## Section C. Coordinating Military Retirement Pay Cases With Retired Pay Centers and Service Departments

#### Overview

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

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

  14           Retirement Pay Coordinator                     5-C-2

  15           Communicating Award Adjustments                5-C-5

  16           Handling Legislative Increases in Compensation 5-C-7

  17           Communicating Errors and Discrepancies         5-C-15

  18           Handling Writeouts                             5-C-18

  19           Sharing Election/Waiver Forms                  5-C-20

  20           Responding to the Retired Pay Center's Request 5-C-21
               for a Beneficiary Identification and Records   
               Locator Subsystem (BIRLS) Inquiry              
  ------------ ---------------------------------------------- ------------

#### 14. Retirement Pay Coordinator

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the retirement pay |
| troduction | > coordinator, including information on                 |
|            |                                                         |
|            | -   appointing a retirement pay coordinator             |
|            |                                                         |
|            | -   the retirement pay coordinator's responsibilities   |
|            |                                                         |
|            | -   contacting the Defense Finance and Accounting       |
|            |     Service (DFAS)                                      |
|            |                                                         |
|            | -   documenting contact with DFAS                       |
|            |                                                         |
|            | -   non-routine cases and Survivor Benefit Plan (SBP)   |
|            |     cases                                               |
|            |                                                         |
|            | -   contact for problems, and                           |
|            |                                                         |
|            | -   the retired pay centers by service division.        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Regional offices (ROs) should appoint someone to act  |
|  Appointin | > as retirement pay coordinator and serve as the        |
| g a Retire | > authorization activity's single point of contact for  |
| ment Pay C | > telephone inquiries to the Defense Finance and        |
| oordinator | > Accounting Service (DFAS). The RO military records    |
|            | > specialist may be assigned this task.                 |
|            | >                                                       |
|            | > ***Note***: The DFAS handles most military retirement |
|            | > pay accounts.                                         |
|            | >                                                       |
|            | > ***Reference***: For more information on retired pay  |
|            | > centers, see M21-1MR, Part III, Subpart v, 5.C.14.g.  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > By appointing a single retirement pay coordinator for |
| ### b. Ret | > each RO, that person is able to                       |
| irement Pa |                                                         |
| y Coordina | -   handle multiple military retirement pay inquiries   |
| tor Respon |     with a single phone call, and                       |
| sibilities |                                                         |
|            | -   develop expertise in military retirement pay        |
|            |     matters.                                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c.   | > The phone number for contacting DFAS for questions    |
|  Contactin | > regarding the military annuity of any claimant,       |
| g the DFAS | > whether live or deceased, is 1-800-321-1080.          |
|            | >                                                       |
|            | > Hours of operation are Monday through Friday, from 7  |
|            | > a.m. to 7:30 p.m., Eastern Standard Time (EST). This  |
|            | > number is busiest on Mondays and the first days of    |
|            | > the month. The caller will get a 45-second recorded   |
|            | > message explaining menu options. The Customer Service |
|            | > Representative (CSR) at DFAS should always provide    |
|            | > his/her name.                                         |
+------------+---------------------------------------------------------+

Continued on next page

14\. Retirement Pay Coordinator, Continued

+------------+---------------------------------------------------------+
| c\.        | > ***Reference***: For more information on the          |
| Contacting | > telephone numbers for DFAS, see M21-1MR, Part III,    |
| the DFAS   | > Subpart iii, 2.k.76.                                  |
| (          |                                                         |
| continued) |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > For each attempt made to secure information from      |
|  Documenti | > DFAS, Department of Veterans Affairs (VA) RO          |
| ng Contact | > personnel should prepare a *VA Form 119, Report of    |
|  with DFAS | > Contact*, listing the                                 |
|            |                                                         |
|            | -   date                                                |
|            |                                                         |
|            | -   time                                                |
|            |                                                         |
|            | -   contact person, and                                 |
|            |                                                         |
|            | -   results of the call.                                |
|            |                                                         |
|            | > ***Note***: For security purposes, in order to        |
|            | > confirm the identity of the caller, the CSR may at    |
|            | > times choose to return a call rather than answer      |
|            | > questions directly.                                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > For non-routine cases, such as a break in Survivor    |
| # e. Non-R | > Benefit Plan (SBP) entitlement due to remarriage, the |
| outine and | > call center forwards the inquiry to its Operations    |
|  SBP Cases | > Department, which should respond to the VA RO within  |
|            | > three working days.                                   |
|            | >                                                       |
|            | > For SBP cases, please be sure to provide the CSR with |
|            | > the following information:                            |
|            |                                                         |
|            | -   the name of deceased veteran and Social Security    |
|            |     number (SSN)                                        |
|            |                                                         |
|            | -   the name of widow/widower and SSN, and              |
|            |                                                         |
|            | -   the award period(s) and rate(s).                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### f.   | > If VARO personnel encounter any problems, contact Joe |
| Contact fo | > Miller, Office of Resource Management, at (202)       |
| r Problems | > 273-7309.                                             |
+------------+---------------------------------------------------------+

Continued on next page

14\. Retirement Pay Coordinator, Continued

+------------+---------------------------------------------------------+
| ##### g.   | > Use the table below to determine which retired pay    |
|  Retired P | > center handles the military retirement pay accounts   |
| ay Centers | > for each service division.                            |
|  by Servic |                                                         |
| e Division |                                                         |
+------------+---------------------------------------------------------+

+-----------------------------------+-----------------------------------+
| Division of Service               | Retired Pay Center                |
+-----------------------------------+-----------------------------------+
| -   Army                          | Defense Finance and Accounting    |
|                                   | Service                           |
| -   Navy                          |                                   |
|                                   | U.S. Military Retired Pay         |
| -   Air Force, and                |                                   |
|                                   | PO Box 7130                       |
| -   Marine Corps                  |                                   |
|                                   | London KY 40742-7130              |
|                                   |                                   |
|                                   | \(800\) 321-1080                  |
+-----------------------------------+-----------------------------------+
| -   Coast Guard, and              | Commanding Officer (RAS)          |
|                                   |                                   |
| -   National Oceanic and          | U. S. Coast Guard                 |
|     Atmospheric Administration    |                                   |
|     (NOAA)                        | Personnel Service Center          |
|                                   |                                   |
|                                   | 444 SE Quincy St                  |
|                                   |                                   |
|                                   | Topeka KS 66683-3591              |
|                                   |                                   |
|                                   | \(800\) 772-8724                  |
+-----------------------------------+-----------------------------------+
| > Public Health Service (PHS)     | > Commissioned Personnel          |
|                                   | > Operations Division,            |
|                                   | >                                 |
|                                   | > Public Health Service,          |
|                                   | >                                 |
|                                   | > 5600 Fishers Lane'              |
|                                   | >                                 |
|                                   | > Rockville MD 20857              |
|                                   | >                                 |
|                                   | > ***Note***: Inquiries to the    |
|                                   | > Public Health Service must be   |
|                                   | > in writing.                     |
+-----------------------------------+-----------------------------------+

#### 15. Communicating Award Adjustments

+------------+---------------------------------------------------------+
| ##### In   | > This topic contain information on communicating award |
| troduction | > adjustments, including                                |
|            |                                                         |
|            | -   the automatic transmission of Department of         |
|            |     Veterans Affairs (VA) award adjustments to the      |
|            |     retired pay center                                  |
|            |                                                         |
|            | -   notifying the retired pay center of an adjustment   |
|            |     covering more than three prior periods, and         |
|            |                                                         |
|            | -   retired pay center notification of award            |
|            |     adjustments.                                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Award adjustments of Department of Veterans Affairs   |
| #### a. Au | > (VA) benefits of three or fewer prior lines paid to   |
| tomatic Tr | > veterans who are in receipt of military retirement    |
| ansmission | > pay are automatically transmitted to the appropriate  |
|  of VA Awa | > retired pay center.                                   |
| rd Adjustm | >                                                       |
| ents to th | > However, the automatic transmission only notifies the |
| e Retired  | > retired pay center of adjustments for three or fewer  |
| Pay Center | > prior periods, regardless of the number of prior      |
|            | > award lines entered in the Benefits Delivery Network  |
|            | > (BDN). Unless notified by the veteran, the retired    |
|            | > pay center is not aware if a VA adjustment covers     |
|            | > more than three prior periods.                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b    | > To ensure that the veteran receives all benefits to   |
| . Notifyin | > which he/she is entitled, notify the retired pay      |
| g the Reti | > center in a locally-generated letter of the dates and |
| red Pay Ce | > amounts of any adjustment that covers more than three |
| nter of an | > prior periods.                                        |
|  Adjustmen | >                                                       |
| t Covering | > Format the locally-generated letter as indicated      |
|  More Than | > below.                                                |
|  Three Pri |                                                         |
| or Periods |                                                         |
+------------+---------------------------------------------------------+

  -------------------- ------------------ ---------- ------------------ ---------- ------------------
  Veteran's Name:      \[name\]           Social                        \[Social   
                                          Security                      Security   
                                          Number:                       number\]   

                                                                                   

  Before Adjustment by                                                             
  VA:                                                                              

                                                                                   

  Effective Date       Gross VA                      Net VA                        Withholding

  **\[mm/dd/yyyy\]**   **\[\$XXX.XX\]**              **\[\$YYY.YY\]**              **\[\$ZZZ.ZZ\]**

                                                                                   

  After Adjustment by                                                              
  VA:                                                                              

                                                                                   

  Effective Date       Gross VA                      Net VA                        Withholding

  **\[mm/dd/yyyy\]**   **\[\$XXX.XX\]**              **\[\$YYY.YY\]**              **\[\$ZZZ.ZZ\]**
  -------------------- ------------------ ---------- ------------------ ---------- ------------------

Continued on next page

15\. Communicating Award Adjustments, Continued

+------------+---------------------------------------------------------+
| #          | > Retired pay centers use letters and forms to advise   |
| #### c. Re | > the RO of any necessary award adjustments.            |
| tired Pay  | >                                                       |
| Center Not | > ***Note***: The retired pay center does *not* return  |
| ification  | > copies of *VA Form 21-651,* *Election of Compensation |
| of Award A | > in Lieu of Retired Pay or Waiver of Retired Pay to    |
| djustments | > Secure Compensation From Department of Veterans       |
|            | > Affairs (38 U.S.C. 5304(a)-5305)*.                    |
+------------+---------------------------------------------------------+

#### 16. Handling Legislative Increases in Compensation

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on handling           |
| troduction | > legislative increases in compensation, including      |
|            |                                                         |
|            | -   the required service department response to a       |
|            |     legislative increase in compensation                |
|            |                                                         |
|            | -   how data exchange transactions provide notice of    |
|            |     legislative increases in compensation               |
|            |                                                         |
|            | -   determining the responsibility for recouping        |
|            |     overpayments resulting from legislative increases   |
|            |                                                         |
|            | -   handling erroneous identification data in the       |
|            |     master record                                       |
|            |                                                         |
|            | -   handling waiver cases without special law (SL) code |
|            |     06 in the master record                             |
|            |                                                         |
|            | -   handling waiver cases without a waiver on file      |
|            |                                                         |
|            | -   handling cases with inadequate service data in the  |
|            |     master record, and                                  |
|            |                                                         |
|            | -   handling cases that appear on the NRPS VA           |
|            |     Legislative Increase Nonreceipt Report, and         |
|            |                                                         |
|            | -   determining the effective date for an award         |
|            |     adjustment due to a legislative increase.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The service department                                |
|  a. Requir |                                                         |
| ed Service | -   is on notice as to the increased compensation rate  |
|  Departmen |     changes required by a statute, and                  |
| t Response |                                                         |
|  to Legisl | -   has no authority to pay the veteran in excess of    |
| ative Incr |     the amount of military retirement pay less the      |
| ease in Co |     amount of the compensation payment as amended by    |
| mpensation |     the statute.                                        |
|            |                                                         |
|            | > ***Note***: This restriction applies to the           |
|            | > traditional retirement payments. Concurrent           |
|            | > Retirement and Disability Payments (CRDP) and Combat  |
|            | > Related Special Compensation (CRSC) are paid under    |
|            | > separate laws. See M21-1MR, Part III, Subpart v,      |
|            | > 5.A.6 and M21-1MR, Part III, Subpart v, 5.A.7 for     |
|            | > additional information about CRDP and CRSC.           |
+------------+---------------------------------------------------------+

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

+------------+---------------------------------------------------------+
| #          | > Any automatically adjusted award prepared in the RO   |
| #### b. Da | > to effect a legislative increase generates a data     |
| ta Exchang | > exchange to the retired pay centers. This data        |
| e Transact | > exchange                                              |
| ions Provi |                                                         |
| de Notice  | -   generates a tape from the cycle run during which    |
| of Legisla |     the awards are processed, and                       |
| tive Incre |                                                         |
| ases in Co | -   reflects adjusted awards, showing the increased     |
| mpensation |     rates when the computer automatically effects the   |
|            |     legislative change.                                 |
|            |                                                         |
|            | > In response to the data exchange, the retired pay     |
|            | > centers                                               |
|            |                                                         |
|            | -   update their records, and                           |
|            |                                                         |
|            | -   effect the necessary reduction in military          |
|            |     retirement pay.                                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > To avoid overpayments by either the service           |
| ## c. Dete | > department or VA, the ROs must make every effort to   |
| rmining th | > expedite award action on "*not adjust*" messages.     |
| e Responsi | >                                                       |
| bility for | > Use the table below to determine who is responsible   |
|  Recouping | > for recouping an overpayment resulting from a         |
|  Overpayme | > legislative increase.                                 |
| nts Result | >                                                       |
| ing From L | > ***Note***: For information about adjustments due to  |
| egislative | > VA error, see the note at M21-1, Part III, Subpart v, |
|  Increases | > 5.B.10.b.                                             |
+------------+---------------------------------------------------------+

  -------------------------------- --------------------------------------
  If VA notifies the retired pay   Then the responsibility for recouping
  center of the rate change ...    any overpayment falls on ...

  within 90 days or less of the    the service center.
  date the legislation is signed   

  more than 90 days after the date VA.
  the legislation is signed        
  -------------------------------- --------------------------------------

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > If the retired pay center submits cases included on   |
|  Handling  | > the VA data exchange for which they cannot locate a   |
| Erroneous  | > matching account, VA will                             |
| Identifica |                                                         |
| tion Data  | -   review the claims folder to determine if the        |
| in the Mas |     mismatch was due to erroneous identification data   |
| ter Record |     in the master record, such as a                     |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   branch of service error                             |
|            |                                                         |
|            | -   name discrepancy, or                                |
|            |                                                         |
|            | -   SSN error                                           |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   furnish the correct data to the appropriate service |
|            |     department via a locally-generated letter, as       |
|            |     provided in M21-1MR, Part III, Subpart v, 5.C.17.b, |
|            |     and                                                 |
|            |                                                         |
|            | -   include the following statement in the letter:      |
|            |     "*Increase\--PL 10X-XXX. Take simultaneous action   |
|            |     to correct the master record.*"                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e. H | > The retired pay center inquires about cases indicated |
| andling Wa | > by retirement pay records as waiver cases, if those   |
| iver Cases | > cases are not included on the data exchange           |
|  Without S | > transaction. These situations arise because SL code   |
| L Code 06  | > 06 is absent from the master record.                  |
| in the Mas | >                                                       |
| ter Record | > In these situations, VA confirms that                 |
|            |                                                         |
|            | -   a proper automatic award adjustment has taken       |
|            |     place, or                                           |
|            |                                                         |
|            | -   a waiver is of record.                              |
|            |                                                         |
|            | > If a waiver is on file and an adjustment has been     |
|            | > accomplished or is not necessary (for example, a      |
|            | > static, statutory "q" award for arrested              |
|            | > tuberculosis), VA will                                |
|            |                                                         |
|            | -   advise the retired pay center by locally-generated  |
|            |     letter, and                                         |
|            |                                                         |
|            | -   take simultaneous action to correct the master      |
|            |     record.                                             |
+------------+---------------------------------------------------------+

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

+------------+---------------------------------------------------------+
| #####      | > In some cases, a retired pay center inquiry reveals a |
|  f. Handli | > case in which compensation was awarded without a      |
| ng Waiver  | > waiver on file.                                       |
| Cases With | >                                                       |
| out a Waiv | > In such cases                                         |
| er on File |                                                         |
|            | -   send the veteran the required due process           |
|            |     notification, informing him/her of the              |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   potential adjustment or discontinuous date of the   |
|            |     award, and                                          |
|            |                                                         |
|            | -   amount of any possible overpayment, and             |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   solicit a waiver from the veteran by furnishing *VA |
|            |     Form 21-651, Election of Compensation in Lieu of    |
|            |     Retired Pay or Waiver of Retired Pay to Secure      |
|            |     Compensation From Department of Veterans Affairs    |
|            |     (38 U.S.C. 5304(a)-5305)* for the veteran to        |
|            |     complete and return to the RO.                      |
|            |                                                         |
|            | > Upon receipt of the signed *VA Form 21-651, Election  |
|            | > of Compensation in Lieu of Retired Pay or Waiver of   |
|            | > Retired Pay to Secure Compensation From Department of |
|            | > Veterans Affairs (38 U.S.C. 5304(a)-5305)* or at the  |
|            | > expiration of the control period,                     |
|            |                                                         |
|            | -   adjust or discontinue the award, as appropriate,    |
|            |     and                                                 |
|            |                                                         |
|            | -   notify the retired pay center                       |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   of the action taken, and                            |
|            |                                                         |
|            | -   if a signed *VA Form 21-651, Election of            |
|            |     Compensation in Lieu of Retired Pay or Waiver of    |
|            |     Retired Pay to Secure Compensation From Department  |
|            |     of Veterans Affairs (38 U.S.C. 5304(a)-5305)* could |
|            |     not be obtained from the veteran.                   |
+------------+---------------------------------------------------------+

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

+------------+---------------------------------------------------------+
| ###        | > Use the table below to handle a case that is returned |
| ## g. Hand | > to the RO because of inadequate service data in the   |
| ling Cases | > master record.                                        |
|  With Inad |                                                         |
| equate Ser |                                                         |
| vice Data  |                                                         |
| in the Mas |                                                         |
| ter Record |                                                         |
+------------+---------------------------------------------------------+

+-------------------+-----------------------+-------------------------+
| Form Issued to RO | Reason                | Action                  |
+-------------------+-----------------------+-------------------------+
| *VA Form 20-8270, | The case is not       | -   Enter the corrected |
| C&P Master        | included on the data  |     data into the       |
| Record-Audit      | exchange transaction  |     master record, and  |
| Writeout*         | because of inadequate |                         |
| (message code     | service data.         | -   send a              |
| 723) with the     |                       |     locally-generated   |
| additional legend |                       |     letter to the       |
| "*insufficient    |                       |     retired pay center  |
| service data*"    |                       |     as provided in      |
|                   |                       |     M21-1MR, Part III,  |
|                   |                       |     Subpart v,          |
|                   |                       |     5.C.17.b.           |
+-------------------+-----------------------+-------------------------+
| *VA Form 20-8270, | Although the case     | > Correct the master    |
| C&P Master        | does not need an      | > record data so that   |
| Record-Audit      | adjustment, the       | > the data exchange     |
| Writeout*         | service data is       | > transaction can be    |
| (message code     | insufficient. This    | > used to furnish a     |
| 861)              | insufficient data     | > future adjustment.    |
|                   | message could be      | >                       |
|                   | caused by the lack of | > ***Note***: It is not |
|                   | a SSN even if the     | > necessary to notify   |
|                   | record contains a     | > the service           |
|                   | service number.       | > department in this    |
|                   |                       | > case.                 |
+-------------------+-----------------------+-------------------------+

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

+------------+---------------------------------------------------------+
| ##### h. H | > After 45 days, the retired pay centers generate an    |
| andling Ca | > *NRPS VA Legislative Increase Nonreceipt Report*,     |
| ses That A | > listing the cases for which they have received no     |
| ppear on t | > data exchange transaction or award adjustment notice. |
| he NRPS VA | >                                                       |
|  Legislati | > The retired pay centers furnish these reports to VA   |
| ve Increas | > Central Office (CO) (212), which then distributes     |
| e Nonrecei | > them to the ROs of jurisdiction.                      |
| pt Report  | >                                                       |
|            | > The RO reviews the reports and compares the data      |
|            | > against BDN and the claims folder, if necessary. Use  |
|            | > the table below to determine the action to take with  |
|            | > the cases listed on the *NRPS VA Legislative Increase |
|            | > Nonreceipt Report*.                                   |
+------------+---------------------------------------------------------+

+-----------------------------------+-----------------------------------+
| If ...                            | Then ...                          |
+-----------------------------------+-----------------------------------+
| SL code 06 is *not* in the master | either enter SL code 06 or        |
| record                            | initiate development.             |
|                                   |                                   |
|                                   | ***Rationale***: If a veteran is  |
|                                   | on the *NRPS VA Legislative       |
|                                   | Increase Nonreceipt Report*, this |
|                                   | indicates that the veteran is on  |
|                                   | the retirement pay rolls.         |
+-----------------------------------+-----------------------------------+
| -   SL code 06 is in the master   | make the adjustment.              |
|     record, but                   |                                   |
|                                   | ***Reference***: For information  |
| -   *no* adjustment has been made | on determining the effective date |
|     for the legislative increase  | for the adjustment, see M21-1MR,  |
|                                   | Part III, Subpart v, 5.C.16.i.    |
+-----------------------------------+-----------------------------------+
| -   SL code 06 is in the master   | -   prepare another award         |
|     record, and                   |     repeating existing award      |
|                                   |     lines for the purpose of      |
| -   an adjustment to effect the   |     electronically notifying the  |
|     legislative increase was      |     service department of the VA  |
|     authorized before the first   |     adjustment, and               |
|     of the second month following |                                   |
|     the month of the legislative  | -   check to make sure that the   |
|     increase                      |     veteran's correct SSN is in   |
|                                   |     the master record.            |
| ***Example***: Before February 1, |                                   |
| 2007, for a December 1, 2006,     |                                   |
| legislative increase.             |                                   |
+-----------------------------------+-----------------------------------+

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

  -----------------------------------------------------------------------
  h\. Handling Cases That Appear on the NRPS VA Legislative Increase
  Nonreceipt Report (continued)

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

+-----------------------------------+-----------------------------------+
| If ...                            | Then ...                          |
+-----------------------------------+-----------------------------------+
| the veteran's award has been      | -   notify the service department |
| discontinued                      |     of the discontinuance and the |
|                                   |     reason for the                |
|                                   |     discontinuance, and           |
|                                   |                                   |
|                                   | -   furnish the veteran's SSN     |
|                                   |     with the notification.        |
|                                   |                                   |
|                                   | ***Note***: If the veteran's      |
|                                   | award was discontinued due to the |
|                                   | veteran's death and a copy of the |
|                                   | veteran's death certificate is of |
|                                   | record, send a copy of the death  |
|                                   | certificate to the service        |
|                                   | department.                       |
+-----------------------------------+-----------------------------------+

+------------+---------------------------------------------------------+
| ###        | > Use the table below to determine the effective date   |
| ## i. Dete | > for an award adjustment due to a legislative          |
| rmining th | > increase.                                             |
| e Effectiv |                                                         |
| e Date for |                                                         |
|  an Award  |                                                         |
| Adjustment |                                                         |
|  Due to a  |                                                         |
| Legislativ |                                                         |
| e Increase |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If the adjusted award is         | Then the effective date of the    |
| authorized within a cycle that   | adjustment is ...                 |
| ends ...                         |                                   |
+----------------------------------+-----------------------------------+
| on or before the 14^th^ of the   | the date of the legislative       |
| second month after the month of  | increase.                         |
| the legislative increase         |                                   |
|                                  |                                   |
| ***Example***: Before February   |                                   |
| 14, 2007, for a December 1,      |                                   |
| 2006, legislative increase.      |                                   |
+----------------------------------+-----------------------------------+

Continued on next page

16\. Handling Legislative Increases in Compensation, Continued

  -----------------------------------------------------------------------
  i\. Determining the Effective Date for an Award Adjustment Due to a
  Legislative Increase (continued)

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

+----------------------------------+-----------------------------------+
| If the adjusted award is         | Then the effective date of the    |
| authorized within a cycle that   | adjustment is ...                 |
| ends ...                         |                                   |
+----------------------------------+-----------------------------------+
| after the 14^th^ of the second   | determined under the provisions   |
| month after the month of the     | of M21-1MR, Part III, Subpart v,  |
| legislative increase             | 5.B.9.                            |
|                                  |                                   |
| ***Example***: After February    |                                   |
| 14, 2007, for a December 1,      |                                   |
| 2006, legislative increase.      |                                   |
|                                  |                                   |
| ***Reference***: For the cycle   |                                   |
| cutoff date, see column 2 of the |                                   |
| Compensation and Pension         |                                   |
| Schedule of Operations on the    |                                   |
|                                  |                                   |
| -   BDN STAT screen, or          |                                   |
|                                  |                                   |
| -   Hines Information Technology |                                   |
|     Center Intranet site.        |                                   |
+----------------------------------+-----------------------------------+

#### 17. Communicating Errors and Discrepancies

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on communicating      |
| troduction | > errors and discrepancies, including                   |
|            |                                                         |
|            | -   handling an error in the effective date of payment  |
|            |                                                         |
|            | -   notifying the retired pay center of an error in the |
|            |     VA master record                                    |
|            |                                                         |
|            | -   determining the effective date for the offset of VA |
|            |     benefits in a case with an error in the master      |
|            |     record, and                                         |
|            |                                                         |
|            | -   handling a discrepancy in an award or waiver date.  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > If the retired pay center receives an award with an   |
| Handling a | > effective date of payment or increase other than the  |
| n Error in | > date authorized under M21-1MR, Part III, Subpart v,   |
|  the Effec | > 5.B.9, the retired pay center                         |
| tive Date  |                                                         |
| of Payment | -   effects an offset from the first of the current     |
|            |     month, and                                          |
|            |                                                         |
|            | -   advises the RO of jurisdiction.                     |
+------------+---------------------------------------------------------+

Continued on next page

17\. Communicating Errors and Discrepancies, Continued

+------------+---------------------------------------------------------+
| ##### b.   | > ROs occasionally discover errors in the VA master     |
|  Notifying | > record that require corrective action other than an   |
|  the Retir | > award action. For example, the VA master record may   |
| ed Pay Cen | > lack SL code 06.                                      |
| ter of an  | >                                                       |
| Error in t | > Because this type of correction is not transmitted by |
| he VA Mast | > the data exchange, the RO must                        |
| er Record  |                                                         |
|            | -   send a locally-generated letter formatted as        |
|            |     indicated in M21-1MR, Part III, Subpart v,          |
|            |     5.C.15.b, and                                       |
|            |                                                         |
|            | -   clearly state that                                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   a data exchange transaction cannot be accomplished  |
|            |     for the particular action, and                      |
|            |                                                         |
|            | -   the retired pay center must manually adjust the     |
|            |     case.                                               |
|            |                                                         |
|            | > ***Reference***: For the addresses of retired pay     |
|            | > centers, see M21-1MR, Part III, Subpart iii, 2.K.76.  |
|            | >                                                       |
|            | > ***Note***: Address code 35 applies to retirement pay |
|            | > information for Army, Navy, Air Force, and Marine     |
|            | > Corps retirees.                                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > The effective date from which the retired pay center  |
| #### c. De | > offsets VA payments, due to an error in the master    |
| termining  | > record, is determined by the date that VA sends the   |
| the Effect | > locally-generated letter to the retired pay center.   |
| ive Date f | >                                                       |
| or the Off | > Use the table below to determine the requested date   |
| set VA Ben | > of initial offset or increased offset.                |
| efits in a |                                                         |
|  Case With |                                                         |
|  an Error  |                                                         |
| in the Mas |                                                         |
| ter Record |                                                         |
+------------+---------------------------------------------------------+

  ----------------------------------- -----------------------------------
  If the letter is released to the    The requested date of initial
  retired pay center ...              offset or increased offset cannot
                                      be earlier than the first day of
                                      the ...

  before the fifth of the current     current month.
  month                               

  on or after the fifth of the        following month.
  current month                       
  ----------------------------------- -----------------------------------

Continued on next page

17\. Communicating Errors and Discrepancies, Continued

+------------+---------------------------------------------------------+
| ##### d.   | > If the retired pay center discovers a discrepancy in  |
| Handling a | > an award or waiver date                               |
|  Discrepan |                                                         |
| cy in an A | -   the retired pay center                              |
| ward or Wa |                                                         |
| iver Dates | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   notifies the RO of the discrepancy                  |
|            |                                                         |
|            | -   indicates that the discrepancy is a result of a     |
|            |     data exchange discrepancy, and                      |
|            |                                                         |
|            | -   maintains a 30-day suspense on automated date       |
|            |     exchange inquiries, and                             |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   the RO                                              |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   handles these requests on an expedited basis, and   |
|            |                                                         |
|            | -   furnishes the retired pay center with a prompt      |
|            |     reply in all cases, including cases for which no    |
|            |     corrective action is required.                      |
|            |                                                         |
|            | > ***Note***: In emergent cases                         |
|            |                                                         |
|            | -   the retired pay center contacts the regional office |
|            |     by telephone, and                                   |
|            |                                                         |
|            | -   the RO furnishes written confirmation of the action |
|            |     taken as a result of the telephone inquiry, if      |
|            |     requested.                                          |
+------------+---------------------------------------------------------+

#### 18. Handling Writeouts

+------------+---------------------------------------------------------+
| ##### In   | > Certain information cannot be transmitted to the      |
| troduction | > retired pay center by magnetic tape. For this reason, |
|            | > the master record issues a writeout to communicate    |
|            | > the information.                                      |
|            | >                                                       |
|            | > This topic contains information on handling           |
|            | > writeouts, including                                  |
|            |                                                         |
|            | -   when writeouts are issued                           |
|            |                                                         |
|            | -   handling cases when the master record does not show |
|            |     a veteran's SSN                                     |
|            |                                                         |
|            | -   handling cases when the master record shows both SL |
|            |     codes 06 and 10, and                                |
|            |                                                         |
|            | -   handling an unidentified military retirement pay    |
|            |     record.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > *VA Form 20-8270, C&P Master Record-Audit Writeout    |
| # a. When  | > issues* in SL code 06 cases during post-audit of a    |
| Writeouts  | > master record update only when the master record      |
| Are Issued |                                                         |
|            | -   does not show a veteran's SSN, or                   |
|            |                                                         |
|            | -   shows both SL codes 06 and 10.                      |
|            |                                                         |
|            | > All other transactions are transmitted to the retired |
|            | > pay center by magnetic tape.                          |
|            | >                                                       |
|            | > ***Reference***: For more information about specific  |
|            | > writeout messages, see [M21-1, Part V,                |
|            | > 19.12](htt                                            |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch19.doc). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > *VA Form 20-8270, C&P Master Record-Audit Writeout*   |
|  b. Handli | > (message code 722, 723, or 724) with the additional   |
| ng Cases W | > legend "*insufficient service data*" issues to the RO |
| hen the Ma | > when the master record does not show a veteran's SSN. |
| ster Recor | >                                                       |
| d Does Not | > As this type of error generates *no* data exchange    |
|  Show a Ve | > transaction, request the retired pay center to make   |
| teran's So | > any necessary adjustment as provided in M21-1MR, Part |
| cial Secur | > III, Subpart v, 5.C.17.b.                             |
| ity Number | >                                                       |
|            | > If VA cannot accomplish the offset effective the date |
|            | > of the award that generated *VA Form 20-8270*, *C&P   |
|            | > Master Record-Audit Writeout,* VA is responsible for  |
|            | > recouping the resulting overpayment.                  |
+------------+---------------------------------------------------------+

Continued on next page

18\. Handling Writeouts, Continued

+------------+---------------------------------------------------------+
| #####      | > The data exchange generated to the retired pay        |
| c. Handlin | > centers always contains the gross amounts payable. In |
| g Cases Wh | > Federal Employment Compensation (FEC) cases, where    |
| en the Mas | > the use of SL code 10 is required, the amount subject |
| ter Record | > to offset is the net amount.                          |
|  Shows Bot | >                                                       |
| h SL Codes | > *VA Form 20-8270, C&P Master Record-Audit Writeout*   |
|  06 and 10 | > (message code 702) with the additional legend "*sl    |
|            | > [10]{.smallcaps} review-sl 06 case*" issues to the RO |
|            | > when the master record shows both SL codes 06 and 10. |
|            | >                                                       |
|            | > Upon receipt of the *VA Form 20-8270, C&P Master      |
|            | > Record-Audit Writeout* in the RO                      |
|            |                                                         |
|            | -   send a locally-generated letter to the retired pay  |
|            |     center as provided in M21-1MR, Part III, Subpart v, |
|            |     5.C.17.b, and                                       |
|            |                                                         |
|            | -   advise that only the net amount is subject to       |
|            |     offset.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > In some cases, the additional legend "*insufficient   |
| # d. Handl | > service data*" is appended when the veteran's record  |
| ing an Uni | > does not contain one of the following pieces of data  |
| dentified  | > necessary for identifying the correct military        |
| Military R | > retirement pay record:                                |
| etirement  |                                                         |
| Pay Record | -   a valid SSN, or                                     |
|            |                                                         |
|            | -   the branch of service code.                         |
|            |                                                         |
|            | > In such cases, the routing on *VA Form 20-8270, C&P   |
|            | > Master Record-Audit Writeout* is input in order to    |
|            |                                                         |
|            | -   correct the master record, and                      |
|            |                                                         |
|            | -   promptly send the annotated *VA Form 20-8270, C&P   |
|            |     Master Record-Audit Writeout* to the proper retired |
|            |     pay center.                                         |
+------------+---------------------------------------------------------+

+-----------------------------------------------------------------------+
| > ***Reference***: For more information about the effective date of   |
| > correction, based on writeouts, see M21-1MR, Part III, Subpart v,   |
| > 5.C.17.c.                                                           |
+-----------------------------------------------------------------------+

#### 19. Sharing Election/Waiver Forms

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on sharing election   |
| troduction | > and waiver forms with the service department retired  |
|            | > pay center, including                                 |
|            |                                                         |
|            | -   the policy on sharing election and waiver forms,    |
|            |     and                                                 |
|            |                                                         |
|            | -   sending a copy of an election or waiver to the      |
|            |     retired pay center.                                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > A waiver by the veteran must be on file prior to      |
| ### a. Pol | > award action.                                         |
| icy on Sha | >                                                       |
| ring Elect | > However, submit waiver forms to the retired pay       |
| ion and Wa | > centers *only* if specifically requested by the       |
| iver Forms | > retired pay centers, per M21-1MR, Part III, Subpart   |
|            | > v, 5.A.2.c. Do not routinely                          |
|            |                                                         |
|            | -   forward election or waiver forms, or                |
|            |                                                         |
|            | -   defer award actions pending confirmation of waiver  |
|            |     of military retirement pay, per M21-1MR, Part III,  |
|            |     Subpart v, 5.A.2.d.                                 |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > If specifically requested by the retired pay center   |
| # b. Sendi |                                                         |
| ng a Copy  | -   send a copy of *VA Form 21-651, Election of         |
| of an Elec |     Compensation in Lieu of Retired Pay or Waiver of    |
| tion or Wa |     Retired Pay to Secure Compensation From Department  |
| iver to th |     of Veterans Affairs (38 U.S.C. 5304(a)-5305)* or an |
| e Retired  |     application form containing a signed election or    |
| Pay Center |     waiver statement to the appropriate retired pay     |
|            |     center, and                                         |
|            |                                                         |
|            | -   prepare a locally-generated letter to show the      |
|            |     amounts and effective dates of VA compensation as   |
|            |     provided in M21-1MR, Part III, Subpart v, 5.C.15.b. |
|            |                                                         |
|            | > ***Note***: If VA receives an election or waiver from |
|            | > a claimant, use the local letter format as provided   |
|            | > in M21-1MR, Part III, Subpart v, 5.C.15.b to notify   |
|            | > the retired pay center.                               |
+------------+---------------------------------------------------------+

#### 20. Responding to the Retired Pay Center's Request for a Beneficiary Identification and Records Locator Subsystem (BIRLS) Inquiry

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on responding to the  |
| troduction | > retired pay center's request for a Beneficiary        |
|            | > Identification and Records Locator Subsystem (BIRLS)  |
|            | > inquiry, including                                    |
|            |                                                         |
|            | -   when a retired pay center requests a BIRLS inquiry  |
|            |                                                         |
|            | -   responding if no claims folder exists               |
|            |                                                         |
|            | -   responding if a claims folder exists, and           |
|            |                                                         |
|            | -   handling a running award and completing *DD Form    |
|            |     1285, Request for VA Compensation or Pension        |
|            |     Information*.                                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > November 21, 2006                                     |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > When a member of a reserve component (reserve or      |
| When a Ret | > national guard) begins receiving retirement pay (for  |
| ired Pay C | > example, he/she reaches age 60), the DFAS retired pay |
| enter Requ | > center                                                |
| ests a BIR |                                                         |
| LS Inquiry | -   forwards *DD Form 1285, Request for VA Compensation |
|            |     or Pension Information* in duplicate to the         |
|            |     designated RO, and                                  |
|            |                                                         |
|            | -   requests that the RO perform a Beneficiary          |
|            |     Identification and Records Locator Subsystem        |
|            |     (BIRLS) inquiry for the reservist.                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If BIRLS does *not* indicate that a claims folder     |
| b. Respond | > exists for the reservist                              |
| ing If No  |                                                         |
| Claims Fol | -   complete *DD Form 1285*, *Request for VA            |
| der Exists |     Compensation or Pension Information* and            |
|            |                                                         |
|            | -   return both copies to the retired pay center.       |
+------------+---------------------------------------------------------+

Continued on next page

20\. Responding to the Retired Pay Center's Request for a Beneficiary
Identification and Records Locator Subsystem (BIRLS) Inquiry, Continued

+------------+---------------------------------------------------------+
| #####      | > If BIRLS indicates that a claims folder exists for    |
|  c. Respon | > the reservist, refer *DD Form 1285, Request for VA    |
| ding If a  | > Compensation or Pension Information* with the BIRLS   |
| Claims Fol | > message attached to the RO of jurisdiction.           |
| der Exists | >                                                       |
|            | > Upon receipt of *DD Form 1285, Request for VA         |
|            | > Compensation or Pension Information* in the RO, if    |
|            | > there is                                              |
|            |                                                         |
|            | -   *a running award*, go to M21-1MR, Part III, Subpart |
|            |     v, 5.C.20.d, or                                     |
|            |                                                         |
|            | -   *no running award*                                  |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   complete the form to show this information          |
|            |                                                         |
|            | -   return the original *DD Form 1285, Request for VA   |
|            |     Compensation or Pension Information* to the retired |
|            |     pay center, and                                     |
|            |                                                         |
|            | -   file the copy in the claims folder.                 |
|            |                                                         |
|            | > ***Note***: There is no running award if a claim for  |
|            | > compensation is pending.                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Follow the steps in the table below when *DD Form     |
| #### d. Ha | > 1285, Request for VA Compensation or Pension          |
| ndling a R | > Information* is received by the RO and the veteran is |
| unning Awa | > found to have a running award of compensation.        |
| rd and Com |                                                         |
| pleting DD |                                                         |
|  Form 1285 |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

20\. Responding to the Retired Pay Center's Request for a Beneficiary
Identification and Records Locator Subsystem (BIRLS) Inquiry, Continued

  ----------------------------------------------------------------- -----
  d\. Handling a Running Award and Completing DD Form 1285          
  (continued)                                                       

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

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | If the veteran's application for VA benefits was on *VA Form |
|       | 21-526,* *Veteran's Application for Compensation or Pension* |
|       | dated                                                        |
|       |                                                              |
|       | -   *earlier than November 1977*, send *VA Form 21-651,      |
|       |     Election of Compensation in Lieu of Retired Pay or       |
|       |     Waiver of Retired Pay to Secure Compensation From        |
|       |     Department of Veterans Affairs (38 U.S.C. 5304(a)-5305)* |
|       |     to the veteran, or                                       |
|       |                                                              |
|       | -   *November 1977 or later*                                 |
|       |                                                              |
|       | ```{=html}                                                   |
|       | <!-- -->                                                     |
|       | ```                                                          |
|       | -   do *not* send *VA Form 21-651, Election of Compensation  |
|       |     in Lieu of Retired Pay or Waiver of Retired Pay to       |
|       |     Secure Compensation From Department of Veterans Affairs  |
|       |     (38 U.S.C. 5304(a)-5305)* to the veteran, and            |
|       |                                                              |
|       | -   do *not* take award action at this time, but instead     |
|       |     allow payments to continue temporarily.                  |
|       |                                                              |
|       | ***Note***: An application dated November 1977 or later,     |
|       | constitutes a waiver of military retirement pay unless       |
|       | accompanied by a statement negating election.                |
+-------+--------------------------------------------------------------+
| 2     | Enter SL code 06 in the master record.                       |
+-------+--------------------------------------------------------------+

Continued on next page

20\. Responding to the Retired Pay Center's Request for a Beneficiary
Identification and Records Locator Subsystem (BIRLS) Inquiry, Continued

  -----------------------------------------------------------------------
  d\. Handling a Running Award and Completing DD Form 1285 (continued)

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

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 3     | -   Complete *DD Form 1285, Request for VA Compensation or   |
|       |     Pension Information* to show the VA benefit being paid   |
|       |                                                              |
|       | -   return the original *DD Form 1285, Request for VA        |
|       |     Compensation or Pension Information* to the retired pay  |
|       |     center, and                                              |
|       |                                                              |
|       | -   file the copy in the claims folder.                      |
|       |                                                              |
|       | ***Note***: If the veteran's application for benefits on *VA |
|       | Form 21-526* is dated earlier than November 1977             |
|       |                                                              |
|       | -   indicate on *DD Form 1285, Request for VA Compensation   |
|       |     or Pension Information,* the date that *VA Form 21-651,  |
|       |     Election of Compensation in Lieu of Retired Pay or       |
|       |     Waiver of Retired Pay to Secure Compensation from        |
|       |     Veterans Administration,* was sent to the veteran, and   |
|       |                                                              |
|       | -   establish a control for return of the *VA Form 21-651,   |
|       |     Election of Compensation in Lieu of Retired Pay or       |
|       |     Waiver of Retired Pay to Secure Compensation From        |
|       |     Department of Veterans Affairs* (*38 U.S.C. 5304(a)* and |
|       |     *38 U.S.C. 5305)*.                                       |
+-------+--------------------------------------------------------------+

+-----------------------------------------------------------------------+
| > ***Result***: The service department retroactively adjusts its      |
| > account and creates any overpayment in the veteran's service        |
| > retirement pay.                                                     |
| >                                                                     |
| > ***Notes***:                                                        |
|                                                                       |
| -   Military retirement pay does not have to be waived if a claimant  |
|     is receiving VA Improved Pension. See M21-1MR, Part III, Subpart  |
|     v, 5.A.4.a.                                                       |
|                                                                       |
| -   Concurrent payment of VA compensation may be permitted along with |
|     payment of DoD-administered                                       |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   CRDP as described in M21-1, Part III, Subpart v, 5.A.6.b, and     |
|                                                                       |
| -   CRSC as described in M21-1MR, Part III, Subpart v, 5.A.7.a.       |
+-----------------------------------------------------------------------+