ ------------------
  **Effective    **Level I Monthly  **Level II Monthly **Level III
  Date**         Rate**             Rate**             Monthly Rate**

                                                       

  10/01/97       \$200              \$700              \$1,200

  12/01/97       \$205              \$715              \$1,226

  12/01/98       \$208              \$725              \$1,242

  12/01/99       \$213              \$743              \$1,272

  12/01/00       \$221              \$770              \$1,317

  12/01/01       \$228              \$792              \$1,354

  12/01/02       \$232              \$804              \$1,373
  -------------- ------------------ ------------------ ------------------

September 25, 2003 M21-1, Part 1

Change 46

**Children of Women Vietnam Veterans Born with Certain Birth Defects**

**(Sec. 401 of Public Law 106-419)**

  -------------- -------------- ------------- -------------- --------------
  **Effective    **Level I      **Level II    **Level III    **Level IV
  Date**         Monthly Rate** Monthly       Monthly Rate** Monthly Rate**
                                Rate**                       

  12/1/01        \$100          \$228         \$792          \$1,354

  12/1/02        \$105          \$232         \$804          \$1,373
  -------------- -------------- ------------- -------------- --------------