14.6. Benefit Payments
A VA disability compensation and DIC is paid monthly and is non-taxable. Although VA determines whether an award should be granted, the rating value, and the effective date, Congress sets the monetary amount of payments for the rating schedule. In most years, Congress adjusts the payment amounts through a cost-of-living allowance to account for economic inflation, although in some years there are no increases.
Unlike compensation and DIC, VA pension benefits are based on financial need, not medical condition. The application and review process, however, are not very different. VA will review the application based on the laws for pension established by Congress and make an award determination. Claimants receiving a pension award will be notified by letter similar to compensation and DIC awardees.