38 U.S.C. § 5120 — Payment of benefits; delivery

Page 1048 TITLE 38—VETERANS’ BENEFITS § 5120 section (a) [amending this section] shall apply to appli- cations first made under section 3513 of title 38, United States Code, that— ‘‘(1) are received on or after the date of the enact- ment of this Act [Nov. 1, 2000]; or ‘‘(2) on the date of the enactment of this Act, are pending (A) with the Secretary of Veterans Affairs, or (B) exhaustion of available administrative and judi- cial remedies.’’ SUBCHAPTER III—PAYMENT OF BENEFITS § 5120. Payment of benefits; delivery (a) Monetary benefits under laws administered by the Secretary shall be paid by checks drawn, pursuant to certification by the Secretary, in such form as to protect the United States against loss, and payable by the Treasurer of the United States. Such checks shall be payable without separate vouchers or receipts except in any case in which the Secretary may consider a voucher necessary for the protection of the Gov- ernment. Such checks shall be transmitted by mail to the payee thereof at the payee’s last known address and, if the payee has moved and filed a regular change of address notice with the United States Postal Service, shall be forwarded to the payee. The envelope or cover of each such checks shall bear on the face thereof the fol- lowing notice: ‘‘POSTMASTER: PLEASE FOR- WARD if addressee has moved and filed a reg- ular change-of-address notice. If addressee is de- ceased, return the letter with date of death, if known.’’ (b) Postmasters, delivery clerks, letter car- riers, and all other postal employees are prohib- ited from delivering any mail addressed by the United States and containing any such check to any person whomsoever if such person has died or in the case of a surviving spouse, if the postal employee believes that the surviving spouse has remarried (unless the mail is addressed to the surviving spouse in the name the surviving spouse has acquired by the remarriage). The pre- ceding sentence shall apply in the case of checks in payment of benefits other than pension, com- pensation, dependency and indemnity compensa- tion, and insurance, only insofar as the Sec- retary deems it necessary to protect the United States against loss. (c) Whenever mail is not delivered because of the prohibition of subsection (b), such mail shall be returned forthwith by the postmaster with a statement of the reason for so doing, and if be- cause of death or remarriage, the date thereof, if known. Checks returned under this subsection because of death or remarriage shall be can- celed. (d) Notwithstanding subsection (a) of this sec- tion, pursuant to an agreement with the Depart- ment of the Treasury under which the Secretary certifies such benefits for payment, monetary benefits under laws administered by the Sec- retary may be paid other than by check upon the written request of the person to whom such benefits are to be paid, if such noncheck pay- ment is determined by the Secretary to be in the best interest of such payees and the manage- ment of monetary benefits programs by the De- partment. (e) Whenever the first day of any calendar month falls on a Saturday, Sunday, or legal pub- lic holiday (as defined in section 6103 of title 5), the Secretary shall, to the maximum extent practicable, certify benefit payments for such month in such a way that such payments will be delivered by mail, or transmitted for credit to the payee’s account pursuant to subsection (d) of this section, on the Friday immediately pre- ceding such Saturday or Sunday, or in the case of a legal holiday, the weekday (other than Sat- urday) immediately preceding such legal public holiday, notwithstanding that such delivery or transmission of such payments is made in the same calendar month for which such payments are issued. (f)(1) In the case of a payee who does not have a mailing address, payments of monetary bene- fits under laws administered by the Secretary shall be delivered under an appropriate method prescribed pursuant to paragraph (2) of this sub- section. (2) The Secretary shall prescribe an appro- priate method or methods for the delivery of payments of monetary benefits under laws ad- ministered by the Secretary in cases described in paragraph (1) of this subsection. To the max- imum extent practicable, such method or meth- ods shall be designed to ensure the delivery of payments in such cases. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1227, § 3020; Pub. L. 95–117, title IV, § 402(a), (b)(1), Oct. 3, 1977, 91 Stat. 1065, 1066; Pub. L. 97–295, § 4(73), Oct. 12, 1982, 96 Stat. 1310; Pub. L. 99–570, title XI, § 11007(a)(2), Oct. 27, 1986, 100 Stat. 3207–170; Pub. L. 99–576, title VII, § 701(65), Oct. 28, 1986, 100 Stat. 3296; renumbered § 5120, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; Pub. L. 102–83, § 4(a)(1), (3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403–405.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–40 renumbered section 3020 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ in two places. Pub. L. 102–83, § 4(a)(1), substituted ‘‘administered by the Secretary’’ for ‘‘administered by the Veterans’ Ad- ministration’’. Subsec. (b). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Subsec. (d). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ in two places. Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’ before period at end. Pub. L. 102–83, § 4(a)(1), substituted ‘‘administered by the Secretary’’ for ‘‘administered by the Veterans’ Ad- ministration’’. Subsec. (e). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Subsec. (f)(1). Pub. L. 102–83, § 4(a)(1), substituted ‘‘ad- ministered by the Secretary’’ for ‘‘administered by the Veterans’ Administration’’. Subsec. (f)(2). Pub. L. 102–83, § 4(b)(1), (2)(E), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’. Pub. L. 102–83, § 4(a)(1), substituted ‘‘administered by the Secretary’’ for ‘‘administered by the Veterans’ Ad- ministration’’. 1986—Subsec. (a). Pub. L. 99–576, § 701(65)(A), sub- stituted ‘‘the payee’s’’ for ‘‘his’’, and ‘‘the payee’’ for ‘‘he’’ and ‘‘him’’ in third sentence. Subsec. (b). Pub. L. 99–576, § 701(65)(B), substituted ‘‘such person’’ for ‘‘he’’, ‘‘surviving spouse’’ for ‘‘widow’’, ‘‘the surviving spouse’’ for ‘‘she’’ in two Page 1049 TITLE 38—VETERANS’ BENEFITS § 5121 places, ‘‘to the surviving spouse’’ for ‘‘to her’’, and ‘‘by the’’ for ‘‘by her’’ in first sentence. Subsec. (f). Pub. L. 99–570 added subsec. (f). 1982—Subsec. (a). Pub. L. 97–295 substituted ‘‘United States Postal Service’’ for ‘‘Post Office Department’’. 1977—Pub. L. 95–117, § 402(b)(1), struck out ‘‘by check’’ after ‘‘benefits’’ in section catchline. Subsecs. (d), (e). Pub. L. 95–117, § 402(a), added subsecs. (d) and (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–570, title XI, § 11007(b)(2), Oct. 27, 1986, 100 Stat. 3207–170, provided that: ‘‘The amendment made by subsection (a)(2) [amending this section] shall take ef- fect with respect to payments made on or after October 1, 1986.’’ EFFECTIVE DATE OF 1977 AMENDMENT Pub. L. 95–117, title IV, § 402(c), Oct. 3, 1977, 91 Stat. 1066, provided that: ‘‘The amendments made by this section [amending this section] shall be effective on the date of enactment of this Act [Oct. 3, 1977].’’ § 5121. Payment of certain accrued benefits upon death of a beneficiary (a) Except as provided in sections 3329 and 3330 of title 31, periodic monetary benefits (other than insurance and servicemen’s indemnity) under laws administered by the Secretary to which an individual was entitled at death under existing ratings or decisions or those based on evidence in the file at date of death (hereinafter in this section and section 5122 of this title re- ferred to as ‘‘accrued benefits’’) and due and un- paid, shall, upon the death of such individual be paid as follows: (1) Upon the death of a person receiving an apportioned share of benefits payable to a vet- eran, all or any part of such benefits to the veteran or to any other dependent or depend- ents of the veteran, as may be determined by the Secretary. (2) Upon the death of a veteran, to the living person first listed below: (A) The veteran’s spouse. (B) The veteran’s children (in equal shares). (C) The veteran’s dependent parents (in equal shares). (3) Upon the death of a surviving spouse or remarried surviving spouse, to the children of the deceased veteran. (4) Upon the death of a child, to the sur- viving children of the veteran who are entitled to death compensation, dependency and in- demnity compensation, or death pension. (5) Upon the death of a child claiming bene- fits under chapter 18 of this title, to the sur- viving parents. (6) In all other cases, only so much of the ac- crued benefits may be paid as may be nec- essary to reimburse the person who bore the expense of last sickness and burial. (b) No part of any accrued benefits shall be used to reimburse any political subdivision of the United States for expenses incurred in the last sickness or burial of any beneficiary. (c) Applications for accrued benefits must be filed within one year after the date of death. If a claimant’s application is incomplete at the time it is originally submitted, the Secretary shall notify the claimant of the evidence nec- essary to complete the application. If such evi- dence is not received within one year from the date of such notification, no accrued benefits may be paid. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1228, § 3021; Pub. L. 92–328, title I, § 105(b), June 30, 1972, 86 Stat. 395; Pub. L. 97–258, § 3(k)(4), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 98–160, title VII, § 703(1), Nov. 21, 1983, 97 Stat. 1010; Pub. L. 99–576, title VII, § 701(66), Oct. 28, 1986, 100 Stat. 3296; renum- bered § 5121 and amended Pub. L. 102–40, title IV, § 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102–83, § 4(a)(1), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 403–405; Pub. L. 104–275, title V, § 507, Oct. 9, 1996, 110 Stat. 3343; Pub. L. 107–14, § 8(a)(16), June 5, 2001, 115 Stat. 35; Pub. L. 108–183, title I, § 104(a)–(c), Dec. 16, 2003, 117 Stat. 2656.) Editorial Notes AMENDMENTS 2003—Subsec. (a). Pub. L. 108–183, § 104(c)(1), struck out comma after ‘‘or decisions’’ in introductory provi- sions. Pub. L. 108–183, § 104(a), struck out ‘‘for a period not to exceed two years’’ after ‘‘unpaid’’ in introductory provisions. Subsec. (a)(1) to (4). Pub. L. 108–183, § 104(c)(2), sub- stituted period for semicolon at end of pars. (1) to (4) and subpars. (A) and (B) of par. (2). Subsec. (a)(5), (6). Pub. L. 108–183, § 104(b), added par. (5) and redesignated former par. (5) as (6). 2001—Subsec. (a). Pub. L. 107–14 substituted ‘‘herein- after’’ for ‘‘hereafter’’ in introductory provisions. 1996—Subsec. (a). Pub. L. 104–275 substituted ‘‘two years’’ for ‘‘one year’’ in introductory provisions. 1991—Pub. L. 102–40, § 402(b)(1), renumbered section 3021 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ in par. (1). Pub. L. 102–83, § 4(a)(1), substituted ‘‘administered by the Secretary’’ for ‘‘administered by the Veterans’ Ad- ministration’’ in introductory provisions. Pub. L. 102–40, § 402(d)(1), substituted ‘‘5122’’ for ‘‘3022’’ in introductory provisions. Subsec. (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’. 1986—Subsec. (a). Pub. L. 99–576, § 701(66)(A), struck out ‘‘his’’ after ‘‘entitled at’’. Subsec. (a)(2)(A) to (C). Pub. L. 99–576, § 701(66)(B), substituted ‘‘The veteran’s’’ for ‘‘His’’. 1983—Subsec. (a)(3). Pub. L. 98–160 substituted ‘‘sur- viving spouse’’ for ‘‘widow’’ in two places. 1982—Subsec. (a). Pub. L. 97–258 substituted ‘‘sections 3329 and 3330 of title 31’’ for ‘‘sections 123–128 of title 31’’. 1972—Subsec. (a). Pub. L. 92–328 struck out reference to section 3203(a)(2)(A) of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2003 AMENDMENT Pub. L. 108–183, title I, § 104(d), Dec. 16, 2003, 117 Stat. 2656, provided that: ‘‘The amendments made by sub- sections (a) and (b) [amending this section] shall apply with respect to deaths occurring on or after the date of the enactment of this Act [Dec. 16, 2003].’’ EFFECTIVE DATE OF 1972 AMENDMENT Amendment by Pub. L. 92–328 effective first day of second calendar month which begins after June 30, 1972, see section 301(a) of Pub. L. 92–328, set out as a note under section 1114 of this title.