Some Disabled Veterans may have been underpaid due to errors in an automated benefits calculator the Veterans Affairs’ Office of Inspector General says. The OIG’s report found that one of two versions of a benefits calculator used by claims processors produced incorrect results. VA officials aren’t sure why or for how long the mistakes have been happening.
According to the OIG team’s report, there were two systems used to calculate Special Monthly Compensation (SMC). One was an automated system which as it turned out was unreliable, and the legacy system in which claims processors manually entered codes which is accurate.
The automated system errors resulted in a few overpayments, but more monthly underpayments ranging from $133 to $4,200, according to the OIG watchdogs. The automated system was in use as far back as 2017. The VA stopped using it last fall.
Veterans who have certain disabilities that were caused or aggravated by their military service may be eligible for additional, tax-free benefits under the SMC program. The VA says this additional higher rate benefit is paid in cases of specific disabilities such as the loss of use of a hand or leg…or when there are special circumstances such as the need of aid and attendance by another person or if the Veteran is housebound. This benefit is paid on top of regular disability compensation.
