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Dependency and Indemnity Compensation Fact Sheet June 2019

8 Jul 2019 6:01 PM | Membership Office (Administrator)

Dependency and Indemnity Compensation Fact Sheet

June 2019 

Dependency and Indemnity Compensation (DIC) is a tax-free monetary benefit administered by the US Department of Veterans Affairs (VA). This benefit is paid monthly, primarily to survivors of service members who died in the line of duty or as a result of service connected causes.

  • DIC is an indemnity payment with the purpose of replacing a portion of the family income lost as a result of the service member/veteran’s death.
  • DIC has been paid in some form to survivors since the Revolutionary War.
  • There are two types of DIC for survivors:
    • Flat Rate DIC: A DIC recipient whose service member/veteran’s death was on or after January 1, 1993 currently receives a flat rate of $1319.04 per month.
    • Rank-Based DIC: A DIC recipient whose service member/veteran’s death was before January 1, 1993, receives DIC based on the rank (pay grade) of the service member. A  DIC recipient whose service member/veteran’s rank was E1-E6 currently receives $1319.04.  A DIC recipient whose veteran’s rank was E7 or above receives a higher amount based on rank.
  • DIC has only been increased by Cost of Living Adjustments (COLAs) since 1993.  
  • The latest statistics from the Veterans Benefit Administration Annual Benefits Report of Fiscal Year 2018, updated as of September 30, 2018, indicates that 422,979 surviving spouses receive DIC. They represent 95.90% of the total DIC recipients.  

On April 5, 2019, Senator Jon Tester (D-MT), Senator Mazie Hirono (D-HI), Senator Richard Blumenthal (D-CT), introduced the Dependency and Indemnity Compensation (DIC)) Improvement Act of 2019: Bill # S. 1047.  This bill will create a fund to pay additional money to those who receive DIC payments so that the total compensation is equal to 55% of a single 100% disabled veteran’s compensation and would bring parity with other federal survivor programs. 

**Because this is a separate fund, it would not affect the SBP-DIC offset.

On June 12, 2019. Rep Jahana Hayes (D-CT) along with Rep Lance Gooden (R-TX), Rep Derek Kilmer (D-WA), Rep James Himes (D-CT), Rep Susan Wild (D-PA), Rep Eleanor Norton-Holmes (D-DC-At Large), introduced the Dependency and Indemnity Compensation (DIC) Improvement Act of 2019: Bill # HR 3221. This bill will create a fund to pay additional money to those who receive DIC payments so that the total compensation is equal to 55% of a single 100% disabled veteran’s compensation and would bring parity with other federal survivor programs. 

**Because this is a separate fund, it would not affect the SBP-DIC offset.

 

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Gold Star Wives is a Congressionally Chartered non-profit service organization that is capable of providing services to the active duty and service-connected military surviving spouses.

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Gold Star Wives of America, Inc. is a non-profit 501(C)4 National Military Widow/Widowers Service Organization chartered by the United States Congress. Donations are not deductible as charitable contributions for federal income tax purposes but may be deductible as trade or business expenses.

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