M29-1, Part II

Advance Change No. 4-80 November 14, 1980

[CHAPTER 6]{.underline} - [DIVIDENDS]{.underline}

A. [Change]{.underline}: M29-1, Part II, Chapter 6.

B. [Procedure]{.underline}: Add the following interest year factor to
Figure 6.01, Page 6-22c:

Dividend

[Year]{.underline} [1980]{.underline} [1981]{.underline}\
1952 1.88852 2.09072\
1953 1.80439 2.00070\
1954 1.72271 1.91330\
1955 1.64340 1.82844\
1956 1.56641 1.74606\
1957 1.49165 1.66607\
1958 1.41909 1.58843\
1959 1.34863 1.51303\
1960 1.28021 1.43982

Reg. & Spec.

1961 1.21381 1.36878\
1962 1.14935 1.29980

Reg. & Spec.

1963 1.08673 1.23280\
1964 1.02594 1.16776\
1965 .96216 1.09951\
1966 .90041 1.03344\
1967 .84060 .96944\
1968 o76980 .89369\
1969 .70173 .82085\
1970 .63630 .75084\
1971 .56960 .67947\
1972 .50199 .60713\
1973 .43731 .53792\
1974 .37542 .47170\
1975 .31305 .40496\
1976 .25052 .33806\
1977 .19097 .27434\
1978 .12888 .20790\
1979 .06750 .14223\
1980 .07000

M29-l, Part II

Advance Change No.

C. New or Revised

[Insurance Forms]{.underline}: None

BERT **W.** CAREY

Assistant Director For Insurance

[DI STRIB\'UTION]{.underline}:

335-29 - 120\
310-290 - 45\
310-291 - 200\
244C - 10\
Library - 1

M29-1, Part ll\
\~ Advance Manual Change No. 9-83 June 28, 1983

[Chapter 6 - Dividends]{.underline}\
A. [Change:]{.underline} M29-1, Part II, Chapter 6.\
B. [Procedure:]{.underline} Add the following interest year factor to
Figure 6.01, Page 6-22c:

Dividend

[Year]{.underline} [1980]{.underline} [1981]{.underline}
[1982]{.underline} [1983]{.underline}

1952 1.88852 2.09072 2.33025 2.59667\
1953 1.80439 2.00070 2.23325 2.49191\
1954 1.72271 1.91330 2.13908 2.39020\
1955 1.64340 1.82844 2.04765 2.29146\
1956 1.56641 1.74606 1.95888 2.19559\
1957 1.49165 1.66607 1.87270 2.10251\
1958 1.41909 1.58843 1.78903 2.01215\
1959 1.34863 1.51303 1.70779 1.92442\
1960 1.28021 1.43982 1.62893 1.83924

Reg. & Spec.

1961 1.21381 1.36878 1.55236 1.75654\
1962 1.14935 1.29980 1.47802 1.67626

Reg. & Spec.

1963 1.08673 1.23280 1.40584 1.59831\
1964 1.02594 1.16776 1.33577 1.52263\
1965 .96216 1.09951 1.26224 1.44322\
1966 .90041 1.03344 1.19104 1.36632\
1967 .84060 .96944 1.12207 1.29183\
1968 .76980 .89369 1.04045 1.20369\
1969 .70173 .82085 .96197 1.11893\
1970 .63630 .75084 .88651 1.03743\
1971 .56960 .67947 .80960 .95437\
1972 .50199 .60713 .73168 .87021\
1973 .43731 .53792 .65711 .78968\
1974 .37542 .47170 .58575 .71261\
1975 .31305 .40496 .51384 .63495\
1976 .25052 .33806 .44175 .55709\
1977 .19097 .27434 .37310 .48295\
1978 .12888 .20790 .30152 .40564\
1979 .06750 .14223 .23075 .32921\
1980 .07000 .15293 .24516\
1981 .07750 .16370\
1982 .08000

2\.

M29-1, Part ll

Advance Manual Change No. 9-83

C. New or Revised

[Insurance Forms]{.underline}: None

BERT W. CAREY

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 80\
310/290 55\
310/291 200\
310/Library 1\
244C 10

M\~29-l, Part II

advance Manual Change No. 2-87 December 11, 1987

[Chapter 6]{.underline} - [Dividends]{.underline}

A. [Change:]{.underline} M29-l, Part II, Chapter 6. This change provides
the new\
dividend credit and deposit interest rates for 1988. The\
1988 interest rates remain the same as the 1987 interest\
rates.

B. [Procedure:]{.underline} Change 6.11a (l) to read:

\(l\) The 1987 interest rates were as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum.\
(b) NSLI (\"V\" prefixed policies) - 9.25% per annum.\
(c) \"RS and W\" prefixed policies - 9.25% per annum.\
(d) \"J, JR, JS\" prefixed policies - 9.75% per annum.

Change 6.11a (2) to read:

\(2\) The 1988 interest rates are as follow:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum.\
(b) NSLI (\"V\" prefixed policies) - 9.25% per annum.\
(c) \"RS and W\" prefixed policies - 9.25% per annum.\
(d) \"J, JR, JS\" prefixed policies - 9.75% per annum.

[NOTE:]{.underline} The daily interest factors for the above policies\
effective January 1, 1988, are in figures 6.13, 6.19a,\
and 6.21.

C. New or Revised\
[Insurance Forms:]{.underline} None

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
310/291 l\
310/292 142\
310/295 67\
310/Library 1\
CO/3llD 2

TOTAL 356

M29-l, Part II

Advanced Manual Change No. 3-87 December II, 1987

[Chapter 6]{.underline} - [Dividends]{.underline} ([NSLI]{.underline} -
[V]{.underline})

A. [Change:]{.underline} M29-1, Part II, Chapter 6.

B. [Procedure]{.underline}: Add the following interest year factor to
Figure 6.01, Page 6-22c:

Dividend

[Year]{.underline} [1984]{.underline} [1985]{.underline}
[1986]{.underline} [1987]{.underline} [1988]{.underline}

1952 2.90238 3.25360 3.64705 4.07691 4.54652\
1953 2.78872 3.12970 3.51170 3.92903 4.38497\
1954 2.67837 3.00942 3.38029 3.78547 4.22813\
1955 2.57123 2.89264 3.25271 3.64609 4.07585\
1956 2.46722 2.77926 3.12885 3.51077 3.92801\
1957 2.36623 2.66919 3.00859 3.37938 3.78448\
1958 2.26818 2.56232 2.89183 3.25183 3.64512\
1959 2.17299 2.45856 2.77848 3.12799 3.50983\
1960 2.08058 2.35783 2.66843 3.00776 3.37847

Regular & Special

1961 1.99085 2.26003 2.56158 2.89103 3.25095\
1962 1.90374 2.16507 2.45784 2.77769 3.12713

Regular & Special

1963 1.81916 2.07289 2.35713 2.66766 3.00692\
1964 1.73705 1.98339 2.25935 2.56084 2.89022\
1965 1.65090 1.88948 2.15676 2.44876 2.76777\
1966 1.56746 1.79853 2.05739 2.34020 2.64917\
1967 1.48664 1.71044 1.96115 2.23506 2.53430\
1968 1.39100 1.60619 1.84726 2.11063 2.39837\
1969 1.29904 1.50595 1.73775 1.99099 2.26766\
1970 1.21061 1.40957 1.63245 1.87596 2.14198\
1971 1.12049 1.31134 1.52514 1.75871 2.01389\
1972 1.02918 1.21181 1.41640 1.63991 1.88411\
1973 .94180 1.11656 1.31234 1.52623 1.75991\
1974 .85818 1.02542 1.21277 1.41745 1.64106\
1975 .77392 .93357 1.11243 1.30783 1.52130\
1976 .68945 .84150 1.01184 1.19793 1.40124\
1977 .60900 .75381 .91603 1.09327 1.28689\
1978 .52512 .66238 .81615 .98414 1.16767\
1979 .44219 .57199 .71740 .87625 1.04981\
1980 .35100 .47259 .60880 .75762 .92020\
1981 .26261 .37625 .50355 .64263 .79457\
1982 .17180 .27726 .39541 .52448 .66550\
1983 .08500 .18265 .29205 .41156 .54213\
1984 .09000 .19083 .30098 .42132\
1985 .09250 .19356 .30396\
1986 .09250 .19356\
1987 .09250

C. New or Revised\
[Insurance Forms:]{.underline} None

PAUL F. KOONS

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
310/291 1\
310/292 142\
310/295 67\
310/Library 1\
CO/3llD 2

TOTAL 356

M29-I, Part II

Advance Manual Change No. 3-86 December 18, J986

[Chapter 6]{.underline} - [Dividends]{.underline}

A. [Change:]{.underline} N29-1, Part 11, Chapter 6.

B. [Procedure:]{.underline} Delete paragraph 6.11a in its entirety and
substitute the\
- following:

a\. The system will generate an PRO for clerical action if it encounters
a condition which prevents it from calculating interest. When
withdrawals are made from dividend credit or deposit accounts clerically
for payment to the insured, it will be necessary to clerically calculate
interest on the amount withdrawn from the prior policy anniversary date
to the date the withdrawal is processed. The postmark date will be the
transaction date on withdrawals for payment of premiums or loan/lien
indebtedness. When computing interest for less than a full policy year,
daily interest factors based on the annual interest **rate\'** will be
used.

\(1\) The 1986 interest rates were as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum.

\(b\) NSLI (\"v\" prefixed policies) - 9.25% per annum.\
(c) \"RS and W.\' prefixed policies - 8.75% per annum.\
(d) \"J, JR, JS\" prefixed policies - 9.75% per annum.

\(2\) The 1987 interest rates are as follows:

\(a\) USGLI **(\~x** prefixed policies) - 7% per annum.

\(b\) NSLI (\"v\" prefixed policies) - 9.25% per annum.\
(c) \"RS and W\" prefixed policies - 9.25% per annum.\
(d) \"J, JR, JS\" prefixed policies - 9.75% per annum.

[NOTE]{.underline}: The daily interest factors for the above policies
effective January 1, J987, are in figures 6.13, 6.19a, and 6.21.

C. New or Revised

[Insurance Forms]{.underline}: None

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
3)0/291 \]\]\]\
**310/Library J**

C()/3)JD 3 -

M29-1, Part II

Advance Manual Change No. 15-83 December 16, 1983

[Chapter 6 Dividends]{.underline}

A. [Change:]{.underline} M29.•1, Part II, Chapter 6.\
B. [Procedure:]{.underline} Add the following interest year factor to
Figure 6.01, Page 6-22c:

Dividend

[Year]{.underline} [1981]{.underline} [1982]{.underline}
[1983]{.underline} [1984]{.underline}

1952 2.09072 2.33025 2.59667 2.90238\
1953 2.00070 2.23325 2.49191 2.78872\
1954 1.91330 2.13908 2.39020 2.67837\
1955 1.82844 2.04765 2.29146 2.57123\
1956 1.74606 1.95888 2.19559 2.46722\
1957 1.66607 1.87270 2.10251 2.36623\
1958 1.58843 1.78903 2.01215 2.26818\
1959 1.51303 1.70779 1.92442 2.17299\
1960 1.43982 1.62893 1.83924 2.08058

Regular & Special\
1961 1.36878 1.55236 1.75654 1.99085\
1962 1.29980 1.47802 1.67626 1.90374

Regular & Special\
1963 1.23280 1.40584 1.59831 1.81916\
1964 1.16776 1.33577 1.52263 1.73705\
1965 1.09951 1.26224 1.44322 1.65090\
1966 1.03344 1.19104 1.36632 1.56746\
1967 .96944 1.12207 1.29183 1.48664\
1968 .89369 1.04045 1.20369 1.39100\
1969 .82085 .96197 1.11893 1.29904\
1970 .75084 .88651 1.03743 1.21061\
1971 .67947 .80960 .95437 1.12049\
1972 .60713 .73168 .87021 1.02918\
1973 .53792 .65711 .78968 .94180\
1974 .47170 .58575 .71261 .85818\
1975 .40496 .51384 .63495 .77392\
1976 .33806 .44175 .55709 .68945\
1977 .27434 .37310 .48295 .60900\
1978 .20790 .30152 .40564 .52512\
1979 .14223 .23075 .32921 .44219\
1980 .07000 .15293 .24516 .35100\
1981 .07750 .16370 .26261\
1982 .08000 .17180\
1983 .08500

VA Regional Office and Insurance Center Circular 29-85-1\
Philadelphia, PA December 18, 1985

[DIVIDEND CONTROL ACCOUNT NUMBERS]{.underline}

1\. ORGANIZATIONAL ELEMENTS AFFECTED: Insurance Operations Div. -
VAROIC\
Finance Division - VAROIC\
Operations Division - VARDPC\
Analysis and Control Div. - VARDPC

2\. REFERENCES: M29-1, Part II, Chapter 24

3\. PURPOSE: To confirm the necessary changes in the Dividend Control
Account Numbers due to the payment of the 1986 dividends.

4\. PROCEDURE:

a\. Effective December 31, 1985, PDN 365/85, the dividend control
account numbers will be changed as shown below:

[NSLI]{.underline}

GENERAL LEDGER DIVIDEND CONTROL\
w [ACCOUNT NUMBER]{.underline} [NAME]{.underline} [ACCOUNT
NUMBER]{.underline}

4331 Special and Regular Annual 45\
1948/1984 (V only)

4331.3 Special and Regular Annual 46\
1948/1984 - O/P (V only)

4531 1975/1984 Regular Annual 45\
(Except V)

\~531.3 1975/1984 Regular Annual - 46\
O/P (Except v)

[USGLI]{.underline}

4332 Special and Regular Annual 45\
1921/1986

4332.3 Special and Regular Annual 46

1921/1986 - O/P

[NSLI]{.underline}

4385 1985 v Regular Annual 47\
4385.3 1985 V Regular Annual - O/P 48\
4585 1985 Regular Annual (Except v) 47

4585.3 1985 Regular Annual - O/P 48\
(Except v)

4386 1986 v Regular Annual 49\
- 4386.3 1986 V Regular Annual - 0/P 50\
4586 1986 Regular Annual (Except v) 49

4586.3 1986 Regular Annual - 0/P 50\
(Except v)

4351 Dividends - Settlement 43\
(All Funds)

4351.3 Dividends Settlement - O/P 44\
(All Funds)

b\. In order to prevent cross actions, all punched card inputs using the
existing dividend control account numbers must be delivered to the
Input/Output Section, DPC, by c.o.b. December 20, 1985. OCR documents
using the existing dividend control account numbers must be inserted by
c.o.b. December 27, 1985. The revised dividend control account numbers
will be used on all inputs commencing December 30, 1985.

5\. CONCURRENCE: The Director, Philadelphia Data Processing Center
concurs.

6\. RESCISSION: VAC Circular 29-84-6 is rescinded effective December
31,\
1985.

ROBERT W. CAR \`EY

Director

[DISTRIBUTION:]{.underline}\
A-l\
D-1\
E- 1-2-3-5\
F-1-2-3-6-8-12-15-21-22-26-29-33\
R-2-5\
5-1-2\
W T-1

PAID UP ADDITION RATES

Ages 61-96

[AGE]{.underline} [AMOUNT]{.underline}

61 \$17.19\
62 16.83\
63 16.48\
64 - 16.15\
65 15.83\
66 15.53\
67 15.24\
68 14.97\
69 14.71\
70 14.46\
71 - 14.23\
72 14.01\
73 13.80\
74 13.60\
75 13.40\
76 13.21\
77 13.03\
78 12.86\
79 12.70\
80 12.54\
81 12.39\
82 12.26\
83 12.12\
84 12.00\
85 11.88\
86 11.76\
87 11.64\
88 11.52\
89 11.40\
90 11.27\
91 11.14\
92 10.99\
93 10.82\
94 10.61\
95 - 10.35\
96 10.00

ft

May 12, 1980 M29-i, Part II\
change 16

CONTENTS

CHAPTER 6. DIVIDENDS

PARAGRAPH PAGE\
6.01 Dividend Rates 6-1\
6.02 Calculation of Dividends 6-1\
6.03 Processing by the System 6-3\
6.04 Updating Paid Dividend Information *6A\
*6.05 Authorizing Dividends Clerically 6-5\
6.06 Indebtedness Offset 66\
6.07 Invalid or Missing Data 6-7\
6.08 Erroneous Dividend Information 6-7\
6.09 Dividends on Lapsed Accounts 6-7\
6.10 Dividend Actions Involving Incompetent Insureds 6-8\
6.11 Actions Involving Interest Calculation and Adjustments 6-9\
6.12 Processing Requests for Withdrawal From Dividend Credit/Deposit
Balances 6-13\
6.13 Disposition of Dividend Credit/Deposit Balances 6-15\
6.14 Disposition of Dividends Under the Premium Option 6-16\
6.15 Dividends Widen Automatic Surrender is Pending 6-16\
6.16 Inquiries Concerning Check Information on Dividends 6-16\
6.17 Paid Dividend Information 6-17\
6.18 Preparing FL 4-162 or 4-163 6-19\
6.19 Paid Dividend Information for Tax Purposes 6-21\
6.20 Computer System Processing of Dividend Credit/Deposit With
Remittance to Pay Premiums or **Loan** 6-22\
6.21 U.S. Government Life Insurance Policy With Loan and Statutory Lien
6-22a\
6.22 Adjustment of NSLI Dividends Upon Reinstatement 6-22a\
6.23 Paid-Up Additions-Maximum Amount Edit 6-22a\
6.24 Inquiries on Payment of Dividends 6-22b

6-j

M29-1, Part II May 12, 1980

Change 16

CONTENTS-Continued

FIGURE PAGE\
6.01 Interest Year Factors for NSLI **Dividends** for Prior Years 6-22c\
6.02 4 Percent Interest Factors for Parts of a Year-l to 365 Days 6-23\
**6.03 4Y**4 Percent Interest **Factors** for Parts of a Year-l **to**
365 **Days 6-24\
**6.04 41A Percent Interest Factors for Parts of a Year-l to 365 **Days
6-25\
**6.05 **4**3**A** Percent Interest Factors for Parts of a Year-l **to
365 Days** 6-26\
6.06 5 Percent Interest Factors for Parts of a Year-l **to** 365
**Days** 6-27\
6.07 5Y**4** Percent Interest Factors for Parts of **a** Year-l **to**
365 **Days** 6-27\
6.08 5i\~ Percent Interest Factors for Parts of a Year-l **to** 365
**Days 6-29\
**6.09 53A Percent Interest Factors for Parts **of** a Year-l to 365
**Days** 6-30

iii

M29-1, Part II\
September 13, 1976 Change 13

CHAPTER 6. DIVIDENDS

6.01 DIVIDEND RATES

a\. Dividend rates are inserted in the master record by run 910. They
will be shown on \[VA Form 29.5886b, Insurance Record Printout\], of a
participating policy, in the dividend information field under flee
heading Rate

Per \$1000. When the dividend for the current year is paid, the dividend
rate is signed minus and remains in the master record until new rates
are inserted the following year by run 910.

a.l Dividends due on policies terminated by cash surrender, after the
policy anniversary up to the date of termination, will be paid at the
time of settlement. They will be computed in the same manner and at the
same monthly rate as regular dividends using the last years dividend
rate if the current rate is not available.

a.2 Dividends due after the policy anniversary date up to the date of
conversion or discontinuance of the term insurance will be paid at the
time of conversion or discontinuance of the policy. Last year s dividend
rate will be used if the current rate is not available.\]

b\. If a policy matures because of total and permanent disability or is
terminated by death or cash surrender before the dividend rates for the
current year have been inserted in the master record, a dividend due for
the current year will be paid at the rate \[of\] the prior year\'s
dividend.

c\. If a 626 pending dividend transaction for a future year is
established and paid in the current year, the rate will be the same as
for the current year.

d\. Rates for dividends are published in the M29-2 (NSLI) and M294
(USGLI) series.

6.02 CALCULATION OF DIVIDENDS

a\. Policies on a Premium-Paying Basis

\(l\) The factors for determining the amount of dividends are the:

\(a\) Plan of insurance;

\(b\) Effective year of issue;

\(c\) Age of insured on effective date of the policy;

\(d\) Monthly dividend rate per \$l ,000;

\(e\) Number of months the policy has been in force on a premium-paying
basis during the policy year.

\(f\) Amount of insurance in force during the policy year with the
following exception: On the modified life (plan 9 \[only l), the
dividend is payable for the full dividend year based on the amount of
insurance in force prior to the automatic reduction at ages \[65 and
70\].

\(2\) To obtain the amount of the dividend, multiply the monthly
dividend rate per thousand by the number of months the policy was on a
premium-paying basis during the policy year. The result, multiplied by
the face amount of insurance in thousands, is the amount of the dividend
payable.

b\. Reduced Paid-Up Insurance

\(l\) The factors for determining the amount of dividends are the:

\(a\) Plan of insurance;

6-1

M29-I, Part II September 13, 1976

Change 13

\(b\) **Attained age** of the insured; (Dividend year minus the year of
issue of the parent policy plus the age at issue of the parent policy.
Also, on **a** paid-up 20-year endowment, compute the year of maturity
as the year of **issue** of **the** parent policy plus 20 years).

\(c\) Number of months the contract was in force as paid-up insurance
during the parent policy dividend year;

\(d\) Amount of paid-up insurance;

\(e\) Monthly dividend rate per \$1 ,000 paid-up insurance.

\(2\) To obtain the amount of dividend, multiply the monthly dividend
rate by the number of months the insurance was in force as paid-up
insurance during the parent policy year. The result, multiplied by the
face amount in thousands of the paid-up insurance, is the dividend
payable.

c\. Extended Term Insurance Without Pure Endowment

**(l) The** factors for determining the amount of dividends **are the:**

**(a)** Attained **age of** the insured; (dividend year minus the year
of issue of the parent policy plus the age at issue of the parent
policy).

\(b\) Year of expiry of the extended term insurance;

\(c\) Number of full months the policy was in force as extended term
insurance during the parent policy year;

\(d\) Amount of extended term insurance;

**(e)** Monthly dividend rate per \$1,000.

\(2\) To obtain the amount of dividends, multiply the monthly dividend
rate per thousand by the number of months the policy was in force as
extended term insurance during the parent policy year. The result,
multiplied by the face amount of insurance in thousands, is the amount
of the dividend payable on the extended term insurance.

d\. Extended Term Insurance With Pure Endowment

\(l\) The factors for determining the amount of dividends for the
extended term insurance **are the:**

\(a\) Attained age of the insured; (dividend year minus the year of
issue of the parent policy plus the **age** at issue of **the** parent
policy).

\(b\) Year of maturity of the extended term insurance;

**(c)** Number of **full** months the policy was in force as extended
term insurance during the parent policy year;

\(d\) Net amount of insurance (the amount of extended term insurance
minus the pure endowment amount);

**(e)** Monthly dividend rate per \$1 ,000.

\(2\) The factors for determining the amount of dividends for the pure
endowment are the:

**(a) Plan of** insurance (parent policy);

\(b\) Attained age of the insured; (dividend year minus the year of
**issue of** the **parent** policy plus the age at issue of the parent
policy).

6-2

September 13,1976 M29-1, Partll\
Change 13

\(c\) Number of full months the policy was in force as extended term
insurance during the parent policy year;

\(d\) Monthly dividend rate from the paid-up endowment table;

\(3\) To obtain the amount of dividend payable on the:

\(a\) Extended Term insurance. Multiply the monthly dividend rate by the
number of full months the policy was in force as extended term insurance
during tile parent policy year. The result, multiplied by the net amount
of insurance in thousands, is the amount of dividend payable on the
extended insurance.

\(b\) Pure Endowment. Multiply the monthly paid-up endowment dividend
rate by the number of full months the policy was in force as extended
term insurance during the parent policy year. The result, multiplied by
the amount of pure endowment in thousands, is the amount of dividend
payable on the pure endowment.

6.03 PROCESSING BY THE SYSTEM

a\. Dividends are authorized from the master record on policy callup
code 606 and from pending transactions on callup code 626. Annual
interest is added to dividend credit balances on callup code 401 and to
dividend deposit balances on callup code 403. Selection dates for these
computer-generated actions are shown in MP-6, part II, supplement No.
1.2, chapter 2.

b\. When the callup date is reached, the system will authorize the
dividend due and record a 606 or 626 transaction on the transaction
history list. When the dividend is paid from the master record, the
dividend year is updated if the dividend authorized matches the year in
the master record as the next dividend due. When the dividend authorized
does not match the year in flee master record as the next dividend due
or when the dividend is authorized from a 626 pending transaction, the
dividend year is not updated. However, an X is recorded in the paid
dividend information field to indicate that history from the transaction
history list is required. (See par.6.04 for updating paid dividend
information.)

c\. If the dividend option is cash, premium, deposit, paid-up additions
or LOLI (Loan/Lien) and a lien is on tape the system will withhold an
amount to pay a premium lien if one exists on the policy on which the
dividend was earned or an overpayment lien if one exists on either of
two policies. lt will record the net amount of the dividend and an X in
the paid dividend information field. An internal transaction type 311 is
created on the amount withheld for payment of the lien. When that
transaction is processed by the system, the lien segment is updated and
a receipt is generated. When an off-tape indebtedness exists, the system
establishes the dividend as a pending disbursement and generates an RPO
with reason code 602.

d\. Dividends are disposed of as indicated below:

\(l\) Cash Option. Transactions are entered on a disbursement tape
unless the master record indicates that the insured is incompetent and
no guardian has been appointed or that mail has been returned as
undeliverable. When only the incompetency bit is on, the dividend is
made pending. An RPO, reason code 605, is generated. When the return
mail bit is on, the system establishes the dividend as a liability and
generates an RPO, reason code 616.

\(2\) Premium Option. An internal transaction type 210 214, 218, or 219
is created for application of dividends to premiums. When the dividend
is automatically applied, the system generates VA Form 29-5885,
Information About Your Insurance.

\(3\) Credit or Deposit Option. The dividend together with interest on
an existing dividend credit or deposit balance, is added to **the**
dividend credit or deposit balance and VA Form 29-4459, Dividend
Deposit/Credit Statement is generated.

6-3

**M29-1, Partll September 13, 1976**

**Change 13**

\(4\) Indebtedness Option. An internal transaction type 312 is created
if the dividend is to be credited to the loan or lien balance, and VA
Form 29-1461, Payment Receipt, is generated when that transaction is
processed. If the dividend is more than sufficient to pay the
indebtedness, the part of the dividend remaining is created as a
dividend credit and a VA Form 294459 is generated. The system will
change the option to credit at the time the next dividend is authorized
if all indebtednesses have been liquidated.

\(5\) Paid-up **Additions Option. This option is** available to NSLI
(National Service Life Insurance) **policies only. An internal
transaction type** 608 **is created to apply the dividend as a single
premium at the attained** age of the **insured to purchase paid-up
additions.** The paid-up additions are compatible **with the basic
policy; i.e., paid-up** life **additions on life policies including**
5-LPT **insurance and paid-up** endowment **additions that** mature
**with the basic endowment policy.** A VA Form 29\~668, Statement of
**Paid-up Additions, is prepared and** released **to the insured by the
computer system.** It **provides the previous amount** of paid-up
**additions, amount of current dividend, the amount** of **paid-up
additions purchased by the current dividend and the new amount(s)** of
paid-up additions.

e\. The system also maintains dividend credit or deposit accounts.
Interest is capitalized annually, immediately prior to adding the
current year\'s dividend. If the dividend option is other than credit or
deposit but there is a dividend credit or deposit balance, interest is
capitalized on policy callup 401 for dividend credit or 403 for dividend
deposit on the policy anniversary date plus I month. VA Form 294459 is
generated to advise the insured of the addition of dividend and/or
interest.

f\. Withdrawal from credit or deposit accounts at the request of the
insured for payment in cash, for application as premiums, or for payment
of lien or loan indebtedness must be clerically initiated. However, the
system will automatically withdraw amounts from dividend credit to
prevent lapse provided there are no more than two policies. In such
cases, the system will compute interest on the amount withdrawn, adjust
the dividend credit balance, adjust the general ledger account, and
generate a notice to the insured.

g\. If the system encounters a condition which prevents it from
completing an action or when programs -j indicate that clerical action
is required, an RPO will be generated. The reason code will be in the
200, 300, 400 or

600 series, and **the definitions** of **the** codes **are in MP-6,**
part II, supplement No. 1.4, **chapter** l.

6.04 UPDATING PAID DIVIDEND INFORMATION

a\. When inserting a new record of a participating policy on tape, in
addition to the input to insert the master or the new policy, VA Form
29-395, Paid Dividend Input Card, or 29-8528, Paid Dividend/Dividend
History, is prepared to expand the master record to accept paid dividend
information for 2 years. When a dividend is authorized, the system
records paid dividend information in the current paid dividend
information field and updates the dividend year for the next dividend
due. When the dividend for that year is authorized, the system will take
the following actions:

\(I\) Update the dividend year in the next dividend due field.

\(2\) Delete information previously recorded in **the prior paid
dividend information** field.

\(3\) Transfer information **in** the **current paid dividend**
information field to **the prior paid dividend information** field.

\(4\) Record the current transaction in the current paid dividend
information field.

**b. When dividends** are authorized in an orderly sequence, the RPO
will **show 3 dividend** years **in descending sequence as shown**
below:

\(I\) The **year** for which **the** next **dividend is due in the
dividend** information field.

\(2\) The year for which the last dividend was authorized in the current
paid dividend information field.

6A

September 13,1976 M29-I, Part II fl\
Change 13

\(3\) The year for which the previous dividend was paid in the prior
paid dividend field.

c\. **The** system will not process a VA Form 29-394, Dividend
Transaction Input Card, or VA Form 29-8528, showing a dividend year
higher than the year shown in the master record as the dividend year for
which the next dividend is due. It will process a properly completed
form if the dividend year on the authorizing document is the same as, or
lower than, the year shown in the master record as the next dividend
due. For example, the master record shows the next dividend due as
1(1971). The system will process a VA Form 29-394 or 29-8528 showing the
dividend year as 1971,1970, etc. It will not process the authorizing
document showing the dividend year as 1972, 1973, etc.

d\. When the dividend year on the authorizing document matches the
dividend year in the master record as the next dividend due, the system
will update the year the next dividend is due unless the authorizing
document indicates the dividend being authorized is a supplemental
dividend. It will also delete information previously

August 31,1971 M29-1, Part II\
Change 3

recorded in the prior paid dividend information field, transfer
information in the current paid dividend information field to the prior
paid dividend information field, and record the current transaction in
the current paid dividend information field. This may create the
situation where there is a skip year in the paid dividend information;
such as, the next dividend due is shown as 1971, the current paid
dividend information is for 1970, and the prior paid dividend
information is for 1968.

e\. When the dividend year on the authorizing document is between the
dividend years in the paid dividend information fields, the system will
record the processing day number in the transaction date field and an X
in the history required field for current paid dividend information.
Paid information is recorded only on the transaction history.

f\. When a supplemental dividend is being authorized and the dividend
year on the authorizing document matches the dividend year in the
current or prior paid dividend information field, **the** system will:

\(1\) Record the transaction in the area affected by adding the
supplemental dividend and the number of months involved to information
previously recorded.

\(2\) Record an X in the history required field and update the
transaction date in the current paid dividend information field and also
in the prior paid dividend information field, if that area is affected.

g\. When the dividend year on the authorizing document is prior to the
earliest dividend recorded in the master record, processing by the
system is as indicated below:

\(1\) Where both the current and prior paid dividend information fields
are blank, the system will record the current transaction in the current
paid dividend information field regardless of the dividend year
involved.

\(2\) Where only the prior paid dividend information field is blank, the
system will record the transaction in\
-
thatfieldprovidedthedividendyearislyearlowerthanthedividendyearinthecurrentpaiddividendfield.lt

will also update the transaction date and history fields in the current
paid dividend information field.

\(3\) When neither the current nor prior paid dividend information field
is blank, the paid information for an earlier year is recorded only on
the transaction history. The transaction date and history required
fields in the current paid dividend information field are updated to
provide a history trail.

h\. When the dividend is for an inactive account which is not on tape
and there is an active account on tape for the same insured, the system
will record paid dividend information only on the transaction history.
lt will also update both the history required and transaction date
blocks in the current paid dividend information field of the policy
having the lowest last three digits, provided it is a participating
policy. If **the** policy with the lowest last three digits is not a
participating policy, the transaction will be rejected. In these cases
the dividend will be authorized off-tape, and a copy of the VA Form
24-706, Notice of Refund, will be stamped Ready for File, signed, dated
and will be filed in the insurance folder.

6.05 AUTHORIZING DIVIDENDS CLERICALLY

a\. Dividends for the current year or the year immediately preceding the
current year are usually authorized by the system. Dividends for earlier
than last year must always be clerically calculated.

b\. VA Form 29-394 or 29-8528 is used to manually authorize a dividend,
insert a pending dividend transaction for immediate payment or for
payment at a future date, or reverse all or part of a prior paid
dividend. These input documents must be sent to the Voucher Audit Unit
for assignment of a T batch number. Transaction type 646 is excluded
from the T batch number control.

c\. Before authorizing a dividend for a prior year, a review will be
made to insure that the dividend in question was earned. A search will
also be made for paid dividend information. If it is determined that the
dividend is due,

6-5

M29-1, Part ll August 31, 1971

**Change 3**

the dividend rate will be obtained **from** the appropriate table. If
more than I year\'s dividend **is involved** which requires the use of
the same dividend control account number, only one VA Form 29-394 or
29-8528 is required. The VA Form 29-394 or 29-8528 will be used only for
accounting actions within the system. If there is an indebtedness to be
deducted from the amount payable and **the** indebtedness is on **the**
master record, a VA Form 29-5894a, Optional Segment Input, or 29-8525,
Dividend/Loan/Lien, will be required to update the lien segment and take
accounting action. If the indebtedness is off-tape, the procedure for
processing off-tape indebtedness is applicable. If only part of the
dividend was required to pay the indebtedness, the remainder of the
dividend will be disposed of under the option of record.

d\. Where the option is cash, a VA Form 29-5895a, Pending Transaction
Input, or 29-8526, Pending Transaction, will be prepared to insert the
amount to be refunded as a 609/609 pending disbursement.

e\. If the prior year dividend being authorized **is** for 1952 or later
and was earned under the credit or deposit option, interest is due and
payable. Interest year factors for dividends for prior years are in
figure 6.01. VA Form 29-5894a or 29-8525, transaction type 084, will
**be** prepared to update the credit or deposit segment and adjust
interest.

f\. When it is necessary to insert multiple VA Forms 29-394 or 29-8528
to authorize current, supplemental, and/or prior year unpaid dividends
simultaneously, it is often necessary to control the sequence of the
input cards. Before determining whether or not it **is necessary** to
control sequence on a given case, review the actions the system will
take in paragraph 6.04 of this manual.

**g.** Where there is no master record on tape, VA Form 29-394 or
29-8528 twill be (prepared and forwarded to **the** Voucher Audit Unit
for vouchering off-tape.\]

**h.** After preparation of the input documents, they and related
material will **be sent to** Voucher Audit Unit for **review.**

6.06 INDEBTEDNESS OFFSET

a\. Overpayment liens are deductible from dividends due on any of the
insured\'s contracts without his consent and premium liens are
deductible from dividend on the policy on which the indebtedness exists
without the **insured\'s** consent. Where the dividend **option is cash,
premium,** or deposit, offset action is taken at **the time the**
dividend is authorized. Where the dividend option is credit, action is
not taken to offset an indebtedness unless the insured requests a
withdrawal from the dividend credit balance. If an **insured** requests
withdrawal from **dividend** credit or deposit balances from which an
indebtedness will be collected, he will be given an opportunity to
withdraw his request.

**b.** The system **is not** programed to collect an overpayment lien
from dividends when there are more than two **policies, or if** the
other indebtedness bit is on. It is programed to authorize the dividend
**as** a pending disbursement with a 609 transaction type and 970
callup, debit the proper dividend account and credit 16, unapplied
collection-offset account.

c\. Clerical action **is** required to complete the transaction. If the
lien is interest-bearing, interest must be manually calculated. If
**the** lien is off-tape, it will also be necessary to determine if the
indebtedness can be deducted from the dividend without the consent of
the insured. (M29-l, pt. I, ch. 9)

d\. If all or part of **the** dividend is required to offset an on-tape
indebtedness, the following forms will be prepared:

\(l\) VA Form 29-5895a or 29-8525, transaction type 098, to delete the
pending transaction.

\(2\) VA Form 29-5894a or 29-8525, transaction type 086, to update the
lien segment.

6-6

M29-1, Part II\
Febuary 13, 1979 Change 15

**(3) VA Form 29-1461.** Include the message that the lien payment
amount was deducted from the dividend payable.

e\. When only a part of the dividend is required to pay the lien, the
remainder will be disposed of under the option of record and the insured
notified. If that amount is less than \$1 and the option is cash, credit
it to the premium segment as an overage instead of initiating
disbursement.

f\. If all or part of the dividend is required to offset an off-tape
indebtedness, follow the current procedure for processing an off-tape
indebtedness.

6.07 INVALID OR MISSING DATA

The dividend may appear as a pending dividend transaction with
transaction type 626. When the dividend has not been paid because of
invalid or missing data in the pending transaction, VA Form 29-5895a or
29-8526 will be prepared to delete the erroneous transaction and insert
a correct one with transaction type 626. When the system calculates and
disburses the pending dividend transaction, it will update the paid
dividend information.

6.08 ERRONEOUS DIVIDEND INFORMATION

a\. When the dividend has not been paid because of erroneous dividend
information in the master record, VA Form 29-5892a, Policy Input
\[Card\], or 29-8522 (Doc 02), Policy, transaction type 082, will be
prepared to insert the correct information. These forms are also
prepared when it is necessary to clerically \[ \] adjust the months not
paid for dividend purposes, or update the dividend year on the master
record. It may also be required to correct policy information which may
be causing a policy freeze.

*\[NOTE: The system will enter* dividend rates whenever necessary. In
those rate cases for which a system rate is not available *(RC 670),*
the rate *will be clerically* inserted with a *3T* batch and forwarded
to the Voucher Audit activity for review.\]

b\. Daunting the dividend year will cause the system to process the
dividend due the year immediately preceding the current year\'s
dividend. However, daunting is restricted to those cases in which the
dividend year has been erroneously updated and requires a VA Form
29-5892a or 29-8522, together with a memorandum stating the reason for
daunting. The input and memorandum will be sent to the Voucher Audit
activity for review.

6.09 DIVIDENDS ON LAPSED ACCOUNTS

a\. When the dividend option is cash on a how paid l (excluding death
cases) or a how paid 4 account, the system will authorize the dividend
under that option regardless of the number of policies. When the
dividend option is premium, credit or deposit, the system disposes of
the dividends as indicated below:

\(1\) How Paid 1\
Option Single Policy Cases Multiple Policy Cases\
Premium Pay as cash Pending disbursement, 970 callup\
Credit Pay as cash Pending disbursement, 970 callup\
Deposit Pay as cash Pay as cash. Edit not made for other\
policies.

\(2\) How Paid 4\
Option Single Policy Cases Multiple Policy Cases

Premium Pay as cash Authorize as PL 36\
Credit Pay as cash Authorize as PL 36\
Deposit Pay as cash Pay as cash. Edit not made for other\
policies.

6-7

**M29-1, Part II February 13, 1979**

**Change 15**

b\. On term policies, the number of months for which a dividend **is**
not due **is** inserted in the master record (effective August 24,
1966).

c\. The dividend option on a lapsed account **is** not changed **by**
the system, and clerical action should not be taken to change the option
without a valid request. An RPO will be generated if the number of
months for which a dividend is due if final lapse time exceeds 11. In
such cases, examine the dividend year and dividend months not paid to
determine the actual error condition. If it is necessary to adjust the
number of months not paid for dividend purposes, prepare VA Form
29-5892a or 29-8522, transaction type 082. If the dividend condition is
correct, take final lapse action clerically.

**d.** When a dividend on a how paid 1 account is authorized as a
pending disbursement because there are other policies, the following
action will be taken:

\(I\) Transfer the amount to an active account as a dividend credit if
the dividend option is credit and release VA Form 29-4459.

\(2\) Refund any amount due after deducting an indebtedness eligible for
setoff by the payment of dividend if the dividend option is premium.

e\. When a dividend on **a** how paid **4** account is authorized as
dividend credit because there are other policies, retain the credit as
long as dividends are payable. If the policy matures or is surrendered
for cash, the credit will be included in any amount payable. When the
extended term insurance expires, transfer the credit to any other active
account of the insured\'s as dividend credit or refund it if there are
no policies in force.

f\. The loan/lien option applies to indebtedness on any of the
insured\'s contracts unless he or she has specified otherwise. If the
master record indicates that no indebtedness exists, the system will
authorize the dividend as a dividend credit and change the option
accordingly.

6.10 DIVIDEND ACTIONS INVOLVING INCOMPETENT INSUREDS

a\. The system will automatically disburse payments under the cash
option to the legal guardian of an incompetent policyholder if the
amount is less than \$350 and it is not a Philippine fiduciary account.
An RPO with reason code 672 will be generated for clerical preparation
of VA Form 29-504, Notice of Payment Due Incompetent Veteran.

b\. The system will establish the dividend as a pending disbursement and
generate an RPO with reason code 603 on Philippine fiduciary accounts
and on amounts of \$350 or more.

\(1\) If the account is a Philippine fiduciary account, prepare VA Form
29-5895a or 29-8525, transaction type 098, to delete the pending
disbursement, and prepare a VA Form 4-706 to initiate the refund to the
fiduciary in care of the Veterans Services Officer, Manila regional
office.

\(2\) When the amount of the dividend is [350]{.underline} or more,
examine the insurance folder to determine if a current certificate of
guardianship (within 6 months) is of record. If not, prepare VA Form
29-505, Request for Information, to the Veterans Services Officer of the
appropriate regional office requesting current certification. If

J a current certificate is of record or is received, initiate [off
tape]{.underline} refund.

c\. A dividend transaction will be rejected (reason code 604) or a
dividend authorized and made pending (reason code 605) if the master
record indicates that the insured is incompetent, but does not show that
a guardian has been appointed. VA Form 29-505 will be prepared and
released to the Veterans Services Officer of the appropriate regional
office, and VA Form 29-5895a or 29-8526 will be prepared to insert a
90-day diary with the message 505.

6-8

M29-1, Part II

Advance Manual Change No. 3-84 September 14, 1984

[Chapter 6]{.underline} - [Dividends]{.underline}

A. [Change:]{.underline} M29-1, Part II, Chapter 6. This Advance Manual
Change should\
clarify the use of the Video Display Terminals (VDT) when there\
is a refund of \$350 or more due an incompetent veteran.

B. [Procedure]{.underline}: Page 6-8, delete subparagraphs 6.l0b(2) and
6.IOc in their entirety and insert the following:

\(2\) When the amount of refund is \$350 or more, examine the insurance
folder to determine if a current certificate of guardianship (within six
months) is of record. If not, obtain a MINQ printout from the VDT. If
the printout does not provide the necessary information, prepare and
release a VA Form 29-505 to the Veterans Services Officer **of** the
appropriate Regional Office. A **VA** Form 29-5895a or 29-8526 will be
prepared to insert a 90-day diary with the message 505, if necessary. If
a current certification is of record, or is received, initiate an
off-tape refund.

c\. A dividend transaction will be rejected (reason code 604) or a
dividend authorized and made pending (reason code 605) if the master
record indicates that the insured is incompetent, but does not show that
a guardian has been appointed. A MINQ printout will be obtained from the
VDT. If the printout does not provide the necessary information, prepare
and release a VA Form 29-505 to the Veterans Services Officer of the
appropriate Regional Office. A VA Form 29-5895a or 29-8526 will be
prepared to insert a 90-day diary with the message 505, if necessary.

C. New or Revised

[Insurance Forms]{.underline}: None

ROBERT W. CAREY

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
310/291 111\
310/Library 1\
203/SDA 2\
CO/311D 2

M29-1, Part II

Advance Manual Change No. 7-83 \~\~\~\~\~ 27, 1983

[Chapter 6]{.underline} - [Dividends]{.underline}

A. [Change:]{.underline} M29-1, Part ll, Chapter 6.\
B. [Procedure:]{.underline} Delete paragraph 6.11a in its entirety and
substitute the following:

a\. The system will generate an RPO for clerical action if it encounters
a condition which prevents it from calculating interest. When
withdrawals are made from dividend credit or deposit accounts clerically
for payment to the insured, it will be necessary to clerically calculate
interest on the amount withdrawn from the prior policy anniversary date
to the date the withdrawal is processed. The postmark date will be the
transaction date on withdrawals for payment of premiums or loan/lien
indebtedness. When computing interest for less than a full policy year,
daily interest factors based on the annual interest rate will be use(L

\(1\) The 1982 interest rates were as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum. (b) NSLI (?vvv?
prefixed policies) 7 3/4% per annum.\
a (c) \"RS and W\'? prefixed policies 7% per annum.\
(d) \"J, JR, JS\" prefixed policies - 8% per annum.

\(2\) The 1983 interest rates are as follows:

(a). USGLI (1,K\" prefixed policies) - 7% per annum.\
(b) NSLI *(\`V\'* prefixed policies) - 8% per annum.\
(c) \"RS and W\" prefixed policies - 7 1/4% per annum.\
(d) \"J, JR, JS\" prefixed policies - 8 1/2% per annum.

[NOTE]{.underline}: The daily interest factors for the above policies
effective January 1, 1983 are in figures 6.13, 6.14, 6.17 and 6.18.

C. New or Revised

[Insurance Forms]{.underline}: None

ROBERT W. CAREY

Assistant Director for In Insurance

[DISTRIBUTION]{.underline}:

335/29 80\
310/290 55\
310/291 200

M29-1, Part II

Advance Manual Change No. [12n4]{.underline} November 1, 1984

[Chapter 6]{.underline} - [Dividends]{.underline}

A. [Change:]{.underline} M29-1, Part II, Chapter 6.\
B. [Procedure:]{.underline} Delete paragraph 6.11a in its entirety and
substitute the following:

a\. The system will generate an RPO for clerical action if it encounters
a condition which prevents it from calculating interest. When
withdrawals are made from dividend credit or deposit accounts clerically
for payment to the insured, it will be necessary to clerically calculate
interest on the amount withdrawn from the prior policy anniversary date
to the date the withdrawal is processed. The postmark date will be the
transaction date on withdrawals for payment of premiums or loan/lien
indebtedness. When computing interest for less than a full policy year,
daily interest factors based on the annual interest rate will be used

\(I\) The 1984 interest rates were as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum.\
(b) NSLI (\"V\` prefixed policies) - 8.50% per annum.\
a (c) \"RS and W\" prefixed policies - 7.75% per annum.\
(d) \"J, JR, JS\" prefixed policies - 9.00% per annum.

\(2\) The 1985 interest rates are as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum. \~\
(b) NSLI (\`V\' prefixed policies) - 9.00% per annum.\
(c) \"RS and W\" prefixed policies - 8.25% per annum. \~\
(d) \"J, JR, JS\" prefixed policies - 9.50% per annum.

[NOTE]{.underline}: The daily interest factors for the above policies
effective January I, 1985 are in figures 6.13, [6\~t\~]{.underline},
\~L, \~\~\~£\` ?,•\~,

4\"\~ \~\"\~,\`-\`,\~

C. New or Revised

[Insurance Forms]{.underline}: None

Robert W. CAREY

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
y310/291 111\
310/Library 1\
203/SDA 2\
CO/311D 2

M29-1, Part II

Advance Manual Change No. 7-85 November 15, 1985

[Chapter 6-Dividends]{.underline}

A. [Change:]{.underline} M29-1, Part **II,** Chapter 6.

B. [Procedure]{.underline}: Delete paragraph 6.11a in its entirety and
substitute the following:

a\. The system will generate an \~1P0 for clerical action if it
encounters a condition which prevents it from calculating interest. When
withdrawals are made from dividend credit or deposit accounts clerically
for payment to the insured, it will be necessary to clerically calculate
interest on the amount withdrawn from the prior policy anniversary date
to the date the withdrawal is processed. The postmark date will be the
transaction date on withdrawals for payment of premiums or loan/lien
indebtedness. When computing interest for less than a full policy year,
daily interest factors based on the annual interest rate will be used.

\(l\) The 1985 interest rates were as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum.\
(b) NSLI (\"V\" prefixed policies) - 9.00% per annum.\
a (c) \"RS and W\" prefixed policies - 8.25% per annum.\
w (d) \"J, JR, JS\" prefixed policies - 9.50% per annum.

\(2\) The 1986 interest rates are as follows:

\(a\) USGLI (\"K\" prefixed policies) - 7% per annum.\
(b) NSLI (\"V\" prefixed policies) - 9.25% per annum.\
(c) \"RS and W- prefixed policies - 8.75% per annum.\
(d) \"J, JR, JS\" prefixed policies - 9.75% per annum.

[NOTE]{.underline}: The daily interest factors for the above policies
effective January 1, 1986, are in figures 6.13, 6.18a, 6.19a, and 6.21.

C. New or Revised

[Insurance Forms]{.underline}: None

F. KO N

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
310/291 **111\
**310/Library 1\
203/SDA 2\
C0/311D 2

May 12, 1980 M29-1, Part 11\
Change 16

d\. The Veterans Services **Officer will furnish** the forwarding office
a certification of a fiduciary, if appropriate; otherwise, his or her
recommendation that appointment of a fiduciary is not in order. Upon
receipt of **the** Veterans Services Officer\'s

4 certification or report, appropriate award action will be taken. If
authority is not granted, action **will** be taken **to** delete the
pending disbursement and establish a liabffity record.

e\. An **RPO,** reason code 471, will be generated and a request for
withdrawal from a dividend credit or deposit balance will be rejected if
the insured is incompetent. **If** the request is from a legal guardian
or the request is a valid one, prepare VA Form 29-5894a or 29-8525 to
adjust the dividend credit or deposit balance and VA **Form 4-706 to**
initiate an off-tape refund.

6.11 ACTTIONS INVOLVING INTEREST CALCULATION AND ADJUSTMENTS

a\. The system will generate an **RPO for** clerical action if it
encounters a condition which prevents **it** from calculating interest.
When withdrawals are made from dividend credit or deposit accounts
clerically for payment to the insured, it will be necessary to
clerically calculate interest on the amount withdrawn from the prior
policy anniversary date **to** the date the withdrawal is processed. The
postmark date will be the transaction date on withdrawals for payment of
premiums or loan/lien indebtedness. When computing interest for less
than a full policy year, daily interest factors based on the annual
interest rate will be used. The current interest rate is \[5 3/4\]
percent per annum on **USGLI** \[and NSLI dividends. The daily interest
factors for **USGLI** and NSLI dividends are in figure 6.09\].

b **Computing accumulated interest or adjusting interest.** After
determining that interest has been added through the latest interest
year, proceed as indicated below:

\(1\) Convert the transaction date (month and day) for a withdrawal or
adjustment of dividend interest into the corresponding day number.

\(2\) Determine the day number of the latest policy anniversary date
(month and day) to which interest on the dividend credit or deposit has
been calculated and subtract from the day number.

\(3\) Compare the year of the transaction date with the policy
anniversary year to which interest on the dividend credit or deposit has
been calculated. The interest adjustment will be made as follows:

\(a\) If the years are equal, proceed to subparagraph (4) below.

\(b\) If the year of the transaction date is later than the year of the
policy anniversary date, add 365 to the day number of the transactions
date (see subpar. (l) above) and proceed to subparagraph (4) below.

\(c\) If the policy anniversary year (see subpar. (2) above) is later
than the year of the transaction date, add 365 to the day number of the
policy anniversary date.

\(4\) Subtract the day number, minus one, of the policy anniversary date
from the day number of the transaction date.

**Day** No. of Transaction +xxx\
Day No. -1 of Policy Anniversary Date -XXX\
(plus) + or (minus) - XXX Elapsed Days

*NOTE: If* the elapsed days is a plus figure, accumulated interest is
due the dividend credit or deposit account. *If* the elapsed days is a
minus figure, the excess interest must be reversed and removed from the
account.

\(5\) Obtain the interest factor from the appropriate Daily Interest
Factor Chart corresponding to the number of elapsed days obtained in
subparagraph (4) above.

• (6) Multiply the amount of dividend credit or deposit being used to
pay premiums by the daily interest factor for the number of elapsed
days. This result **will** be rounded to the nearest cent. The result
will be:

6-9

M29-1, Part II May 12, 1980

Change 16

**(a)** Accumulated interest if the elapsed **days** figure was plus.

**(b)** Interest adjustment if the elapsed days figure was minus.

Example A:

FV 9876543 V 9876543\
**Requested** Withdrawal (Transaction Amount) \$37.65

Postmark Date of Request

(Transaction Date March 1 I, 1970

Dividend Credit-Policy Anniversary Date October 17\
Dividend Credit Interest Year 69\
Dividend Credit Balance \$87.24\
Present Amount of Accumulated Interest \$ 0.00

**Answer:**

Transaction Date (March 11) is DN (day number) 70

Anniversary Date - l (October 17-l) is DN 289

Transaction Year (70) Later Than Policy Anniversary Interest Year (69)

Day No. of Transaction Date 70\
Plus [365]{.underline}

Augmented DN 435

Transaction Date (Augmented DN) 435

Policy Ann. Date (DN)

Elapsed **Days 146\
**Interest Factor for 146 Elapsed Days is 0160

\$37.65 (Transaction Amount X .0160 (Elapsed Days Interest Factor)) is
.602. This amount will be rounded **by** adding 1 cent to the result if
the figure in the third place after the decimal is 5 or higher.

\$87.24 Dividend Balance \$0.00 Old Accumulated Interest\
[37.65]{.underline} Withdrawal Amount [0.60]{.underline} New Accumulated
Interest

\$49.59 New Balance \$0.60 Total Accumulated Interest

6-10

January 15,1971 M29-1, Part II

Example B:

Facts: Addition of Annual Interest

FV 9876543 V 9876543

Annual Interest Addition Due 1970

Dividend Credit-Policy Anniversary Date October 17\
Old Dividend Credit Interest Year 69

dividend Credit Balance \$49.59\
Present Amount of Accumulated Interest \$ 0.60

\$49.59 (Dividend Credit Balance) X 4% (Annual Interest Rate) Plus
\$0.60 (Accumulated Interest) is \$2.58

(Annual Interest)

\$49.59 \$1.983\
[x .04]{.underline} [+0.60]{.underline}

\$1.9836 \$2.583 This amount will be rounded.

\$49.59 Old Balance

+2.58 Interest

\$52.17 New Balance

\$0.00 New Accumulated Interest

Example C:

Facts: Request for Withdrawal by Insured Resulting in Interest Reversal

Request Withdrawal (Transaction Amount) \$25.00\
Postmark Date of Request (Transaction Date) 12-28-69\
Dividend Credit-Policy Anniversary Date January 3\
Dividend Credit Interest Year 70\
Dividend Credit Balance \$94.17

Present Amount of Accumulated Interest \$ 0.00\
**Answer:\
**Transaction Date, December 28, is DN 362\
Policy Anniversary Date January 3-I is 002\
Policy Anniversary Year (70) is later than Transaction Year (69)

Policy Anniversary Year Day Number 002 plus 365 is 367

DN of Transaction Date 362\
Augmented Policy Anniversary DN [367]{.underline}

.5 Elapsed Days for Interest Adjustment (Reversal)

-11

**M29-1,Part II January 15,1971**

**4% Interest Factor for** 5 **days is** .0005

\$25.00 (Transaction **Amount) X** .0005 (Elapsed Days Factor) Equals
.012 or .01 cent

\$25.00 Amount of Withdrawal \$94.17 Old Balance\
[+.01]{.underline} Interest Adjustment [-25.01]{.underline} Withdrawal
Total

\$25.01 Total **Withdrawal** \$69.16 New Balance

*b*

c\. When the **month and day in** the **dividend** segment do not
**agree with** the policy effective **date,** the **first step is** to
determine **if interest was due and not added at** the time of the
contract **change.** If this is the **case, it** will be necessary to
examine the **account to** determine **if any dividend credits** were
**withdrawn since** the **contract change.** (They **must be added to**
the **current dividend balance in making** the interest adjustment.)

**(l)** To determine if interest **is** to be **added** or **subtracted,
compare** the policy effective date with **the** interest through date.

**(a) If** the interest through **date is** earlier than the **new
policy** effective date, the difference between the 2 dates **represents
the number** of **months** for **which** interest **is due,** e.g.,

616 **month number** for policy effective **date**

[615]{.underline} month **number for interest** through date

**1 month** for **which** interest is due.

**(b) If the interest** through date is later than the new policy
effective date, the difference **between** the 2 dates

representsthenumberofmonthsforwhichinterestshouldbereversed;e.g., .

616 month **number** for interest through date

[615]{.underline} **month number** for policy effective date

1 **month** for **which interest must be reversed.**

\(2\) To compute the amount of interest:

\(a\) Select factor for **number** of **months interest must be added**
or reversed.

\(b\) Multiply dividend credit balance existing **on** effective date of
contract change **by that** factor. The result **is** the amount of
**interest** to be **added** or reversed.

L (3) To make an interest adjustment or to correct the interest through
date **on** the master **record, prepare** VA

Form 29-5894a or 29-8525 (transaction type 084). The amount **in** the
control fields will be the amount of interest **being added or**
reversed or zeros **when the amount** of **interest is** less than 1
cent (no interest adjustment). The appropriate control accounts are
listed **below:**

Columns

Interest Addition or

VA Form VA Form No Interest Adjustment **Interest Reversal\
**29-5894a 29-8525

54-55 PRIN. Debit 39 Debit 11\
57-58 PRIN. Credit 11 **Credit** 39\
6667 INT. Debit **40** Debit 39\
69-70 INT. **Credit** 39 **Credit 40**

**6-12**

M29-1, Part II\
February 13, 1979 Change 15

d\. The transaction date in the pending dividend transaction
(transaction type 400 or 402) is different from the interest through
date in the dividend credit/deposit segment; or different from the last
anniversary date of the policy.

\(l\) The pending transaction must be deleted from the pending
transaction area and added to the dividend credit or deposit segment. If
the pending dividend should have been part of the dividend credit or
deposit segment at the time the last dividend was authorized, an
interest adjustment is required. An interest adjustment is not required
if the pending dividend has a transaction date which is within the
current dividend year.

\(a\) **Example:** The transaction date in the pending dividend is June
I, 1970. The effective date of the policy is December 1. A dividend will
not be due until December l, 1970. The interest year for the dividend
segment must be 1969. An interest adjustment is not necessary if the
pending transaction is added to the dividend credit/deposit segment
before the 1970 dividend is authorized.

\(b\) **Example:** The transaction date in the pending transaction is
June 1, 1969, and the effective date of the current policy is January 1.
The 1970 dividend has been authorized, and the interest year is 1970. If
flu pending transaction had been processed in June 1969, the amount of
that transaction would have been part of the dividend segment on January
1, 1970. As part of that segment, it would have been entitled to annual
interest on January 1, 1970. An interest adjustment is required if the
pending transaction is added to the dividend credit/deposit segment
after January 1, 1970.

\(2\) To compute the interest, multiply the amount of the pending
dividend transaction by the appropriate interest factor. Four percent
per annum daily interest factors are in figure 6.02 and 4% percent per
annum daily interest factors are in figure 6.03.

\(3\) To update the master record, prepare VA Form 29-5894a or 29-8525.
Use transaction type 084 if a dividend credit/deposit segment is a part
of the current policy. Use transaction type 004 if a segment must be
created. The amount in the control field will be the difference between
the balance shown on the RPO and the amount shown in the pending
transaction plus the dividend balance on the RPO; plus interest
calculated, if any. The appropriate control accounts are 39 and 11. If
interest is being added, debit 40 and credit 39 for the amount of
interest involved.

\(4\) VA Form 29-5895a or 29-8525, transaction type 098, must also be
prepared to delete the pending dividend transaction. The control
accounts will be a debit to 17 and a credit to 39.

6.12 PROCESSING REQUESTS FOR WITHDRAWAL FROM DIVIDEND CREDIT/DEPOSIT
BALANCES

a\. **Determining Validity of Request.** Requests for withdrawal from
dividend credit or deposit balances will be delivered to the Policy
Service \[Technician\] for processing. If an insured requests that a
check be mailed to an address other than the address of record, the
signature on the request will be compared with the insured\'s signature
on records in the insurance folder. When it is apparent that the
signature is not the insured\'s, he or she will be requested to verify
the instructions. FL 29-637 will be used to return unsigned requests or
requests from a third party. Requests from incompetent insureds or
requests from custodian or \[spouse\]-payee of an incompetent insured
will be denied unless one of the conditions listed below exists:

\(I\) **Incompetent Insured.** A legal guardian has not been appointed,
the insured is hospitalized in a VA \[medical center\], and the request
for withdrawal is accompanied by a physician\'s statement that the
insured has the mental capacity to understand the significance of the
request. The check will be made payable to the Director of the \[VA
medical center\] as custodian. When a need for money is indicated and
the \[medical center\] physician is unable to certify that the insured
would understand the significance of his or her request, the insurance
folder, a current RPO, and a statement of facts, including the reason
for the withdrawal, will be sent to the Chief, Insurance Program
Management Division (290), VA Center, Philadelphia.

6-13

M29-I, Part II February 13, 1979

**Change 15**

**(2) Custodian or \[Spouse\]-Payee. Authority has** been received from
**the** Chief, Insurance Operations Division, **to** make **the**
withdrawal as a hardship case.

**(3) Attorney-In-Fact. If** an individual holding a general power of
attorney presents it for withdrawal of dividend credit or deposit
amount, **the individual** will be advised that specific power of
attorney must be sub**mitted** for **that** purpose and **that the**
power of attorney **must** specify the particular policy from which
**the** refund is to be made.

b\. Determining if Request for Withdrawal is Timely. If an insured
requests a cash withdrawal of dividend on deposit, determine if premiums
are paid through the month in which the refund will be made. If the
request for withdrawal is postmarked more than 61 days after the premium
due date of an unpaid premium, advise the insured that reinstatement
requirements must be met before a refund can be made. If the request for
withdrawal is postmarked within 61 days, advise the insured that it was
necessary to withhold premiums from the amount being refunded through
the premium month in which the refund is being made. Also, advise the
insured that the account will be adjusted to show the status which
existed prior to the refund if the check is returned within 15 days from
the date of the letter.

c\. **Preparation of Input Documents.** When **a** \[VA Form 29-432(S)
or (P), Disposition of Dividends, VA Form 29-4459, Dividend
Deposit/Credit Statement, or correspondence from a competent insured\]
is determined to be **in** order, **the** appropriate **input**
documents will be prepared to accomplish the transactions. \[The request
will be annotated showing the action taken, initialed, dated and marked
for disposal with a large red \"D.\" The request will **not be** filed
in **the insurance** folder.\] The input documents will be released for
processing by the system. If the check is to be mailed to an address
other than an address \[for insurance purposes,\] the insurance folder
with the request and prepared input \[documents\] will be **sent to
the** Voucher Audit activity for review. \[The request will be filed in
**the insurance** folder. Request from an insured\'s attorney-in-fact,
custodian, spousepayee or legal guardian will continue to be filed in
the insurance folder after **the** appropriate input documents and forms
have been completed and reviewed by the Voucher **Audit activity. The**
request will be stamped \"Ready For File,\" initialed and dated.\]

*NOTE: \[In\] all* cases \[in which\] the request is from the legal
guardian of an incompetent veteran, the request *will* be sent with the
insurance folder to the Voucher Audit activity *for* review.

d\. **Adjusting Interest.** When it is necessary to adjust interest
before processing a withdrawal request, VA Form 29-5894a or 29-8525 will
be prepared. Transaction type 086 will be used to update the lien
segment and/or **transaction type** 084 to update **the** dividend
credit/deposit segment.

e\. **Initiating Withdrawal Action by the System. A** VA Form 29-8521,
Disbursements, may be used to initiate action on a request for full or
partial withdrawal. The form may be used on requests for withdrawal for
payment in cash, for application as premiums, or for payment of lien or
loan indebtedness. Liens will be collected from amounts to be refunded
or applied as premiums **at the** request of **the** insured. The
insured will be advised of this and allowed 15 days to withdraw **the
request** for withdrawal in cash or to pay premiums.

f\. **Processing-by the System.** When the system processes a withdrawal
from dividend credits and **the premium** for the current month has not
been paid, **the** system will **withdraw** an amount to pay **the
premium due** prior to making the refund. If credits are insufficient to
pay **the** premium, an RPO will be generated for preparation of a
letter to the insured. When the system processes a withdrawal, **it**
generates VA Form 29-4459. It will also generate VA Form 29-1461 or
29-1461a, Payment Receipt DFB, **if** all or part of the withdrawal is
automatically applied to a loan or lien indebtedness. If clerical action
is required, an RPO will be generated.

g\. **Processing Withdrawal Action Clerically.** When **it is**
necessary to clerically withdraw an amount from the dividend
credit/deposit segment, prepare VA Form 29-5894a or 29-8525 to-adjust
the dividend credit or deposit balance. **Prepare** the appropriate
forms to dispose of **the** amount withdrawn. VA Forms 29-4459 and
29-1461 or 29-1461a, if appropriate, will also be prepared. One or more
of the following input documents will be required:

\(I\) To update the premium segment, VA Form 29-5893a, Premium Input
Card \[-ADP\], or VA Form 29-8523, Premium/TDIP, transaction type 083,
will be prepared.

**6-14**

May 12, 1980 M29-1, Part 11\
Change 16

\(2\) To update the TIDP segment, VA Form 29-5894b, TDIP Input Card
Only, or VA Form 29-8531, TDIP, transaction type 087, will be prepared.

\(3\) To update the lien segment, VA Form 29-5894a or 29-8525,
transaction type 086, **will be** prepared.

\(4\) To update the loan segment, VA Form 29-5894a or 29-8525,
transaction type 085, will be prepared.

\(5\) To delete the other indebtedness symbol from the master record, VA
Form 29-5896a, Life Input Card or 29-8530, Life/Miscellaneous,
transaction type 080, will be prepared.

\(6\) To insert the amount to be refunded as **a** pending disbursement,
VA Form 29-5895a or 29-8526, transaction type 008, will be prepared. If
the refund is to be made off tape, prepare VA Form 4-706.

\(7\) When .premiums are being paid by allotment from service or retired
pay (how paid 6) or by deduction from VA benefits (how paid 3) and the
insured requests withdrawal to be applied to pay premiums, a VA Form
295895a will be prepared to insert a 60-day diary with the message,
DIVCR PAY PREM, and to freeze the record. Action will be taken to
discontinue the allotment or deduction and to advise the insured of the
action taken and of the status of the insurance account. If the insured
requests withdrawal of part of the dividend credit or deposit to pay
premiums and part to be refunded, a VA Form 29-8521 (Doc 0l) will be
prepared to refund the requested amount and a VA Form 29-5895a prepared
for second-day release to insert the 60-day diary with the message,
DIVCR PAY PREM, and to freeze the record. Action will be taken to
discontinue the allotment or deduction and to advise the insured of the
action taken and the status of the insurance account. The insured\'s
request, in either case, will be noted as to the action taken and filed
in the insurance folder with a copy of our letter to the insured. When
an RPO is received showing that the allotment or deduction has been
discontinued, the original request of the insured will be examined and
action taken to complete the request.

\~ h. When a requested full withdrawal for cash or premium (including
cash withdrawal amount that liquidates the balance)

\~ is made for a dividend credit or deposit account, the total amount of
accumulated interest will be included in the withdrawal transaction
amount. Total amount of accumulated interest includes accumulated
interest prior to this transaction plus the amount given on the
withdrawal amount that liquidated the principal balance.

i\. Expediting Refund of Dividend Credits and Dividends on Deposit. Upon
receipt of \[a request\] via FTS, regular procedures incident to
processing refunds will be immediately effected. A chronological log
will be maintained for control purposes pending receipt of the signed
forms. As each form is received, the item appearing on the appropriate
log will be checked off and the form will be released for filing in the
insurance folder. Any items remaining unchecked after IS calendar days
will require that an inquiry be addressed to the office of origin. to
determine the reason for the delay. If a document appears to have been
lost in transit, the applicant will be requested to sign and return a
duplicate in an addressed franked envelope that will be supplied. If,
for any reason, a refund cannot be processed, the applicant will be
notified immediately. The letter will state the reason why the
application was denied. A liberal use of airmail will be employed where
determined necessary.

j\. When it is necessary to reduce or delete a dividend credit or
deposit \[balance in the\] amount of \$10,000 or more, \[prepare two VA
Forms 29-8525, transaction types 084. The first 084 transaction type
must reduce the balance to under \$10,000. The second 084 transaction
type must be coded second-day release to complete the transaction.\]

\(I\) The letter will contain information as to the file number, amount
of dividend and day number the input will be processed. A request will
be made that the edit in run 140 be suspended for that transaction day
number.

\(2\) All written communications with the DPC about insurance matters
will be prepared for the signature of the Director.

6.13 DISPOSITION OF DIVIDEND CREDIT/DEPOSIT BALANCES

a\. **Total and Permanent Disability.** Dividends held at credit or
deposit on a USGLI total and permanent disability abeyance case will be
refunded at the time the initial award is authorized. However, if the
insured has another policy on **a** premium-paying basis, and has
dividends held under the credit option, he or she will be given an
opportunity to retain the

6-15

M29-I, Part II May 12, 1980

**Change 16**

dividend credit for **protection of the other policy. Refund of the
dividend balance on an abeyance** case will be combined on the **bone**
VA Form 4-706 with **any unearned** premiums to be disbursed.

**(b) Balances of Less Than \$1. When requests** are received from
Insureds for refunds of dividend credit/deposit on active premium-paying
**accounts and** the amount **to be disbursed is less** than \$1, the
**system will reject** the action. An RPO, reason

**code 463** or **464, is generated. An** FL 29481 **with the**
following typed or overprinted statement, will be released clerically:

Your dividend credit (or deposit) balance is **only** \$ . Because of
**the expense involved in** disbursing **such a small amount, we think
you will agree that** it should be left as a dividend credit (or
deposit) to your account. If **you want this amount** paid to **you,**
however, let us know, and we will send **you** a check.

NOTE: When the initial request indicates the insured is aware that the
balance is less than \$1, or if it is known that the insured was
previously notified about our policy on refunds of less than \$1, the
refund will be made off tape without delay. The master record must be
adjusted accordingly.

6.14 DISPOSITION OF DIVIDENDS UNDER THE PREMIUM OPTION

a\. When the method of **paying premiums is changed** from **direct pay
to** DFB, disability waiver, allotment or payroll **deduction and the**
dividend option is premium, **change** the option to Public law 36. **An
FL** 29-658 will be prepared to advise **the insured** of **the action
taken.**

**b.** When **the dividend** processed is the **last** dividend **which
can be** applied to pay premiums on a limited payment life, the **system
will change the** premium options to credit if there is no loan or lien
indebtedness. If there is a loan or lien **indebtedness, the system will
change** the option to the loan/lien option (LOLl) provided premiums
have been paid to the end of the premium-paying period.

**c. If the system has not changed** the option and TDIP premiums are
not payable beyond the premium-paying period of **the life contract,
change** the option **clerically.** If a loan exists on **the policy,
change** the option to loan/lien option provided premiums are paid to
**the end of the premium-paying** period and there are no other policies
on **a** premium-paying basis. If those conditions do **not** exist,
**change the option** to the credit option. Prepare and release FL
29-685, or appropriate notice, if the option is changed clerically or by
**the system.**

6.15 DIVIDENDS WHEN AUTOMATIC SURRENDER IS PENDING

**a.** The system will **not authorize a** dividend if the **action**
type is 3 or **4** and the dividend **option** is other than loan/lien.
Instead, an RPO with reason code 694 **will** be generated. Determine if
**a** dividend payment **is in** order. If so, advise the policyholder
of the **pending** surrender and request permission to apply **the**
dividend **against** the indebtedness and change the option accordingly.
Prepare VA Form 29-5895a or 29-8526 to insert a 45-day diary **pending**
a reply.

b\. If the insured does not **grant** permission or does **not** reply
**within 45** days, delete **the** pending diary and the policy freeze.
Prepare VA Form **29-394** or 29-8528, transaction type 616, without
control **accounts, to authorize** the dividend under the option of
record.

**c. If the insured grants** permission **to** apply the dividend
**but** does **not change the** option, authorize the dividend and apply
it to reduce the loan. Lift the policy freeze and delete **the** diary.

d\. If **the insured changes the option to loan/lien, change the**
option **in** the master record, lift the freeze, and delete the diary.

6.16 INQUIRIES CONCERNING CHECK INFORMATION ON DIVIDENDS

**a. When an insured claims nonreceipt** of **a** recently authorized
dividend, prepare FL 29481 if that form letter is appropriate.

**6-16**

a M29-1, Part 11

Advance Manual Change No. 16-83 December 13, 1983

[Chapter 6]{.underline} - [Dividends]{.underline}

A. [Change:]{.underline} M29-1, Part 11, Chapter 6. This Advance Manual
Change, in\
conjunction with Advance Manual Change 9-83 in M29-1, Part I,\
establishes a uniform procedure for processing Reason Code 276\
RPO\'s, generated when a dividend authorized under the premium\
option exceeds the amount needed to pay a \"W\" term contract to the\
end of the protection period.

B. [Procedure]{.underline}: Page 6-16, paragraph 6:14, add the following
as subparagraph d:

d\. When the dividend authorized on a \"W\" term policy is sufficient to
pay beyond the end of the final term period, the dividend is made
pending and a Reason Code 276 RPO is generated. Apply the dividend to
pay premiums to the end of the protection period and refund the balance.
Change the dividend option to cash and release a dictated letter
notifying the insured of action taken.

C. New or Revised

[Insurance Forms]{.underline}: None

ROBERT W. CAR Y

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 80\
310/290 55\
310/291 200\
310/Library 1\
244C 10

February 10, 1975 M29-I, Part II\
Change 12

b\. If the insured has had sufficient time to receive the check since it
was authorized and the claim is within 6 years from the date of issue,
prepare VA FL 4-162 if the insured claims nonreceipt and VA FL 4-163 if
he or she claims the check was lost. The form letters will be completed
as outlined in paragraph 6.18.

c\. If an insured returns VA FL 4-162 or 4-163 to the Treasury regional
disbursing office and that office is unable to locate the check number,
the form letter will be returned to the Insurance Division. In that
event, review the paid dividend information to determine if correct
information was furnished. After verifying or correcting the
information, return the form letter through Voucher Audit to the
regional disbursing office by VA Form 3230 stating that the information
has been verified or corrected and request the item be searched again.

d\. When an insured claims that he or she did not receive a check and a
period of more than 6 years has lapsed since. the check was issued,
advise the insured that Section 2 of the Act of June 22, 1926, as
amended by the Act of August 28, 1957, Public Law 85-183, 71 Stat. 465
(31 U.S.C. 122), provides:

\"Hereafter all claims on account of any check, warrant, or warrants
appearing from the records of the General Accounting Office or the
Treasury Department to have been paid, shall be barred if not presented
to the General Accounting Office or the Treasurer of the United States
within six years after the date of issuance of the check, checks,
warrant, or warrants involved.\"

e\. If the inquiry concerned a 1948 special dividend, return the inquiry
with a copy of VA Form 29-5785b, Reply to Dividend Inquiry.

6-16a

January 15,1971 M29-1,Part II

R • 6.17 PAID DIVIDEND INFORMATION

a\. 1948 Special Dividend. The 1948 special dividends were processed
centrally until May 18, 1953. The main **microfilm** reels of paid
dividend vouchers are maintained in the Philadelphia center. Listings of
unpaid dividends as of June 1953 were made, and the microfilm reels of
these listings are maintained in the Philadelphia or St. Paul centers.
Notations on premium record cards which indicate that the dividend was
authorized June 1953, or later, will be accepted as evidence of payment
even though the dividend is included on the unpaid listing. The
following documents filed in the insurance folders contain 1948 special
dividend paid information:

\(I\) VA Form 94863, Paid Dividend Card, interpreted to show service
number, check number, dividend amount, name of insured, district office
code, file number prefix, and file number. A transfer posting impression
of the address to which the check **was** sent appears on the face of
the card. The 1948 paid dividend legend and the date paid are endorsed
on the reverse of the card.

\(2\) Green **file copy** of VA Form 9-1698, Statement of NSLI Special
Dividend Account, explains how the dividend amount was arrived at where
the check covered two or more policies, one or more reductions in
insurance under one policy, or where indebtedness was deducted from the
dividend. The form shows the amount of dividend for each policy at each
face amount of insurance, amount of lien, shortage, or amount of any
unauthorized payment of veterans benefits which was deducted; also, the
code number of the office which reported the indebtedness, and the
amount of the check (net dividend).

\(3\) VA Form 94864, Shortage or Lien Card, used in posting paid lien
and shortage information to premium record cards, is interpreted to show
district office code, name of insured, code 3 for shortage or code 4 for
lien, amount of shortage or lien deducted, policy number, and file
number.

\(4\) VA Form Letter 9\~ II, a form letter mailed to applicants whose
policies were ineligible for dividends because they have an effective
date after December 31, 1947.

\(5\) VA Form Letter 9412, mailed to applicants whose policies were in
force less than 3 months.

\(6\) VA Form Letter 9414, a form letter used in forfeiture cases.

**(7)** VA Form Letter 9417, a form letter used in cases where insurance
was canceled as of its effective date.

\(8\) VA Form Letter 9418, a form letter used where the application for
insurance was disapproved.

\(9\) VA Form **Letter** 9419, **a** form letter used where the dividend
was applied to pay indebtedness.

\(10\) Dictated letters similar to the form letters mentioned in
subparagraphs (4) through (9) above, used in comparable situations
involving incompetency of the insured.

\(11\) Dictated letters in lieu of VA Form 9-1698 to inform insureds of
the disposition of their dividends, or portions thereof, when
indebtedness was withheld at the request of the Treasury or a department
of the Armed Forces, or when deductions were made for **USGLI**
indebtedness.

**(12)** VA Form 94841 (green punched card, used as an unpaid notice
card, has a rubberstamp legend on the reverse, similar to the following:
1948 Special Dividend Paid: Scheduled on Voucher No.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\(13\) VA Form 94841, used as a finance indebtedness summary card,
representing amounts of finance indebtedness recovered **by** setoff
from unpaid 1948 dividends of record in the Insurance Center, D.C., is
identified on the reverse **by** the addressograph legend: 1948 Dividend
in Amount Shown on This Card Has Been Applied Toward Payment
Indebtedness. Offset Made for Regional Office and Appropriation
Indicated in Upper Left Corner on Face of Card. In these cases, **only**
the amount of dividend required or available for setoff has generally
been disposed of. If the unpaid dividend exceeded the indebtedness, the
remaining portion of the dividend is generally payable if the insured\'s
address becomes known.

6-17

M29-1, Part II January 15, 1971

\(14\) File copies of SF 1048, Public Voucher for Refunds, initiated by
field stations of the Department of Veterans Benefits. These vouchers
cover refunds to insured or to the NSLI Fund, where collections made
from 1948 dividends exceeded the total indebtedness or where erroneously
made for other reasons, or where indebtedness was liquidated or reduced
after the original report was submitted. A statement identifying the
transaction as one involving a 1948 dividend is shown in the Remarks
portion of the voucher.

\(15\) VA Form 9416b, NSLI Dividend Work Sheet (1948-1951 Special
Dividend), prepared subsequent to **May** 18, 1953, in **the** field
**stations.**

**b.** 1951 Special Dividend. The **following documents filed in** the
insurance folders **contain** 1951 special **dividend** paid information
(1951 **dividends were processed** centrally until decentralized Sept.
3, 1952):

\(1\) VA Form 94912, Paid Dividend **Card, is interpreted to** show file
number, policy number, **amount of** check, amount of dividend, name of
insured, **district** office code **and** check **number.** The
**indebtedness code is** also interpreted **as follows:**

[Code]{.underline} [Type of **Indebtedness**]{.underline}

0 **No indebtedness\
**1 **Premium indebtedness\
**2 **Insurance overpayment indebtedness\
**3 Finance indebtedness\
**4 Combination of codes** 1 **and 2\
**5 **Combination of codes** 1 **and** 3\
6 **Combination of codes** 2 **and** 3\
7 **Combination of codes** 1, 2 **and** 3

A transfer posting impression **of the** address **to which the check**
was **sent** appears **on** the face of the card. The 1951 dividend
legend **and the** date paid are endorsed on the reverse of **the
card.**

\(2\) VA Form 94919, Allotment Pay Accounts **Paid** Dividend Card, a
punched **card** similar to VA Form 94912, used on inservice allotment
accounts.

\(3\) **Yellow file copy of** VA Form 94340, Statement of
Deductions-NSLI Dividend, an itemized statement prepared **when an
indebtedness was collected from the dividend.**

**(4)** VA Form 94917, Indebtedness Collection Advice Card, a series of
punched cards prepared for use in posting collected indebtedness
information. A **green** form reflects collection of premium
indebtedness; yellow, insurance overpayment **indebtedness; and salmon**
reflects collection of finance **indebtedness.**

\(5\) VA Form Letter 9442, used where the entire dividend was applied
toward indebtedness.

\(6\) File copies of refund vouchers initiated by field stations of the
Department of **Veterans** Benefits, as described in subparagraph a(14)
above.

**(7)** VA Form 9416b, NSLI **Dividend Work Sheet** (1948-1951 Special
Dividend), prepared subsequent to September 30, 1952, in the field
**stations.**

c\. **On NSLI dividends,** the vouchering information on dividends paid
between January 1, 1952, **and** June 30, 1955, **is filed** in **the
insurance folder.** The vouchering information for **the** years
beginning July 1, 1955, and ending **in** 1963 is on **microfilm. On
USGLI, the vouchering information on dividends** paid through 1963 is on
microfilm.

**6-18**

September 13,1976 M29-l Part II\
Change 13

d\. Paid dividend information (check number, date of check, etc.) for
the period 1952 through 1963 on NSLI and through 1963 on USGLI, is on
tile in the Records Management Unit with the following exceptions which
are on microfilm:

\(1\) Voucher numbers in the 204,000 series (1961 accelerated dividends
on certain policies).

\(2\) Voucher numbers in the 20-6,000 series (1961 special dividends on
certain policies).

\(3\) Voucher numbers 20-2,000, 20-2,001 and 20-2,002 (1961 special
dividends on certain W policies).

\(4\) Voucher numbers ending in the letter d (beginning with day number
005, January 5, 1962).

e\. Beginning with the 1964 dividend authorization, the paid dividend
information became a part of the master record. A transaction history
will be required for paid dividend information which does not appear on
the master record. Check numbers on dividends disbursed by the computer
must be obtained from the Treasury Department.

6.18 PREPARING FL \~162 or \~l63

a\. Insert name, address and identifying information on the appropriate
form.

b\. If the check number and date of check are not known, the form will
be completed as outlined below:

\(l\) Check or Schedule No.(s)

\(a\) Insert the processing day number the disbursement was made by the
ADP system. With the exception of dividends paid on an accelerated
basis, the date of a check is the workday after the processing day
number shown on the master record or the transaction history print. The
processing day numbers for dividends paid on an accelerated basis are
shown in exhibits A and B.

\(b\) Insert a 22 (St. Paul) or 21 (Philadelphia) in front of the day
number.

\(c\) Immediately below the processing day number, enter the appropriate
group into which the check was sorted. If that group is domestic
addresses with ZIP codes, include the ZIP code (i.e., Domestic 27870).

NOTE: **Prior to** November **9,** 1966, **on** NSLI; December\], \]966,
**on** VSDI; and January 3, 1967, **on** USGLI; tape disbursement items
were filed in file number sequence. On and after those dates and through
August 1, 1971, the disbursement tape records were separated into Three
groups: Foreign addresses, domestic addresses without ZIP codes, and
domestic addresses with ZIP codes. Within the foreign address and no ZIP
code groups, the records are in file number order. Within the ZIP code
group, the records are filed in ZIP code order and file number order
within each ZIP code group. On and after August 2, 1971, the
disbursement tape records were separated as follows: (1) All addresses
without ZIP codes in file number sequence (includes domestic addresses
without ZIP codes, foreign addresses with no consular code and FC999
cases); (2) foreign addresses with consular (country) codes in country
code sequence and within country code in account number sequence, and
(3) domestic addresses with ZIP codes in ZIP code sequence and within
ZIP code in account number sequence. The Treasury Department microfilms
the checks in the sequence as they\' appear on the disbursement tapes.

\(2\) **Station Number.** Enter 335 (St. Paul) or 310 (Philadelphia).

\(3\) **Amount.** Enter the amount of the check authorized.

\(4\) **Date of Issue.** Enter the workday (month, day and year)
following the processing day number, or the appropriate date from
exhibit A or B if dividend was paid on an accelerated basis.

6-19

**M29-I, Part II September 13, 1976**

Change 13

\(5\) **Symbol:** Enter appropriate symbol\
**Period Symbol**

\[Off-Tape or manual payments (February 1, 1975 Current Date 30\]\
Ml off-tape or manual payments \[(prior to February l, 1975)\] 3030\
January 1963-February 1964 3031\
March 1964-February 1966 3034\
March 1966-January 1968 3036\
February 1968-December 30, 1969 3038\
December 31, 1969-April 18,1971 3041\
April 19, 1971 September 30, 1971 3039\
October 1,1971-September 18, 1972 3043\
September 19,1972 \[August 31,19731 3045\
\[September 1, 1973-July 1, 1974 3047\
July 2, 1974-May 19, 1975 3048\
May 20, 1975-Current Date 3050\]

**PHILADELPHIA VA CENTER EXHIBIT** A

Dividend Year Day No. Year Date of Issue

1963 356 2 1-2-63\
357 2 1-2-63\
**005** 3 1-11-63

1964 355 3 1-2-64\
362 3 1-6-64\
004 4 1-10-64

1965 347 4 1-2-65\
354 4 1-2-65\
361 4 1-2-65

1967 035 7 2-10-67\
049 7 3-3-67\
063 7 3-10-67\
070 7 3-17-67\
077 7 3-24-67

1972

February-June 050 2 2-24-72\
July-September 070 2 3-16-72\
October-December 077 2 3-23-72

*w*

6-20

September 13,1976 M29-1\~\' Part II\
Change 13

ST. PAUL VA CENTER EXHIBIT B

Dividend Year Day No. Year Date of Issue

1964 355 3 1-2-64\
362 3 1-6-64\
025 4 1-27-64

1965 347 4 1-2-65\
354 4 1-2-65\
361 4 1-2-65

1967

February-May 042 7 2-17-67\
June-September 056 7 3-3\~7\
October-December 077 7 3-24-67

1972

February-July

August-December

6.19 PAID DIVIDEND INFORMATION FOR TAX PURPOSES

a\. VA Form 29-390, Notice of Dividends Authorized, will be used to
furnish information for New York State **tax** purposes or in answering
general dividend disposition inquiries received from policyholders, if
it will provide **an exact answer** to the inquiry.

b\. The form will be prepared in duplicate when it is for New York State
tax purposes. Prior to preparation of the form, the insurance folder
will be reviewed to determine whether dividend information for certain
years has been previously furnished. If so, the information will not be
repeated unless specifically requested.

c\. The amount blocks for all dividend years not applicable will be
lined through, and the duplicate copy of the VA Form 29-390 will be
stamped Ready **for** File, signed, dated and filed in the insurance
folder. The request for the information will be routed for disposal
unless it contains information of record value or requires answers
**to** additional questions.

\[d. On death cases the VA Form 29-390 will be modified as follows:
Delete the word \"your\" in the message. In the space below the message
block-print \"EARNED ON THE ACCOUNT
OF\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ DECEASED.\"

*NOTE: If* the insurance folder is not located and dividend information
for the period before *July 1955* is required, the number of months paid
will be determined from the photocopy of the premium record card and the
amount of the dividends computed from the appropriate dividend
schedules. On *all* such cases, a photocopy of the premium record card
may be secured from the Records P-Processing Center, St. Louis, Missouri
to determine the amount of dividends paid.\]

6-21

**M29-I, Part II II September 13,1976**

Change 13

6.20 COMPUTER SYSTEM PROCESSING OF DIVIDEND CREDIT/DEPOSIT WITH
REMITTANCE TO PAY PREMIUMS OR LOAN

a\. When the Collections Unit receives a remittance with a request that
it be combined with a dividend credit/deposit to pay premiums or loans
they will code the remittance 201 (not paid as billed) or 300 (loan)
with status code 2. This will cause the computer system to make the
remittance a frozen pending transaction and generate an RPO, reason code
270 or 377, for clerical action.

b\. VA Form 29-323, Disbursements, or VA Form 29-8521, Disbursements, is
prepared by the Policy Service Clerk as input into the computer system.
If a full withdrawal of dividend credit/deposit is to be made, code 5
will be entered in the DISPOSITION CODE block of VA Form 29-323 or in
the DISP. CODE block of VA Form

29-8521. If a partial withdrawal is to be made, code 6 is entered. When
code 6 is used, clerical entries are required in the AMOUNT OF CHECK
REQUESTED field of VA Form 29-323 or in the WITHDRAWAL AMOUNT OR AMOUNT
OF CHECK REQUESTED field of VA Form 29-8521 to conform to the insured\'s
request. One of the following transaction types is entered on the form:

\(1\) 406-Dividend credit withdrawal to pay premiums.

\(2\) 407-Dividend deposit withdrawal to pay premiums.

\(3\) 428-Dividend credit withdrawal to reduce loan.

\(4\) 429-Dividend deposit withdrawal to reduce loan.

c\. When a full withdrawal (code 5) is made to pay premiums and there is
a remaining credit, it will be inserted in the premium credit/shortage
field of the master record unless the policy is paid through the end of
the premium paying period, in which case the credit will be
automatically refunded.

d\. When a full withdrawal (code 5) is made to reduce a loan and there
is more than sufficient credit to liquidate the loan, the remaining
credit will be retained in the dividend credit/deposit segment. (The
system \_\_\_\_ makes a partial withdrawal of the dividend credit or
deposit.)

e\. When partial withdrawals (code 6) are made, remaining balances are
retained in the dividend credit/deposit segment.

f\. The computer system will delete the pending transaction coded 2,
lift the freeze and combine the remittance with the dividend
credit/deposit to pay premiums or loan. Overages or shortages will be
included only when the transaction is coded for premiums.

g\. When the dividend credit/deposit and the remittance are used to pay
premiums, a VA Form 29-4459, Dividend Deposit/Credit Statement, is
released by the computer system.

h\. When the dividend credit/deposit and the remittance are used to
reduce loan indebtedness, VA Form

29-4459 and VA Form 29-1461 are released.

**i.** When any of the following conditions are on the master record,
the computer system will not process the

case automatically:

\(1\) Lien on the account or on another account of the insured.

\(2\) Three or more policy cases.

\(3\) The insured has both dividend credit and deposit balances and
withdrawal would be required from both balances.

\(4\) Account is frozen for reasons other than the pending remittance
coded 2.

6-22

September 13,1976 M29-l Part II\
Change l3

\(5\) Postmark date on transaction type 4)0( does not match postmark
date of pending remittance or there is no pending remittance.

j\. When the conditions listed in subparagraph i above exist, or in
other instances when the computer system cannot take the requested
action, an RPO with an appropriate reason code based on the condition on
the master record that prevents computer system processing, will be
generated for clerical action.

k\. If the interest year in the dividend credit/deposit segment is later
than the postmark date of the remittance, the case must be processed
clerically.

6.21 U.S. GOVERNMENT LIFE INSURANCE POLICY WITH LOAN AND STATUTORY LIEN

a\. When a dividend is payable under the LOLl option on a USGLI policy
and there is a loan and a statutory (off tape) lien on the contract, the
computer will not process the dividend. Instead, an RPO, reason code
695, is generated for clerical action and the master record frozen with
a 970 policy freeze.

b\. Upon receipt of the RPO, the folder will be obtained to verify that
it contains an authorization from the insured or legal representative to
use the dividend to offset the statutory lien.

*NOTE In* cases when the total indebtedness (statutory lien and loan)
exceeds the reserve and, for this reason, the option was changed to
*LOLl* without a written request from the insured, the statutory lien
will be reduced by the dividend.

c\. A VA Form 29-l 610, Transfer Worksheet, will be prepared to reduce
the statutory lien by the amount of the pending dividend. The VA Form
29-1696, Lien Record Card, must be appropriately noted.

d\. After the offset action is completed, action will be taken to lift
the 970 policy freeze.

6.22 ADJUSTMENT OF NSLI DIVIDENDS UPON REINSTATEMENT

a\. When a \[participating\] policy \[(other than RS or W authorized for
12 months in the amount of \$1.20)\] on extended insurance is
reinstated, the following actions will be taken to determine if a
dividend adjustment is in order:

\(l\) Compute the amount of regular annual dividends payable on the
reinstated policy from the date of lapse to the date of reinstatement.

\(2\) Determine the amount of dividends paid on the extended insurance.

b\. If the amount computed in subparagraph (l) above exceeds the amount
determined in subparagraph (2) above, the difference will be paid in
cash to the insured or, at his \[or her\] request, applied to reduce the
cost of reinstatement.

c\. If the amount determined in subparagraph (2) above exceeds the
amount computed in subparagraph (l)

above, the dividends will not be adjusted.

6.23 PAID-UP ADDITIONS-MAXIMUM AMOUNT EDIT

a\. The computer system provides a maximum amount edit for paid-up
additions. The edit will consider a paid-up addition as failing to meet
the test when the amount is greater than 85 percent of the insurance
amount. This amount will increase by 5 percent (not to exceed \$9,999)
at 2-year intervals. The paid-up addition will be established and a
nonfreeze RPO will be generated with the legend PDUPMX.

6-22a

**M29-I ,Part II September 13,1976\
Change 13**

b\. The Policy Service Clerk, upon receipt of the RPO, will request a
history lookup.

c\. Upon receipt of the history lookup, it will be sent with the RPO to
the Actuarial Clerk for calculation of **the** paid-up additions.

d\. Upon receipt of the calculation by the Actuarial Clerk, the history
lookup and the RPO, the Policy Service Clerk will note the RPO as to the
action taken, if any, and stamp the RPO *DO NOT REMOVE FROM FOLDER.* The
history lookup and the RPO will be filed in the folder for future
reference.

**\[6.24 INQUIRIES ON PAYMENT OF DIVIDENDS**

a\. Generally, incoming inquiries concerning paid dividend information
are received in the Policy Service Section with a current RPO.

b\. The Policy Service Clerk will review the RPO for acceptability and
processing the dividend information within the system. The dividend
information will not be processed by the system if any of the following
conditions exist:

\(l\) Prior year dividend not authorized.

\(2\) Current year dividend not authorized and anniversary date has
passed.

\(3\) The policy prefix is other than l, 2, 5 or 6.

\(4\) The how paid code is l or 7.

\(5\) The dividend years in the dividend paid segment are not in
sequence or one is blank.

c\. If the inquiry involves the payment of dividend only and the status
on the RPO indicates that the dividend w\',\', information can be
released by the system, the appropriate input document, transaction type
980, status code 4,

will be prepared. This transaction will cause the system to generate a
VA Form 29-5885 with the following message:

THIS IS IN RESPONSE TO YOUR RECENT DIVIDEND INQUIRY. THE
\_\_\_\_\_\_\_\_DIVIDEND ON GOVERNMENT LIFE INSURANCE IS BEING PAID ON
THE POLICY ANNIVERSARY DATE.

YOUR LAST YEAR\'S DIVIDEND FOR THE POLICY IDENTIFIED ABOVE WAS PAID IN
\_\_\_\_\_\_\_\_\_\_\_ THE DIVIDEND FOR THIS YEAR WILL BE
PAID\_\_\_\_\_\_\_\_\_

d\. On multiple policy cases, the dividend information will be released
by the system on the contract(s) for which the input document(s) was
prepared provided that the policy specified is not under one of the
conditions **set** forth in subparagraph b above.

e\. When the system is unable to release the dividend information for a
particular contract, an RPO reason code 980 showing the last three
digits of the policy number will be generated. The legend OLDIV will
also be printed in the lower right corner of the reason code area. On
multiple policy cases, the system will generate an RPO for all the
contracts the insured has in force with the foregoing legend shown for
each policy on which the system did not release the dividend
information. This applies to all multiple cases regardless of whether
the insured has all participating accounts or has both participating and
nonparticipating accounts in force.

f\. If the dividend inquiry cannot be answered by the system or the
request for information is for more than an inquiry concerning the
dividend payment, the Policy Service Clerk will take the appropriate
action, as necessary, so that the insured\'s request for information
will be completely satisfied.\]

**6-22b**

M29-1, Part II

\~ Advance Manual Change No. 4-86 December 18, 1986

Chapter 6 - [Dividends]{.underline}

A. [Change:]{.underline} M29-1, Part **11,** Chapter 6.\
B. [Procedure:]{.underline} Add the following interest year factor to
Figure 6.01, Page 6-22c:

Dividend

[Year]{.underline} [1983]{.underline} [1984]{.underline}
[1985]{.underline} [1986]{.underline} [1987]{.underline}

1952 2.59667 2.90238 3.25360 3.64705 4.10014\
1953 2.49191 2.78872 3.12970 3.51170 3.95159\
1954 2.39020 2.67837 3.00942 3.38029 3.80737\
1955 2.29146 2.57123 2.89264 3.25271 3.66735\
1956 2.19559 2.46722 2.77926 3.12885 3.53141\
1957 2.10251 2.36623 2.66919 3.00859 3.39943\
1958 2.01215 2.26818 2.56232 2.89183 3.27129\
1959 1.92442 2.17299 2.45856 2.77848 3.14688\
1960 1.83924 2.08058 2.35783 2.66843 3.02610

Regular & Special

1961 1.75654 1.99085 2.26003 2.56158 2.90883\
w 1962 1.67626 1.90374 2.16507 2.45784 2.79498

Regular & Special

1963 1.59831 1.81916 2.07289 2.35713 2.68445\
1964 1.52263 1.73705 1.98339 2.25935 2.57714\
1965 1.44322 1.65090 1.88948 2.15676 2.46454\
1966 1.36632 1.56746 1.79853 2.05739 2.35549\
1967 1.29183 1.48664 1.71044 1.96115 2.24987\
1968 1.20369 1.39100 1.60619 1.84726 2.12487\
1969 1.11893 1.29904 1.50595 1.73775 2.00468\
1970 1.03743 1.21061 1.40957 1.63245 1.88912\
1971 .95437 1.12049 1.31134 1.52514 1.77134\
197.2 .87021 1.02918 1.21181 1.41640 1.65200\
1973 .78968 .94180 1.11656 1.31234 1.53780\
1974 .71261 .85818 1.02542 1.21277 1.42851\
1975 .63495 .77392 .93357 1.11243 1.31839\
1976 .55709 .68945 .84150 1.01184 1.20799\
1977 .48295 .60900 .75381 .91603 1.10285\
1978 .40564 .52512 .66238 .81615 O.99322\
1979 .32921 .44219 .57199 .71740 0.88484\
1980 .24516 .35100 .47259 .60880 0.76566\
1981 .16370 .26261 .37625 .50355 0.65015\
1982 .08000 .17180 .27726 .39541 0.53146\
1983 .08500 .18265 .29205 0.41802\
1984 .09000 .19083 0.30693\
1985 .092 50 0.19902\
1986 0.09750

• 2.

M29-1, Part II

Advance Manual Change No. 4-86

C. New or Revised

[Insurance Forms]{.underline}: None

PAUL F. KOONS

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
310/291 111\
310/Library 1\
CO/311D 1

M29-1, cart Ii

Advance Manual Change No. 8-85 November 15, 1985

**[Chapter 6]{.underline} - [Dividends]{.underline}**

**A. [Change:]{.underline} M29-1, Part 11, Chapter 6.\
B. [Procedure:]{.underline} Add the following interest year factor** to
**Figure** 6.01, Page **6-22c:**

**Dividend**

**[Year]{.underline}** [1982]{.underline} **[1983]{.underline}
[1984]{.underline}** [1985]{.underline} [1986]{.underline}

1952 **2.33025** 2.5966\'7 **2.90238 3.25360** 3.64705\
-1953 2.23325 2.49191 2.78872 3.12970 3.51170\
1954 2.13908 2.39020 2.67837 3.00942 **3.38029\
**1955 2.04765 2.29146 2.57123 2.89264 3.25271\
1956 1.95888 2.19559 2.46722 2.77926 **3.12885\
**1957 1.87270 2.10251 2.36623 2.66919 3.00859\
1958 1.78903 2.01215 2.26818 2.56232 2.89183\
1959 1.70779 1.92442 2.17299 2.45856 2.77848\
**1960 1.62893** 1.83924 **2.08058 2.35783 2.66843**

Regular & Special\
1961 1.55236 1.75654 1.99085 2.26003 2.56158\
1962 1.47802 **1.67626 1.90374** 2.16507 2.45784

**Regular & Special\
1963 1.40584** 1.59831 1.81916 2.07289 **2.35713\
**1964 1.33577 1.52263 1.73705\' 1.98339 2.25935\
1965 1.26224 1.44322 1.65090 **1.88948 2.15676\
**1966 1.19104 **1.36632 1.56746** 1.79853 2.05739\
1967 1.12207 1.29183 **1.48664** - 1.71044 1.96115\
**1968** 1.04045 1.20369 1.39100 1.60619 1.84726\
1969 .96197 **1.11893** 1.29904 1.50595 1.73775\
1970 **.88651** 1.03743 1.21061 1.40957 **1.63245\
**1971 .80960 .95437 1.12049 1.31134 1.52514\
1972 **.73168** .87021 1.02918 1.21181 1.41640\
1973 .65711 **.78968** .94180 1.11656 1.31234\
1974 .58575 .71261 **.85818** 1.02542 1.21277\
1975 .51384 .63495 .77392 .93357 1.11243\
1976 .44175 .55709 .68945 .84150 1.01184\
1977 .37310 .48295 .60900 .75381 .91603\
1978 .30152 .40564 .52512 **.66238** .81615\
1979 .23075 .32921 .44219 .57199 .71740\
1980 .15293 .24516 .35100 .47259 **.60880\
**1981 .07750 .16370 .26261 .37625 .50355\
**1982** .08000 .17180 .27726 .39541\
1983 .08500 .18265 .29205\
1984 .09000 .19083\
1985 .09250

\--. \--\~\~\~-\~\~\~\`\~\`\~\--\~ \-- \--.\` \`- \` -\"- \`\~

•2.

**M29-1, Part II**

**Advance Manual Change No.**

**C. New or Revised**

**[Insurance Forms]{.underline}: None**

**P AUL** F. NS

**Director for Insurance**

[DISTRIBUTION]{.underline}:

**335/29 92\
310/290** 51\
**310/291** 111\
**310/Library** 1\
**203/SDA 2\
**CO/311D **2**

**M29-1, Part II**

Advance Manual Change No. [\~)1G4]{.underline} November 1,
[1\~34]{.underline}

**[Chapter 6 - Dividends]{.underline}\
A. [Change:]{.underline} M29-1, Part II, Chapter 6.\
B. [Procedure:]{.underline} Add the following interest year factor to
Figure 6.01, Page 6-22c:\
Dividend**

**[Year]{.underline}** [1982]{.underline} [1983]{.underline}
**[1984]{.underline} [1985]{.underline}\
**1952 2.33025 **2.59667** 2.90238 3.25360\
**1953** 2.23325 2.49191 2.78872 **3.12970\
1954** 2.13908 2.39020 **2.6783 3.00942\
1955 2.04765 2.29146 2.5712** 2.89264\
**1956 1.95888** 2.19559 2.4672 **2.77926\
1957 1.87270 2.10251 2.366\~3 2.66919\
**1958 **1.78903 2.01215 2.2681\'8 2.56232\
**1959 **1.70779** 1.92442 2.17299 **2.45856\
1960 1.62893** 1.83924 **2.08058** 2.35783

**Regular & Special\
1961** 1.55236 **1.75654 1.99085 2.26003\
1962 1.47802 1.67626 1.90374 2.16507**

**• Regular & Special\
1963 1.40584 1.59831 1.81916** 2.07289\
**1964 1.33577 1.52263 1.73705** 1.98339\
**1965 1.26224** 1.44322 **1.65090 1.88948\
1966 1.19104 1.36632 1.56746 1.79853\
1967 1.12207 1.29183 1.48664 1.71044\
1968 1.04045 1.20369 1.39100 1.60619\
1969 .96197 1.11893** 1.29904 **1.50595\
1970 .88651 1.03743 1.21061 1.40957\
1971 .80960 .95437 1.12049 1.31134\
**1972 **.73168 .87021 1.02918 1.21181\
1973 .65711 .78968 .94180 1.11656\
1974** .58575 **.71261 .85818** 1.02542\
**1975 .51384** .63495 **.77392** .93357\
**1976 .44175 .55709 .68945 .84150\
1977 .37310** .48295 **.60900 .75381\
1978 .30152 .40564** .52512 .66238\
**1979 .23075** .32921 .44219 **.57199\
1980 .15293 .24516 .35100 .47259\
1981 .07750 .16370 .26261 .37625\
**1982 **.08000 .17180 .27726\
1983 .08500 .18265\
1984 .09000**

2\.

M29-1, Part II

Advance Manual Change No. [j110-84]{.underline}

C. New or Revised

**[Insurance Forms]{.underline}: None**

**PAUL KOONS**

Assistant Director for Insurance

[DISTRIBUTION]{.underline}:

335/29 92\
310/290 51\
310/291 111\
**310/Library** 1\
**203/SDA** 2\
**CO/311D** 2