SPECIAL MONTHLY COMPENSATION

1. SPECIAL MONTHLY COMPENSATION 2006 NATIONAL VETERANS SERVICE ADVANCED TRAINING

2. WHAT DOES IT ALL MEAN? • Legal Authority for SMC? • What are the prerequisite skills? • What are the basic requirements?

3. 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

4. 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

5. Basic Requirements • Evaluations from 0% to 100% • Temporary ratings under Paragraph 28, 29 and 30 • Ratings under Paragraph 16

6. DEFINITIONS • Loss of use of an extremity • Loss of use of an eye • Total Deafness • Independently Rated Disabilities • Pyramiding • Housebound • Aid and Attendance

7. 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

8. 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

9. 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

10. 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

11. 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

12. THE “M” RATE (cont) • Bilateral Blindness (5/200 or less) and requiring Aid and Attendance • Combinations (Intermediate Rates)

13. 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

14. THE “N” RATE (cont) • Loss of Both Eyes – No Light Perception • Combinations (Intermediate Rates)

15. 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

16. 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)

17. THE “R” RATE • Entitlement to the “O” Rate plus Entitlement to Aid and Attendance • Higher Level of Care • Rating of “N ½ plus K”

18. THE “S” RATE • Veteran is Permanently Housebound • Veteran has a Total SC Rating of 100% plus Independently Rated Disabilities of 60% or more

19. 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

20. EXAMPLE • Question #1 • Veteran has the following SCDs: • Total SC Bilateral Deafness, • Total Laryngectomy, • Loss of Use of Right Eye

21. 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”

22. QUESTION • Question #2 • Veteran has the following SCDs: • Loss of Use of Both Legs – Below Right and Above Left • Heart Disease @ 100%

23. ANSWER • Answer #2: • 100% plus “L ½” plus Full Step under “P” = 100% “M ½”

24. QUESTION #3 • Question #3: • Veteran has the following SCDs: • Heart Disease rated at 100% plus Entitlement to • Aid and Attendance • Loss of Erective Power

25. ANSWER • Answer #3: • 100% “L” plus “K”

26. 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)

27. 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.