M21-1 Manual / Part X, Subpart i, Chapter 4, Section D
Awards and Payments for Benefits Due to Philippine Service
M21-1, Part X, Subpart i, Chapter 4, Section D
Overview
In This Section | | This section contains the following topics:| Topic | Topic Name |
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| 1 | Payment of Parents’ Dependency and Indemnity Compensation (DIC) in Philippine Cases | | 2 | Payment of Compensation at a Combined Full-Dollar and Half-Dollar Rate in Philippine Cases | | 3 | General Requirements for Payment of Benefits at the Full-Dollar Rate Based on Residency in the U.S. | | 4 | Payment of Compensation and DIC at the Full-Dollar Rate Based on U.S. Residency | | 5 | Payment of Burial Benefits at the Full-Dollar Rate Based on U.S. Residency |
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1. Payment of Parents’ DIC in Philippine Cases
Introduction | | This topic contains information on the payment of Parents’ DIC in Philippine cases, including - applying the income provisions of 38 CFR 3.251, and
- preparing awards of Parents’ DIC.
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X.i.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 - payment of benefits at the half-dollar rate
- payment in a combination of half-dollar and full-dollar rates
- determining the amounts payable at the half-dollar and full-dollar rates
- example 1 for determining the half-dollar and full-dollar rates
- example 2 for determining the half-dollar and full-dollar rates, and
- computing the total amount payable and award input.
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Change Date | | January 8, 2025 |
X.i.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. |
X.i.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, and compensation will be paid 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 U.S. residency, see- M21-1, Part X, Subpart i, 4.D.3
- M21-1, Part X, Subpart i, 4.D.4
- PL 106-377, and
- PL 108-183.
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X.i.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- M21-1, Part X, Subpart i, 4.D.2.d, and
- M21-1, Part X, Subpart i, 4.D.2.e.
| Step | Method 1 | Method 2 |
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| 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. |
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X.i.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 |
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| $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). |
X.i.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 |
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| $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). |
X.i.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 using the method that was more beneficial to the Veteran, per M21-1, Part X, Subpart i, 4.D.2.c.Note: Decision notices can only be completed in the Personal Computer Generated Letters application.| Step | Action |
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| 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 and dependents.
| | 2 | Determine the amount due for the combined evaluation for the service-connected 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 the Veterans Benefits Management System – Awards (VBMS-A), see VBMS-Awards User Guide. |
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 obtaining- proof of U.S. residency, and
- evidence of
- U.S. natural-born citizenship
- naturalized citizenship, and
- permanent resident alien status.
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Change Date | | February 5, 2016 |
X.i.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 Veteran who died while outside of the U.S. for less than 61 consecutive days will be considered to have been residing in the U.S. on the date of death.
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X.i.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. |
X.i.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.
Reference: For more information on evidence of naturalized citizenship, see |
X.i.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 - eligibility requirements for
- payment at the full-dollar rate, and
- DIC
- specific residency requirements
- requirement for reporting changes in residency or citizenship status
- effective date for payment of
- compensation at the full-dollar rate in running awards, and
- DIC at the full-dollar rate in running awards
- effective dates for payment at the full-dollar rate in initial awards of compensation or DIC, and
- when to
- reduce benefits to the half-dollar rate, and
- restore benefits to the full-dollar rate.
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X.i.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 X, Subpart i, 4.A.2 and B. |
X.i.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 X, Subpart i, 4.A.2 and B. |
X.i.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 reasons for failing 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 does not 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.
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X.i.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
- annually verify that residency and citizenship/permanent alien status requirements in 38 CFR 3.42 are met.
Note: VA Form Letter (FL) 21-914, Residency Verification Report (RVR)-Veterans and Survivors, is used for annual verification of eligibility. |
X.i.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 of 38 CFR 3.114(a) applies to the effective date of an award of benefits at the full-dollar rate.
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X.i.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.
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X.i.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 service connection 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.
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X.i.4.D.4.h. 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 … | |
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| 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 183rd day of the absence. Reference: For more information on the requirements for U.S. residency, see M21-1, Part X, Subpart i, 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, see M21-1, Part II, Subpart i, 2.C.6. | | 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. |
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X.i.4.D.4.i. 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 |
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- 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 under 38 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 absence from the U.S. on October 14, 2001. Evidence received on March 3, 2002, shows the Veteran 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 from the U.S. on April 3, 2013. Evidence received on March 3, 2014, shows the Veteran 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 61st day of absence from the U.S. on November 7, 2001. Evidence received on January 14, 2003, shows the spouse 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, for failure to return VA Form Letter (FL) 21-914 mailed in January 2002. Evidence received on August 15, 2002, shows that all eligibility requirements for 2001 were met.Result: Restore benefits to the full-dollar rate effective May 1, 2002. |
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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 - eligibility requirements under
- PL 106-419, and
- PL 108-183
- determining pension eligibility
- obtaining pension eligibility information, and
- need to develop for further disability, income, or dependency information.
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Change Date | | February 7, 2022 |
X.i.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. |
X.i.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.
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X.i.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 the Veteran’s surviving spouse, if applicable, and
- names, addresses, and ages of the Veteran’s children, if applicable.
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X.i.4.D.5.d. Obtaining Pension Eligibility Information | | To obtain the Veteran’s pension eligibility information, either |
X.i.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 at the aid and attendance 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.
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Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part X, Subpart i, Chapter 4, Section D (U.S. government work, reproduced for reference). Browse all sections →