### Section K. Verification of Dependent Status

#### Overview

+------------+---------------------------------------------------------+
| #          | > This section contains the following topics:           |
| #### In th |                                                         |
| is Section |                                                         |
+------------+---------------------------------------------------------+

  ----------- ---------------------------------------------- ------------
  Topic       Topic Name                                     See Page

  62          Periodic Verification of the Status of         5-K-2
              Dependents                                     

  63          Initial Screening of the Verification Form     5-K-4

  64          Adjustments Based on Information Provided on   5-K-7
              the Verification Form                          

  65          Verification Request Not Returned              5-K-10

  66          Returned Mail---Erroneous Address              5-K-12

  67          Updating the Benefits Delivery Network (BDN)   5-K-14

  68          Claims Folders Located in Another Jurisdiction 5-K-15
              or at the Records Management Center (RMC)      

  69          End Product (EP) Credit                        5-K-17

  70          Reporting                                      5-K-18
  ----------- ---------------------------------------------- ------------

#### 62. Periodic Verification of the Status of Dependents

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the procedure for  |
| troduction | > periodically verifying the status of dependents. It   |
|            | > includes information on                               |
|            |                                                         |
|            | -   *VA Form 21-0538*, *Status of Dependents            |
|            |     Questionnaire*                                      |
|            |                                                         |
|            | -   *VA Form 21-0537*, *Marital Status Questionnaire*,  |
|            |     and                                                 |
|            |                                                         |
|            | -   case selection.                                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a    | > ***How the Forms Are Generated***:                    |
| . General  | >                                                       |
| Informatio | > The Benefits Delivery Network (BDN) generates         |
| n on VA Fo |                                                         |
| rm 21-0538 | -   *VA Form 21-0538*, *Status of Dependents            |
|  and VA Fo |     Questionnaire*, and                                 |
| rm 21-0537 |                                                         |
|            | -   *VA Form 21-0537*, *Marital Status Questionnaire*.  |
|            |                                                         |
|            | > ***Who Receives the Forms***:                         |
|            | >                                                       |
|            | > The forms are sent to approximately 1 percent of the  |
|            | > identified veterans and Dependency and Indemnity      |
|            | > Compensation (DIC) recipients each month. The entire  |
|            | > population of veterans and DIC recipients are         |
|            | > reviewed approximately once every eight years.        |
|            | >                                                       |
|            | > ***Response Time***:                                  |
|            | >                                                       |
|            | > The forms instruct beneficiaries to respond within 60 |
|            | > days from the date of the request. Failure to respond |
|            | > results in the reduction or termination of benefits.  |
|            | > A 60-day diary is automatically established in the    |
|            | > master record upon release of the verification form.  |
+------------+---------------------------------------------------------+

Continued on next page

62\. Periodic Verification of the Status of Dependents, Continued

+------------+---------------------------------------------------------+
| ##### b. P | > The table below describes the                         |
| urpose and |                                                         |
|  Recipient | -   forms                                               |
| s of VA Fo |                                                         |
| rm 21-0538 | -   purpose of each form used to verify the status of   |
|  and VA Fo |     dependents, and                                     |
| rm 21-0537 |                                                         |
|            | -   recipient(s) of each form.                          |
+------------+---------------------------------------------------------+

+-----------------+--------------------------+------------------------+
| Form            | Purpose of Form          | Recipient              |
+-----------------+--------------------------+------------------------+
| *VA Form        | Asks the veteran to      | All veterans in        |
| 21-0538*        | furnish information      | receipt of additional  |
|                 | concerning the status of | compensation for       |
|                 | his/her dependents.      |                        |
|                 |                          | -   a spouse           |
|                 |                          |                        |
|                 |                          | -   a child under age  |
|                 |                          |     18, or             |
|                 |                          |                        |
|                 |                          | -   a helpless child.  |
+-----------------+--------------------------+------------------------+
| *VA Form        | Asks the surviving       | All surviving spouses  |
| 21-0537*        | spouse to certify that   | in receipt of DIC.     |
|                 | he/she is unmarried.     |                        |
+-----------------+--------------------------+------------------------+

+------------+---------------------------------------------------------+
| #####      | > One non-consecutive terminal digit (from among all    |
| c. Case Se | > claim numbers) is selected each month to spread the   |
| lection {# | > workload among all regional offices (ROs).            |
| c.-case-se | >                                                       |
| lection .u | > The cases are selected for review according to claim  |
| nnumbered} | > numbers as they existed at the time of their initial  |
|            | > review.                                               |
|            | >                                                       |
|            | > The month of selection does *not* change in           |
|            | > subsequent reviews, even though a claim number may be |
|            | > changed.                                              |
|            | >                                                       |
|            | > Cases are automatically selected for review eight     |
|            | > years subsequent to the month                         |
|            |                                                         |
|            | -   an initial award of additional benefits for         |
|            |     dependents is processed, or                         |
|            |                                                         |
|            | -   an initial award of DIC to a surviving spouse is    |
|            |     processed.                                          |
+------------+---------------------------------------------------------+

#### 63. Initial Screening of the Verification Form {#initial-screening-of-the-verification-form .unnumbered}

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the initial        |
| troduction | > screening, including information on                   |
|            |                                                         |
|            | -   processing                                          |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   *VA Form 21-053*8, and                              |
|            |                                                         |
|            | -   *VA Form 21-0537*, and                              |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   a surviving spouse that has not remarried           |
|            |                                                         |
|            | -   a surviving spouse that has remarried, and          |
|            |                                                         |
|            | -   other benefit programs.                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. P | > Follow the steps in the table below when processing a |
| rocessing  | > completed *VA Form 21-0538* for compensation awards.  |
| VA Form 21 |                                                         |
| -0538 {#a. |                                                         |
| -processin |                                                         |
| g-va-form- |                                                         |
| 21-0538 .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Compare the information on the form with that displayed on   |
|       | the M16 screen.                                              |
+-------+--------------------------------------------------------------+
| 2     | Does the information on the form match that displayed on the |
|       | M16 screen?                                                  |
|       |                                                              |
|       | -   If *yes*, go to Step 3.                                  |
|       |                                                              |
|       | -   If *no*, or if the M16 screen is blank, go to Step 4.    |
+-------+--------------------------------------------------------------+
| 3     | -   Clear (using the PCLR command) end product (EP) 692      |
|       |                                                              |
|       | -   in the lower, right-hand corner of the form              |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   write "OK" and "PCLR 692," and                           |
|       |                                                              |
|       | -   initial and date the form                                |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   cancel the master record diary (reason code 25) using    |
|       |     the diary control (DIAR) command, and                    |
|       |                                                              |
|       | -   file the form in the claims folder or send it to files   |
|       |     activity for drop-filing.                                |
+-------+--------------------------------------------------------------+

Continued on next page

63\. Initial Screening of the Verification Form, Continued

  -----------------------------------------------------------------------
  a\. Processing VA Form 21-0538 (continued)

  -----------------------------------------------------------------------

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 4     | -   Pull the claims folder                                   |
|       |                                                              |
|       | -   undertake development action if information in the       |
|       |     claims folder does *not* resolve the inconsistencies,    |
|       |     and                                                      |
|       |                                                              |
|       | -   establish EP 130 at this time to maintain control of the |
|       |     case.                                                    |
|       |                                                              |
|       | ***Note***: A telephone call may resolve the issue           |
|       | immediately.                                                 |
|       |                                                              |
|       | ***Reference***: For more information on development action  |
|       | when the dependency data does *not* match, see M21-1MR, Part |
|       | III, Subpart iii, 5.K.64.                                    |
+-------+--------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b. P | > When processing a completed *VA Form 21-0537* (DIC    |
| rocessing  | > awards), determine whether the surviving spouse has   |
| VA Form 21 | > remarried since the death of the veteran.             |
| -0537 {#b. |                                                         |
| -processin |                                                         |
| g-va-form- |                                                         |
| 21-0537 .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If the surviving spouse has *not* remarried since the |
| c. Survivi | > death of the veteran                                  |
| ng Spouse  |                                                         |
| Has Not Re | -   PCLR EP 692                                         |
| married {# |                                                         |
| c.-survivi | -   in the lower, right-hand corner of the form         |
| ng-spouse- |                                                         |
| has-not-re | ```{=html}                                              |
| married .u | <!-- -->                                                |
| nnumbered} | ```                                                     |
|            | -   write "OK" and "PCLR 692," and                      |
|            |                                                         |
|            | -   initial and date the form                           |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   cancel the master record diary using the DIAR       |
|            |     command, and                                        |
|            |                                                         |
|            | -   file the form in the claims folder or send it to    |
|            |     files activity for drop-filing.                     |
+------------+---------------------------------------------------------+

Continued on next page

63\. Initial Screening of the Verification Form, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > Use the table below to determine the next steps if    |
|  Surviving | > the surviving spouse has remarried since the death of |
|  Spouse Ha | > the veteran.                                          |
| s Remarrie |                                                         |
| d {#d.-sur |                                                         |
| viving-spo |                                                         |
| use-has-re |                                                         |
| married .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If \...                          | Then \...                         |
+----------------------------------+-----------------------------------+
| DIC was *not* paid during the    | -   PCLR EP 692                   |
| period of remarriage             |                                   |
|                                  | -   in the lower, right-hand      |
|                                  |     corner of the form            |
|                                  |                                   |
|                                  | ```{=html}                        |
|                                  | <!-- -->                          |
|                                  | ```                               |
|                                  | -   write "OK" and "PCLR 692,"    |
|                                  |     and                           |
|                                  |                                   |
|                                  | -   initial and date the form     |
|                                  |                                   |
|                                  | ```{=html}                        |
|                                  | <!-- -->                          |
|                                  | ```                               |
|                                  | -   cancel the master record      |
|                                  |     diary (reason code 25), and   |
|                                  |                                   |
|                                  | -   file the form in the claims   |
|                                  |     folder or send it to files    |
|                                  |     activity for drop-filing.     |
+----------------------------------+-----------------------------------+
| -   DIC was paid during the      | -   cancel the master record      |
|     period of remarriage, or     |     diary (reason code 25)        |
|                                  |                                   |
| -   the surviving spouse         | -   establish EP 130, and         |
|     indicates that the           |                                   |
|     remarriage was terminated    | -   adjust the award as           |
|                                  |     appropriate.                  |
|                                  |                                   |
|                                  | ***Reference***: For information  |
|                                  | on the award action, see M21-1MR, |
|                                  | Part III, Subpart iii, 5.K.64.    |
+----------------------------------+-----------------------------------+

+-----------------------------------------------------------------------+
| > ***Note***: If the surviving spouse remarried after age 57,         |
| > benefits may not need to be adjusted. For additional information on |
| > remarriage after age 57, see                                        |
|                                                                       |
| -   M21-1MR, Part IV, Subpart iii, 3.F.34, and                        |
|                                                                       |
| -   [38 CFR                                                           |
|     3.55(a                                                            |
| )(10)](http://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_55.doc). |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > When *VA Form 21-0538* or *VA Form 21-0537* is        |
| ### e. Oth | > received, review any education or vocational          |
| er Benefit | > rehabilitation master records to confirm they         |
|  Programs  | > accurately reflect the status of dependents.          |
| {#e.-other |                                                         |
| -benefit-p | > If discrepancies exist, refer information that may    |
| rograms .u | > affect                                                |
| nnumbered} |                                                         |
|            | -   education awards to the Regional Processing Center  |
|            |     (RPC), and                                          |
|            |                                                         |
|            | -   vocational rehabilitation and employment (VR&E)     |
|            |     awards to the local VR&E division.                  |
+------------+---------------------------------------------------------+

#### 64. Adjustments Based on Information Provided on the Verification Form {#adjustments-based-on-information-provided-on-the-verification-form .unnumbered}

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on adjustments based  |
| troduction | > on information provided on the verification form,     |
|            | > including                                             |
|            |                                                         |
|            | -   due process procedures                              |
|            |                                                         |
|            | -   when a veteran reports the loss of a dependent      |
|            |                                                         |
|            | -   a surviving spouse in receipt of DIC benefits       |
|            |     reports he/she has remarried                        |
|            |                                                         |
|            | -   when the beneficiary does not report the date of    |
|            |     the change in status, and                           |
|            |                                                         |
|            | -   new or additional dependents.                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > With few exceptions, the due process procedures in    |
| #### a. Du | > M21-1MR Part I,, 2 *must* be followed prior to the    |
| e Process  | > reduction or termination of benefits.                 |
| Procedures |                                                         |
|            | > Award adjustments based on evidence furnished by the  |
|            | > beneficiary in cases that satisfy the criteria for    |
|            | > contemporaneous notice do *not* require notice of     |
|            | > proposed adverse action. In these cases, provide the  |
|            | > beneficiary                                           |
|            |                                                         |
|            | -   contemporaneous notice of the reduced benefits, and |
|            |                                                         |
|            | -   the reason for the effective date of the reduction. |
|            |                                                         |
|            | > ***Note***: Awards may be adjusted based on           |
|            | > information obtained by telephone.                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > Follow the steps in the table below if a veteran      |
|  Veteran R | > reports the loss of a dependent.                      |
| eporting L |                                                         |
| oss of Dep |                                                         |
| endent {#b |                                                         |
| .-veteran- |                                                         |
| reporting- |                                                         |
| loss-of-de |                                                         |
| pendent .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Follow the established procedures for adjusting an award     |
|       | based on the loss of a dependent.                            |
|       |                                                              |
|       | ***Reference***: For more information, see M21-1MR, Part     |
|       | III, Subpart iii, 5.F.34.                                    |
+-------+--------------------------------------------------------------+
| 2     | After the award adjustment, file the questionnaire in the    |
|       | claims folder.                                               |
+-------+--------------------------------------------------------------+

Continued on next page

64\. Adjustments Based on Information Provided on the Verification Form,
Continued

  -----------------------------------------------------------------------
  b\. Veteran Reporting Loss of Dependent (continued)

  -----------------------------------------------------------------------

  -------- --------------------------------------------------------------
  Step     Action

  3        Annotate the award to reflect the basis for the adjustment.
  -------- --------------------------------------------------------------

+------------+---------------------------------------------------------+
| ##### c    | > If a surviving spouse in receipt of DIC benefits      |
| . Survivin | > reports he/she has remarried                          |
| g Spouse R |                                                         |
| eports He/ | -   terminate benefits                                  |
| She Has Re |                                                         |
| married {# | -   file the questionnaire in the claims folder, and    |
| c.-survivi |                                                         |
| ng-spouse- | -   annotate the award to reflect the basis for the     |
| reports-he |     adjustment.                                         |
| she-has-re |                                                         |
| married .u | > ***Exception***: If a surviving spouse remarries      |
| nnumbered} | > after age 57, benefits may not need to be terminated. |
|            | >                                                       |
|            | > ***Reference***: For more information on terminating  |
|            | > benefits based on the remarriage of a surviving       |
|            | > spouse, see M21-1MR, Part IV, Subpart iii, 3.F.       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > Follow the steps in the table below when a veteran    |
|  Date of C | > reports the loss of a dependent, or a surviving       |
| hange in S | > spouse reports he/she has remarried, but the          |
| tatus Is N | > beneficiary does not provide the date of the event.   |
| ot Reporte |                                                         |
| d {#d.-dat |                                                         |
| e-of-chang |                                                         |
| e-in-statu |                                                         |
| s-is-not-r |                                                         |
| eported .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Request the missing information from the beneficiary.        |
|       |                                                              |
|       | ***Note***: Make an attempt to contact the beneficiary by    |
|       | telephone, as this is the most expedient method of obtaining |
|       | the missing information.                                     |
+-------+--------------------------------------------------------------+
| 2     | If the beneficiary cannot be contacted by telephone, send a  |
|       | letter stating that if the missing information is *not*      |
|       | received within 60 days from the date of the letter,         |
|       | benefits will be terminated or reduced at the end of the     |
|       | month in which the status justifying entitlement to current  |
|       | benefits was last confirmed.                                 |
+-------+--------------------------------------------------------------+

Continued on next page

64\. Adjustments Based on Information Provided on the Verification Form,
Continued

  -----------------------------------------------------------------------
  d\. Date of Change in Status Is Not Reported (continued)

  -----------------------------------------------------------------------

  -------- --------------------------------------------------------------
  Step     Action

  3        Review the claims folder to determine the date the dependents
           or unmarried status were last shown by the evidence of record,
           and include that date in the letter to the beneficiary.

  4        After the award adjustment, file the questionnaire in the
           claims folder.

  5        Annotate the award to reflect the basis for the adjustment.
  -------- --------------------------------------------------------------

+------------+---------------------------------------------------------+
| ####       | > Consider any additional dependents identified in      |
| # e. New o | > response to the verification request, as a claim for  |
| r Addition | > the additional allowance for dependents.              |
| al Depende |                                                         |
| nts {#e.-n | [38 CFR                                                 |
| ew-or-addi | 3.401](http://                                          |
| tional-dep | www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_401.DOC) |
| endents .u | governs the effective date to increase compensation for |
| nnumbered} | the additional allowance for dependents.                |
|            |                                                         |
|            | > ***Note***: If a liberalizing law or issue is         |
|            | > applicable, consider [38 CFR                          |
|            | > 3.114](http://w                                       |
|            | ww.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_114.DOC). |
+------------+---------------------------------------------------------+

#### 65. Verification Request Not Returned {#verification-request-not-returned .unnumbered}

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If the master record diary is *not* cancelled within  |
| a. Procedu | > 60 days from the date of the computer-generated       |
| re: Verifi | > request for verification, *VA Form 20-6560*, *Notice  |
| cation Req | > of Benefit Payment Transaction*, is issued with the   |
| uest Not R | > legend *DEP QUES NOT RETD*.                           |
| eturned  { |                                                         |
| #a.-proced | > Follow the steps in the table below when *DEP QUES    |
| ure-verifi | > NOT RETD* appears on *VA Form 20-6560*.               |
| cation-req |                                                         |
| uest-not-r |                                                         |
| eturned .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Did an attempt to obtain verification of dependent status by |
|       | telephone resolve the issue?                                 |
|       |                                                              |
|       | -   If *yes*                                                 |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   continue, increase, or decrease benefits, as warranted   |
|       |                                                              |
|       | -   send contemporaneous notice of the award action, and     |
|       |                                                              |
|       | -   this ends the procedure.                                 |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   If *no*, go to Step 2.                                   |
+-------+--------------------------------------------------------------+
| 2     | Send a letter to the beneficiary advising him/her            |
|       |                                                              |
|       | -   of the proposed reduction or termination of benefits     |
|       |                                                              |
|       | -   that the proposed action will be effective the first of  |
|       |     the month following the date the status of the           |
|       |     dependent(s) in question was last verified, and          |
|       |                                                              |
|       | -   that an overpayment may be created which the claimant    |
|       |     may be required to pay.                                  |
|       |                                                              |
|       | ***References***: For more information on                    |
|       |                                                              |
|       | -   termination of related benefits if the beneficiary does  |
|       |     *not* verify eligibility for dependent benefits, see     |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   [38 CFR                                                  |
|       |     3.652](htt                                               |
|       | p://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_652.DOC), |
|       |     and                                                      |
|       |                                                              |
|       | -   [38 CFR 3.500 through                                    |
|       |     3.503](htt                                               |
|       | p://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_500.DOC). |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   the elements that must be included in a notice of        |
|       |     proposed adverse action, see M21-1MR, Part I, 2.B.5.     |
+-------+--------------------------------------------------------------+

Continued on next page

65\. Verification Request Not Returned, Continued

  -----------------------------------------------------------------------
  a\. Procedure: Verification Request Not Returned (continued)

  -----------------------------------------------------------------------

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 3     | -   PCLR EP 692, and                                         |
|       |                                                              |
|       | -   establish EP 600 with a suspense date 60 days from the   |
|       |     date of the notification.                                |
+-------+--------------------------------------------------------------+
| 4     | Was the verification received within the additional 60-day   |
|       | period?                                                      |
|       |                                                              |
|       | -   If *yes*, go to Step 5.                                  |
|       |                                                              |
|       | -   If *no*, go to Step 6.                                   |
+-------+--------------------------------------------------------------+
| 5     | Continue, increase, or decrease benefits, as warranted, if   |
|       | the verification is received within the 60-day period.       |
|       |                                                              |
|       | ***Note***: The beneficiary is not required to provide       |
|       | verification of marital or dependent status within a year of |
|       | the request to have benefits resumed from the date of        |
|       | reduction or discontinuance.                                 |
|       |                                                              |
|       | ***Reference***: For more information on certification of    |
|       | continued eligibility, see [38 CFR                           |
|       | 3.652](htt                                                   |
|       | p://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_652.DOC). |
+-------+--------------------------------------------------------------+
| 6     | If verification is *not* received within the due process     |
|       | period                                                       |
|       |                                                              |
|       | -   process the proposed termination or reduction            |
|       |                                                              |
|       | -   annotate the award to reflect the basis for the action,  |
|       |     and                                                      |
|       |                                                              |
|       | -   file *VA Form 20-6560* in the claims folder.             |
+-------+--------------------------------------------------------------+

#### 66. Returned Mail---Erroneous Address {#returned-mailerroneous-address .unnumbered}

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information about mail due that   |
| troduction | > is returned as undeliverable due to an erroneous      |
|            | > address, including steps to take                      |
|            |                                                         |
|            | -   when the correct address is unknown, and            |
|            |                                                         |
|            | -   when a better address cannot be found.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > If the address on the questionnaire is incorrect, and |
| # a. When  | > the correct address is known                          |
| the Correc |                                                         |
| t Address  | -   re-send the questionnaire to the correct address    |
| Is Known { |                                                         |
| #a.-when-t | -   set a master record diary control of 60 days for    |
| he-correct |     return of the questionnaire                         |
| -address-i |                                                         |
| s-known .u | -   correct the address in the master record, and       |
| nnumbered} |                                                         |
|            | -   treat the re-sent questionnaire as an initial       |
|            |     mailing.                                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Follow the steps in the table below if a better       |
| ### b. Whe | > address cannot be found.                              |
| n a Better |                                                         |
|  Address C |                                                         |
| annot Be F |                                                         |
| ound {#b.- |                                                         |
| when-a-bet |                                                         |
| ter-addres |                                                         |
| s-cannot-b |                                                         |
| e-found .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Re-mail the questionnaire to the address of record.          |
|       |                                                              |
|       | ***Note***: If the beneficiary receives VA benefits via      |
|       | direct deposit/electronic funds transfer (DD/EFT), send a    |
|       | letter to the appropriate financial institution asking for   |
|       | the beneficiary's current mailing address.                   |
+-------+--------------------------------------------------------------+
| 2     | If the questionnaire is returned again as undeliverable,     |
|       | send a letter to the current address advising the veteran or |
|       | surviving spouse that                                        |
|       |                                                              |
|       | -   60 days following the date of the letter, his/her        |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   disability compensation will be reduced by the           |
|       |     additional amount paid for a spouse or child(ren), or    |
|       |                                                              |
|       | -   DIC benefits will be suspended (whichever is             |
|       |     appropriate), and                                        |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   retroactive award adjustments may be necessary at a      |
|       |     later date.                                              |
+-------+--------------------------------------------------------------+

Continued on next page

66\. Returned Mail---Erroneous Address, Continued

  -----------------------------------------------------------------------
  b\. When a Better Address Cannot Be Found (continued)

  -----------------------------------------------------------------------

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 3     | Establish a 60-day control for a response.                   |
+-------+--------------------------------------------------------------+
| 4     | If no response is received from the beneficiary within 60    |
|       | days, reduce or suspend benefits accordingly.                |
+-------+--------------------------------------------------------------+
| 5     | > Consider the dependent status, for which verification was  |
|       | > requested, to have ceased as of the first of the month     |
|       | > following the month in which the evidence of record shows  |
|       | > it was last confirmed.                                     |
+-------+--------------------------------------------------------------+
| 6     | -   Send the beneficiary another notice of proposed adverse  |
|       |     action providing the specifics of the proposed           |
|       |     retroactive reduction or termination, and                |
|       |                                                              |
|       | -   establish EP 600.                                        |
+-------+--------------------------------------------------------------+
| 7     | If no response is received within 60 days, take the proposed |
|       | action to reduce or terminate benefits as appropriate under  |
|       | [38 CFR                                                      |
|       | 3.652](htt                                                   |
|       | p://www.warms.vba.va.gov/regs/38CFR/BOOKB/PART3/S3_652.DOC). |
+-------+--------------------------------------------------------------+

#### 67. Updating the Benefits Delivery Network (BDN)

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Follow the steps in the table below to update BDN.    |
| ### a. Upd |                                                         |
| ating BDN  |                                                         |
| {#a.-updat |                                                         |
| ing-bdn .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

  -------- --------------------------------------------------------------
  Step     Action

  1        Review the claims folder prior to updating information on the
           M16 screen.

  2        Update the M16 screen if the required information concerning
           dependents is not complete.

  3        If necessary, enter the spouse's name and complete date of
           birth (month/day/year) on the M16 screen by means of a
           correction of the master record (CORR) command.

  4        Award action must be taken to update information concerning
           children; this information cannot be updated by means of a
           CORR.
  -------- --------------------------------------------------------------

#### 68. Claims Folder Located in Another Jurisdiction or at the Records Management Center (RMC) {#claims-folder-located-in-another-jurisdiction-or-at-the-records-management-center-rmc .unnumbered}

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on where to send      |
| troduction | > verification forms when the beneficiary's claims      |
|            | > folder is located                                     |
|            |                                                         |
|            | -   in another jurisdiction, or                         |
|            |                                                         |
|            | -   at RMC.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Follow the procedures in the table below when         |
|  Claims Fo | > verification forms are received for a beneficiary     |
| lder Locat | > whose claims folder located at                        |
| ed in Anot |                                                         |
| her Jurisd | -   another RO, or                                      |
| iction or  |                                                         |
| at RMC {#a | -   the Record Management Center (RMC) in St. Louis.    |
| .-claims-f |                                                         |
| older-loca |                                                         |
| ted-in-ano |                                                         |
| ther-juris |                                                         |
| diction-or |                                                         |
| -at-rmc .u |                                                         |
| nnumbered} |                                                         |
+------------+---------------------------------------------------------+

  ------------------- ----------------- ---------------------------------
  If the claims       And a folder      Then send the form to ...
  folder is located   review is ...     
  at ...                                

  another RO          \-\--             the RO of jurisdiction for
                                        processing.

  the RMC             *not* necessary   the RMC to be drop filed after EP
                      to confirm        692 has been cleared and the
                      dependent or      diary (reason code 25) has been
                      marital status    canceled.
  ------------------- ----------------- ---------------------------------

Continued on next page

68\. Claims Folder Located in Another Jurisdiction or at the Records
Management Center (RMC), Continued

  -----------------------------------------------------------------------
  a\. Claims Folder Located in Another Jurisdiction or at RMC (continued)

  -----------------------------------------------------------------------

+------------------+-----------------+---------------------------------+
| If the claims    | And a folder    | Then send the form to ...       |
| folder located   | review is ...   |                                 |
| at ...           |                 |                                 |
+------------------+-----------------+---------------------------------+
| RMC              | necessary to    | -   the St. Louis RO attached   |
|                  | confirm         |     to *Optional Form 41*       |
|                  | dependency or   |     marked "*Attention 21*"     |
|                  | marital status  |                                 |
|                  |                 | -   annotate the Remarks        |
|                  |                 |     section with "*Folder       |
|                  |                 |     review required for         |
|                  |                 |     verification of dependent   |
|                  |                 |     status*," and               |
|                  |                 |                                 |
|                  |                 | -   cancel the reason 25 master |
|                  |                 |     record diary.               |
|                  |                 |                                 |
|                  |                 | ***Result***: St. Louis RO      |
|                  |                 | obtains the claims folder from  |
|                  |                 | RMC, performs the review, and   |
|                  |                 | takes any necessary award       |
|                  |                 | action.                         |
|                  |                 |                                 |
|                  |                 | ***Notes***:                    |
|                  |                 |                                 |
|                  |                 | -   If the St. Louis RO         |
|                  |                 |     determines that development |
|                  |                 |     action is necessary, they   |
|                  |                 |     will return the form with   |
|                  |                 |     the claims folder to the RO |
|                  |                 |     of jurisdiction.            |
|                  |                 |                                 |
|                  |                 | -   EP credit will be taken     |
|                  |                 |     only by the RO completing   |
|                  |                 |     the final review and any    |
|                  |                 |     necessary award action.     |
+------------------+-----------------+---------------------------------+

#### 69. End Product (EP) Credit {#end-product-ep-credit .unnumbered}

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information about EP credit. It   |
| troduction | > includes information on                               |
|            |                                                         |
|            | -   EP credit when pulling of the claims folder is not  |
|            |     required, and                                       |
|            |                                                         |
|            | -   EP credit when pulling of the claims folder is      |
|            |     required.                                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > PCLR EP 692 when                                      |
|  EP Credit |                                                         |
|  When Pull | -   initial review confirms the dependent or            |
| ing of the |     unremarried status, and                             |
|  Claims Fo |                                                         |
| lder Is No | -   pulling of the claims folder is *not* required.     |
| t Required |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > When the claims folder must be pulled for review,     |
| # b. EP Cr | > establish EP 130.                                     |
| edit When  | >                                                       |
| Pulling of | > If award action                                       |
|  the Claim |                                                         |
| s Folder I | -   is necessary, take award action under EP 130, or    |
| s Required |                                                         |
|            | -   is *not* necessary, PCLR EP 130.                    |
+------------+---------------------------------------------------------+

#### 70. Reporting {#reporting .unnumbered}

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information about report          |
| troduction | > requirements, including                               |
|  {#introdu |                                                         |
| ction-6 .u | -   report format                                       |
| nnumbered} |                                                         |
|            | -   the period covered by report                        |
|            |                                                         |
|            | -   the date the report is due, and                     |
|            |                                                         |
|            | -   where to e-mail reports.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Individual case reports are *not* required. However,  |
|  a. Report | > reports are required to be presented in the following |
|  Format  { | > format:                                               |
| #a.-report |                                                         |
| -format .u | -   number of compensation cases reviewed               |
| nnumbered} |                                                         |
|            | -   number of compensation cases in which benefits were |
|            |     reduced                                             |
|            |                                                         |
|            | -   number of DIC cases reviewed, and                   |
|            |                                                         |
|            | -   number of DIC cases in which benefits were          |
|            |     terminated.                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b    | > The report covers the calendar year preceding the     |
| . Period C | > calendar year during which the report is due.         |
| overed by  | > Therefore, the report due on February 28, 2001,       |
| the Report | > covers the period January 1, 2000, through December   |
|            | > 31, 2000.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > The report is due in Central Office (CO) (212A) no    |
| # c. Repor | > later than February 28 each year.                     |
| t Due Date | >                                                       |
|            | > *RCS 20-0815* is the report control schedule number   |
|            | > assigned to this report.                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > E-mail reports to *VAVBAWAS/CO/212A*.                 |
| ### d. Whe |                                                         |
| re to E-Ma |                                                         |
| il Reports |                                                         |
+------------+---------------------------------------------------------+