SPECIAL MONTHLY COMPENSATION

2006 NATIONAL VETERANS SERVICE

ADVANCED TRAINING

WHAT DOES IT ALL MEAN?

• Legal Authority for SMC?

• What are the prerequisite skills?

• What are the basic requirements?

LEGAL AUTHORITY

• 38 United States Code 1114 -- subsections (k) through (s)

• 38 Code of Federal Regulations 3.350

• M21-1 MR, Part 4, Subpart II, Chapter 2, Sections H and I

PREREQUISITE SKILLS

• Use of the Rating Schedule

• Understanding Diagnostic Codes and Criteria

• Combined Evaluations, Bilateral Factor and the Amputation Rule

• Evaluation of Visual Disabilities

• Evaluation of Hearing Disabilities

Basic Requirements

• Evaluations from 0% to 100%

• Temporary ratings under Paragraph 28, 29 and 30

• Ratings under Paragraph 16

DEFINITIONS

• Loss of use of an extremity

• Loss of use of an eye

• Total Deafness

• Independently Rated Disabilities

• Pyramiding

• Housebound

• Aid and Attendance

THE STARTING POINT

• 38 U.S.C. § 1114(k) begins the “Special” Monthly Compensation rates.

• A Veteran need only be Service-Connected for the Right Disability regardless of the Individual Evaluation

THE “K” RATE

• Loss or loss of use of a hand or a foot

• Loss or loss of use of an eye

• Loss or loss of use of a creative organ

• Loss of voice (aphonia)

• Total Deafness in Both Ears

• Loss of use of Both Buttocks

• Loss of Breast Tissue

THE “Q” RATE

• No Longer Being Granted to New Veterans

• Completely Arrested Pulmonary Tuberculosis and Entitle to Receive Compensation as of August 19, 1968

• Rate is $67 per Month and will NOT change

• Inactivity defined in 38 CFR 3.375

THE “L” RATE

• Bilateral Loss or Loss of Use of Both Feet

• Bilateral Loss or Loss of Use of a Hand or a Foot

• Entitlement to Aid and Attendance

• Permanently Bedridden

• Bilateral Defective Vision of 5/200 or less

THE “M” RATE

• Loss or Loss of Use of Both Hands

• Loss or Loss of Use of Both Knees

• Loss or Loss of Use of one Hand (including Elbow Action) and one Foot (Knee Action)

• Bilateral Blindness having Light Perception only

THE “M” RATE (cont)

• Bilateral Blindness (5/200 or less) and requiring Aid and Attendance

• Combinations (Intermediate Rates)

THE “N” RATE

• Loss or Loss of Use of Both Arms above the Elbows

• Loss of Both Legs so near the Hip to prevent a prosthesis

• Loss of One Arm so near the Shoulder to prevent a prosthesis and loss of one Leg so near the Hip to prevent a prosthesis

THE “N” RATE (cont)

• Loss of Both Eyes – No Light Perception

• Combinations (Intermediate Rates)

THE “O” RATE

• Loss of Both Arms so near the Shoulder to prevent a prosthesis

• Entitlement to 2 or more Paragraphs “L” through “N”

• Bilateral Deafness (one ear SC) rated at 60% or more and Bilateral Blindness having 5/200 or less

THE “O” RATE (cont)

• Bilateral Deafness (only one ear SC) rated at 40% or more and Bilateral Blindness having only Light Perception

• Paraplegia with Loss of Anal and Bladder Sphincter Control

• Loss of Use of 2 Extremities plus Helplessness

• Combinations (Intermediate Rates)

THE “R” RATE

• Entitlement to the “O” Rate plus Entitlement to Aid and Attendance

• Higher Level of Care

• Rating of “N ½ plus K”

THE “S” RATE

• Veteran is Permanently Housebound

• Veteran has a Total SC Rating of 100% plus Independently Rated Disabilities of 60% or more

THE “P” RATE

• Intermediate Rates

• Loss or Loss of Use of 3 Extremities = ½ Step

• Independently Rated 50% or Higher = ½ Step

• Independent total 100% = Full Step

EXAMPLE

• Question #1

• Veteran has the following SCDs:– Total SC Bilateral Deafness,– Total Laryngectomy, – Loss of Use of Right Eye

ANSWER

• Answer #1:– Bilateral Deafness = 100% plus “K”– Total Laryngectomy = 100% plus “K”– Loss of Use of One Eye = 40% plus “K”

– 100% plus “S” plus 3 “K”

QUESTION

• Question #2

• Veteran has the following SCDs:– Loss of Use of Both Legs – Below Right and

Above Left– Heart Disease @ 100%

ANSWER

• Answer #2:

• 100% plus “L ½” plus Full Step under “P” = 100% “M ½”

QUESTION #3

• Question #3:

• Veteran has the following SCDs:– Heart Disease rated at 100% plus Entitlement to– Aid and Attendance– Loss of Erective Power

ANSWER

• Answer #3:

• 100% “L” plus “K”

REMEMBER

• Every year, Congress must do Legislation for COLA increases.

• SMC is intended, for the most part, for those veterans who have such a Devastating Disability beyond what is contemplated or can be done in a normal rating.

• All disabilities that have associated an SMC with it are footnoted in the Rating Schedule -- e.g., DCs 6061 through 6071 (38 C.F.R. § 4.84a; page 380)

BE AWARE• Legal to pyramid at the (r) level! (Read 38 C.F.R. §

3.350(h) at pages 248-249.)• Aid and attendance segment is not payable while

hospitalized.• No reduction under “permanently bedridden”.• Ratings have coded section identifying the “hospitalized

rate” and the specific loss or loss of use codes.• Confusion over different types of (l’s).• SMC (k), (q), and (t) are the only SMCs without

necessarily having a 100% disability rating. E.g., DC 7524 on page 406; compare to DC 7626 on page 408.

• Legal to pyramid at the (r) level! (Read 38 C.F.R. § 3.350(h) at pages 248-249.)

• Aid and attendance segment is not payable while hospitalized.

• No reduction under “permanently bedridden”.• Ratings have coded section identifying the “hospitalized

rate” and the specific loss or loss of use codes.• Confusion over different types of (l’s).• SMC (k), (q), and (t) are the only SMCs without

necessarily having a 100% disability rating. E.g., DC 7524 on page 406; compare to DC 7626 on page 408.

• Legal to pyramid at the (r) level! (Read 38 C.F.R. § 3.350(h) at pages 248-249.)

• Aid and attendance segment is not payable while hospitalized.

• No reduction under “permanently bedridden”.• Ratings have coded section identifying the “hospitalized

rate” and the specific loss or loss of use codes.• Confusion over different types of (l’s).• SMC (k), (q), and (t) are the only SMCs without

necessarily having a 100% disability rating. E.g., DC 7524 on page 406; compare to DC 7626 on page 408.

• Legal to pyramid at the (r) level! (Read 38 C.F.R. § 3.350(h) at pages 248-249.)

• Aid and attendance segment is not payable while hospitalized.

• No reduction under “permanently bedridden”.• Ratings have coded section identifying the “hospitalized

rate” and the specific loss or loss of use codes.• Confusion over different types of (l’s).• SMC (k), (q), and (t) are the only SMCs without

necessarily having a 100% disability rating. E.g., DC 7524 on page 406; compare to DC 7626 on page 408.

• Legal to pyramid at the (r) level! (Read 38 C.F.R. § 3.350(h) at pages 248-249.)

• Aid and attendance segment is not payable while hospitalized.

• No reduction under “permanently bedridden”.• Ratings have coded section identifying the “hospitalized

rate” and the specific loss or loss of use codes.• Confusion over different types of (l’s).• SMC (k), (q), and (t) are the only SMCs without

necessarily having a 100% disability rating. E.g., DC 7524 on page 406; compare to DC 7626 on page 408.