September 5, 2005 M21-1, Part IV

Change 222

CHAPTER 26. SPECIFIC DEATH AWARDS AND RELATED ACTIONS

**CONTENTS**

PARAGRAPH PAGE

**SUBCHAPTER I. GENERAL APPLICATIONS**

26.01 Initial Awards to Dependents upon Death of Veteran\* 26-I-1

\*All subparagraphs except d have been **rescinded per M21-1MR, Part IV,
Subpart iii dated December 13, 2005**

26.02 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-6

26.03 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-7

26.04 **Rescinded per M21-1MR, Part III, Subpart v, Chapter 8 dated May
14, 2007** 26-I-9

26.05 **Rescinded per M21-1MR, Part III, Subpart iv, Chapter 3 dated
June 6, 2006** **26-I-12**

26.06 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-13

26.07 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-15

26.08 Marriage of Child 26-I-19

26.09 Change of Law or VA Issue 26-I-20

26.10 Adjustment for Loss of Dependent\--End-of-Year Rule 26-I-20

26.11 Application of End-of-Month and End-of-Year Rule\--Increased
Income 26-I-20

26.12 **Rescinded per M21-1MR, Part V, Subpart iii, Chapter 2 dated May
14, 2007** 26-I-20

26.13 **Rescinded per M21-1MR, Part III, Subpart v, Chapter 4 dated
August 14, 2006** 26-I-22

26.13.1 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-22

26.13.2 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-22

26.13.3 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-I-23

**SUBCHAPTER II. OFFICE OF PERSONNEL MANAGEMENT\--AWARDS**

**BARRED BY RECEIPT OF FEDERAL EMPLOYEES\' GROUP LIFE INSURANCE**

26.14 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-II-1

26.15 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-II-1

26.16 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-II-1

26.17 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-II-1

**SUBCHAPTER III. SERVICE DEPARTMENTS\--ALLOWANCE,**

**ALLOTMENT OR SERVICE PAY\--38 U.S.C. 5110(j)**

26.18 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-III-1

26.19 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-III-1

26.20 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-III-2

26.21 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-III-3

26.22 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-III-3

26.23 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-III-3

**SUBCHAPTER IV. SERVICE DEPARTMENTS\--THE SURVIVOR BENEFIT PLAN**

26.24 Scope 26-IV-1

26.25 **Rescinded per M21-1MR, Part V, Subpart iii, Chapter 6 dated May
14, 2007** 26-IV-1

26.26 **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005** 26-IV-4

26.27 **Rescinded per M21-1MR, Part V, Subpart iii, Chapter 6 dated May
14, 2007** 26-IV-6

**26-i**

# June 6, 2005 M21-1, Part IV

**Change 220**

# SUBCHAPTER I. GENERAL APPLICATIONS

**26.01 INITIAL AWARDS TO DEPENDENTS UPON DEATH OF VETERAN**

**a.** **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**b.** **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**c.** **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26-I-1**

**M21-1, Part IV** **June 6, 2005**

## Change 220

**d.** **Improved Pension and Reallocation of Social Security.** If
Social Security recipients are receiving the maximum family Social
Security benefit, there is generally a reallocation of benefits if a
member of the family loses entitlement. The total benefit is usually
reallocated equally to the remaining family members. No controls are
necessary in these cases. Follow the procedures and examples in
paragraph 16.27e.

**e.** **Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.02 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.03 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**NOTE: Pages 26-I-3 through 26-I-8 have been removed per M21-1MR, Part
IV, Subpart iii dated December 13, 2005.**

**26-I-2**

# June 6, 2005 Part IV

**Change 220**

**26.04 Rescinded per M21-1MR, Part III, Subpart v, Chapter 8 dated May
14, 2007**

**NOTE: Pages 26-I-10 through 26-I-12 have been removed per M21-1MR,
Part III, Subpart v, Chapter 8 dated May 14, 2007.**

**26.05 Rescinded per M21-1MR, Part III, Subpart iv, Chapter 3 dated
June 6, 2006**

**26.06 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.07** **Rescinded per M21-1MR, Part IV, Subpart iii dated December
13, 2005**

**NOTE: Pages 26-I-14 through 26-I-18 have been removed per M21-1MR,
Part IV, Subpart iii dated December 13, 2005.**

**26-I-13**

## September 5, 2005 M21-1, Part IV

**Change 222**

**26.08 MARRIAGE OF CHILD**

On receipt of an acceptable statement (38 CFR 3.213(a)(3)) or evidence,
if required by reason of contradictory information in the claims folder,
showing the marriage of a child to or for whom payments of pension,
compensation or DIC are being made, take the following action subject to
the applicable provisions of paragraph 26.07.

a\. **Termination of a Child\'s Award**

\(1\) **General.** Terminate payments being made to a child in his or
her own right or as apportionee, directly or through a fiduciary, as of
the first day of the month of marriage using reason code 15, Person
Entitled Married (38 CFR 3.500(2)(1)). Show the reason in Remarks as
\"Child ([name if consolidated award]{.underline}) married
([date]{.underline}).\"

\(2\) **Marriage of a Male Child.** Terminate a male child\'s award by
reason of marriage using the STOP command unless an amended award is
required under part V, paragraph 12.01c.

\(3\) **Marriage of a Female Child.** Termination an award to a female
child receiving direct payment using the

**26-I-19**

**M21-1, Part IV September 5, 2005**

**Change 222**

procedures for termination of a remarried surviving spouse\'s award
under paragraphs 26.07c and d. If payment to a

female child is being made through a fiduciary, effect termination as
provided in the preceding subparagraph.

b\. **Adjustments to Surviving Spouse\'s Award**

\(1\) **Child Included in Payee 10 Award.** Upon the marriage of a child
on account of whom payments are being made to a surviving spouse, reduce
or terminate the payee 10 award in accordance with the provisions of
paragraph 25.07. See paragraph 16.10d for loss of only or last child in
Section 306 and Old Law pension cases and paragraph 16.28 for Improved
Pension cases when the child is in the surviving spouse\'s custody.

\(2\) **Award Apportioned.** If the married child is receiving an
apportioned share of a surviving spouse\'s award, the provisions of
paragraph 25.07 apply.

c\. **Adjustments to Awards Involving Other Children**

\(1\) **Separate Awards.** Except as provided for reapportionment of
awards to other apportionees (subpar. 25.07c(2)), make adjustments in
separate awards to other children (no surviving spouse entitled)
effective the date of termination of the married child\'s award under
reason code 45 (38 CFR 3.651).

*Note:* The adjustment of the remaining children\'s rates due to the
loss of a child is one of the few occasions an increase may be made in a
Section 306 or Old Law rate.

\(2\) **Consolidated Awards.** If the married child\'s benefits are
being paid under a consolidated award, follow the provisions of part V,
paragraph 4.05 in making adjustments pursuant to this paragraph.

**26.09 CHANGE OF LAW OR VA ISSUE**

See paragraph 25.18.

**26.10 ADJUSTMENT FOR LOSS OF DEPENDENT \-- END-OF-YEAR RULE**

See paragraph 25.07.

**26.11 APPLICATION OF END-OF-MONTH AND END-OF-YEAR RULES \-- INCREASED
INCOME**

See paragraphs 16.09, 16.16 and 16.36.

**26.12 Rescinded per M21-1MR, Part V, Subpart iii, Chapter 2 dated May
14, 2007**

**26.13 ELECTION OF BENEFITS**

**Rescinded per M21-1MR, Part III, Subpart v, Chapter 4 dated August 14,
2006**

**26.13.1 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.13.2 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.13.3** **Rescinded per M21-1MR, Part IV, Subpart iii dated December
13, 2005**

**26.14 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.15 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.16 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.17 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.18 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.19 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.20 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.21 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.22 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**26.23 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**NOTE: Page 26-I-23, Page 26-II-1, and pages 26-III-1 through 26-III-4
have been removed per M21-1MR, Part IV, Subpart iii dated December 13,
2005.**

**26-I-22**

# June 6, 2005 M21-1, Part IV

###  Change 220

**SUBCHAPTER IV. SERVICE DEPARTMENTS - THE**

**SURVIVOR BENEFIT PLAN**

**26.24 SCOPE**

a\. **General.** Effective September 21, 1972, the Survivor Benefit Plan
(SBP) was established under Public Law 92-425 for retired service
personnel and commissioned officers of the Public Health Service and the
National Oceanic and Atmospheric Administration.

b\. **SBP Annuity.** Eligible persons can designate all or a part of
retired pay as a basis for survivors\' annuity, payable to a surviving
spouse, children, or persons having an insurable interest in the
retiree. The designated beneficiary will receive 55 percent of the base
amount selected.

c\. **SBP Minimum Income Annuity Plan.** The SBP alternatively provided
for a guaranteed minimum income for the limited class of eligible
surviving spouses of military retirees who did not participate in the
Plan and who died prior to September 21, 1973. This plan is identified
as an annuity paid to Minimum Income Widow/ers and referred to as the
MIW-SBP. To be eligible, the surviving spouse must not be remarried,
must be eligible for VA death pension, and must have income for VA
purposes, excluding any SBP annuity, of less than the MIW-SBP annuity
limitation.

d\. **Annuities for Certain Military Surviving Spouses (ACMSS).**
Certain widow(er)s of military retirees are eligible to draw an annuity
under this program which was established under Public Law 105-85 on
November 18, 1997. The program was established because a portion of the
widows(ers) of military retiree population were "forgotten" when SBP was
created. Hence, ACMSS is often referred to as the "forgotten widows
annuity." There are two categories of surviving spouses who qualify for
ACMSS:

(1) A surviving spouse of a retired (regular or reserve) member who died
    before March 21, 1974,

    and who was already drawing retired pay at the time of death.

(2) A surviving spouse of a qualified reserve member (i.e., one who had
    completed 20 qualifying

years of service toward retired pay) who was not yet in receipt of
retired pay because he/she had not reached age 60. The qualified reserve
member must have died prior to October 1, 1978.

e\. **SBP Relationship to VA Benefits**

\(1\) **Pension Entitlement.** Any payments under SBP, MIW-SBP, and
ACMSS will be considered \"Retirement or Annuity\" income for VA pension
purposes (38 CFR 3.261(a)(14)).

\(2\) **DIC Entitlement.** Payment of SBP survivor\'s annuity to a
surviving spouse or payment of ACMSS is subject to reduction or
discontinuance if he or she becomes entitled to DIC. Concurrent payment
of SBP and DIC to children and parents is not prohibited.

**26.25 Rescinded per M21-1MR, Part V, Subpart iii, Chapter 6 dated May
14, 2007**

**NOTE: Pages 26-IV-2 and 26-IV-3 have been removed** **per M21-1MR,
Part V, Subpart iii, Chapter 6 dated May 14, 2007.**

**26.26 Rescinded per M21-1MR, Part IV, Subpart iii dated December 13,
2005**

**NOTE: Pages 26-IV-5 and 26-IV-7 have been removed** **per M21-1MR,
Part IV, Subpart iii dated December 13, 2005.**

**26-IV-4**

**M21-1, Part IV June 6, 2005**

**Change 220**

**26.27 Rescinded per M21-1MR, Part V, Subpart iii, Chapter 6 dated May
14, 2007**

**26-IV-6**