#### Department of Veterans Affairs M21-1MR, Part X

**Veterans Benefits Administration February 5, 2008**

**Washington, DC 20420**

#### Transmittal Sheet 

+------------+---------------------------------------------------------+
| #          | > Veterans Benefits Manual M21-1MR, X, "Matching        |
| #### M21-1 | > Programs," is changed as follows:                     |
| MR, Part X | >                                                       |
|            | > The following pages are updated in this change:       |
|            |                                                         |
|            | -   3-3 and 3-7                                         |
|            |                                                         |
|            | -   5-3 through 5-8                                     |
|            |                                                         |
|            | -   9-i, 9-1 through 9-3, 9-5, 9-8, 9-11, 9-13 through  |
|            |     9-26                                                |
|            |                                                         |
|            | -   10-i, 10-1 through 10-3, 10-5 through 10-9, 10-21,  |
|            |     10-27, 10-43 through 10-46                          |
|            |                                                         |
|            | -   11-1 through 11-4                                   |
|            |                                                         |
|            | -   12-1, 12-5 through 12-7                             |
|            |                                                         |
|            | -   14-i, 14-2, 14-10                                   |
|            |                                                         |
|            | -   15-i, 15-1, 15-3, 15-5, 15-6, 15-8 through 15-10,   |
|            |     and                                                 |
|            |                                                         |
|            | -   16-12 and 16-13.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Cha  | > The table below describes the substantive changes     |
| nges Inclu | > included in this revision to Part X.                  |
| ded in Thi | >                                                       |
| s Revision | > ***Note***: Minor editorial changes have also been    |
|            | > made to                                               |
|            |                                                         |
|            | -   remove references to rescinded portions of M21-1    |
|            |                                                         |
|            | -   update obsolete terminology, and                    |
|            |                                                         |
|            | -   bring the revised documents into conformance with   |
|            |     M21-1MR publication standards.                      |
+------------+---------------------------------------------------------+

  ------------------------- ---------------------------------------------
  Location of the revision  Reason(s) for the change

  **Page 3-3**: Part X,     To clarify the action needed when the amount
  Chapter 3, Topic 1, Block of Civil Service Annuity reported by the
  g (X.3.1.g)               Office of Personnel Management does or does
                            not affect VA entitlement.

  **Page 5-8**: X.5.2.f     To update the example and correct the
                            "Result" to show that the award will create
                            an overpayment for four months, instead of
                            three.
  ------------------------- ---------------------------------------------

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Transmittal Sheet, Continued

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  Changes Included in This Revision (continued)

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+------------------------+---------------------------------------------+
| Location of the        | Reason(s) for the change                    |
| revision               |                                             |
+------------------------+---------------------------------------------+
| **Page 9-1**: X.9.1.b  | To note that Old Law Pension and Section    |
|                        | 306 Pension beneficiaries are excluded from |
|                        | the Income Verification Match (IVM).        |
+------------------------+---------------------------------------------+
| **Page 9-3**: X.9.2.b  | To reformat the note for clarity.           |
+------------------------+---------------------------------------------+
| **Page 9-8**: X.9.4.g  | -   To reflect that Priority 11 has been    |
|                        |     eliminated from the IVM.                |
|                        |                                             |
|                        | -   To show that cases where the difference |
|                        |     between income reported to the Internal |
|                        |     Revenue Service and income reported to  |
|                        |     VA is less than \$1,000 are not         |
|                        |     referred for verification.              |
+------------------------+---------------------------------------------+
| **Page 9-11**: X.9.6.a | -   To note that amounts received from      |
|                        |     participation in the Veterans Health    |
|                        |     Administration's (VHA's) Compensated    |
|                        |     Work Therapy (CWT) Program are not      |
|                        |     considered income for Improved Pension  |
|                        |     or individual unemployability (IU)      |
|                        |     purposes.                               |
|                        |                                             |
|                        | -   To delete the information on Old Law    |
|                        |     Pension and Section 306 Pension         |
|                        |     beneficiaries, as they are exempt from  |
|                        |     the IVM.                                |
+------------------------+---------------------------------------------+
| **Page 9-13**: X.9.7.a | To delete Block a, as Old Law Pension and   |
|                        | Section 306 Pension beneficiaries are       |
|                        | exempt from the IVM. The subsequent blocks  |
|                        | in this topic are renumbered.               |
+------------------------+---------------------------------------------+
| **Page 9-16**: X.9.8.b | To update the example and revise obsolete   |
|                        | terms.                                      |
+------------------------+---------------------------------------------+
| **Page 9-22**:         | -   To show that only individual            |
| X.9.12.a               |     unemployability (IU) cases with earned  |
|                        |     income over the current poverty         |
|                        |     threshold are referred to the regional  |
|                        |     offices (ROs).                          |
|                        |                                             |
|                        | -   To note that amounts received from      |
|                        |     participation in VHA's CWT Program are  |
|                        |     not considered income for IU purposes.  |
|                        |                                             |
|                        | -   To add a reference to IV.ii.2.F.32 for  |
|                        |     more information about the poverty      |
|                        |     threshold.                              |
+------------------------+---------------------------------------------+

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Transmittal Sheet, Continued

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  Changes Included in This Revision (continued)

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+------------------------+---------------------------------------------+
| Location of the        | Reason(s) for the change                    |
| revision               |                                             |
+------------------------+---------------------------------------------+
| **Pate 9-23**:         | To reflect that benefits are subject to     |
| X.9.12.f               | reduction if continuation of the rating is  |
|                        | based on sustained improvement in the SC    |
|                        | disability.                                 |
+------------------------+---------------------------------------------+
| **Pages 9-22 through   | To revise the block labels to reflect that  |
| 9-24**: X.9.12.a       | the information pertains to IU cases.       |
| through f              |                                             |
+------------------------+---------------------------------------------+
| **Pages 9-25 and       | To update the sample IVM sheet.             |
| 9-26**: X.9.13.a and b |                                             |
+------------------------+---------------------------------------------+
| **Page 10-21**:        | To add a reference to X.10.20 for a sample  |
| X.10.8.m               | of the inspection report format.            |
+------------------------+---------------------------------------------+
| **Page 10-27**:        | -   To show that the *Internal Revenue      |
| X.10.11.b              |     Service (IRS) Safeguard Activity        |
|                        |     Report* is due by close of business on  |
|                        |     November 30 of each year, instead of    |
|                        |     December 31.                            |
|                        |                                             |
|                        | -   To add a reference to X.10.20 for a     |
|                        |     sample of the inspection report format. |
+------------------------+---------------------------------------------+
| **Pages 10-43 through  | -   To add Topic 20, Exhibit 8, as a sample |
| 10-46**: X.10.20       |     of the *IRS Safeguard Activity Report.* |
|                        |                                             |
|                        | -   To state that any unresolved            |
|                        |     deficiencies will be noted in the       |
|                        |     current report, and that the next       |
|                        |     annual report will document the action  |
|                        |     taken to resolve the deficiencies.      |
+------------------------+---------------------------------------------+
| **Page 11-1**:         | To remove the information about ROs         |
| X.11.1.a               | receiving two copies of the Department of   |
|                        | Defense's (DoD's) quarterly listing of      |
|                        | persons receiving active duty pay and VA    |
|                        | disability benefits concurrently. Only one  |
|                        | copy is provided.                           |
+------------------------+---------------------------------------------+
| **Page 11-3**:         | To remove the instructions to send a letter |
| X.11.1.h               | to the veteran's unit commander to request  |
|                        | identifying information. This procedure has |
|                        | been discontinued.                          |
+------------------------+---------------------------------------------+
| **Page 11-4**:         | -   To change the label of the block to     |
| X.11.1.j               |     "EOD Date Not Shown" to better reflect  |
|                        |     its content.                            |
|                        |                                             |
|                        | -   To remove the text related to a         |
|                        |     veteran's unit commander and unit       |
|                        |     address.                                |
|                        |                                             |
|                        | -   To add a reference to M21-1, Part V,    |
|                        |     for information on suspension of        |
|                        |     benefits.                               |
+------------------------+---------------------------------------------+

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Transmittal Sheet, Continued

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  Changes Included in This Revision (continued)

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+------------------------+---------------------------------------------+
| Location of the        | Reason(s) for the change                    |
| revision               |                                             |
+------------------------+---------------------------------------------+
| **Page 12-3**:         | To delete the note regarding obtaining      |
| X.12.1.c, Step 6       | additional information from the Social      |
|                        | Security Administration's Prison Match.     |
+------------------------+---------------------------------------------+
| **Page 12-7**:         | To note that if the inmate locator on the   |
| X.12.2.g               | Bureau of Prisons website shows an actual   |
|                        | or projected release date one year or more  |
|                        | from the computation date, it may be        |
|                        | generally assumed the prisoner was          |
|                        | convicted of a felony.                      |
+------------------------+---------------------------------------------+
| **Page 14-11**:        | To delete Block c, as ROs are no longer     |
| X.14.4.c               | required to retain *Over Age 100 Control    |
|                        | Lists* for two years from the date on the   |
|                        | list.                                       |
+------------------------+---------------------------------------------+
| **Page 15-3**:         | -   To revise the block for clarity and     |
| X.15.1.d               |     consistency with M21-1MR style and      |
|                        |     format.                                 |
|                        |                                             |
|                        | -   To reflect that the claims folder       |
|                        |     should not be transferred to the        |
|                        |     Pension Maintenance Center (PMC) unless |
|                        |     the PMC requests it.                    |
+------------------------+---------------------------------------------+
| **Page 15-6**:         | To revise the block for clarity and         |
| X.15.2.e               | consistency with M21-1MR style and format.  |
+------------------------+---------------------------------------------+
| **Page 15-8**:         | -   To change the label of the block to "No |
| X.15.2.h               |     Response to Prison Facility" to better  |
|                        |     reflect its content.                    |
|                        |                                             |
|                        | -   To show that if a prison facility does  |
|                        |     not respond to a request for            |
|                        |     information within 60 days, it may be   |
|                        |     assumed the beneficiary's award is      |
|                        |     subject to adjustment.                  |
|                        |                                             |
|                        | -   To add a reference to X.15.3 for the    |
|                        |     suggested language to use in notices of |
|                        |     proposed adverse action.                |
+------------------------+---------------------------------------------+
| **Pages 15-9 and       | To add Topic 3 to provide the suggested     |
| 15-10**: X.15.3        | language to use in notices of proposed      |
|                        | adverse action when a prison facility does  |
|                        | not respond to VA's request for             |
|                        | information.                                |
+------------------------+---------------------------------------------+
| **Page 16-12**:        | To show VAVBAWAS/CO/212A as the correct     |
| X.16.3.d               | address of Compensation and Pension         |
|                        | Service's fugitive felon contact mailbox.   |
+------------------------+---------------------------------------------+

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Transmittal Sheet, Continued

+------------+---------------------------------------------------------+
| ##### R    | > None                                                  |
| escissions |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > By Direction of the Under Secretary for Benefits      |
|  Authority |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | Bradley G. Mayes, Director                              |
|  Signature |                                                         |
|            | > Compensation and Pension Service                      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### Di   | > RPC: 2068                                             |
| stribution | >                                                       |
|            | > FD: EX: ASO and AR (included in RPC 2068)             |
|            | >                                                       |
|            | > LOCAL REPRODUCTION AUTHORIZED                         |
+------------+---------------------------------------------------------+