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SI 00830.304: Veterans Affairs (VA) Compensation Payments

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  • Effective Dates: 01/22/2014 - Present
  • Effective Dates: 10/31/2017 - Present
  • TN 120 (01-14)
  • TN 124 (10-17)
  • SI 00830.304 VA Compensation Payments
  • SI 00830.304 Veterans Affairs (VA) Compensation Payments
  • Citations:
  • Social Security Act, as amended — Sections 1612(a)(2)(B) and 1612(b)(2)(A);
  • Regulations 20 CFR — 416.1103(a)(7) and 416.1103(b)(1),416.1121(a), 416.1123(e), and 416.1124(c)(12)
  • Citations: Social Security Act, as amended — Sections 1612(a)(2)(B) and 1612(b)(2)(A); Regulations 20 CFR — 416.1103(a)(7) and 416.1103(b)(1),416.1121(a), 416.1123(e), and 416.1124(c)(12)
  • A. Introduction for VA compensation payments
  • 1. VA compensation payments
  • The Department of Veteran Affairs (VA) pays compensation payments based on a service-connected disability or death. VA compensation payments may or may not be a needs-based benefit.
  • The Department of Veteran Affairs (VA) pays compensation payments based on a service-connected disability or death. VA compensation payments may or may not be based on need.
  • 1. Disability compensation
  • a. Disability compensation
  • Veterans are eligible for disability compensation when they have disabilities that result from diseases or injuries incurred or aggravated during active military service. VA graduates the disability compensation benefit amount according to the degree of a veteran’s disability on a scale from 10 to 100 percent (in increments of 10).
  • Veterans are eligible for disability compensation when they have disabilities that result from diseases or injuries incurred or aggravated during active military service. The disability compensation benefit amount is graduated according to the degree of a veteran’s disability on a scale from 10 to 100 percent (in increments of 10).
  • NOTE: VA disability compensation payments are not a needs-based benefit.
  • NOTE: VA disability compensation payments are not based on need.
  • 2. Surviving spouse Dependency Indemnity Compensation (DIC)
  • b. Surviving spouse Dependency Indemnity Compensation (DIC)
  • The VA provides monthly surviving spouse DIC payments to surviving spouses and surviving children of veterans who died during military service or after discharge from military service because of a service-connected disability.
  • The VA provides monthly surviving spouse DIC payments to surviving spouses and surviving children of veterans who died during military service or after discharge from military service as a result of a service-connected disability.
  • NOTE: Surviving spouse DIC payments are not a needs-based benefit.
  • NOTE: Surviving spouse DIC payments are not based on need.
  • 3. Surviving child DIC
  • c. Surviving child DIC
  • The VA provides monthly surviving child DIC payments to independent surviving children of veterans who died during military service or after discharge from military service as a result of a service-connected disability. Independent means a surviving child is independent of the surviving spouse of a deceased veteran (e.g., the surviving child is no longer in the custody of the surviving parent or the surviving parent is deceased).
  • The VA provides monthly surviving child DIC payments to independent surviving children of veterans who died during military service or after discharge from military service because of a service-connected disability. Independent means a surviving child is independent of the surviving spouse of a deceased veteran (e.g., the surviving child is no longer in the custody of the surviving parent or the surviving parent is deceased).
  • An independent surviving child receives VA benefits on his or her own award. To be eligible for surviving child DIC, a child must be:
  • * under age 18, or
  • * under age 23 if attending a VA-approved school, or
  • * determined permanently incapable of self-support because of a disability before age 18.
  • NOTE: Surviving child DIC payments are not based on need.
  • * under age 18;
  • * under age 23 if attending a VA-approved school; or
  • * determined permanently incapable of self-support by the VA because of a disability before age 18.
  • d. Parents’ DIC
  • NOTE: Surviving child DIC payments are not a needs-based benefit.
  • The VA provides a needs-based monthly benefit to surviving parent(s) of a deceased veteran whose death was service-connected. A surviving parent can be single, married to the deceased veteran’s other surviving parent, or remarried to the deceased veteran’s step-parent. To be eligible, the VA must determine the surviving parent(s) financially dependent on the deceased veteran. Congress establishes the maximum annual parents’ DIC compensation rates.
  • 4. Parents’ DIC
  • NOTE: Parents’ DIC payments are based on need.
  • The VA provides a needs-based monthly benefit to surviving parent(s) of a deceased veteran whose death was service-connected. A surviving parent can be single, married to the deceased veteran’s other surviving parent, or remarried to the deceased veteran’s step-parent. To be eligible, the Department of Veterans Affairs (VA) must determine the surviving parent(s) is financially dependent on the deceased veteran. Congress establishes the maximum annual parents’ Dependency Indemnity Compensation (DIC) compensation rates.
  • 2. Payments for dependents
  • NOTE: Parents’ DIC payments are a needs-based benefit.
  • a. Disability compensation
  • B. Dependent disability compensation payments
  • The VA will take dependents' needs into account when determining a compensation payment. However, the VA will not normally make a compensation payment directly to a dependent during the lifetime of the veteran. Instead, the VA increases the amount of the veteran’s basic compensation award if the veteran has dependents. For disability compensation, the veteran is the beneficiary.
  • The VA considers dependents’ needs when determining a compensation payment. The VA does not normally make a compensation payment directly to a dependent during the lifetime of the veteran. Instead, the VA increases the amount of the veteran’s basic compensation award if the veteran has dependents. For disability compensation, the veteran is the beneficiary.
  • Veterans with disability ratings of at least 30 percent are eligible for increased allowances for dependents. Dependents include parents, spouses, or children who are:
  • * under age 18, or
  • * under age 23 if attending a VA-approved school, or
  • * determined permanently incapable of self-support because of a disability before age 18).
  • * under age 18;
  • * under age 23 if attending a VA-approved school; or
  • * determined permanently incapable of self-support by the VA because of a disability before age 18.
  • The increased amount depends on the veteran’s disability rating and number of dependents.
  • When the VA increases a disability compensation payment for dependents, it is an augmented VA payment. A VA disability compensation payment made directly to the dependent of a living veteran is an apportioned payment. For a discussion of augmented and apportioned payments, see SI 00830.314.
  • When the VA increases a disability compensation payment for dependents, it is an augmented VA payment.
  • An apportioned payment is a VA disability compensation payment made directly to the dependent of a living veteran.
  • For a discussion of augmented and apportioned payments, see SI 00830.314B.2.
  • 1. Surviving spouse DIC
  • b. Surviving spouse DIC
  • When a veteran is deceased, the VA considers surviving dependents’ needs to determine a survivor’s compensation payment. For surviving spouse DIC, the VA considers the surviving spouse as the beneficiary and they consider eligible children as dependent children. Normally, the VA does not make a compensation payment directly to a dependent child during the lifetime of the surviving spouse. Instead, the VA increases the amount of the surviving spouse’s basic compensation award if the surviving spouse has dependent children.
  • When a veteran is deceased, the VA will take surviving dependents’ needs into account when determining a survivor’s compensation payment. For surviving spouse DIC, the VA considers the surviving spouse as the beneficiary and they consider any eligible children as dependent children. Normally, the VA will not make a compensation payment directly to a dependent child during the lifetime of the surviving spouse. Instead, the VA increases the amount of the surviving spouse’s basic compensation award if the surviving spouse has dependent children.
  • When the VA increases a surviving spouse DIC payment for dependent children, it is an augmented VA payment. A surviving spouse DIC payment made directly to a dependent child of a surviving spouse is an apportioned payment.
  • When the VA increases a surviving spouse DIC payment for dependent children, it is an augmented VA payment. A surviving spouse DIC payment made directly to a dependent child of a surviving spouse is an apportioned payment. For a discussion of augmented and apportioned payments, see SI 00830.314.
  • For information on augmented and apportioned payments, see SI 00830.314.
  • NOTE: The augmented or apportioned portion (if applicable) for each dependent child is removed from the surviving spouse’s award when the child attains age 18.
  • NOTE: The Department of Veterans Affairs (VA) removes the augmented or apportioned portion (if applicable) for each dependent child from the surviving spouse’s award when the child attains age 18.
  • c. Surviving child DIC
  • 2. Surviving child Dependency Indemnity Compensation (DIC)
  • When a veteran is deceased, the VA may take surviving dependents’ needs into account in determining a survivor’s compensation payment. For surviving child DIC, the surviving child is considered the beneficiary and the VA does not pay any increased benefits for any dependents of the surviving child.
  • When a veteran is deceased, the VA may consider surviving dependents’ needs when determining a survivor’s compensation payment. For surviving child DIC, the VA considers the surviving child as the beneficiary and the VA does not increase benefits for dependents of the surviving child.
  • d. Parents’ DIC
  • 3. Parents’ DIC
  • When a veteran is deceased, the VA will take surviving dependents’ needs into account when determining a survivor’s compensation payment. For parents’ DIC, the VA considers the surviving parent(s) as the beneficiary and the VA does not pay any increased benefits for any dependents of the surviving parent(s).
  • When a veteran is deceased, the VA considers surviving dependents’ needs when determining a survivor’s compensation payment. For parents’ DIC, the VA considers the surviving parent(s) as the beneficiary and the VA does not increase benefits for dependents of the surviving parent(s).
  • 3. Payment frequency of VA compensation payments
  • 4. Payment frequency of VA compensation payments
  • Compensation payments not based on need are paid monthly. Parents’ DIC payments (based on need), are paid monthly; however, when the monthly payment due is less than $19, the VA will pay quarterly, biannually, or annually.
  • The VA makes monthly compensation payments that are not needs-based. The VA pays Parents’ DIC (needs-based) payments monthly; however, when the monthly payment due is less than $19, the VA pays quarterly, biannually, or annually.
  • 4. Unreimbursed medical expenses
  • 5. Unreimbursed medical expenses
  • For needs-based compensation payments (Parents’ DIC), VA may deduct unreimbursed medical expenses from any countable income. For a discussion of unreimbursed medical expenses, see SI 00830.312.
  • For needs-based compensation payments (Parents’ DIC), VA may deduct unreimbursed medical expenses from any countable income. For information on unreimbursed medical expenses, see SI 00830.312.
  • B. Policy for VA compensation payments
  • C. Policy for VA compensation payments
  • 1. Special monthly compensation
  • Veterans with certain specific, very severe disabilities can receive a higher monthly compensation rate that is above the 100 percent disability rating. The VA calls this payment special monthly compensation (SMC) and it is paid for the veteran’s need of daily aid and attendance assistance or regular health services.
  • Veterans with certain specific, very severe disabilities can receive a higher special monthly compensation (SMC) rate that is above the 100 percent disability rating. The VA pays the SMC to cover the veteran’s need of daily aid and attendance assistance, or regular health services.
  • Special monthly compensation is not income for SSI purposes. For rules on medical and social services payments, see SI 00815.050.
  • Special monthly compensation is not income for Supplemental Security Income (SSI) purposes.
  • For rules on medical and social services payments, see SI 00815.050.
  • 2. Parents’ DIC
  • Compensation payments to the surviving parent(s) of a veteran are federally funded income based on need. These payments are unearned income and the $20 general income exclusion does not apply; see SI 00810.420.
  • EXCEPTION: Compensation payments resulting from unreimbursed medical expenses, aid and attendance allowances, and housebound allowances are not income. For a discussion of unreimbursed medical expenses and aid and attendance or housebound allowances, see SI 00830.308 and SI 00830.312. All or part of a VA compensation payment may be subject to this rule.
  • EXCEPTION: Compensation payments resulting from unreimbursed medical expenses, aid and attendance allowances, and housebound allowances are not income.
  • For information on unreimbursed medical expenses and aid and attendance or housebound allowances, see SI 00830.308 and SI 00830.312. All or part of a Department of Veterans Affairs (VA) compensation payment may be subject to this rule.
  • 3. All other compensation
  • Compensation payments to a veteran, spouse, child, or surviving spouse are unearned income subject to the $20 general income exclusion (SI 00810.420).
  • Compensation payments to a veteran, spouse, child, or surviving spouse are unearned income subject to the $20 general income exclusion.
  • For information on per month general income exclusion, see SI 00810.420.
  • EXCEPTION: Any portion of a VA compensation payment that is a special monthly compensation, aid and attendance allowance, or housebound allowance is not income.
  • EXCEPTION: Any portion of a VA compensation payment that is a special monthly compensation, aid and attendance allowance, or housebound allowance is not income. For a discussion of aid and attendance or housebound allowance, see SI 00830.308.
  • For information on aid and attendance or housebound allowance, see SI 00830.308.
  • C. Procedure for VA compensation payments
  • D. Procedure for VA compensation payments
  • Follow the procedure below for developing and verifying compensation payments:
  • Follow the procedure in this chart to develop and verify compensation payments:
  • Step
  • Action
  • 1
  • For Parents’ DIC only, screen for unreimbursed medical expenses per SI 00830.312.
  • For Parents’ Dependency Indemnity Compensation (DIC) only, screen for unreimbursed medical expenses per SI 00830.312.
  • 2
  • Develop for augmentation if dependents are involved per SI 00830.314.
  • 3
  • Screen for an aid and attendance or housebound allowance per SI 00830.308.
  • NOTE: Check the VAA field in PRSN line on the SSR or ask the individual; see SM 01601.475.
  • NOTE: Check the VAA field in PRSN line on the Social Security Record (SSR) or ask the individual; see SM 01601.475.
  • 4
  • Are unreimbursed medical expenses, augmentation, aid and attendance or housebound allowance, or special monthly compensation at issue in the case?
  • If yes, go to Step 5.
  • If no, go to Step 6.
  • 5
  • Verify the gross amount and frequency of payment on the same SSA-L1103 used to verify the issue in Step 1, 2, or 3. STOP.
  • Verify the gross amount and payment frequency on the SSA-L1103-U3 (Supplemental Security Income Request for Information) used to verify the issue in Step 1, 2, or 3. STOP.
  • 6
  • Verify the gross amount and frequency of payment using (in order of priority), using the following:
  • Verify the gross amount and frequency of payment (in order of priority), using:
  • * A VA award letter or comparable document in the individual’s possession;
  • * A benefit check in combination with a signed statement from the individual that provides the frequency of payment and affirms that VA makes no deductions (such as insurance premiums, loan payments, and overpayment deductions); or
  • * A benefit check in combination with a signed statement from the individual who provides the frequency of payment and affirms that VA makes no deductions (such as insurance premiums, loan payments, and overpayment deductions); or
  • * An SSA-L1103-U3 from the Veterans Affairs Regional Office (VARO). For instructions on use of Form SSA-L1103-U3, see SI 00830.320.
  • NOTE: To verify certain current benefit information for veterans and surviving spouses, you may call the VA at 1-800-827-1000. Information about payment history, augmentation, educational benefits, unreimbursed medical expenses, special monthly compensation, aid and attendance or housebound allowances is not available by phone.
  • NOTE: To verify current benefit information for veterans and surviving spouses, call the VA at 1-800-827-1000. Information about payment history, augmentation, educational benefits, unreimbursed medical expenses, special monthly compensation, aid and attendance, or housebound allowances is not available by phone.
  • D. Procedure for systems coding
  • E. Procedure for systems coding
  • 1. MSSICS claims
  • 1. SSI claim system (i.e., MSSICS/SSI Claim)
  • a. Compensation payments based on need
  • Select from the MSSICS IMEN screen VA BASED ON NEED (PAID DIRECTLY OR INDIRECTLY AS A DEPENDENT) for parents’ DIC.
  • To code Veteran Affairs (VA) compensation payments on the SSI claims system, select “Yes” for Department of Veterans Affairs on the Income Selection page. The Income Selection page takes you to the VETERAN AFFAIRS PAYMENT page. On the VETERAN AFFAIRS PAYMENT page, select the appropriate VA “based on need” payment “TYPE” on the drop-down list.
  • If the VA “based on need” payment “TYPE” is not on the drop-down list, select “Other VA Payment – Based On Need.” If the VA “BASED ON NEED” payment “TYPE” is unknown, select “Unknown.”
  • Complete the fields on the VETERAN AFFAIRS PAYMENTS page:
  • * “Name of beneficiary” field- First name, middle initial, and last name of the beneficiary. If the name of the beneficiary is unknown, select the “Unknown” checkbox.
  • * “ID” field - Veteran Affairs Payment claim number in the “ID” field. If the ID is unknown, select “Unknown.”
  • * Monthly Values (of alleged amount or verified amount)
  • Date From
  • On the DEPT VETERANS AFFAIRS – BASED ON NEED (IVAE) screen, enter the name of the beneficiary in the NAME ON CHECK field and enter the date and amount of the parents’ DIC payment. For more information on the IVAE screen, see MSOM MSSICS 015.008.
  • Date To
  • Alleged Amount
  • Verified Amount
  • Court Ordered or IV-D Support Amount
  • Double Counting Overpayment Recovery Amount
  • Double Counting Applies
  • Other Deduction Amount
  • Unknown
  • Countable Amount
  • Actions
  • For more information on the Veteran Affairs Payment page, see MS INTRANETSSI 014.052.
  • b. Compensation payments not based on need
  • Select from the MSSICS IMEN screen VA PAYMENTS NOT BASED ON NEED (PAID DIRECTLY OR INDIRECTLY AS A DEPENDENT) for the following types of VA compensation payments:
  • * Disability compensation,
  • * Surviving spouse DIC, or
  • To code Veteran Affairs (VA) compensation payments on the SSI claims system, select “Yes” for “Department of Veterans Affairs” on the Income Selection page for the following types of Department of Veterans Affairs (VA) “not based on need” payment:
  • * Disability compensation;
  • * Surviving spouse Dependency Indemnity Compensation (DIC); or
  • * Surviving child DIC.
  • On the DEPT VETERANS AFFAIRS – NOT BASED ON NEED screen (IVAC), select #1 for TYPE RECEIVED. Enter the name of the beneficiary in the NAME ON CHECK field and enter the date and amount of the VA compensation payment.
  • On the VETERAN AFFAIRS PAYMENT page, select the appropriate VA “not based on need” payment “TYPE” from the drop-down list.
  • If the VA “not based on need” payment “TYPE” is not on the drop-down list, select “Other VA Payment – Not Based On Need.” If the VA “not based on need” payment “TYPE” is unknown, select “Unknown.”
  • 2. Non-MSSICS claims
  • Enter the fields on the Veteran Affairs Payment page:
  • * “Name of beneficiary” field - First name, middle initial, and last name of the beneficiary. If the name of the beneficiary is unknown, select “Unknown.”
  • * “ID” field - Veteran Affairs Payment claim number. If the ID is unknown, select the “Unknown.” checkbox.
  • * Monthly Values (of alleged amount or verified amount)
  • * Date From
  • * Date To
  • * Alleged Amount
  • * Verified Amount
  • * Court Ordered or IV-D Support Amount
  • * Double Counting Overpayment Recovery Amount
  • * Double Counting Applies
  • * Other Deduction Amount
  • * Unknown
  • * Countable Amount
  • * Actions
  • For more information on the Veteran Affairs Payment page, see MS INTRANETSSI 014.052.
  • 2. Non-SSI claim system
  • a. Compensation payments based on need
  • On the SSA-1719B (Supplemental Security Income Post-Entitlement Input) or SSA-450-SI (SSI Data Input and Determination), enter “E” for the unearned income type, amount, and the appropriate unearned income identification for parents’ DIC.
  • On the SSA-1719-B (Supplemental Security Income Post-Entitlement Input) or SSA-450-SI (SSI Data Input and Determination), enter “E” for the unearned income type, amount, and the appropriate unearned income identification for parents’ DIC.
  • b. Compensation payments not based on need
  • On the SSA-1719B or SSA-450-SI, enter “C” for the unearned income type, amount, and the appropriate unearned income identification for the following types of payments:
  • * Disability compensation,
  • * Surviving spouse DIC, or
  • On the SSA-1719-B (Supplemental Security Income Post-Entitlement Input) or SSA-450-SI (SSI Data Input and Determination), enter “C” for the unearned income type, amount, and the appropriate unearned income identification for payment types:
  • * Disability compensation;
  • * Surviving spouse Dependency Indemnity Compensation (DIC); or
  • * Surviving child DIC.
  • F. References
  • * SI 00810.030 When Income Is Counted
  • * MS INTRANETSSI 014.003 Income Selection
  • * MS INTRANET 014.052 Veteran Affairs Payment
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