Smc V/s 100% Benefits?

[gwvet90]

Just wondering if you end up getting a lower rating....... like 70% but also get SMC like L ...... I see that monthly you would get more money than if you were rated 100% = but what about the extra benefits? A lot of nice benefits for 100% = like college, state parks, property taxes, etc...... Do you get those same things with lower rating but also SMC?

Edited August 20, 2006 by gwvet90

[Rich T]

GWV,

You don't get 70% + SMC "L". The only SMC that is added to any rating is "K", all other SMC ratings are paid instead of regular monthly compensation. The "K" award is allowed for any rating from 0% to 100%. You may collect up to 3 "K"" awards at any one time. All other SMC's require at lease 100%. "K" may be added to any other SMC up to "N 1/2 +3 K". You are not allowed to add "K" awards to "O", "R1" and "R2" ratings.

[shag]

GWV,

You don't get 70% + SMC "L". The only SMC that is added to any rating is "K", all other SMC ratings are paid instead of regular monthly compensation. The "K" award is allowed for any rating from 0% to 100%. You may collect up to 3 "K"" awards at any one time. All other SMC's require at lease 100%. "K" may be added to any other SMC up to "N 1/2 +3 K". You are not allowed to add "K" awards to "O", "R1" and "R2" ratings.

YO Boats....Where, do tell, did you get information that says SMC ratings are paid "instead of"? The only thing I have ever seen, and I have reviewed tons of literature on the subject, is SMC ratings are "in addition to". Please refernce your quote as to WHERE you found that information. You may email me at scribe33@sbcglobal.net. As a matter of by the way, I truly hope you will because I would like to review it. That may help me understand some things.

[shag]

GWV,

You don't get 70% + SMC "L". The only SMC that is added to any rating is "K", all other SMC ratings are paid instead of regular monthly compensation. The "K" award is allowed for any rating from 0% to 100%. You may collect up to 3 "K"" awards at any one time. All other SMC's require at lease 100%. "K" may be added to any other SMC up to "N 1/2 +3 K". You are not allowed to add "K" awards to "O", "R1" and "R2" ratings.

where did you see this? I have NEVER seen this information.

[Ricky]

This is from the VA web site:

Special Monthly Compensation (SMC) is a rate paid in addition to (i.e., SMC (K)) or in place of 0% to 100% combined degree compensation. To qualify, a veteran must be disabled beyond a combined degree percentage or due to special circumstances (i.e., aid and attendance, loss of use of one hand, etc.). SMCs are referred to by the letters (K) through (R.2). These alphabetic designations follow the paragraph numbering system in 38 U.S.C. §1114 (also see references to that in 38 CFR §3.350 below).

As it reads K is the only award that is paid "in addition to", all others are paid in place of. If you look at the rate tables you will see that for a vet alone the 100 percent rate is 2527.00. Now look at the SMC rates for a vet alone who is authorized a SMC of L. You will see the rate is 3145.00. Therefore, the vet will draw the higher rate of 3145.00 which means the SMC (other than K) is paid in lieu of.

I surely hope that you did not think the vet would draw his 100 percent at 2527.00 and then in "addition to" the 3145.00. That would be a total monthly compsentation payment of 5672.00. Jez, the VA is actually a very good disability system once you break that initial claims hurdle but they ain't stupid. Summary SMC K is paid in addition to.....all others are paid in lieu of (as long as they exceed the regular monthly comp payment - veteran always gets the higher of the two).

Now I guess one could break it down this way. Vet gets his regular monthly comp payment PLUS the difference between regular monthly comp and the total SMC - that would be "in addition to" if you looked at it this way. 3145.00 -2527= 618.00 --- so the vet would get his 2527.00+618.00 SMC which equals 3145.00. See vet is getting his normal payment and in addition to that he is getting 618.00 SCM. Long way around the cherry tree but it meets you definition. Just go the short route as the VA has published and say if qualified he gets the higher amount in lieu of normal compensation!!!

Edited March 8, 2008 by Ricky

[shag]

This is from the VA web site:

Special Monthly Compensation (SMC) is a rate paid in addition to (i.e., SMC (K)) or in place of 0% to 100% combined degree compensation. To qualify, a veteran must be disabled beyond a combined degree percentage or due to special circumstances (i.e., aid and attendance, loss of use of one hand, etc.). SMCs are referred to by the letters (K) through (R.2). These alphabetic designations follow the paragraph numbering system in 38 U.S.C. §1114 (also see references to that in 38 CFR §3.350 below).

As it reads K is the only award that is paid "in addition to", all others are paid in place of. If you look at the rate tables you will see that for a vet alone the 100 percent rate is 2527.00. Now look at the SMC rates for a vet alone who is authorized a SMC of L. You will see the rate is 3145.00. Therefore, the vet will draw the higher rate of 3145.00 which means the SMC (other than K) is paid in lieu of.

I surely hope that you did not think the vet would draw his 100 percent at 2527.00 and then in "addition to" the 3145.00. That would be a total monthly compsentation payment of 5672.00. Jez, the VA is actually a very good disability system once you break that initial claims hurdle but they ain't stupid. Summary SMC K is paid in addition to.....all others are paid in lieu of (as long as they exceed the regular monthly comp payment - veteran always gets the higher of the two).

Now I guess one could break it down this way. Vet gets his regular monthly comp payment PLUS the difference between regular monthly comp and the total SMC - that would be "in addition to" if you looked at it this way. 3145.00 -2527= 618.00 --- so the vet would get his 2527.00+618.00 SMC which equals 3145.00. See vet is getting his normal payment and in addition to that he is getting 618.00 SCM. Long way around the cherry tree but it meets you definition. Just go the short route as the VA has published and say if qualified he gets the higher amount in lieu of normal compensation!!!

Commonly known as VOODOO Economics. I saw that on the VA site, but let me assure you that is the only place in the VA system you will see that line. The only exception is where 38cfr 1114 is explaining the k benefit. Look at the paragraphs and think English 101. Listen, I am not attempting to put a craw in your jeans, but there is nowhere you can show me that the computation is done in that manner. In fact, this is what the GAO reported to the President of the United States. Also, I have included a study done for the VA. Please, Please, Please send me comments on this. scribe33@sbcglobal.net

GAO Report - http://www.gao.gov/htext/d064.html

Disability compensation benefits for permanent total disability:

Among the programs we reviewed that provide disability compensation

benefits, all provide greater benefits for permanent total disability

than for permanent partial disability.[Footnote 38] For military

veterans, the monthly payment for total disability is increased

substantially over the amounts available for partial disabilities. For

instance, the $2,299 monthly payment in 2005 for a 100 percent

disability rating is over $900 per month more than the payment for a 90

percent disability rating (see earlier table 2). In addition, VA

provides an enhanced set of compensation payments for certain severe

injuries above and beyond the compensation provided for permanent total

disability with a 100 percent rating. These higher special monthly

compensation (SMC) payments are for military veterans who sustain

particularly severe injuries, such as amputations, blindness, or other

loss of use of organs and extremities. As described in table 9, the SMC

rates are designed to account for attendant care or other special needs

deriving from the disability.

Table 9: Basic Total and SMC Rates for VA Disability in 2005:

Basic Total Disability Compensation Rate: Disability rating: 100%;

Monthly payment: $2,299.

SMC Rate Category Description: SMC-L: Loss of use of more than one

extremity (hand or foot), blindness, permanently bedridden, or in need

of regular aid and attendance;

Monthly payment: $2,860.

SMC Rate Category Description: SMC-M: Loss of use of extremities (hand

or foot) with complications, or more severe blindness, rendering need

for regular aid and attendance;

Monthly payment: $3,155.

SMC Rate Category Description: SMC-N: Loss of use of extremities (arms

or legs) and unable to use prostheses, or even more severe blindness;

Monthly payment: $3,590.

SMC Rate Category Description: SMC-O/P: More severe injuries, or

multiple injuries each entitled to special compensation;

Monthly payment: $4,012.

SMC Rate Category Description: SMC-R.1: Any injury entitled to special

compensation in categories SMC- N or SMC-O/P and in need of regular aid

and attendance;

Monthly payment: $5,734.

SMC Rate Category Description: SMC-R.2: Any injury entitled to special

compensation in categories SMC- N or SMC-O/P and in need of a higher

level of care;

Monthly payment: $6,576.

SMC Rate Category Description: SMC-S: Multiple injuries, one rated at

100% plus another rated at 60% or more, or injuries causing the veteran

to be permanently housebound;

Monthly payment: $2,573.

Source: Department of Veterans Affairs.

Note: Plus, SMC-K provides for an added $84 for each loss due to

certain types of injuries (such as anatomical loss of use of certain

organs or extremities), up to a total maximum monthly payment of

$4,012, not including dependents. Added increments are also provided

for each dependent if the disability is rated 30% or more (with the

amount of the increment varying by level of injury and type of

dependent).

How is the SMC computed? One argument with VA is that the Congress would not give authority for each person handling a claim to arbitrarily assign an amount to SMC. The rate is and has always been set in statute extending back to 1925. Now considering that the system, according to the experts in this, has not been altered in its essence (i.e. there is the schedular system, the (added) Special Monthly Compensation system, and what has now become an SMC but is the A&A/Housebound Rate.). For instance, there is there is a specific amount provided by the Schedular Rate Table (the 0 - 100% scale) for each 10 percent increment of disability. The same holds true for the Special Monthly Compensation Rate Table. Each sub-paragraph (lettered K-S) has a specific amount of compensation assigned to it. Now, the problem is this. VA reps seem to be trained to subtract the schedular rate from the SMC rate in order to come at the amount of SMC. After MUCH research, it is impossible to find where that formula might be found. What can be found is this from the VA 2004 Legislative Study of the Comp System. The study was done for

VA Office of Policy, Planning and, Preparedness

"Benefit Amounts and Disability Rating Schedules

Over the years, one of the best indicators of the intent of Congress regarding the purpose of disability compensation has been how it sets compensation. The following section shows how compensation rates for specific disability percentage ratings have changed over time.

In August 1939, Congress published a rating schedule that was to become the basis for future increases in the rate of compensation to disabled veterans (Pub. L. No. 76-257). One of the most striking features of this schedule was its perfect linearity, beginning at $7.50 per month for a veteran with a 10% disability, increasing by $7.50 for each additional 10 percent, and topping out at $75 per month for a 100% disability rating.

Even though basically linear, certain kinds of disabilities received additional compensation. For the loss of the use of an eye, foot, or hand, monthly compensation was $18.75 per month. For loss of the use of both hands, both feet, or some combination thereof and in need of “regular aid and attendance,�� the monthly amount was $112.50. At the high end, for severe disability, monthly compensation was $187.50.

Although for losses such as those indicated, there were increases in compensation, as shown in Figure 4, the basic linear model persisted until 1957. Beginning in 1957, Congress introduced differentiation for veterans who were 100% disabled. This may be a response to the Bradley Commission report, which showed, among other things, that veterans’ median

annual earnings were substantially lower for those rated at 100% disabled."

Thus, it would seem that once the 100% schedular rate has been reached, (the compensation table does not convert, nor does it disappear, rather it becomes a given). Then, the Special Monthly Compensation is added to that (100% schedular) by the specific amount stipulated by the SMC letter designation.

To further expound on this. When looking at the way the rate tables were set up initially, it is not hard to notice that the schedular scale was and is separate from the SMC scale. For instance, to get to the $187.50 amount mentioned earlier, the 100% schedular rate of $75.00 was added to the Special Monthly Compensation amount $112.50. What follows is another quote from the same study:

"Congress could have built these exceptions into the rating schedule itself but did not. For example, if losing the use of an eye, hand, or foot is to be compensated an additional amount per month, one approach would be to build the additional compensation into the rating itself or similarly specify that a given disability rating be increased by 20 or 30 percentage points to achieve the desired level of compensation. For reasons not evident in the legislation nor in testimony and reports reviewed, Congress instead chose to provide

explicit enhancements above and beyond the percentage disability schedule. Although Congress did not state it directly, it is reasonable to infer that Congress’ intent was to compensate for loss of quality of life."

What say ye

[shag]

Commonly known as VOODOO Economics. I saw that on the VA site, but let me assure you that is the only place in the VA system you will see that line. The only exception is where 38cfr 1114 is explaining the k benefit. Look at the paragraphs and think English 101. Listen, I am not attempting to put a craw in your jeans, but there is nowhere you can show me that the computation is done in that manner. In fact, this is what the GAO reported to the President of the United States. Also, I have included a study done for the VA. Please, Please, Please send me comments on this. scribe33@sbcglobal.net

GAO Report - http://www.gao.gov/htext/d064.html

Disability compensation benefits for permanent total disability:

Among the programs we reviewed that provide disability compensation

benefits, all provide greater benefits for permanent total disability

than for permanent partial disability.[Footnote 38] For military

veterans, the monthly payment for total disability is increased

substantially over the amounts available for partial disabilities. For

instance, the $2,299 monthly payment in 2005 for a 100 percent

disability rating is over $900 per month more than the payment for a 90

percent disability rating (see earlier table 2). In addition, VA

provides an enhanced set of compensation payments for certain severe

injuries above and beyond the compensation provided for permanent total

disability with a 100 percent rating. These higher special monthly

compensation (SMC) payments are for military veterans who sustain

particularly severe injuries, such as amputations, blindness, or other

loss of use of organs and extremities. As described in table 9, the SMC

rates are designed to account for attendant care or other special needs

deriving from the disability.

Table 9: Basic Total and SMC Rates for VA Disability in 2005:

Basic Total Disability Compensation Rate: Disability rating: 100%;

Monthly payment: $2,299.

SMC Rate Category Description: SMC-L: Loss of use of more than one

extremity (hand or foot), blindness, permanently bedridden, or in need

of regular aid and attendance;

Monthly payment: $2,860.

SMC Rate Category Description: SMC-M: Loss of use of extremities (hand

or foot) with complications, or more severe blindness, rendering need

for regular aid and attendance;

Monthly payment: $3,155.

SMC Rate Category Description: SMC-N: Loss of use of extremities (arms

or legs) and unable to use prostheses, or even more severe blindness;

Monthly payment: $3,590.

SMC Rate Category Description: SMC-O/P: More severe injuries, or

multiple injuries each entitled to special compensation;

Monthly payment: $4,012.

SMC Rate Category Description: SMC-R.1: Any injury entitled to special

compensation in categories SMC- N or SMC-O/P and in need of regular aid

and attendance;

Monthly payment: $5,734.

SMC Rate Category Description: SMC-R.2: Any injury entitled to special

compensation in categories SMC- N or SMC-O/P and in need of a higher

level of care;

Monthly payment: $6,576.

SMC Rate Category Description: SMC-S: Multiple injuries, one rated at

100% plus another rated at 60% or more, or injuries causing the veteran

to be permanently housebound;

Monthly payment: $2,573.

Source: Department of Veterans Affairs.

Note: Plus, SMC-K provides for an added $84 for each loss due to

certain types of injuries (such as anatomical loss of use of certain

organs or extremities), up to a total maximum monthly payment of

$4,012, not including dependents. Added increments are also provided

for each dependent if the disability is rated 30% or more (with the

amount of the increment varying by level of injury and type of

dependent).

How is the SMC computed? One argument with VA is that the Congress would not give authority for each person handling a claim to arbitrarily assign an amount to SMC. The rate is and has always been set in statute extending back to 1925. Now considering that the system, according to the experts in this, has not been altered in its essence (i.e. there is the schedular system, the (added) Special Monthly Compensation system, and what has now become an SMC but is the A&A/Housebound Rate.). For instance, there is there is a specific amount provided by the Schedular Rate Table (the 0 - 100% scale) for each 10 percent increment of disability. The same holds true for the Special Monthly Compensation Rate Table. Each sub-paragraph (lettered K-S) has a specific amount of compensation assigned to it. Now, the problem is this. VA reps seem to be trained to subtract the schedular rate from the SMC rate in order to come at the amount of SMC. After MUCH research, it is impossible to find where that formula might be found. What can be found is this from the VA 2004 Legislative Study of the Comp System. The study was done for

VA Office of Policy, Planning and, Preparedness

"Benefit Amounts and Disability Rating Schedules

Over the years, one of the best indicators of the intent of Congress regarding the purpose of disability compensation has been how it sets compensation. The following section shows how compensation rates for specific disability percentage ratings have changed over time.

In August 1939, Congress published a rating schedule that was to become the basis for future increases in the rate of compensation to disabled veterans (Pub. L. No. 76-257). One of the most striking features of this schedule was its perfect linearity, beginning at $7.50 per month for a veteran with a 10% disability, increasing by $7.50 for each additional 10 percent, and topping out at $75 per month for a 100% disability rating.

Even though basically linear, certain kinds of disabilities received additional compensation. For the loss of the use of an eye, foot, or hand, monthly compensation was $18.75 per month. For loss of the use of both hands, both feet, or some combination thereof and in need of "regular aid and attendance,�� the monthly amount was $112.50. At the high end, for severe disability, monthly compensation was $187.50.

Although for losses such as those indicated, there were increases in compensation, as shown in Figure 4, the basic linear model persisted until 1957. Beginning in 1957, Congress introduced differentiation for veterans who were 100% disabled. This may be a response to the Bradley Commission report, which showed, among other things, that veterans' median

annual earnings were substantially lower for those rated at 100% disabled."

Thus, it would seem that once the 100% schedular rate has been reached, (the compensation table does not convert, nor does it disappear, rather it becomes a given). Then, the Special Monthly Compensation is added to that (100% schedular) by the specific amount stipulated by the SMC letter designation.

To further expound on this. When looking at the way the rate tables were set up initially, it is not hard to notice that the schedular scale was and is separate from the SMC scale. For instance, to get to the $187.50 amount mentioned earlier, the 100% schedular rate of $75.00 was added to the Special Monthly Compensation amount $112.50. What follows is another quote from the same study:

"Congress could have built these exceptions into the rating schedule itself but did not. For example, if losing the use of an eye, hand, or foot is to be compensated an additional amount per month, one approach would be to build the additional compensation into the rating itself or similarly specify that a given disability rating be increased by 20 or 30 percentage points to achieve the desired level of compensation. For reasons not evident in the legislation nor in testimony and reports reviewed, Congress instead chose to provide

explicit enhancements above and beyond the percentage disability schedule. Although Congress did not state it directly, it is reasonable to infer that Congress' intent was to compensate for loss of quality of life."

What say ye

"Laws passed by Congress cannot achieve their desired result unless those who are intended to benefit from them are made aware of their existence." The Honorable Shelley Berkley 2005.