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M21-1, Part III, Subpart vi, Chapter 4, Section D – Awards and Payments for Benefits Due to Philippine Service

Overview

In This Section
This section contains the following topics:
Topic
Topic Name
1
2
3
4
5

1.  Payment of Parents’ Dependency and Indemnity Compensation (DIC) in Philippine Cases

Introduction
This topic contains information on the payment of Parents’ DIC in Philippine cases, including

Change Date
May 28, 2015

III.vi.4.D.1.a.  Applying the Income Provisions of 38 CFR 3.251
Apply the income provisions of 38 CFR 3.251 to claims for Parents’ Dependency and Indemnity Compensation (DIC) by parents residing in the Philippines.

III.vi.4.D.1.b.  Preparing Awards of Parents’ DIC
When preparing an award of Parents’ DIC, the authorization activity must first verify if the claimant is receiving pension from the Philippine Veterans Affairs Office (PVAO).
If receipt of pension is confirmed, prepare the award with the following statement shown in the REMARKS section:  “In receipt of Philippine Veterans Affairs Office pension.”
Note:  The Manila Regional Office (RO) will notify PVAO when such awards are made.

2.  Payment of Compensation at a Combined Full-Dollar and Half-Dollar Rate in Philippine Cases

Introduction
This topic contains information on the payment of compensation at a combined full-dollar and half-dollar rate in Philippine cases including

Change Date

 May 28, 2015

III.vi.4.D.2.a.  Payment of Benefits at the Half-Dollar Rate
Awards at the half-dollar rate are prepared and processed in the regular manner, except that these awards will be paid at a rate equivalent to $0.50 for each dollar authorized under the applicable law.

III.vi.4.D.2.b.  Payment in a Combination of Half-Dollar and Full-Dollar Rates
If a Veteran has compensable disabilities based on the following service, which entitles him/her to compensation based in part on a half-dollar rate basis and in part on a full-dollar rate basis, determine the combined disability evaluation in the standard manner as shown in 38 CFR 4.25.
  • Commonwealth Army of the Philippines, Special Philippine Scouts, or guerrilla service, except as provided by 38 CFR 3.40(d)(1), 38 CFR 3.42, and Public Law (PL) 108-183.
  • service, in wartime or peacetime, in the Armed Forces of the United States or Regular Philippine Scouts.
Reference:  For information on payment of compensation at the full-dollar rate based on United States (U.S.) residency, see

III.vi.4.D.2.c.  Determining the Amounts Payable at the Half-Dollar and Full-Dollar Rates
The amount payable to the Veteran is the total of the full-dollar rate (for regular U.S. military service) and 50 percent of the half-dollar rate basis computed as shown below.
Count the amount payable in two ways to determine which will pay the greater benefit to the Veteran.  This is done by comparing the amount in Step 2 of Method 1 with that of Step 3 in Method 2.
Note:  For examples on how to compute the amount payable, see
Step
Method 1
Method 2
1
Determine the amount payable at the full-dollar rate for the combined evaluation (for both U.S. and Philippine military service).
Determine the amount payable at the full-dollar rate for the combined evaluation (for both U.S. and Philippine military service).
2
Determine the amount payable at the full-dollar rate for the combined evaluation of the disabilities determined to be due to regular U.S. military service alone.
This is the full-dollar rate payable to the Veteran.
Compute the percentage ratio between
  • the combined evaluation of disabilities due to regular U.S. military service alone, and
  • the total combined evaluation determined in Step 1.
3
Compute the difference between the amounts obtained in Step 1 and Step 2.
This is the basis for the half-dollar rate.
Multiply the full dollar amount obtained in Step 1 by the percentage ratio obtained in Step 2.
This is the full-dollar rate payable to the Veteran.
4
—
Compute the difference between the amounts obtained in Step 1 and Step 3.
This is the basis for the half-dollar rate.

III.vi.4.D.2.d.  Example 1:  Determining the Half-Dollar and Full-Dollar Rates
Situation:  A married Veteran has a 40-percent disability incurred during service in the Armed Forces of the U.S. and a 20-percent disability incurred during wartime service in the Commonwealth Army of the Philippines, combining to 50 percent at the rate of $917.13 (rate effective 12/01/2014).
Method 1
Calculations
$917.13
Rate of combined 50-percent evaluation
-651.36
Rate of combined 40-percent evaluation payable at the full-dollar rate
$65.77
Amount used for computing half-dollar rate
Method 2
Calculations
$917.13
Rate of combined 50-percent evaluation
x 80%
Ratio of the combined 40-percent full-dollar evaluation to 50-percent combined evaluation
$733.70
Amount payable at full-dollar rate
$917.13
Rate of combined evaluation
-733.70
Amount payable at full-dollar rate
$183.43
Amount used for computing half-dollar rate
Result:  Use Method 2 in this case, because the full-dollar rate payable ($733.70) is greater than that in Method 1 ($651.36).
The amount payable to the Veteran is $825.42 ($733.70 at the full-dollar rate plus $91.72 (half of $183.43) at the half-dollar rate).

III.vi.4.D.2.e.  Example 2:  Determining the Half-Dollar and Full-Dollar Rates
Situation:  A Veteran has a 10-percent disability incurred during service in the Armed Forces of the U.S. and a 10-percent disability incurred during wartime service in the Commonwealth Army of the Philippines, combining to the rate of 20 percent at the rate of $263.23 (effective 12/01/2014).
Method 1
Calculations
$263.23
Rate of the combined 20-percent evaluation
-133.17
Rate of the combined 10-percent evaluation payable at the full-dollar rate
$130.06
Amount for computing the half-dollar rate
Method 2
Calculations
$263.23
Rate of the combined 20-percent evaluation
x 50%
Ratio of the combined 10-percent full-dollar evaluation to 20 percent combined evaluation
$131.62
Amount payable at the full-dollar rate
$263.23
Rate of the combined evaluation
-$131.62
Amount payable at the full-dollar rate
$131.61
Amount for computing the half-dollar rate
Result:  Use Method 1 in this case because the amount payable at the full-dollar rate ($133.17) is greater than that in Method 2 ($131.62).
The amount payable is $198.97 ($133.17 at the full-dollar rate, plus $65.80 (half of $131.61) at the half-dollar rate).

III.vi.4.D.2.f.  Computing the Total Amount Payable and Award Input
Follow the steps in the table below to input the total amount payable in the  Veterans Service Network (VETSNET) or Veterans Benefits Management System – Awards (VBMS-A).
Use the method that was more beneficial to the Veteran, per M21-1, Part III, Subpart vi, 4.D.2.c.
Note:  Decision notice can only be completed in the Personal Computer Generated Letters (PCGL).
Step
Action
1
Determine the amount of the total award at the full-dollar rate, including
  • combined degree, and
  • any additional amounts authorized for special monthly compensation (SMC) and dependents.
2
Determine the amount due for the combined evaluation for the service-connected (SC) disabilities payable at the full-dollar rate (regular U.S. service).
3
Compute the difference between the amount in Step 2 and the amount in Step 1. This is the basis for obtaining the amount due at the half-dollar rate per 38 CFR 3.40(e).
4
Add half of the amount obtained in Step 3 to the full-dollar rate payable in Step 2.
This is the total amount payable to the Veteran.
5
Manually input the amount computed in Step 4 using the Generate Award Override (GAO) function.
Reference:  For information on how to process an award in

3.  General Requirements for Payment of Benefits at the Full-Dollar Rate Based on Residency in the U.S.

Introduction
This topic contains information on general requirements for payment of benefits at the full-dollar rate based on U.S. residency, including information on

Change Date
February 5, 2016

III.vi.4.D.3.a.  Obtaining Proof of U.S. Residency
Obtain satisfactory evidence that the claimant resides in the U.S., such as a
  • driver’s license
  • current lease or purchase agreement, or
  • utility bill.
Notes:
  •  A Post Office box mailing address in the Veteran’s or survivor’s name does not constitute evidence of lawful U.S. residency.
  • A deceased Veteran is considered to have been residing in the U.S. on the date of death, even though the death occurred outside the U.S., if he/she was physically absent for fewer than 61 consecutive days prior to this date.

III.vi.4.D.3.b.  Obtaining Evidence of U.S Natural-Born Citizenship
An original or genuine and unaltered copy of one of the following documents is required as evidence of natural-born U.S. citizenship
  • U.S. passport
  • birth certificate showing that the Veteran was born in the U.S., or
  • Report of Birth Abroad of a Citizen of the U.S. issued by a U.S. consulate.
Note:  If the claimant submits genuine and unaltered copies, do not request original versions of the above documents.

III.vi.4.D.3.c.  Obtaining Evidence of Naturalized Citizenship
To establish naturalized U.S. citizenship, obtain
  • verification from the U.S. Citizenship and Immigration Services (USCIS) (formerly the Immigration and Naturalization Service), or
  • an original or genuine and unaltered copy of a U.S. passport.
References:  For more information on evidence of naturalized citizenship, see

III.vi.4.D.3.d.  Obtaining Evidence of Permanent Resident Alien Status
Request verification from the USCIS of evidence of permanent resident alien status.

4.  Payment of Compensation and DIC at the Full-Dollar Rate Based on U.S. Residency

Introduction
This topic contains information on payment of compensation and DIC at the full-dollar rate based on U.S. residency, including

Change Date
July 30, 2015

III.vi.4.D.4.a.  Eligibility Requirements for  Payment at the Full-Dollar Rate
Effective October 27, 2000, PL 106-377 authorized payment of disability compensation benefits at the full-dollar rate to Veterans who
  • served before July 1, 1946, in
    • the Commonwealth Army of the Philippines, or
    • organized guerrilla groups
  • reside in the U.S. (States, territories, and possessions, the District of Columbia, and the Commonwealth of Puerto Rico), and
  • are either U.S. citizens or permanent resident aliens as determined by the USCIS.
Similarly, the enactment of PL 108-183 on December 16, 2003, authorized payment of disability compensation benefits at the full-dollar rate to Veterans who
  • served in the Special Philippine Scouts
  • reside in the U.S. (States, territories, and possessions, the District of Columbia, and the Commonwealth of Puerto Rico), and
  • are either U.S. citizens or permanent resident aliens as determined by the USCIS.
Reference:  For more information on entitlement to the half-dollar or full-dollar rate, see M21-1, Part III, Subpart vi, 4.A.2.

III.vi.4.D.4.b.  Eligibility Requirements for DIC
PL 108-183 also authorized the payment of DIC benefits at the full-dollar rate to survivors
  • whose DIC eligibility is based on the Veteran’s service in the
    • Commonwealth Army of the Philippines
    • Special Philippine Scouts, or
    • organized guerrilla groups, and
  • who meet the U.S. residency and citizenship requirements shown in 38 CFR 3.42.
Reference:  For more information on the half-dollar, or full dollar rates, see M21-1, Part III, Subpart vi, 4.A.2.

III.vi.4.D.4.c.  Specific Residency Requirements
Per 38 CFR 3.42, to be eligible for benefits at the full-dollar rate based on U.S. residency, a Veteran or survivor must
  • be physically present in the U.S. for at least 183 days of each calendar year, and
  • not be absent from the U.S. for more than 60 consecutive days.
Notes:
  • The Department of Veterans Affairs (VA) may award an exception to the residency requirements stated above on a case-by-case basis, if a beneficiary
    • shows good cause, and
    • is able to document the reason(s) he/she failed to meet the requirements.
  • If a Veteran or survivor becomes eligible for full-dollar rate benefits on an initial basis, on or after July 1 of any calendar year, the 183-day rule doesnot apply during that calendar year.
  • If a Veteran or survivor leaves from, and returns to, the U.S. on the same day (such as on trips to Canada or Mexico), do not consider the beneficiary to have been absent from the U.S.

III.vi.4.D.4.d.  Requirement for Reporting Changes in Residency or Citizenship Status
To continue to receive benefits at the full-dollar rate, a beneficiary must
  • notify VA within 30 days of
    • leaving the U.S., or
    • losing either U.S. citizenship or permanent resident alien status
  • furnish prompt notice of any change of address, and
  • verify annually that he/she continues to meet the residency and citizenship/permanent alien status requirements in 38 CFR 3.42.
Note:  VA Form Letter (FL) 21-914, Residency Verification Report (RVR)-Veterans and Survivors, is used for annual verification of eligibility.

III.vi.4.D.4.e.  Effective Date for Payment of Compensation at the Full-Dollar Rate in Running Awards
The effective date of awards of compensation at the full-dollar rate under PL 106-377 is October 27, 2000, for Veterans already receiving compensation benefits if they
  • met the eligibility requirements for the full-dollar rate stated in 38 CFR 3.42 on October 27, 2000, and
  • maintained eligibility from that date to the date of an administrative decision of entitlement.
The effective date of awards of compensation at the full-dollar rate under PL 108-183 is January 1, 2004, for Veterans already receiving compensation benefits if they
  • met the eligibility requirements for the full-dollar rate in 38 CFR 3.42 on December 16, 2003, and
  • maintained eligibility from that date to the date of an administrative decision of entitlement.
Notes:
  • Veterans do not have to specifically request to be paid at the full-dollar rate.  VA automatically increases compensation payments if eligibility requirements are met.
  • The provisions of 38 CFR 3.31 applies to the effective date of payment of benefits at the full-dollar rate.
  • The provisions 38 CFR 3.114(a) applies to the effective date of an award of benefits at the full-dollar rate.

III.vi.4.D.4.f.  Effective Date for Payment of DIC at the Full-Dollar Rate in Running Awards
The effective date of awards of DIC at the full-dollar rate under PL 108-183 is January 1, 2004, for survivors already receiving DIC benefits if they
  • met the eligibility requirements for the full-dollar rate stated in 38 CFR 3.42 on December 16, 2003, and
  • maintained eligibility from that date to the date of an administrative decision of entitlement.
Notes:
  • Survivors do not have to specifically request to be paid at the full-dollar rate.  VA automatically increases DIC payments if eligibility requirements are met.
  • The provisions of 38 CFR 3.114(a) applies to the effective date of an award of benefits at the full-dollar rate.

III.vi.4.D.4.g.  Effective Dates for Payment at the Full-Dollar Rate in Initial Awards of Compensation or DIC
For Veterans and survivors not already receiving compensation or DIC benefits, initial awards at the full-dollar rate based on U.S. residency and U.S. citizenship or resident alien status are effective on the latest of the following dates, subject to the provisions of 38 CFR 3.31 and 38 CFR 3.114(a)
  • date on which entitlement arose
  • date on which the Veteran or survivor first met the eligibility and citizenship/permanent resident alien status requirements in 38 CFR 3.42, if VA receives evidence of this within one year of that date
  • effective date of the rating establishing SC for disability or death, provided VA receives evidence that the Veteran or survivor meets the requirements in 38 CFR 3.42 within one year of the notification of the rating action
  • date the Veteran or survivor returned to the U.S. after an absence of more than 60 consecutive days, or
  • first day of the year following the year in which the Veteran or survivor was absent from the U.S. for a total of 183 days or more, or the first day after that date that the Veteran returns to the U.S. per 38 CFR 3.405.

III.vi.4.D.4.h.  Jurisdiction for Payment of Compensation and DIC
The Manila RO has jurisdiction over payment of disability compensation and DIC benefits at the full-dollar rate under PL 106-377 or PL 108-183.

III.vi.4.D.4.i.  When to Reduce Benefits to the Half-Dollar Rate
Use the table below to determine when to reduce benefits to the half-dollar rate.
If …
Then …
the beneficiary is physically absent from the U.S. for a total of 183 days or more during any calendar year, unless for a good cause
reduce compensation or DIC to the half-dollar rate effective on the 183rdday of the absence.
Reference:  For more information on the requirements for U.S. residency, see M21-1, Part III, Subpart vi, 4.D.4.c.
the beneficiary is physically absent from the U.S. for more than 60 consecutive days, unless for a good cause
reduce compensation or DIC to the half-dollar rate effective on the 61st day of the absence.
the beneficiary loses either
  • U.S. citizenship, or
  • status as a permanent resident alien
reduce compensation or DIC to the half-dollar rate effective on the date one of these criteria is not met.
mail to the beneficiary is returned as undeliverable
make reasonable efforts to identify the correct mailing address.
Reference:  For more information on mail returned as undeliverable, seeM21-1, Part III, Subpart iii, 1.B.8.
no current address is found for the beneficiary
reduce compensation or DIC to the half-dollar rate effective on the date of last payment.
References:  For more information on
the beneficiary fails to furnish verification of residency or citizenship/alien status within 60 days as requested
reduce compensation or DIC to the half-dollar rate as of the date determined under 38 CFR 3.652.

III.vi.4.D.4.j.  When to Restore Benefits to the Full-Dollar Rate
Use the table below to determine when to restore benefits to the full-dollar rate.
If …
Then …
Example
  • a beneficiary whose payments are reduced to the half-dollar rate begins meeting eligibility requirements again, and
  • VA receives evidence of eligibility within one year of the date the beneficiary began meeting eligibility requirements again
restore benefits to the full-dollar rate effective the first day of the month following the date on which the requirements under38 CFR 3.42 and 38 CFR 3.405  are met.
Situation:  A Veteran’s payments were reduced to the half-dollar rate on the 61st day of his absence from the U.S., October 14, 2001. Evidence received on March 3, 2002, shows he/she returned to the U.S. on November 2, 2001.
Result:  Restore benefits to the full-dollar rate effective December 1, 2001.
Situation:  A Veteran’s payments were reduced to the half dollar rate on the 61st day of absence on April 3, 2013.  Evidence received on March 3, 2014, shows he/she returned to the U.S. on September 1, 2013.
Result:  Restore benefits to the full dollar rate effective January 1, 2014, the first day of the calendar year following the year the Veteran was absent from the U.S. for 183 days or more.
  • a beneficiary whose payments are reduced to the half-dollar rate begins meeting eligibility requirements again, and
  • VA receives the evidence more than one year after the date the beneficiary began meeting eligibility requirements again
restore benefits to the full-dollar rate effective the first day of the month following the date on which the evidence was received.
Situation:  A surviving spouse’s DIC payments were reduced to the half-dollar rate on the 61stday of her absence from the U.S., November 7, 2001. Evidence received on January 14, 2003, shows she returned to the U.S. on December 23, 2001.
Result:  Award benefits at the full-dollar rate effective February 1, 2003.
evidence which shows continued eligibility for the full-dollar rate is received within one year of VA’s request
restore payments to the full-dollar rate in accordance with the facts found, per 38 CFR 3.109.
Situation:  A Veteran’s payments were reduced to the half-dollar rate on May 1, 2002, because he failed to return VA Form Letter (FL) 21-914 that was sent to him in January 2002. Evidence received on August 15, 2002, shows that he met all eligibility requirements during the year 2001.
Result:  Restore benefits to the full-dollar rate effective May 1, 2002.

5.  Payment of Burial Benefits at the Full-Dollar Rate Based on U.S. Residency

Introduction
This topic contains information on the payment of burial benefits at the full-dollar rate based on U.S. residency in Philippine cases, including

Change Date
August 14, 2006

III.vi.4.D.5.a.  Eligibility Requirements Under PL 106-419
PL 106-419 authorizes payment of burial benefits at the full-dollar rate based on service of members of the Commonwealth Army of the Philippines or organized guerrilla groups who died on or after November 1, 2000, and who, on the date of death
  • resided in the U.S. (states, territories and possessions, the District of Columbia and the Commonwealth of Puerto Rico)
  • were either U.S. citizens or permanent resident aliens (as determined by the USCIS), and
  • were either receiving VA compensation benefits or met the disability, income, and net worth requirements for VA pension benefits, and would have been eligible, if service had been deemed to be active military, naval, or air service.
Reference:  For more information on eligibility requirements, see 38 CFR 3.43.

III.vi.4.D.5.b.  Eligibility Requirements Under PL 108-183
PL 108-183 authorized payment of burial benefits at the full-dollar rate based on service of members of the Special or “new” Philippine Scouts who died on or after December 16, 2003, and who, on the date of death
  • resided in the U.S. (states, territories and possessions, the District of Columbia and the Commonwealth of Puerto Rico)
  • were either U.S. citizens or permanent resident aliens (as determined by the USCIS), and
  • were either receiving VA compensation benefits or met the disability, income, and net worth requirements for VA pension benefits, and would have been eligible, if service had been deemed to be active military, naval, or air service.

III.vi.4.D.5.c.  Determining Pension Eligibility
If the Veteran was not receiving VA compensation benefits on the date of death, request that the claimant provide the following information
  • amount and sources of the Veteran’s income and net worth for the month prior to death
  • marital status of the Veteran at the time of death and the name and address of his/her surviving spouse, and
  • names, addresses, and ages of the Veteran’s children, if applicable.

III.vi.4.D.5.d.  Obtaining Pension Eligibility Information
To obtain the Veteran’s pension eligibility information, either

III.vi.4.D.5.e.  Need to Develop for Further Disability, Income, or Dependency Information
Assume, without development, that the Veteran’s disability(ies) met the requirements for special monthly pension (SMP) at the aid and attendance (A&A) level at the time of death.
Note:  Develop for further income or dependency information or evidence only if
  • the information received is contradictory, or
  • additional information would be critical in determining pension eligibility.
Historical_M21-1III_vi_4_SecD_7-30-15.doc May 18, 2019 161 KB
2-5-16_Key-Changes_M21-1III_vi_4_SecD.docx May 18, 2019 65 KB
Change-May-28-2015-Transmittal-Sheet-M21-1MRIII_vi_4_SecD_TS.docx May 18, 2019 41 KB
Transmittal-08_14_06.doc May 18, 2019 35 KB
in Chapter 4 Phillipine Cases, Part III General Claims Process, Subpart vi Special Authorization Issues
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