Special Monthly Compensation (SMC) provides additional tax-free payments above the standard disability compensation rate. SMC compensates for disabilities that are particularly severe or that involve specific functional losses not fully captured by the standard rating schedule.
SMC-K is the most commonly awarded level and provides a fixed additional monthly amount for loss of use or anatomical loss of specific organs or body parts. Common SMC-K awards include loss of use of a creative organ (often granted with erectile dysfunction secondary to diabetes or medications), loss of use of a foot, or loss of use of a hand. SMC-K can be awarded in addition to any other SMC level and can be awarded multiple times if multiple qualifying losses exist.
SMC-L is awarded when a veteran is so disabled as to need regular aid and attendance of another person, or when certain combinations of severe disabilities exist. This provides a substantially higher monthly payment than the standard 100% rate.
SMC-S (housebound) is awarded when a veteran has a single disability rated at 100% and additional separate disabilities with a combined rating of 60% or more. This is often overlooked — if you have a 100% rating for one condition and other conditions combining to 60% or more, you may be entitled to SMC-S automatically.
Higher SMC levels (M, N, O, R) provide escalating compensation for increasingly severe combinations of disabilities, loss of limbs, or the need for higher levels of personal care.
SMC-T provides compensation at a higher rate for veterans who require regular aid and attendance due to residuals of traumatic brain injury.
SMC is frequently under-awarded because raters do not always identify qualifying combinations. Review your ratings and conditions to determine if any SMC level applies.
Note: This article references sections of the VA's M21-1 Adjudication Procedures Manual. The VA periodically reorganizes the M21-1 and section numbers may have changed since this article was written. For the most current section references, visit the VA's public M21-1 Web Automated Reference Material System (WARMS).