**CONTENTS**

**CHAPTER 3. ELIGIBILITY ISSUES**

**SUBCHAPTER I. GENERAL (ALL CATEGORIES)**

**PARAGRAPH** **PAGE**

3.01 Purpose 3-1

3.02 General 3-1

3.03 Eligibility---Preliminary Review. 3-1

3.04 Eligibility Based on Discharge for Service-Connected Disability, a
Medical Condition Preexisting Service, or a Condition Which Interfered
With the Veteran\'s Ability to Perform Military Duty 3-4

3.05 Eligibility Determinations---General 3-5

3.06 Eligibility Determinations---Specific Issues 3-5

3.07 \"Open Period\" Cases 3-14

3.08 Basic Kicker \[3-15\]

3.09 Claims Involving Selected Reserve Service \[3-20a\]

**SUBCHAPTER II. ADDITIONAL PROCEDURES FOR CATEGORY II ELIGIBILITY**

3.10 Development and Adjudication of Category II Case 3-22

3.11 30D Screen Interpretation 3-22

3.12 Verification of Service 3-23

3.13 Multiple Service Periods 3-24

3.14 RPO Requests to Regional Offices and to the RPC 3-25

3.15 \[Chapter 34\] Eligibility Determinations \[3-26\]

**SUBCHAPTER III. ADDITIONAL PROCEDURES FOR CATEGORY III ELIGIBILITY**

3.16 Development and Adjudication of Category III Case \[3-26\]

3.17 Category III Elections 3-27

3.18 \$1200 Payment \[3-30\]

**CONTENTS---CONTINUED**

**CHAPTER 3. ELIGIBILITY ISSUES**

**PARAGRAPH** **PAGE**

3.19 Claimants Who Have \[Chapter 32\] Contributions \[3-30\]

3.20 Denials \[3-31\]

3.21 Issuance of Certificates of Eligibility \[3-32\]

**FIGURE** **PAGE**

3.01. BDN 30D Screen 3-2

3.02. DOD Data Displayed on \[BDN\] 310 Screen 3-6

3.03. Kicker Codes and \[Total Kicker\] Amounts 3-15

3.03a. Kicker Codes and Normal Monthly Kicker Amounts 3-16

3.04. Kicker Formula for Veterans Who Did Not Complete Their Full
Enlistment 3-17

3.05. Worksheet for Adjusted Delimiting Date 3-25

3.06. Category IIIC Denial Paragraphs 3-28

3.07. \[Development Letter for \$1,200 for Category IIIC Cases With No
Chapter 32 Contributions 3-33

3.08. Development Letter for \$1,200 for Category IIIC Cases With
Chapter 32 Contributors of Record. 3-34\]

**CHAPTER 3. ELIGIBILITY ISSUES**

**SUBCHAPTER I. GENERAL (ALL CATEGORIES)**

**3.01 PURPOSE**

Chapter 3 provides procedures for the Adjudication Divisions at the
regional offices that process \[MGIB (Montgomery GI Bill---Active Duty
Educational Assistance Program)\] claims. These RPOs (Regional
Processing Offices) are Atlanta, Buffalo, Muskogee, and St. Louis. 38
CFR 21.7040 through 38 CFR 21.7051 cover \[MGIB\] eligibility. Except as
noted, this subchapter addresses procedural issues for category I,
category II, and category III cases. Subchapter II, Category II
Eligibility, provides additional instructions on category II cases.
Subchapter III, Category III Eligibility, provides additional
instructions on category III cases. This manual chapter includes all
changes through Public Law 102-568. See paragraph 1.03a for definitions
of categories I, II, and III.

**3.02 GENERAL**

**a. Jurisdiction.** See part I, chapter 4, for the jurisdiction of each
RPO and part III, chapter 3, for jurisdiction issues in general. The
RPOs should accept jurisdiction on any formal or informal claim for
\[MGIB\], or election to \[MGIB\]. If the claimant is not eligible for
\[MGIB\] but may be eligible for another benefit, the RPO should
disallow the \[MGIB\] claim and refer the case to the appropriate
regional office of jurisdiction over the other benefit.

*NOTE: Category III claimants already eligible for \[VEAP (Veterans\'
Educational Assistance Program)\] at the time of their election require
special handling. Local RO (Regional Office) Finance activities have
some jurisdiction over the \$1200 payment in category IIIC cases. See
paragraph 3.19 below.*

**b. References.** Read this chapter in connection with:

\(1\) Chapter 1, which provides eligibility requirements and describes
other unique features of \[MGIB\].

\(2\) Chapter 2, which describes how \[the BDN (Benefits Delivery
Network) works for MGIB\].

\(3\) Chapter 8, which describes the duties of the \[MGIB\] Specialist
and gives miscellaneous RPO procedures.

\(4\) Part III, chapter 3, which provides general procedures for
processing education applications.

**3.03 ELIGIBILITY---PRELIMINARY REVIEW**

To make an eligibility determination, the adjudicator must review VA
Form 22-1990, Application for Education Benefits, or an election to
receive category IIIC benefits, and available eligibility data from DOD
(Department of Defense). In some veteran cases, he or she also must
review DD Form 214, Certificate of Release or Discharge from Active
Duty. See subparagraph c below for exceptions.

*NOTE: In this chapter, the terms \"DOD data\" and \"DOD record\" refer
to eligibility data from the DOT (Department of Transportation), PHS
(Public Health Service), and NOAA (National Oceanic and Atmospheric
Administration), as well as the DOD.*

**a.** **Application Form.** The claimant must file VA Form 22-1990 to
receive \[MGIB\] benefits. In category IIIC cases, the claimant must
also elect to receive \[MGIB\] benefits. See paragraph 3.17b.

\(1\) A formal \[MGIB\] claim is:

\(a\) A claim on the December 1985 and later editions of VA Form 22-1990
regardless of whether or not the claimant specifically marks the
\[MGIB\] box or

\(b\) A claim on an earlier edition of VA Form 22-1990 accompanied by a
specific statement requesting \[MGIB\].

\(2\) Process any other request as an informal claim under existing
procedures. (See pt. III, par. 3.02b.)

\(3\) If the RPO does not have an acceptable application and the
claimant previously received \[VEA (Viet-Nam Era Educational
Assistance)\] benefits, the RPO will send a dictated letter to the
claimant requesting he or she furnish a later edition of VA Form
22-1990. Attach VA Form 22-1990 to the letter.

**b. DOD Data.** A \[BDN\] 30D screen, Chapter 30 DOD Data Record,
should exist for all category I claimants and for most category II and
category III claimants. Category IIIC claimants will probably not have a
30D screen at the time of initial election. (See fig. 3.01 for a sample
of the 30D screen. Refer to pt. II, ch. 4, for a complete description.)
If unable to locate a 30D screen, be sure that the \[MGIB\] claim is
established under the correct social security number. See paragraph 1.15
for potential category IIIC eligibility.

30D CHAPTER 30 DOD DATA RECORD 05-25-93

FILE NUMBER 123 45 6789-00 NAME SMITH J D

SOC SEC NUMBER 123 45 6789 DATE OF BIRTH 12-15-65

LAST ACTIVITY LOD LAST ACTIVITY DATE 03-19-89

DOD STATUS 22 PARTICIPANT SOURCE OF COMMISSION

PAY REDUCTION AMT \$1200.00 YEAR OF COMMISSION

BRANCH ARMY BASIC KICKER 222.22 L

EOD 04-01-86 SUPPL RATE

RAD 03-11-88 SUPPL KICKER

SEP REASON COG

CHAR OF SVC HON CH 34 M/R

ENL TERM 2 PRIOR TRNG MO DAYS

EDUCATION LEVEL 12 HS GRAD TRANSFERRED CH 34 ENT MO DAYS

\[DATE OF ENLISTMENT 02-17-86\]

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*CHAPTER 30 SELECTED RESERVE
DATA\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

SEL RES COMPONENT SEL RES ENLISTMENT TERM

ENT SEL RES REL SEL RES RSN

NEXT SCREEN

ALL RECORDS HAVE BEEN REVIEWED CHAPTER 30 DOD RECORD

CHAPTER 106 RECORD (DOD) EXISTS

**Figure 3.01. \[BDN\] 30D Screen**

\(1\) For category I claims, a 30D screen must exist to establish
eligibility. If no 30D screen appears under any social security number,
review the file for some indication that a 30D screen should exist
(e.g., claimant first entered on active duty after June 30, 1985.)

\(a\) If the claim shows such an indication, ask the DOD \[contact point
to review the veteran\'s participation [before]{.underline} denying the
claim. Use the procedure described in chapter 8 for contacting DOD.

*NOTE: In this chapter, a reference to \"contacting DOD\" means using
the chapter 8 procedure to contact the appropriate service department.*

\(b\) If there is no indication a 30D Screen should exist, deny the
claim. See paragraphs 2.06a and 2.15\] for disallowance procedures.

\(2\) For category II claims, a 30D screen is not mandatory. Use other
sources to establish eligibility as described in subchapter II.

\[(3) For category IIIA and category IIIB claims, a 30D screen should
exist. If there is no 30D screen, see subpargraph (1) above. For
category IIIC claims, a 30D screen is not mandatory. Use other sources
to establish eligibility as described in subchapter III.

**c. DD Form 214.** (For category II cases, refer to subch. II, and for
category III cases, refer to subch. III.)\] Do not require a DD Form 214
in all cases.

\(1\) Process the claim [without]{.underline} a DD Form 214 when:

\(a\) All the necessary data for completing the Target 310 screen is on
the Target 30D screen, or

\(b\) The 30D screen and BIRLS (Beneficiary Identification and Records
Locator Subsystem) information (see pt. III, ch. 3), taken together,
have all the necessary data. However, use BIRLS data only if the
VERIFIED indicator on the VID (Veterans Identification Data) screen
shows Y or the VADS (Veterans Assistance Discharge System) indicator
shows Y.

*NOTE: Do [not]{.underline} infer the reason for separation from service
from BIRLS data. The reason for separation is an issue when the claimant
does not complete the initial obligated period of service. The
separation reason coding in BIRLS was designed for VA benefits of all
types and preceded chapter 30. It does not match the coding used on the
30D screen, which was designed especially for chapter 30.*

\(2\) Request DD Form 214 for any periods of service for which:

\(a\) The necessary service data as described in subparagraph (1) above
is not available, or

\(b\) The reason for separation is a factor [and]{.underline} the
30D screen does not show a separation reason, or

\(c\) Data on the 30D screen conflicts with data from other sources such
as the veteran\'s application or BIRLS. A

1-day conflict as to the RAD (Release from Active Duty) date is an
exception. (See par. 3.06c(1).)

\(3\) If a DD Form 214 is required, an uncertified copy is acceptable
unless: there is a conflict with the 30D screen or BIRLS as to character
of discharge; there is a substantial conflict as to service dates; or
there is reason to suspect the claimant has altered the document.

\[**d. DD Form 2366.** For category IIIA cases, DD Form 2366, Montgomery
GI Bill Act of 1984 (Title 38 U.S.C.), may be required. See subchapter
III.\]

**3.04 ELIGIBILITY BASED ON DISCHARGE FOR SERVICE-CONNECTED
DISABILITY\[, A MEDICAL CONDITION PREEXISTING SERVICE, OR A CONDITION
WHICH INTERFERED WITH THE VETERAN\'S ABILITY TO PERFORM MILITARY DUTY**

For some claims, the only possible eligibility basis is a discharge for
service-connected disability, a discharge for a medical condition which
preexisted service, or a condition which interfered with the claimant\'s
ability to perform the requirements of military duty. Apply this
paragraph under the following circumstances: the claimant raises these
issues; the 30D screen shows a Separation Reason of DIS (Disability),
EPTS (Existed Prior To Service), or CIWD (Condition Interfering With
Duty); or the DD Form 214 shows the claimant\'s discharge was for a
disability, for a medical condition, for a physical condition, or for a
condition which interfered with duty:\]

**a. Authorization Decision.** The Authorization activity may make a
determination without referral for a rating in most situations. If
necessary, request a rating as described in subparagraph b. Claimants
may establish eligibility [without]{.underline} a rating in \[situations
such as the following\]:

\(1\) The Target 30D screen shows the separation reason to be either
EPTS, DIS, or CIWD. (A DD Form 214 does not need to be of record if the
30D screen displays these codes.)

\(2\) The DD Form 214 \[or additional evidence from DOD\] shows the
discharge or release was for a preexisting condition [and]{.underline}
that the service department characterized the discharge as a medical or
disability discharge. Misconduct is not a factor if the veteran\'s
discharge was for a preexisting condition.

\[(3) The DD Form 214 or additional evidence from DOD shows the
discharge or release was for a condition which interfered with duty.
There are many conditions that are not disabilities under the Schedule
for Rating Disabilities. Examples are: personality disorder, obesity,
failure to meet body fat standards, alcoholism, motion sickness, and
drug abuse. Typically, the claimant\'s DD Form 214 does not state that
the veteran was released for disability or for a \"medical condition\"
which preexisted service, but will state that he or she was released for
a \"Condition which interfered with the performance of duty.\"

*NOTE: If the separation reason coded on the 30D screen and the
separation reason given on DD Form 214 or in additional evidence from
DOD appear to conflict, contact the service department contact point. VA
should not on its own change a separation reason coded by DOD, unless
there is sufficient evidence. (The Army body fat cases are an example
where VA overrules the DOD determination based on evidence of record.
(See par. 3.06e.)*

\(4\) The DD Form 214 or additional evidence from DOD\] shows that the
veteran\'s discharge was for disability and there is no indication of
any issue involving misconduct. If there is an indication of misconduct,
request a line of duty determination from the station of jurisdiction.
If no claims folder exists, the line of duty decision will be done at
the RPO.

\(5\) An existing rating decision clearly indicates that the veteran\'s
discharge was [for]{.underline} a service-connected disability or for a
medical condition which preexisted service.

**b. Ratings.** If the procedures in subparagraph a above cannot resolve
the issue, request a rating decision. For example, a rating request is
appropriate if the claimant raises the issue of discharge for
service-connected disability and neither the 30D screen nor the
DD Form 214 supports the claimant\'s contention.

\(1\) If needed, request the regional office of jurisdiction over the
claims folder to provide the rating decision. If no claims folder
exists, send the request to \[the rating board at the RPO of
jurisdiction. If available, use the electronic mail system to make this
request.\] A sample request is: \"Please prepare a memorandum rating
under M21-1, Part VI, Chapter 4, to determine if the claimant was
released due to a service-connected disability or if released due to a
medical condition which preexisted service. Please send response to
(insert address).\"

\(2\) The rating decision from the regional office must specifically
address the issue of \"discharge for service-connected disability\" or
\"discharge for medical condition preexisting service.\" A rating which
merely states that a

disability is or is not service connected is not sufficient. Accept a
photocopy of a signed rating. A copy of the signed rating must follow an
electronic mail message which summarizes the essential points of a
rating.

**3.05 ELIGIBILITY DETERMINATIONS---GENERAL**

**a. Using \[the BDN\].** The \[BDN\] 310 screen, Chapter 30/106
Eligibility and Entitlement, calculates eligibility for category I,
category II, and category III cases. (See figure 3.02 for a sample of
this screen.) The system initially displays the data from the 30D screen
on the 310 screen. Only DOD can change category I data on the
30D screen. As described in chapter 2, paragraph 2.07c, Adjudicators may
change or override any item appearing on the 310 screen. However,
Adjudicators may not change the kicker code. (\[The BDN\] does not
display the kicker code on the 310 screen but does use it in 310 screen
processing and in rate calculations.) Although \[the BDN\] sometimes
indicates data discrepancies, Adjudicators must [be sure]{.underline}
that the data on the 310 screen is correct [before]{.underline} \[the
BDN\] calculates eligibility. This is particularly important in
category IIIC elections, where the data entered on the 310 screen will
be passed back to DOD and appear on future 30D and 310 screens.

**b. Manual Determinations.** If \[the BDN\] cannot generate an
eligibility determination, Adjudication will use the principles
described in chapter 1 to process the claim manually. This should happen
very rarely. Manual processing procedures are outlined in chapter 4.
Document the determination of eligibility, entitlement, delimiting date,
and full-time rate including kicker.

**c. Resolving Data Discrepancies.** Resolve data conflicts
[before]{.underline} allowing \[the BDN\] to compute eligibility. Do
this when data on the 30D screen conflicts with data on the application,
the DD Form 214, or data from other sources and the conflict affects
eligibility or rate of payment. If necessary, refer the conflict to the
contact point of the appropriate service department as provided in
chapter 8. See paragraph 3.17 for special procedures for category IIIA
eligibility and category IIIC elections.

**3.06 ELIGIBILITY DETERMINATIONS---SPECIFIC ISSUES**

See paragraph 2.06 for a complete description of the 310 screen and
paragraph 2.07c for the allowable keyed entries. This paragraph provides
additional instructions regarding various issues which the adjudicator
encounters when determining eligibility. The issues are in the order
they appear on the 310 screen.

310 CHAPTER 30 ELIGIBILITY AND ENTITLEMENT 05-25-93

FILE NUMBER XXX XX XXXX-00 END PRODUCT 200 NAME J D SMITH

SOC SEC NUMBER XXX-XX-XXXX DATE OF BIRTH 12-15-65

STATUS [22 PARTICIPANT]{.underline} BRANCH [ARMY]{.underline} IN SERVICE
ENL TERM [3]{.underline} YRS

EOD [04-01-86]{.underline} RAD [03-11-88]{.underline} \[DOE
[02-17-86]{.underline}\] CHARACTER [HON]{.underline} DEDUCTIBLE TIME

REASON [COG]{.underline} MOS DAYS

DISCHARGE UPGRADE EDUCATION LEVEL [12 HS GRAD]{.underline}

CH30 KICKER CODE CH32 KICKER PAY GRADE S/C DISCH

CHAPTER 34: INDICATOR CH 34 O/R CH 34 TRANSF ENT MOS DAYS

2X4 INFORMATION: ESR RSR REASON RSR FOR DISAB

ENL TERM YRS

ENTITLEMENT DETERMINATION CH30 DELIMIT/TERM DATE

PRIOR VA TRAINING MOS DAYS CH30 ORIGINAL ENTITLEMENT

TYPE CH30 ENTITLEMENT USED

DELIM DATE ADJ TYPE 106 ENTITLEMENT USED

FROM TO CH30 REMAIN ENTITLEMENT

NEXT SCREEN

**Figure 3.02. DOD Data Displayed on \[BDN\] 310 Screen (DOD data is
underlined)**

**a. STATUS:** This field will always show a 2-digit code followed by
the terms INELIGIBLE, PARTICIPANT, OPEN WINDOW, or UNKNOWN. For
category I cases, only DOD may change this field. In some instances, an
\"X\" may follow the term INELIGIBLE. The \"X\" means the claimant is a
\[MGIB\] participant but the coding has not been updated to reflect this
condition. The \"X\" serves as an override indicator for \[BDN\]
processing. If this field is blank, an \"X\" may be entered by the
adjudicator to override the UNKNOWN or INELIGIBLE status. This override
procedure will not be used without written verification of \[MGIB\]
eligibility from the service department contact point. Codes 00 through
28 (except for codes 09, 10, and 11) apply to category I cases, codes 30
through 45 apply to category II cases, and codes 09 through 11 apply to
category III cases. The following is a list of the possible 2-digit
codes with their meaning as assigned by DOD and the correct Adjudicative
action. In cases that are coded INELIGIBLE, Adjudication must review the
facts in the case and not permit \[the BDN\] to automatically deny these
claims without review.

\(1\) [00 INELIGIBLE]{.underline}. Code 00 means \[MGIB\] participation
is unknown. The 30D screen displays this code when the member has no pay
reductions but DOD has not determined if the member actually declined
\[MGIB\]. If this code appears, always contact DOD to obtain information
regarding eligibility. Do [not]{.underline} permit \[the BDN\] to
process a disallowance, as it is programmed to do, until DOD reviews the
facts.

\(2\) [01 INELIGIBLE]{.underline}. Code 01 means the member first
entered on active duty before July 1, 1985; or member\'s basic active
service date is either unknown or on or after January 1, 1985. If the
DD Form 214 or BIRLS contain contrary information which shows the
claimant first entered service on or after July 1, 1985, contact DOD to
obtain information regarding eligibility [before]{.underline} denying
the claim.

\(3\) [02 INELIGIBLE]{.underline}. After December 31, 1976, member
received a commission as an officer upon graduation from a service
academy or completion of an ROTC (Reserve Officer Training Corps)
scholarship educational assistance program. Deny cases with this code
unless the code conflicts with information on the veteran\'s application
or the DD Form 214. If a conflict exists, contact DOD.

CAUTION: DOD inputs a code for persons in this category at the time they
are first assigned to ROTC scholarship or to a service academy. The code
does not necessarily mean the person actually received a commission.

\(4\) [03 PARTICIPANT]{.underline}. The member has not declined
chapter 30. This code means the applicant did not decline chapter 30 and
therefore may be eligible if he or she meets other requirements.

\(5\) [04 INELIGIBLE]{.underline}. The member declined chapter 30 in
writing. Deny claims with this code unless the claimant specifically
alleges chapter 30 participation or if the 30D screen shows the claimant
had pay reductions. In the latter case, contact DOD before denying the
case.

\(6\) [05 PARTICIPANT]{.underline}. The member is on active duty for an
obligated period of service of less than 3 years and did not decline
chapter 30 participation. (Applicant is eligible if he or she meets all
other requirements.)

\(7\) [06 PARTICIPANT]{.underline}. The member is on active duty for an
obligated period of service of 3 years or more and did not decline
chapter 30 participation. (Applicant is eligible if he or she meets all
other requirements.)

\[(8) [09 PARTICIPANT]{.underline}. These claimants initially entered
active duty after June 30, 1985, but originally declined participation
in the chapter 30 program. Code 09 indicates that they have now elected
chapter 30 participation before being voluntarily or involuntarily
separated from service. DOD furnishes this code for category IIIA
(involuntary separations) and category IIIB (voluntary separations). For
category IIIC (voluntary separations), this code is passed back from DOD
after VA processes an election for voluntary separation between
December 5, 1991, and October 23, 1992.

\(9\) [10 CH32 TRANSFER]{.underline}. These claimants initially entered
active duty before July 1, 1985, and elected to participate in the
chapter 30 program before being voluntarily or involuntarily separated
from service. This code will be used for, but will not be limited to,
those persons transferring from the chapter 32 (VEAP) program. DOD
furnishes this code for category IIIA (involuntary separations) and
category IIIB (voluntary separations). For category IIIC (voluntary
separations), this code is passed back from DOD after VA processes an
election for voluntary separation between December 5, 1991, and
October 23, 1992.

\(10\) [11 DUAL ELIGIBILITY]{.underline}. These claimants originally
participated in the chapter 30 program but were voluntarily or
involuntarily separated and elected to be considered under the category
III provisions. They may have been coded as ELIGIBLE or PARTICIPANT
under category I provisions. DOD furnishes this code for category IIIA
(involuntary separations) and category IIIB voluntary separations. For
category IIIC voluntary separations, this code is passed back from DOD
after VA processes an election for voluntary separation between
December 5, 1991, and October 23, 1992.

(11)\] [20 INELIGIBLE]{.underline}. The member\'s basic active service
date is either unknown or between January 1, 1985, and June 30, 1985. If
the claimant\'s DD Form 214 shows an EOD (Entered on Duty) date before
July 1, 1985, deny the claim. If the EOD is on or after July 1, 1985,
contact DOD [before]{.underline} denying the claim.

\(12\) [21 PARTICIPANT]{.underline}. Chapter 30 enrollment is implied
from pay reduction data; term of enlistment is unknown. Chapter 30
participation is presumed in these cases. If claimant appears to be
eligible, contact DOD to verify term of enlistment if it is not already
displayed under ENL TERM (Enlistment Term).

\(13\) [22 PARTICIPANT]{.underline}. Chapter 30 enrollment is implied
from pay reduction data; term of enlistment is 2 years. The applicant is
eligible if all other requirements are met.

\(14\) [23 PARTICIPANT]{.underline}. Chapter 30 enrollment is implied
from pay reduction data; term of enlistment is 3 years or more. The
applicant is eligible if all other requirements are met.

\(15\) [25 PARTICIPANT]{.underline}. Enrolled member reenlisted or
separated. Initial period of obligated active duty is less than 3 years.
The applicant is eligible if all requirements are met.

\(16\) [26 PARTICIPANT]{.underline}. Enrolled, member reenlisted or
separated. Initial period of obligated active duty is 3 years or more.
The applicant is eligible if all other requirements are met.

\(17\) [27 OPEN WINDOW]{.underline}. Claimant initially declined
chapter 30 but changed his or her election during the open period from
December 1, 1988, through June 30, 1989. Claimant\'s initial obligated
period of active duty is less than 3 years. Allow these claims if all
other requirements are met. See paragraph 3.07 for additional details.

\(18\) [28 OPEN WINDOW]{.underline}. Claimant initially declined
chapter 30 but changed his or her election during the open period from
December 1, 1988, through June 30, 1989. Claimant\'s initial obligated
period of active duty is 3 or more years. Allow these claims if all
other requirements are met. See paragraph 3.07 for additional details.

*NOTE: The codes 30 and higher indicate category II cases only.*

\(19\) [30 UNKNOWN]{.underline}. There is missing or conflicting data in
a category II case. DOD cannot determine whether a person has chapter 34
service. Do not contact service department contact points on these
cases. Service must be verified from other sources.

\(20\) [32 INELIGIBLE]{.underline}. DOD records show no chapter 34
service or entered active duty after December 31, 1976, and not in the
delayed entry program.

\(21\) [33 INELIGIBLE]{.underline}. DOD records show not on duty on July
1, 1985.

\(22\) [34 INELIGIBLE]{.underline}. DOD records show greater than 90 day
break between October 19, 1984, and July 1, 1985.

\(22\) [35 INELIGIBLE]{.underline}. DOD records show after December 31,
1976, member received a commission as an officer upon graduation from a
service academy or completion of an ROTC scholarship educational
assistance program.

*NOTE: Adjudication should override the above ineligible codes (30-35)
when data from other sources establish eligibility. See paragraph
2.07c.*

\(23\) [45 PARTICIPANT]{.underline}. DOD records show qualifying
chapter 34 service, and member was on duty on July 1, 1985. Service
after July 1, 1985, must be reviewed to determine chapter 30
eligibility.

**b. ENL TERM (Enlistment Term) \[(Category I only)\].** The possible
values that may be displayed are 2, 3, 4, 5, or 6. If 2 is displayed,
the claimant\'s obligated period of service is less than 3 years. If 3
or higher is displayed, the claimant\'s obligated period of service is 3
years or more. Target will alert the Adjudicator if there is a
discrepancy between the ENL TERM and the KICKER CODE. (See par. 3.08 for
a discussion of kickers and kicker codes.) Adjudicators may change the
ENL TERM but not the KICKER CODE.

\(1\) If the evidence clearly indicates that the ENL TERM displayed on
the 30D screen is in error, change the ENL TERM to agree with the
enlistment term represented by the kicker code. Do not contact DOD.

(2)\[ If the veteran was obligated for 2 years of active duty, but
actually served 36 months or longer on active duty, change the ENL TERM
to the number of years the veteran actually served on active duty.

(3)\] If there is any doubt as to the enlistment term or if the kicker
code appears to be in error, contact DOD.

c.  **EOD and RAD**

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1.  [Issues Affecting All Chapter 30 Claims]{.underline}

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a.  If there is a 1-day discrepancy between the RAD date shown on the
    310 screen (as redisplayed from the 30D screen) and the date shown
    from other sources (e.g., BIRLS, the veteran's application, DD Form
    214), accept the RAD from the other source. If there is a
    discrepancy of more than 1 day, use the RAD shown on the DD Form
    214, or if no DD Form 214 is available, contact DOD for assistance.

\(b\) There are three types of service that are not considered active
duty under chapter 30: assignment full time to train at a civilian
institution, service at a military academy (if the claimant graduated),
and service under

10 U.S.C. section 511(d). These types of duty periods should
[not]{.underline} be included in the claimant's period of active
service. Do not enter them in the Deductible Time field either. These
types of duty break the continuity of service required under chapter 30.

c.  If the length of the claimant's service is extremely close to
    qualifying, and the system calculates a denial, count the actual
    days in each month of service and include any allowable travel time
    (if travel time would make a difference).

[1]{.underline}. Under the alternate manual calculation, a claimant
needing 20 months of service \[ \] would be eligible if he or she served
605 days; a claimant needing 24 months of service would be eligible if
he or she served 730 days; a claimant needing 30 months of service would
be eligible if he or she served 910 days; a claimant needing 36 months
of service would be eligible if he or she served 1,095 days.

[2]{.underline}. If eligibility is established, adjust the EOD on the
310 screen to establish eligibility in \[BDN\].

EXAMPLE: Assume a veteran needs a full 20 months of service to establish
eligibility, with a discharge for COG (convenience of the government).
The ordinary math produces the result of 1 Year 7 Months and 29 Days of
service. Since the veteran is not eligible based on this calculation
(i.e., the number of days is dropped leaving 19 months of service),
recalculate the length of service using the actual number of days
including travel time. If the veteran had 605 days under this alternate
calculation, he or she will be deemed to have 20 months of service.

[3]{.underline}. If a claimant actually had one continuous period of
service and the first discharge reported was a conditional discharge
(i.e., discharged in order to reenlist), the entire period is considered
in determining chapter 30 eligibility. In such cases, enter the EOD,
RAD, and other data for the entire period of service so that \[BDN\]
will correctly compute eligibility,

*NOTE: In some cases, the 30D screen shows that the veteran's discharge
was for separation reason REUP (reenlistment). In this situation, delete
the displayed RAD on the 310 screen and check the IN SERVICE indicator
"Y."*

\(d\) If a veteran initially served less than 12 months and was released
from that period of active duty for a service-connected disability, a
non-service connected disability that preexisted service, hardship, COG
due to RIF (reduction in force), or CIWD (condition interfered with
duty), determine entitlement as follows. To determine the number of
months of entitlement, combine the two period of active duty. Use the
separation reason from the second period to determine whether the
veteran's entitlement will be 36 months or based upon 1 month for each
month of active duty. (See par. 1.20).

EXAMPLE: A veteran initially enlisted in the Army, enrolled in chapter
30, served 6 months and 8 days, and was discharged for hardship. He
reenlisted in the Army, served 12 months and 25 days, and was discharge
for hardship. The veteran is entitled to 19 months of chapter 30
benefits.

2.  [Issues Affecting Category I Only]{.underline}

\(a\) Any active duty, even a brief period, occurring before July 1,
1985, makes the claimant ineligible for chapter 30. \[(See par.1.17a for
exceptions.)\] See \[also\] 38 CFR 21.7020(b)(1) for the definition of
"active duty." If the record shows such a period and it is not displayed
on the 310 screen, enter it on the screen so that \[BDN\] will properly
deny the claim.

b.  If a claimant has two periods of service (two 30D screens may exist
    in such a case), examine the periods of service carefully. See
    a(1)(d) above.

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1.  If a claimant has a complete separation from service, only the first
    period of service is considered in determining chapter 30
    eligibility. In such case enter EOD, RAD, and the other data from
    only the first period of service so that \[BDN\] will correctly
    compute eligibility. Enter "Del.Dt=" followed by the correct
    delimiting date in the MSG (message) field on the 312 (Education
    Award) screen. (See par 2.11.)

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2.  If it appears the claimant had a short initial period of service
    followed by a longer period, check to see if the period was ACDUTRA
    (active duty for training) which is not considered as active duty in
    chapter 30. If the short period is not ACDUTRA, check the
    possibility that the short period is for a defective enlistment \[or
    for a reserve call-up of less than 2 years under 10 U.S.C. 12301,
    12302, 12304, 12306, or 12307\] which is not countable as the
    initial period of active duty under chapter 30. (See par 1.17a.) If
    the discharge form is not clear, consider all the evidence as a
    whole (i.e., BIRLS, the 30D screen, and the application). If the
    evidence supports that the period was ACDUTRA, accept it as such.
    Request a determination from the appropriate Service Department only
    when the evidence is insufficient to conclude that the service was
    ACDUTRA. If there are two periods of service and the first is for a
    defective enlistment or for ACDUTRA, delete this first period from
    the \[BDN\] 310 screen and continue normal processing.

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d.  **CHARACTER.** The possible displays are: DIS (dishonorable); HON
    (honorable); OTH (other); UHC (under honorable conditions); UNC
    (uncharacterized); and UNK (unknown). Since an honorable discharge
    is required in all cases, only HON is an acceptable entry on the 310
    screen \[ \]. (See par. 1.17c for character of discharge
    requirements and pars. 3.03c, 3.12a, 3.12c, and 3.16c regarding the
    need for DD Form 214.)

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1.  If an individual might be eligible if his or her service were
    characterized (i.e., an individual in the category described in par.
    1.17(d)(1) above when character of service is not shown on DD Form
    214, and the CHARACTER code is UNC, UNK, or blank), send a VA Form
    21-3101, Request for Information, to the Service Department (see
    M21-1, pt. III, ch. 4). Ask for characterization of service as
    required by 38 U.S.C. 3011(a)(3)(C) or (D) or 3012(a)(3)(A).

\(2\) If character of service is coded UNC and the separation reason is
for hardship, service-connected disability, or a medical condition
preexisting service, consider the character to be honorable without
development (par. 1.17d(3)). Change the code to HON on the 310 screen.

\(3\) For some persons with a less than honorable discharge, eligibility
can be established based on an earlier conditional discharge (par.
1.17(d)(4)).

\(a\) The fact of conditional discharge may be verified on DD Form 256,
Honorable Discharge Certificate, or on DD Form 214. In addition, DOD
advises that they annotate the remarks block of DD Form 214 with
"CONTINUOUS HONORABLE ACTIVE SERVICE" and the period of such service for
those individuals who previously reenlisted and are being discharged
with a characterization of other than honorable. In such cases this
annotation alone is acceptable evidence of honorable discharge.

\(b\) If the character of discharge is not honorable and there is any
indication of a conditional discharge such as reenlistment, development
is required before a claim may be denied. Ask the veteran if he or she
has proof of an honorable discharge at an earlier point in \[ \]
service, and send a VA Form 21-3101 to the Service Department. Ask the
Service Department if the veteran received an honorable discharge at any
point during service, and if so, when. (Avoid referring to "conditional
discharge" as this is VA terminology.)

e.  **REASON.** The following are the separation reasons used by DOD on
    the 30D screen with comments on their use in making eligibility
    determinations:

\(1\) [COG]{.underline}. A COG code means DOD has determined that the
claimant's discharge is for the convenience of the government. Under DOD
regulations, a wide variety of specific discharge reasons are

properly coded COG. Adjudication should not ordinarily question this
decision. If COG is not displayed from DOD, Adjudication may enter COG
[only if]{.underline} the DD Form 214 states that the discharge was for
convenience of the government or if DOD otherwise informs VA that COG is
the proper code.

*NOTE 1: Persons discharged for qualifying reductions in force are also
considered to have been discharged for convenience of the government.
See subparagraph (10) below.*

*NOTE 2: Army veterans discharged for failure to meet weight control
standards under the authority of Chapter 5, AR 635-200 should be
considered to have been discharged for convenience of the government
even if the Separation Reason shown on the 30D screen is OTH.
Adjudication should change the code to COG on the 310 screen if the
DD Form 214 shows the veteran was discharged under these conditions.*

\(2\) [DECD (Deceased)]{.underline}. If death was in service, see
chapter 1, paragraph 1.31, regarding the death benefit. Payment of
accrued benefits is for consideration in all cases.

\(3\) [DFR (Dropped From Rolls)]{.underline}. There is no eligibility
unless the claimant completed 24 months of an obligation of less than 3
years or 36 months of an obligation of 3 years or more.

\(4\) [DIS (Disability)]{.underline}. If DIS is displayed on the 310
screen, assume the claimant was discharged for service-connected
disability. (See par. 3.04.) Retain the DIS code in the 310 processing.
If blank, enter DIS on the 310 screen if the veteran\'s discharge is
determined to be due to service-connected disability by a VA rating
board.

\(5\) [EPTS (Existed Prior to Service)]{.underline}. If EPTS is
displayed on the 30D screen, assume the claimant\'s discharge was for a
medical condition which preexisted service. If blank, enter EPTS if
justified per paragraph 3.04.

\(6\) [ETS (Expiration of Term of Service)]{.underline}. This separation
reason is considered to be a type of COG discharge described above.
Target treats ETS in the same manner as COG.

\(7\) [HDSP (Hardship)]{.underline}. This reason may be displayed by
DOD. If not, it may be entered by the adjudicator if the DD Form 214
clearly shows discharge was for hardship. Cases coded HDSP are also
considered a type of COG discharge. Target will automatically compute
the entitlement based on COG if the veteran has sufficient service to be
eligible under COG.

\(8\) [OTH (Other)]{.underline}. If this code is displayed and would
result in denial of the claim, review the evidence to see if another
code might apply. For example, if the DD Form 214 shows the veteran\'s
discharge was for hardship, enter HDSP in place of OTH. If there is
doubt as to the correctness of the OTH code, contact DOD before denying
the claim. Do [not]{.underline} reverse an OTH code without contacting
DOD.

\(9\) [REUP (Immediate Reenlistment)]{.underline}. Claimant is still on
active duty. Consider possible eligibility as a serviceperson.

\(10\) [RIF (Reduction in Force)]{.underline}. When DOD uses RIF on the
30D screen, VA will assume it means that the individual received a
qualifying RIF for chapter 30 purposes and no further development is
necessary. If DOD has not used the RIF code, Adjudication may determine
that the discharge was for a qualifying RIF under certain conditions.
(See par. 1.17c(5) regarding qualifying RIFs.) Only RIFS occurring on or
after October 1, 1987, may be qualifying for chapter 30 purposes.

CAUTION: Cases coded RIF are also considered to be for Convenience of
the Government. Target will automatically compute the entitlement based
on COG if the veteran has sufficient service to be eligible under COG.

\(11\) [UNK (Unknown) or Blank]{.underline}. If UNK is shown on the DOD
screen or the field is blank and the separation reason shown on the
DD Form 214 does not resolve the issue, contact DOD for clarification.
Do this [only]{.underline} if the separation reason is material to the
claim (e.g., claimant served less than 24 months and the obligated
period was less than 3 years or claimant served less than 36 months and
the obligated period of service was 3 years or more).

\[(12) [CIWD (Condition Interfering With Duty)]{.underline}. Award
processing for this code is the same as for the EPTS code and all data
entry procedures are the same.\]

**f. DEDUCTIBLE TIME.** This field occurs on the 310 screen only. Always
review the DD Form 214 or BIRLS to confirm deductible time. Note that
excess leave is counted as deductible time under chapter 30 as is
not-on-duty time. Service in an academy \"prep school\" is creditable
under chapter 30.

*NOTE: See paragraph 3.06c(1) for the 3 types of service that are not
considered active duty under chapter 30. Do not enter duty periods from
these types of service in the DEDUCTIBLE TIME field.*

**g. S/C DISCH.** Enter \"Y\" in this field if the separation reason is
DIS.

**h. EDUCATION LEVEL**

\(1\) The possible displays are: 00 UNKNOWN, 11 NON HS GRAD, 12 HS GRAD,
14 ASSOC/EQUIV, 16 BACH DEGREE, 17 GRAD DEGREE. An education level of 12
or higher indicates the service department coded the claimant as having
met the education level requirement. Always review the DD Form 214 and
the veteran\'s application and resolve any conflict in the evidence as
to education level. If the Target record displays an educational level
below 12 but the DD Form 214 shows the claimant completed high school,
[accept]{.underline} what is on the DD Form 214. Override the entry in
this field on the Target 310 screen so that Target will not process a
denial.

\(2\) Refer to \[paragraphs 1.06f, 1.07f, 1.10g, and 1.13f for high
school requirements. Chapter 30 eligibility does not begin until
veterans meet this requirement. It is not necessary for veterans to have
received the secondary school diploma or equivalency certificate. They
must meet the requirements for a secondary school diploma or equivalency
certificate. Veterans may submit statements from their secondary schools
(or other organizations having authority to recommend or issue diplomas
or certificates) certifying that they reviewed the veterans\' records
and determined that they meet the requirements for issuance of diplomas
or certificates. If the evidence is unclear as to whether the veteran
meets these requirements, ask the veteran for clarification. See
chapter 7 for a sample development letter.

\(3\) Category I persons on active duty on August 2, 1990, must have
completed the requirement by October 23, 1994. If the 30D screen and
supporting evidence show that the veteran does not meet the education
requirement, disallow the claim. See paragraph 2.11.\]

*NOTE: The latest revision to VA Form 22-1990 does not ask the exact
date the veteran graduated from high school. Do [not]{.underline}
develop for the exact date of graduation unless there is some indication
that the veteran completed high school or obtained an equivalency
certificate after completion of qualifying service.*

**i. ESR (Date Entered Selected Reserve).** DOD may provide this date on
the 30D screen before or after the VA eligibility determination. If
after, a NOES message will be produced to alert VA as stated in
chapter 5. Adjudication may enter this date on the Target 310 screen at
any time if warranted by the facts. If this date is present on the 310
screen, Target will compute eligibility in the 2 X 4 program. See par.
3.09 below regarding the 2 X 4 program.

**j. RSR (Date Released Selected Reserve).** DOD may provide this date
on the Target 30D screen before or after the VA eligibility
determination. If after, Target will issue a NOES message as stated in
chapter 5. Also, Adjudication may enter this date on the Target 310
screen at any time if the facts warrant. If this date is on the Target
310 screen, Target will use it in computing 2 X 4 program eligibility.
See paragraph 3.09 below regarding the 2 X 4 program.

*NOTE: If it is known at the time that eligibility is being determined
that the veteran was released from the Selected Reserve before the end
of 4 years and for a separation reason other than one of the 5
acceptable separation reasons, do [not]{.underline} award benefits based
on Selected Reserve service (i.e., do not make an entry in this field).*

**k. REASON.** This is the reason the Selected Reserve released the
claimant and determines continued eligibility in the 2 X 4 program. DOD
may provide this code or Adjudication may enter this code if warranted.
It is necessary to recompute chapter 30 eligibility and entitlement
whenever the Selected Reserve releases a claimant. The following is a
list of separation reasons with comments on their use and their effect
on continued eligibility in the 2 X 4 program.

\(1\) [COG (Convenience of the Government)]{.underline}. Claimants
released for this reason continue to be eligible for benefits in the
2 X 4 program if they complete at least 30 months of Selected Reserve
service.

\(2\) [DECD (Deceased)]{.underline}. Consider possible claim for accrued
benefits.

\(3\) [DFR (Dropped From Rolls)]{.underline}. No continued eligibility
in the 2 X 4 program unless claimant completed full 48 months in
Selected Reserve.

\(4\) [DIS (Disability)]{.underline}. DIS applies if discharge from
Selected Reserve is due to service-connected disability. Note that
claimants discharged for service-connected disability may elect to
receive benefits based on their active service only. (See par. 3.09i
below.)

\(5\) [EPTS (Existed Prior to Service)]{.underline}. EPTS applies if
discharge from Selected Reserve is for a medical condition which existed
before service.

\(6\) [ETS (Expiration of Term of Service)]{.underline}. Treat ETS in
the same manner as COG.

\(7\) [HDSP (Hardship)]{.underline}. Claimants with this separation
reason continue to be eligible in the 2 X 4 program. Note that claimants
discharged for hardship may elect to receive benefits based on their
active service only. (See par. 3.09i below.) Cases coded HDSP are also
considered to be for Convenience of the Government. Target will
automatically compute the entitlement based on COG if the veteran has
sufficient service to be eligible under COG.

\(8\) [OTH (Other)]{.underline}. Claimants with this separation reason
code continue to be eligible in the 2 X 4 program only if they served a
full 48 months in the Selected Reserve. If they served less than 48
months, Target will compute eligibility based on active service only.

\(9\) [REUP (Immediate Reenlistment)]{.underline}. Claimant is still on
active duty. Target will consider eligibility as a serviceperson.

\(10\) [RIF (Reduction in Force)]{.underline}. Claimants with this
separation reason continue to be eligible in the 2 X 4 program. When DOD
uses this code, it will mean that the individual\'s RIF is qualifying
under the law. No further development is necessary. (See par.
3.06e(10)). All cases coded RIF will be considered to be discharged for
Convenience of the Government as well.

\(11\) [UNK (Unknown)]{.underline}. If the claimant served less than 4
years in the Selected Reserve, determine the reason for separation
before reducing or terminating benefits.

\(12\) [UNSAT (Unsatisfactory Participation)]{.underline}. Claimants
with this separation reason code continue to be eligible in the 2 X 4
program only if they served a full 48 months in the Selected Reserve. If
they served less than 48 months, Target will consider continued
eligibility based on active service only.

\[(13) [CIWD (Condition Interfering With Duty)]{.underline} Award
processing for this code is the same as for the EPTS code and all data
entry procedures are the same. Do not request verification of CIWD
separations from DOD contact points.\]

**l. Service Academy or ROTC Scholarship Graduates.** \[This issue does
not have a separate field on the 310 screen. However, DOD can code a
claimant as ineligible for this reason and the DOD STATUS code will show
02 INELIGIBLE (for category I cases) or 35 INELIGIBLE (for category II
cases). See subparagraph 3.06a above. Also, DOD may report the source of
a commission on the 30D screen. See part II, paragraph 4.10g. In
addition to reviewing this coding, Adjudication must routinely review
the claimant\'s application and the DD Form 214 to check for possible
ineligibility because of this issue.

*NOTE: Not everyone who received a commission from a service academy or
as a result of ROTC scholarship is barred. See paragraph 1.07f for
details.\]*

**3.07 \"OPEN PERIOD\" CASES**

As a result of the open period provisions of the law (see ch. 1), some
category I cases previously showing status codes of INELIGIBLE will now
show status codes of OPEN WINDOW.

**a. Complete Period of Obligation.** Whenever the 30D screen displays
OPEN WINDOW, determine if the veteran completed his or her obligation to
serve as of December 1, 1988. If, on December 1, 1988, the veteran was
in both the original period of obligation and a new period of obligation
by reenlistment, treat the veteran as in the latter period of
obligation.

\(1\) If the veteran completed the period of obligation, accept the
Target 310 screen\'s computation of eligibility and entitlement. The
term \"completed the period of obligation\" means completed the entire
period of obligation. Thus, a person obligated to serve 36 months
completed the period of obligation if he or she served a full 36 months
and did not receive an early discharge for any reason. The law requires
that the service department reduce the veteran\'s pay in Open Period
cases. However, if the pay reduction did not occur, there will be no
effect on eligibility or entitlement in cases where the veteran
completed the period of obligation.

\(2\) If the veteran did [not]{.underline} complete the period of his or
her obligation on December 1, 1988, proceed as follows. Determine if the
veteran received an early discharge for one of the six acceptable
reasons (see par. 1.03d(3)). If the veteran did not receive a discharge
for one of these reasons, deny the claim. Dictate a letter explaining
the reason. If the veteran\'s discharge was for an acceptable reason,
access the Target 30D screen. Determine the actual pay reduction in the
case (e.g., \$700, \$1200).

*NOTE: DOD updates the DMDC (Defense Manpower Data Center) record
quarterly with information on pay reductions. The pay reduction
initially may show less than \$1200 for a recently discharged claimant.
Obtain current information from DOD before processing the claim.*

\(a\) If no pay reduction occurred, deny the claim and dictate a
disallowance letter. Explain that the law requires pay reductions to
establish chapter 30 eligibility when the claimant changed an election
during the open period and did not complete the period of obligation to
serve on December 1, 1988.

\(b\) If a full \$1200 pay reduction is shown, permit normal Target
processing to continue.

\(c\) If a pay reduction of less than \$1200 is shown, perform the
adjustment described in subparagraph b below.

**b. Early Release for an Acceptable Reason.** Sometimes the veteran
does not complete the period of obligation to serve on December 1, 1988,
because he or she was released early for one of the \[six\] acceptable
reasons. If the pay reduction was less than \$1200, adjust original
entitlement as follows. The entitlement will be the lesser of: (1) the
number of months of service with fractions dropped; [or]{.underline} (2)
the same proportion of 36 months as the actual pay reduction is of
\$1200.

EXAMPLE: The veteran received an early discharge for hardship. The
30D screen shows only \$200 of actual pay reductions. The maximum
entitlement would be 36 months X (\$200/\$1200) = 6 months. Enter 42
months in the PRIOR VA TRAINING field on the 310 screen so the original
entitlement is 6 months.

**3.08 BASIC KICKER**

\[This paragraph applies primarily to category I claimants. Only
subparagraph e applies to category III claimants. (This field appears on
the 30D screen only and may be changed only by DOD.) The kicker applies
only to those claimants DOD designates. The basic kicker is a monthly
amount added to the basic rate (either the 2-year statutory rate or the
3‑year statutory rate) to determine the monthly full-time rate during
the basic months of entitlement (normally 36 months). A kicker is
[not]{.underline} paid during any allowed extension of entitlement. See
chapter 1, appendix A, for rates. Next to the basic kicker amount shown
on the 30D screen is a one-character basic kicker code received from
DOD. See figure 3.03 which shows all MGIB kicker codes and their
effective dates.\]

**a. \[Background.** Kicker codes A through Q are the original kicker
codes in use from the start of the MGIB program. Since the start of the
MGIB program, new kicker codes have been added by DOD to implement
changes in kicker amounts. Figure 3.03 shows all MGIB kicker codes,
their effective dates, and values. The following subparagraphs discuss
these changes.

+---------+---------+---------+---------+---------+---------+---------+
| **\[K   | **Term  | **Total |         |         |         |         |
| icker** | of**    | K       |         |         |         |         |
|         |         | icker** |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| *       | **Se    | **7     | **1     | **4     | **10    | **10    |
| *Code** | rvice** | /1/85** | /1/91** | /1/93** | /1/94** | /1/95** |
+---------+---------+---------+---------+---------+---------+---------+
| A       | 24      | \$8     | \$8     | \$8     | \$8     | \$8     |
|         | months  | ,000.00 | ,000.00 | ,000.00 | ,000.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| B       | 36      | \$12    | \$12    | \$12    | \$12    | \$12    |
|         | months  | ,000.00 | ,000.00 | ,000.00 | ,000.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| C       | 48      | \$14    | \$14    | \$14    | \$14    | \$14    |
|         | months  | ,400.00 | ,400.00 | ,400.00 | ,400.00 | ,400.00 |
+---------+---------+---------+---------+---------+---------+---------+
| J       | 48      | \$14    | \$14    | \$14    | \$14    | \$14    |
|         | months  | ,400.00 | ,400.00 | ,400.00 | ,400.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| K       | 24      | \$12    | \$12    | \$12    | \$12    | \$12    |
|         | months  | ,000.00 | ,000.00 | ,000.00 | ,000.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| L       | 24      | \$8     | \$8     | \$8     | \$8     | \$8     |
|         | months  | ,000.00 | ,000.00 | ,000.00 | ,000.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| M       | 24      | \$12    | \$12    | \$12    | \$12    | \$12    |
|         | months  | ,000.00 | ,000.00 | ,000.00 | ,000.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| N       | 36      | \$12    | \$12    | \$12    | \$12    | \$12    |
|         | months  | ,000.00 | ,000.00 | ,000.00 | ,000.00 | ,000.00 |
+---------+---------+---------+---------+---------+---------+---------+
| P       | 48      | \$14    | \$14    | \$14    | \$14    | \$14    |
|         | months  | ,400.00 | ,400.00 | ,400.00 | ,400.00 | ,400.00 |
+---------+---------+---------+---------+---------+---------+---------+
| Q       | None    | \$0.00  | \$0.00  | \$0.00  | \$0.00  | \$0.00  |
+---------+---------+---------+---------+---------+---------+---------+
| R\*     | 24      | \$0.00  | \$8,000 | \$8     | \$7     | \$7     |
|         | months  |         | .00\*\* | ,000.00 | ,857.08 | ,513.64 |
+---------+---------+---------+---------+---------+---------+---------+
| S\*     | 24      | \$0.00  | \$9     | \$8     | \$8     | \$7     |
|         | months  |         | ,000.00 | ,300.00 | ,157.08 | ,813.64 |
+---------+---------+---------+---------+---------+---------+---------+
| T       | 24      | \$0.00  | \$9     | \$8     | \$8     | \$7     |
|         | months  |         | ,000.00 | ,300.00 | ,157.08 | ,813.64 |
+---------+---------+---------+---------+---------+---------+---------+
| V       | 36      | \$0.00  | \$16    | \$10    | \$10    | \$10    |
|         | months  |         | ,200.00 | ,600.00 | ,424.32 | ,001.68 |
+---------+---------+---------+---------+---------+---------+---------+
| W       | 48      | \$0.00  | \$25    | \$15    | \$15,4  | \$15    |
|         | months  |         | ,200.00 | ,600.00 | 24.32\] | ,001.68 |
+---------+---------+---------+---------+---------+---------+---------+
| \*Codes |         |         |         |         |         |         |
| R and S |         |         |         |         |         |         |
| require |         |         |         |         |         |         |
| S       |         |         |         |         |         |         |
| elected |         |         |         |         |         |         |
| Reserve |         |         |         |         |         |         |
| service |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| payment |         |         |         |         |         |         |
| to be   |         |         |         |         |         |         |
| made.   |         |         |         |         |         |         |
| See     |         |         |         |         |         |         |
| subpa   |         |         |         |         |         |         |
| ragraph |         |         |         |         |         |         |
| \[d\]   |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| s       |         |         |         |         |         |         |
| pecific |         |         |         |         |         |         |
| instr   |         |         |         |         |         |         |
| uctions |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| these   |         |         |         |         |         |         |
| cases.  |         |         |         |         |         |         |
|         |         |         |         |         |         |         |
| \       |         |         |         |         |         |         |
| *\*Code |         |         |         |         |         |         |
| R is    |         |         |         |         |         |         |
| ef      |         |         |         |         |         |         |
| fective |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| enli    |         |         |         |         |         |         |
| stments |         |         |         |         |         |         |
| on or   |         |         |         |         |         |         |
| after   |         |         |         |         |         |         |
| 7-1-89. |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+

**Figure 3.03. Kicker Codes and Total Kicker Amounts**

\(1\) Effective July 1, 1989, the Department of the Army implemented a
test kicker program that combined active duty service with service in
the Selected Reserve. Kicker code R is used to identify this kicker.
Commonly called the 2+2+4 program (2 years active duty, 2 years Selected
Reserve duty, and 4 years inactive reserve duty), it is now a permanent
program. This program is discussed more fully in subparagraph d.

\(2\) Effective January 1, 1991, the Army implemented new MGIB kickers
for persons enlisting on or after January 1, 1991.

\(a\) Three of the new kickers were greater monetary amounts, provided
for under Public Law 101-189. The other was similar to the 2+2+4
program, but was a slightly higher amount.

\(b\) The new kicker codes were S, T, V, and W.

\(c\) The MGIB BDN system was changed on April 27, 1992, to use the new
kicker codes.

\(3\) Effective April 1, 1993, the Army decreased the values of the
kickers that had been implemented on January 1, 1991.

\(a\) Kickers R, S, T, V, and W are the only ones currently offered to
new enlistees in the Army. All previous kicker amounts (codes A through
Q) are no longer offered, although anyone who contracted for those
kickers when they enlisted is entitled to the kicker value in effect at
the time of enlistment.

\(b\) The MGIB BDN system was *not* changed to use the new kicker
amounts until April 17, 1995. The kicker amounts effective
January 1, 1991, were still being used in the MGIB BDN system. A few
claimants who had received early separations were erroneously paid the
higher amounts. See subparagraph f for administrative error procedures.

\(4\) Effective October 1, 1994, the Army implemented a policy to offer
reduced MGIB kicker amounts for those eligible persons who *enlist*
after each cost of living increase in the basic MGIB rate. The amount of
the reduction is equal to the increase in the 36 month value of the
basic monthly benefit rate.

\(a\) The kicker for individual claimants *does not* decrease each year.
The amount of an individual\'s kicker is determined at the time of
enlistment, and will not change for that individual. However, a person
who enlists in July 1995 will have a lower kicker than a person who
enlisted in July 1994.

\(b\) The kicker amount is determined by the claimant\'s DOE (Date of
Enlistment), not by EOD (Entry on Active Duty) date. Once the
claimant\'s correct kicker is determined, it does not change due to
annual rate adjustments..

\(c\) The MGIB BDN system was changed on April 17, 1995, to use the new
rates. In the future, the kicker amounts will be adjusted in the BDN
system as part of the annual cost of living adjustment installation. The
adjusted rates will affect only persons who enlist on or after the
effective date of the adjustment. See paragraph 2.06 for information on
the use of the veteran\'s DOE date during BDN eligibility processing.\]

+---------+---------+---------+---------+---------+---------+---------+
| **K     | **Term  | *       |         |         |         |         |
| icker** | of**    | *Normal |         |         |         |         |
|         |         | Monthly |         |         |         |         |
|         |         | K       |         |         |         |         |
|         |         | icker** |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+
| *       | **Se    | **7     | **1     | **4     | **10    | **10    |
| *Code** | rvice** | /1/85** | /1/91** | /1/93** | /1/94** | /1/95** |
+---------+---------+---------+---------+---------+---------+---------+
| A       | 24      | \       | \       | \       | \       | \       |
|         | months  | $222.22 | $222.22 | $222.22 | $222.22 | $222.22 |
+---------+---------+---------+---------+---------+---------+---------+
| B       | 36      | \       | \       | \       | \       | \       |
|         | months  | $333.33 | $333.33 | $333.33 | $333.33 | $333.33 |
+---------+---------+---------+---------+---------+---------+---------+
| C       | 48      | \       | \       | \       | \       | \       |
|         | months  | $400.00 | $400.00 | $400.00 | $400.00 | $400.00 |
+---------+---------+---------+---------+---------+---------+---------+
| J       | 48      | \       | \       | \       | \       | \       |
|         | months  | $400.00 | $400.00 | $400.00 | $400.00 | $400.00 |
+---------+---------+---------+---------+---------+---------+---------+
| K       | 24      | \       | \       | \       | \       | \       |
|         | months  | $333.33 | $333.33 | $333.33 | $333.33 | $333.33 |
+---------+---------+---------+---------+---------+---------+---------+
| L       | 24      | \       | \       | \       | \       | \       |
|         | months  | $222.22 | $222.22 | $222.22 | $222.22 | $222.22 |
+---------+---------+---------+---------+---------+---------+---------+
| M       | 24      | \       | \       | \       | \       | \       |
|         | months  | $333.33 | $333.33 | $333.33 | $333.33 | $333.33 |
+---------+---------+---------+---------+---------+---------+---------+
| N       | 36      | \       | \       | \       | \       | \       |
|         | months  | $333.33 | $333.33 | $333.33 | $333.33 | $333.33 |
+---------+---------+---------+---------+---------+---------+---------+
| P       | 48      | \       | \       | \       | \       | \       |
|         | months  | $400.00 | $400.00 | $400.00 | $400.00 | $400.00 |
+---------+---------+---------+---------+---------+---------+---------+
| Q       | None    | \$0.00  | \$0.00  | \$0.00  | \$0.00  | \$0.00  |
+---------+---------+---------+---------+---------+---------+---------+
| R\*     | 24      | \$0.00  | \$222   | \       | \       | \       |
|         | months  |         | .22\*\* | $222.22 | $218.25 | $208.71 |
+---------+---------+---------+---------+---------+---------+---------+
| S\*     | 24      | \$0.00  | \       | \       | \       | \       |
|         | months  |         | $250.00 | $230.55 | $226.58 | $217.04 |
+---------+---------+---------+---------+---------+---------+---------+
| T       | 24      | \$0.00  | \       | \       | \       | \       |
|         | months  |         | $250.00 | $230.55 | $226.58 | $217.04 |
+---------+---------+---------+---------+---------+---------+---------+
| V       | 36      | \$0.00  | \       | \       | \       | \       |
|         | months  |         | $450.00 | $294.44 | $289.56 | $277.82 |
+---------+---------+---------+---------+---------+---------+---------+
| W       | 48      | \$0.00  | \       | \       | \       | \       |
|         | months  |         | $700.00 | $433.33 | $428.45 | $416.01 |
+---------+---------+---------+---------+---------+---------+---------+
| \*Codes |         |         |         |         |         |         |
| R and S |         |         |         |         |         |         |
| require |         |         |         |         |         |         |
| S       |         |         |         |         |         |         |
| elected |         |         |         |         |         |         |
| Reserve |         |         |         |         |         |         |
| service |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| payment |         |         |         |         |         |         |
| to be   |         |         |         |         |         |         |
| made.   |         |         |         |         |         |         |
| See     |         |         |         |         |         |         |
| subpa   |         |         |         |         |         |         |
| ragraph |         |         |         |         |         |         |
| \[d\]   |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| s       |         |         |         |         |         |         |
| pecific |         |         |         |         |         |         |
| instr   |         |         |         |         |         |         |
| uctions |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| these   |         |         |         |         |         |         |
| cases.  |         |         |         |         |         |         |
|         |         |         |         |         |         |         |
| \       |         |         |         |         |         |         |
| *\*Code |         |         |         |         |         |         |
| R is    |         |         |         |         |         |         |
| ef      |         |         |         |         |         |         |
| fective |         |         |         |         |         |         |
| for     |         |         |         |         |         |         |
| enli    |         |         |         |         |         |         |
| stments |         |         |         |         |         |         |
| on or   |         |         |         |         |         |         |
| after   |         |         |         |         |         |         |
| 7-1-89. |         |         |         |         |         |         |
+---------+---------+---------+---------+---------+---------+---------+

**Figure 3.03a. Kicker Codes and Normal Monthly Kicker Amounts**

**b. \[Kicker Table.** Each code indicates a specific term of service
and total kicker as shown \[in figure 3.03. Figure 3.03a shows the
normal monthly kicker for all [servicepersons]{.underline} and for those
[veterans]{.underline} who complete their full enlistment term. The DOE
date determines which column to use in figures 3.03 and 3.03a.

**c. Kicker Formula for Veterans Who Did Not Complete Their Full
Enlistment.** Veterans who do not complete their full enlistment term
will receive a monthly kicker different from the \[one shown in figure
3.03a. See figure 3.04 for the formula used to compute the monthly
kicker in these cases.

Find the monthly kicker, K, for these [veterans]{.underline} by the
following formula:

K = [(X times A)]{.underline}

Z

Where

K may not exceed \$700

X = The number of months of active service with any remaining days
rounded up to the next whole month (e.g., 17 months and 8 days is
rounded up to 18 months).

A = The \"contractual monthly kicker accrual rate\" determined by
dividing the total kicker by the number of months in the enlistment term
(e.g., \$8000/24 months = \$333.33).

Z = The number of months of MGIB entitlement as determined by VA.

**Figure 3.04. Kicker Formula for Veterans Who Did Not Complete Their
Full Enlistment**

The formula ensures that a veteran will receive total kicker payments in
proportion to the service actually completed. An example is a veteran
with a 24-month term of service, with an \$8,000 kicker. Using this
formula, a discharge for hardship after 11 1/2 months of service, would
produce a monthly kicker amount of \$363.63. This rate when multiplied
by 11 months of entitlement produces a total kicker payout of
approximately \$4,000. Since the veteran completed 1/2 of the service
requirement, (DOD rounds up to the next higher month in this
calculation), he or she is entitled to 1/2 (\$4,000) of the \$8,000
total prospective kicker.

The formula should be used:

\(1\) To help resolve inquiries about kicker amounts.

\(2\) To manually recompute the kicker in unusual cases where the BDN
cannot give correct results.

EXAMPLE: The BDN shows the adjudicator there is a discrepancy between
the kicker code of L (a kicker code for 2-year enlistments) and the
enlistment term of 3 years. DOD officials advise that the correct kicker
code is B, consistent with a 3-year enlistment. In this instance, the
BDN can pay even before DOD updates the 30D screen data. To prevent an
erroneous kicker underpayment, Adjudication should manually recompute
the kicker and override the generated BDN rate. Do not authorize BDN
generated rates in such a case until DOD corrects the kicker code.

*NOTE: There is a further complication in the kicker calculation if a
veteran completes less than the full period of obligation and also
received benefits while on active duty. In such cases, the BDN computes
the monthly kicker for the on-duty period according to the table in
Figure 3.03a. (The claimant is charged this rate for kicker calculation
purposes even though the claimant\'s tuition and fees in a particular
case do not result in this rate actually being paid.) This on-duty
kicker rate does not change when the claimant becomes a veteran. The
kicker rate as a veteran is computed according to the above formula, but
the total kicker is reduced by the amount of the kicker authorized while
in service. In the same way, the system reduces VA entitlement by the
entitlement used while in service.*

\[**d. Kicker Codes R and S.** Generally, kicker codes R and S require
that the claimant enter the Selected Reserve for a period of 2 years
following active duty service. However, if the claimant is separated
from active duty due to a disability, or re enlists on active duty and
serves a total of 3 consecutive years on active duty, the claimant will
be eligible for the R kicker without subsequent Selected Reserve
service.

\(1\) To pay the R and S kicker codes, the BDN system currently requires
that a date be entered in ESR screen on the 310 screen. The BDN system
does not currently contain edits to permit payment based on disability
separations or continued active duty. VA and DOD are currently working
with DMDC to determine if the required edits can be done by DMDC rather
than VA. The BDN system will be changed depending on that outcome.

\(2\) Eligibility to the R or S kicker exists if the kicker code is
present on the 30D screen, there is an ESR date on the 310 screen, and
the 2 X 4 INFORMATION ENL TERM field on the 310 screen contains an entry
other than 1 or 8. The claimant must be in either the Army Reserve or
Army National Guard.

\(a\) If the 2 X 4 INFORMATION ENL TERM is 4 or more, the message 2 X 4
RATE INDICATED will be displayed on the 310 screen after eligibility
data has been stored. (See pars. 1.03m and 1.21b regarding 2 X 4 rates.)
Use the procedures in paragraph 1.18c to verify the fact of a 4-year
Selected Reserve enlistment before paying the additional 2 X 4 rate. In
the interim before verification is received, enter \"2\" in the 2 X 4
INFORMATION ENL TERM field on the 310 screen. This will pay the kicker,
but not the additional 2 X 4 rate. If verification of the 4-year
enlistment is received, enter \"4\" in the 2 X 4 INFORMATION ENL TERM
field.

\(b\) Verification of Selected Reserve service also exists if the
MGIB-SR (Montgomery GI Bill - Selected Reserve) DOD screen shows that
the claimant is eligible for MGIB-SR benefits. (Eligibility to MGIB-SR
requires a 6-year Selected Reserve obligation. Therefore, eligibility to
MGIB-SR confirms a Selected Reserve commitment of more than 2 years
required for the kicker.)

\(c\) If neither of the above conditions is met, accept written evidence
of Selected Reserve service.\]

\(3\) [Left Selected Reserve]{.underline}. If evidence is received that
the claimant has left the Selected Reserve, determine if the date of
separation from the Selected Reserve is within 2 years of the date of
separation from active duty.

\(a\) [Less Than 2 Years]{.underline}. If the claimant leaves the
Selected Reserve within 2 years from the date of separation from active
duty, delete the ESR DATE and ENL TERM fields on the 310 screen. Process
an amended award to reduce the monthly rate to the basic rate effective
the date the claimant left the Selected Reserve.

\(b\) [More Than 2 Years]{.underline}. If the claimant leaves the
Selected Reserve 2 or more years after the date of separation from
active duty, enter the separation date in the RSR field on the 310
screen. This will permit continued payment of the kicker rate for future
award periods. It will discontinue the 2 X 4 rate if it was payable and
the RSR date is within 4 years of the ESR date.

\(4\) [Reentry in the Selected Reserve]{.underline}. If the claimant
reenters the Army Reserve or Army National Guard within 1 year of
leaving the Selected Reserve, the kicker rate will be reinstated.
Reenter the original ESR DATE on the 310 screen. If the claimant
reenters the Selected Reserve in another component, the kicker is not
payable. If the 2 X 4 rate would be payable in these cases, use the
\"M\" override on the 312 screen to pay the appropriate rate.

**\[**(5) [Disability Separation]{.underline}. Eligibility to the R
kicker is established if the code is present and the 30D screen contains
DIS in the SEP REASON field. Accept written verification of disability
separation only from the Department of the Army contact point. Until the
BDN system is changed, enter the date following separation from active
duty in the ESR field on the 310 screen to pay the kicker in these
cases. This procedure will result in an erroneous delimiting date
computation. Suppress the BDN letter and send a dictated award letter.

\(6\) [Continued Active Duty]{.underline}. Eligibility to the R kicker
is established if the code is present and the RAD date minus the EOD
date is 3 years or more. Payment procedures are the same as those for
disability separations described above. When the BDN system is changed,
an adjustment will be necessary to both types of cases to calculate the
proper delimiting date.

**e. Category III Individuals Entitled to VEAP Kickers**

\(1\) [Entitlement]{.underline}. To determine if a former VEAP
participant is entitled to a kicker under category III, use the
following procedure:

\(a\) Do a MINQ to see if a VEAP bank record (M26 through M29 screens)
exists.

\(b\) If a VEAP bank record exists, review it to determine if the
veteran has any remaining kicker.

[1]{.underline}. If the veteran does not have any remaining kicker, he
or she is not entitled to payment for an additional VEAP kicker.

[2]{.underline}. If the veteran has a remaining kicker, enter the total
kicker amount in the CH32 KICKER field. If the BDN does not properly
compute the monthly rate, use the procedures below to determine the
monthly amount. Add this amount to the basic rate and enter the total
monthly rate on the rate field. If this manual entry is necessary, enter
\"M\" in the O/R field.

\(c\) If a VEAP bank record does not exist, the veteran is not entitled
to an additional VEAP kicker.

\(2\) [Amount]{.underline}. If a former VEAP participant is entitled to
a kicker, and the BDN does not properly compute the monthly rate, use
the procedures in this paragraph to compute the amount.

\(a\) Divide the remaining VEAP kicker by the number of months of
\[chapter 30\] entitlement. Round off fractional cents to the nearest
cent. The result is the full-time monthly kicker.

EXAMPLE: The veteran has 36 months of \[chapter 30\] eligibility and a
VEAP kicker of \$8,000. Compute the monthly kicker as follows: \$8,000
kicker / 36 months of entitlement = \$222.222 = \$222.22.

\(b\) For less than full-time training, apprenticeship, other on-the-job
training, or \[cooperative training

(before October 9, 1996)\], use the following factors to determine the
monthly kicker.

[1]{.underline} For institutional training, compute the full-time
monthly kicker according to subparagraph a above. Multiply the full-time
monthly kicker by the appropriate factor to determine the monthly kicker
payable. Round off fractional cents to the nearest cent.

  ----------------------------------------------- -----------------------
  [Training Time]{.underline}                     [Factor]{.underline}

  Three Quarter                                   .75

  One Half                                        .50

  Less than 1/2 but more than 1/4.                .50

  1/4 or less                                     .25
  ----------------------------------------------- -----------------------

[2]{.underline} For apprenticeship or other on-the-job training, compute
the full-time monthly kicker according to subparagraph a above. Multiply
the full-time monthly kicker by the appropriate factor to determine the
monthly kicker payable. Round off fractional cents to the nearest cent.

  ------------------------------------------ ----------------------------
  [Period of Training]{.underline}           [Factor]{.underline}

  First 6 Months                             .75

  Second 6 Months                            .55

  Remainder of Training                      .35
  ------------------------------------------ ----------------------------

[3]{.underline} For cooperative training \[before October 9, 1996\],
compute the full-time monthly kicker according to subparagraph a above.
Multiply the full-time monthly kicker by .8 to determine the monthly
kicker payable. Round off fractional cents to the nearest cent.

EXAMPLE: The veteran has a \$10,000 unused VEAP kicker and 36 months of
\[chapter 30\] entitlement. Determine the monthly kicker as follows.

[Full-Time Monthly Kicker]{.underline}

\$10,000 kicker / 36 months = \$277.777 = \$277.78

[Institutional Training]{.underline}

3/4 Time: \$277.78 X .75 factor = \$208.335 = \$208.34

1/2 Time: \$277.78 X .50 factor = \$138.89

Less than 1/2 but more than 1/4: \$277.78 X .50 factor = \$138.89

1/4 or less: \$277.78 X .25 factor = \$ 69.445 = \$ 69.45

*NOTE: The less than 1/2 but more than 1/4, and 1/4 or less rates are
the maximum amounts payable for veterans whose training times are less
than 1/2 but more than 1/4, or 1/4 time or less. The claimant is charged
this rate for kicker calculation purposes even though the tuition and
fees do not result in this rate actually being paid.*

[Apprenticeship/On-the-Job Training]{.underline}

First 6 months: \$277.78 X .75 factor = \$208.335 = \$208.34

Second 6 months: \$277.78 X .55 factor = \$152.779 = \$152.78

Remainder of Training: \$277.78 X .35 factor = \$ 97.223 = \$ 97.22

[Cooperative Training \[Before October 9, 1996\]]{.underline}

\$277.78 X .8 factor = \$222.224 = \$222.22

**f. Administrative Error**

\(1\) Awards processed on the BDN system between April 1, 1993 and April
17, 1995, generated incorrect kicker rates. The incorrect rates
generated were the ones in effect on January 1, 1991.

\(2\) Apply the administrative error provisions of part III, paragraph
2.03, in any case where an incorrect kicker rate was paid on or after
April 1, 1993.

\(3\) Annotate the award document in administrative error cases with
\"Administrative Error per M22-4, Part V, Paragraph 3.08f.\"

**3.09 CLAIMS INVOLVING SELECTED RESERVE SERVICE**

This paragraph provides instructions for eligibility categories IC and
IIB. The term \"2 X 4\" cases describes cases in these categories. This
is because 2 years of active service combined with at least 4 years of
Selected Reserve service confer eligibility. \[Refer to paragraph 3.08d
for instructions on kickers that are dependent on Selected Reserve
service.\]

**a. Eligibility Requirements.** See paragraphs 1.18 and 1.21 for a
general discussion of 2 X 4 eligibility and the evidence required to
establish such eligibility.

**b. Need for Development.** Adjudication should advise any veteran who
may be in the 2 X 4 program of the evidence needed to establish
eligibility described in paragraph 1.18. (Exception: Do not advise a
veteran who is eligible for the 3‑year basic rate and 36 months of
entitlement based on active service alone.) Adjudication should send the
claimant a standardized \"2 X 4\" development letter as shown in
chapter 7 if:

\(1\) The DD Form 214 shows that the claimant transferred to a specific
Reserve or Guard Unit; or

\(2\) \[The BDN\] displays a separate \[MGIB-SR\] DOD screen, since this
is an indication the individual is in the Selected Reserve. (However,
[do not develop if the DOD Screen shows ELIGIBLE]{.underline}.); or

\(3\) The \[BDN\] 30D screen shows an ESR date.

*NOTE: Under current DOD procedures, any person who enters a Selected
Reserve unit will have a separate \[MGIB-SR\] DOD screen. In 2 X 4
cases, the DOD Status code on the \[MGIB-SR\] DOD screen usually will be
INELIGIBLE. The reason for ineligibility will be lack of a 6-year
contract. The ESR date may also appear on the \[BDN\] 30D screen and
display on the 310 screen during eligibility processing.*

**c. Procedures When 2 X 4 Obligated in Advance.** A claimant may have
an obligation to serve 4 years in the Selected Reserve
[before]{.underline} entrance on active duty for 2 years. Only the Navy
had such a program, the Navy Sea College. In all of these cases, a
proper 30D screen existed, showing ENL TERM 2 and a date in the ENT SEL
RES field.

**d. Election---\[MGIB\] and Chapter \[1606\] of title 10.** A claimant
may enlist for 6 years in the Selected Reserve instead of the required 4
years. This establishes potential eligibility to \[MGIB-SR\] benefits as
well as \[MGIB\] benefits under the 2 X 4 program. If the DOD Status
code on the \[MGIB-SR\] DOD screen shows ELIGIBLE, it means the claimant
must have at least a 6-year obligation in the Selected Reserve. He or
she is potentially eligible for both benefits.

\(1\) If the claimant is eligible for both \[MGIB and MGIB-SR\], and is
eligible to receive benefits at the category 1A rate, presume that he or
she wishes to credit the Selected Reserve service toward \[MGIB\].
Therefore, pay \[MGIB\] benefits at the 2 X 4 rate and advise the
claimant that the lesser benefit is available if he or she wishes to
elect it.

\(2\) If the claimant has received or is now receiving \[MGIB-SR\]
benefits, do not pay \[MGIB\] until the claimant makes an election. The
election is whether VA should use the first 4 years of Selected Reserve
service to establish eligibility under \[MGIB-SR\] or under \[MGIB\], if
the claimant is eligible for the category 1A rate. If the claimant is
eligible for the category 1B rate, the election is merely between
\[MGIB\] and \[MGIB-SR\]. See chapter 7 for a sample letter for the
category 1A situation.

\(3\) Once the claimant makes a written election to credit 4 years of
Selected Reserve service to one benefit or the other, make all necessary
award adjustments. Send copies of all documents on the election to the
regional office with jurisdiction over the claims folder. Explain the
effect of the election to the RO.

*NOTE: Once the claimant eligible for the category 1A rate makes an
election in writing for one benefit and negotiates a check for that
benefit, the election is irrevocable. Other claimants may elect \[MGIB\]
again after receiving \[MGIB-SR\], and vice versa.*

**e. Election---Persons in the Selected Reserve and on Active Duty at
the Same Time.** Persons in this category, identified in part III,
chapter 3, as AGR (Active Guard/Reservist) personnel, are on active duty
under title 10, U.S.C. Another regional office may send a referral
regarding a service person in this situation who is applying for
\[MGIB-SR\] benefits. The service person may not yet have completed the
service requirements for \[MGIB\]. This service person must elect the
benefit to which he or she wishes to credit his or her [active
service]{.underline}. Advise him or her of the advantages and
disadvantages of \[MGIB and MGIB-SR\]. If the service person wishes to
receive \[MGIB-SR\] benefits during the first 2 years of active duty or
if he or she already received \[MGIB-SR\] benefits before active duty,
\[MGIB-SR\] benefits may have the advantage over \[MGIB\]. Most
individuals are better off choosing \[MGIB\].

*NOTE: AGR persons who enter active duty on or after November 29, 1989,
are not eligible for \[MGIB-SR\] as a result of Public Law 101-189.*

**f. Effective Date of 2 X 4 Rate.** Award the 2 X 4 rate for all
enrollment periods occurring within the period the claimant is in the
Selected Reserve. If the veteran loses eligibility to the 2 X 4 program,
terminate the 2 X 4 rate effective from the day after release from the
Selected Reserve. Veterans lose eligibility if discharged from the
Selected Reserve for other than one of the six acceptable reasons. \[The
BDN\] automatically makes these rate adjustments.

**g. Procedures When Claimant Reported as Released From Selected
Reserve.** See chapter 5 regarding the NOES messages for these cases and
chapter 2 for general \[BDN\] processing.

\(1\) [No Change in Eligibility Status]{.underline}. There is no change
in the following situations:

\(a\) The claimant did not receive 2 X 4 benefits because he or she was
already receiving the 3-year basic rate with 36 months entitlement based
on active service only.

\(b\) VA previously asked the claimant for documentation supporting the
4-year Selected Reserve commitment, but the claimant did not respond.

*NOTE: If VA should have requested evidence of a Selected Reserve
obligation and did not do so, determine the reason for separation from
the Selected Reserve. If the claimant has one of the six acceptable
separation reasons, develop for evidence of the 4-year obligation and
award 2 X 4 benefits if eligibility is established.*

\(2\) [Proof of Release From Selected Reserve]{.underline}. Always
review the \[MGIB-SR\] DOD screens in addition to the 30D screen. The
claimant may have simply changed components or changed from enlisted
status to officer status rather than actually ended Selected Reserve
participation. In such cases, there would be 2 or more DOD screens. One
DOD screen would show the \"Date Entered Component\" to be on or after
the RSR date on the 30D screen. If there is any doubt whether or not the
claimant is still in the Selected Reserve, advise the claimant in
advance before reducing or terminating benefits. If the claimant has not
responded within 30 days, reduce or terminate the award based on the
report of release from the Selected Reserve.

\(3\) [Proof of Reason for Release From Selected Reserve]{.underline}.
If the [reason]{.underline} for release is unknown, advise the claimant
in advance before reducing or terminating benefits. See chapter 7 for
sample wording for this letter.

\(4\) [Unacceptable Reason for Release From Selected
Reserve]{.underline}. There are 2 situations \[requiring special
procedures when a claimant separates from the Selected Reserve for a
reason other than one of the six acceptable reasons. (The acceptable
reasons are HDSP, DIS, EPTS, RIF, RIF with 30 months Selected Reserve
service, or CIWD.) These instructions for the special procedures are\]
outlined below.

\(a\) [Eligibility Terminated]{.underline} (i.e., there is no
eligibility based on active service alone)

[1]{.underline}. Create an overpayment for any training after the RSR
date.

[2]{.underline}. If entitlement is now exhausted because of the release
from Selected Reserve, create an overpayment for any period for which
there is now no entitlement.

[3]{.underline}. Do not award any increase or extension of benefits for
any reason while the claimant was in the Selected Reserve.

*NOTE: A claimant may separate from the Selected Reserve for an
unacceptable reason. If VA learns of this [before]{.underline}
processing the original claim, do not award any benefits at all even
though Target would allow such an award.*

\(b\) [Eligibility Continues]{.underline} (i.e., the veteran has
eligibility based on active service). Pay the \[2-year basic\] rate for
all enrollment periods after the RSR. Pay the \[3-year\] rate for
enrollment during the period the veteran was in the Selected Reserve.

*NOTE: It is permissible to retroactively award the \[3-year\] rate
during the Selected Reserve period if VA receives an enrollment
certification for this period. Also, note that the veteran has the right
to elect benefits based on [active service only]{.underline} if
discharge is for hardship or for service-connected disability as
described in subparagraph g below.*

**h. Release from Selected Reserve---Election.** If the veteran received
a discharge from the Selected Reserve for [hardship]{.underline} or
[service-connected disability]{.underline}, he or she may elect benefits
based on active service only (see par. 1.18f). Initially, remove the RSR
date from the 310 screen and continue to process the claim as a 2 X 4
case. Diary the case for 30 days. Provide a letter to the veteran.
Explain that he or she may receive the \[3-year basic\] rate for XX
months (the number of months of active service plus 1 month for each 4
months of Selected Reserve service). Instead he or she may elect a
\[lower basic\] rate for MM months (the number of months based on active
service alone). Explain that if he or she elects the \[2-year\] rate an
overpayment will result for all periods previously paid at the
\[3-year\] rate.

\(1\) If the veteran does not respond or elects to receive the \[3-year
basic\] rate, enter the RSR rate on the Target 310 screen. Target will
compute the correct rate and entitlement.

\(2\) If the veteran elects to receive benefits based on active service
only, delete the ESR and RSR dates from the 310 screen. Regenerate all
award lines. Target will compute rates and entitlement based on active
service only.

**i. Entitlement Computations.** Entitlement is 1 month for each month
on active duty with fractions dropped [plus]{.underline} 1 month for
each 4 months in the Selected Reserve with fractions dropped. When the
ESR date initially appears on the 310 screen, Target credits the veteran
with the maximum of 12 months of entitlement based on Selected Reserve
Service. Total entitlement may not exceed 36 months. If a veteran who
did not initially have maximum entitlement under chapter 30 serves
beyond 48 months in the Selected Reserve, he or she earns additional
entitlement. \[Adjudication may advance up to 4 additional months of
entitlement, provided the veteran has completed 4 years in the Selected
Reserve. Notify the veteran that failure to complete the required
reserve service could result in an overpayment of benefits which he or
she would be required to repay. Target\] recomputes entitlement when the
veteran leaves the Selected Reserve.

EXAMPLE: A veteran serves 23 months and 15 days on active duty and then
enlists for at least 4 years in the Selected Reserve. The initial
entitlement computation will be 35 months (23 months for the active
service and 12 months for the Selected Reserve Service). If the veteran
actually serves 4 years and 4 months, he or she earns an additional
month of entitlement for a total of 36 months.

**j. Effect of Entitlement Change on Kicker.** Changes in entitlement
are common when entering or leaving the 2 X 4 program. If entitlement
changes [and]{.underline} the veteran has a kicker, the monthly kicker
will change also. In such cases, reenter all award lines for training
after release from active duty at the time of the entitlement change.
The kicker payout will be correct for the current entitlement. Do this
even if an overpayment will result.

EXAMPLE: A veteran serves 24 months on active duty and then enlists for
at least 4 years in the Selected Reserve. He or she initially has 36
months of entitlement. After completing 15 months in the Selected
Reserve, the veteran receives a discharge for a separation reason of
hardship. Assuming the veteran does not make the election described in
subparagraph 3.09h above, recompute entitlement to be 27 months (24
months for the active service and 3 months for the Selected Reserve
service).

**k. Eligibility Based Solely on Selected Reserve Service.** Some
individuals\' eligibility for chapter 30 may be contingent upon
satisfactory participation in the Selected Reserve because their active
duty service alone does not meet the requirements for chapter 30
eligibility.

\(1\) Identify these individuals as follows:

\(a\) For category I, they have enlistment terms of 3 or more years.

\(b\) Their active duty service alone does not meet the eligibility
requirements described in chapter 1 of this part.

\(c\) They have at least 24 months of active duty service unless
separated for an acceptable reason. (See par. 1.17c.)

\(d\) They combine active duty service with an obligation to serve at
least 4 years in the Selected Reserve.

\(2\) Unless an ESR date is entered on the 310 screen, the message
NO CH30 ELIGIBILITY will be displayed on the Target screen.

\(3\) It is important to notify these individuals that their chapter 30
eligibility is contingent upon their satisfactory participation in the
Selected Reserve. If they leave the Selected Reserve for unacceptable
reasons or otherwise fail to satisfactorily participate in the Selected
Reserve, their chapter 30 eligibility terminates. See paragraph 7.14 for
required pattern letter.

**SUBCHAPTER II. ADDITIONAL PROCEDURES FOR CATEGORY II ELIGIBILITY**

**3.10 DEVELOPMENT AND ADJUDICATION OF CATEGORY II CASES**

This subchapter provides certain additional procedures required for
determining eligibility in category II cases. The RPO and not the local
RO does all development or correspondence on chapter 30 issues
(including chapter 34 eligibility, where chapter 30 eligibility depends
on eligibility to chapter 34). The RPOs rather than the local ROs should
adjudicate chapter 34 issues which may arise in chapter 30 cases.

**3.11 30D SCREEN INTERPRETATION**

Both Chapter 30 Specialists at the local ROs and Adjudication personnel
at the RPOs must properly analyze the Target 30D screen. The 30D screen
displays data for claimants previously eligible for chapter 34 who are
likely to apply for chapter 30 benefits. See part II, paragraph 4.10,
for a complete description of all data that may appear on the
30D screen. See paragraph \[1.03 and paragraphs 1.09 through 1.11\] for
basic eligibility requirements.

a\. Four periods of service may show on the 30D screen. The first three
columns of service data contain BIRLS data and the fourth column
contains DOD data.

b\. The BIRLS data appears on the 30D screen (i.e., the first three
service data columns) from a reconciliation

comparison done on DOD and BIRLS data. This data may conflict with what
appears on the current BIRLS screen due to BIRLS getting later updates
of information. The MSC (Miscellaneous) Screen in BIRLS shows the date
of the comparison. The DOD service data on the 30D screen (column 4) is
current as of the last DOD update. Regularly scheduled updates from DOD
do not occur in category II cases.

*NOTE: For the DOD data, column 4, the EOD date moves forward if the
claimant had a break in service. For example, if a claimant served from
January 1, 1975, through December 31, 1978, and from January 1, 1980, to
August 1, 1988, the EOD would show January 1, [1977]{.underline}. Use
this fact in analyzing breaks in service. If the EOD in column 4 is
later than the EOD shown from another source, there is a strong
likelihood that a break in service occurred.*

c\. All individuals on active duty on October 19, 1984, will have a
30D screen except the following:

\(1\) Individuals with a chapter 32 Bank record (see pt. VI, ch. 2); and

\(2\) Some AGR (Active Guard Reserve) claimants.

**3.12 VERIFICATION OF SERVICE**

To determine the proper service dates, review all sources of service
data.

**a. Veterans.** Service for all periods, including service establishing
chapter 34 eligibility, is established by one of the following four
methods:

\(1\) The service dates are shown on VA Form 22-0572, Chapter 34/30
Conversion Data Sheet, prepared by a local RO in accordance with the
procedures in chapter 8 and there is no conflict in the dates that
requires a DD Form 214 for resolution.

\(2\) The BIRLS VID screen shows HON in the CHARACTER OF SVC field and:

\(a\) The VADS indicator in BIRLS is Y, and

\(b\) Column 4 of the 30D screen shows an EOD consistent with BIRLS or
with the veteran\'s application in file, and the RAD and character of
service, if shown, are consistent with BIRLS.

*NOTE: Always request the DD Form 214 for the latest period of service
if the claimant has less than 36 months service after June 30, 1985, the
30D screen does not show a separation reason, and the veteran would be
eligible if he or she had an acceptable separation reason. In some
cases, review of the DD Form 214 may reveal that the veteran had an
allowable separation reason such as hardship.*

\(3\) A DD Form 214 is of record for the final period of service but not
for prior periods and the statement in subparagraph a(2)(b) is true with
respect to the EOD implied by the DD Form 214.

\(4\) If the evidence in (1) (2) and (3) is not available, DD Forms 214
or VA Forms 00-3101, Request for Information, are required for any
unverified periods. Uncertified copies are acceptable unless there is a
conflict with the 30D screen or BIRLS as to character of discharge, or
there is a substantial conflict as to service dates, or there is reason
to suspect the claimant has altered the document.

**b. Servicepersons.** Refer to the Commanding Officer\'s signature on
VA Form 22-1990 and column 4 of the Target 30D screen to verify service.

**c. Conflicting Evidence.** If there is a conflict in the record as to
service dates or breaks in service, resolve the conflict by requesting
additional information from the claims folder using the procedure in
paragraph 3.14 or by initiating appropriate development.

\(1\) Request a VA Form 22-1990 from the claimant (properly certified by
the claimant\'s commanding officer for servicepersons).

\(2\) Request DD Forms 214 for periods of the veteran\'s service in
question.

\(3\) Request a statement of service from DOD using VA Form 00-3101.

*NOTE: In chapter 30, it is necessary to know the exact dates of any
breaks in service occurring on or after January 1, 1977, since such
breaks may affect eligibility or the length of the claimant\'s
delimiting period.*

**3.13 MULTIPLE SERVICE PERIODS**

Exercise extreme caution in determining breaks in service which occur
between January 1, 1977, and June 30, 1985. Carefully review the dates
of service for eligibility periods. Breaks in service before
December 31, 1976, are not significant. If there is a break in service
after December 31, 1976, the eligibility period will be reduced per
paragraph \[1.19c.

**a. Target Entry.\]** If the claimant has more than one period of
service, enter the period \[with the EOD date nearest June 30, 1985,\]
in the [first]{.underline} available block on the Target 310 screen,
Chapter 30/106 Eligibility and Entitlement (see ch. 2, par. 2.07).

**b. \[Break in Service.\]** If there is a break in service after
December 31, 1976, and before October 19, 1984, see figure 3.05 to
determine the adjusted delimiting date.

\[(1) [Reduced Periods of Eligibility]{.underline}. An individual\'s
10-year period of eligibility is reduced by the time the individual was
not on active duty between January 1, 1977, and June 30, 1985.

\(2\) [Procedures]{.underline}. Change the EOD date on the 310 screen
and flash the folder.

**c. When Multiple Service Periods Can Be Considered Together.** See
paragraph 3.06c(1)(d) and (e).

**d. Delimiting Date Not Generated.** If C/E (Certificate of
Eligibility) or award processing does not generate the correct
delimiting date:

\(1\) For C/Es, the Target-generated delimiting date cannot be changed
manually. Do not produce C/E on Target.

Issue VA Form 22-1993a, Certificate of Eligibility, or equivalent letter
showing the correct delimiting date.

\(2\) For original and supplemental awards, send a separate letter
explaining the correct delimiting date (see ch. 7).

\(3\) In all cases, the adjudicator will enter in MSG field on the
312 screen \"Adj Del Dt.=(MM/DD/YY).\"

*NOTE: There is no way currently to adjust the system-generated
delimiting date.*\]

**WORKSHEET FOR ADJUSTED DELIMITING DATE**

When a claimant has more than one period of service with a break or
breaks after December 31, 1976, and before June 1, 1985, that
individual\'s delimiting period is reduced by the length of the
break(s). To determine the adjusted delimiting date, use the following:

1\. Periods of Service (YR/MO/DA) (YR/MO/DA)

a\. First EOD \_\_/\_\_/\_\_ \_\_/\_\_/\_\_

b\. First RAD \_\_/\_\_/\_\_ \_\_/\_\_/\_\_

c\. Second EOD \_\_/\_\_/\_\_ \_\_/\_\_/\_\_

d\. Second RAD \_\_/\_\_/\_\_ \_\_/\_\_/\_\_

2\. Calculation of break(s):

(If more than one break, repeat item 2,

add breaks together, and enter in item 4.)

a\. Enter First RAD (item 1b) plus 1 day,

or 1977/1/1, whichever is later. \_\_/\_\_/\_\_

b\. Length of Break---

Subtract item 2a from item 1c.

(Also, enter in item 4.) \_\_/\_\_/\_\_

3\. Basic Delimiting Date---(system-generated)

Enter Second RAD (item 1d) plus 10 years

+1 day, or 2000/1/1, whichever is later. \_\_/\_\_/\_\_

4\. Enter length of break(s) from item 2b. \_\_/\_\_/\_\_

5\. Adjusted Delimiting Date---

Subtract item 4 from item 3. \_\_/\_\_/\_\_

**Figure 3.05. Worksheet for Adjusted Delimiting Date**

**3.14 RPO REQUESTS TO REGIONAL OFFICES AND TO THE RPC**

**a. Method of Request.** In some cases, RPOs may need information from
the claims folder. To the extent possible, such requests for information
will be accomplished using \[E-mail\]. See part I, \[paragraph 4.07.\]

**b. Special Procedures.** When an RPO needs information from the claims
folder (e.g., application, service data, dependency information,
enrollment data, chapter 34 data), the RPO will request:

\(1\) Complete supporting documentation as described in chapter 8,
paragraph 8.05.

\(2\) Specific documents or information whenever possible.

*NOTE: When a claims folder does not exist or is at the RPC (Records
Processing Center) or a FRC (Federal Records Center), the RPO will
[not]{.underline} ask a local RO to provide any documentation. If
necessary, an RPO may recall a claims folder. However, do not routinely
request folders from the RPC or FARC if the information is available
elsewhere.*

**3.15 CHAPTER 34 ELIGIBILITY DETERMINATIONS**

If the claimant has previously established chapter 34 eligibility,
accept this determination in the absence of clear and unmistakable
error. If the claimant has not previously established eligibility and
entitlement for chapter 34, apply the principles in chapter 9.
Documentation of chapter 34 eligibility and entitlement is required in
cases with two or more periods of service. In such cases use the chapter
34 BDN 310 screen as a worksheet and print a copy of this worksheet for
the chapter 30 folder. See part VI, \[paragraph 2.04\], for procedures
for using this screen. If there are more than three periods of service,
retain a worksheet in the folder showing entitlement and delimiting date
computations.

*NOTE: The chapter 34 BDN 310 screen may not be used for cases with more
than three service periods.*

**SUBCHAPTER III. ADDITIONAL PROCEDURES FOR CATEGORY III ELIGIBILITY**

**3.16 DEVELOPMENT AND ADJUDICATION OF CATEGORY III CASES**

**a. Definition.** See paragraph 1.03a for definitions of categories
IIIA, B, and C.

*NOTE: The two programs currently offered under sections 10 U.S.C. 1174a
and 1175 are SSB (Special Separation Benefit) and VSI (Voluntary
Separation Incentive). Wherever these terms are used below, they refer
to sections 1174a and 1175. Any voluntary separations before December 5,
1991, were not under VSI or SSB.*

**b. \[Chapter 32 Eligibility.** For category III claimants eligible for
chapter 32, also see paragraph 3.19.\]

**c. Initial Eligibility Evidence**

\(1\) [30D Screen]{.underline}. The 30D screen will display STATUS codes
09 PARTICIPANT, 10 CH32 TRANSFER, or 11 DUAL ELIGIBILITY, except for
initial category IIIC claims. For original category IIIC cases, the
service department will update the 30D screen STATUS code to 09, 10, or
11 only after VA establishes a type A, E, or I master record. (See par.
3.06a for STATUS code definitions.)

\(2\) [Proof of Service]{.underline}. The veteran\'s DD Form 214 will
show that the character of the veteran\'s service was honorable and
involuntary separation for category IIIA, or voluntary separation under
the SSB or VSI programs after December 5, 1991, for category IIIB or
category IIIC. If other evidence indicates the veteran may have been
involuntarily separated, DD Form 2366 is acceptable as proof of service.
Use the procedures in paragraph 3.03c when character of service is not
verified.

\(3\) [BIRLS VID Screen]{.underline}. If the veteran claims eligibility
under category III but does not have the above documentation, check
BIRLS for the character and service dates. If service data indicates
potential eligibility, develop for documentary evidence.

REMINDER: Unlike category IIIA, there is no requirement that the
veteran\'s EOD date be on or before September 30, 1990, or on or after
November 30, 1993, for category IIIB or category  IIIC.

\(4\) [Time Limit]{.underline}. Evidence of eligibility, such as a DD
Form 214 or the \$1,200 payment \[in category IIIC cases\], must be
received in VA within one year of the date of any letter requesting it.
This does not apply to the election or to the time limits to submit a
valid election. See paragraph 3.17. \[Otherwise, benefits, if payable,
cannot begin until the date the evidence is received.\]

**3.17 CATEGORY III ELECTIONS**

In order to receive benefits under category III, individuals must revoke
any previous election not to receive chapter 30 benefits and must now
elect to receive such benefits.

REMINDER: VA may [not]{.underline} accept elections from persons who
were INVOLUNTARILY separated before October 23, 1992, nor from persons
who were voluntarily separated other than under the SSB or VSI program.

**a. Category IIIA and Category IIIB**

\(1\) [Election]{.underline}. DOD is responsible for obtaining elections
in category IIIA and category IIIB cases. The claimant should have a
current BDN 30D screen showing eligibility for those cases.

\(2\) [Evidence of Election]{.underline}. Either a DD Form 2366 or a
category III status code (see par. 3.16) on the 30D screen is acceptable
evidence of election.

\(a\) [DD Form 2366]{.underline}. To document the election under
categories IIIA and IIIB, the service departments issue DD Form 2366, to
each individual who elects this benefit while on active duty.

*NOTE: DD Form 2366 was designed for use by persons initially entering
active duty after June 30, 1985. However, DOD uses these forms for
persons to elect to participate in chapter 30 before being separated
from active duty. Because of administrative delays in implementing the
law, some category IIIB participants had DD Forms 2366 issued
retroactively.*

\(b\) [30D Screen]{.underline}. A 30D screen with the appropriate STATUS
code is prima facie evidence that DOD accepted an election.

\(c\) [Other forms of election evidence]{.underline}

[1]{.underline} If the claimant submits evidence or alleges payment of
\$1,200 for chapter 30 benefits, but has no DD Form 2366, send a VA Form
22-0569, Report of Contact With DOD, with a copy of the claimant\'s
evidence and DD 214 to the appropriate contact point. See paragraph 8.11
for proper completion of this form. Request correction of the
claimant\'s record and verification of whether the claimant elected or
the money was refunded. Continue control on the claim until a response
is received.

[2]{.underline} If the claimant indicates that he or she was never given
the opportunity to elect before separation, notify the service
department contact point on a VA Form 22-0569. Indicate that it is for
information only. Notify the claimant of the referral. Deny the claim
for no evidence of eligibility and refer the claimant to the contact
point.

**b. Category IIIC**

*NOTE: To be considered timely, elections under category IIIC must have
been received in VA before October 23, 1993. To perfect the election,
the claimant \[is also required to submit \$1,200.\] (See par. 3.18b.)
Elections received on or after October 23, 1993\[\], should be denied
using the paragraphs shown in figure 3.06. \[\]*

> PARAGRAPHS FOR CATEGORY IIIC DENIALS
>
> (No Right to Elect)
>
> Your election under Public Law 102-484 to become entitled to Chapter
> 30, the Montgomery GI Bill benefits for persons who served on active
> duty, is denied since you do not meet the criteria for electing such
> benefits.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> Your military records (describe, e.g., DD Form 214) show that you did
> not receive a discharge under the SSB (Special Separation Benefit) or
> VSI (Voluntary Separation Incentive) program.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> We received your election statement on (show date), after
> October 22, 1993, the closing date for making elections under this
> law.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> (No Basic Eligibility)
>
> Because you do not meet the basic eligibility criteria under Public
> Law 102-484 for entitlement to benefits under Chapter 30, the
> Montgomery GI Bill for persons who served on active duty, we must deny
> your claim. In order to meet the basic eligibility criteria for
> benefits under this law the veteran must: (State the element of basic
> eligibility not met. Use one of the paragraphs below, if applicable.)
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> Your military records (describe, e.g., DD Form 214) show that you were
> not voluntarily separated from active duty as defined by the
> Department of Defense under the SSB or VSI Program after December 4,
> 1991, and before October 23, 1992.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> Your military records (describe, e.g., DD Form 214) show that you did
> not receive an honorable discharge from active duty after December 4,
> 1991, and before October 23, 1992.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> (Other Than Basic Eligibility)
>
> \[State reason for denial.\]
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> This denial is for the reason(s) stated above, and does not constitute
> a denial of your election of education benefits under chapter 30, the
> Montgomery GI Bill for persons who served on active duty. You meet the
> basic requirements for entitlement to benefits, and payment will be
> made if the reason(s) for denial at this time is/are removed in the
> future. Evidence must be submitted within one year in order to receive
> benefits from the earliest possible date, if eligibility for payment
> of chapter 30 benefits is established.
>
> **Figure 3.06. Category IIIC Denial Paragraphs**

\(1\) [Election]{.underline}. VA \[was\] responsible for obtaining
elections under category IIIC. See paragraph 1.15c. BDN does not have a
30D screen showing the claimant is eligible for category IIIC on
original claims, unless the veteran\'s service is potentially qualifying
under another category. This is because DOD will pass back data showing
these veterans were eligible only after VA has used BDN to issue a C/E
or make an original award.

*NOTE: DOD may also have accepted some elections from some category IIIC
individuals in error. The procedure for verification of category IIIB
elections is used in these cases.*

\(2\) [Evidence of Election]{.underline}. VA \[should have accepted\]
any signed communication from the claimant or authorized representative
received in VA before October 23, 1993, showing intent to elect chapter
30 benefits under

Public Law 102-484.

\(3\) [Adverse Consequences]{.underline}. VA \[should not have
considered\] an election valid if it clearly would \[have resulted\] in
providing a lesser benefit, unless the claimant either expressly
\[affirmed\] the election or \[did\] not respond to VA\'s notice of the
adverse consequences. The RPO \[determined\] the validity of elections.

\(4\) [Valid Election Statement]{.underline} . To be considered a valid
election, the statement must reflect that the veteran \[was\] aware that
the election \[was\] under PL 102-484 and \[the election statement must
have been\] received in VA before October 23, 1993.\[ \]

*NOTE: Upon receipt of a valid election, VA will consider a veteran who
had previously elected not to receive chapter 30 benefits (30D screen
shows first EOD after June 30, 1985, and INELIGIBLE in the STATUS field)
to have revoked the previous election not to participate. Any
\[original\] award letter is to include a statement that VA considers
the current election has the effect of withdrawing the previous
election*.

\(5\) [Informed Election Statement]{.underline}. In some cases, an
election clearly may \[not have been\] to the advantage of the veteran,
implying that the veteran \[lacked\] adequate knowledge of the meaning
and consequences of his or her election.

\[ \] If the veteran\'s records indicate that the election would have
resulted in lesser benefits, would have created a net overpayment, or
otherwise would not have been advantageous considering the \$1,200
payment, the veteran \[should have been\] fully advised of any such
potentially adverse consequences and asked for either confirmation of
the election or its withdrawal. Also, the veteran should have been
advised that, if a response is not received within 60 days, VA will
accept the election, which is irrevocable.

EXAMPLE: The claimant used 21 months entitlement under chapter 35 and 22
months under chapter 32 and has \$500 remaining in his chapter 32
contribution account. He elects chapter 30 benefits. Since he had only 5
months entitlement remaining (of the allowable 48 months), it would not
be to the veteran\'s advantage to pay the additional \$700 and to
receive chapter 30 for the additional 5 months.

**3.18 \$1200 PAYMENT\[\]**

**a. Category IIIA and Category IIIB.** \[The \$1,200 payment is an
eligibility requirement for [category IIIB]{.underline} but not for
category IIIA. If the 30D screen does not show collection of \$1,200 in
a category IIIB case, ask the service department contact point and the
veteran for evidence of payment. If the \$1,200 payment cannot be
established, deny the claim. If an RPO encounters a case where VA has
already paid benefits and the \$1,200 payment cannot be established,
call the Program Administration staff of the Education Service at (202)
273-7187 for guidance.\]

**b. Category IIIC.** \[The \$1,200 payment is an eligibility
requirement for [category IIIC]{.underline}. Under category IIIC, VA
collects the \$1,200 payment if the service department had not already
done so. This \$1,200 payment is specifically earmarked for establishing
eligibility to the chapter 30 program, similar to chapter 32 participant
contributions. As such, it is NOT subject to withholding for recoupment
of any debt.

*NOTE 1: The service department may have already received the election
and collected the \$1,200 payment. VA personnel should accept this
notification as in subparagraph a above.*

*NOTE 2: There is no time limit for receipt of the \$1,200. If an
individual did not pay \$1,200 with a timely filed election and VA has
to request the \$1,200, VA can pay benefits back to the date of election
provided the \$1,200 is received within one year from the date of
request. Otherwise, benefits may begin no earlier than the date of
receipt of the \$1,200. In no case can benefits be awarded until the
individual pays the full \$1,200.* *38 CFR 21.7131 also must be
considered when deciding when benefits may start.\]*

\(1\) [Form of payment.]{.underline} The payment may be in the form of
cash, check, or money order payable to the Agent Cashier, withholding
from a refund of contributions to chapter 32, or any combination of the
above.

\(a\) Installment payments are not acceptable.

\(b\) Amounts of less than \$1,200 total are not acceptable.

\(2\) [Procedures When VA Collects the \$1200 Payment]{.underline}

\(a\) \[The RPO Finance activity will review the \$1,200 payment with
the RPO Adjudication Division to determine if acceptance of the payment
is proper.\]

*NOTE: The Agent Cashier is the control point for the funds veterans
send in for elections. Proper handling requires coordination between the
Agent Cashier or other Finance activity contact point \[\] and the RPO
Adjudication personnel. \[\]*

\(b\) \[Finance will input the \$1,200 payments in the CALM (Centralized
Accounting for Local Management) system. If the claimant had chapter 32
contributions, see subparagraphs 3.19e and f , below.\]

*NOTE: Any money submitted to VA to establish eligibility for receipt of
chapter 30 benefits is used ONLY for that purpose. For example, it could
not have been applied to satisfy a debt such as a previous overpayment
of benefits.*

**3.19 CLAIMANTS WHO HAVE CHAPTER 32 CONTRIBUTIONS**

CAUTION: All chapter 32 claims \[and refund requests\] from veterans
released after February 3, 1991, must be reviewed by the RPO
Adjudication division. Failure to do so could result in duplication of
benefits, refund of improper contribution amounts, or erroneous denials
of benefits. \[ \]

**a. \[Review for Chapter 32.** If the individual is receiving chapter
32 benefits, terminate chapter 32 benefits effective the date of
election. The \"None\" date on the award should be the date of election.

**b. Effective Date of Benefits.** Chapter 30 for any category III
individual can begin no earlier than the date of election.

**c. Overpayment of Chapter 32 Benefits.** An overpayment of chapter 32
benefits could occur as the result of a chapter 30 election. In the
event of such an overpayment, follow these steps:

\(1\) Stop the chapter 32 award effective the date of the election.

\(2\) Wait a day for the chapter 32 record to update.

\(3\) Authorize the chapter 30 award but do not process any verification
of attendance data.

\(4\) Ask Finance to transfer the accounts receivable from the chapter
32 record to the chapter 30 record.

\(5\) Process verification of attendance data, if applicable.

**d. Refund of Chapter 32 Contributions.** Request Finance to refund any
remaining chapter 32 contributions after a category III election case
has been processed. (If a VA form 5281 is not of record, Finance should
have enough information to process a refund without this form.)

*CAUTION: For persons currently receiving chapter 32 benefits, it is
important to determine the date of the chapter 30 election. Chapter 32
benefits should be terminated effective the date of election.*

**e.** **\$1,200 Payment.** If a category IIIC veteran had chapter 32
contributions, the \$1,200 payment may be withheld from any refund of
chapter 32 contributions remaining after any chapter 32 account
receivable is recouped. The veteran is required to:

\(1\) Complete VA Form 4-5281.

\(2\) Request in writing that \$1,200 be withheld from any chapter 32
refund to establish eligibility to chapter 30 under Public Law 102-484.

*NOTE: If the veteran had less than \$1,200 in the chapter 32 account he
or she is required to submit the difference between that amount and
\$1,200 before VA will consider that this requirement is met.*

**f. Finance Procedures.** After RPO Adjudication personnel establish
the date of election, the refund from the chapter 32 account may be
accomplished using BDN TR (Transaction) 96, payable to the RPO Agent
Cashier. The entire refund is deposited in the station suspense account.
The \$1,200 is transferred to the Finance activity at the RPO of
jurisdiction on VA Form 4­4564, Transfer of Disbursing Authority, and the
difference, if any, paid to the claimant.\]

**3.20 DENIALS**

\[**a. General.** Use the procedures in paragraphs 2.15 and 4.02. Be
sure to send dictated letters for all category III denials.

**b. Category IIIC**

\(1\) [Letters]{.underline}. Category IIIC denial letters should include
paragraphs similar to those in figure 3.06.

\(2\) [BDN]{.underline}. Be sure disallowed records are created in BDN
except where basic eligibility exists but the school is not approved,
the claimant has not submitted \$1,200 etc. In the latter types of
cases, use BDN 310 screen processing to issue a record-purpose
Certificate of Eligibility.

\(3\) [Refund of \$1200]{.underline}. Finance will refund the \$1,200
payment if Adjudication determines that the veteran failed to submit a
valid election before October 23, 1993, or does not meet the basic
eligibility requirements for election.

\(a\) Adjudication will notify Finance with a memorandum giving the
reason(s) for the refund, the claimant\'s name, claim number, and
address of record.

\(b\) Finance will send the veteran a letter that explains the reason
for the refund and details the veteran\'s appellate rights.\]

**3.21 ISSUANCE OF CERTIFICATES OF ELIGIBILITY**

\[Review the chapter 30 folder to determine if additional evidence is
needed to issue a Certificate of Eligibility. In order for eligibility
to be established, there must be a VA Form 22-1990, an election, and
evidence of payment of \$1,200 of record. If an application is received
without a payment, send a development letter similar to the one shown in
figures 3.07 or 3.08. Set up controls as outlined in part III,
chapter 1. If the veteran fails to furnish the requested evidence or
payment, follow the denial procedures in paragraph 3.20.\]

> DEVELOPMENT LETTER FOR \$1,200 FOR CATEGORY IIIC CASES
>
> (For Individuals With No Chapter 32 Contributions Who Have Submitted
> Election)
>
> We have received your election of education benefits under chapter 30,
> the Montgomery GI Bill for persons who served on active duty.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> However, you are required to submit a payment of \$1,200 to VA within
> one year of the date of this letter for benefits to be awarded from
> the earliest possible date; otherwise benefits cannot be paid before
> the date of receipt in VA. The check or money order should be payable
> to \"VA Agent Cashier.\"
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> If you previously elected not to participate in chapter 30, VA accepts
> your \[ \] election to receive chapter 30 benefits as a revocation of
> your previous election not to receive benefits under that chapter.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> \-- - - - -
>
> Enclosed is a VA Form 22-1990, Application for Education Benefits. In
> order to receive education benefits for training since your election,
> you should complete the application and return it to the address shown
> below.
>
> We are enclosing a copy of VA Pamphlet 22-90-2, Summary of Education
> Benefits Under the Montgomery GI Bill-Active Duty Educational
> Assistance Program, Chapter 30 of Title 38, U.S.C. This pamphlet
> summarizes the benefits available under chapter 30. However, do not
> rely on it to determine if you are eligible. To receive a formal
> decision from VA, you must file a claim for benefits.
>
> Please return your application and payment of \$1,200 as soon as
> possible. Eligibility for payment of benefits cannot be established
> until we receive your payment of \$1,200. We cannot take any action to
> pay benefits until we receive the application form.
>
> Please reply to: (RPO Address)
>
> P.O. Box XXXXX
>
> XXXXXXX, XX 99999-9999
>
> Sincerely yours,
>
> Adjudication Officer
>
> Enclosures
>
> (NOTE: Enclose VA Form 1-4107, VA Form 21-4138, VA Form 22-1990 and VA
> Pamphlet 22-90-2)
>
> **Figure 3.07. Development Letter for \$1,200 for Category IIIC Cases
> With No Chapter 32 Contributions**
>
> DEVELOPMENT LETTER FOR \$1,200 FOR CATEGORY IIIC CASES
>
> (For Chapter 32 Contributors Who Have Submitted Election)
>
> We have received your election of education benefits under chapter 30,
> the Montgomery GI Bill for persons who served on active duty. However,
> you are required to submit a payment of \$1,200 to VA within one year
> of the date of this letter for benefits to be awarded from the
> earliest possible date. Otherwise benefits cannot be paid before the
> date of its receipt in VA. The check or money order should be payable
> to \"VA Agent Cashier.\"
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> Since your election has been accepted by VA, you cannot revoke it and
> elect to receive benefits again under VEAP.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> Our records indicate that you are a participant in the chapter 32,
> VEAP (Post-Vietnam Educational Assistance Program). In order for your
> election to receive chapter 30, Montgomery GI Bill benefits to become
> effective, you must disenroll from VEAP. To do so, complete and return
> the attached VA Form 4-5281, Application for Refund of Educational
> Contributions.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> Any VEAP contribution amounts above the \$1,200 required for chapter
> 30 will be refunded to you.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> You have less than \$1,200 of contributions remaining in your VEAP
> account. We can apply your remaining VEAP contributions less any
> outstanding debts to VA (currently a net amount of \$XXXX.XX) toward
> the \$1,200 payment required for chapter 30 participation. However,
> you must pay VA the difference as soon as possible to establish your
> eligibility to receive chapter 30 benefits.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> \$XXX.XX has been withheld from your refund to satisfy a debt
> previously owed to VA.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> If you wish to have your VEAP contributions of \$XXXX.XX, the amount
> remaining after any outstanding debts are satisfied, applied toward
> the \$1,200 payment required for chapter 30, you must indicate that on
> your VA Form 4-5281.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> You must submit an additional signed statement as follows:
>
> I also request that \$1,200 (or the entire unused amount, if I have
> less than \$1,200 remaining in my chapter 32 contribution account) be
> withheld from any chapter 32 contribution refund and be applied toward
> the \$1,200 payment requirement for chapter 30, under Public Law
> 102-484.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> You authorized us to apply your unused VEAP contributions of \$XXX.XX
> to the \$1,200 payment. However, your remaining VEAP contributions
> less any outstanding debts to VA amount to \$XXX.XX. Since this is
> less than \$1,200, you must pay the balance before VA will consider
> that the \$1,200 payment requirement has been met.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> If you do not wish us to apply (\$1,200) (all ) of the refund of your
> VEAP contributions toward the \$1,200 payment required under Public
> Law 102-484 to receive chapter 30, Montgomery GI Bill benefits, you
> must so state. If you wish to receive benefits under Chapter 30, the
> entire \$1,200 and all other necessary evidence must be received
> within one year from the date of this letter for benefits to be
> awarded from the earliest possible date. Otherwise benefits cannot be
> paid before the date of receipt in VA.
>
> **Figure 3.08. Development Letter for \$1,200 for Category IIIC Cases
> With Chapter 32 Contributors of Record**
>
> Enclosed is a VA Form 22-1990, Application for Education Benefits. In
> order to receive education benefits for any training since your
> election, you should complete the application and return it to the
> address shown below.
>
> If you have not begun training, keep the application form and send it
> to the address shown below at the time you begin training.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> We are enclosing a copy of VA Pamphlet 22-90-2, Summary of Education
> Benefits Under the Montgomery GI Bill-Active Duty Educational
> Assistance Program, Chapter 30 of Title 38, U.S.C. This pamphlet
> summarizes the benefits available under chapter 30. However, do not
> rely on it to determine if you are eligible. To receive a formal
> decision from VA, you must file a claim for benefits.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> Please return your application and payment of \$1,200 or VA Form
> 4-5281 authorizing us to use your chapter 32 contributions of
> \$XXX.XX, the amount remaining after any previous debts are satisfied,
> toward your payment as soon as possible. Eligibility for payment of
> benefits cannot be established until we receive your payment of
> \$1,200. We cannot take any action to pay benefits until we receive
> the application form.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> Please return all requested evidence, including your VA Form 4-5281 as
> soon as possible. If you do not meet the \$1,200 payment requirement
> within one year of the date of this letter, chapter 30 benefits cannot
> be paid for training pursued before the requirement is met. If you do
> not furnish the additional required statement within one year of the
> date of this letter, chapter 30 benefits cannot be paid for any
> training pursued before the date of VA receipt of the statement. If
> you return VA Form 4-5281 only, without the additional statement, you
> can no longer receive benefits under VEAP, and any remaining
> contributions will be refunded to you.
>
> You may receive a combined maximum of 48 months benefits under two or
> more VA education programs. For example, if you used 30 months of VEAP
> (chapter 32) and are eligible for chapter 30, you could have a maximum
> of 18 months of potential entitlement remaining. You are charged one
> full day of entitlement for each day of full-time benefits paid.
> Entitlement charges are reduced proportionate to training time. For
> example, for a veteran who trains for 1 month at 3/4 training time, VA
> reduces remaining entitlement by 3/4 month.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> If you are currently receiving VEAP while in training, your VEAP
> benefits will be terminated effective (show the date the valid
> election was received).
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> If a properly completed VA Form 22-1990 is not already of record, you
> must complete and return one before chapter 30 benefits can be paid.
>
> \- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
> -
>
> Please reply to: (RPO Address)
>
> P.O. Box XXXXX
>
> XXXXXXXX, XX 99999-9999
>
> Sincerely yours,
>
> Adjudication Officer
>
> Enclosures
>
> (NOTE: Enclose VA Form 1-4107, VA Form 22-1990, VA Pamphlet 22-90-2
> and VA Form 4-5281.)
>
> **Figure 3.08. (continued) Development Letter for \$1,200 for Category
> IIIC Cases With Chapter 32**
>
> **Contributors of Record**