Parents’ DIC income is calculated on a calendar year basis. If income is e. Adjustments Based on reduced for a particular calendar year, adjust as of the Reductions in Income effective date (for original and reopened awards) beginning of the calendar year, or date from which income was previously counted (when VA applied the rule for initial income counting). If a change in IVAP causes an increase in the monthly rate compared to the rate for the last of the prior calendar year, applies. When does apply, carry forward the December rate for the month of January and pay the increased rate from February 1. f. Example: A sole surviving parent was paid DIC of $207 per effective Situation: Adjustments December 1, 2004, based on IVAP of $4,300 from earnings. At the end of Based on 2005, the parent reported that earnings income stopped effective June 1, 2005. Reductions in The total earned income received during 2005 was $2,100. Income Adjust the award as shown in the table below: Result: Date Rate IVAP Reason 12-01-2004 $207 4300 Previous rate This award line is not Note: required. 02-01-2005 $383 2100 Increased rate effective applies 12-01-2005 $403 2100 Cost-of-living adjustment (COLA) 02-01-2006 $507 0 Income removed; applies g. Time Limit A DIC parent can amend an income report any time within the calendar year to Amend for which income is received or the following calendar year, per . Income Information h. Handling Under , an application for Parents’ DIC filed within one year after Applications renouncement of that benefit is not treated as an original application. Benefits After are payable as if the renouncement had not occurred. Renouncement of Parents’ DIC This precludes the planned renouncement of the benefit prior to receipt of nonrecurring income to avoid having that nonrecurring income used to calculate IVAP.
e. Adjustments Based on Reductions in Income Parents’ DIC income is calculated on a calendar year basis. If income is reduced for a particular calendar year, adjust as of the effective date (for original and reopened awards) beginning of the calendar year, or date from which income was previously counted (when VA applied the rule for initial income counting). If a change in IVAP causes an increase in the monthly rate compared to the rate for the last of the prior calendar year, applies. When does apply, carry forward the December rate for the month of January and pay the increased rate from February 1. f. Example: Adjustments Based on Reductions in Income Situation: A sole surviving parent was paid DIC of $207 per effective December 1, 2004, based on IVAP of $4,300 from earnings. At the end of 2005, the parent reported that earnings income stopped effective June 1, 2005. The total earned income received during 2005 was $2,100. Result: Adjust the award as shown in the table below: Date Rate IVAP Reason 12-01-2004 $207 4300 Previous rate Note: This award line is not required. 02-01-2005 $383 2100 Increased rate effective applies 12-01-2005 $403 2100 Cost-of-living adjustment (COLA) 02-01-2006 $507 0 Income removed; applies g. Time Limit to Amend Income Information A DIC parent can amend an income report any time within the calendar year for which income is received or the following calendar year, per . h. Handling Applications After Renouncement of Parents’ DIC Under , an application for Parents’ DIC filed within one year after renouncement of that benefit is not treated as an original application. Benefits are payable as if the renouncement had not occurred. This precludes the planned renouncement of the benefit prior to receipt of nonrecurring income to avoid having that nonrecurring income used to calculate IVAP.
01-25-16_Key%20Changes-M21-1V_iii_1_SecD.doc.docx