M21-1 Manual / Part XII, Subpart i, Chapter 1, Section A

Overview of Dependency and Indemnity Compensation (DIC)

M21-1, Part XII, Subpart i, Chapter 1, Section A

Overview

In This Section

This section contains the topic, “Overview of DIC.”

1. Overview of DIC

Introduction

This topic contains general information on DIC, including

definition of DIC
when the pay grade code is required
basis for pay grade codes
verification of data from a service department, for a deceased Veteran who was receiving retired pay
action to take if
- pay grade data is not of record, and
- payment of DIC is pending verification of pay grade data
when the pay grade code is not required
DIC under 38 U.S.C. 1318
automatic 38 U.S.C. 1318 DIC payments to eligible surviving spouses, and
DIC under 38 U.S.C. 1151.

Change Date

February 11, 2026

XII.i.1.A.1.a. Definition: DIC

Dependency and Indemnity Compensation (DIC) is a monthly payment made
to a surviving spouse, child, or parent because of a service-connected (SC) death that occurred
on or after January 1, 1957 or
before January 1, 1957, if the survivor elects to receive DIC in lieu of Death Compensation, per 38 U.S.C. 1310
to a surviving spouse or child because the Veteran had been rated as totally disabled due to an SC disability prior to their death, typically for at least 10 years, per 38 U.S.C. 1318, or
to a surviving spouse, child, or parent because of death due to Department of Veterans Affairs (VA) medical treatment, per 38 U.S.C. 1151.
Reference: For more information about DIC, see
38 CFR 3.5
38 CFR 3.22
38 CFR 3.358, and
38 CFR 3.702.

XII.i.1.A.1.b. When the Pay Grade Code Is Required

A pay grade code is a required input for all DIC awards to surviving spouses in which the Veteran died before January 1, 1993.If the Veteran died prior to January 1, 1993, DIC is paid to a surviving spouse based on whichever of the following provisions provides the greater benefit
38 U.S.C. 1311(a)(3), which is based on the Veteran’s pay grade, or
38 U.S.C. 1311(a)(1) and 38 U.S.C. 1311(a)(2), which is based on the basic rate of DIC and any additional allowance payable because the Veteran was rated as totally disabled for at least eight continuous years and married to the surviving spouse for the same period of time.
Note: If the Veteran died after December 31, 1992, verification of the pay grade is not required because the surviving spouse’s rate of DIC is not based on the Veteran’s pay grade.

XII.i.1.A.1.c. Basis for Pay Grade Codes

Determine the pay grade of the Veteran as follows:

for a Veteran who died
- in service, their rank as of the date of the Veteran’s death or as of the date of a promotion after death while in a missing status, or
- after service, their rank on the date of last separation from service under conditions other than dishonorable, or
a higher rank held for a period of six months or more meeting the requirements of 38 U.S.C. 1302(d), if applicable.

XII.i.1.A.1.d. Verification of Data From a Service Department, for a Deceased Veteran Who Was Receiving Retired Pay

Requests for verification of pay grade data are not routinely submitted if the evidence of record shows the deceased Veteran was receiving retired pay from a service department. Important: If the Veteran died after December 31, 1992, verification of pay grade data is not required. Notes:
Service departments routinely furnish evidence showing the pay grade for retired personnel.
Pay grade information may also be found on DD Form 214,Certificate of Uniformed Service, or other discharge document.

XII.i.1.A.1.e. Action to Take if Pay Grade Data Is Not of Record

If award action is otherwise in order, but no pay grade data is of record, submit a request code O50 to the National Personnel Records Center in order to obtain the official military personnel file containing the required information.Exception: Do not submit the request if VA has previously submitted and received a response under request codes O50 or O18. Reference: For more information on submitting request code O50 via Service Treatment Record (STR) Assist, see the Veterans Benefits Management System (VBMS) Core User Guide.

XII.i.1.A.1.f. Action to Take if Payment of DIC Is Pending Verification of Pay Grade Data

Use the table below to determine the action to take concerning payment of DIC when receipt of pay grade data is pending.

If …	Then …
the Veteran died before January 1, 1993 there is a reasonable probability that the Veteran’s death is SC, and DIC will be payable to a surviving spouse	initiate a records request to obtain pay grade data before sending the claim to the rating activity.
death is subsequently held to be SC	do not defer award action pending receipt of pay grade data certification award benefits at the minimum DIC rate, if otherwise in order, subject to a possible increase upon receipt of the response to the records request notify the surviving spouse accordingly, and maintain a 60-day control under end product (EP) 290.
DD Form 214 is of record	award DIC at the rate provided for the pay grade shown on the DD Form 214, and do not verify the pay grade unless information in the folder raises doubt there is the possibility of certification of a higher pay grade under 38 U.S.C. 1302(d) based on a prior period of service, or the payee specifically requests verification.
the Veteran died after December 31, 1992	verification of pay grade is not required, and DIC should be awarded at the rates provided under 38 U.S.C. 1311.

Reference: For more information on submitting record requests via STR Assist, see the VBMS Core User Guide.

XII.i.1.A.1.g. When the Pay Grade Code Is Not Required

A verified pay grade code is not required on awards

of DIC to children or parents
of any benefit other than DIC to any beneficiary, or
based on a Veteran’s death after December 31, 1992.

XII.i.1.A.1.h. DIC Under 38 U.S.C. 1318

Consider the issue of entitlement to benefits under 38 U.S.C. 1318 whenever the Veteran had a totally disabling SC condition at the time of death.Important: Use the text below when communicating a favorable finding based on 38 U.S.C. 1318. The text is applicable for original DIC grant decision notices (EP 140 series) where the Veteran met the criteria for 38 U.S.C. 1318.The Veteran was receiving or was entitled to receive, compensation for a service-connected disability, totally disabling, for a continuous period of at least 10 years immediately preceding death; for at least 5 years immediately preceding death since the Veteran's release from active duty; or for a continuous period of not less than one year immediately preceding death, if the Veteran was a former prisoner of war.References: For more information on

favorable findings, see 38 CFR 3.104(c), and
decision notices, see M21-1 Part VI, Subpart i, 1.B.

XII.i.1.A.1.i. Automatic 38 U.S.C. 1318 DIC Payments to Eligible Surviving Spouses

Effective July 7, 2014, VA automatically pays 38 U.S.C. 1318 DIC to an eligible surviving spouse, without a claim, when VA is able to determine eligibility based on evidence of record as of the date of the Veteran's death.A surviving spouse must file a claim for other DIC benefits. Note: The automated payment is triggered by the FIRST NOTICE OF DEATH command and paid to the surviving spouse established on the award at the time of the Veteran’s death.Reference: For more information on automatic burial payments to eligible surviving spouses, see M21-1, Part XI, Subpart iii, 1.A.3.a.

XII.i.1.A.1.j. DIC Under 38 U.S.C. 1151

38 U.S.C. 1151 provides for the payment of DIC for death that is

not the result of the Veteran’s willful misconduct, and

attributable to
- hospital care, medical or surgical treatment, or examination furnished the Veteran under any law administered by the Secretary, either by a VA employee or in a VA facility as defined in 38 U.S.C. 1701(3)(A)
- participation in vocational rehabilitation training under 38 U.S.C. Chapter 31, or
- participation in compensated work therapy.

Award benefits for qualifying death under 38 U.S.C. 1151 in the same manner as if the death was SC.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part XII, Subpart i, Chapter 1, Section A (U.S. government work, reproduced for reference). Browse all sections →