--- title: "Part XII, Subpart i, Chapter 1, Section A Overview of Dependency and Indemnity Compensation (DIC)" document: "M-21-1" section: "Part XII, Subpart i, Chapter 1, Section A" canonical: "https://veteranai.co/va-regulations/m21-1/xii.i.1.a-overview-of-dependency-and-indemnity-compensation-dic" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000175201/M21-1-Part-XII-Subpart-i-Chapter-1-Section-A-Overview-of-Dependency-and-Indemnity-Compensation-DIC" updated: "2026-09-07T14:38:04.003563Z" --- 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.