Sorry for the mess!

The site is undergoing a massive update. All the content on the site still works but things just might look a little messy and disorganized. Most of the upgrades will probably be don by the end of the month. Thank you for your understanding!

Updated Aug 03, 2023

In This Chapter

1.  Determining the Surviving Spouse’s Entitlement to Benefits for the MOD

Introduction

Change Date
August 3, 2023
XI.ii.2.1.a.  Death Occurred on or After December 1, 1962
For historical purposes, if the Veteran died on or after December 1, 1962, but before October 1, 1982, payment is made to the surviving spouse for the month of death (MOD) under 38 CFR 3.20(a).
If the Veteran was receiving, or was entitled to receive, disability compensation or pension, or Medal of Honor Pension, then the rate payable for the MOD is whichever of the following is greater:
  • the monthly rate of the specific survivors benefit awarded, or
  • the full rate that would have been payable to the Veteran.
Note:  The full rate payable to the Veteran includes
  • additional compensation for dependents
  • special monthly compensation
  • allowance for aid and attendance and housebound status
  • Medal of Honor Pension, and
  • any apportioned shares.

XI.ii.2.1.b.  Death Occurred on or After October 1, 1982
For historical purposes, if the Veteran died on or after October 1, 1982, but before January 1, 1997, payment is made to the surviving spouse for the MOD under 38 CFR 3.20(b).
Example:  A surviving spouse’s entitlement to survivors benefits has been established.  The claim for benefits was received within one year of the Veteran’s death.  The surviving spouse’s rate of payment is less than the Veteran’s rate for the MOD.
Result:  The surviving spouse is eligible for the Veteran’s rate for the MOD under 38 CFR 3.20(b).  Payment for the MOD is made on the original award.
Use the table below to determine the surviving spouse’s benefit rate for the MOD.
If the Veteran …
Then the surviving spouse is …
died on or after October 1, 1982
entitled to payment for the MOD only if the Veteran’s rate for the MOD is greater than the monthly rate of Survivors Pension or DIC to which the surviving spouse is entitled.
Note:  If payments of Survivors Pension or DIC are greater than the Veteran’s MOD, commence survivors benefits the first day of the month following death.
  • died on or after October 1, 1982
  • was receiving military retired pay, and
  • would have been awarded the available difference for the MOD pending a total waiver of retired pay
not entitled to payment for the MOD, if the Veteran’s net Department of Veterans Affairs (VA) benefit would have been less that the rate payable to the surviving spouse in his/her own right, even though the Veteran’s gross entitlement to VA benefits might have exceeded the surviving spouse’s rate.
Note:  For historical purposes for Veterans who died on or after October 1, 1982, but before January 1, 1997, if, after receiving payment under 38 CFR 3.20(c), the surviving spouse becomes entitled to death benefits from the date of the Veteran’s death at a rate higher than the amount paid under 38 CFR 3.20(c)
  • withhold the amount paid under 38 CFR 3.20(c) from the date of entitlement under type 1 withholding, and
  • suppress the system-generated award letter, if applicable, and annotate the award,“[Amount] withheld to recover payment made under 38 CFR 3.20(c).”

XI.ii.2.1.c.  Death Occurred on or After January 1, 1997
If the Veteran died on or after January 1, 1997, entitlement to payment for the Veteran’s MOD will be paid to the surviving spouse regardless of the Survivors Pension or DIC rate under 38 CFR 3.20(c).
Notes:
  • A claim for MOD is not required and payment can be made as long as evidence establishes the claimant’s relationship to the Veteran.
  • In order to establish dependency for MOD entitlement, VA needs the surviving spouse’s name, date of birth, Social Security number, and address.

XI.ii.2.1.d.  Determining Surviving Spouse’s Entitlement Rate
For instructions on how to initiate the appropriate payment to the surviving spouse, see M21-1, Part XI, Subpart i, 1.B.
Note:  Per change in Public Law 112-154, if the Veteran’s rate for the MOD is later adjusted based on accrued benefits, prepare an amended award to pay the difference to the surviving spouse.
Use the table below to determine the appropriate end product (EP) controls to ensure the correct MOD payment amount is reflected within the corporate record.
If the payment is concerning …
Then the appropriate EP and claim label is …
And use payee …
the increased MOD payment
EP 290 PMC MOD Check Request
10.
any accrued benefits outside of the MOD
  • EP 165 PMC-Accrued, or
  • the appropriate EP in that series
00.
References:  For more information on
XI.ii.2.1.e.  Determining Award When Apportionment Is Required
If the surviving spouse is entitled to the Veteran’s disability rate for the MOD, and the award is to be apportioned, then the
  • child’s apportioned share for the MOD is the same apportioned rate payable to the child for the month after the MOD, based on the recurring survivors benefit rate, and
  • the surviving spouse’s apportioned share for the MOD is the difference between the Veteran’s disability rate and the child’s apportioned share.

XI.ii.2.1.f.  What Constitutes a MOD Claim
Consider any communication from the surviving spouse requesting the Veteran’s benefit for the MOD as a claim for payment for the MOD under 38 U.S.C. 5101.
Notes:
Exception:  A claim for payment of MOD may not be required when guidance in the M21-1, Part XI, Subpart ii, 2.1.c is applicable.

XI.ii.2.1.g.  Verifying the Identity of the Claimant
The caller must provide oral verification satisfactory to the call agent or claims processor that the caller is the surviving spouse.
Undertake appropriate development if there is any question as to the validity of the claimant’s status as the surviving spouse.  This development can include
  • any legal documents that would establish the relationship, such as
    • marriage certificates, or
    • divorce decrees for prior marriages, or
  • requests to legal entities for such legal documents that are known to exist.

XI.ii.2.1.h.  Providing Notification to the Surviving Spouse on How to Return the Veteran’s Payments
When issuing the MOD payment, inform the surviving spouse that all payments issued in the Veteran’s name after the date of death must be returned.  Use the following language:
If you still have any uncashed U.S. Treasury checks made payable to the Veteran, they should be returned to Department of Treasury at the following address:
U.S. Department of Treasury
Fiscal Service
P.O. Box 51316
Philadelphia, PA 19115-6316
Please be aware, only uncashed U.S. Treasury Checks should be returned to the address above.  Any personal checks or money orders sent to this address will result in lost or missing checks, or a delay in applying funds to the Veteran’s account.
If the Veteran received payments by Direct Deposit to a checking or savings account after the date of death, you may request the Veteran’s financial institution return the funds to VA using an R15 return code.
If you wish to return funds directly to VA using a personal check or
money order, send them to VA’s Debt Management Center at the following address:
U.S. Department of Veterans Affairs
Debt Management Center
P.O. Box 11930
St. Paul, MN 55111
Please include the Veteran’s name and VA Claim Number found at the top of this letter with the personal check or money order for identification purposes.
If payments issued after the date of death are not returned, you will receive notification from VA’s Debt Management Center of the amount you owe VA.

XI.ii.2.1.i.  Examples of Payment Under 38 CFR 3.20(c)
Example 1:  A surviving spouse’s entitlement to survivors benefits has been established.  The claim for benefits was received more than one year after the Veteran’s death.
Result:  The surviving spouse is eligible for a benefit for the MOD in an amount equal to the Veteran’s rate of payment under 38 CFR 3.20(c).
Example 2:  The surviving spouse’s entitlement to survivors benefits has been denied.
Result:  The surviving spouse is eligible for the Veteran’s benefit for the MOD under 38 CFR 3.20(c)(1).