Project Initiation Request

DEPARTMENT OF VETERANS AFFAIRS Veterans Benefits Administration Washington, D.C. 20420

November 20, 2008

Director (00/21) In Reply Refer To: 212A All VA Regional Offices and Centers Fast Letter 08-43

SUBJ: December 1, 2008, Compensation and DIC Cost-of-Living Adjustment

Enclosed with this letter are charts showing the 2008 cost-of-living adjustment (COLA) for compensation and dependency and indemnity compensation (DIC) recipients. Charts showing the increased clothing allowance and Medal of Honor pension are also enclosed.

1. The COLA for compensation and DIC is effective December 1, 2008.

2. For BDN awards, an attempt on November 18, 2008, to authorize an award GAPed prior to this date will result in a displayed message advising the authorizer that the award must be reGAPed to add the December 1, 2008, line. Authorize as many awards as possible by close of business on November 17, 2008.

3. “Not adjusted” writeouts generated as a result of the legislative adjustment should be worked under End Product (EP) 694.

4. For cases in VETSNET Awards, you may continue to generate and authorize cases until close of business November 21, 2008. VETSNET Awards cases that have been generated but not authorized/concurred by close of business on November 21, 2008, will not be adjusted, and no warning messages or writeouts will be issued. On Monday, November 24, 2008, authorizers should watch for VETSNET Awards cases that were generated before November 24, 2008. These cases must be returned and regenerated to capture the new COLA rates. On the weekend of November 22, 2008, we will install a new 800 series work-item (850) that will be produced when a COLA adjustment is needed on a VETSNET record. The corresponding update to VETSNET Operations Reports (VOR) will occur in mid-December. Compensation and Pension Service will distribute a custom report of 850s as needed between the November release and when the functionality is available in VOR. After establishing the EP 694, PCLR the 850 work item. Page 2.

Director (00/21)

5. For any VETSNET Awards cases where the automatic COLA rejects, a notification will be sent to your local VETSNET Awards mailbox. Please ensure that the mailbox is monitored daily. These cases will require manual adjustments to generate the new COLA rates.

Rate charts for compensation under Public Law 141-73 (entitlement code 11, special law code 09) are not included with this fast letter. If you need a rate for one of these cases, or have other questions concerning this fast letter, contact VAVBAWAS/CO/212A.

This letter self-rescinds on December 1, 2009.

/s/ Bradley G. Mayes Director Compensation and Pension Service

Enclosures (9) DEPENDENCY AND INDEMNITY COMPENSATION Surviving Spouse and Child Apportionment Schedule VETERAN DIED PRIOR TO 1/1/93 Entitlement Codes 07, 17, 27, 37, PL 110-324 47, 57, 67, 69, 77, 87, 97, & 99 Effective 12/1/08

E-1 f 40/41 E-2 f 42 E-3 a,f 34/43 E-4 f 44 E-5 f 45 E-6 f 46 E-7 g 47 E-8 g 48 Total Share Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Dep Each Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Code Child Spouse Spouse Spouse Spouse Spouse Spouse Spouse Spouse 10 1154 1,154 1,154 1,154 1,154 1,154 1194 1260 11 286 1440 1154 1440 1,154 1440 1,154 1440 1,154 1440 1,154 1440 1,154 1480 1194 1546 1260 12 286 1726 1154 1726 1,154 1726 1,154 1726 1,154 1726 1,154 1726 1,154 1766 1194 1832 1260 13 286 2012 1154 2012 1,154 2012 1,154 2012 1,154 2012 1,154 2012 1,154 2052 1194 2118 1260 14 286 2298 1154 2298 1,154 2298 1,154 2298 1,154 2298 1,154 2298 1,154 2338 1194 2404 1260 E-9 g 49 E-9b 29 W-1 g 30 W-2 g 31 W-3 g 32 W-4 g 33 O-1 g 10/20 O-2 g 11/21 Total Share Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Dep Each Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Code Child Spouse Spouse Spouse Spouse Spouse Spouse Spouse Spouse 10 1314 1419 1219 1267 1305 1380 1219 1260 11 286 1600 1314 1705 1419 1505 1219 1553 1267 1591 1305 1666 1380 1505 1219 1546 1260 12 286 1886 1314 1991 1419 1791 1219 1839 1267 1877 1305 1952 1380 1791 1219 1832 1260 13 286 2172 1314 2277 1419 2077 1219 2125 1267 2163 1305 2238 1380 2077 1219 2118 1260 14 286 2458 1314 2563 1419 2363 1219 2411 1267 2449 1305 2524 1380 2363 1219 2404 1260 O-3 g 12/22 O-4 13 O-5 14 O-6 15 O-7 16 O-8 17 O-9 18 O-10 19 Total Share Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Total Apptd Dep Each Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Amt Surv Code Child Spouse Spouse Spouse Spouse Spouse Spouse Spouse Spouse 10 1347 1427 1571 1771 1912 2100 2246 2463 11 286 1633 1347 1713 1427 1857 1571 2057 1771 2198 1912 2386 2100 2532 2246 2749 2463 12 286 1919 1347 1999 1427 2143 1571 2343 1771 2484 1912 2672 2100 2818 2246 3035 2463 13 286 2205 1347 2285 1427 2429 1571 2629 1771 2770 1912 2958 2100 3104 2246 3321 2463 14 286 2491 1347 2571 1427 2715 1571 2915 1771 3056 1912 3244 2100 3390 2246 3607 2463 O-10c 25 Notes: Total Share Total Apptd a. Surviving spouse of Aviation Cadet or other service not covered by this table is paid the DIC rate for enlisted E-3 under 34. Dep Each Amt Surv b. Veteran who served as Sgt Major of the Army or Marine Corps, Senior Enlisted Advisor of the Navy, Chief Master Sgt of the Air Force, or Code Child Spouse Master Chief Petty Officer of the Coast Guard. 10 2643 c. Veteran who served as Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army or Air Force, Chief of Naval Operations, or 11 286 2929 2643 Commandant of the Marine Corps. 12 286 3215 2643 d. If surviving spouse entitled to A/A, add $286; if entitled to HB, add $135. 13 286 3501 2643 e. Add $286 for each child under 18. 14 286 3787 2643 f. Add $246 if veteran rated totally disabled 8 continuous years prior to death and surviving spouse was married to veteran those same 8 years. g. Base rate is $1,400 if vet rated totally disabled 8 continuous years prior to death and surviving spouse was married to vet those same 8 years. DEPENDENCY AND INDEMNITY COMPENSATION

Children's Rates Entitlement Codes 07, 17, 27 37 PL 110-324 47, 57 67, 69, 77, 87, 97, 99 Effective 12/1/08 ______

Surviving Spouse Entitled ______

Total Additional Separate Award Dependency Code For Each Child Over 18 Rate ______

81 School Child $243 81 Helpless Child 488 ______

No Surviving Spouse ______

Number of Children Total Dep. Code Total Payable Each Child Share* 1 81 $488 $488.00 2 82 701 350.50 3 83 915 305.00 4 84 1089 272.25 5 85 1263 252.60 6 86 1437 239.50 7 87 1611 230.14 8 88 1785 223.12 9 89 1959 217.66

______

*For each helpless child over 18 add For each additional child add

$286 $174 ______DEPENDENCY AND INDEMNITY COMPENSATION

SURVIVING SPOUSE

Veteran's Death Was On or After January 1, 1993

______Entitlement Codes 07, 17, 27 37 PL 110-324 47, 57 67, 69, 77, 87, 97, 99 Effective 12/1/08

Basic Monthly Rate = $1,154 (38 U.S.C. 1311(a)(1))

Additional Allowances:

a. Add $246 if at the time of the veteran's death, the veteran was in receipt of or entitled to receive compensation for a service-connected disability rated totally disabling (including a rating based on individual unemployability) for a continuous period of at least 8 years immediately preceding death AND the surviving spouse was married to the veteran for those same 8 years. (38 U.S.C. 1311(a)(2))

b. Add the following allowance for each dependent child under age 18: *

Effective 10/1/93 $150 per child Effective 10/1/94 $200 per child Effective 12/1/95 $205 per child Effective 12/1/96 $211 per child Effective 12/1/97 $215 per child Effective 12/1/98 $217 per child Effective 12/1/99 $222 per child Effective 12/1/00 $229 per child Effective 12/1/01 $234 per child Effective 12/1/02 $237 per child Effective 12/1/03 $241 per child Effective 12/1/04 $247 per child Effective 12/1/05 $257 per child Effective 12/1/06 $265 per child Effective 12/1/07 $271 per child Effective 12/1/08 $286 per child

(38 U.S.C. 1311(b))

c. If the surviving spouse is entitled to A&A, add $286. (38 U.S.C. 1311(c))

d. If the surviving spouse is entitled to Housebound, add $135 (38 U.S.C. 1311(d))

e. If the surviving spouse has one or more children under the age 18 on the award, add the transitional benefit of $250. (38 U.S.C. 1311(f))

*DIC apportionment rates approved by the Under Secretary for Benefits under 38 CFR 3.461(b) will be the additional allowance received for each child. DISABILITY COMPENSATION - BASIC RATES Entitlement Codes 01, 11, 21, 31, 41, PL 110-324 51, 61, 71, and 91 Effective 12/1/08 Dep Dep 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dep Dep Code Status Status Code 00 Veteran 123 243 376 541 770 974 1228 1427 1604 2673 Veteran 00 10 V-S 421 601 845 1064 1333 1547 1739 2823 V-S 10 11 V-S-1C 453 644 899 1129 1409 1634 1837 2932 V-S-1C 11 12 V-S-2C 475 674 936 1174 1461 1694 1904 3007 V-S-2C 12 13 V-S-3C 497 704 973 1219 1513 1754 1971 3082 V-S-3C 13 14 V-S-4C 519 734 1010 1264 1565 1814 2038 3157 V-S-4C 14

Each additional child 22 30 37 45 52 60 67 75 Each additional child Each additional schoolchild (see footnote a) 72 96 120 144 168 192 216 240 Each schoolchild

81 V-1C 406 581 820 1034 1298 1507 1694 2774 V-1C 81 82 V-2C 428 611 857 1079 1350 1567 1761 2849 V-2C 82 83 V-3C 450 641 894 1124 1402 1627 1828 2924 V-3C 83 84 V-4C 472 671 931 1169 1454 1687 1895 2999 V-4C 84

20/30 V-S-1P 457 649 905 1136 1417 1643 1847 2943 V-S-1P 20/30 21/31 V-S-1P-1C 489 692 959 1201 1493 1730 1945 3052 V-S-1P-1C 21/31 22/32 V-S-1P-2C 511 722 996 1246 1545 1790 2012 3127 V-S-1P-2C 22/32 23/33 V-S-1P-3C 533 752 1033 1291 1597 1850 2079 3202 V-S-1P-3C 23/33 24/34 V-S-1P-4C 555 782 1070 1336 1649 1910 2146 3277 V-S-1P-4C 24/34

40 V-S-2P 493 697 965 1208 1501 1739 1955 3063 V-S-2P 40 41 V-S-2P-1C 525 740 1019 1273 1577 1826 2053 3172 V-S-2P-1C 41 42 V-S-2P-2C 547 770 1056 1318 1629 1886 2120 3247 V-S-2P-2C 42 43 V-S-2P-3C 569 800 1093 1363 1681 1946 2187 3322 V-S-2P-3C 43 44 V-S-2P-4C 591 830 1130 1408 1733 2006 2254 3397 V-S-2P-4C 44

50/60 V-1P 412 589 830 1046 1312 1523 1712 2793 V-1P 50/60 51/61 V-1P-1C 442 629 880 1106 1382 1603 1802 2894 V-1P-1C 51/61 52/62 V-1P-2C 464 659 917 1151 1434 1663 1869 2969 V-1P-2C 52/62 53/63 V-1P-3C 486 689 954 1196 1486 1723 1936 3044 V-1P-3C 53/63 54/64 V-1P-4C 508 719 991 1241 1538 1783 2003 3119 V-1P-4C 54/64

70 V-2P 448 637 890 1118 1396 1619 1820 2913 V-2P 70 71 V-2P-1C 478 677 940 1178 1466 1699 1910 3014 V-2P-1C 71 72 V-2P-2C 500 707 977 1223 1518 1759 1977 3089 V-2P-2C 72 73 V-2P-3C 522 737 1014 1268 1570 1819 2044 3164 V-2P-3C 73 74 V-2P-4C 544 767 1051 1313 1622 1879 2111 3239 V-2P-4C 74

Additional for A/A spouse (see footnote b) 40 54 68 81 95 108 122 136 See footnote b. FOOTNOTES: a. Rates for each school child are shown separately. They are not included with any other compensation rates. All other entries on this chart reflecting a rate for children show the rate payable for children under 18 or helpless. To find the amount payable to a 70% disabled veteran with a spouse and four children, one of whom is over 18 and attending school, take the 70% rate for a veteran with a spouse and 3 children, $ 1513, and add the rate for one school child, $168. The total amount payable is $1681. b. Where the veteran has a spouse who is determined to require A/A, add the figure shown as "additional for A/A spouse" to the amount shown for the proper dependency code. For example, veteran has A/A spouse and 2 minor children and is 70% disabled. Add $95, additional for A/A spouse, to the rate for a 70% veteran with dependency code 12, $1461. The total amount payable is $ 1556. DISABILITY COMPENSATION - SMC RATES Entitlement Codes 01, 11, 21, 31, 41, PL 110-324 51, 61, 71, and 91 Effective 12/1/08 Dep Dep 03 18 07/19 20 11/21 22 37 51-55 56-60 48 Dep Dep Code Status L L½ M M½ N N½ O/P R.1 R.2 S Status Code 00 Veteran 3327 3499 3671 3923 4176 4421 4667 6669 7650 2993 Veteran 00 10 V-S 3477 3649 3821 4073 4326 4571 4817 6819 7800 3143 V-S 10 11 V-S-1C 3586 3758 3930 4182 4435 4680 4926 6928 7909 3252 V-S-1C 11 12 V-S-2C 3661 3833 4005 4257 4510 4755 5001 7003 7984 3327 V-S-2C 12 13 V-S-3C 3736 3908 4080 4332 4585 4830 5076 7078 8059 3402 V-S-3C 13 14 V-S-4C 3811 3983 4155 4407 4660 4905 5151 7153 8134 3477 V-S-4C 14

Each additional child 75 75 75 75 75 75 75 75 75 75 Each additional child Each schoolchild (a) 240 240 240 240 240 240 240 240 240 240 Each schoolchild (a)

81 V-1C 3428 3600 3772 4024 4277 4522 4768 6770 7751 3094 V-1C 81 82 V-2C 3503 3675 3847 4099 4352 4597 4843 6845 7826 3169 V-2C 82 83 V-3C 3578 3750 3922 4174 4427 4672 4918 6920 7901 3244 V-3C 83 84 V-4C 3653 3825 3997 4249 4502 4747 4993 6995 7976 3319 V-4C 84

20/30 V-S-1P 3597 3769 3941 4193 4446 4691 4937 6939 7920 3263 V-S-1P 20/30 21/31 V-S-1P-1C 3706 3878 4050 4302 4555 4800 5046 7048 8029 3372 V-S-1P-1C 21/31 22/32 V-S-1P-2C 3781 3953 4125 4377 4630 4875 5121 7123 8104 3447 V-S-1P-2C 22/32 23/33 V-S-1P-3C 3856 4028 4200 4452 4705 4950 5196 7198 8179 3522 V-S-1P-3C 23/33 24/34 V-S-1P-4C 3931 4103 4275 4527 4780 5025 5271 7273 8254 3597 V-S-1P-4C 24/34

40 V-S-2P 3717 3889 4061 4313 4566 4811 5057 7059 8040 3383 V-S-2P 40 41 V-S-2P-1C 3826 3998 4170 4422 4675 4920 5166 7168 8149 3492 V-S-2P-1C 41 42 V-S-2P-2C 3901 4073 4245 4497 4750 4995 5241 7243 8224 3567 V-S-2P-2C 42 43 V-S-2P-3C 3976 4148 4320 4572 4825 5070 5316 7318 8299 3642 V-S-2P-3C 43 44 V-S-2P-4C 4051 4223 4395 4647 4900 5145 5391 7393 8374 3717 V-S-2P-4C 44

50/60 V-1P 3447 3619 3791 4043 4296 4541 4787 6789 7770 3113 V-1P 50/60 51/61 V-1P-1C 3548 3720 3892 4144 4397 4642 4888 6890 7871 3214 V-1P-1C 51/61 52/62 V-1P-2C 3623 3795 3967 4219 4472 4717 4963 6965 7946 3289 V-1P-2C 52/62 53/63 V-1P-3C 3698 3870 4042 4294 4547 4792 5038 7040 8021 3364 V-1P-3C 53/63 54/64 V-1P-4C 3773 3945 4117 4369 4622 4867 5113 7115 8096 3439 V-1P-4C 54/64

70 V-2P 3567 3739 3911 4163 4416 4661 4907 6909 7890 3233 V-2P 70 71 V-2P-1C 3668 3840 4012 4264 4517 4762 5008 7010 7991 3334 V-2P-1C 71 72 V-2P-2C 3743 3915 4087 4339 4592 4837 5083 7085 8066 3409 V-2P-2C 72 73 V-2P-3C 3818 3990 4162 4414 4667 4912 5158 7160 8141 3484 V-2P-3C 73 74 V-2P-4C 3893 4065 4237 4489 4742 4987 5233 7235 8216 3559 V-2P-4C 74

Addn'l A/A spouse (b) 136 136 136 136 136 136 136 136 136 136 See footnote b.

FOOTNOTES:

a. See footnote a on the DISABILITY COMPENSATION - BASIC RATES chart for an example of how to add a schoolchild. b. See footnote b on the DISABILITY COMPENSATION - BASIC RATES chart for an example of how to determine the rate where a spouse is entitled to A/A. SPECIAL MONTHLY COMPENSATION CODES AND RATES Entitlement Codes 01, 11, 21, 31, PL 110-324 41, 51, 61, 71, and 91 Effective 12/1/08

SMC Award Basic Hospital SMC Award Basic Hospital Code Abbreviation Rate Rate Code Abbreviation Rate Rate 01 K 96 N/C 32 N+2K 4368 3863 e 02 2K 192 N/C 33 L½+3K 3787 3281 a,b 03 L 3327 2993 a 34 M+3K 3959 3281 b,d 04 L+K 3423 3089 a 35 M½+3K 4211 3281 b,d 05 L+2K 3519 3185 a 3787 c 06 L+3K 3615 3281 a,b 36 STAT - Q 67 N/C 07 M 3671 3327 c 37 O 4667 N/C 08 M+K 3767 3423 c 38 N½+2K 4613 4115 e 09 M+2K 3863 3519 c 39 S+3K 3281 N/C 10 M+3K 3959 3615 c 43 N½+K+R(1)A&A 6519 4517 11 N 4176 N/C 44 N½+K+R(2)A&A 7500 4517 12 N+K 4272 N/C 45 h N/C 13 N+2K 4368 N/C 46 h N/C 14 3K 288 N/C 47 h N/C 15 N+3K 4464 N/C 48 S 2993 N/C 18 L½ 3499 2993 a 49 S+K 3089 N/C 19 M 3671 2993 d 50 S+2K 3185 N/C 20 M½ 3923 2993 d 51 R(L+R(1)A&A) 6669 3671 g 3499 c 52 R(L½+R(1)A&A) 6669 3923 g 21 N 4176 3671 e 53 R(M+R(1)A&A) 6669 4176 g 22 N½ 4421 3923 e 54 R(M½+R(1)A&A) 6669 4421 g 24 L½+K 3595 3089 a 55 R(N+R(1)A&A),(N½+R(1)A&A), 6669 4667 25 M+K 3767 3089 d (O+R(1)A&A) 26 M½+K 4019 3089 d 56 R(L+R(2)A&A) 7650 3671 g 3595 c 57 R(L½+R(2)A&A) 7650 3923 g 27 N+K 4272 3767 e 58 R(M+R(2)A&A) 7650 4176 g 28 N½+K 4517 4019 e 59 R(M½+R(2)A&A) 7650 4421 g 29 L½+2K 3691 3185 a 60 R(N+R(2)A&A)(N½+R(2)A&A), 7650 4667 30 M+2K 3863 3185 d (O+R(2)A&A) 31 M½+2K 4115 3185 d 3691 c

Refer to M21-1, Appendix B, page XII(12/1991)-2 for footnote explanations. SPECIAL BENEFIT ALLOWANCES

Historical and Current

AUTOMOBILE ALLOWANCE

PL 79-663 PL 91-666 PL 93-538 PL 95-476 PL 97-66 PL 98-543 PL 100-322 8/8/46 1/11/71 2/1/75 10/18/78 10/1/81 1/1/85 4/1/88

$1,600 $2,800 $3,300 $3,800 $4,400 $5,000 $5,500

PL 105-178 PL 107-103 PL 108-183 10/1/98 12/27/01 12/16/03

$8,000 $9,000 $11,000

CLOTHING ALLOWANCE*

PL 92-328 PL 94-71 PL 94-433 PL 95-117 PL 95-479 PL 96-128 PL 96-385 10/1/72 10/1/75 10/1/76 10/1/77 10/1/78 10/1/79 10/1/80

$150 $175 $190 $203 $218 $240 $274

PL 97-66 PL 97-306 PL 98-223 PL 98-543 PL 99-238 PL 99-576 PL 100-227 10/1/81 10/1/82 4/1/84 12/1/84 12/1/85 12/1/86 12/1/87

$305 $327 $338 $349 $360 $365 $380

PL 100-687 PL 101-237 PL 102-3 PL 102-152 PL 102-510 PL 103-140 PL 103-418 12/1/88 12/1/89 1/1/91 12/1/91 12/1/92 12/1/93 12/1/94

$395 $414 $436 $452 $466 $478 $491

PL 104-57 PL 104-263 PL 105-98 PL 105-368 PL 106-118 PL 106-413 PL 107-94 12/1/95 12/1/96 12/1/97 12/1/98 12/1/99 12/1/00 12/1/01

$503 $518 $528 $534 $546 $565 $580 PL 107-247 PL 108-147 PL 108-363 PL 109-111 PL 109-361 PL 110-111 PL 110-324 12/1/02 12/1/03 12/1/04 12/1/05 12/1/06 12/1/07 12/1/08

$588 $600 $616 $641 $662 677 716

MEDAL OF HONOR PENSION

PL 64-56 PL 87-138 PL 95-479 PL 103-161 PL 105-368 PL 107-330 2.7% COLA 4/27/16 9/16/61 1/1/79 12/1/93 12/1/98 9/1/03 12/1/04

$10 $100 $200 $400 $600 $1,000 $1,027 4.1% COLA 3.3% COLA 2.3% COLA 5.8% COLA 12/1/05 12/1/06 12/1/07 12/1/08

$1,069 $1,104 $1,129 $1,194

*The clothing allowance increase, while effective the date of the law, is not payable until the following August 1st. (Example: PL 97-306 effective October 1, 1982, increased the clothing allowance to $327. This rate was payable August 1, 1983.)