Dependency and Indemnity Compensation

Introduction
Eligibility Conditions
Benefits
Application Process
Financing
Administration
Procedures for Appeal

 

 

Dependency and Indemnity Compensation (DIC) payments are made to certain survivors of service members or veterans who died from specified conditions while on active duty. These payments may be made to the surviving spouse of the deceased veteran (hereafter spouse); surviving child(ren) of the deceased veteran (hereafter child(ren)), and surviving low-income parents of the deceased veteran (hereafter parents).

Income:
Not a condition for spouses or children.

There is an income test for parents who must report all sources of income to VA, e.g., gross wages, retirement annuity, insurance proceeds or annuity, interest, and dividends. The spouse's income must also be included if a parent is living with a spouse. A spouse may be the other parent of the deceased veteran, or a parent may have remarried. The following are the current income limits for parents (although unusual medical expenses may be used to reduce countable income):
Sole surviving parent, or 1 of 2 parents not living with a spouse $11,560
Sole surviving parent living with a spouse or 1 of 2 parents living with a spouse 15,538

Assets:
Not a condition.

Age:
The child must be under 18, between 18 and 23 and in school, or a helpless child of a veteran whose death is related to service.

Disability:
DIC payments may be authorized for survivors of veterans who had total, service-connected disabilities at the time of their death but whose deaths were not the result of their service-connected disability. The survivor qualifies if: (1) the veteran was continuously rated totally disabled for a period of 10 or more years immediately preceding death; or (2) the veteran was so rated for a period of not less than 5 years from the date of discharge from military service; or (3) veteran was so rated for at least one year before death if the veteran was a former prisoner of war who died after 9/30/99. Payments under this provision are subject to offset by the amount received from judicial proceedings brought on account of the veteran's death.

Presence of Spouse:
Not a condition. See Other Eligibility Conditions for definition of surviving spouse, including how long he/she must have lived with the veteran.

Presence of Children:
There are benefits for dependent children and for unmarried children under the age of 18. A person may be an eligible survivor if he/she is an unmarried child of the deceased veteran, under age 18 or between the ages of 18 and 23 and attending school.

Prior Contribution:
No financial contribution. The contribution is military service and death or disability resulting from that service.

Exhaustion of benefits from other programs:
Benefits for death due to non-service-connected cause are subject to offset by the amount received from judicial proceedings brought on account of the veteran's death.

Job Search:
Not a condition.

Participation in Work Program:
Not a condition.

School Attendance:
Beneficiaries between the ages of 18 and 23 must be attending a VA-approved school.

Citizenship/ Legal Alien Status:
Not a condition.

Other Eligibility Conditions:
Discharge Status: If death occurred after service, the veteran's discharge must have been under conditions other than dishonorable.

Eligibility for Special Benefits: If surviving spouses and parents receiving DIC are patients in a nursing home or require the regular assistance of another person, they may be granted a special allowance to pay for aid and attendance of another person.
If surviving spouses receiving DIC are not so disabled as to require the regular aid and attendance of another person but who, due to disability, are permanently housebound, they may be granted an additional special allowance.

Eligibility of Surviving Spouse: A surviving spouse may be an eligible survivor if he/she was married to the veteran for at least 1 year (if a child was born of the union, there is no time requirement); the marriage was valid, and the spouse lived with the veteran continuously until his/her death or, if separated, the spouse was not at fault; and the spouse did not remarry. If the surviving spouse did remarry but started legal proceedings that led to divorce before November 1, 1990, or the deceased spouse died before that date, the surviving spouse may be eligible.

Type:
The Veterans Dependency and Indemnity Compensation (DIC) is a monthly check paid to eligible survivors of certain deceased veterans.

Level:
Effective December 1, 2004, monthly rates of DIC range from $421 for one child when no spouse is entitled; from $993 to $2,272 for a surviving spouse, with $247 additional if the surviving spouse is in need of aid and attendance, or $118 additional, if housebound. A surviving spouse is also entitled to an additional $247 monthly for each child under age 18. Monthly rates for parents of the disabled or deceased service member range from $5 to $487, depending upon income and whether the parent is single or married. An additional $263 is payable if the parent is in need of aid and attendance.

Change in Recipient Status:
Any change in the marital status of a surviving spouse can change recipient status and must be reported.

Changes in the income of the deceased service member can change recipient status and benefit levels and must be reported promptly. Parents are sent an eligibility verification report to review continued eligibility and changes of rates based on changes of income.

The VA must be notified promptly of: (a) The date of death of a parent or of his or her spouse; (b) The date of remarriage of a parent; (c) The date when parents became separated; (d) The date when parents who have separated began living together again; (e) Any increase or decrease in income.

A change in school attendance of children over 18 affects recipient status and must be reported.

Marriage of a child beneficiary terminates DIC benefits.

Changes in Benefit Levels:
Changes in Cost of Living Adjustments (COLAs), which are otherwise automatic and annual, would require an Act of Congress and the President's signature, as would changes in benefit levels other than the initiation of automatic increases.

Where and How to Apply:
A surviving spouse or a child, applies for DIC by completing VA Form 21-534, "Application for Dependency and Indemnity Compensation or Death Pension anmd Accrued Benefits by a Surviving Spouse or Child." A parent completes VA Form 21-535, "Application for Dependency and Indemnity Compensation by Parent(s)."

Two sets of documents should accompany the application:

1. Dependency Documents, including a copy of the marriage certificate of the surviving spouse and deceased service member, copies of divorce or death records from prior marriages, and copies of children's birth certificates. A parent filing for DIC should send a copy of the veteran's birth certificate. Copies are acceptable as long as they are clear and have not been altered.
2. Military Separation Papers (DD 214): Including the original or a certified copy of the veteran's DD-214 helps speed the processing of the claim. Otherwise, the VA will contact the military to verify the veteran's service.
3. Death Certificate of the veteran.

Financing:
Federal general revenues, 86% of which are derived from individual and corporate income taxes in 2003.

Administration:
The program is administered by regional offices of the VA. The regional office for the Northeast is located at:

P.O. Box 4616
Buffalo, New York 14240-4616

Procedures for Appeal:
See VEAP.