Veterans Benefits Administration M21-1, Part III

**Department of Veterans Affairs Change 128**

**Washington, D.C. 20420 September 30, 2004**

Veterans Benefits Manual M21-1, Part III, \"Authorization and Clerical
Procedures,\" is changed as follows:

**Pages 2-III-3 and 2-III-4:** Remove these pages and substitute pages
2-III-3 and 2-III-4, attached.

A note has been added to paragraph 2.17(b) to indicate that copies of
the DD Form 1300 can be accepted electronically from the service
departments.

By Direction of the Under Secretary for Benefits

Renée L. Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

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

LOCAL REPRODUCTION AUTHORIZED

####### September 30, 2004 M21-1, Part III

##  Change 128

> \(3\) If the FNOD is not accompanied by VA Form 21-534, the Former POW
> coordinator will

-   review the claims folder in order to identify any survivor(s),

-   contact the survivor(s) (by telephone, or personal visit if
    possible),

-   complete a VA Form 21-534 as fully as possible using information in
    the folder and provided by the survivor(s),

-   mail the incomplete application to the survivor(s) to complete,
    sign, and correct if necessary; and,

-   annotate on the Former POW survivor flash the date that VA Form
    21-534 was sent to the survivor(s).

**2.15 SSA SURVIVORS' BENEFITS CLAIMS**

a\. **Processing.** If a completed Form SSA-24, Application for
Survivors Benefits, is attached to a VA Form 21-534 or 21-535 when it is
received in the Administrative activity, the Administrative activity
will date stamp the date of receipt on the SSA form as well as on the VA
form and enter the correct VA file number in item 12 of the SSA form.

**NOTE:** The Manila regional office will operate under the special
procedures providing for referrals to the SSA activity located in that
office.

b\. **Release.** The Administrative activity will send the form directly
to SSA without completing items to show what evidence has been received
and requested by VA.

\(1\) If the SSN is shown, send the form, without a cover letter, to the
appropriate program center listed in paragraph 9.02a.

> \(2\) If the SSN is not shown, send the form to the parallel SSA
> district office in paragraph 9.02b.

**2.16 CLAIMS INVOLVING DEATH COMPENSATION**

a\. **Death Compensation Eligibility.** If death occurred prior to
January 1, 1957, or in service waiver of insurance premiums under 38
U.S.C. 1924 was in effect if death occurred on or after May 1, 1957, but
prior to January 1, 1972, the basic benefit payable for
service-connected death is death compensation with the right to elect
DIC. See part IV, paragraph 20.50.

b\. **Assumed Election.** If death compensation is the basic benefit,
consider a VA Form 21-534 or 21-535 filed on or after January 1, 1972,
as a claim for DIC if the records show DIC would be the greater benefit
and the election is confirmed by the claimant (38 CFR 3.702(a)). Fully
inform the claimant of the award of DIC, determined as the greater
benefit on the basis of evidence of record, and of his or her right to
receive death compensation. If the claimant rejects DIC, award death
compensation, if otherwise in order, subject to the prior payment at the
DIC rate. **If, in a parent\'s claim, the DIC rate based on reported
income would be less than the death compensation rate, VA Form 21-509
will be required to determine if the dependency criteria of 38 CFR 3.250
are met for payment of death compensation.**

**2.17 DEATH IN SERVICE AND DIC−CASUALTY ASSISTANCE**

> a\. **Casualty Assistance.** The Casualty Assistance Program focuses
> on survivors of active duty personnel who die in service. Each
> designated regional office Casualty Assistance Officer will work
> closely with the appropriate military Casualty Assistance Officer
> (CAO) to expedite the processing of claims for benefits due survivors.

**2-III-3**

**M21-1, Part III September 30, 2004**

**Change 128**

b\. **Processing DIC Claims.** All in-service death claims will receive
initial processing through award or denial at the Philadelphia Regional
Office and Insurance Center. After a decision has been made, the claims
folder will be transferred to the office of jurisdiction. VA Form
21-534a, "Application for Dependency and Indemnity Compensation by a
Surviving Spouse or Child---In-Service Death Only," should be used when
a service member died while on active duty. VA Form 21-534 is not
required when a service member died while on active duty. Begin
processing a claim for DIC when VA Form 21-534a is accompanied by any of
the following documents:

-   DD Form 1300, Report of Casualty

-   Interim DD Form 1300.

> **NOTE:** In order to expedite the payment of DIC claims, signed or
> unsigned copies of the DD Form 1300 may be accepted electronically
> from the service department.
>
> c\. **Verification of Information**. Accept the marital history and/or
> dependency status reported on the DD Form 1300 or other DoD report
> identifying the claimant as the spouse, child or parent of the
> deceased service member unless there is evidence to the contrary in
> any existing claims file. Attempt to resolve any discrepancy via phone
> or through the CAO prior to award action. Written development will be
> initiated if necessary.

**2.18 DEATH DUE TO HOSPITALIZATION, MEDICAL OR SURGICAL TREATMENT,**

**EXAMINATION OR TRAINING**

See part IV, chapter 22 and part VI, chapter 7.

**2.19 ACCRUED BENEFITS**

a\. **Separate Application Not Required.** If review discloses there are
accrued benefits due and payable on the death of a veteran, a specific
claim will not be required if a VA Form 21-534 or 21-535 is being
forwarded to a claimant.

\(1\) Inform the preferred beneficiary (pt. IV, par. 27.10) that the
application must be filed within 1 year of the veteran\'s death.

\(2\) If an accrued lump sum is payable under 38 CFR 3.1001, advise that
the application must be filed within 5 years of the veteran\'s death.

\(3\) If only proceeds of returned and canceled checks are payable under
38 CFR 3.1003, make no mention as to a time limit on filing a claim for
these accrued amounts.

\(4\) State the approximate amount of accrued benefits due and payable,
if known, in the transmittal document.

b\. **Separate Application Required.** If it is not in order to initiate
a claim on VA Form 21-534 or 21-535 and the accrued amount payable is of
such size that the claimant\'s expense of procuring evidence would be
justified, forward an application as follows:

\(1\) **VA Form 21-614, Application for Accrued Amounts of Veteran\'s
Benefits Payable to Widow, Widower, Child or Dependent Parents.** Send
VA Form 21-614 to the surviving spouse, child or children or parents of
the veteran in the order named if accrued entitlement exists to
disability compensation or pension, annual clothing allowance, emergency
officer\'s retirement pay and subsistence or education and training
allowance. See 38 CFR 3.1000.

\(a\) In the transmittal document advise that accrued benefits will not
be payable unless the claim is filed within 1 year of the veteran\'s
death and state the approximate amount of accrued benefits due and
payable, if known.

**2-III-4**