Army Secondary Dependency Determination

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Army Secondary Dependency Determination	print page :: email page

Purpose

C1.2. Applicability and Scope

C1.3. Policy

C1.4. Terms

CHAPTER 2 - RESPONSIBILITIES

C2.1. Responsibilities

CHAPTER 3 - DATA BASE ADMINISTRATION

C3.1. Data Base Administration

C3.2. Case File Composition

C3.3. Suspense Management

CHAPTER 4 - DEPENDENCY DETERMINATION FACTORS

C4.1. General Income Information

C4.2. Countable Income

C4.3. Non-Countable Income

C4.4. Unreported Income

C4.5. General Expense Information

C4.6. Household Expenses

C4.7. Outside Hired Services

C4.8. Fair Rental Value Basis

C4.9. When to Obtain Fair Rental Value

C4.10. General Member Contribution Information

C4.11. Items Considered as Member's Contribution

C4.12. Items Not Considered as Member's Contribution

CHAPTER 5 - UNIQUE REQUIREMENTS OF DEPENDENT TYPES

C5.1. Acceptability Period for Dependency Statements

C5.2. Parents

C5.3. Unmarried Illegitimate Children Under Age 21

C5.4. Ward of the Court

C5.5. College Students Over the Age of 21

C5.6 Incapacitated Children Over Age of 21

C5.7 Common Law Spouse

C1. CHAPTER 1

GENERAL INFORMATION

C1.1. PURPOSE. This instruction contains procedures and instructions for processing Secondary dependency determinations for basic allowance for housing (BAH), travel allowance, and Uniformed Services Identification and Privilege (USIP) cards. Under 37 U.S.C. 401, a member of the Armed Forces who is entitled to basic pay is entitled to BAH when the Government does not provide adequate family quarters for the member and the member's dependents. Specific categories of dependents are required by law to be, in fact, dependent upon the member. Dependency determinations are processed by the Dependency Determination Branch for the secondary dependents of military members, including active duty, retired, deceased, National Guard, and Reserve. If a member has one or more dependents, the member may be entitled to BAH without dependents and BAH differential (BAH DIFF) when monthly child support is paid. BAH DIFF entitlement is based on child support only. Once determination of the Secondary Dependent(s) has been established, BAH, and/or USIP card, and/or travel allowance can be authorized depending on the member request.

C1.2. APPLICABILITY AND SCOPE.

C1.3. POLICY . Overall guidance of Secondary Dependency Determinations is listed in the DoDFMR, Volume 7a, Chapter 26 .

C1.4. TERMS.

DD Forms 137-3 , 137-4 , 137-5 , 137-6 , and 137-7 , a dependency statement, are all required to evaluate the income and expenses of the dependent and the contributions of the member to initially establish dependency. DD Form 137 is used to establish dependency of Primary Dependents. USAFAC Form 5089-R used for Common Law Marriage.

C1.4.4. Eligible Dependents. Eligible dependents for BAH are outlined in the Department of Defense Financial Management Regulation (DODFMR) Vol.7A . Dependents eligible for travel allowance are outlined in the Joint Federal Travel Regulations (JFTR). Eligible dependents for Uniformed Services Identification and Privilege (USIP) cards are outlined in AFI 36-3026 Identification Cards for Members of the Uniformed Services, their Eligible Family Members, and other Eligible Personnel. This is a joint service regulation adapted for use by all uniformed services.

C1.4.4. Servicing Finance Office. This office provides military pay support to the member.

C1.4.5. Family Unit Rule: Considered when parent is residing in the household with his/her spouse. Member and spouse are considered a unit regarding ownership of a dwelling or contributions toward both dependency and residency requirements for a dependent. In determining dependency of a parent, the total income and expenses of the family unit of which the member is apart of must be considered. The member's contribution to the expenses of the unit must exceed one-half of the unit's total expenses before any one person in the unit can be considered dependent on him or her.

C1.4.6. Residency. Residency denotes the specific place where the member and/or his/her dependents reside.

C1.4.7. Monetary Entitlements: Includes BAH, dependent travel, and station allowances.

C1.4.8. Relationship Documents for Monetary Entitlements. On initial application, an original or copy of the original, and a certified copy of relationship document are required. Such documents should be obtained from the official state or foreign country agency which has responsibility for registration of these documents, and should contain the stamp or seal of the issuing agency (attachment 2). Any questions as to legal sufficiency of the documentation will be submitted to the local Staff Judge Advocate (SJA). Foreign documents must be accompanied with English translation.

C1.4.9. Residency Test. Residency is used in addition to the dependency test for USIP card claims. The member's contribution must exceed the dependent's monthly expenses, which include personal expenses of the dependents.

C1.4.10. Supporting Documents. Any claim for BAH, travel allowance, or USIP card on behalf of a dependent requires a written request signed by the member. Submit original documents and copies of supporting documents to either the local finance office for primary dependents or the appropriate DFAS-IN office for secondary dependents. Use of a power of attorney is acceptable from a spouse or parent. Foreign documents must be accompanied with English translation. All monetary amounts must be converted to US currency. Copies of documents must be legible.

Documents may be mailed to the following address: DFAS-PMTEAC/IN, 8899 E. 56^th St., Indianapolis, IN 46249. Documents may also be submitted by fax to: 317-510-1084 or DSN 699-1084.

C2. CHAPTER 2

RESPONSIBILITIES

C2-1.

C2-2.

DODFMR .

Forwards secondary dependency determination requests and supporting documentation to DFAS-IN Dependency Determination Branch as required.

Responds to inquiries concerning particular dependency determination cases.

Periodically publicizes dependency determination entitlements, claims processing requirements, and related general information in installation level publications, through briefings, and other means of communication.

Furnishes Privacy Act Statement (PAS), either orally or in writing, whenever information is solicited from member, dependent, or custodian of the dependent.

b. Servicing Personnel Office

As the point of contact and verifier of all USIP card applications, the personnel Customer Service unit:
(a) Prepares DD Form 1172 , Application for Uniformed Services Identification and Privilege Card, and confirms member's status and the existence of an eligible relationship for the claimed dependent.
(b) Refers applicant to the servicing finance office for dependency and residency determinations, when required.
(c) Gives the applicant a written notification of the member's status and the relationship of the dependent to be presented to the servicing finance office.
(d) Refers claim for incapacitated child over the age of 21 to nearest military Medical Treatment Facility for completion of medical sufficiency statement.
(e) Authorizes specific USIP card entitlements

As the point of contact and verifying activity for travel orders:
(a) Checks possession of a current USIP card or Defense Enrollment Eligibility Reporting System (DEERS) entry for parent, stepchild, adopted child, and incapacitated child over age 21 to verify relationship to the member applying for travel allowance on behalf of dependent.
(b) Accepts possession of a current USIP card or DEERS entry for parent or incapacitated child over age 21 as verification of dependency, as dependency determination should have been made to obtain USIP card and entry on DEERS. Possession of these cards does not necessarily signify dependency approval was made by DFAS-IN.
(c) Annotates personnel file for member when travel allowance is approved.
(d) Refers members with secondary dependents to servicing finance office for dependency determination for travel allowance when the dependent is not in possession of a current USIP card or listed on DEERS for member sponsor applying for travel allowances.

c. Military Medical Treatment Facility: reviews medical statement furnished by member for an incapacitated child over age 21 and completes medical sufficiency statement. If the physical or mental incapacity is not established, member is referred back to the personnel office. If the physical or mental incapacity is established, member is referred to servicing finance office for a dependency determination.

d. Member and Dependents: can significantly contribute to the expeditious processing of dependency determinations by:

Submitting required forms and supporting documents.

Provide all requested information to the best of their knowledge and ask for assistance on any aspect that is unclear.

Be prepared to explain and provide proof of support for amounts reported.

Advise the servicing finance office immediately of changes, which may impact entitlements and/or warrant an out-of-cycle dependency determination.

e. Dependency Determinations Branch - DFAS is the Office of Primary Responsibility (OPR) for dependency determinations and is responsible for:

Developing and maintaining procedural guidance, forms, checklists, and training materials.

Making dependency determinations for cases referred by Servicing Finance Office. Processing member's appeals or determinations when they are not authorized local approval. Cases routinely sent to DFAS for dependency determination include:
(a) Claims on behalf of the child when the child's custodian refuses to provide information on the child necessary for the dependency determination
(b) Dual claims for the child when both members-parents claim BAH on behalf of the child
(c) Claims when members refuse to name the other parent of the child
(d) Dual claims for a parent when more than one member claims BAH in behalf of a parent
(e) BAH or travel allowance claims when an illegitimate child is adopted by another person and the member later adopts the same child
(f) Any other dependency determination issue beyond the authority or capability of the installation.

C3. CHAPTER 3 DATA BASE ADMINISTRATION

C3-1.

C3-2.

137-3 , 4 , 5 , 6 , 7 )

b.Annual Recertification (as required) (Dependency Statement DD Form 137-3 , 4 , 5 , 6 , 7 )

c.Any worksheet used by the examiner in evaluating residency and dependency requirements.

d. Supporting documents provided by the applicant (copies of birth and marriage certificates, court orders, etc.)

e.Notifications to participants of action taken, rationale and requests for clarification, information, and proof of support documents.

f.Information about investigative or debt collection action.

g.Email and United States Postal Service (USPS) mail addresses of sponsor.

C3-3.

C4. CHAPTER 4 DEPENDENCY DETERMINATION FACTORS

Income

C4-1.

C4-2.

C4-3.

C4-4.

C4-5. General. Review the dependency statement to determine whether the dependent has reported reasonable and necessary living expenses. Request supporting documents to substantiate claimed expenses if amounts appear excessive. Exclude excessive amounts if they are not substantiated by documentation. Be alert to the possibility of unreported expenses as they can affect the outcome of the dependency test. For initial claims count expenses from the effective date of the claim. For redeterminations, expenses should be averaged over the past 12 months. If a one-time expense is reported, average over 12 months. Always check for duplication of expenses.

C4-6.

C4-7.

C4-8.

C4-9.

Member's Contributions
C4-10.

C4-11.

C4-12.

C5. CHAPTER 5

UNIQUE REQUIREMENTS OF DEPENDENT TYPES

C5-1. Acceptability Period for Dependency Statements. Whenever possible, schedule and use the dependency statements (DD Forms 137 , 137-3 , 137-4 , 137-5 , 137-6 , 137-7 or USAFAC forms 5089-R, 5038-R or FCUSA Form 25-32 (Note: for copies of these form's email: Dependencydetermination@DFAS.MIL )) and determination to support multiple entitlements for Basic Allowance for Quarters (BAQ), travel allowance, and the USIP card. Additional entitlements may be determined using a dependency statement submitted for a prior entitlement, if it was completed and signed within 90 days prior to submission of the new claim.

C5-2. Parents: Eligible parents include the member's biological parents, stepparent, parent by adoption, and a person in loco parentis (in place of parent). A parent-in-law may be recognized as a dependent for BAH purposes under specific circumstances. Relationship: Relationship must be established on the initial claim for BAH on behalf of the parent. DD Form 137-3 , Dependency Statement - Parent, must be used as documentation for BAH claims. Proof of support for BAH entitlement is required, if the parent does not reside in the same household as the member. Proof of support could include copies of money orders, cancelled checks, allotments, etc. Member support is determined in Chapter 4.

a. Biological Parent. If the member is applying for an ID for their parent, a copy of the member's birth certificate showing the name of the parent is required. If the surnames of the parent and member differ, additional documentation is required to show the parent's or the member's name change. These documents include a marriage certificate, divorce decree, legal name change, or signed and notarized affidavits from two disinterested persons attesting to the relationship and how the affiant became familiar with the facts. When applying for an ID card for the parent, the DD Form 137-3 must be notarized in the state where the parent lives. The member must also submit a completed DD Form 1172 .

b. Step-parent. If applying for an ID card for the step-parent, a copy of the member's birth certificate and the biological parent's marriage certificate to the stepparent is required. The marriage must have occurred before the member's emancipation. For ID card applications the DD Form 137-3 must be notarized in the state where the parent resides and the member must submit a completed DD Form 1172 . The following conditions affect the stepparent and stepchild relationship:

An eligible relationship continues after the death of the biological parent. If the stepparent has remarried, an eligible relationship will be presumed if all the facts indicate the stepparent and stepchild relationship continued after the death of the biological parent.

If the biological parent and stepparent divorce, the entry of the final divorce decree ends the stepparent and stepchild relationship. The former stepparent could be considered a dependent only under the in loco parentis rule.

c. Parent In-Law. When submitting an ID card application for a parent in-law, the member must ensure the DD Form 137-3 is notarized in the state where the parent resides. A copy of the member's marriage certificate and a copy of the birth certificate of the member's spouse is required. The member must also submit a completed DD Form 1172 .

d. In Loco Parentis. An in loco parentis relationship exists when a person voluntarily accepts a child, not their own, into the home and assumes the duties, obligations, rights, and privileges of a parent. The parental relationship must have existed for a continuous period of not less than five years before the member's emancipation. As proof of an in loco parentis relationship, signed and notarized affidavits from the service member, claimed dependent, and two disinterested persons who have personal knowledge of the in loco parentis relationship to the member is required. Review of the affidavits must prove the in loco parentis relationship existed during the required period of time. The claimed dependent must have been age 21 at the time the relationship began. If the biological parent of the member lived in the same household, the evidence must prove that the biological parent did not retain any parental control over the child. The person who stood in loco parentis must have been the parent in fact and not merely the child's custodian. Only one individual or a couple consisting of male and female, may be considered to have stood in loco parentis. If a biological parent is living in the same household, only a person of the same sex as the missing parent can be held to stand in loco parentis. If both parents are missing, only one male and one female can be established in the parental roles. Supervision of the activities of a child or the administration of the estate by an adult other than a biological parent is not sufficient to establish an in loco parentis relationship. Acting as custodian, legal guardian, or nurse does not establish an in loco parentis relationship. Additional evidence of an in loco parentis relationship must be shown. In addition to the DD 137-3 , applications must include Form 5038-R and Form 25-32. Proof of support is also required if the child lives outside the home of the member. Proof of support can include copies of money orders, cancelled checks, allotments, etc. There is no ID card entitlement for an approved loco parentis relationship.

e. The dependency test is required when the parent does not reside in the member's household, or when the member resides in a parent's home. When both parents reside together, their combined income and expenses must be used on the dependency test regardless of whether the member claims one or both parents. Both the parents and parents' children, considered minors, who reside with the parents are part of the parental unit; therefore, dependency of the parental unit as a whole must be determined.

C5-3. Unmarried illegitimate children under age 21: Considered a primary dependent and will be verified/authorized by the local Finance/Personnel Office. Members may apply for and receive BAH in behalf of unmarried illegitimate children under age 21, subject to recertification or redetermination requirements. When both parents are members of the armed forces, the parent having physical custody of the illegitimate child is the only one authorized BAH in behalf of that child. If neither parent has physical custody, the member providing chief support of the illegitimate child is considered to be the only member with a dependent for entitlement to BAH in behalf of that child. Information about the relationship of the child to the member, the living arrangements, and the financial situation is needed for initial claims. DD Form 137-4 must be used for determination of this primary dependent.

a. Proof of support is required for the initial claim and continuously thereafter for all months when the child does not reside with the member or when the member is assigned to single government quarters.

b.Proof of Parentage. A member must show proof of parentage in behalf of the illegitimate child. Parentage is established when a member signs DD Form 137-4 and provides a copy of the child's birth certificate reflecting the full names of the biological mother and child. A card issued by the Bureau of Vital Records which merely identifies a child being born on a certain date, without including the name of the mother, is not acceptable. Birth records are a matter of public information and are obtainable from the appropriate agency of the state or country where the child was born. (Other acceptable evidence would be a record issued by a

hospital, statement from attending physician, or baptismal certificate. In these situations, the full name of the child, date of birth, and name of child's mother must be shown.) In cases involving foreign court decrees, parentage must also be admitted in writing and under oath. The member submits copies of court orders that decree paternity or dictate support, or both, when the documents are issued.

c. Illegitimate Child Adopted by Another Person. A member is not entitled to BAQ for a child after the child is adopted by a third party and final order or decree of adoption has been entered.

d.Presumption of Legitimacy. Check to determine whether the mother of the child was married to someone other than the member for any part of the 10-month period preceding the child's birth. Presumption of legitimacy is the principle that children conceived or born in wedlock are presumed to be the legitimate issue of the marriage. The principle of presumption of legitimacy, in one form or another, is universally recognized.

Male Member. The burden of proof is on the member to overcome the presumption of legitimacy. There is no general rule as to what is necessary to overcome the presumption of legitimacy; each case must be reviewed with regard to the laws of the applicable jurisdiction. Do not approve the claim. Refer the case to DFAS-PMTCBA/IN if the member furnishes documentation to overcome the presumption of legitimacy.

Female Member. If the presumption of legitimacy applies to the child of a female member, the child should be recognized as the legitimate child of the female member unless she presents sufficient evidence to overcome the presumption of legitimacy. When no such evidence exists, process the claim as for a legitimate child.

C5-4.

137-7 for initial determination and redeterminations.

e. Submit a copy of the signed court order. Submit proof of support if the Ward lives outside the members household. Proof of support may include copies of money orders, cancelled checks, allotments, etc.

f. Complete and submit a DD Form 1172 in addition to above documentation if applying for an ID card.

C5-5.

137-6 for initial determination and redeterminations.

c. Verification of enrollment at an approved accredited institution of higher learning by either a regional or national accreditation agency. Verification should be on an official school form with the Registrar's official stamp.

d. Submit proof of support if child permanently resides outside members household. Proof of support may include copies of money orders, cancelled checks, allotments, etc.

e. Complete and submit DD Form 1172 in addition to above documentation if applying for an ID card

C5-6.

137-5 for initial determination and redeterminations.

b. A medical sufficiency statement from a Medical Treatment Facility (MTF), a written verification of DEERS enrollment under sponsorship of the member, or a medical statement signed by a physician, is required to establish incapacity of a child. After receipt of the dependency statement or other requested supporting information, there may be circumstances which indicate validity or continuity of the incapacity is affected. Review the information furnished by the member. Some of these circumstances will be apparent immediately and others after the dependency determination are made. Tell the member the medical statement is not acceptable without clarification from the physician. The purpose of the request for clarification is not to dispute the medical statement, but to bring to the physician's attention information that may not have been available at the time the medical statement was prepared. Request another medical statement from the physician giving the opinion as to what affect the information provided has on the incapacitated. The validity of the initial medical statement will be questionable and cause for new medical statement, when one or more of the following circumstances occur and are reflected on the dependency statement or other statements furnished by the member:

Determination that the child is capable of self-support. The child must be continuously incapable of self-support since before the child's 21st birthday to be favorably considered for dependency status. There is a distinction between being capable of self-support and being more than 50 percent dependent on the member. Being capable of self-support means the child has become independently capable of earning amounts sufficient for personal needs through substantial and sustainable gainful employment. Thus, consider a child who is capable of earning only 95 percent of the child's necessary monthly expenses from a competitive job as being incapable of self-support. A child, who earns 100 percent or more of child's necessary monthly expenses for a period of 12 months or more, is deemed capable of self-support. Capability of self-support is not based on the incapacity of the child, but on the child's employment record and wages earned by the child, regardless of information contained on the medical statement. Once a determination is made that the child is capable of self-support, the entitlement cannot be re-established. To make a determination on whether a child is capable of self-support, only wages earned from a competitive job will be considered.

Mention of drug or alcohol abuse. Drug or alcohol abuse is not a compensable condition the federal disability system. It is inconsistent with the federal disability system, which includes military members, to consider children incapacitated for military entitlement purposes, based on drug and alcohol abuse.

College Attendance. Full-time college attendance for a period of time exceeding one year, unless college attendance can be explained otherwise, that is, attendance is in a special curriculum or program for handicapped individuals, or for vocational rehabilitation. Full-time college attendance requires at least the same, if not more, mental and physical stability, and capacity as many jobs. When a child sporadically attends school on a part-time basis this would not be cause for clarification by the physician.

Child's Employment. Employment in a part-time or a full-time competitive job for a period of time exceeding one year, when income is less than the full amount of the child's necessary expenses. Infrequent and isolated instances in which a child earns enough from a competitive job, for part or all of the child's necessary expenses, which would not be enough to initiate a request for clarification by the physician.

Military Service. Active duty with a branch of the uniformed services, including Reserve or National Guard service, for any period of time. Service in the uniformed services would be considered the same as competitive employment unless there were extenuating circumstances for discharge.

c. If the child does not reside in the members household, proof of support is required. Proof of support can include copies of money orders, cancelled checks, allotments, etc.

d. If applying for an ID card, the member must also submit a copy of the child's birth certificate and a completed DD Form 1172 , if the child is not registered in DEERs. A copy of the member's marriage certificate must be submitted if the child is a stepchild.