When the VA awards compensation benefits, the issues the VA decides are whether the disability is service connected, the rating of the disability, and the effective date of the award. The effective date is a complicated aspect of VA law that contains several nuances and exceptions, but here we will look at a general overview to provide a basic understanding of effective dates. The effective date is the date from which the veteran is entitled to compensation, or the date from when the change in benefits should be paid. The effective date is usually the date the claim was originally filed, but there are several scenarios where this is not the case. We will begin by going over the general rules, and then take a look at some special circumstances and exceptions.
Once you are awarded disability benefits, the VA sends you monthly payments of what you are entitled to for your disability. When you win your claim, you are also entitled to a lump sum payment of retroactive benefits. This payment is all of the money you would have received had you been paid each month since you filed your claim. The date from which you are entitled payment is the effective date. The amount of retroactive benefits is the sum of every month’s payment, starting the first day of the month following the effective date up until the date of payment. You will want the earliest effective date possible because the amount the VA owes depends on how far back the effective date is assigned. The further back the effective date, the more money the VA owes you. To find out more about getting an earlier effective date, click here.
The VA assigns an effective date whenever it makes a decision to award, increase, reduce, suspend, or terminate benefits. Each of these will have different rules for assigning an effective date. When awarding benefits, the effective date is usually going to be the date the claim was filed through the standardized form 526EZ. The general rule is that the effective date is either the date the VA receives the claim or the date that entitlement to the benefit arose, whichever is later.
One example of where the general rule does not apply is when attempting to reopen a claim. This scenario comes up when an original claim is denied and it was not appealed within the required timeframe. In order to pursue the claim, you will have to file to reopen the claim under new and material evidence. When you file to reopen a claim, the effective date is the date the VA receives the claim to reopen, not the date of the original claim. This is why it is so important to be aware of deadlines to appeal decisions. You want to keep the earliest effective date possible and if you miss the deadline, you lose that earlier effective date. For more information on this scenario, click here.
Another scenario with a special rule for effective dates is when you file a claim for an increased rating on an already service connected disability. When increasing an award, the effective date is the date the claim for increase was filed (not the date of the original claim), or the date entitlement to an increase arose, whichever is later. The date of entitlement to an increase means the date the disability increased in severity. Because it may be difficult to determine an exact date for when a disability increases in severity, there is an exception to help calculate the date entitlement arose. If there is ascertainable evidence that the increase in disability occurred within the year prior to the date of the claim for increase, the effective date may date back to one year before the claim for increase was filed. For a more in-depth look at the rules on effective dates for increased ratings, click here.
There are more exceptions to each of these rules, where a veteran may be awarded an effective date earlier than the date they filed their claim. A grant of clear and unmistakable error (CUE), for example, can date the effective date back to earlier claims that were previously denied. There is also an exception for when a claim for compensation is filed within one year after discharge from service, if the disability existed at that time, then the effective date can be assigned as the date after discharge. There are also special rules for certain types of claims, such as TDIU and Agent Orange. Be sure to visit other blog posts, such as this one and this one, for more information on each of the special rules and exceptions.
Author Melanie Franco, Hill & Ponton, P.A. Attorney