TN 124 (10-17)

Citations: Social Security Act, as amended — Section 1612(a)(2)(B); Regulations 20 CFR 416.1121(a) and 416.1123(e)

A. Introduction for augmented VA benefits

The Department of Veterans Affairs (VA) often considers the existence of dependents when determining a veteran's or a veteran's surviving spouse's eligibility for pension, compensation, and educational benefits. If dependents are involved, the amount of the benefit payable to the veteran or the veteran’s surviving spouse may be larger.

For policies and procedures that apply to VA dependents in the Ninth Federal Judicial Circuit in the Western United States for the period July 1, 1990 through November 16, 1994, see SI 00830.316.

B. VA definitions

The existence of dependents is a factor in determining entitlement to Veterans Affairs (VA) benefits. The VA pays additional benefits if they determine that a familial relationship between a veteran to a dependent, i.e., spouse or child(ren) exists and that spouse or child(ren) is financially dependent on the veteran.

1. Absent dependent

If a veteran is living, an absent dependent can be a dependent spouse, child(ren), or parent (for disability compensation payments only) who does not reside with the veteran.

If a veteran is deceased, an absent dependent for a surviving spouse is the surviving spouse’s dependent child(ren) who does not reside with the surviving spouse.

Under the first-of-the-month (FOM) rule, we determine an absent dependent’s residence as of the first moment of the month. For information on the first-of-the-month rules, see SI 00835.500.

NOTE: The Department of Veterans Affairs (VA) recognizes an absent dependent spouse because a marital relationship exists between the veteran and the absent dependent spouse. If the veteran and his or her spouse are divorced, the VA no longer recognizes the divorced spouse of the veteran and VA apportionment or augmentation payments to the divorced spouse are not possible.

2. Apportionment

Apportionment is the VA’s direct payment of the dependent's portion of VA benefits to a dependent spouse, child or dependent parent (for disability compensation payments only). The VA decides whether and how much to pay by apportionment on a case-by-case basis. Apportionment reduces the amount of the augmented benefit payable to the veteran or veteran's surviving spouse.

3. Augmented benefit

An augmented benefit is an increase in benefit payment to a veteran or a veteran's surviving spouse or higher VA income eligibility limit, because of a dependent. (For Supplemental Security income (SSI) purposes, the augmented benefit includes a beneficiary's portion and one or more dependents' portions.) VA normally issues an augmented VA benefit as a single payment to the veteran or the veteran's surviving spouse.

4. Beneficiary

A beneficiary is the individual entitled to the VA benefit and receives an augmented benefit (when there are dependents).

For purposes of this section:

• If a veteran is living, the veteran is the beneficiary;

• If a veteran is deceased, the veteran’s surviving spouse is the beneficiary;

• If a veteran is deceased, and the veteran’s surviving child is independent of the veteran’s surviving spouse, the surviving child is the beneficiary;

• If a veteran is deceased, and the veteran’s surviving parent receives Parents’ Dependency Indemnity Compensation (DIC), the surviving parent is the beneficiary; and

• If a spouse, child, or parent (for disability compensation payments only) receives a benefit directly from the VA through apportionment, the apportioned spouse, child, or parent is the beneficiary.

NOTE: The VA does not augment the benefit payments for:

• Surviving child improved death pension;

• Surviving child DIC; or

• Parents’ DIC benefits.

5. Beneficiary’s portion

The beneficiary’s portion is the part of an augmented benefit that is attributable to the veteran or to the veteran’s surviving spouse.

NOTE: For surviving child improved death pension, surviving child Dependency Indemnity Compensation (DIC), and parents’ DIC benefits, the entire payment is for the surviving child or surviving parent.

A spouse receiving benefits directly from the Department of Veterans Affairs (VA) through apportionment may receive the entire payment even though the payment includes portions for children in his or her custody.

6. Child

For purposes of this section, a child is a son or daughter (biological, adoptive, or by marriage) who is:

• under age 18;

• age 18-23 (inclusive) and a student; or

• age 18 or older, and disabled before age 18.

7. Dependent

For purposes of this section, if a veteran is:

• living and receiving VA compensation payments, dependents can be the veteran’s spouse, child(ren), or dependent parent(s);

• living and receiving VA pension payments, dependents can be the veteran’s spouse and child(ren); and

• deceased, dependents for the veteran’s surviving spouse are the surviving spouse’s children.

A dependent is someone who is or was dependent on the veteran for financial support, as determined by the VA.

8. Dependent's portion

The dependent's portion is the part of an augmented benefit that is attributable to the dependent.

9. Divorced spouse

A divorced spouse is no longer married to the veteran. The VA does not consider a divorced spouse to be married to the veteran and the VA cannot make payments by apportionment or augmentation. If any of the veteran’s dependent children are in the custody of the divorced spouse, VA makes apportionment payments directly to the dependent children. When the dependent children are in the custody of the divorced spouse, normally the divorced spouse acts as the fiduciary for the dependent children. For the definition of fiduciary, see SI 00830.314B.10. in this section.

10. Fiduciary

A fiduciary is responsible to the beneficiary and oversees the financial management of the beneficiary’s VA benefits because of age or when the VA is determines the beneficiary is unable to manage his or her financial affairs.

C. Policy for augmented Department of Veterans Affairs (VA) benefits

1. Apportioned benefit

A portion of a VA benefit the VA pays directly to a dependent spouse, child, or parent, is VA income to the dependent spouse, child, or parent. It is not a support payment from the beneficiary.

For information on Apportionment, see SI 00830.314B.2.

2. Beneficiary's portion

The beneficiary's portion is VA income to the beneficiary.

3. Dependent's portion

The dependent's portion is VA income to the dependent, provided the dependent resides with the beneficiary. The dependent's portion is not a support payment from the beneficiary.

4. Absent dependent's portion (prior to 11/17/94)

Prior to November 17, 1994, if the VA did not deny an application for apportionment, an absent dependent's portion of an augmented VA benefit that the beneficiary received was VA income to the absent dependent.

If the VA denies an application for apportionment, the absent dependent's portion, less any amount the beneficiary provides to the absent dependent, is income to the beneficiary.

EXAMPLE: Prior to 11/17/94 and apportionment denied

SSI child recipient, Susan Baker, is an absent dependent. The VA denied her application for apportionment. Her father, Joseph Baker, is also an SSI recipient. He receives an augmented monthly VA pension of $450 on the first of each month. He has no other dependents. During 1993, Mr. Baker sends Susan $25 per month. The VA Regional Office (VARO) verified that Susan's portion of the VA benefit is $50. The claims representative (CR) inputs $25 as a child support payment (type “N” income) for Susan and $425 as VA pension based on need (type “E” income) for Mr. Baker for payments received prior to November 17, 1994.

5. Absent dependent's portion (effective 11/17/94)

An absent dependent's portion of an augmented VA benefit the beneficiary receives on or after November 17, 1994, is not VA income to either the dependent or the beneficiary. This is true even if the beneficiary continues to receive the absent dependent's portion of the VA payment.

For the policy on payments the beneficiary made to an absent dependent, see SI 00830.314C.6.

The absent dependent may be required to file for apportionment of the augmented VA benefit per SI 00510.005A.2.

6. Other payments to absent dependents (effective 11/17/94)

A payment from a beneficiary to an absent dependent on or after November 17, 1994 is not VA income to the absent dependent. It is unearned income in the form of a gift, a support payment, in-kind support and maintenance, or other income.

EXAMPLE: Effective 11/17/94 an augmented Department of Veterans Affairs (VA) benefit without apportionment

Robert Jones, age 17, and his father Raymond Jones are both SSI recipients who do not reside together. Mr. Jones receives a VA pension for $450 per month. The payment includes the beneficiary’s portion of $400 for Mr. Jones and the dependent’s portion of $50 for Robert (Mr. Jones’ only dependent). Because Robert is an absent dependent, the $50 Mr. Jones receives on Robert’s behalf is not income to himself or to Robert. However, Mr. Jones sends Robert a money order for $25 per month. The CR inputs $25 as child support (type “N” income) for Robert. The VARO verified that Mr. Jones' portion of the VA benefit is $400. The CR inputs $400 as VA pension based on need (type “E” income) for Mr. Jones.

7. Dependent child (parents are divorced and dependent child lives with the veteran)

The veteran is the beneficiary and the VA augments his or her VA payment for the dependent child.

8. Dependent child (parents are divorced and dependent child lives with the veteran’s divorced spouse)

The dependent child receives direct payment by the VA through apportionment and is the beneficiary. Since the child is in the custody of the veteran’s divorced spouse, normally, the divorced spouse acts as the fiduciary for the dependent child.

For a definition of fiduciary, see SI 00830.314B.10.

NOTE: Do not consider this dependent child an absent dependent child. The VA does not recognize the dependent child’s non-veteran parent because the dependent child’s parents are divorced.

9. Dependent parent (veteran receives disability compensation)

VA determines the dependent parent is financially dependent on the veteran. The veteran is the beneficiary and the VA augments his or her payment for the dependent parent.

10. Surviving parent (dependent parent receives parents’ DIC)

The veteran is deceased and the VA determines the surviving parent is financially dependent on the deceased veteran. The surviving parent is the beneficiary of the VA benefit. Augmented benefits are not applicable for this benefit payment.

D. Procedure for initial claims development

Use the chart in this section to determine how to develop for augmentation in initial claims.

E. Procedure for post-eligibility development

In addition to posting and updating the Supplemental Security Record (SSR) with veterans' benefits and veterans' surviving spouses' benefits, the VA/SSR interface also posts and updates the SSR with portions in post-eligibility cases for dependent:

• spouses;

• children; and

• parents.

A verification code of “2,” “3,” or “4” following the claim number of the VA income entry on the unearned income field of the SSR indicates an interface posting.

There are instances, however, when the VA/SSR interface does not post or update the portions for dependent spouses, dependent children, and dependent parents. In these cases, the field office must develop and manually post the VA benefits.

Follow the procedure in this chart to determine how to develop for augmentation in post-eligibility cases.

F. Procedure for systems coding

1. Beneficiary’s portion

Input the beneficiary's portion as VA income to the beneficiary only if the interface did not post the income. A verification code of “2,” “3,” or “4” following the claim number of the VA income entry on the SSR indicates an interface posting.

If the case has an active SSI claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page. For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: To input VA educational benefits on the SSI claim system, select EDUCATIONAL BENEFITS payment “TYPE” on the drop-down list on the VETERANS AFFAIRS PAYMENT page.

2. Dependent spouse’s portion

If the interface did not post the income, input the dependent's portion (but not an absent dependent spouse's portion) as VA income to the dependent spouse. A verification code of “2,” “3,” or “4” following the claim number of the VA income entry on the Supplemental Security Record (SSR) indicates an interface posting.

If the case has an active SSI claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page. For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: Include the special program service center office code (PCOC) code of "D" following the claim number to indicate a dependent when inputting type “C” or “E” income. For information on VA PCOC entries, see SM 02002.015. To input VA educational benefits on the SSI claim system, select EDUCATIONAL BENEFITS payment “TYPE” on the drop-down list on the VETERANS AFFAIRS PAYMENT page.

3. Dependent child’s portion

If the interface does not post the income to the Supplemental Security Record (SSR), input the dependent child's portion (but not an absent dependent child's portion) as Department of Veterans Affairs (VA) income to the dependent child. A verification code of “2,” “3,” or “4” following the claim number of the VA income entry on the SSR indicates an interface posting.

If the case has an active Supplemental Security Income (SSI) claims system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page.

For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or VA Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: When you input type “C” or “E” income, include the special program service center office code (PCOC) code of "D" following the claim number. For information on VA program service center office code (PCOC) entries, see SM 02002.015.

To input VA educational benefits on the SSI claim system from the VETERANS AFFAIRS PAYMENT page drop-down list, select EDUCATIONAL BENEFITS payment “TYPE.”

4. Absent dependent spouse’s portion

a. Apportionment involved

If the interface does not post income, input the absent dependent spouse's portion as VA income to the absent dependent spouse. A verification code of “2,” “3,” or “4” following the claim number of the VA income entry on the SSR indicates an interface posting.

If the case has an activeSSI claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page.

For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input Veterans Affairs (VA) Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: To input VA educational benefits on the SSI claim system from the VETERANS AFFAIRS PAYMENT page drop-down list, select EDUCATIONAL BENEFITS payment “TYPE.”

b. Apportionment not involved

Do not input the absent dependent spouse's portion as VA income. If the absent dependent spouse’s portion has already posted to the SSR, terminate the income retroactively to payments received on or after of November 17, 1994.

When a dependent spouse becomes an absent dependent spouse, terminate the spouse's portion of the Department of Veterans Affairs (VA) income effective with the month:

• The dependent spouse no longer resides with the beneficiary. (For first-of-the-month (FOM) Residence and in-kind support and maintenance (ISM) Determination information, see SI 00835.500B.2.

  For rules of administrative finality information, see SI 04070.000; and

• The dependent spouse no longer receives VA apportionment benefits.

Remove the posted VA income by following procedure on how to post the UM frequency code of “N” and UM income amount of zero in SM 01305.235 and SM 01305.296.

If the case has an active SSI claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page.

For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent see SM 01305.296 or SM 01005.191.

NOTE: Although income to the absent dependent spouse from a beneficiary is not VA income, develop for other forms of unearned income. For information on Augmented VA Benefits, see SI 00830.314C.6.

5. Absent dependent child’s portion

a. Apportionment involved

Input the absent dependent's portion as VA income to the dependent only if the interface did not already post the income. A verification code of “2,” “3,” or “4” following the claim number of the VA income entry on the SSR indicates an interface posting.

If the case has an active SSI claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page.

For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: Input VA educational benefits on the SSI claim system. On the VETERANS AFFAIRS PAYMENT page drop-down list, select EDUCATIONAL BENEFITS payment “TYPE.”

b. Apportionment not involved

Do not input the absent dependent's portion as income. If it is already posted, terminate the income retroactive to payments received on or after November 17, 1994 (subject to the rules of administrative finality) per the policy in SI 00830.314C.5.

In situations when a dependent child becomes an absent dependent child, terminate the child's portion of the Department of Veterans Affairs (VA) income effective with the month:

• The dependent child no longer resides with the beneficiary (For first-of-the-month (FOM) Residence and ISM Determinations information, see SI 00835.500B.2). For rules of administrative finality information, see SI 04070.000); and

• The dependent child receives no longer receives VA apportionment benefits.

Remove the posted VA income by following procedure regarding the use of UM frequency code of “N” and UM income amount of zero, in SM 01305.235 and SM 01305.296.

If the case has an active Supplemental Security Income (SSI) claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page.

For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: Input VA educational benefits on the SSI claim system. On the VETERANS AFFAIRS PAYMENT page, select EDUCATIONAL BENEFITS payment “TYPE.”

6. Absent dependent parent’s portion

a. Apportionment involved

Input the absent dependent parent's portion as VA income to the absent dependent parent only if interface does not post the income. A verification code of “2,” “3,”or “4” following the claim number of the VA income entry on the Supplemental Security Record (SSR) indicates an interface posting.

If the case has an active SSI claim system pending file, process the actions on the SSI claim system using the VETERANS AFFAIRS PAYMENT page.

For information on the Veterans Affairs Payment page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

b. Apportionment not involved

Do not input the absent dependent parent's portion as income. If it is already posted, terminate the income retroactive to payments received on or after November 17, 1994 (subject to the rules of administrative finality) per the policy in SI 00830.314C.5. in this section.

When a dependent parent becomes an absent dependent parent, terminate the parent's portion of the VA income effective with the month:

• the dependent parent no longer resides with the beneficiary (For first-of-the-month (FOM) Residence and ISM Determinations information, see SI 00835.500B.2. For rules of administrative finality information, see SI 04070.000); and

• the dependent parent no longer receives VA apportionment benefits.

Remove the posted VA income by following procedure regarding the use of UM frequency code of “N” and UM income amount of zero in SM 01305.235 and SM 01305.296.

If the case has an active Supplemental Security Income (SSI) claim system pending file, use the VETERANS AFFAIRS PAYMENT page to process the actions on the SSI claim system.

For information on the Veterans Affairs page, see MS INTRANETSSI 014.052.

For the specific rules to input VA Compensation or Pension not based on need (type “C” unearned income) and based on need (type “E” unearned income) for a dependent, see SM 01305.296 or SM 01005.191.

NOTE: A parent can only be a dependent parent in disability compensation payments.

G. References

• SI 04070.000 Administrative Finality – SSI Table of Contents

• SI 00830.316 Augmented VA Benefits in the Ninth Circuit

• SM 01301.230 Diary Information on SSI Queries

• SI 02310.020 Federal Benefit Interfaces – VA, RRB, OPM

• SI 00835.500 First-of-the-Month (FOM) Residence and ISM Determinations

• SI 00830.320 Form SSA-L1103-U3 (SSI Request for Information) to Obtain Information from the United States Department of Veterans Affairs (VA)

• SM 01305.235 Unearned Income Frequency Code of N

• SI 00830.520 Gifts

• SI 00835.000 Living Arrangements and In-Kind Support and Maintenance Table of Contents

• SI 00510.005 Types of Other Program Benefits

• SM 01005.191 Specific Rules for Types C and E Unearned Income

• SM 01305.296 Specific Rules for Types C and E Unearned Income

• SI 00830.420 Child Support Payments

• SM 01601.760 Unearned Income Data - UMIH

• SI 00510.020 Use of the SSA-L8050-U3 to Refer Individuals for Program Benefits Other than Title II

• SI 00830.306 Department of Veterans Affairs (VA) Educational Benefits

• SI 00810.030 When Income Is Counted

• SI 00830.302 VA Pension Payments

• SM 02002.015 VA PCOC Entries

• SM 02002.000 SSI Interfaces Table of Contents

• MS INTRANETSSI 014.003 Income Selection

• MS INTRANETSSI 014.052 Veterans Affairs Payment