Disability Compensation

(This article first appeared in the November/December 2015 issue of The American Postal Worker magazine.)

Disability compensation is a monthly, tax-free benefit paid to veterans because of injuries or diseases that were incurred or were aggravated by military service. Both physical and mental health conditions are included.

Compensation is also payable for post-service disabilities that are considered secondary or presumed related to service-connected disabilities. Certain veterans disabled from VA healthcare may also be eligible to receive this benefit.

The benefit amount is based upon the degree of disability, which is applied in increments of 10, using a graduated scale that spans from 10 to 100 percent. Disability ratings are not conventionally added, e.g. a 60 percent rating that’s combined with a second rating of 20 percent does not equal 80 percent. When multiple disabilities exist, the VA uses a Combined Ratings Table (CRT) to calculate the combined disability rating.

To be eligible for disability compensation, veterans must have been discharged under other than dishonorable conditions and be considered at least 10 percent disabled. The current, monthly basic disability compensation benefit ranges from $133 to $2,907. Although not compensable, ratings of 0 to 9 percent may qualify veterans for healthcare and other VA benefits.

Veterans with a 30 percent or higher combined disability rating can receive an additional allowance for their qualifying dependents. In certain circumstances, a Special Monthly Compensation (SMC) benefit for aid and attendance provided by another person may be payable to veterans with very severe disabilities, a seriously disabled spouse or for a loss of limb(s).

Generally, military retirement pay is reduced by any VA compensation received. Income from Special Separation Benefits (SSB) and Voluntary Separation Incentives (VSI) affects the amount of VA compensation paid.

38 CFR Book C, Schedule for Rating Disabilities (SRD) is used to determine the percentage of disability. The SRD groups medical issues, diagnoses, diagnostic codes, and body parts by category and specifies required symptoms that establish the level of disability, which is generally applied as follows: severe, 60 percent; moderately severe, 40 percent; moderate, 20 percent; and mild, 10 percent. Where two or more diagnostic codes can be applied to one disability, the highest percentage must be chosen.

Percentage ratings represent the average impairment of a veteran’s earning capacity in civil occupations. Therefore, accurate and descriptive medical documentation that explains the limitations of the disabilities are required. Veterans are usually requested to undergo a Compensation & Pension (C&P) medical examination. Failure to cooperate can have a negative impact on benefit eligibility.

The VA is required to help claimants develop evidence to support their claims, provided the claim is found to be reasonably possible. The duty to assist obligates the VA to seek private and government records from and on behalf of the claimant – with the claimant’s authorization, provided the VA was made aware of suggested sources that may contain facts pertinent to the claim. The VA must continue these efforts until it is discovered the records are nonexistent or are unobtainable. It is recommended that veterans and their advocates obtain the records directly to assess whether the information will help or harm the claim.

Another non-adversarial feature of the system is the benefit-of-doubt provision. It requires the favorable adjudication of claims when claim evidence is equally balanced (50/50). Therefore, the Veterans Benefits Administration (VBA) may only deny claims when evidence is found to be more than 50 percent unfavorable.

There is no time limit to apply for service-connected disabilities. However, when claims are filed within one year of discharge, entitlement is established from the date of separation.

Veterans can mail VA Form 21-526EZ, Application for Disability Compensation and Related Compensation Benefits, and any supporting documentation they possess to their nearest VA Regional Office, or they can apply online using eBenefits.

Veterans without Internet access can request the application be mailed to them by calling the VA at 800-827-1000. To learn more, visit www.va.gov/benefits.