## Chapter 1. Special Allowance Under 38 U.S.C. 1312(a) and Medal of Honor Pension

#### Table of Contents

> **Section A: General Information**
>
> Overview 1-A-1
>
> 1\. Description of the Special Allowance Under 38 U.S.C. 1312(a) 1-A-2
>
> 2\. Jurisdiction for Payment of the Special Allowance Under 38 U.S.C.
> 1312(a) 1-A-3
>
> 3\. Answering Inquiries From Claimants 1-A-4
>
> **Section B: Eligibility**
>
> Overview 1-B-1
>
> 4\. Eligibility for the Special Allowance Under 38 U.S.C. 1312(a)
> 1-B-2
>
> 5\. Claims for the Special Allowance Under 38 U.S.C. 1312(a) 1-B-4
>
> **Section C: Development**
>
> Overview 1-C-1
>
> 6\. Obtaining Information From the Social Security Administration
> (SSA) 1-C-2
>
> 7\. Handling Certification of Entitlement by the SSA 1-C-7
>
> **Section D: Authorization and Notification**
>
> Overview 1-D-1
>
> 8\. Entering Award Data on the Benefits Delivery Network (BDN) System
> 1-D-2
>
> 9\. Sending Notification of the Original Award 1-D-5
>
> 10\. Handling Death of the Claimant Before Payment Is Made 1-D-7
>
> 11\. Determining Children's Awards 1-D-8
>
> 12\. Discontinuing Payments 1-D-10
>
> 13\. Reinstating Benefits 1-D-12
>
> 14\. Terminating Payments for Children Reaching Age 18 Years 1-D-13
>
> 15\. Handling Appeals 1-D-15
>
> **Section E: Medal of Honor Pension**
>
> Overview 1-E-1
>
> 16\. General Information on the Medal of Honor Pension 1-E-2

## Section A. General Information

#### Overview

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

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

  1            Description of the Special Allowance Under 38  1-A-2
               U.S.C. 1312(a)                                 

  2            Jurisdiction for Payment of the Special        1-A-3
               Allowance Under 38 U.S.C. 1312(a)              

  3            Answering Inquiries From Claimants             1-A-4
  ------------ ---------------------------------------------- ------------

#### 1. Description of the Special Allowance Under 38 U.S.C. 1312(a)

+------------+---------------------------------------------------------+
| ##### In   | > This topic describes the special allowance under 38   |
| troduction | > U.S.C. 1312(a), including information on              |
|            |                                                         |
|            | -   · who can be paid the special allowance, and        |
|            |                                                         |
|            | -   · who cannot be paid the special allowance.         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The special allowance under 38 U.S.C. 1312(a) is      |
|  a. Descri | > basically a gratuitous benefit to the surviving       |
| ption of t | > dependents of a member of a uniformed service who was |
| he Special | > not a fully and currently insured individual under    |
|  Allowance | > Title II of the Social Security Act who died on or    |
|            | > after January 1, 1957 per 38 CFR 3.804, either        |
|            |                                                         |
|            | -   · while on active duty or active or inactive duty   |
|            |     for training, or                                    |
|            |                                                         |
|            | -   · after separation as the result of a               |
|            |     service-connected (SC) disability incurred after    |
|            |     September 15, 1940.                                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The special allowance is paid *only* to the persons   |
| b. Who Can | > as designated by and at the rates and for the periods |
|  Be Paid t | > certified by the Social Security Administration       |
| he Special | > (SSA).                                                |
|  Allowance |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c.   | > The special allowance cannot be paid based on         |
| Who Cannot |                                                         |
|  Be Paid t | -   · entitlement to compensation under                 |
| he Special |                                                         |
|  Allowance | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   \- 38 U.S.C. 1151, and                              |
|            |                                                         |
|            | -   \- 38 U.S.C. 1160, or                               |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   · Philippine service under 38 CFR 3.804(b)(2).      |
+------------+---------------------------------------------------------+

#### 2. Jurisdiction for Payment of the Special Allowance Under 38 U.S.C. 1312(a)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the                |
| troduction |                                                         |
|            | -   · jurisdiction for payment of the special           |
|            |     allowance, and                                      |
|            |                                                         |
|            | -   · transfer of folders to the Washington Regional    |
|            |     Office (WRO).                                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > The Washington Regional Office (WRO) has the sole     |
|  Jurisdict | > authority to make awards and payments of the special  |
| ion for Pa | > allowance under 38 U.S.C 1312(a).                     |
| yment of t | >                                                       |
| he Special | > However, development of entitlement to this special   |
|  Allowance | > allowance is the responsibility of the regional       |
|            | > office (RO) with original jurisdiction.               |
|            | >                                                       |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   · development of entitlement for the special        |
|            |     allowance, see M21-1MR, Part IX, Subpart ii, 1.C.7, |
|            |     and                                                 |
|            |                                                         |
|            | -   · the transfer of folders to the WRO, see M21-1MR,  |
|            |     Part IX, Subpart ii, 1.A.2.b.                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > When the SSA furnishes *SSA Form 101*, *Determination |
| Transfer o | > of Award*, *SSA Form 101C*, *Determination of Award*, |
| f Folders  | > or *SSA Form 101U3*, *Determination of Award* to the  |
| to the WRO | > RO to authorize payment                               |
|            |                                                         |
|            | -   · take necessary adjudicative action on any other   |
|            |     claim pending in the case, and                      |
|            |                                                         |
|            | -   · once adjudicative action is completed,            |
|            |     permanently transfer the deceased veteran's claims  |
|            |     folder to the WRO for payment of the special        |
|            |     allowance under 38 U.S.C 1312(a).                   |
+------------+---------------------------------------------------------+

#### 3. Answering Inquiries From Claimants

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on answering          |
| troduction | > inquiries from claimants, including information on    |
|            |                                                         |
|            | -   · inquiries answered by Department of Veterans      |
|            |     Affairs (VA), and                                   |
|            |                                                         |
|            | -   · referring inquiries to the SSA.                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > After the approval of an award, Department of         |
| ## a. Inqu | > Veterans Affairs (VA) answers inquiries relating to   |
| iries Answ |                                                         |
| ered by VA | -   · when the initial payment will be made             |
|            |                                                         |
|            | -   · the nonreceipt of a check                         |
|            |                                                         |
|            | -   · the change of address of the payee, and           |
|            |                                                         |
|            | -   · the change of fiduciary.                          |
|            |                                                         |
|            | > ***Note***: Include the Social Security number (SSN)  |
|            | > on any correspondence sent to a payee. Send a copy of |
|            | > the letter to the servicing SSA Program Service       |
|            | > Center (PSC).                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Refer all inquiries pertaining to matters other than  |
| Referring  | > those listed in M21-1MR, Part IX, Subpart ii, 1.A.3.a |
| Inquiries  | > to the servicing SSA PSC, using a locally-generated   |
| to the SSA | > letter, and inform the claimant of the referral.      |
|            | >                                                       |
|            | > ***Note***: This includes inquiries concerning the    |
|            | > amount of payment and termination of payments.        |
+------------+---------------------------------------------------------+

### Section B. Eligibility

#### Overview

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

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

  4            Eligibility for the Special Allowance Under 38 1-B-2
               U.S.C. 1312(a)                                 

  5            Claims for the Special Allowance Under 38      1-B-4
               U.S.C. 1312(a)                                 
  ------------ ---------------------------------------------- ------------

#### 4. Eligibility for the Special Allowance Under 38 U.S.C. 1312(a)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on eligibility for    |
| troduction | > the special allowance under 38 U.S.C. 1312(a),        |
|            | > including information on                              |
|            |                                                         |
|            | -   · the eligibility requirements for veterans         |
|            |                                                         |
|            | -   · eligibility determinations made by the Department |
|            |     of Veterans Affairs (VA), and                       |
|            |                                                         |
|            | -   · eligibility determinations made by the Social     |
|            |     Security Administration (SSA).                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > The surviving dependents of a veteran are eligible    |
| ## a. Vete | > for the special allowance under 38 U.S.C. 1312(a), if |
| rans' Elig |                                                         |
| ibility Re | -   · the veteran died after separation or release from |
| quirements |     service, and                                        |
|            |                                                         |
|            | -   · there is possible entitlement to special          |
|            |     allowance under 38 U.S.C. 1312(a), as described in  |
|            |     M21-1MR, Part IX, Subpart ii, Chapter 1.            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If the requirements of M21-1MR, Part IX, Subpart ii,  |
| b. Eligibi | > 1.B.4.a are met, Department of Veterans Affairs (VA)  |
| lity Deter | > makes the following determinations:                   |
| minations  |                                                         |
| Made by VA | -   · line of duty and service connection for the cause |
|            |     of death as provided in 38 CFR 3.1(k) and 38 CFR    |
|            |     3.1(m), based on a service-connected (SC)           |
|            |     disability incurred or aggravated after September   |
|            |     15, 1940, and                                       |
|            |                                                         |
|            | -   · whether discharge or release from active duty,    |
|            |     active duty for training, or inactive duty training |
|            |     was under conditions other than dishonorable per 38 |
|            |     CFR 3.12 and 38 CFR 3.804.                          |
+------------+---------------------------------------------------------+

Continued on next page

4\. Eligibility for the Special Allowance Under 38 U.S.C. 1312(a),
Continued

+------------+---------------------------------------------------------+
| #          | > The Social Security Administration (SSA) determines   |
| #### c. El | > and certifies the following:                          |
| igibility  |                                                         |
| Determinat | -   · whether the veteran was fully and currently       |
| ions Made  |     insured at the time of death                        |
| by the SSA |                                                         |
|            | -   · whether there is a survivor eligible to receive   |
|            |     the special allowance under 38 U.S.C. 1312(a)       |
|            |                                                         |
|            | -   · the first month of entitlement and the amount of  |
|            |     monthly benefits that are to be paid to each        |
|            |     eligible survivor under 38 U.S.C. 1312(a), and      |
|            |                                                         |
|            | -   · any subsequent determination requiring            |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   \- deductions from monthly benefits                 |
|            |                                                         |
|            | -   \- termination of entitlement, or                   |
|            |                                                         |
|            | -   \- increases or decreases in monthly benefits.      |
+------------+---------------------------------------------------------+

#### 5. Claims for the Special Allowance Under 38 U.S.C. 1312(a)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on claims for the     |
| troduction | > special allowance under 38 U.S.C. 1312(a), including  |
|            | > information on                                        |
|            |                                                         |
|            | -   · accepting claims for the special allowance, and   |
|            |                                                         |
|            | -   · handling the receipt of *VA Form 21-4182*,        |
|            |     *Application for Dependency and Indemnity           |
|            |     Compensation or Death Pension (Including Accrued    |
|            |     Benefits and Death Compensation Where Applicable)*. |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > No special application is required to claim the       |
| #### a. Ac | > special allowance under 38 U.S.C. 1312(a).            |
| cepting Cl | >                                                       |
| aims for t | > Accept a claim for Dependency and Indemnity           |
| he Special | > Compensation (DIC) on the following forms as a claim  |
|  Allowance | > for special allowance when it is determined that the  |
|            | > benefit is payable:                                   |
|            |                                                         |
|            | -   · *VA Form 21-534*, *Application for DIC or Death   |
|            |     Pension by a Surviving Spouse or Child*             |
|            |                                                         |
|            | -   · *VA Form 21-535*, *Application for Dependency and |
|            |     Indemnity Compensation*                             |
|            |                                                         |
|            | -   · *VA Form 21-4182*, *Application for Dependency    |
|            |     and Indemnity Compensation or Death Pension         |
|            |     (Including Accrued Benefits and Death Compensation  |
|            |     Where Applicable)*, or                              |
|            |                                                         |
|            | -   · *VA Form 21-4183*, *Application for Dependency    |
|            |     and Indemnity Compensation by Child*.               |
|            |                                                         |
|            | > ***Reference***: For more information on eligibility  |
|            | > for the special allowance, see M21-1MR, Part IX,      |
|            | > Subpart ii, 1.B.4.                                    |
+------------+---------------------------------------------------------+

Continued on next page

5\. Claims for the Special Allowance Under 38 U.S.C. 1312(a), Continued

+------------+---------------------------------------------------------+
| ##### b.   | > Use the table below to determine how to handle the    |
|  Handling  | > receipt of *VA Form 21-4182*.                         |
| the Receip |                                                         |
| t of VA Fo |                                                         |
| rm 21-4182 |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| When ...                         | Then ...                          |
+----------------------------------+-----------------------------------+
| you receive *VA Form 21-4182*    | obtain a completed application on |
| from a surviving                 | *VA Form 21-534* or *VA Form      |
|                                  | 21-535* before taking rating      |
| -   · spouse                     | action.                           |
|                                  |                                   |
| -   · child, or                  |                                   |
|                                  |                                   |
| -   · parent                     |                                   |
+----------------------------------+-----------------------------------+
| you receive *VA Form 2l-4182* or | take rating action, if required,  |
| a specific inquiry regarding     | for the determination of          |
| entitlement under 38 U.S.C.      | entitlement as described in       |
| 1312(a) from a person who        | M21-1MR, Part IX, Subpart ii,     |
|                                  | 1.B.4.b without first obtaining a |
| -   · has *no* apparent          | formal application provided there |
|     entitlement to DIC, and      | is no legal bar to the payment of |
|                                  | such allowance.                   |
| -   · has *not* filed a formal   |                                   |
|     application for DIC          |                                   |
+----------------------------------+-----------------------------------+

## Section C. Development

#### Overview

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

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

  6            Obtaining Information From the Social Security 1-C-2
               Administration (SSA)                           

  7            Handling Certification of Entitlement by the   1-C-7
               SSA                                            
  ------------ ---------------------------------------------- ------------

#### 6. Obtaining Information From the Social Security Administration (SSA)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on obtaining          |
| troduction | > information from the Social Security Administration   |
|            | > (SSA), including information on                       |
|            |                                                         |
|            | -   · using *VA Form 21-4180*, *Request for             |
|            |     Certification by Social Security Administration,*   |
|            |     to obtain information from the SSA                  |
|            |                                                         |
|            | -   · when to use *VA Form 21-4180*                     |
|            |                                                         |
|            | -   · preparing *VA Form 21-4180* for referral to the   |
|            |     SSA                                                 |
|            |                                                         |
|            | -   · completing *VA Form 21-4180*, and                 |
|            |                                                         |
|            | -   · addressing and dispatching *VA Form 21-4180*.     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Use *VA Form 21-4180*, *Request for Certification by  |
|  a. Using  | > Social Security Administration,* to obtain            |
| VA Form 21 | > information from the Social Security Administration   |
| -4180 to O | > (SSA) as to whether or not the special allowance      |
| btain Info | > under 38 U.S.C. 1312(a) may be payable to an eligible |
| rmation Fr | > survivor or survivors.                                |
| om the SSA |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Send *VA Form 21-4180* to the SSA if                  |
| b. When to |                                                         |
|  Use VA Fo | -   · you receive a specific inquiry or claim for the   |
| rm 21-4180 |     special allowance, and                              |
|            |                                                         |
|            | -   · *SSA Form 101*, *Determination of Award*, *SSA    |
|            |     Form 101C*, *Determination of Award*, or *SSA Form  |
|            |     101U3*, *Determination of Award,* is not of record. |
|            |                                                         |
|            | > ***Reference***: For more information on the          |
|            | > certification of entitlement by the SSA, see M21-1MR, |
|            | > Part IX, Subpart ii, 1.C.7.                           |
+------------+---------------------------------------------------------+

Continued on next page

6\. Obtaining Information From the Social Security Administration (SSA),
Continued

+------------+---------------------------------------------------------+
| ##### c.   | > Follow the steps in the table below to refer *VA Form |
|  Preparing | > 21-4180* to the SSA.                                  |
|  VA Form 2 | >                                                       |
| 1-4180 for | > ***Note***: Do not withhold the referral of *VA Form  |
|  Referral  | > 21-4180* to develop for any evidence that may be      |
| to the SSA | > required to complete the claim.                       |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Prepare *VA Form 21-4180*, Part 1 in duplicate.              |
|       |                                                              |
|       | ***Reference***: For more information on how to complete the |
|       | items on *VA Form 21-4180*, Part 1, see M21-1MR, Part IX,    |
|       | Subpart ii, 1.C.6.d.                                         |
|       |                                                              |
|       | ***Notes***:                                                 |
|       |                                                              |
|       | -   · Flash file the copy of *VA Form 21-4180* in the claims |
|       |     folder, and                                              |
|       |                                                              |
|       | -   · when the original is returned, dispose of the copy.    |
+-------+--------------------------------------------------------------+
| 2     | -   · Address and dispatch *VA Form 21-4180* to the          |
|       |     appropriate SSA Program Service Center (PSC), and        |
|       |                                                              |
|       | -   · establish a 90-day control.                            |
|       |                                                              |
|       | ***Reference***: For more information on addressing and      |
|       | dispatching *VA Form 21-4180*, see M21-1MR, Part IX, Subpart |
|       | ii, 1.C.6.e.                                                 |
+-------+--------------------------------------------------------------+
| 3     | Has a reply been received from the SSA before the end of the |
|       | 90-day control period?                                       |
|       |                                                              |
|       | -   · If *yes,* take appropriate action as shown in M21-1MR, |
|       |     Part IX, Subpart ii, 1.C.7.d.                            |
|       |                                                              |
|       | -   · If *no*                                                |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   \- send a follow-up by submitting another *VA Form       |
|       |     21-4180*, which may be a reproduction of the file copy   |
|       |     prominently marked "*SECOND REQUEST*," and               |
|       |                                                              |
|       | -   \- maintain a 30-day control for response to the         |
|       |     follow-up.                                               |
+-------+--------------------------------------------------------------+

Continued on next page

6\. Obtaining Information From the Social Security Administration (SSA),
Continued

  -----------------------------------------------------------------------
  c\. Preparing VA Form 21-4180 for Referral to the SSA (continued)

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

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 4     | Has the reply been received from the SSA before the end of   |
|       | the 30-day follow-up control period?                         |
|       |                                                              |
|       | -   · If *yes*, take appropriate action as shown in M21-1MR, |
|       |     Part IX, Subpart ii, 1.C.7.d.                            |
|       |                                                              |
|       | -   · If *no*                                                |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   \- follow up by fax or telephone, and                    |
|       |                                                              |
|       | -   \- maintain a 30-day control.                            |
+-------+--------------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Use the table below for instructions on how to        |
|  d. Comple | > complete the items on *VA Form 21-4180*, Part 1.      |
| ting VA Fo |                                                         |
| rm 21-4180 |                                                         |
+------------+---------------------------------------------------------+

+---------------------+------------------------------------------------+
| Item                | Description                                    |
+---------------------+------------------------------------------------+
| 1, 5, and 6         | Provide the veteran's                          |
|                     |                                                |
|                     | -   · full name                                |
|                     |                                                |
|                     | -   · date of birth, and                       |
|                     |                                                |
|                     | -   · date of death.                           |
|                     |                                                |
|                     | ***Note***: This information is of particular  |
|                     | importance for SSA purposes when the Social    |
|                     | Security number (SSN) is unknown or not        |
|                     | correct.                                       |
+---------------------+------------------------------------------------+
| 2                   | Provide the complete address of the regional   |
|                     | office (RO) submitting the form.               |
|                     |                                                |
|                     | ***Note***: Since SSA returns these forms in a |
|                     | window envelope, write the address so that the |
|                     | complete address can be seen in the window.    |
+---------------------+------------------------------------------------+
| 3                   | Enter the Department of Veterans Affairs (VA)  |
|                     | claim number.                                  |
+---------------------+------------------------------------------------+

Continued on next page

6\. Obtaining Information From the Social Security Administration (SSA),
Continued

  -----------------------------------------------------------------------
  d\. Completing VA Form 21-4180 (continued)

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

+---------------------+------------------------------------------------+
| Item                | Description                                    |
+---------------------+------------------------------------------------+
| 4                   | Enter either                                   |
|                     |                                                |
|                     | -   · the veteran's SSN, if known, or          |
|                     |                                                |
|                     | -   · "*Unknown*."                             |
+---------------------+------------------------------------------------+
| 7                   | List the following claimants, as applicable:   |
|                     |                                                |
|                     | -   · the surviving spouse                     |
|                     |                                                |
|                     | -   · all children under age 18 or helpless,   |
|                     |     and                                        |
|                     |                                                |
|                     | -   · parents.                                 |
|                     |                                                |
|                     | ***Important***: It is necessary to list *all* |
|                     | the possible claimants, such as, surviving     |
|                     | spouse, children, and parents, whether or not  |
|                     | a claim has been filed. When parents are       |
|                     | listed, make a notation as to whether or not   |
|                     | they have filed a claim for VA benefits.       |
+---------------------+------------------------------------------------+
| 8                   | Sign the Veterans Service Center Manager's     |
|                     | (VSCM) name.                                   |
+---------------------+------------------------------------------------+
| 14                  | Enter the appropriate SSA PSC as described in  |
|                     | M21-1MR, Part IX, Subpart ii, 1.C.6.e.         |
+---------------------+------------------------------------------------+

Continued on next page

6\. Obtaining Information From the Social Security Administration (SSA),
Continued

+------------+---------------------------------------------------------+
| #          | > Use the table below to determine how to address and   |
| #### e. Ad | > dispatch the completed *VA Form 21-4180* to the SSA.  |
| dressing a |                                                         |
| nd Dispatc |                                                         |
| hing VA Fo |                                                         |
| rm 21-4180 |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If ...                           | Then address VA Form 21-4180 to   |
|                                  | the ...                           |
+----------------------------------+-----------------------------------+
| the veteran's SSN is known       | appropriate SSA PSC as described  |
|                                  | in M21-1MR, Part III, Subpart     |
|                                  | iii, 3.A.6 (TBD) or M21-1, Part   |
|                                  | III, 9.02.                        |
+----------------------------------+-----------------------------------+
| the veteran's SSN is unknown     | SSA district office nearest the   |
|                                  | transmitting VARO as described in |
|                                  | M21-1MR, Part III, Subpart iii,   |
|                                  | 3.A.7 (TBD) or M21-1, Part III,   |
|                                  | 9.02.                             |
+----------------------------------+-----------------------------------+
| the veteran is a foreign         | Division of Foreign Claims        |
| claimant                         |                                   |
|                                  | Social Security Administration    |
|                                  |                                   |
|                                  | P. O. Box 1756                    |
|                                  |                                   |
|                                  | Baltimore, MD 21203               |
+----------------------------------+-----------------------------------+

#### 7. Handling Certification of Entitlement by the SSA

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the certification  |
| troduction | > of entitlement for the special allowance under 38     |
|            | > U.S.C. 1312(a), including information on              |
|            |                                                         |
|            | -   · certifying entitlement                            |
|            |                                                         |
|            | -   · the SSA action after determining eligibility      |
|            |                                                         |
|            | -   · the information that must be provided on *SSA     |
|            |     Form 101*, *SSA Form 101C*, or *SSA Form 101U3*     |
|            |                                                         |
|            | -   · the actions taken by VA when the SSA returns *VA  |
|            |     Form 21-4180*                                       |
|            |                                                         |
|            | -   · the action taken by VA if entitlement certified   |
|            |     by SSA is not payable                               |
|            |                                                         |
|            | -   · the action on receipt of an incomplete *VA Form   |
|            |     21-4180*, and                                       |
|            |                                                         |
|            | -   · when recertification is required.                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > The table below describes the process followed by the |
| . Certifyi | > SSA to certify entitlement for the special allowance  |
| ng Entitle | > under 38 U.S.C. 1312(a).                              |
| ment for t |                                                         |
| he Special |                                                         |
|  Allowance |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Stage | Description                                                  |
+-------+--------------------------------------------------------------+
| 1     | Receives notice of death from the service department.        |
+-------+--------------------------------------------------------------+
| 2     | Determines whether there are survivors eligible for the      |
|       | special allowance under 38 U.S.C. 1312(a).                   |
|       |                                                              |
|       | ***Reference***: For more information on the actions taken   |
|       | by the SSA after determining the claimant's entitlement to   |
|       | the special allowance, see M21-1MR, Part IX, Subpart ii,     |
|       | 1.C.7.b.                                                     |
+-------+--------------------------------------------------------------+
| 3     | Takes action as appropriate depending on the eligibility     |
|       | determination.                                               |
|       |                                                              |
|       | ***References***: For more information on                    |
|       |                                                              |
|       | -   · the appropriate SSA actions after determining          |
|       |     eligibility, see M21-1MR, Part IX, Subpart ii, 1.C.7.b.  |
|       |                                                              |
|       | -   · reviewing the *VA Form 21-4180* returned by the SSA to |
|       |     determine entitlement or nonentitlement, see M21-1MR,    |
|       |     Part IX, Subpart ii, 1.C.7.d.                            |
+-------+--------------------------------------------------------------+

Continued on next page

7\. Handling Certification of Entitlement by the SSA, Continued

+------------+---------------------------------------------------------+
| ##### b. S | > The table below describes the action SSA takes to     |
| SA Actions | > certify a claimant's entitlement to the special       |
|  After Det | > allowance under 38 U.S.C. 1312(a).                    |
| ermining E |                                                         |
| ligibility |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| When the SSA determines that ... | Then the SSA ...                  |
+----------------------------------+-----------------------------------+
| there are survivors eligible for | -   · returns *VA Form 21-4180*   |
| the special allowance            |     with the appropriate          |
|                                  |     notations                     |
|                                  |                                   |
|                                  | -   · furnishes a copy of an      |
|                                  |     award letter                  |
|                                  |                                   |
|                                  | -   · furnishes enclosures for    |
|                                  |     the award letter as described |
|                                  |     in M21-1MR, Part IX, Subpart  |
|                                  |     ii, 1.D.9, and                |
|                                  |                                   |
|                                  | -   · furnishes one of the        |
|                                  |     following forms to VA as      |
|                                  |     authority for payment:        |
|                                  |                                   |
|                                  | ```{=html}                        |
|                                  | <!-- -->                          |
|                                  | ```                               |
|                                  | -   \- *SSA Form 101*             |
|                                  |                                   |
|                                  | -   \- *SSA Form 101C, or*        |
|                                  |                                   |
|                                  | -   \- *SSA Form 101U3*.          |
+----------------------------------+-----------------------------------+
| -   · there is *no* survivor     | -   · disallows the claim, and    |
|     eligible to receive the      |                                   |
|     special allowance, or        | -   · notifies the claimant.      |
|                                  |                                   |
| -   · the special allowance is   | ***Note***: VA is not responsible |
|     *not* payable because there  | for furnishing a notice of        |
|     is entitlement to an old-age | disallowance or right of appeal,  |
|     and survivors insurance      | except for an adverse             |
|     payment                      | determination as described in     |
|                                  | M21-1MR, Part IX, Subpart ii,     |
|                                  | 1.B.4, and then only if there is  |
|                                  | a specific claim for the special  |
|                                  | allowance.                        |
+----------------------------------+-----------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Do *not* take award action to pay the special         |
| ### c. Inf | > allowance unless the *SSA Form 101*, *SSA Form 101C*, |
| ormation T | > or *SSA Form 101U3* furnished by the SSA contains the |
| hat Must B |                                                         |
| e Provided | -   · name and address of each beneficiary              |
|  on SSA Fo |                                                         |
| rm 101, SS | -   · monthly rate of payment                           |
| A Form 101 |                                                         |
| C, or SSA  | -   · first month of entitlement, and                   |
| Form 101U3 |                                                         |
|            | -   · notation "*Do not certify. VA Payment Only*."     |
+------------+---------------------------------------------------------+

Continued on next page

7\. Handling Certification of Entitlement by the SSA, Continued

+------------+---------------------------------------------------------+
| #####      | > Use the table below to determine the action to take   |
|  d. Action | > when the SSA returns *VA Form 21-4180*.               |
| s Taken by | >                                                       |
|  VA When t | > ***Note***: When the certification of entitlement by  |
| he SSA Ret | > the SSA is received in a VA RO other than the         |
| urns VA Fo | > Washington Regional Office (WRO), take action as      |
| rm 21-4180 | > provided in M21-1MR, Part IX, Subpart ii, 1.A.2.b.    |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If ...                           | Then ...                          |
+----------------------------------+-----------------------------------+
| *VA Form 21-4180*, Item 10A is   | -   · the special allowance is    |
| checked                          |     payable                       |
|                                  |                                   |
|                                  | -   · take adjudicative action on |
|                                  |     all pending claims, and       |
|                                  |                                   |
|                                  | -   · when all claims are         |
|                                  |     finalized, transfer the       |
|                                  |     deceased veteran's claims     |
|                                  |     folder to the WRO for payment |
|                                  |     of the special allowance.     |
|                                  |                                   |
|                                  | ***Reference***: For more         |
|                                  | information on the jurisdiction   |
|                                  | for payment of the special        |
|                                  | allowance, see M21-1MR, Part IX,  |
|                                  | Subpart ii, 1.A.2.                |
+----------------------------------+-----------------------------------+
| *VA Form 21-4180*, Item 11A is   | -   · the special allowance is    |
| checked                          |     *not* payable                 |
|                                  |                                   |
|                                  | -   · file *VA Form 21-4180* in   |
|                                  |     the deceased veteran's claims |
|                                  |     folder, and                   |
|                                  |                                   |
|                                  | -   · take no further action.     |
+----------------------------------+-----------------------------------+
| *VA Form 21-4180*, Item 11B is   | -   · send a letter to the        |
| checked                          |     surviving spouse advising of  |
|                                  |     possible entitlement at age   |
|                                  |     60, and                       |
|                                  |                                   |
|                                  | -   · inform the surviving spouse |
|                                  |     that he/she should contact VA |
|                                  |     at age 60.                    |
|                                  |                                   |
|                                  | ***Note***: This does not affect  |
|                                  | the jurisdiction of the claims    |
|                                  | folder.                           |
+----------------------------------+-----------------------------------+
| *VA Form 21-4180*, Item 11C is   | there is no one eligible to       |
| checked                          | receive Social Security benefits. |
|                                  |                                   |
|                                  | ***Note***: Take no further       |
|                                  | action.                           |
+----------------------------------+-----------------------------------+

Continued on next page

7\. Handling Certification of Entitlement by the SSA, Continued

+------------+---------------------------------------------------------+
| ####       | > If VA determines that entitlement certified by SSA on |
| # e. Actio | > *SSA Form 101*, *SSA Form 101C*, or *SSA Form 101U3*  |
| n Taken by | > is not payable for any reason, notify the SSA PSC     |
|  VA if Ent | > that made the certification.                          |
| itlement C |                                                         |
| ertified b |                                                         |
| y SSA Is N |                                                         |
| ot Payable |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Use the table below to determine what action to take  |
| #### f. Ac | > when the SSA returns an incomplete *VA Form 21-4180*  |
| tion Taken | > because the claimant failed to respond to             |
|  by VA on  | > correspondence from the SSA.                          |
| Receipt of |                                                         |
|  an Incomp |                                                         |
| lete VA Fo |                                                         |
| rm 21-4180 |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If the ...                       | Then ...                          |
+----------------------------------+-----------------------------------+
| *VA Form 21-4180* contains the   | -   · file *VA Form 21-4180* in   |
| most recent address of the       |     the deceased veteran's claims |
| claimant as shown in the claims  |     folder                        |
| folder                           |                                   |
|                                  | -   · annotate *VA Form 21-4180*  |
|                                  |     with "*NAN*," and             |
|                                  |                                   |
|                                  | -   · include                     |
|                                  |                                   |
|                                  | ```{=html}                        |
|                                  | <!-- -->                          |
|                                  | ```                               |
|                                  | -   \- the initials of the        |
|                                  |     employee making the           |
|                                  |     annotation, and               |
|                                  |                                   |
|                                  | -   \- the current date.          |
+----------------------------------+-----------------------------------+
| claims folder contains a more    | -   · send another *VA Form       |
| recent address                   |     21-4180* containing the most  |
|                                  |     recent address of record to   |
|                                  |     the SSA PSC, and              |
|                                  |                                   |
|                                  | -   · annotate *VA Form 21-4180*  |
|                                  |     to show it is being submitted |
|                                  |     due to the receipt of a       |
|                                  |     current address.              |
+----------------------------------+-----------------------------------+

+------------+---------------------------------------------------------+
| #          | > If an award of special allowance is delayed by VA for |
| #### g. Wh | > more than one year after the date of approval of the  |
| en Recerti | > *SSA Form 101*, *SSA Form 101C*, or *SSA Form 101U3*  |
| fication I | > by the servicing SSA PSC, contact that office by      |
| s Required | > letter requesting verification of continued           |
|            | > eligibility before processing an award.               |
+------------+---------------------------------------------------------+

## Section D. Authorization and Notification

#### Overview

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

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

  8            Entering Award Data on the Benefits Delivery   1-D-2
               Network (BDN) System                           

  9            Sending Notification of the Original Award     1-D-5

  10           Handling Death of the Claimant Before Payment  1-D-7
               Is Made                                        

  11           Determining Children's Awards                  1-D-8

  12           Discontinuing Payments                         1-D-10

  13           Reinstating Benefits                           1-D-12

  14           Terminating Payments for Children Reaching Age 1-D-13
               18                                             

  15           Handling Appeals                               1-D-15
  ------------ ---------------------------------------------- ------------

#### 8. Entering Award Data on the Benefits Delivery Network (BDN) System

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on entering award     |
| troduction | > data on the Benefits Delivery Network (BDN) system,   |
|            | > including instructions for                            |
|            |                                                         |
|            | -   · entering the award data, and                      |
|            |                                                         |
|            | -   · determining the ending dates for awards involving |
|            |     a child or children.                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Use the table below to enter the award data on the    |
| ### a. Ent | > Benefits Delivery Network (BDN) system for awards of  |
| ering the  | > the special allowance payable under 38 U.S.C.         |
| Award Data | > 1312(a).                                              |
+------------+---------------------------------------------------------+

+---------------------+------------------------------------------------+
| Award Data          | Description                                    |
+---------------------+------------------------------------------------+
| Payee Code          | Use the appropriate payee code for awards      |
|                     | under 38 U.S.C. 1312(a) from M21-1, Part I,    |
|                     | Appendix C, Table C.                           |
+---------------------+------------------------------------------------+
| Veteran's Social    | Ensure that the veteran's Social Security      |
| Security Number     | number (SSN) shown in Beneficiary              |
|                     | Identification and Records Location Subsystem  |
|                     | (BIRLS) is the same as that shown on           |
|                     |                                                |
|                     | -   · *SSA Form 101*, *Determination of Award* |
|                     |                                                |
|                     | -   · *SSA Form 101C*, *Determination of       |
|                     |     Award*, or                                 |
|                     |                                                |
|                     | -   · *SSA Form 101U3*, *Determination of      |
|                     |     Award*.                                    |
|                     |                                                |
|                     | If the number is incorrect, enter the correct  |
|                     | number in BIRLS.                               |
+---------------------+------------------------------------------------+

Continued on next page

8\. Entering Award Data on the Benefits Delivery Network (BDN) System,
Continued

  -----------------------------------------------------------------------
  a\. Entering the Award Data (continued)

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

+---------------------+------------------------------------------------+
| Award Data          | Description                                    |
+---------------------+------------------------------------------------+
| Special Law Code 15 | Enter special law (SL) code 15 on Dependency   |
|                     | and Indemnity Compensation (DIC) awards to     |
|                     | beneficiaries having entitlement to the        |
|                     | special allowance.                             |
|                     |                                                |
|                     | Maintain SL code 15 on the DIC award           |
|                     | regardless of whether or not there is a        |
|                     | running award of the special allowance as long |
|                     | as the probability of entitlement continues.   |
|                     |                                                |
|                     | ***Note***: When determining the rate payable  |
|                     | in a DIC award to a parent, the special        |
|                     | allowance under 38 U.S.C. 1312(a) must be      |
|                     | included as "Other Income" and counted in the  |
|                     | computation of income for Department of        |
|                     | Veterans Affairs (VA) purposes per 38 CFR      |
|                     | 3.261(a)(20).                                  |
+---------------------+------------------------------------------------+
| Dependency          | Use the same dependency codes used on any      |
|                     | other award.                                   |
|                     |                                                |
|                     | ***Reference***: For more information on the   |
|                     | dependency codes, see M21-1, Part V, 6.06.     |
+---------------------+------------------------------------------------+
| Entitlement Code    | Use the appropriate entitlement code for       |
|                     | "*DIC-Special Allowance*" from M21-1, Part I,  |
|                     | Appendix C, Table A.                           |
+---------------------+------------------------------------------------+
| Monthly Rate        | Pay the amount certified by the Social         |
|                     | Security Administration (SSA).                 |
|                     |                                                |
|                     | If the amount certified is not a whole-dollar  |
|                     | amount, round down to the nearest dollar.      |
+---------------------+------------------------------------------------+
| Effective Date      | The commencement date of an award is always    |
|                     | the first day of the month in which the        |
|                     | individual is eligible to receive benefits as  |
|                     | certified by the SSA.                          |
|                     |                                                |
|                     | ***Example***: When *SSA Form 101*, *SSA Form  |
|                     | 101C*, or *SSA Form 101U3* shows "*4/02*" as   |
|                     | the commencing date, use 04/01/2002 as the     |
|                     | effective date on the 403 screen.              |
+---------------------+------------------------------------------------+

Continued on next page

8\. Entering Award Data on the Benefits Delivery Network (BDN) System,
Continued

  -----------------------------------------------------------------------
  a\. Entering the Award Data (continued)

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

  --------------------- -------------------------------------------------
  Award Data            Description

  Ending Date - Child   Do not provide an ending date on awards to a
  Involved              surviving spouse, parent, or helpless child (when
                        he/she is the only child on the award, unless
                        certified by the SSA.)

  Ending Date - Child   Provide an ending date on all awards to, or on
  or Children Involved  behalf of, a child or children other than
                        helpless children.
  --------------------- -------------------------------------------------

+------------+---------------------------------------------------------+
| ####       | > Use the table below to determine the ending dates for |
| # b. Deter | > awards involving a child or children.                 |
| mining End |                                                         |
| ing Dates  |                                                         |
| for Awards |                                                         |
|  Involving |                                                         |
|  a Child o |                                                         |
| r Children |                                                         |
+------------+---------------------------------------------------------+

  ----------------------------------- -----------------------------------
  If the award is on the behalf of    Then ...
  ...                                 

  a child or children                 terminate the benefits the first
                                      day of the month in which the
                                      youngest child on the award reaches
                                      age 18, per M21-1MR, Part IX,
                                      Subpart ii, 1.D.

  a helpless child                    do not show a termination date if
                                      he/she is the only child on the
                                      award.
  ----------------------------------- -----------------------------------

+-----------------------------------------------------------------------+
| > ***Notes***:                                                        |
|                                                                       |
| -   · A child attains the age of 18 years the day preceding the       |
|     anniversary date of his/her birth. Therefore, a child born on     |
|     July 1 is considered to have attained the age of 18 years on June |
|     30, and the last date of entitlement for the child is May 31,     |
|     requiring an ending date of June 1.                               |
|                                                                       |
| -   · Use an earlier date in those cases in which an earlier          |
|     termination date is certified by the SSA for reasons such as      |
|     death or marriage.                                                |
+-----------------------------------------------------------------------+

#### 9. Sending Notification of the Original Award

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on sending            |
| troduction | > notification of the original award, including         |
|            | > information on                                        |
|            |                                                         |
|            | -   · notifying claimants of award approval             |
|            |                                                         |
|            | -   · what to include in the award letter               |
|            |                                                         |
|            | -   · the wording to include in the award letter, and   |
|            |                                                         |
|            | -   · sending a copy of the award to the SSA.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Notify the claimant when an original award is         |
| a. Notifyi | > approved using a locally-generated letter containing  |
| ng Claiman | > both the claim number and SSN. Use the copy of the    |
| ts of Awar | > award notice letter furnished by the SSA as a         |
| d Approval | > pattern.                                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > In the award letter                                   |
| #### b. In |                                                         |
| formation  | -   · identify the SSA district office as shown on the  |
| to Include |     *SSA Form 101*, *SSA Form 101C*, or *SSA Form       |
|  in the Aw |     101U3*, and                                         |
| ard Letter |                                                         |
|            | -   · include any enclosures the SSA furnished with     |
|            |     *SSA Form 101*, *SSA Form 101C*, or *SSA Form       |
|            |     101U3* if it is indicated that these would have     |
|            |     been sent to the claimant if he/she have been in an |
|            |     insured status under old-age and survivor's         |
|            |     insurance.                                          |
+------------+---------------------------------------------------------+

Continued on next page

9\. Sending Notification of the Original Award, Continued

+------------+---------------------------------------------------------+
| ##### c    | > Include the following wording when sending the award  |
| . Wording  | > letter to the claimant:                               |
| to Include | >                                                       |
|  in the Aw | > "*This award is made by the Department of Veterans    |
| ard Letter | > Affairs (VA) as a result of claims development by the |
|            | > Social Security Administration District Office,       |
|            | > **\[office name\]**, and is in accordance with a      |
|            | > determination made by the Social Security             |
|            | > Administration Program Service Center, **\[service    |
|            | > center\]**. If you have any questions about this      |
|            | > award, you should discuss them with the Social        |
|            | > Security Administration District Office. The          |
|            | > occurrence of any of the events referred to in the    |
|            | > enclosed instructions should be reported promptly to  |
|            | > the Social Security Administration and VA. These      |
|            | > enclosures contain important information and          |
|            | > instructions which should be carefully followed.*"    |
|            | >                                                       |
|            | > "*Immediate notice should be given of the death or    |
|            | > marriage of any beneficiary for whom benefits are     |
|            | > being paid under this award. If either event should   |
|            | > occur, any checks received thereafter must not be     |
|            | > negotiated. Such checks should be returned to the     |
|            | > Washington VA Regional Office, 1120 Vermont Ave., NW, |
|            | > Washington, DC 20421, with a statement giving the     |
|            | > date of death or marriage (along with the married     |
|            | > name and address) and whereabouts of any children     |
|            | > under age 18 who may be entitled to payments.*"       |
|            | >                                                       |
|            | > "*The Department of Veterans Affairs and the Social   |
|            | > Security Administration should also be notified       |
|            | > immediately if you change your address. Show both the |
|            | > claim number and Social Security number shown above   |
|            | > when writing to either of these agencies.*"           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d    | > Send one copy of the award document print and two     |
| . Sending  | > copies of the award letter being sent to the claimant |
| a Copy of  | > to the SSA Program Service Center (PSC) from which    |
| the Award  | > the *SSA Form 101*, *SSA Form 101C*, or *SSA Form     |
| to the SSA | > 101U3* was received.                                  |
+------------+---------------------------------------------------------+

#### 10. Handling Death of the Claimant Before Payment Is Made

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Use the table below to determine what action is       |
| Handling D | > needed if the claimant dies before or after           |
| eath of th | > certification, but before payment is made.            |
| e Claimant |                                                         |
+------------+---------------------------------------------------------+

  ----------------------------------- -----------------------------------
  If there is ...                     Then ...

  a remaining eligible survivor(s)    SSA furnishes a certification to
                                      the survivor(s), adding the accrued
                                      amount payable for the deceased
                                      claimant to the certification.

  no remaining eligible survivor      the finance activity transmits
                                      inquiries to the General Accounting
                                      Office to request a settlement.
  ----------------------------------- -----------------------------------

#### 11. Determining Children's Awards

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on determining        |
| troduction | > children's awards, including information on           |
|            |                                                         |
|            | -   · determining the monthly rates for children        |
|            |                                                         |
|            | -   · payment of the child's award when the surviving   |
|            |     spouse's payments are discontinued, and             |
|            |                                                         |
|            | -   · payment when the surviving spouse's payments are  |
|            |     resumed.                                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Use the table below to determine the monthly rates    |
|  Determini | > for children.                                         |
| ng Monthly |                                                         |
|  Rates for |                                                         |
|  Children  |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If the award involves a child or | Then ...                          |
| children in the custody of a ... |                                   |
+----------------------------------+-----------------------------------+
| surviving spouse                 | -   · combine the monthly rates   |
|                                  |     payable for the child or      |
|                                  |     children with the surviving   |
|                                  |     spouse's rate and show the    |
|                                  |     award as a total monthly rate |
|                                  |     payable to the surviving      |
|                                  |     spouse, or                    |
|                                  |                                   |
|                                  | -   · pay the child or children   |
|                                  |     under one consolidated award  |
|                                  |     if the surviving spouse is    |
|                                  |     not entitled to the benefit.  |
+----------------------------------+-----------------------------------+
| divorced spouse                  | prepare separate awards to the    |
|                                  | spouse and to the fiduciary for   |
|                                  | the child or children.            |
|                                  |                                   |
|                                  | ***Notes***:                      |
|                                  |                                   |
|                                  | -   · The children's separate     |
|                                  |     entitlements may be combined  |
|                                  |     in a consolidated award.      |
|                                  |                                   |
|                                  | -   · Do *not* combine awards of  |
|                                  |     special allowances payable to |
|                                  |     a divorced spouse and a child |
|                                  |     or children in custody.       |
+----------------------------------+-----------------------------------+

Continued on next page

11\. Determining Children's Awards, Continued

+------------+---------------------------------------------------------+
| #          | > If payments to a surviving spouse are discontinued    |
| #### b. Pa | > because of excessive earnings as certified by SSA,    |
| yment of t | > authorize payment of the share for each child, as     |
| he Child's | > certified by SSA on *SSA Form 101*, *SSA Form 101C*,  |
|  Award Whe | > *SSA Form 101U3*, or *SSA* *Form 656*, *Information   |
| n the Spou | > as to Continuing Eligibility Under Title 38 U.S.C.,   |
| se's Payme | > Section 412, Veterans Benefits*, to a                 |
| nts Are Di |                                                         |
| scontinued | -   · parent under 38 CFR 3.850(c), or                  |
|            |                                                         |
|            | -   · fiduciary.                                        |
|            |                                                         |
|            | > Unless the SSA certifies otherwise, continue payments |
|            | > until the youngest child reaches age 18.              |
|            | >                                                       |
|            | > ***Reference***: For more information on continuing   |
|            | > payments until the youngest child reaches age 18, see |
|            | > M21-1MR, Part IX, Subpart ii, 1.D.14.                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If the surviving spouse again becomes entitled, make  |
|  c. Paymen | > a separate award to the surviving spouse even though  |
| t When the | > the children are in custody.                          |
|  Surviving | >                                                       |
|  Spouse's  | > Notify both the surviving spouse and the parent under |
| Payments A | > 38 CFR 3.850(c) or fiduciary for each child that if,  |
| re Resumed | > at any time, a child is no longer in the custody of   |
|            | > the surviving spouse, VA and the SSA must be informed |
|            | > immediately.                                          |
+------------+---------------------------------------------------------+

#### 12. Discontinuing Payments

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on discontinuing      |
| troduction | > payments, including information on                    |
|            |                                                         |
|            | -   · the temporary suspension of payments by VA        |
|            |                                                         |
|            | -   · the termination of payments by the SSA            |
|            |                                                         |
|            | -   · the action initiated by VA to suspend payments,   |
|            |     and                                                 |
|            |                                                         |
|            | -   · the action taken by VA to notify the payee of     |
|            |     termination of payments.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > VA may temporarily suspend payments, pending a final  |
| . Temporar | > determination by the SSA, on receipt of any of the    |
| y Suspensi | > following notices:                                    |
| on of Paym |                                                         |
| ents by VA | -   · death of a beneficiary                            |
|            |                                                         |
|            | -   · marriage of a child beneficiary                   |
|            |                                                         |
|            | -   · marriage of a surviving spouse, or                |
|            |                                                         |
|            | -   · failure of a surviving spouse under age 60 to     |
|            |     have at least one child under age 18 or helpless in |
|            |     custody.                                            |
|            |                                                         |
|            | > ***Note***: When payments to a surviving spouse are   |
|            | > being terminated because a child under age 18 or      |
|            | > helpless is no longer in custody, include in the      |
|            | > letter to the payee notice of potential entitlement   |
|            | > at age 60 upon the filing of a new application.       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > The SSA                                               |
| ## b. Term |                                                         |
| ination of | -   · uses *SSA* *Form 656* to request VA to stop       |
|  Payments  |     payments, and                                       |
| by the SSA |                                                         |
|            | -   · includes a letter, or draft of the letter, and    |
|            |     attachments which the SSA would have sent to the    |
|            |     beneficiary had insured status existed.             |
+------------+---------------------------------------------------------+

Continued on next page

12\. Discontinuing Payments, Continued

+------------+---------------------------------------------------------+
| #          | > Follow the steps in the table below to suspend        |
| #### c. Ac | > payments on receipt of the notices described in       |
| tion Initi | > M21-1MR, Part IX, Subpart ii, 1.D.12.a.               |
| ated by VA |                                                         |
|  to Suspen |                                                         |
| d Payments |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Suspend payments and annotate the print with the reason for  |
|       | suspension.                                                  |
+-------+--------------------------------------------------------------+
| 2     | Send a locally-generated letter to the claimant              |
|       |                                                              |
|       | -   · giving the reason for the suspension, and              |
|       |                                                              |
|       | -   · advising that further information will be furnished    |
|       |     when a final determination has been made by the SSA.     |
+-------+--------------------------------------------------------------+
| 3     | Send a copy of the BDN print and the original or a copy of   |
|       | the evidence upon which the action was based to the          |
|       | servicing SSA PSC.                                           |
|       |                                                              |
|       | ***Note***: If the original evidence is sent, make a copy    |
|       | for the deceased veterans claims folder.                     |
+-------+--------------------------------------------------------------+
| 4     | Take action to discontinue the award or to resume payment    |
|       | *only* upon authorization by the SSA.                        |
+-------+--------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Follow the steps in the table below to notify the     |
| # d. Actio | > payee of termination of payments upon authorization   |
| n Taken by | > by the SSA.                                           |
|  VA to Not |                                                         |
| ify the Pa |                                                         |
| yee of Ter |                                                         |
| mination o |                                                         |
| f Payments |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Notify the payee of the action taken and the reason for the  |
|       | termination by locally-generated letter                      |
|       |                                                              |
|       | -   · using the letter furnished by the SSA as a pattern,    |
|       |     and                                                      |
|       |                                                              |
|       | -   · enclosing the SSA attachments with the letter.         |
+-------+--------------------------------------------------------------+
| 2     | Send a copy of the letter to the claimant to the servicing   |
|       | SSA PSC.                                                     |
+-------+--------------------------------------------------------------+

#### 13. Reinstating Benefits

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > The table below describes the process to reinstate    |
|  Process t | > benefits.                                             |
| o Reinstat |                                                         |
| e Benefits |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------+-----------------------------------------+
| Stage | Who Is Responsible | Description                             |
+-------+--------------------+-----------------------------------------+
| 1     | SSA PSC            | Authorizes the reinstatement of         |
|       |                    | benefits on *SSA Form 656*.             |
+-------+--------------------+-----------------------------------------+
| 2     | VA                 | -   · Informs the payee of the reason   |
|       |                    |     for the reinstatement of benefits   |
|       |                    |     by locally-generated letter using   |
|       |                    |     the letter furnished by the SSA as  |
|       |                    |     a pattern, and                      |
|       |                    |                                         |
|       |                    | -   · sends the servicing SSA PSC a     |
|       |                    |     copy of the                         |
|       |                    |                                         |
|       |                    | ```{=html}                              |
|       |                    | <!-- -->                                |
|       |                    | ```                                     |
|       |                    | -   \- letter addressed to the          |
|       |                    |     beneficiary, and                    |
|       |                    |                                         |
|       |                    | -   \- award.                           |
+-------+--------------------+-----------------------------------------+

#### 14. Terminating Payments for Children Reaching Age 18 

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on terminating        |
| troduction | > payments for children reaching age 18, including      |
|            | > information on the                                    |
|            |                                                         |
|            | -   · Hines Information Technology Center (ITC) message |
|            |     six months prior to the child's 18^th^ birthday     |
|            |                                                         |
|            | -   · VA notice to the SSA on the child's approaching   |
|            |     18^th^ birthday                                     |
|            |                                                         |
|            | -   · action taken by the SSA upon receipt of VA notice |
|            |     of a child's approaching 18^th^ birthday, and       |
|            |                                                         |
|            | -   · action taken by VA on receipt of the              |
|            |     certification from the SSA.                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Six months prior to the child's 18^th^ birthday, the  |
| # a. Hines | > Hines Information Technology Center (ITC) furnishes   |
|  ITC Messa | > Msg. Code 688, *Child Reaching Age 18 Special         |
| ge Six Mon | > Allowance SEC 1312(A)*.                               |
| ths Prior  |                                                         |
| to the Chi |                                                         |
| ld's 18^th |                                                         |
| ^ Birthday |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Six months in advance of the 18^th^ birthday of each  |
| ### b. VA  | > child for whom payments are being made under 38       |
| Notice to  | > U.S.C. 1312(a), VA                                    |
| the SSA on |                                                         |
|  the Child | -   · notifies the SSA PSC by letter of the approaching |
| 's Approac |     18^th^ birthday, and                                |
| hing 18^th |                                                         |
| ^ Birthday | -   · includes the following information in the letter: |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   \- the SSN                                          |
|            |                                                         |
|            | -   \- the name of the child                            |
|            |                                                         |
|            | -   \- the date of birth of the child, and              |
|            |                                                         |
|            | -   \- the name and address of the person to whom       |
|            |     payments are being made for the child.              |
+------------+---------------------------------------------------------+

Continued on next page

14\. Terminating Payments for Children Reaching Age 18, Continued

+------------+---------------------------------------------------------+
| ##### c.   | > Upon receipt of the notice sent by VA, SSA furnishes  |
| Action Tak | > VA with the following:                                |
| en by the  |                                                         |
| SSA Upon R | -   · a copy of a letter concerning termination of      |
| eceipt of  |     benefits that would be sent to the beneficiary if   |
| VA Notice  |     he/she were being paid by the SSA                   |
| of a Child |                                                         |
| 's Approac | -   · an amended certification, if required, for the    |
| hing 18^th |     remaining beneficiaries, and                        |
| ^ Birthday |                                                         |
|            | -   · a copy of the letter that SSA would send the      |
|            |     remaining beneficiaries, if they were being paid by |
|            |     that agency, together with enclosures.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Follow the steps in the table below when the SSA      |
| ### d. Act | > furnishes the appropriate letter and the amended      |
| ion Taken  | > certification.                                        |
| by VA on R |                                                         |
| eceipt of  |                                                         |
| the Certif |                                                         |
| ication fr |                                                         |
| om the SSA |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | -   · Send a locally-generated letter concerning the         |
|       |     termination of benefits to the payee for the child who   |
|       |     is attaining age 18 years using the copy of the letter   |
|       |     furnished by SSA as a pattern, and                       |
|       |                                                              |
|       | -   · send a copy of the letter to the servicing SSA PSC.    |
+-------+--------------------------------------------------------------+
| 2     | -   · Take any necessary award action that may be required   |
|       |     by the receipt of an amended certification, and          |
|       |                                                              |
|       | -   · send a copy of any letter written to the payee to the  |
|       |     servicing SSA PSC.                                       |
+-------+--------------------------------------------------------------+

#### 15. Handling Appeals

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Follow the usual appeal procedures if a notice of     |
| a. Followi | > disagreement with a determination made by VA is       |
| ng Appeal  | > received.                                             |
| Procedures | >                                                       |
|            | > Refer any protests regarding determinations made by   |
|            | > the SSA to the servicing SSA PSC and inform the       |
|            | > claimant of the referral.                             |
|            | >                                                       |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   · the eligibility determinations made by VA or the  |
|            |     SSA, see M21-1MR, Part IX, Subpart ii, 1.B, and     |
|            |                                                         |
|            | -   · appeal procedures, see M21-1MR, Part I, 5 (TBD)   |
|            |     or M21-1, Part IV, Chapter 8.                       |
+------------+---------------------------------------------------------+

## Section E. Medal of Honor Pension

#### Overview

+------------+---------------------------------------------------------+
| #          | > This section contains the topic "General Information  |
| #### In th | > on the Medal of Honor Pension."                       |
| is Section |                                                         |
+------------+---------------------------------------------------------+

#### 16. General Information on the Medal of Honor Pension

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the Medal of Honor |
| troduction | > Pension, including                                    |
|            |                                                         |
|            | -   · the definition of the term ***Medal of Honor      |
|            |     Pension***                                          |
|            |                                                         |
|            | -   · a general description of the Medal of Honor       |
|            |     Pension                                             |
|            |                                                         |
|            | -   · the dates of entitlement and payment              |
|            |                                                         |
|            | -   · when to pay the Medal of Honor Pension            |
|            |                                                         |
|            | -   · payment as the sole benefit                       |
|            |                                                         |
|            | -   · payment as an additional benefit, and             |
|            |                                                         |
|            | -   · the retroactive lump sum payment under 38 CFR     |
|            |     3.802(c).                                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2004                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > ***Medal of Honor Pension*** is a monthly             |
| ## a. Defi | > entitlement, which is paid as a sole benefit or added |
| nition: Me | > to pension or compensation rates for veterans who     |
| dal of Hon | > were awarded the Medal of Honor for distinguished     |
| or Pension | > military service.                                     |
|            | >                                                       |
|            | > ***Reference***: For more information on the rates of |
|            | > payment for the Medal of Honor Pension, see M21-1,    |
|            | > Part I, Appendix B.                                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > The Medal of Honor Pension is a special pension that  |
|  General I |                                                         |
| nformation | -   · does *not* deprive the veteran of entitlement to  |
|  on the Me |     any other pension or any other benefit, right, or   |
| dal of Hon |     privilege under any laws of the United States, and  |
| or Pension |                                                         |
|            | -   · is *not* subject to                               |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   \- reduction under 38 CFR 3.551, or                 |
|            |                                                         |
|            | -   \- termination under 38 CFR 3.557.                  |
|            |                                                         |
|            | > ***Reference***: For more information on the Medal of |
|            | > Honor Pension, see                                    |
|            |                                                         |
|            | -   · 38 CFR 3.802, and                                 |
|            |                                                         |
|            | -   · 38 U.S.C. 1562.                                   |
+------------+---------------------------------------------------------+

Continued on next page

16\. General Information on the Medal of Honor Pension, Continued

+------------+---------------------------------------------------------+
| #          | > The date of entitlement to the Medal of Honor Pension |
| #### c. Da | > is the date the veteran or serviceperson makes a      |
| tes of Ent | > written application to the Secretary of the military  |
| itlement a | > branch in which he/she served per 38 CFR 3.802(b).    |
| nd Payment | >                                                       |
|            | > The date of payment of the Medal of Honor Pension is  |
|            | > determined in accordance with the provisions of 38    |
|            | > CFR 3.31.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d    | > If the service department or Department of            |
| . When to  | > Transportation (DoT) certifies that a veteran or      |
| Pay the Me | > serviceperson is entitled to the Medal of Honor       |
| dal of Hon | > Pension                                               |
| or Pension |                                                         |
|            | -   · add the Medal of Honor entitlement amount to any  |
|            |     current award, or                                   |
|            |                                                         |
|            | -   · pay it as the sole benefit from the date          |
|            |     certified.                                          |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Follow the steps in the table below if the Medal of   |
| e. Payment | > Honor Pension is the sole benefit paid.               |
|  as the So |                                                         |
| le Benefit |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Enter the date of receipt of the Medal of Honor in the MEDAL |
|       | OF HONOR field on the Benefits Delivery Network (BDN) 401    |
|       | screen.                                                      |
+-------+--------------------------------------------------------------+
| 2     | Prepare the award on the BDN 403 screen with the following   |
|       | codes applicable to the period of service involved:          |
|       |                                                              |
|       | -   · special law (SL) code 01 as described in M21-1, Part   |
|       |     V, 6.09a(1), and                                         |
|       |                                                              |
|       | -   · the compensation entitlement code as shown in M21-1,   |
|       |     Part I, Appendix C.                                      |
+-------+--------------------------------------------------------------+
| 3     | Annotate the award document to show that the Medal of Honor  |
|       | Pension is awarded as the sole benefit.                      |
+-------+--------------------------------------------------------------+

Continued on next page

16\. General Information on the Medal of Honor Pension, Continued

+------------+---------------------------------------------------------+
| #          | > Follow the steps in the table below if the Medal of   |
| #### f. Pa | > Honor Pension is paid as an additional benefit.       |
| yment as a |                                                         |
| n Addition |                                                         |
| al Benefit |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Prepare awards of compensation or pension that include the   |
|       | Medal of Honor Pension with the data required to justify the |
|       | compensation or pension benefit authorized.                  |
+-------+--------------------------------------------------------------+
| 2     | Add the Medal of Honor Pension amount to the compensation or |
|       | pension rate authorized per 38 U.S.C. 1562.                  |
+-------+--------------------------------------------------------------+
| 3     | -   · Enter SL code 01, and                                  |
|       |                                                              |
|       | -   · annotate the award document citing the authority for   |
|       |     paying the Medal of Honor Pension as an additional       |
|       |     benefit.                                                 |
|       |                                                              |
|       | ***Reference***: For more information on the order of        |
|       | precedence for entries in the SL CODE field, see M21-1, Part |
|       | V, 6.09b.                                                    |
+-------+--------------------------------------------------------------+

+-----------------------------------------------------------------------+
| > ***Note***: If the Medal of Honor Pension becomes the sole benefit  |
| > payable, amend the award to terminate the other benefits and change |
| > the entitlement code if required.                                   |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### g. R | > Public Law 107-330 authorized a retroactive lump sum  |
| etroactive | > payment of Medal of Honor Pension to veterans who     |
|  Lump Sum  | > were entitled to receive Medal of Honor Pension on or |
| Payment El | > after October 1, 2003.                                |
| igibility  | >                                                       |
|            | > ***Reference***: For more information on retroactive  |
|            | > lump sum payments, see 38 CFR 3.802(c).               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > The amount of retroactive lump sum benefits payable   |
| # h. Amoun | > is equal to the total amount of Medal of Honor        |
| t of Lump  | > Pension the veteran would have received during the    |
| Sum Benefi | > period                                                |
| ts Payable |                                                         |
|            | -   · beginning on the first day of the month after the |
|            |     date of the event for which the veteran earned the  |
|            |     Medal of Honor, and                                 |
|            |                                                         |
|            | -   · ending on the last day of the month preceding the |
|            |     month in which Medal of Honor Pension was awarded.  |
+------------+---------------------------------------------------------+

Continued on next page

16\. General Information on the Medal of Honor Pension, Continued

+------------+---------------------------------------------------------+
| ##         | > Calculate the retroactive lump sum amount by using    |
| ### i. Cal | > the Medal of Honor Pension rate in effect from the    |
| culating t | > first day of the month after the date of the event    |
| he Retroac | > for which the Medal of Honor was granted to the last  |
| tive Lump  | > day of the month preceding the month in which the     |
| Sum Amount | > award of Medal of Honor Pension is effective.         |
|            | >                                                       |
|            | > ***Reference***: For more information on Medal of     |
|            | > Honor Pension rates of payment, see M21-1, Part I,    |
|            | > Appendix B.                                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### j. R | > Review the claims file to determine whether a         |
| eviewing C | > retroactive lump sum is payable whenever routinely    |
| ases for E | > encountering cases in which a veteran was receiving   |
| ntitlement | > Medal of Honor Pension as of October 1, 2003.         |
|  to Lump S | >                                                       |
| um Payment | > If the veteran has already been paid from the first   |
|            | > day of the month after the date of the event for      |
|            | > which the Medal of Honor was granted, a retroactive   |
|            | > lump sum payment is not warranted.                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### k.   | > If payment of a retroactive lump sum is in order      |
| Action if  |                                                         |
| Retroactiv | -   · refer the file to the Finance Activity to issue   |
| e Lump Sum |     an 06A one-time payment under 38 CFR 3.802(c), and  |
|  Payment i |                                                         |
| s in Order | -   · inform the veteran                                |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   \- of the reason for the retroactive payment, and   |
|            |                                                         |
|            | -   \- how it was calculated.                           |
+------------+---------------------------------------------------------+