The Department of Veterans Affairs (VA) has announced a significant change to its survivor benefits program, aimed at expediting claims processing for veteran survivors. Effective February 23, 2024, the new rule is designed to ensure faster decisions and quicker financial support for claimants of Dependency and Indemnity Compensation (DIC) and Survivors Pension.
Under the previous system, the VA required separate reviews for each claim, leading to delays in processing. The updated framework allows the VA to provide the higher of the two benefits—typically the DIC—without the need to wait for the complete processing of the lesser benefit. This streamlining is expected to significantly reduce wait times for survivors.
Doug Collins, Secretary of the VA, emphasized the importance of this change, stating, “This common-sense change streamlines the survivors’ claims process, reduces administrative burdens, and delivers quicker decisions to beneficiaries during challenging times.” The revised approach aims to alleviate the stress associated with navigating the VA’s complex system during periods of grief.
Key Changes to Survivor Benefits
The new rule introduces specific guidelines for claimants. In most cases, if a surviving spouse or child is eligible for both DIC and Survivors Pension, the VA will issue payment for the higher benefit while delaying the processing of the lesser one. There is an exception for surviving spouses who are without dependents and reside in a nursing home while either applying for or receiving Medicaid. In such cases, the Survivors Pension will be awarded instead of the DIC.
If a surviving spouse transitions out of Medicaid-covered nursing home care, DIC benefits may become effective retroactively to the date when Medicaid coverage ended, provided a claim is submitted within one year. Conversely, should a spouse receiving DIC enter a nursing home and qualify for Survivors Pension, the pension can begin on the first day of the month following the cessation of DIC payments, again contingent on filing a claim within one year.
The VA has established a hotline for survivors seeking guidance, which can be reached at 800-827-1000, or they can reach out via email to the Office of Media Relations at [email protected].
Understanding DIC and Survivors Pension
The VA defines DIC as a tax-free monthly benefit available to eligible surviving spouses, children, and parents of service members who died while on active duty or veterans whose deaths were linked to service-related conditions. On the other hand, the Survivors Pension offers tax-free monthly payments to qualifying surviving spouses and unmarried dependent children of wartime veterans, contingent upon meeting specific income and net-worth criteria.
This regulatory change is part of a broader initiative initiated in 2025 to reform survivor benefits. The VA has adopted a “three-pronged approach” to eliminate barriers in the application process, which includes relocating the Office of Survivors Assistance under the VA Secretary’s oversight, establishing a specialized outreach team to assist survivors, and identifying areas for automation to expedite claims.
Collins reiterated the need for a more efficient system, stating, “The last thing survivors need in their time of grief is frustrating red tape and bureaucracy. That’s why we are creating a better system to more quickly and effectively provide survivors the services, support, and compassion they’ve earned.”
This new rule represents a significant step forward in improving the efficiency of the VA’s benefits process, ultimately aiming to provide timely support to those who have sacrificed for their country.
