M21-1, Part 1, Change 51, Document Dated 09/29/06

Veterans Benefits Administration M21-1, Part 1 Department of Veterans Affairs Change 51 Washington, DC 20420 September 29, 2006

Veterans Benefits Administration Manual M21-1, part I, Appendix B, is changed as follows:

Pages V(12/2004)-1 through V(12/2004)-3: Insert these pages preceding page V(12/2003)-1.

Pages VIII(12/2004)-1 through VIII(12/2004)-2: Insert these pages preceding page VIII(12/2003)-1.

Page IX(12/2004)-1: Insert this page preceding page IX(12/2003)-1.

Page X(12/2004)-1: Insert this page preceding page X(12/2003)-1.

Pages XII(12/2004)-1 and XII(12/2004)-2: Insert these pages preceding page XII(12/2003)-1.

Page XIV-1: Remove this page and substitute page XIV-1, attached.

By Direction of the Under Secretary for Benefits

Renée L. Szybala, Director Compensation and Pension Service

Distribution: RPC: 2068 FD: EX: ASO and AR (included in RPC 2068) September 29, 2006 M21-1, Part I Change 51 Appendix B

DEPENDENCY AND INDEMNITY COMPENSATION

Children's Rates Entitlement Codes 07, 17, 27 37 PL 108-363 47, 57 67, 69, 77, 87, 97, 99 Effective 12/1/04 ______

Surviving Spouse Entitled ______

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

81 School Child $210 81 Helpless Child 421 ______

No Surviving Spouse ______

Number of Children Total Dep. Code Total Payable Each Child Share* 1 81 $421 $421.00 2 82 605 302.50 3 83 787 262.33 4 84 938 234.50 5 85 1089 217.80 6 86 1240 206.66 7 87 1391 198.71 8 88 1542 192.75 9 89 1693 188.11

______

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

$247 $151 ______V(12/2004)-1 M21-1, Part 1 September 29, 2006 Change 51 Appendix B DEPENDENCY AND INDEMNITY COMPENSATION Surviving Spouse and Child Apportionment Schedule VETERAN DIED PRIOR TO 1/1/93 Entitlement Codes 07, 17, 27, 37, PL-108-363 47, 57, 67, 69, 77, 87, 97, & 99 Effective 12/1/04 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 10 993 993 993 993 993 993 1027 1084 11 247 1240 993 1240 993 1240 993 1240 993 1240 993 1240 993 1274 1027 1331 1084 12 247 1487 993 1487 993 1487 993 1487 993 1487 993 1487 993 1521 1027 1578 1084 13 247 1734 993 1734 993 1734 993 1734 993 1734 993 1734 993 1768 1027 1825 1084 14 247 1981 993 1981 993 1981 993 1981 993 1981 993 1981 993 2015 1027 2072 1084 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 1131 1221 1049 1091 1123 1188 1049 1084 11 247 1378 1131 1468 1221 1296 1049 1338 1091 1370 1123 1435 1188 1296 1049 1331 1084 12 247 1625 1131 1715 1221 1543 1049 1585 1091 1617 1123 1682 1188 1543 1049 1578 1084 13 247 1872 1131 1962 1221 1790 1049 1832 1091 1864 1123 1929 1188 1790 1049 1825 1084 14 247 2119 1131 2209 1221 2037 1049 2079 1091 2111 1123 2176 1188 2037 1049 2072 1084 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 1160 1227 1351 1523 1645 1805 1931 2118 11 247 1407 1160 1474 1227 1598 1351 1770 1523 1892 1645 2052 1805 2178 1931 2365 2118 12 247 1654 1160 1721 1227 1845 1351 2017 1523 2139 1645 2299 1805 2425 1931 2612 2118 13 247 1901 1160 1968 1227 2092 1351 2264 1523 2386 1645 2546 1805 2672 1931 2859 2118 14 247 2148 1160 2215 1227 2339 1351 2511 1523 2633 1645 2793 1805 2919 1931 3106 2118 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 2272 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 11 247 2519 2272 Commandant of the Marine Corps. 12 247 2766 2272 d. If surviving spouse entitled to A/A, add $247; if entitled to HB, add $118. 13 247 3013 2272 e. Add $247 for each child under 18. 14 247 3260 2272 f. Add $213 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 $1,206 if vet rated totally disabled 8 continuous years prior to death and surviving spouse was married to vet those same 8 years. V(12/2004)-2 September 29, 2006 M21-1, Part 1 Change 51 Appendix B

DEPENDENCY AND INDEMNITY COMPENSATION

SURVIVING SPOUSE

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

______Entitlement Codes 07, 17, 27 37 PL 108-363 47, 57 67, 69, 77, 87, 97, 99 Effective 12/1/04 ______

Basic Monthly Rate = $993 (38 U.S.C. 1311(a)(1))

Additional Allowances:

a. Add $213 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

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

c. If the surviving spouse is entitled to A&A, add $247. (38 U.S.C. 1311(c))

d. If the surviving spouse is entitled to Housebound, add $118 (38 U.S.C. 1311(d))

e. If there is one or more children under the age 18 on the surviving spouse’s award, add $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. V(12/2004)-3 September 29, 2006 M21-1, Part 1 Change 51 Appendix B DISABILITY COMPENSATION - BASIC RATES Entitlement Codes 01, 11, 21, 31, 41, PL 108-363 51, 61, 71, and 91 Effective 12/1/04 Dep Dep 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dep Dep Code Status Status Code 00 Veteran 108 210 324 466 663 839 1056 1227 1380 2299 Veteran 00 10 V-S 363 518 728 917 1147 1331 1497 2429 V-S 10 11 V-S-1C 391 555 775 973 1212 1406 1581 2523 V-S-1C 11 12 V-S-2C 410 581 808 1012 1258 1458 1640 2589 V-S-2C 12 13 V-S-3C 429 607 841 1051 1304 1510 1699 2655 V-S-3C 13 14 V-S-4C 448 633 874 1090 1350 1562 1758 2721 V-S-4C 14

Each additional child 19 26 33 39 46 52 59 66 Each additional child Each additional schoolchild (see footnote a) 62 82 103 124 144 165 186 207 Each schoolchild

81 V-1C 350 501 707 891 1117 1297 1459 2387 V-1C 81 82 V-2C 369 527 740 930 1163 1349 1518 2453 V-2C 82 83 V-3C 388 553 773 969 1209 1401 1577 2519 V-3C 83 84 V-4C 407 579 806 1008 1255 1453 1636 2585 V-4C 84

20/30 V-S-1P 394 560 780 980 1220 1415 1591 2534 V-S-1P 20/30 21/31 V-S-1P-1C 422 597 827 1036 1285 1490 1675 2628 V-S-1P-1C 21/31 22/32 V-S-1P-2C 441 623 860 1075 1331 1542 1734 2694 V-S-1P-2C 22/32 23/33 V-S-1P-3C 460 649 893 1114 1377 1594 1793 2760 V-S-1P-3C 23/33 24/34 V-S-1P-4C 479 675 926 1153 1423 1646 1852 2826 V-S-1P-4C 24/34

40 V-S-2P 425 602 832 1043 1293 1499 1685 2639 V-S-2P 40 41 V-S-2P-1C 453 639 879 1099 1358 1574 1769 2733 V-S-2P-1C 41 42 V-S-2P-2C 472 665 912 1138 1404 1626 1828 2799 V-S-2P-2C 42 43 V-S-2P-3C 491 691 945 1177 1450 1678 1887 2865 V-S-2P-3C 43 44 V-S-2P-4C 510 717 978 1216 1496 1730 1946 2931 V-S-2P-4C 44

50/60 V-1P 355 508 715 902 1129 1311 1474 2404 V-1P 50/60 51/61 V-1P-1C 381 543 759 954 1190 1381 1553 2492 V-1P-1C 51/61 52/62 V-1P-2C 400 569 792 993 1236 1433 1612 2558 V-1P-2C 52/62 53/63 V-1P-3C 419 595 825 1032 1282 1485 1671 2624 V-1P-3C 53/63 54/64 V-1P-4C 438 621 858 1071 1328 1537 1730 2690 V-1P-4C 54/64

70 V-2P 386 550 767 965 1202 1395 1568 2509 V-2P 70 71 V-2P-1C 412 585 811 1017 1263 1465 1647 2597 V-2P-1C 71 72 V-2P-2C 431 611 844 1056 1309 1517 1706 2663 V-2P-2C 72 73 V-2P-3C 450 637 877 1095 1355 1569 1765 2729 V-2P-3C 73 74 V-2P-4C 469 663 910 1134 1401 1621 1824 2795 V-2P-4C 74

Additional for A/A spouse (see footnote b) 35 46 58 70 81 93 105 117 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, $ 1,304, and add the rate for one school child, $144. The total amount payable is $1,448

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 $81, additional for A/A spouse, to the rate for a 70% veteran with dependency code 12, $1,258. The total amount payable is $ 1,339 VIII (12/2004)-1 M21-1, Part 1 September 29, 2006 Change 51 Appendix B DISABILITY COMPENSATION - SMC RATES Entitlement Codes 01, 11, 21, 31, 41, PL 108-363 51, 61, 71, and 91 Effective 12/1/04 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 2860 3007 3155 3372 3590 3801 4012 5734 6576 2573 Veteran 00 10 V-S 2990 3137 3285 3502 3720 3931 4142 5864 6706 2703 V-S 10 11 V-S-1C 3084 3231 3379 3596 3814 4025 4236 5958 6800 2797 V-S-1C 11 12 V-S-2C 3150 3297 3445 3662 3880 4091 4302 6024 6866 2863 V-S-2C 12 13 V-S-3C 3216 3363 3511 3728 3946 4157 4368 6090 6932 2929 V-S-3C 13 14 V-S-4C 3282 3429 3577 3794 4012 4223 4434 6156 6998 2995 V-S-4C 14

Each additional child 66 66 66 66 66 66 66 66 66 66 Each additional child Each schoolchild (a) 207 207 207 207 207 207 207 207 207 207 Each schoolchild (a)

81 V-1C 2948 3095 3243 3460 3678 3889 4100 5822 6664 2661 V-1C 81 82 V-2C 3014 3161 3309 3526 3744 3955 4166 5888 6730 2727 V-2C 82 83 V-3C 3080 3227 3375 3592 3810 4021 4232 5954 6796 2793 V-3C 83 84 V-4C 3146 3293 3441 3658 3876 4087 4298 6020 6862 2859 V-4C 84

20/30 V-S-1P 3095 3242 3390 3607 3825 4036 4247 5969 6811 2808 V-S-1P 20/30 21/31 V-S-1P-1C 3189 3336 3484 3701 3919 4130 4341 6063 6905 2902 V-S-1P-1C 21/31 22/32 V-S-1P-2C 3255 3402 3550 3767 3985 4196 4407 6129 6971 2968 V-S-1P-2C 22/32 23/33 V-S-1P-3C 3321 3468 3616 3833 4051 4262 4473 6195 7037 3034 V-S-1P-3C 23/33 24/34 V-S-1P-4C 3387 3534 3682 3899 4117 4328 4539 6261 7103 3100 V-S-1P-4C 24/34

40 V-S-2P 3200 3347 3495 3712 3930 4141 4352 6074 6916 2913 V-S-2P 40 41 V-S-2P-1C 3294 3441 3589 3806 4024 4235 4446 6168 7010 3007 V-S-2P-1C 41 42 V-S-2P-2C 3360 3507 3655 3872 4090 4301 4512 6234 7076 3073 V-S-2P-2C 42 43 V-S-2P-3C 3426 3573 3721 3938 4156 4367 4578 6300 7142 3139 V-S-2P-3C 43 44 V-S-2P-4C 3492 3639 3787 4004 4222 4433 4644 6366 7208 3205 V-S-2P-4C 44

50/60 V-1P 2965 3112 3260 3477 3695 3906 4117 5839 6681 2678 V-1P 50/60 51/61 V-1P-1C 3053 3200 3348 3565 3783 3994 4205 5927 6769 2766 V-1P-1C 51/61 52/62 V-1P-2C 3119 3266 3414 3631 3849 4060 4271 5993 6835 2832 V-1P-2C 52/62 53/63 V-1P-3C 3185 3332 3480 3697 3915 4126 4337 6059 6901 2898 V-1P-3C 53/63 54/64 V-1P-4C 3251 3398 3546 3763 3981 4192 4403 6125 6967 2964 V-1P-4C 54/64

70 V-2P 3070 3217 3365 3582 3800 4011 4222 5944 6786 2783 V-2P 70 71 V-2P-1C 3158 3305 3453 3670 3888 4099 4310 6032 6874 2871 V-2P-1C 71 72 V-2P-2C 3224 3371 3519 3736 3954 4165 4376 6098 6940 2937 V-2P-2C 72 73 V-2P-3C 3290 3437 3585 3802 4020 4231 4442 6164 7006 3003 V-2P-3C 73 74 V-2P-4C 3356 3503 3651 3868 4086 4297 4508 6230 7072 3069 V-2P-4C 74

Addn'l A/A spouse (b) 117 117 117 117 117 117 117 117 117 117 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. VIII(12/2004)-2 September 29, 2006 M21-1, Part 1 Change 51 Appendix B DISABILITY COMPENSATION

Veteran Alone (PL 141-73) Entitlement Code 11 Only PL 108-363 Special Law Code 09 Effective 12/1/04

Percent of Monthly Percent of Monthly Percent of Monthly Disability Rate Disability Rate Disability Rate 10 $108 40 $466 70 $1,056 11 118 41 485 71 1073 12 128 42 505 72 1090 13 138 43 525 73 1107 14 148 44 544 74 1124 15 159 45 564 75 1141 16 169 46 584 76 1158 17 179 47 603 77 1175 18 189 48 623 78 1192 19 199 49 643 79 1209 20 210 50 663 80 1227 21 221 51 680 81 1242 22 232 52 698 82 1257 23 244 53 715 83 1272 24 255 54 733 84 1288 25 267 55 751 85 1303 26 278 56 768 86 1318 27 289 57 786 87 1334 28 301 58 803 88 1349 29 312 59 821 89 1364 30 324 60 839 90 1380 31 338 61 860 91 1471 32 352 62 882 92 1563 33 366 63 904 93 1655 34 380 64 925 94 1747 35 395 65 947 95 1839 36 409 66 969 96 1931 37 423 67 990 97 2023 38 437 68 1012 98 2115 39 451 69 1034 99 2207

IX(12/2004)-1 September 29, 2006 M21-1, Part I Change 51 Appendix B DISABILITY COMPENSATION Additional Disability Compensation for Dependents

Entitlement Code 11 Only PL 108-363 Special Law 09 Effective 12/1/04

Dep Dep Dep Dep Code Status 30% 31% 32% 33% 34% 35% 36% 37% 38% 39% 40% 41% 42% 43% 44% 45% 46% 47% 48% 49% Status Code 10 V-S 39 40 41 42 44 45 46 48 49 50 52 53 54 55 57 58 59 61 62 63 V-S 10 11 V-S-1C 67 69 71 73 76 78 80 82 85 87 89 91 94 96 98 100 103 105 107 109 V-S-1C 11 12 V-S-2C 86 89 92 94 98 101 103 106 110 112 115 118 121 124 127 129 133 136 138 141 V-S-2C 12 81 V-1C 26 27 28 29 29 30 31 32 33 34 35 36 36 37 38 39 40 41 42 43 V-1C 81 73 82 V-2C 45 47 49 50 51 53 54 56 58 59 61 63 63 65 67 68 70 72 73 75 V-2C 82 Add for A/A Add for A/A Spouse (b) 35 36 38 39 39 41 42 43 44 46 46 48 49 51 51 53 54 55 56 58 Spouse (b)

Dep Dep Dep Dep Code Status 50% 51% 52% 53% 54% 55% 56% 57% 58% 59% 60% 61% 62% 63% 64% 65% 66% 67% 68% 69% Status Code 10 V-S 65 66 67 68 70 71 72 74 75 76 78 79 80 81 83 84 85 87 88 89 V-S 10 11 V-S-1C 112 114 116 118 120 123 125 127 129 132 134 136 138 141 143 145 147 150 152 154 V-S-1C 11 12 V-S-2C 145 147 150 152 155 159 161 164 167 170 173 176 178 182 185 187 190 194 196 199 V-S-2C 12 81 V-1C 44 44 45 46 47 48 49 50 51 51 52 53 54 55 56 57 58 58 59 60 V-1C 81 82 V-2C 77 77 79 80 82 84 85 87 89 89 91 93 94 96 98 99 101 102 103 105 V-2C 82 Add for A/A Add for A/A Spouse (b) 58 59 61 62 63 64 66 66 68 69 70 71 73 74 75 76 78 78 79 81 Spouse (b)

Dep Dep Dep Dep Code Status 70% 71% 72% 73% 74% 75% 76% 77% 78% 79% 80% 81% 82% 83% 84% 85% 86% 87% 88% 89% Status Code 10 V-S 91 92 93 94 96 97 98 100 101 102 104 105 106 107 109 110 111 113 114 115 V-S 10 11 V-S-1C 156 159 161 163 165 168 170 172 174 176 179 181 183 185 188 190 192 194 197 199 V-S-1C 11 12 V-S-2C 202 205 208 211 213 217 220 222 225 228 231 234 237 239 243 246 248 251 255 257 V-S-2C 12 81 V-1C 61 62 63 64 65 66 66 67 68 69 70 71 72 73 73 74 75 76 77 78 V-1C 81 82 V-2C 107 108 110 112 113 115 116 117 119 121 122 124 126 127 128 130 131 133 135 136 V-2C 82 Add for A/A Add for A/A Spouse (b) 81 83 84 86 86 88 89 90 91 93 93 95 96 98 98 99 101 101 103 104 Spouse (b)

Dep Dep Code Status 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 10 V-S 117 118 119 120 122 123 124 126 127 128 11 V-S-1C 201 203 206 208 210 212 215 217 219 221 See footnotes on Disability Compensation rate chart. 12 V-S-2C 260 263 266 269 272 274 278 281 283 286 81 V-1C 79 80 80 81 82 83 84 85 86 87 82 V-2C 138 140 140 142 144 145 147 149 150 152 Add for A/A Spouse (b) 105 106 108 109 110 111 113 113 115 116 X(12/2004)-1 September 29, 2006 M21-1, Part I Change 51 Appendix B SPECIAL MONTHLY COMPENSATION CODES AND RATES Entitlement Codes 01, 11, 21, 31, PL 108-363 41, 51, 61, 71, and 91 Effective 12/1/04

SMC Award Basic Hospital SMC Award Basic Hospital Code Abbreviation Rate Rate Code Abbreviation Rate Rate 01 K 84 N/C 32 N+2K 3758 3323 e 02 2K 168 N/C 33 L½+3K 3259 2825 a,b 03 L 2860 2573 a 34 M+3K 3407 2825 b,d 04 L+K 2944 2657 a 35 M½+3K 3624 2825 b,d 05 L+2K 3028 2741 a 3259 c 06 L+3K 3112 2825 36 STAT - Q 67 N/C a,b 07 M 3155 2860 c 37 O 4012 N/C 08 M+K 3239 2944 c 38 N½+2K 3969 3540 e 09 M+2K 3323 3028 c 39 S+3K 2825 N/C 10 M+3K 3407 3112 c 43 N½+K+R(1)A&A 5607 3885 11 N 3590 N/C 44 N½+K+R(2)A&A 6449 3885 12 N+K 3674 N/C 45 h N/C 13 N+2K 3758 N/C 46 h N/C 14 3K 252 N/C 47 h N/C 15 N+3K 3842 N/C 48 S 2573 N/C 18 L½ 3007 2573 a 49 S+K 2657 N/C 19 M 3155 2573 d 50 S+2K 2741 N/C 20 M½ 3372 2573 d 51 R(L+R(1)A&A) 5734 3155 g 3007 c 52 R(L½+R(1)A&A) 5734 3372 g 21 N 3590 3155 e 53 R(M+R(1)A&A) 5734 3590 g 22 N½ 3801 3372 e 54 R(M½+R(1)A&A) 5734 3801 g 24 L½+K 3091 2657 a 55 R(N+R(1)A&A),(N½+R(1)A&A), 5734 4012 25 M+K 3239 2657 d (O+R(1)A&A) 26 M½+K 3456 2657 d 56 R(L+R(2)A&A) 6576 3155 g 3091 c 57 R(L½+R(2)A&A) 6576 3372 g 27 N+K 3674 3239 e 58 R(M+R(2)A&A) 6576 3590 g 28 N½+K 3885 3456 e 59 R(M½+R(2)A&A) 6576 3801 g 29 L½+2K 3175 2741 a 60 R(N+R(2)A&A)(N½+R(2)A&A), 6576 4012 30 M+2K 3323 2741 d (O+R(2)A&A) 31 M½+2K 3540 2741 d 3175 c XII(12/2004)-1 M21-1, Part I September 29, 2006 Change 51 Appendix B

Explanation For Special Monthly Compensation Schedules

General When the hospital rate on the chart differs from the basic rate, the rate shown is the amount payable when reduction is necessary. However, some veterans under this code will be entitled to the basic rate during hospitalization. Use the following footnotes to determine whether reduction is necessary.

Footnotes a. Reduce because of hospitalization only if veteran has a rating under "l" based on A/A. Pay the "s" rate plus any “k’s" to which entitled subject to limitation of footnote b. This also applies to "l" 1/2 rate paid on this basis. b. The rate for any "k's" in combination with compensation paid under 38 U.S.C. 1114(a) through (j) or (s) may not exceed the basic rate payable under SMC Code 03; the rate may not exceed the basic rate payable under SMC Code 37 when any "k's" are in combination with 38 U.S.C. 1114(l) through (n). c. Reduce because of hospitalization if "m" rate is based on A/A for blindness (better than LPO) to the "l" rate plus any "k's" to which entitled subject to limitation of footnote b. If "m" 1/2 is payable on this basis, reduce to "l" 1/2 plus any "k's" to which entitled subject to limitation of footnote b. d. If the m or m 1/2 rate is based on "l" for A/A (other than blindness) and an additional 100 percent disability, reduce because of hospitalization to the s rate plus any "k's" to which entitled subject to limitation of footnote b. e. If the "n" rate is based on A/A for blindness (better than LPO) plus additional disabilities, reduce because of hospitalization to the m rate plus any “k's” to which entitled subject to limitation of footnote b. If n 1/2 is being paid on this same basis, reduce to m 1/2 plus "k's" subject to limitation of footnote b. f. Statutory award for arrested TB (formerly 38 U. S. C. 1114(q), eliminated by PL 90-493), for compensable evaluation first established after August 19, 1968. (38 CFR 3.350(g)) g. If the veteran is entitled to any “k's” while hospitalized, the rating must show the hospitalization SMC code to justify the rate payable (e.g., veteran rated under SMC 5l hospitalized with one k in addition to the (l + A&A) rating would be rated under SMC 25 (M + K) while hospitalized). The additional "k's" payable during hospitalization are subject to the limitations of footnote b. h. Prior to December 1, 1986, the rate for "t" was payable in addition to the basic compensation rate only when the combined degree was at least 40 percent but not more than 90 percent and the 100 percent rate was not being paid based on individual unemployability, hospitalization, etc.

XII(12/2004)-2 September 29, 2006 M21-1, Part I Change 51 Appendix B

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 12/1/02 12/1/03 12/1/04

$588 $600 $616

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

*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.) XIV-1