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.