Were you underpaid and don’t even know it? Here’s what every veteran rated for SMC needs to know.
On May 29, 2025, the VA’s own watchdog confirmed it: the Special Monthly Compensation (SMC) calculator built into the VA’s claims system (VBMS-R) didn’t work right—and may have underpaid severely disabled veterans for years. If you’re rated for SMC or believe you should be, keep reading. This one hits close to home.
🧩 What Happened
- The VA uses a built-in calculator in VBMS-R to determine SMC levels.
- The tool often gave incorrect results or failed completely.
- Most of the errors would have resulted in underpayments.
💸 Key Stats:
- Underpayments ranged from $132.74 to $4,170.59/month
- SMC Levels affected: L through O + R2
- VA disabled the faulty calculator in October 2024
📄 View the full VAOIG Report (PDF)
🔎 Real-World Examples
Example 1: Vision Loss Underpaid
A veteran with 5/200 vision in one eye and only light perception in the other qualifies for SMC L½. The calculator said “no SMC warranted.”
Monthly loss: $1,153.65
Example 2: Triple Extremity Loss Ignored
A veteran with loss of use of both feet and one hand should receive SMC M + K. Instead, the system returned an error message and failed to calculate anything.
You may also add a note under these examples reminding veterans that even if they didn’t claim SMC directly, VA is required to consider and award it whenever the medical record supports it (per M21-1, V.ii.3.A).
⚙️ What the VA Did
- 🔧 Disabled the VBMS-R calculator in October 2024
- ✅ Directed raters to use the legacy version
- 🕵️ No evidence of proactive reviews of past claims
- 📅 Promised to complete retesting by July 31, 2025
📌 What You Can Do Now
If your SMC was calculated between 2017–2024, take action:
- 📁 Request your C-File and review SMC codes & paragraphs
- 📖 Compare with 38 CFR § 3.350 & § 3.352
- 🔍 Check legacy calculator vs. VBMS-R if both results are in your record
- 📝 Consider a:
- Supplemental Claim
- Earlier Effective Date request
- CUE (Clear and Unmistakable Error) motion
🧠 How to Audit Your VA Claim Using ChatGPT
Veterans can use ChatGPT to review their VA claims by uploading decision letters, ratings summaries, or C-Files and asking targeted questions like “Was SMC rated correctly?” or “Was the bilateral factor applied?” ChatGPT can help identify missed entitlements, misapplied regulations, and explain complex VA language in plain terms. This is especially helpful when reviewing decisions for possible Clear and Unmistakable Error (CUE) or when preparing a supplemental claim. You can get started by following the step-by-step guide on HadIt.com Veterans.
📣 HadIt’s Take
SMC was created to help our disabled veterans—those who are blind, paralyzed, bedridden, or in need of daily care. This calculator error means many may have been shortchanged without ever knowing it.
If you think something doesn’t look right in your rating, trust your gut. Ask questions. Push back. You may be owed more than you’ve received.
📢 Join the SMC Forum Discussion
🗞️ Update Log
