### Section G. DIC Benefits Under 38 U.S.C. 1151

#### Overview

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

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

  35           General Information on the Prohibition Against 3-G-2
               Duplication of Benefits                        

  36           Awards Involving the Prohibition Against       3-G-4
               Duplication of Benefits                        

  37           Determining the Offset Effective Dates and     3-G-7
               Amounts of Offsets                             

  38           Preparation of Awards                          3-G-9

  39           Providing Notice of Awards                     3-G-11
  ------------ ---------------------------------------------- ------------

#### 35. General Information on the Prohibition Against Duplication of Benefits

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains general information on the        |
| troduction | > prohibition against duplication of benefits. It       |
|            | > includes information on                               |
|            |                                                         |
|            | -   application of the prohibition against duplication  |
|            |     of benefits                                         |
|            |                                                         |
|            | -   definition of ***judgment***                        |
|            |                                                         |
|            | -   consideration of judgments                          |
|            |                                                         |
|            | -   resolution of tort claims, and                      |
|            |                                                         |
|            | -   notification of favorable resolutions.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 16, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > The prohibition against duplication of benefits       |
| . Applicat | > applies whenever the claimant receives a sum of money |
| ion of Pro | > or property to settle a legal claim arising from the  |
| hibition A | > death of the veteran.                                 |
| gainst Dup |                                                         |
| lication o |                                                         |
| f Benefits |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > A ***judgment*** includes all of the following:       |
| ### b. Def |                                                         |
| inition of | -   settlement                                          |
|  Judgment  |                                                         |
| {#b.-defin | -   compromise                                          |
| ition-of-j |                                                         |
| udgment .u | -   administrative award, or                            |
| nnumbered} |                                                         |
|            | -   tort award.                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > It makes no difference                                |
|  c. Consid |                                                         |
| eration of | -   what the judgment amount to the claimant is called, |
|  Judgments |     or                                                  |
|            |                                                         |
|            | -   whether the judgment compensates for                |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   economic loss, such as loss of income, or           |
|            |                                                         |
|            | -   non-economic loss, such as pain and suffering.      |
+------------+---------------------------------------------------------+

Continued on next page

35\. General Information on the Prohibition Against Duplication of
Benefits, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > A tort claim against the government is resolved by    |
|  Resolutio |                                                         |
| n of Tort  | -   General Counsel                                     |
| Claims {#d |                                                         |
| .-resoluti | -   the U.S. Attorney General, or                       |
| on-of-tort |                                                         |
| -claims .u | -   Regional Counsel.                                   |
| nnumbered} |                                                         |
|            | > ***Note***: The circumstances of the individual case  |
|            | > determine who is responsible for resolving the tort   |
|            | > claim.                                                |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > In any case that is resolved in favor of the veteran, |
| e. Notific | > the Regional Counsel refers notice of the results of  |
| ation of F | > the tort claim to the Veterans Service Center Manager |
| avorable R | > (VSCM) of the regional office (RO) having             |
| esolutions | > jurisdiction of the claims folder.                    |
+------------+---------------------------------------------------------+

#### 36. Awards Involving the Prohibition Against Duplication of Benefits

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on awards involving   |
| troduction | > the prohibition against duplication of benefits. It   |
|            | > includes information on                               |
|            |                                                         |
|            | -   criteria for deferring award action                 |
|            |                                                         |
|            | -   tort claims resolved before December 1, 1962        |
|            |                                                         |
|            | -   tort claims resolved on or after December 1, 1962   |
|            |                                                         |
|            | -   the responsibility for determining the distribution |
|            |     of monies to others                                 |
|            |                                                         |
|            | -   the effects of a judgment on                        |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   pension benefits, and                               |
|            |                                                         |
|            | -   parent's Dependency and Indemnity Compensation      |
|            |     (DIC), and                                          |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   notice of proposed adverse action.                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > December 13, 2005                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Dependency and Indemnity Compensation (DIC) awards    |
| # a. Crite | > under [38 U.S.C.                                      |
| ria for De | > 1151](http://straylight.law.cornell.edu               |
| ferring Aw | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
| ard Action | > are subject to offset effective the first of the      |
|            | > month after the month during which the judgment       |
|            | > becomes final.                                        |
|            | >                                                       |
|            | > Do *not* defer a DIC award just because a tort claim  |
|            | > has been filed *unless* there is reason to believe it |
|            | > has been finalized.                                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > An administrative award or settlement that became     |
|  b. Tort C | > final *before* December 1, 1962, is a bar to all      |
| laims Reso | > further payments of death compensation or DIC under   |
| lved Befor | > [38 U.S.C.                                            |
| e December | > 1151](http://straylight.law.cornell.edu/              |
|  1, 1962 { | uscode/html/uscode38/usc_sec_38_00001151----000-.html). |
| #b.-tort-c |                                                         |
| laims-reso | > A court judgment that became final *before* December  |
| lved-befor | > 1, 1962, is not                                       |
| e-december |                                                         |
| -1-1962 .u | -   a bar to payment of death compensation or DIC under |
| nnumbered} |     [38 U.S.C.                                          |
|            |     1151](http://straylight.law.cornell.edu/            |
|            | uscode/html/uscode38/usc_sec_38_00001151----000-.html), |
|            |     or                                                  |
|            |                                                         |
|            | -   subject to offset, unless a bar or offset is        |
|            |     provided for by the terms of the judgment, per [38  |
|            |     CFR                                                 |
|            |     3.800](http://w                                     |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_800.DOC). |
+------------+---------------------------------------------------------+

Continued on next page

36\. Awards Involving the Prohibition Against Duplication of Benefits,
Continued

+------------+---------------------------------------------------------+
| ##### c.   | > Regardless of the date of the incident on which the   |
|  Tort Clai | > claim is based, the amount received by a claimant     |
| ms Resolve | > from a tort claim resolved on or after December 1,    |
| d on or Af | > 1962, must be recouped from DIC benefits granted      |
| ter Decemb | > under [38 U.S.C.                                      |
| er 1, 1962 | > 1151](http://straylight.law.cornell.edu               |
|            | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            | > per [38 CFR                                           |
|            | > 3.800](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_800.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | The individual distribution of monies *must* be         |
|  Responsib | determined if a judgment                                |
| ility for  |                                                         |
| Determinin | -   is made to, or for, two or more persons (either in  |
| g the Dist |     individual capacities, or as a personal             |
| ribution o |     representative(s) of the estate), and               |
| f Monies t |                                                         |
| o Other Be | -   involves a claimant whose award is subject to       |
| neficiarie |     offset.                                             |
| s {#d.-res |                                                         |
| ponsibilit |     > Use the information below to determine the        |
| y-for-dete |     > entitlement of other beneficiaries.               |
| rmining-th |                                                         |
| e-distribu |                                                         |
| tion-of-mo |                                                         |
| nies-to-ot |                                                         |
| her-benefi |                                                         |
| ciaries .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+---------------------------+------------------------------------------+
| If ...                    | Then ...                                 |
+---------------------------+------------------------------------------+
| > the claims folder is in | the VSCM                                 |
| > the RO when the         |                                          |
| > question of             | -   requests that Regional Counsel       |
| > distribution arises     |     determine the individual             |
|                           |     distribution of the                  |
|                           |                                          |
|                           | ```{=html}                               |
|                           | <!-- -->                                 |
|                           | ```                                      |
|                           | -   judgment award                       |
|                           |                                          |
|                           | -   settlement, or                       |
|                           |                                          |
|                           | -   compromise payment, and              |
|                           |                                          |
|                           | ```{=html}                               |
|                           | <!-- -->                                 |
|                           | ```                                      |
|                           | -   forwards the claims folder with the  |
|                           |     request.                             |
+---------------------------+------------------------------------------+
| > the claims folder is in | > General Counsel determines the         |
| > Central Office (CO)     | > distribution.                          |
| > under review when the   |                                          |
| > question of             |                                          |
| > distribution arises     |                                          |
+---------------------------+------------------------------------------+

Continued on next page

36\. Awards Involving the Prohibition Against Duplication of Benefits,
Continued

+------------+---------------------------------------------------------+
| ##### e. E | > No offset is required if a tort claim is resolved in  |
| ffects of  | > favor of a claimant who is                            |
| a Judgment |                                                         |
|  on Pensio | -   in receipt of pension, or                           |
| n Benefits |                                                         |
|            | -   eligible for DIC under [38 U.S.C.                   |
|            |     1151](http://straylight.law.cornell.edu             |
|            | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            |     but continues to receive pension instead of DIC.    |
|            |                                                         |
|            | > ***Note***: The net proceeds of the judgment are      |
|            | > countable income for pension purposes under [38 CFR   |
|            | > 3.26(i)](http:/                                       |
|            | /www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_26.DOC) |
|            | > and [38 CFR                                           |
|            | > 3.271(g)](http://w                                    |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_271.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Under [38 CFR                                         |
| f. Effects | > 3.262(i)](http://w                                    |
|  of a Judg | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_262.DOC), |
| ment on Pa | > if a tort claim is concluded in favor of a parent in  |
| rent's DIC | > receipt of DIC                                        |
|            |                                                         |
|            | -   an offset is required, and                          |
|            |                                                         |
|            | -   the net proceeds of the judgment are countable      |
|            |     income for DIC purposes.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Do not adjust an award to account for the receipt of  |
| # g. Notic | > proceeds of a judgment without providing a notice of  |
| e of Propo | > proposed adverse action, unless the claimant          |
| sed Advers |                                                         |
| e Action { | -   is the source of the information, and               |
| #g.-notice |                                                         |
| -of-propos | -   understands how the judgment will affect the amount |
| ed-adverse |     of benefits payable.                                |
| -action .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

#### 37. Determining the Offset Effective Dates and Amounts of Offsets

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on determining the    |
| troduction | > effective dates and amounts of offsets. It includes   |
|            | > information on                                        |
|            |                                                         |
|            | -   determining the final date of a judgment            |
|            |                                                         |
|            | -   considering retroactive adjustments, and            |
|            |                                                         |
|            | -   an example of a retroactive adjustment.             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > December 13, 2005                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > When an offset is required, begin withholding         |
| Determinin | > benefits effective the first of the month after the   |
| g the Fina | > month during which the judgment becomes final.        |
| l Date of  | >                                                       |
| a Judgment | > Use the information below to determine when various   |
|            | > judgments are considered final.                       |
+------------+---------------------------------------------------------+

  ----------------------------------- -----------------------------------
  If the judgment is an ...           Then the ...

  administrative award                judgment is considered final on the
                                      date of approval.

  Attorney General agreement          settlement or compromise entered
                                      into by the Attorney General after
                                      a suit has been filed is considered
                                      final when the agreement is
                                      approved by the court, even though
                                      a final order of dismissal may not
                                      be entered until a later date.
  ----------------------------------- -----------------------------------

+-----------------------------------------------------------------------+
| > ***Notes***:                                                        |
|                                                                       |
| -   If, after reviewing the evidence of record, there is any question |
|     as to the date the judgment became final, request clarification   |
|     from Regional Counsel.                                            |
|                                                                       |
| -   The total amount to be recouped is the gross amount of the        |
|     judgment awarded to the beneficiary.                              |
|                                                                       |
| ***Reference***: For more information on the prohibition against      |
| duplication of benefits, see M21-1MR, Part IV, Subpart iii, 3.G.35.   |
+-----------------------------------------------------------------------+

Continued on next page

37\. Determining the Offset Effective Dates and Amounts of Offsets,
Continued

+------------+---------------------------------------------------------+
| ####       | > Do not offset compensation for any period before the  |
| # b. Consi | > month following the date on which the settlement or   |
| dering Ret | > judgment becomes final.                               |
| roactive A | >                                                       |
| djustments | > ***Situation***: Action to adjust a [38 U.S.C.        |
|            | > 1151](http://straylight.law.cornell.edu               |
|            | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            | > award based on a favorable judgment creates a 97K     |
|            | > recoupment balance in the Compensation & Pension      |
|            | > (C&P) master record.                                  |
|            | >                                                       |
|            | > ***Action***: If final notice of a judgment is        |
|            | > received after commencement of compensation award,    |
|            | > the Department of Veterans Affairs (VA) must process  |
|            | > an offset retroactive to the first of the month       |
|            | > following the month of the judgment.                  |
|            | >                                                       |
|            | > ***Results***:                                        |
|            |                                                         |
|            | -   This retroactive adjustment to prevent duplication  |
|            |     of benefits creates a 30B accounts receivable in    |
|            |     the C&P master record in addition to the 97K        |
|            |     recoupment balance.                                 |
|            |                                                         |
|            | -   The 97K recoupment balance is reduced by the amount |
|            |     of the 30B accounts receivable.                     |
|            |                                                         |
|            | -   After processing the retroactive award, the sum of  |
|            |     the 97K recoupment balance and the 30B accounts     |
|            |     receivable should equal the amount of the judgment. |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c. E | > ***Situation***: A judgment is final on June 15,      |
| xample: Re | > 2002. The rating activity later grants compensation   |
| troactive  | > effective March 16, 2002.                             |
| Adjustment | >                                                       |
|            | > ***Action***: Do not offset any portion of the        |
|            | > veteran's compensation benefits prior to July 1,      |
|            | > 2002, the month following the date the judgment       |
|            | > became final.                                         |
+------------+---------------------------------------------------------+

#### 38. Preparation of Awards

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the preparation of |
| troduction | > awards. It includes information on                    |
|            |                                                         |
|            | -   determining the benefit payable                     |
|            |                                                         |
|            | -   determining entitlement codes                       |
|            |                                                         |
|            | -   using special law (SL) code 07                      |
|            |                                                         |
|            | -   withholding the offset                              |
|            |                                                         |
|            | -   entering the gross amount of a judgment, and        |
|            |                                                         |
|            | -   considering changes in the recoupment balance.      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > December 13, 2005                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. D | > The death benefit payable under [38 U.S.C.            |
| etermining | > 1151](http://straylight.law.cornell.edu               |
|  the Benef | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
| it Payable | > is DIC per [38 CFR                                    |
|            | > 3.800(b)](http://w                                    |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_800.DOC). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > If the veteran had wartime service, use the           |
|  Determini | > appropriate                                           |
| ng Entitle |                                                         |
| ment Codes | -   entitlement code for the latest entitling war       |
|            |     period, or                                          |
|            |                                                         |
|            | -   peacetime entitlement code.                         |
|            |                                                         |
|            | > ***Reference***: For more information on entitlement  |
|            | > codes, see [M21-1, Part V,                            |
|            | > 6.07](htt                                             |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch06.doc). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > If DIC is granted under [38 U.S.C.                    |
| # c. Using | > 1151](http://straylight.law.cornell.edu/              |
|  Special L | uscode/html/uscode38/usc_sec_38_00001151----000-.html), |
| aw Code 07 | > enter special law (SL) code 07 in the SL CODE field   |
|            | > on the 401 Screen.                                    |
|            |                                                         |
|            | > ***Note***: Use SL code 07 whether or not offset is   |
|            | > required.                                             |
|            | >                                                       |
|            | > ***Reference***: For more information on SL codes,    |
|            | > see [M21-1, Part V,                                   |
|            | > 6.09](htt                                             |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch06.doc). |
+------------+---------------------------------------------------------+

Continued on next page

38\. Preparation of Awards, Continued

+------------+---------------------------------------------------------+
| ##         | > Enter the amount of the offset as a type 7            |
| ### d. Wit | > withholding in the DED-OFFST field on the 403 screen. |
| hholding t |                                                         |
| he Offset  | > ***Reference***: For more information on withholding  |
| {#d.-withh | > and offset-recoupment data, see [M21-1, Part V,       |
| olding-the | > 6.11](htt                                             |
| -offset .u | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch06.doc). |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Enter the gross amount of the judgment in the TORT    |
| e. Enterin | > AWARDS field on the 401 screen. The maximum amount    |
| g the Gros | > that can be entered in the TORT AWARDS field is       |
| s Amount o | > \$999,999.99.                                         |
| f a Judgme |                                                         |
| nt {#e.-en | > ***Important***: If the tort award is \$1,000,000 or  |
| tering-the | > more                                                  |
| -gross-amo |                                                         |
| unt-of-a-j | -   enter \$999,999.99 on the 401 screen                |
| udgment .u |                                                         |
| nnumbered} | -   refer the file to the finance activity for entry of |
|            |     the remaining recoupment balance, and               |
|            |                                                         |
|            | -   maintain close control to ensure that the master    |
|            |     record recoupment balance is correct after the      |
|            |     finance transaction has been processed.             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### f.   | > Once a recoupment balance has been established in the |
|  Consideri | > master record, it can *not* be changed by amended     |
| ng Changes | > award action. Action by the finance activity is       |
|  in the Re | > required to change the recoupment balance.            |
| coupment B |                                                         |
| alance {#f | > If the recoupment balance must be changed             |
| .-consider |                                                         |
| ing-change | -   annotate the claims folder                          |
| s-in-the-r |                                                         |
| ecoupment- | -   send a routing slip to the finance activity         |
| balance .u |     requesting that the recoupment balance be changed,  |
| nnumbered} |     and                                                 |
|            |                                                         |
|            | -   maintain close control of the case to verify that   |
|            |     the change is properly posted to the master record. |
+------------+---------------------------------------------------------+

#### 39. Providing Notice of Awards

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on providing notice   |
| troduction | > of awards. It includes information on                 |
|            |                                                         |
|            | -   preparing a locally-generated letter                |
|            |                                                         |
|            | -   providing notice of offset and related requirements |
|            |                                                         |
|            | -   preparing a denial, and                             |
|            |                                                         |
|            | -   determining entitlement to ancillary benefits.      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > December 13, 2005                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. P | > The presence of SL code 07 in an award automatically  |
| reparing a | > suppresses the BDN award letter.                      |
|  Locally-G |                                                         |
| enerated L | > Prepare a locally-generated letter and compose the    |
| etter {#a. | > letter as follows:                                    |
| -preparing |                                                         |
| -a-locally | -   do *not* refer to the award as arising out of [38   |
| -generated |     U.S.C.                                              |
| -letter .u |     1151](http://straylight.law.cornell.edu             |
| nnumbered} | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            |     unless that was specifically claimed, and           |
|            |                                                         |
|            | -   indicate in the letter that                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   the claimant is entitled only to DIC, and           |
|            |                                                         |
|            | -   there is no independent entitlement to ancillary    |
|            |     benefits unless entitlement exists based on         |
|            |     disabilities which are service-connected (SC)       |
|            |     without regard to the provisions of [38 U.S.C.      |
|            |     1151](http://straylight.law.cornell.edu/            |
|            | uscode/html/uscode38/usc_sec_38_00001151----000-.html). |
|            |                                                         |
|            | > ***Reference***: For more information on entitlement  |
|            | > to ancillary benefits, see M21-1MR, Part IV, Subpart  |
|            | > iii, 3.G.39.d.                                        |
+------------+---------------------------------------------------------+

Continued on next page

39\. Providing Notice of Awards, Continued

+------------+---------------------------------------------------------+
| ##### b. P | > Follow the instructions below when providing notice   |
| roviding N | > of an offset and related requirements.                |
| otice of O |                                                         |
| ffset and  |                                                         |
| Related Re |                                                         |
| quirements |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If the award ...                 | Then ...                          |
+----------------------------------+-----------------------------------+
| includes an offset               | include the award and offset      |
|                                  | information in the                |
|                                  | locally-generated letter to the   |
|                                  | claimant.                         |
+----------------------------------+-----------------------------------+
| does not provide for an offset   | inform the claimant of the offset |
|                                  | requirements of the law.          |
|                                  |                                   |
|                                  | ***Note***: Include this          |
|                                  | information whether or not there  |
|                                  | is any indication that a tort     |
|                                  | claim has or will be filed.       |
+----------------------------------+-----------------------------------+
| is a zero rate award in which a  | advise the claimant to keep VA    |
| total offset is in effect until  | informed of any changes of        |
| an amount equal to the judgment  | address.                          |
| has been recouped                |                                   |
+----------------------------------+-----------------------------------+

+------------+---------------------------------------------------------+
| ##### c    | > Prepare a formal denial of a [38 U.S.C.               |
| . Preparin | > 1151](http://straylight.law.cornell.edu               |
| g a Denial | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            | > claim when required under [M21-1, Part V,             |
|            | > 10.03](ht                                             |
|            | tp://www.warms.vba.va.gov/admin21/m21_1/part5/ch10.doc) |
|            | > in accordance with [M21-1, Part V,                    |
|            | > 10.04](htt                                            |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch10.doc). |
|            | > Annotate the award print to indicate that the rating  |
|            | > activity granted or denied the claim, regardless of   |
|            | > the denial reason.                                    |
|            | >                                                       |
|            | > Use a locally-generated letter to inform the claimant |
|            | > of the                                                |
|            |                                                         |
|            | -   evidence considered, and                            |
|            |                                                         |
|            | -   reasons for the determination.                      |
|            |                                                         |
|            | > ***Important***: Do not refer to [38 U.S.C.           |
|            | > 1151](http://straylight.law.cornell.edu               |
|            | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            | > or the circumstances that warranted the rating in the |
|            | > absence of a specific claim for benefits under [38    |
|            | > U.S.C.                                                |
|            | > 1151](http://straylight.law.cornell.edu/              |
|            | uscode/html/uscode38/usc_sec_38_00001151----000-.html). |
+------------+---------------------------------------------------------+

Continued on next page

39\. Providing Notice of Awards, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > There is no entitlement to the following ancillary    |
|  Determini | > benefits if DIC was granted under [38 U.S.C.          |
| ng Entitle | > 1151](http://assembler.law.cornell.edu/               |
| ment to An | uscode/html/uscode38/usc_sec_38_00001151----000-.html): |
| cillary Be |                                                         |
| nefits {#d | -   Dependents' Educational Assistance (DEA), per       |
| .-determin |     M21-1MR, Part III, Subpart iii, 6.C (TBD) or        |
| ing-entitl |     [M21-1, Part IV, Chapter                            |
| ement-to-a |     14.10](ht                                           |
| ncillary-b | tp://www.warms.vba.va.gov/admin21/m21_1/part4/ch14.doc) |
| enefits .u |                                                         |
| nnumbered} | -   the civilian health and medical program of VA       |
|            |     (CHAMPVA) per [38 U.S.C.                            |
|            |     1781](http://straylight.law.cornell.edu             |
|            | /uscode/html/uscode38/usc_sec_38_00001781----000-.html) |
|            |     and M21-1MR, Part IX, Subpart i, 4.2                |
|            |                                                         |
|            | -   loan guaranty to a surviving spouse, per M21-1MR,   |
|            |     Part IX, Subpart i, 5.A.1                           |
|            |                                                         |
|            | -   a special allowance under [38 U.S.C.                |
|            |     1312(a)](http://straylight.law.cornell.edu/         |
|            | uscode/html/uscode38/usc_sec_38_00001312----000-.html), |
|            |     per M21-1MR, Part IX, Subpart ii, 1.A               |
|            |                                                         |
|            | -   the Restored Entitlement Program for Survivors      |
|            |     (REPS), a special allowance under *PL 97-377*,      |
|            |     Section 156, per M21-1MR, Part IX, Subpart i, 6.A,  |
|            |     and                                                 |
|            |                                                         |
|            | -   SC burial allowance per                             |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   M21-1MR, Part VII, 2.A, and                         |
|            |                                                         |
|            | -   M21-1MR, Part VII, 2.B.                             |
+------------+---------------------------------------------------------+