In This Section

This section contains the following topics:

Introduction

This topic contains information on additional compensation for dependents, including

• initial screening of a claim for additional compensation for a dependent(s) that is pending concurrent with a rating end product (EP)
• promulgating a rating decision
  • that renders a Veteran eligible for additional compensation for dependents
  • when no claim for additional compensation for a dependent(s) is pending, and
  • when a claim for additional compensation for a dependent(s) is pending but entitlement cannot be granted
• notification requirements that apply each time the rating activity assigns an overall service-connected (SC) disability evaluation of at least 30 percent, and
• using Redesigned Automated Decision Letter (RADL) to generate a decision notice.

Change Date

VII.i.1.C.1.a.  Initial Screening of a Claim for Additional Compensation for a Dependent(s) that Is Pending Concurrent With a Rating EP

When a claim for additional compensation for a dependent(s) and a claim for service connection (SC) and/or a higher disability evaluation are concurrently pending, claims processors must

• follow the instructions in M21-1, Part VII, Subpart i, 1.A.5.b, and
• process the claim for additional compensation for the dependent(s) without waiting for completion of the rating decision if the Veteran already has an overall service-connected (SC) combined disability evaluation of at least 30 percent.

VII.i.1.C.1.b.  Promulgating a Rating Decision That Renders a Veteran Eligible for Additional Compensation for Dependents

When promulgating a rating decision that assigns an overall SC disability evaluation of at least 30 percent to a Veteran whose overall SC disability evaluation prior to the rating decision was less than 30 percent, follow the instructions in the table below.

VII.i.1.C.1.c.  Promulgating the Rating Decision When No Claim for Additional Compensation for a Dependent(s) Is Pending

When promulgating the rating decision referenced in M21-1, Part VII, Subpart i, 1.C.1.b, follow the instructions in the table below when no claim for additional compensation for a dependent(s) is pending, but the evidence of record suggests the Veteran has a dependent(s).

Important:

• Do not maintain EP control for return of the evidence/information/forms referenced in the table above.
• When telephone contact with the Veteran results in receipt of information needed to establish the dependent, follow the procedures in M21-1, Part VII, Subpart i, 1.A.4.b to determine proper EP control for the addition of the dependent(s).

Reference: For more information on documenting attempts to contact a Veteran by telephone, see M21-1, Part III, Subpart i, 2.D.1.e.

VII.i.1.C.1.d.  Promulgating the Rating Decision When a Claim for Additional Compensation for a Dependent(s) Is Pending But Entitlement Cannot Be Granted

When promulgating a rating that assigns an overall SC disability evaluation of at least 30 percent to a Veteran whose overall SC disability evaluation prior to the rating decision was less than 30 percent, follow the instructions in the table below when

• a claim for additional compensation for a dependent(s) is concurrently pending
• the criteria for granting entitlement to additional compensation for one or more of the claimed dependents have not been met, and
• either of the following is true:
  • the claim is not controlled with an EP 130 (because, for example, an EP 010 or 110 is concurrently pending), or
  • one of the ROs/RACCs identified in M21-1, Part II, Subpart ii, 3, is promulgating the rating decision in connection with a special mission or under a special circumstance.

Important:  If a Veteran indicates an inability to provide documentary evidence of a life event (birth, marriage, death, divorce), VA has an obligation to assist the claimant in obtaining such evidence by sending a request to the appropriate records custodian.

References:  For more information on

• requesting documentary evidence of a life event from custodians of public records, see M21-1, Part III, Subpart i, 2.A.1.e, and
• documenting attempts to contact a Veteran by telephone, see M21-1, Part III, Subpart i, 2 D.1.e.

VII.i.1.C.1.e.  Notification Requirements That Apply Each Time the Rating Activity Assigns an Overall SC Disability Evaluation of at Least 30 Percent

Each time the rating activity assigns to a Veteran an overall SC disability evaluation of at least 30 percent,

• include in the corresponding decision notice the appropriate paragraphs that inform the Veteran of the dependent(s) for whom compensation is being paid, and
• notify the Veteran (in the decision notice) of potential entitlement to additional compensation for dependents (and provide the appropriate hyperlink to the form(s) the Veteran must submit to apply) unless
  • the decision notice already includes a request for evidence/information required to grant entitlement to additional compensation for a dependent(s), or
  • entitlement to additional compensation for a dependent(s) was granted or denied concurrent with promulgation of the rating decision that triggered the decision notice.

Important:  The policy described in this block applies even if the rating activity previously determined the Veteran was at least 30-percent disabled and is now

• increasing the disability evaluation of an existing disability or granting SC for a new disability (regardless of whether the combined disability evaluation changes)
• granting entitlement to a total disability evaluation based on individual unemployability (IU)
• granting entitlement to special monthly compensation, and/or
• establishing an earlier effective date for an overall SC disability evaluation of 30 percent or greater.

Reference:  For more information on using RADL to provide Veterans with the notification described in this block, see M21-1, Part VII, Subpart i, 1.C.1.f.

VII.i.1.C.1.f.  Using RADL to Generate a Decision Notice

When RADL is used to prepare notification of the types of rating decisions discussed in M21-1, Part VII, Subpart i, 1.C.1.e, the application automatically inserts standardized text that notifies the Veteran of

• potential eligibility for additional compensation for dependents
• the website where claimants may access forms for claiming the addition compensation, and
• the opportunity to submit a claim for the additional compensation through VA claims-submission service websites.

Exception:  RADL does not insert the text referenced in the preceding paragraph into a decision notice if

• the decision notice already includes a request for evidence, information, and/or a form required to grant entitlement to additional compensation for a dependent(s), or
• VA granted or denied entitlement to additional compensation for a dependent(s) concurrent with promulgation of the rating decision that triggered the decision notice.

Follow the instructions in the table below when

• entitlement to additional benefits for a dependent is granted or denied, and/or
• additional evidence, information, and/or a form(s) is required to grant entitlement to additional benefits for a dependent.

Reference:  For more information on preparing decision notices using RADL, see

• M21-1, Part VI, Subpart i, 1.B.4, and
• the VBMS Awards User Guide.

Introduction

This topic contains instructions for determining the proper effective date of entitlement to additional compensation for dependents, including

• granting additional compensation for dependents effective the date of a life event, the date of claim, or the date dependency arose
• example of the granting of entitlement to additional compensation for a dependent effective the date of a life event
• rating decisions that render a Veteran eligible for additional compensation for dependents
• handling responses to the rating decision notices referenced in M21-1, Part VII, Subpart i, 1.C.1 that VA receives within one year
• effect of Sharp v. Shinseki on the assignment of effective dates
• handling responses to the rating decision notices referenced in M21-1, Part VII, Subpart i, 1.C.1that VA receives after the one-year time limit
• examples of the granting of entitlement to additional compensation for a dependent following notification of potential entitlement
• effective date for granting entitlement to additional compensation based on a same-sex marriage, and
• examples of selecting an appropriate effective date when granting entitlement to additional compensation for a same-sex spouse.

Change Date

VII.i.1.C.2.a.  Granting Additional Compensation for Dependents Effective the Date of a Life Event, the Date of Claim, or the Date Dependency Arose

If a Veteran  with an overall SC disability evaluation of at least 30 percent submits a claim for additional compensation for a dependent solely because dependency arose or the Veteran experienced a life event, such as a marriage or birth (not in response to the rating decision notice referenced in M21-1, Part VII, Subpart i, 1.C.1), grant entitlement (if entitlement exists) effective the date shown in the table below.

Exception:  Disregard the text in the center column of the table below that reads “the Veteran responded within one year to VA’s request for any additional evidence/information it requires to establish entitlement” if

• the Veteran filed the claim on a September 2018 or later version of VA Form 21-686c, and
• the form specifically asks the Veteran to provide the referenced evidence/information.

Rationale:  If, when submitting a September 2018 or later version of VA Form 21-686c, a Veteran fails to provide the evidence/information the form requires, claims processors must deny the claim without undertaking any development. 

Notes: 

• If a Veteran responds to the denial referenced in the preceding paragraph by submitting VA Form 20-0995, Decision Review Request:  Supplemental Claim, along with the missing evidence/information, within one year of the date of the corresponding decision notice, the instructions in the third column of the table below apply.
• Claims processors may undertake development when processing a September 2018 or later version of VA Form 21-686c if the purpose is to
  • resolve inconsistencies or obtain clarification regarding the entries the Veteran made on the form, or
  • request evidence/information a September 2018 or later version of VA VA Form 21-686c does not specifically ask the Veteran to provide.

References:  For more information on establishing

• a biological, adopted, or stepchild as a Veteran’s child for VA purposes, see M21-1, Part VII, Subpart i, 3.B
• the dependency of a parent, see M21-1, VII, Subpart i, 4.B, and
• the effective dates discussed in this block, see
  • 38 CFR 3.401(b), and
  • 38 CFR 3.2500(h).

VII.i.1.C.2.b.  Example: Granting Entitlement to Additional Compensation for a Dependent Effective the Date of a Life Event

Scenario: 

• VA assigns a combined disability evaluation of 30 percent to a Veteran effective April 21, 2010, and notifies her of potential entitlement to additional compensation for dependents on May 1, 2010.
• On August 12, 2011, VA receives a completed VA Form 21-686c showing the Veteran gave birth to a baby girl on December 23, 2010. 

Action:  Grant entitlement to additional compensation for the child effective December 23, 2010.

VII.i.1.C.2.c.  Rating Decisions That Render a Veteran Eligible for Additional Compensation for Dependents 

When entitlement to additional compensation for a dependent(s) is granted concurrent with promulgation of a rating decision that assigns an overall SC disability evaluation of at least 30 percent to a Veteran whose overall SC disability evaluation prior to the rating decision was less than 30 percent (as described in M21-1, Part VII, Subpart i, 1.C.1.b), the effective date is the later of the following dates:

• effective date of the overall SC disability evaluation of at least 30 percent, or
• date shown in the table in M21-1, Part VII, Subpart i, 1.C.2.d.

Notes: 

• The policy expressed in the preceding paragraph is also for application when entitlement to additional compensation for a dependent(s) is granted based on a claim that was pending when the rating decision referenced in M21-1, Part VII, Subpart i, 1.C.1.b, was promulgated.
• See M21-1, Part VI, Subpart i, 1.A.2.b, for an explanation of the difference between the effective date of entitlement and the effective date of payment.

Reference:  For more information on the effective date of entitlement to additional benefits for dependents, see 38 CFR 3.401(b).

VII.i.1.C.2.d.  Handling Responses to the Rating Decision Notices Referenced in M21-1, Part VII, Subpart ii, 1.C.1 That VA Receives Within One Year

If a Veteran responds to one of the rating decision notices referenced in M21-1, Part VII, Subpart i, 1.C.1 within one year by providing the evidence, information, and/or forms VA requires to grant entitlement to additional compensation for a dependent(s), the effective date of entitlement is the later of the following dates:

• effective date of the disability evaluation the rating activity assigned in the corresponding rating decision, or
• date shown in the table below.

Exceptions: 

• Assign an effective date in accordance with the provisions of 38 CFR 3.2500(h) if
  • the decision notice referenced in the preceding paragraph included a denial of entitlement to additional compensation for a dependent(s) because evidence VA requires to grant entitlement was missing, and
  • the Veteran submits VA Form 20-0995 with the missing evidence/information.
• Grant entitlement to additional compensation for a dependent effective the date shown in the table below if the
  • Veteran referenced in M21-1, Part VII, Subpart i, 1.C.1.e, had an overall SC disability evaluation of at least 30 percent before VA made the rating decision referenced in that block
  • effective date of entitlement to the first overall disability evaluation of at least 30 percent is the same as or prior to the date shown in the table below, and
  • Veteran’s response to the decision notice referenced in M21-1, Part VII, Subpart i, 1.C.1.e, includes a claim for additional compensation for a dependent that VA received within one year of the date referenced in the table below.

Notes:

• The provisions of 38 CFR 3.401(b) govern the effective date of a Veteran’s entitlement to additional compensation for dependents.
• See M21-1, Part VI, Subpart i, 1.A.2.b for an explanation of the difference between the effective date of entitlement and the effective date of payment.
• M21-1, Part VII, Subpart i, 1.C.2.h contains additional instructions for determining the proper effective date for granting entitlement to additional compensation based on a same-sex marriage.

References:  For more information on

• establishing a biological, adopted, or stepchild as a dependent for VA purposes, see M21-1, Part VII, Subpart i, 3.B
• establishing the dependency of a parent, see M21-1, Part VII, Subpart i, 4.B, and
• the effective date of payment of additional compensation for a school child, see M21-1, Part VII, Subpart ii, 1.B.1.

VII.i.1.C.2.e.  Effect of Sharp v. Shinseki on the Assignment of Effective Dates

As a result of an October 15, 2009, decision by the Court of Appeals for Veterans Claims in Sharp v. Shinseki, 23 Vet.App. 267 (2009), claims processors must apply the effective date policy described in M21-1, Part VII, Subpart i, 1.C.2.d, even if the disability evaluation of the Veteran referenced in M21-1, Part VII, Subpart i, 1.C.1.e, was at least 30 percent before VA made the rating decision referenced in that block. 

Prior to the decision in Sharp v. Shinseki, if a Veteran failed to provide evidence/information about dependent(s) within one year of the date VA initially requested it (following assignment of the initial disability evaluation of 30 percent or greater), VA granted entitlement to additional compensation for the dependent(s) from an effective date that was no earlier than

• the date the Veteran eventually responded to the request, or
• the date shown in the table in M21-1, Part VII, Subpart i, 1.C.2.d (if the Veteran notified VA within one year of that date).

If, during routine review of a Veteran’s record, it is discovered that a rating decision completed on or after October 15, 2009, entitles the Veteran to additional compensation for a dependent(s) from an earlier effective date based on Sharp v. Shinseki, take action to correct the Veteran’s award.

Exception:  The policy stemming from Sharp v. Shinseki does not apply to

• pension awards, or
• subsequent rating decisions that only
  • confirm and continue (a) current disability evaluation(s), or
  • deny SC.

Reference:  For more information on granting entitlement to additional compensation for dependents from the effective date of a rating decision, see 38 CFR 3.401(b)(3).

VII.i.1.C.2.f.  Handling Responses to the Rating Decision Notices Referenced in M21-1, Part VII, Subpart i, 1.C.1 That VA Receives After the One-Year Time Limit

If a Veteran waits one year or more after the date of the rating decision notice referenced in M21-1, Part VII, Subpart i, 1.C.1 to provide the evidence, information, and/or forms VA requires to grant entitlement to additional compensation for the dependent(s), the effective date of entitlement may be no earlier than the date VA receives the response, unless

• within the past year, VA has notified the Veteran of a subsequent rating decision of the type described under the Important sublabel in M21-1, Part VII, Subpart i, 1.C.1.e, or
• the Veteran meets the requirements in M21-1, Part VII, Subpart i, 1.C.2.a, for granting entitlement to additional compensation for a dependent effective the date shown in the table in M21-1, Part VII, Subpart i, 1.C.2.d.

VII.i.1.C.2.g.  Examples:  Granting Entitlement to Additional Compensation for a Dependent Following Notification of Potential Entitlement

Scenario 1:  VA awards a combined disability evaluation of 30 percent to a Veteran effective April 21, 2011, and notifies him of potential entitlement to additional compensation for dependents on May 1, 2011.  The Veteran forgets to inform VA that he is currently married.

The Veteran has no interaction with VA until June 15, 2016, when he discovers the May 1, 2011, letter while cleaning out his desk.  He reads over the letter again and realizes he has been missing out on additional compensation for his spouse.  He immediately submits an online application that shows he first married in August 13, 1998, and remains married to the same person.

Action:  Grant entitlement to additional compensation for a spouse effective June 15, 2016.

Scenario 2:  On November 11, 2019, VA rates the same Veteran totally disabled based on IU effective September 18, 2013.

Action:  Retroactively grant entitlement to additional compensation for a spouse effective September 18, 2013.

VII.i.1.C.2.h.  Effective Date for Granting Entitlement to Additional Compensation Based on a Same-Sex Marriage

On September 4, 2013, the U.S. Attorney General announced that the President had directed the Executive Branch to cease enforcement of 38 U.S.C. 101(3) and (31) to the extent it prevented government agencies from paying benefits based on the marriage of two individuals of the same sex.

The President’s directive allowed VA to recognize a same-sex marriage as valid, as long as the marriage was legal according to the law of the place where the individuals resided

• at the time of the marriage, or
• when the right to VA benefits accrued (which means the date the claimant became eligible for VA benefits or the date VA received the claim for VA benefits). 

On June 26, 2015, the Supreme Court ruled in Obergefell v. Hodges that all states must

• license a marriage between two individuals of the same sex, and
• recognize a marriage between two individuals of the same sex when their marriage was lawfully licensed and performed out-of-state. 

As a consequence of the Supreme Court ruling, the process for determining the validity of a same-sex marriage is now no different than the process for determining the validity of a marriage between individuals of the opposite sex (as described in M21-1, Part VII, Subpart i, 2.A).

The table below explains how the President’s directive (which represents a liberalizing change in law) and the Supreme Court ruling affect the assignment of an effective date for entitlement to additional compensation based on a same-sex marriage.

Notes: 

• The policies expressed in the table above apply regardless of whether or not the State in which the Veteran resided at the time of marriage, or at the time entitlement to additional compensation for a spouse arose, recognized same-sex marriages prior to the Supreme Court ruling.
• If VA determines a Veteran is entitled to additional compensation for a same-sex spouse effective the date of entitlement to an overall SC disability evaluation of at least 30 percent, then VA subsequently assigns an overall SC disability evaluation of at least 30 percent from an earlier effective date, grant entitlement to additional compensation for the spouse effective the later of the following dates, regardless of whether that date precedes September 4, 2013:
  • the new effective date of the overall SC disability evaluation of at least 30 percent, or
  • the date of marriage. 

References: 

• For an example of the policy expressed in the preceding paragraph, see the sixth scenario discussed in M21-1, Part VII, Subpart i, 1.C.2.i.
• For more information on VA’s recognition of same-sex marriages, see VBA Letter 20-15-16, Administration of Same-Sex Spousal Benefits.

VII.i.1.C.2.i.  Examples:  Selecting an Appropriate Effective Date When Granting Entitlement to Additional Compensation for a Same-Sex Spouse

The table below contains examples of the policies expressed in M21-1, Part VII, Subpart i, 1.C.2.h.

Introduction

This topic discusses special considerations when making adjustments for dependents, including

• providing notice of an award adjustment
• effect of separation or estrangement
• payment of compensation while a reduction is under consideration
• processing notice of a change in the status of a parent or schoolchild
• requirement to notify a child’s custodian, and
• example of the adjustment of a child’s award and notification.

Change Date

VII.i.1.C.3.a.  Providing Notice of an Award Adjustment

Notify a beneficiary of any adjustment VA makes to the award because of a change in the status of a dependent.

Important: 

• If a third party notifies VA of a change in the status of a beneficiary’s dependent that will require an adverse adjustment to the beneficiary’s award, provide a notice of proposed adverse action to the beneficiary before making the adjustment.
• Notify Veteran Readiness and Employment (VR&E) Service of the change if the beneficiary is a Veteran receiving training under 38 U.S.C. Chapter 31.
  • E-mail notice to the VR&E mailbox of the RO that has custody of the Veteran’s Counseling/Evaluation/Rehabilitation folder.
  • Include in the e-mail
    • the Veteran’s name and claim number
    • the name of the dependent whose status has changed
    • an explanation of the reason for the change in status (such as death or divorce)
    • the date of the event that resulted in the change in status, and
    • the effective date of the corresponding award adjustment.
  • Upload a copy of the e-mail to the Veteran’s electronic claims folder. 

Example:  The mailbox for the Salt Lake City RO’s VR&E office is VAVBASLC/RO/VRE.

References:  For more information on

• preparing and issuing a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A
• making award adjustments in VBMS, see the VBMS Awards User Guide, and
• notifying a beneficiary of an adjustment to an award, see M21-1, Part VI, Subpart i, 1.B.

VII.i.1.C.3.b.  Effect of Separation or Estrangement

Separation or estrangement does not affect disability compensation awards unless

• the spouse files a claim for an apportionment, or
• VA is paying the Veteran additional compensation for a stepchild(ren) whose biological or adoptive parent is the Veteran’s spouse.

Important: 

• Separation and estrangement are both factors that affect entitlement to pension.
• Although 38 CFR 3.204(a)(1) requires a beneficiary to provide the address of a child that does not live with the beneficiary, there is no regulatory requirement that a Veteran provide the address of a spouse from whom the Veteran is separated or estranged.

References:  For more information on

• apportionments, see M21-1, Part VII, Subpart iii, 1.A, and
• the effect of separation or estrangement on a stepchild’s status, see M21-1, Part VII, Subpart i, 3.B.6.h.

VII.i.1.C.3.c.  Payment of Compensation While a Reduction Is Under Consideration

If either of the following actions are pending when a claim for additional compensation for dependents is pending or received, continue to adjudicate the claim:

• severance of SC under 38 CFR 3.105(d), or
• a proposed reduction under 38 CFR 3.105(e).

Important:  The provisions of 38 CFR 3.501(g)(2) allow for payment of additional compensation for dependents until the actual severance/reduction occurs.

VII.i.1.C.3.d.  Processing Notice of a Change in the Status of a Parent or Schoolchild 

Use the table below for processing notice of a change in the state of a parent or schoolchild.

VII.i.1.C.3.e.  Requirement to Notify a Child’s Custodian

Provide a notice of proposed adverse action to the custodian of any child whose rate of payment is adversely affected by a change in the status of a child or children on other awards.

VII.i.1.C.3.f.  Example:  Adjustment of a Child’s Award and Notification

Situation:

• A deceased Veteran’s first spouse reports that 16-year-old Lisa’s marriage has been annulled and asks that Lisa’s Dependency and Indemnity Compensation (DIC) payments as a child of the Veteran be reinstated.
• Because of the annulment, payment to the child of the Veteran’s second marriage (Robert – payee 12) must be reduced to the rate payable for one of two children.

Result:

• Provide a notice of proposed adverse action to Robert’s custodian.
• Continue payments at the higher rate until the first of the month following the month in which the due process period ends.  (The due process period ends 60 days after the date of the notice of proposed adverse action.)
• Retroactively reduce Robert’s award and create an overpayment at the end of the 65-day control period.

Notes:

• If Lisa’s marriage had been terminated by death or divorce, a reinstatement of DIC would not be in order.  Under Public Law 101-508, the marriage of a child is a permanent bar to entitlement to DIC.  This provision does not apply when the marriage is annulled or declared void by a court of competent jurisdiction.
• A notice of proposed adverse action is not required before making a retroactive payment of DIC to an additional child based on school attendance. 
  • The child receives the “available difference” between the total  amount payable for all children and the amount already paid for the existing children for the retroactive period. 
  • The additional child is paid the full child’s rate effective the first of the month following the month for which VA last paid the beneficiary.

Reference:  For more information on the adjudication of claims based on school attendance, see M21-1, Part VII, Subpart ii, 1.B.

Introduction

This topic contains general information on adjustments necessitated by the loss of a dependent, including

• when a notice of proposed adverse action to remove a dependent is not required
• when the end-of-month rule
  • applies to the removal of a dependent from a beneficiary’s award, and
  • does not apply to the removal of a dependent from a beneficiary’s award
• processing notice of the results of a paternity test
• action to take if a beneficiary fails to provide information required to remove a dependent
• information that is unique to changes in the status of children in receipt of DIC
• award adjustment upon the death or marriage of a child
• application of 38 CFR 3.551, and
• handling a renouncement of the right to additional benefits for a dependent.

Change Date

VII.i.1.C.4.a.  When a Notice of Proposed Adverse Action to Remove a Dependent Is Not Required

A notice of proposed adverse action to remove a dependent is not required if a beneficiary or a custodian provides VA with the evidence or information that triggers a reduction or discontinuation of benefits.

Reference:  For more information on the circumstances under which a notice of proposed adverse action is required, see M21-1, Part I, Subpart i, 1.B.2.a.

VII.i.1.C.4.b.  When the End-of-Month Rule Applies to the Removal of a Dependent From a Beneficiary’s Award

The end-of-month rule applies to the total award amount paid to the Veteran or surviving spouse as the primary beneficiary.

Under the provisions of 38 U.S.C. 5112(b)(2), 38 CFR 3.500, and 38 CFR 3.660(a)(2), the effective date of reduction or discontinuance of an award of compensation, current-law pension, or DIC is the last day of the month in which the event occurs if the reduction or discontinuance is due to the loss of a

• spouse because of
  • divorce
  • a voided or annulled marriage, or
  • death, or
• child because of
  • marriage
  • adoption
  • death, or
  • discontinuance of school attendance.

Important:

• The last day of the month in which the event took place that resulted in the loss of a dependent represents the last date benefits are payable to or for the dependent.  For award-processing purposes, the first day of the following month represents the first date of non-payment or reduced payment.
• The term “running award,” used in 38 CFR 3.660(a)(2), does not apply to reductions for loss of dependents, as described in 38 CFR 3.500.
• The requirement to remove a child that was given up for adoption from an award of disability compensation went into effect on September 14, 2015. Removal of an adopted child from an award of disability compensation from an effective date earlier than September 14, 2015, would be improper.
• As indicated in M21-1, Part VII, Subpart ii, 1.B.4.c, the date a former school child stops attending school does not always dictate the effective date for removal of the child from the beneficiary’s award.
• If removal of the dependent from the beneficiary’s award resulted from the dependent’s death, then update the corporate record to reflect the date of the dependent’s death.

References:  For more information on

• systems processing steps for removing dependents, see the VBMS Awards User Guide
• determining the effective date for an award adjustment based on a voided marriage, see M21-1, Part VII, Subpart i, 2.A.6.e, and
• handling cases in which a Veteran gives up a child for adoption, see M21-1, Part VII, Subpart i, 3.B.5.

VII.i.1.C.4.c.  When the End-of-Month Rule Does Not Apply to the Removal of a Dependent From a Beneficiary’s Award

The table below contains a description of the circumstances under which the end-of-month rule does not apply to the removal of a dependent from a beneficiary’s award.

VII.i.1.C.4.d.  Processing Notice of the Results of a Paternity Test

The results of a paternity or similar type of test might require the removal of a child from a beneficiary’s award.  Before removing the child, determine whether the child may be recognized as a stepchild under 38 CFR 3.57(b).

If VA may no longer recognize an individual as a Veteran’s child based on the results of a paternity test, remove the individual from the beneficiary’s award according to the instructions in M21-1, Part VII, Subpart i, 1.C.4.c.  (The date the beneficiary received the results of the test represents “the date of the event” referenced in M21-1, Part VII, Subpart i, 1.C.4.c.)

Exception:  Follow the instructions in M21-1, Part VII, Subpart iii, 1.B.6.g, if VA is apportioning benefits to or on behalf of the individual VA must remove from the beneficiary’s award.

Note:  Do not request a copy of the paternity test unless

• the beneficiary’s statement regarding the results and date of the paternity test raises a question of its validity
• the beneficiary’s statement conflicts with other evidence of record, or
• there is a reasonable indication of fraud or misrepresentation. 

References:  For more information on

• establishing a stepchild as a child for VA purposes, see M21-1, Part VII, Subpart i, 3.B.6, or
• handling notice from a beneficiary that will result in removal of a dependent from the beneficiary’s award, see M21-1, Part VII, Subpart i, 1.A.4.g.

VII.i.1.C.4.e.  Action to Take if a Beneficiary Fails to Provide Information Required to Remove a Dependent

If a beneficiary notifies VA of the loss of a dependent but does not provide the following information, attempt to obtain it from the beneficiary by telephone: 

• the date (month, day, and year) of the event (such as death or divorce) that necessitates removal of the dependent from the beneficiary’s award, and
• the location (city or country and state, or city and country, if the city is outside the U.S.) of the same event.

Exception:  VA Form 21-0538, Mandatory Verification of Dependents, does not ask Veterans for the location of the event that necessitates removal of a dependent from their award.  Accordingly, when a Veteran uses this form to notify VA of the loss of a dependent, claims processors may remove the dependent without this information and without making the telephone call referenced in the previous paragraph.

Follow the instructions in the table below if attempts to obtain the missing information by telephone are unsuccessful.

Notes:

• If a beneficiary provides only the name of the city in which an event took place, VA does not require the beneficiary to provide the name of the State, as long as the city is well-known (such as Atlanta or Chicago).
• Follow the instructions in M21-1, Part III, Subpart i, 2.D.1.e for documenting attempts to contact a Veteran by telephone.

VII.i.1.C.4.f.  Information That Is Unique to Changes in the Status of Children in Receipt of DIC

The following information is unique to changes in the status of children in receipt of DIC: 

• Discontinuation of an additional, separate award of DIC to a child attending school, or a child that is 18 years old and incapable of self-support, because of the marriage or death of that child, does not affect the surviving spouse’s award.
• The death or marriage of an out-of-custody child to whom VA is apportioning DIC under 38 CFR 3.461(a) does not require a corresponding adjustment to the surviving spouse’s award, and the surviving spouse is not entitled to additional benefits for the child through the end of the month in which the child died or married.

VII.i.1.C.4.g.  Award Adjustment Upon the Death or Marriage of a Child

If a Veteran or surviving spouse is receiving additional benefits for a child, and that child dies or marries, reduce or discontinue benefits effective the earlier of the following: 

• first day of the month following the date of death or marriage, or
• date of a previously scheduled reduction or discontinuance based on the
  • child’s 18^th birthday, or
  • schoolchild’s
    • 23^rd birthday, or
    • scheduled discontinuance of school attendance.

Note:  If entitlement is based on school attendance, and the child stops attending school before marrying, reduce or discontinue benefits effective the first day of the month following the month during which the child last attended school, per 38 CFR 3.667(c).

Reference:  For more information on the marriage of a beneficiary’s child, see M21-1, Part VII, Subpart i, 3.C.

VII.i.1.C.4.h.  Application of  38 CFR 3.551

Depending on the type of pension a Veteran is receiving, 38 CFR 3.551 may require a reduction of benefits if the Veteran loses an only dependent while VA is furnishing the Veteran with hospital, domiciliary, or nursing home care. 

• If the Veteran is receiving Section 306 or Old-Law Pension, follow the instructions in M21-1, Part X, Subpart iii, 1.D.5.e. 
• If the Veteran is receiving current-law pension and is hospitalized at VA expense, do not reduce benefits.
• If the Veteran is receiving current-law pension and domiciliary or nursing home care at VA expense,
  • notify the Veteran of the proposed reduction in benefits, and (after the due process period has ended)
  • reduce the Veteran’s monthly rate to $90 effective the first day of the fourth month following the month the Veteran lost the dependent.

Reference:  For more information on award adjustments under 38 CFR 3.551, see M21-1, Part X, Subpart iii, 1.D.

VII.i.1.C.4.i.  Handling a Renouncement of the Right to Additional Benefits for a Dependent

38 CFR 3.106 allows an individual that is entitled to compensation, pension, or DIC to renounce the right to that benefit.  However, an individual may not renounce individual components of a benefit, such as the additional benefits VA pays for a dependent.

A Veteran who is eligible for additional compensation for dependents may choose not to add a dependent to the award.  However, once VA has added the dependent, VA will not remove the dependent from the Veteran’s award unless and until the Veteran loses entitlement to additional compensation for that dependent due to, for example, death or divorce.

References:  For more information on

• the duty of claimants to report familial relationships and family composition, see M21-1, Part VII, Subpart i, 1.A.1.i, or
• renouncements of the right to a VA benefit, see M21-1, Part X, Subpart iv, 4.