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M21-1, Part IV, Subpart iii, Chapter 3, Section H – Allowance, Allotments, or Service pay Under 38 U.S.C. 5110(j)

Overview


In This Section

This section contains the following topics:

1.  General Information on Handling Allowance, Allotments, or Service Pay Under 38 U.S.C. 5110(j)


Introduction

This topic contains general information on handling allowances, allotments, or service pay under 38 U.S.C. 5110(j), including

Change Date

July 12, 2015

IV.iii.3.H.1.a.  Provision for In-Service Death Under 38 U.S.C. 5110(j)

The provisions of 38 CFR 3.400(c)(1) and 38 U.S.C. 5110(j) apply in all in-service death cases.
  • Department of Veterans Affairs (VA) payments may be affected by payments made to the claimant by a service department, when a claim for service-connected (SC) survivor benefits is filed within one year after the date
    • of the death of a serviceperson, or
    • on which a report of actual death or a finding of presumptive death is made by the Secretary of the service department concerned, and
  • payment of
    • Death Compensation or Dependency and Indemnity Compensation (DIC) to any dependent is precluded for any period during which the dependent has received, or is entitled to receive, an allowance, allotment, or service pay of the deceased (excluding the six-month death gratuity), and
    • retroactive Death Compensation or DIC is not authorized unless the dependent filed a claim within one year from the earliest date that the report or finding of death was made by the service department as shown by the service report.

IV.iii.3.H.1.b.  Consideration of More Than One Report or Finding of Death in the Deceased Veteran’s Claims Folder

If the deceased Veteran’s claims folder contains more than one report of actual death or finding of presumed death, use the first report or finding made by the service department to determine whether the original claim was filed within the prescribed one-year period.

IV.iii.3.H.1.c.  Definition of  Payments From the Service Department
As used in this section, the term “Payments from the service department”means allowances, allotments, or service pay of the deceased that the claimant received or is entitled to receive.
Reference:  For more information on the commencement of the period of payment, see 38 CFR. 3.31.

IV.iii.3.H.1.d.  Information About Basic Pay Data From a Service Department

Basic pay data, from the appropriate service department, is needed to determine a surviving spouse’s entitlement to DIC.

IV.iii.3.H.1.e.  Determining the Effective Date of Death

Use the table below to determine the effective date of death.
If the case involves a …
Then the effective date of death is the day following the …
report of an actual death
  • date of the reported death, or
  • date of the report of missing status, if the deceased was held to be in a missing status subsequent to the date of reported death.
finding of presumptive death
report of the presumptive death.

IV.iii.3.H.1.f.  Determining the Amount of Service Pay

Base the determination of service pay paid to the claimant on a statement from the fiduciary or the court of jurisdiction
  • if information furnished by the service department shows that service pay of the deceased was paid to the fiduciary, executor, administrator or other representative of the Veteran’s estate, and
  • if a determination is necessary to ascertain whether any claimant for Death Compensation or DIC may have received, or been entitled to receive, service pay of the deceased.
Before making a determination,
  • ask the claimant to submit a statement from the fiduciary or the court of jurisdiction as to whether any part of the Veteran’s estate has been or will be paid to the claimant
  • ascertain whether the claimant received any amount from the estate as distributee if he/she received the service pay of the deceased in his/her official capacity as fiduciary of the estate, and
  • establish a one-year time limit for a response to a request for evidence in connection with a pending claim.
Note:  The provisions in this section apply regardless of whether the claimant and fiduciary of the estate are separate individuals or are one and the same individual.

2.  Determining the Effective Dates of Claims Involving Payment Under 38 U.S.C 5110(j)


Introduction

This topic contains information on determining the effective dates of claims involving payment under 38 U.S.C. 5110(j), including information on determining the effective date for

Change Date

December 13, 2005

IV.iii.3.H.2.a.  Effective Date for Claims Filed More Than One Year After Initial Report or Finding

If the claim is filed more than one year after the date the report or finding was made, the commencing date is the date the claim was filed if otherwise in order.

IV.iii.3.H.2.b.  Effective Date for Claims Received Within One Year of the Report of Actual Death

Use the table below to determine the effective date for claims received within one year of the date of a report of actual death.
Service Department Payment Data
Effective Date
Remarks to Enter on the Award
No payments from the service department for any period on or after the first day of the month of death
First day of the month of death
Report of death made [date]. Payee did not receive and is not entitled to receive any allowance, allotment, or service pay of the deceased under 38 U.S.C. 5110(j).
Payments from the service department during a period on or after the date of actual death
Day following the date of actual death
Report of death made [date]. Payee [received] [entitled to receive] [allowance, allotment, service pay] of the deceased through [date] per 38 U.S.C. 5110(j).
  • Deceased was carried in a missingstatus, and
  • payments from the service department were for a period subsequent to the date of death
Day following the final date of the period covered by the service department payments
Report of death made [date]. Payee [received] [entitled to receive] [allowance; allotment; service pay] of the deceased through [date] per 38 U.S.C. 5110(j).

IV.iii.3.H.2.c.  Effective Date for a Finding of Presumptive Death Corrected by a Report of Actual Death
Use the table below to adjust the effective date when
  • VA receives a report of actual death after processing an award based on a claim filed within one year of a finding of presumptive death, and
  • VA receives necessary payment information.
Service Department Payment Data
Effective Date
Remarks to Enter on the Award
No payments from the service department for any period on or after the first day of the month of death
First day of the month of death
Finding of presumptive death made[date] corrected by report of actual death.
Payments from the service department for a period subsequent to the date of death and prior to the date the finding of presumptive death was made
Day following the final date of the period covered by the service department payments
Finding of presumptive death made[date] corrected by report of actual death. Payee[received] [entitled to receive] [allowance; allotment; service pay] of the deceased through [date] under 38 U.S.C. 5110(j).

3.  Award Action Involving Payment Under 38 U.S.C 5110(j)


Introduction

This topic contains information on award action involving payment under 38 U.S.C 5110(j), including

Change Date

July 12, 2015

IV.iii.3.H.3.a.  Award Action Taken if Service Department Information Is Not of Record

Do not delay adjudication of a claim for Death Compensation or DIC solely because information from the service department concerning the payment of an allowance, allotment or service pay of the deceased to his/her dependents is not of record.
Follow the steps below to complete an award action when service department information is not of record.
Step
Action
1
Has the claim been received within one year of the date of report or finding of death?
  • If yes,
    • take initial award action, if otherwise in order, to authorize payments subject to possible future adjustment, and
    • go to Step 2.
  • If no,
    • retroactive benefits are not payable, and
    • this ends the procedure.
2
On the BASIC ELIGIBILITY screen in the Veterans Benefits Management System (VBMS),
  • enter the date of death in the EVENT DATE field, as the date of reported or presumptive death, and
  • enter the effective date in the AWARD EFFECTIVE DATE field.
Note:  Enter the following statement in the REMARKS section: Report (Finding) of death made [date] subject to possible adjustment to an earlier commencing date (38 U.S.C. 5110(j)).
 
References:  For more information on
3
Establish a 30-day control for receipt of DD Form 1515, Pay and Allotment Information – Deceased Member from the service department.
4
Has the DD Form 1515 been received from the service department by the end of the control period?
  • If yes, go to Step 5.
  • If no,
    • request the necessary payment data using the Personnel Information Exchange System (PIES) as provided in M21-1, Part III, Subpart iii, 2.D, and
    • make no reference to the possibility of a future adjustment of the commencing date in the award letter.
5
Is an adjustment in the commencing date of an award required?
  • If yes, prepare an amended award annotated with the appropriate statement in the REMARKS section, as set forth inM21-1, Part IV, Subpart iii, 3.H.2.
  • If no, annotate the VA Form 21-3101Request for Informationwith the acronym, NAN (no action needed) and date and initial the form.

IV.iii.3.H.3.b.  Award Action Taken if Service Payment Data Is Furnished

If the DD Form 1300Report of Casualty, or other report or finding of actual death or DD Form 1515 contains the necessary information with regard to the beneficiary-claimant’s receipt of an allowance, allotment or service pay of the deceased

IV.iii.3.H.3.c.  Correction of the Date of Death in a Prior Award
If a report of actual death is received correcting the date of death shown in the previous report
  • edit the dates of the date of death in Participant Profile
  • update the Beneficiary Identification and Records Locator Subsystem (BIRLS) using the BIRLS update (BUPD) command, and
  • amend the award only if an adjustment in the commencing date is required.
Note:  If the award must be amended to adjust the commencing date
  • enter the appropriate annotation in the “REMARKS” section as provided inM21-1, Part IV, Subpart iii, 3.H.2, and
  • precede the entry with Report of actual death made [date] corrected by subsequent report of actual death.

IV.iii.3.H.3.d.Consideration for Apportionments

Do not authorize an award of an apportioned share of Death Compensation or DIC to, for, or on account of, a child for any period during which the payment of such benefit to the surviving spouse is barred by reason of the provisions of 38 U.S.C. 5110(j).

IV.iii.3.H.3.e.  Consideration of Payments to Children or Parents With No Surviving Spouse

In cases in which there is no surviving spouse, and payment of Death Compensation or DIC to only one child or parent is barred during any period by reason of the provisions of 38 U.S.C. 5110(j), authorize payments during that period for the other children or parent, if otherwise in order, but only at the rate payable if all children or both parents were receiving payments.
Change-July-12-2015-Transmittal-Sheet-M21-1IV_iii_3_SecK-New-H_TS.docx May 21, 2019 39 KB
Historical_M21-1IV_iii_3_SecK_12-13-2005.doc May 21, 2019 75 KB
Transmittal-Sheet-12_13_05.doc May 21, 2019 62 KB
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