Dependency and Indemnity Compensation is a monthly benefit paid to eligible survivors of service members who died in the line of duty or as a result of a service related injury or illness. Under the PACT Act, survivors with previously denied claims may be newly eligible for Dependency and Indemnity Compensation related to toxic exposure. These survivors may reapply for benefits and might receive retroactive payments dating back to the original date of entitlement. The OIG conducted this review to assess the accuracy of VBA’s processing of Dependency and Indemnity Compensation claims reopened under the PACT Act.
The OIG team reviewed two statistical samples of claims that were reopened under the PACT Act after having previously been denied. One set were claims that, after being reprocessed, were again denied; the other set were claims that were granted after being reprocessed. Both sets involved claims completed from January 1 through July 31, 2023. The OIG found that pension management center staff generally denied these claims appropriately; however, there were some inaccuracies when claims were granted. Errors stemmed from unclear guidance on how to reevaluate claims and from a lack of information system enhancements and resulted in a projected $33.1 million in underpayments to survivors. The OIG made three recommendations to correct errors and improve the claims process.
