VA Regional Office and Insurance Center Circular 29- 86-\~\
Philadelphia, PA January 2, 1986

[1986 DFB PROCESSING SCHEDULE]{.underline}

1\. ORGANIZATIONAL ELEMENTS AFFECTED: Insurance Operations Div. -
VAROIC\
Operations Division - VARDPC

2\. REFERENCES: M29-1, Part II, Chapter 30, Paragraph 30.06

*3.* PURPOSE: To furnish 1986 cut-off dates covering the preparation
and\
transmission of the monthly magnetic transaction tape to the\
Hines DPC and the Manila Regional Office.

4\. PROCEDURE:

a\. The monthly magnetic transaction tape will be transmitted in the
calendar month preceding the accounting (register) month during which
the transactions are to be effected.

b\. DFB requests stored in the Temporary Data File on the Insurance
Terminal System will be sent to the Input Unit, Philadelphia DPC in
accordance with the following cut-off schedule:

REGISTER ENTER ADP GENERATED TRANSFERRED TO\
[MONTH]{.underline} [BY]{.underline} [DFB REQUESTS]{.underline}
[HINES/MANILA]{.underline}

JAN. 1986 12-17-85 12-17-85 12-18-85\
FEB. 1986 01-16-86 01-16-86 01-17-86\
MAR. 1986 02-14 02-14 02-18\
APR. 1986 03-17 03-17 03-18\
MAY 1986 04-17 04-17 04-18\
JUN. 1986 05-15 05-15 05-16\
JULY 1986 06-17 06-17 06-18\
AUG. 1986 07-17 07-17 07-18\
SEPT. 1986 08-15 08-15 08-18\
OCT. 1986 09-17 09-17 09-18\
NOV. 1986 10-16 10-16 10-17\
DEC. 1986 11-17 11-17 11-18

2\.

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

6\. RESCISSION: VAC Circular 29-84-3 is rescinded as of January 3, 1986.

,ROBERT W. CAREY

Director

[DISTRIBUTION]{.underline}:

A-I

D-1

E-I-2-3-5

F-1-3-6-8-12-15-21-22-26-29-33

R-2-5

5-1-2

T-1

VA Regional Office and Insurance Center Circular 29-84-2\
Philadelphia, PA December 13, 1984

[1985 SCHEDULE]{.underline}

[CONTROL OF DUPLICATE AND INVALID FORMS 29-5926]{.underline}

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

2\. REFERENCE: M29-1, Part II, Chapter 30, Paragraph 30.O6g

3\. PURPOSE:

a\. To provide the 1985 schedule covering the DPC processing procedure
which detects duplicate and invalid VA Forms 29-5926 prior to the
card-to-tape operations.

4\. PROCEDURE:

a\. Detailed procedures for processing these VA Forms 29-5926 are
outlined in M29-1, Part II, Paragraph 3O.O6g.

b\. Following is the 1985 schedule for the DPC selection of duplicate
and invalid VA Forms 29-5926:

DPC LISTING TO LISTING TO\
ACCOUNTING SELECTION POLICY SERVICE 1/0 UNIT\
[MONTH]{.underline} [DATE]{.underline} [UNITS BY COB]{.underline} [BY
COB]{.underline}

01/85 12/3/84 12/5/84 12/10/84\
02/85 01/4/85 01/8/85 01/11/85\
03/85 02/01 02/05 02/08\
04/85 03/01 03/05 03/08\
05/85 04/05 04/09 04/12\
06/85 05/03 05/07 05/10\
07/85 06/07 06/11 06/14\
08/85 07/05 07/09 07/12\
09/85 08/02 08/06 08/09\
10/85 09/06 09/10 09/13\
11/85 10/04 10/08 10/11\
12/85 11/01 11/05 11/08

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

6\. RESCISSION: VAC Circular 29-83-4 is rescinded.

[DISTRIBUTION]{.underline}:

A-I

D-I

E-I -2 -3 -5

F-I-3-6-8-12-15-21-22-26-29-33

R-2-5

5-1-2

T-1

January 15, 1973 M29-I, Part II\
Change 9

CONTENTS

CHAPTER 30. DEDUCTION FROM BENEFIT PAYMENT ACCOUNTS\
PARAGRAPH PAGE\
30.01 General 30-1\
30.02 DFB Authorizations, Format and Initial Processing 30-1\
30.03 Review of DFB Deduction Authorizations for Acceptability 30-2\
30.04 Processing of Acceptable DFB Deduction Authorizations 30-3\
30.05 Changes in Deduction From Benefit Payments 30A\
30.06 Control and Processing of VA Form 29-5926 30-5\
30.07 Reporting of Deduction Transactions 30-7\
30.08 Mechanical Processing of DFB Deduction Transactions 30-8\
30.09 Clerical Processing of Pending DFB Deduction Transactions 30-10\
30.10 Processing of VA Form 20-6560, Notice of Benefit Payment
Transactions 30-13\
30.11 Processing of VA Form 20-8271, Notice of Exception-CP&E Input
Transaction 30-15\
30.12 Requesting DFB Deduction Information 30-17\
30.13 Requesting Retroactive DFB Deduction Effective Dates 30-18\
30.14 Clerical Processing of Requests for Distribution-Transaction Type
114 30-19\
30.15 Processing Change of Address Notices Received From the Hines DPC
30-20\
30.16 Collection of Finance Indebtedness 30-20\
30.17 DFB of \$200 or More as Loan Repayments 30-21

3\~i

Mac 12,1980 M29-1, Part II\
Change 16

CHAPTER 30. DEDUCTION FROM BENEFIT PAYMENT ACCOUNTS

30.01 GENERAL

**a. The** insured can pay premiums on insurance, including the TDIP
(Total Disability Income Provision), by authorizing deductions from the
benefit payment he \[or she\] receives, provided the monthly award
amount is sufficient for this purpose. Monthly deductions may also be
authorized by the insured for loan and/or lien repayment.

b\. Deduction authorizations are also acceptable for payment of the
initial premium in connection with conversion, reduction or change of
plan, including the addition of TDIP rider, provided the insurance
contract to be converted, reduced or changed is currently being paid in
this manner. **A** new authorization will not be required if the
application reflects the method of payment to **be** deduction from
benefit payments. The initial premium on RH insurance may be paid by
deduction from benefit payments.

c\. Deduction authorizations are not acceptable as a medium of payment
to effect reinstatement of lapsed insurance, the payment of the initial
premium on new insurance other than RH, or the total disability income
provision to be attached to a new policy.

d\. Deductions for insurance purposes can be made from the following
benefit payments:

\(l\) Service-Connected Disability Compensation. Monthly payment made by
the **VA** to a veteran because of a service connected disability.

\(2\) Non-Service-Connected Disability Pension. Monthly payment made by
VA to veteran because of a nonservice connected disability.

**(3)** Death Compensation. Monthly payment made by VA to \[surviving
spouse\], child or parent of a veteran because of service connected
death occurring before January l, **1957.**

**(4)** Dependency and Indemnity Compensation. Monthly payment made by
**VA** to \[surviving spouse\], child or parent of a veteran because of
service connected death occurring after December 31, **1956.**

**(5)** Death Pension. Monthly payment made by VA to \[surviving
spouse\] or child of a veteran because of non-service-connected death of
veteran.

**(6)** Selection of Optional Settlement by Beneficiary. Monthly
installments of insurance benefits made by **VA** to beneficiaries of
policyholders of Government life insurance.

Maintenance of payment records for \[subparagraphs\] (I) through (5)
above are under the jurisdiction of the Data Processing Center, Hines,
Illinois, or the Manila regional office. Insurance payment records for
\[subparagraph **(6)** are maintained by the St. Paul and Philadelphia
**VA** centers based on the geographic location of the payees.

e\. All insurance accounts maintained by deduction from benefit payments
are located in the Philadelphia VA center.

f\. An authorization may be executed by an insured to supersede an
existing authorization in any amount representing an increase, decrease,
or discontinuance of the amount of deduction in effect. These secondary
authorizations will be processed in the same manner as the original.

30.02 DFB AUTHORIZATIONS, FORMAT AND INITIAL PROCESSING

a\. Authorization for insurance deductions from benefit payments may be
made on **VA** Form 29-888, Insurance Deduction

\~ Authorization, or any written form containing the required data. When
an authorization for deductions is executed by the insured, it should-be
submitted to the **VA** center having jurisdiction of the veteran\'s
insurance account.

30-1

M29-I, Part II May 12, 1980

Change 16

b\. VA Forms 29-888 and informal deduction authorizations received in
the Philadelphia *VA* Center will be coded S/F (status/folder) in the
upper right corner by the Receipt and Dispatch Unit. The coded
authorizations will be sent to the \[DPC\] EAM Keypunch Unit to be used
as source documents for the preparation of RPO requests. After the
requests have been prepared, the authorization will be delivered to the
\[Insurance Files\] Section for association with the requested RPO and
insurance folder before being delivered to the Policy Service Section.

NOTE: All nonmedical applications with VA Forms 29-888 or informal
deduction authorizations attached will be coded Os F and, when
associated with the requested RPO and insurance folder, will also be
sent to the Policy Service Section. All medical applications with VA
Forms 29-888 or informal deduction authorizations attached will be codes
Os F298 A or B and, when associated with the requested RPO and insurance
folder, will be sent to the Medical Determination Unit.

c\. If the RPO request is rejected because no insurance master record
exists, the authorization will be sent to the local Index Unit for
insurance file number verification. Routine processing procedures will
be resumed whenever a new insurance file number is furnished by the
local Index Unit. All authorizations returned by the local Index Unit
without new insurance file numbers are sent to the Analyzer Transfer
Group where insurance file number identification will be requested from
BIRLS (Beneficiary Identification and Records Locator Subsystem). When
the original insurance file number furnished by the insured is confirmed
by either the local Index Unit or BIRLS, the insurance records will be
requested from the St. Paul *VA* center by the Analyzer Transfer Group.

d\. When an acceptable VA Form 29-888, or informal deduction
authorization, with or without a medical-nonmedical application
attached, is received in the St. Paul VA center and the insurance
records are in that office, \[ \] a 90-day 951 policy callup freeze will
be inserted in the master record and all insurance records will be
immediately transferred to the Philadelphia *VA* center. \[The insured
should be advised of the transfer.\] If the insurance records cannot be
located in the St. Paul VA center, the VA Form 29-888 or informal
deduction authorization \[ \] will be sent to the Philadelphia *VA*
center.

30.03 REVIEW OF DFB DEDUCTION AUTHORIZATIONS FOR ACCEPTABILITY

a\. To determine the acceptability, the Policy Service \[Technician\] or
Lay Medical Approver will review the VA Form

29-888 or informal deduction authorization as follows:

\(l\) *Item IA.* Verify name \[and address\] with the insurance records.
\[If a change of address is indicated, prepare *VA* Form 29-5891a,
Address or Trailer Input Delete, as outlined in MP-6, part II,
supplement No. 2.1, section 109.00.\]

\(2\) *\[Item 2.* Enter insurance file number if not shown.\]

\(3\) *\[Item 3.* Verify with claim number on insurance records. If
incorrect or blank, enter correct number. If not shown, obtain claim
number from BIRLS.\]

\(4\) \[Item 4

(\~) Amount shown must be enough to pay the required premiums. If the
item is blank, the authorization will be accepted if the amount shown in
item 6 is sufficient to pay the required premium and/or any loan/lien
amounts indicated.

**(b)** Amount shown is not enough to pay the required premiums, reject
the authorization and file it in the insurance folder and refer the file
to the correspondence clerk for a letter to the insured

\(5\) *\[Item 5.* Verify requested action, change if necessary; insert
if omitted.\]

\(6\) *\[Item 6.* If the insured authorized a premium deduction in the
wrong amount, correct item 6 provided the new total deduction amount
does not exceed the amount shown in item 4. Ignore existing overages and
shortages. Do not add or subtract them from the required monthly premium
amount. Advise the insured of the correct premium deduction amount

*(7) \[Item 7.* Must contain the insured\'s signature.\]

30-2

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

\(8\) *\[Item* 8. The insurance contract must be in force on the date
that the authorization was mailed.\]

b\. If the **VA** Form 29-888 or informal reduction authorization is not
acceptable, draw a red diagonal line across the face of the
authorization and write the reason for disapproval on that line. Send
the disapproval authorization and a partially completed new **VA** Form
29-888, if in order, and the folder to the Correspondence Clerk for
**a** letter to the insured explaining the reason for disapproval.

30.04 PROCESSING OF ACCEPTABLE DFB DEDUCTION AUTHORIZATIONS

**a.** Requested deduction transactions are forwarded to the Hines DPC
(via magnetic tape) and to the Manila regional office and Philadelphia
**VA** center by use of **VA** Form 29-5926, Request for DFB Action, on
or before the 25th day of each month.

**A** cutoff date schedule for the necessary preliminary clerical
processing is prepared by the Philadelphia **VA** center.

b\. The effective date of deduction establishments and increases can be
earlier, but not later, than the accounting month in which the requested
deduction transactions are sent to the Hines DPC, Manila regional office
and the Philadelphia **VA** center. Normally, establishment transactions
will be made effective as of the accounting month during which they are
sent to the reporting offices. The insured will be requested to pay all
missing premiums, if any, which are necessary to place his or her
account on a I-month-in-advance premium-paying basis before the
effective date of the deductions. The usage of retroactive effective
dates for establishment transactions will be restricted to those
accounts which require an unusual adjustment action and for RH accounts.
If the necessary premium payment(s) have not been received prior to the
receipt of the deduction establishment, a lien will be established to
pay the missing premium(s). The procedure and necessary calculations to
be made for retroactive effective date transactions are outlined in
paragraph 30.13.

c\. If the insurance premiums are paid in advance of the current
processing date, the deduction establishment transaction will be made
effective 1 month prior to the next month due. These postdated effective
date deduction transactions are retained in a Hold File which is
maintained by the Philadelphia DPC.

d\. Deduction discontinuance and decrease transactions cannot be made
effective retroactively. The effective date of these transactions will
always be the accounting month in which they are sent to the Hines DPC,
Manila regional office or Philadelphia **VA** center for processing.

e\. \`When it has been determined that the deduction authorization is
acceptable, the following actions will be taken:

\(l\) Complete the **VA** endorsement portion of the **VA** Form 29-888
and file the authorization in the insurance folder.

\(2\) Prepare **VA** Form 29-5926 as outlined in MP-6, part II,
supplement No. 2.1, section 126.00. The payee number, card columns
10-11, and Insurance Office number, card columns 33-36, are preprinted.
The completed **VA** Form 29-5926 is sent immediately to the \[Analysis
and Control\] Section, Philadelphia DPC.

\(3\) Complete **VA** Form 29-5707, Acknowledgment-Request for
Deductions From Benefit Payments, and release to the insured.

**(4)** Prepare **VA** Form 29-8526, Pending Transaction, to insert a
nonfreeze 978 miscellaneous pending transaction diary, callup type 953,
with a 75-day callup date. The following standardized diary messages
will be used:

[Deduction Transaction]{.underline} [Message and Code
Number]{.underline}

Establishment 5926 5 **4**

(Requested Effective date Month #)

Increase 5926 l 2

(Requested Effective date Month #)

30-3

M29-1, Part II May 12, 1980

Change 16

Deduction Transaction **Message** and Code Number

Decrease 5926 2 3

(Requested Effective date Month #)

Discontinuance 5926 3 3

(Requested Effective date Month #)

NOTE: When the requested deduction transaction is received and
processed, a 953 pending **diary** will **be automatically deleted** by
the system.

30.05 CHANGES IN DEDUCTION FROM BENEFIT PAYMENTS

Action to establish, change or discontinue deduction will be initiated
**by** the Philadelphia **VA center, without obtaining a** new
authorization from the insured, under the following conditions:

a\. **Establishment Transactions.** Termination of premium waiver under
38 U.S.C. 712. Deductions will **be reestablished if** premiums were
previously paid by deduction prior to the granting of the 38 U.S.C. 712
waiver. Request **a** retroactive **effective** date, if necessary to
prevent lapse of the insurance.

30A

April 27, 1972 M29-I, Part II

Change 6

b\. Increase and decrease transactions

**(l)** Policy renewed, converted, reduced or changed.

\(2\) Current deduction amount for premium payment incorrect.

\(3\) Policy surrendered, paid-up or matured and one or more policies
remain under premium-paying conditions by deduction.

**(4)** Termination of total disability income provision and basic
insurance premium will continue to be paid by deduction or vice versa.

\(5\) Loan/lien paid in full and basic insurance premium will continue
to be paid by deduction.

c\. Discontinuance transactions

**(l)** Single policy account surrendered for cash or paid-up insurance.

\(2\) Single policy account matures as an endowment.

\(3\) Premiums paid through end of premium-paying period for single
policy account.

**(4)** Loan/lien paid in full and basic insurance premium deduction is
not required.

\(5\) Continuous waiver of premiums granted under 38 U.S.C. 712.

\(6\) Disapproval of underwriting applications.

\(7\) Policy canceled because of a decision of forfeiture or fraud.

\(8\) Insured fails to comply with administrative adjustment
requirements.

NOTE: Under any of the above circumstances, a VA Form 29-5926 will be
system-generated or clerically prepared and the insured will be advised
of the action taken.

30.06 CONTROL AND PROCESSING OF VA FORM 29-5926

a\. Ml system-generated and clerically prepared **VA** Forms 29-5926 are
retained in a Hold File, in double terminal digit claim number order, by
the Philadelphia DPC pending their selection for release to the Hines
DPC, Manila regional office or Philadelphia **VA** center during the
accounting month which coincides with the requested effective date.
**A** cutoff date schedule for the selection of **VA** Forms 29-5926 is
prepared by the Philadelphia **VA** center.

b\. All requests for deduction transactions, other than those for the
Manila regional office and Philadelphia **VA** center, are transmitted
to the Hines DPC via magnetic tape. \[Only one transaction per insured
may be requested in any given month. During the monthly card-to-tape
operation, the system detects and rejects multiple and invalid **VA**
Forms 29-5926. **A** single numeric or alphabetic reason code is punched
into card column 80 of the rejected workcards.\] The codes are

Reject Code Field Involved

l CLAIM NUMBER

2 \[PAYEE\] NUMBER\
3 INSURANCE FILE PREFIX\
**4** INSURANCE FILE NUMBER

30-5

M29-I, Part II April 27,1972

Change 6

Reject Code Field Involved

5 REGIONAL OFFICE NUMBER

6 INVALID ENTRY\
7 INSURANCE OFFICE NUMBER\
8 NAME CODE\
9 ACTION CODE\
A REASON CODE\
B DEDUCTION OR NET CHANGE AMOUNT\
C EFFECTIVE MONTH\
D EFFECTIVE YEAR\
E EFFECTIVE DATE\
F DUPLICATE INSURANCE \[FILE\] OR\
CLAIM NUMBER

\[(Deleted by change 6.)j

c\. These rejected workcards are sent to the EAM Section via the
Input/Output Section where they are used to select the original VA Forms
29-5926 from the main transaction file. \[ 1 The \[ j multiple and
invalid \[rejected workcards\] are then listed separately (original and
three copies) in double terminal digit claim number order. \[They may
then be disposed of in accordance with Records Control Schedule VB-l .1

d\. The Input/Output Section will send the control listings, together
with the multiple and invalid *VA* Forms 29-5926, to the \[ \] Policy
Service Unit for corrective action. The control listings will be used by
a designated Control Clerk to insure the return of the corrected and/or
combined *VA* Forms 29-5926 from the Policy Service Clerks within 5
workdays.

e\. The employee responsible for taking corrective action will request a
record printout and the insurance folder if necessary, in order to
determine the proper action. In all cases, a new **VA** Form 29-5926
will be prepared to correct and/or combine the rejected item(s). If the
insured had previously been advised of the effective date of the
deduction establishment, change, or discontinuance, a corrected status
letter must be released. This is necessary since the corrected and/or
combined transactions cannot be transmitted to the Hines DPC until the
following accounting month. The new *VA* Form 29-5926 will be given to
the designated Control Clerk. The rejected forms cannot be reused and
will be disposed of in accordance with Records Control Schedule VB-1.

**f.** When all of the corrected forms have been received, the Control
Clerk will return one copy of the control listing, together with the new
forms, to the Input/Output Section. These forms will be keypunched and
placed in the Hold File pending the next monthly transmittal to the
Hines DPC.

g\. To reduce the number of system rejects, an EAM sort and selection of
multiple and invalid **VA** Forms 29-5926 will be made in advance of the
card-to-tape operation. This EAM selection will be made in accordance
with a schedule prepared by the Philadelphia *VA* center. The EAM
rejects will be processed in accordance with the procedures in
subparagraph e above. However, the control listing of the EAM rejects,
together with the corrected forms, must be returned to the Input/Output
Section by the date scheduled in order to be included in the current
accounting month transmittal to the Hines DPC. Such actions will
eliminate the need for corresponding with the insured.

h\. *VA* Forms 29-5926, which are sent to the Manila regional office and
the Philadelphia *VA* center for processing, are also edited for
multiple forms and invalid data before they are released to the
respective offices. VA Regional Of face and Insurance Center Circular
29-83-3\
Philadelphia, PA December 16, 1983

[1984 DFB PROCESSING SCHEDULE]{.underline}

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

2\. REFERENCE: M29-1, Part II, Chapter 30, Paragraph 30.06

3\. PURPOSE: To furnish 1984 cut-off dates covering the preparation and
transmission of the monthly magnetic transaction tape to the Hines DPC
and the transmittal of VA Forms 29-5926, \"Request for DFB Action\", to
the Manila Regional Office and the Philadelphia VA Regional Office and
Insurance Center.

4\. PROCEDURE:

a\. The monthly magnetic transaction tape and the VA Forms 29-5926 will
be transmitted (Air Mail) on or before the twenty-ninth day of the
calendar month preceding the accounting month during which the
transactions are to be effected.

b\. Completed VA Forms 29-5926 will be sent to the Input Unit,
Philadelphia DPC, on a daily basis and in\' accordance with the
following cut-off schedule:

VAF 29-5926 KEYPUNCH

ACCOUNTING TO KEYPUNCH AND ADP GENERATED DPC

[MONTH]{.underline} [BY COB]{.underline} [VERIFYING]{.underline} [VAF
29-5926]{.underline} [OPERATIONS]{.underline}

*JAN.* 1984 12-12-83 12-13-83 12-14-83 12-15-83\
FEB. 1984 01-16-84 01-17-84 01-18-84 01-19-84\
MAR. 1984 02-16 02-20 02-21 02-22\
APR. 1984 03-15 03-19 03-20 03-21\
MAY 1984 04-17 04-19 04-20 04-23\
JUNE 1984 05-18 05-22 05-23 05-24\
JULY 1984 06-15 06-19 06-20 06-21\
AUG. 1984 07-18 07-20 07-23 07-24\
SEPT. 1984 08-17 08-21 08-22 08-23\
OCT. 1984 09-18 09-20 09-21 09-24\
NOV. 1984 10-18 10-22 10-23 10-24\
DEC. 1984 11-15 11-19 11-20 11-21

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

**6.** RESCISSION: VAC Circular 29-82-7 is rescinded.

Director

[DISTRIBUTION]{.underline}:

A-I

D-I

E- 1-2-3-5

F-I-3-6-8-12-15-21-22-26-29-33

R-2-5

5-1-2

T-I

April 27, 1972 M29-I, Part ll\
Change 6

i\. Monthly listings of all requested deduction transactions, in double
terminal digit claim number order, which were forwarded to the Hines
DPC, Manila regional office and the Philadelphia *VA* center, are
printed by the Philadelphia DPC. These four-part listings are
distributed to the following operating elements for reference purposes:

Original Technical Staff Insurance Division\
Duplicate \[ J Policy Service Unit, Insurance Division\
Triplicate \[ \] Policy Service Unit Insurance Division\
Quadruplicate Medical Determination Unit, Insurance Division

30.07 REPORTING OF DEDUCTION TRANSACTIONS

a\. Based on a monthly accounting period, all deduction transactions
processed by the Hines DPC will be reported to the Philadelphia DPC on
magnetic tape. Ml deduction transactions, regardless of the type of
action being reported, will be merged on one tape in double terminal
digit claim number order (00 through 99). The deduction transactions
will always be reported under the NSLI V fund (code 1) without regard to
the number and/or actual fund(s) of the policies which the insured may
have. Distribution of funds will be made, based upon the insurance
policy prefix, when the transactions are actually applied to the
insurance account.

b\. The Hines DPC will send the deduction transaction tape, a summary
record printout of the certified run totals and the monthly payment
voucher, SF 1081, Voucher and Schedule of Withdrawals and Credits, to
the Philadelphia **VA** center, Attn: Finance Officer, Finance and Data
Processing Division. The shipment will be made in sufficient time to
arrive on or before the first day of the month following the actual
processing of the deduction transactions against the individual benefit
award accounts.

c\. Deduction transactions processed by the Manila regional office and
the Philadelphia *VA* center are reported on individual **VA** Forms
29-887a, Notice of Action Taken on Deductions From Veterans
Administration Benefit Payment. These forms, along with a *VA* Form
29-5700, Monthly Summary of Deductions From Benefit Payments for
Insurance Purposes, and the monthly payment voucher, SF 1081, will also
be received in the Philadelphia *VA* center on or before the first day
of the month following the month in which the transaction was processed
by the reporting office.

d\. The Subsidiary Ledger Unit, Finance and Data Processing Division,
Philadelphia *VA* center, maintains a control ledger for each of the
reporting offices to record the increases and decreases in the running
deduction balances. The total running deduction amount at the beginning
of the month plus the total of the monthly amounts being reported as new
establishments and resumptions, minus the total monthly amounts of the
deductions being discontinued or suspended, will constitute the new
closing balance. This new closing balance amount plus the total amount
of initial payments, minus the total of the monthly amounts being
reported as new establishments and resumptions, will constitute the
total amount of funds to be transferred on SF 1081. The summary record
printout of the certified run totals or the *VA* Form 29-5700, Monthly
Summary of Deductions From Benefit Payments for Insurance Purposes,
along with the corresponding payment voucher will be verified against
these control ledgers. The appropriate reporting office will be
immediately advised whenever the controlled balances do not agree and/or
the transaction amounts do not crossfoot.

e\. The Hines DPC deduction transaction tape, along with a completed
summary information listing for run 160, will be carried to the
Philadelphia DPC for processing in accordance with a schedule prepared
by the Philadelphia *VA* center. The Philadelphia DPC will immediately
TRAP the deduction transaction tape on five-part paper. The listings
will be distributed as follows:

Original Technical Staff, Insurance Division Duplicate Subsidiary Ledger
Unit, Finance and Data Processing Division

30-7

M29-I, Part II April 27,1972

Change 6

Triplicate \[ 1 Policy Service Unit, Insurance Division Quadruplicate
\[Policy Service Unit, Insurance Division\] Quintuplicate Supervisor,
Miscellaneous Accounts and Service Unit, Insurance Division

f\. These listings will be used by all operating personnel concerned
when it becomes necessary to ascertain the current status **of** an
insurance account which reflects a pending deduction establishment or
change. The transaction could have been reported but not yet processed
against the insurance master record. If the expected deduction
transaction is of record, the pertinent deduction information will be
noted on the record printout and appropriate action, including the
refund of overdeductions, can be taken immediately. If the expected
transaction is not of record, review the transmittal listing to
determine if the required transaction was released to the Hines DPC. If
no evidence of this release is available, prepare another *VA* Form
29-5926 and advise the insured of the delay .in processing the insurance
deduction transaction. Update the 951 freeze and/or 953 miscellaneous
diary by 75 days from the current date.

g\. The *VA* Forms 29-887a received from the Manila regional office and
the Philadelphia *VA* center are used as source documents to keypunch
and verify **VA** Forms 29-5969, Allotment/DFB Output Card-ADP. After
the *VA* Forms 29-5969 have been reviewed for accuracy by the Subsidiary
Ledger Unit, they are sent to the EAM Section, Philadelphia DPC, where
they are merged with the miscellaneous distribution transactions for the
same reporting office and included on the miscellaneous transaction
input tape into run 160. Prior to run 170, deduction transaction rejects
are also included with the miscellaneous transactions for the respective
reporting offices. Runs 160 and 170 for the Hines DPC, Manila regional
office and the Philadelphia **VA** center are made each month regardless
of the number or absence of miscellaneous and/or current deduction
transactions. The processed VA Forms 29-887a are sent for filing in the
insurance folder.

30.08 MECHANICAL PROCESSING OF DFB DEDUCTION TRANSACTIONS A

a\. Deduction Control Record

\(1\) The deduction control tape contains a 135-character record for
each insured who is paying premiums and/or loan/lien repayments **by**
deduction from *VA* benefits. These records are maintained by reporting
office in ascending double terminal digit claim number order (00 through
99).

\(2\) Program runs 160 and 170, which service the deduction control
record, provide for the distribution of deduction moneys to the various
funds, appropriations and general ledger accounts. Records are created
and deleted automatically by deduction establishment and discontinuance
input. Miscellaneous transaction input, VA Form 29-5923, Allotment/DFB
Input Card to Run 160, prepared clerically can also create, delete and
adjust the records on the control tape.

b\. Establishments

\(1\) DFB establishment notices received from the reporting offices are
processed in ADP runs 160 and 170 as follows:

\(a\) Run 160 edits the deduction transactions.

**(b)** Run 170 uses the establishment notices to place the deduction
records on the deduction control tape and to create tape images which
will become input to run 140 to update the master record. Run 170 also
records the initial deduction amount as Total Unapplied and enters the
number of months unapplied (1 if current deduction is involved; a larger
number if the deduction establishment is retroactively established).
When the initial deduction amount is recorded as Total Unapplied, the
money is transferred from V-Undistributed Insurance Collections to
V-Unapplied Collections-Cash Collections, and is retained there until
distribution information is receive d.

30-8

VA Regional Office and Insurance Center Circular 29-83-7\
Philadelphia. PA December 27, 1983

[1984 SCHEDULE FOR UPDATING DEDUCTION ACCOUNTS]{.underline}

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

2\. **REFERENCE:** M29-1, Part II, Chapter 30, Paragraph 30.08.

3\. PURPOSE: To provide the 1984 schedule for updating deduction
accounts and the 1984 schedule for processing VA Forms 29-5923,
\"Allotment/DFB Input Card\".

4\. PROCEDURE:

a\. Attached is the 1984 schedule for updating deduction accounts. Every
effort will be made by the Philadelphia Data Processing Center to adhere
to the dates selected. In addition to equalizing the workflow, this
schedule provides the most practical dates to be used within future
call-up months when diaries are being inserted.

b\. The publication on this updated schedule necessitates the revision
of the schedule for processing VA Forms 29-5923. This revised schedule
is also attached.

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

6\. RESCISSION: VAC Circular 29-82-10 is rescinded as of January 13,
1984.

Attachments Director

[DISTRIBUTION]{.underline}:

A-I

D-1

E- 1-2-3-5

F-1-3-6-8-12-15-21-22-26-29-33

R-2-5

5-1-2

T-1

[1984 SCHEDULE FOR PROCESSING VA FORMS 29-5923]{.underline}

VA FORMS 29-5923 TO

**BE PROCESSED WITH** DELIVER TO CONTROL DELIVER TO KEYPUNCH INSERT IN

[1984 REGISTER FOR]{.underline} [UNIT **BY COB**]{.underline} **[UNIT BY
COB]{.underline}** [FILE **BY COB**]{.underline}

A\* B\*\* A\* B\*\*

January 01120 02103 01123 02106 01127 02110\
February 02117 03102 02121 03105 02124 03109\
March 03123 04106 03126 04109 03130 04113\
April 04120 05104 04123 05107 04127 05111\
May 05/18 06108 05121 06111 05125 06115\
June 06122 07106 06125 07109 06129 07113\
July 07120 08103 07123 08106 07127 08/10\
August 08117 09107 08120 09/10 08124 09/14\
September 09121 10105 09124 10109 09128 10112\
October 10119 11102 10122 11105 10/26 11109\
November 11116 12107 11119 12110 11123 12/14\
December 12121 01104185 12124 01107185 12128 01/11/85

\* Column A includes DFB, Marine Corps, Coast Guard and Army

\*\*column B includes Navy, Air Force and Army Retired

[DEDUCTION ACCOUNTS]{.underline} - [1984 SCHEDULE]{.underline}

ACCOUNTING REGISTER MONTH - DEC JAN. FEB. MAR APR MAY JUNE JULY AUG.
SEPT. OCT. NOV.\
PROCESSING CALENDAR MONTH - JAN. FEB MAR APR MAY JUNE JULY AUG SEPT OCT
NOV DEC\
SERVICE DEPARTMENT\
DFB - HINES 5 2 8 5 3 7 5 2 6 4 1 6\
MARINE CORPS 12 9 15 12 10 14 12 9 13 11 8 13\
COAST GUARD 12 9 15 12 10 14 12 9 13 11 8 13\
ARMY 12 9 15 12 10 14 12 9 13 11 8 13\
ARMY RETIRED 19 16 22 19 17 21 19 16 20 18 15 20\
AIR FORCE 19 16 22 19 17 21 19 16 20 18 15 20\
\`NAVY 26 23 29 26 24 28 26 23 27 25 22 27

April 27,1972 M29-I, PartII\
Change 6

\(2\) When the establishment tape images from run 170 are processed in
run 140, the system either updates the master record or creates a
pending transaction with a transaction type 120 or 129.

\(a\) When run 140 processes the establishment by updating the master
record, it initiates a *VA* Form 29-5923a, DFB/Allotment Distribution
Request ADP, with distribution information. This punched card is used as
input in the next run 170 to effect distribution of the amount held on
the deduction control record as Total Unapplied. It also sets the
distribution pattern for subsequent monthly amounts.

\(b\) When run 140 creates a pending transaction because it cannot
process the establishment, it generates a

*VA* Form 29-5886\[b, Insurance\] Record Printout (RPO), for clerical
action. The **clerical** action includes preparation of **VA** Form
29-5923 to provide distribution information, only in **the** five
categories described under clerical processing of pending DFB deduction
transactions. In all other **cases,** the system will supply
distribution information after the pending transaction \~s processed and
the master record is updated.

\(3\) The distribution punched cards received from run 140 and the
clerically prepared *VA* Forms 29-5923 are processed with the next
month\'s register. At that time, run 170 will:

\(a\) Deduct one monthly amount at a time from the Total Unapplied field
and distribute it in accordance with the distribution information
received.

\(b\) Deduct I month from the No. Mos. Unapplied field, each time it
distributes one monthly amount.

\(c\) If all or part of the distribution amount is for loan and/or lien,
posting media will be generated for each month deducted from the No.
Mos. Unapplied field. This posting media is processed in run 140 to
update the loan/lien segment.

\(d\) When the month field is reduced to zero, but the amount field
still has a balance, the system will transfer the remaining amount only
when it is less than one monthly premium and there is only the *V*
premium fund involved. Otherwise, it will generate a transaction type
114 punchcard distribution for clerical action.

**(4)** When the next month\'s register is processed and run 170 has not
received a distribution card from run 140, a clerically prepared *VA*
Form 29-5923 or a discontinuance notice, the system will:

\(a\) Add one monthly amount to the Total Unapplied field and transfer
that amount from V-Undistributed Insurance Collections to V-Unapplied d
Collections.

\(b\) Add 1 month to the No. Mos. Unapplied field.

\(c\) Generate a transaction type 114 punched card distribution request.
This punched card will be inserted in the next 140 run.

\(5\) When the transaction type 114 punched cards from run 170 are
processed in run 140, the system will take one of the following actions:

\(a\) If the establishment is still pending, it will disregard the
distribution request, or

\(b\) If the pending establishment has been deleted and all edit
requirements are met, it will generate distribution cards for input in
the next 170 run, or

\(c\) If the establishment has been deleted but the system cannot
generate distribution cards, it will generate a reject card (transaction
type 114) and an RPO (reason code 114) for clerical processing.

c\. Discountenances

\(1\) When a discontinuance notice is processed in run 170, the action
by the system depends on whether or

not the Total Unapplied field contains zeros.

3\~9

M29-I, Part II April 27, 1972

Change 6

\(a\) If there are zeros in the Total Unapplied field on the deduction
control record, run 170 will take the following action:

l\. Delete the deduction record from the deduction control tape.

[2]{.underline}. Generate a discontinuance tape image for use as input
to run 140 to update the master record.

[3]{.underline}. Reverse all premium and TDIP amounts if the
discontinuance is retroactive. Where loan or lien is involved, it will
printout on the 170 transaction list, the dollar amounts of the loan or
lien portions to be reversed.

NOTE: When the 170 transaction list is received in the Subsidiary Ledger
Unit, that unit will send a memorandum to \[ \] Policy Service Section,
asking them to reverse the loan and/or lien payments.

**(b)** If there is a balance remaining in the Total Unapplied field on
the deduction control record, run 170 will take the following action:

[l]{.underline}. Set No. Mos. Unapplied field to zero.

[2]{.underline}. Deduct the retroactive amount from the amount held in
the Total Unapplied field if the discontinuance is retroactive.

[3]{.underline}. Generate a distribution request for the amount
remaining in the Total Unapplied field, if any.

[4]{.underline}. Generate a discontinuance punchcard for use as input to
run 140 to update the master record.

S Sign deduction record, so that it will be deleted from the deduction
control tape after the distribution information has been processed.

\(2\) When the discontinuance tape images from run 170 are processed in
run 140, the master record will be updated or a pending transaction will
be created with a transaction type **100** or 109. **A** pending
discontinuance transaction will generate an RPO for clerical action. If
distribution of deduction moneys has not been made, a transaction type
114 distribution request will also-be generated for clerical processing.

d\. Single Deduction Transaction. If a resumption and discontinuance
transaction for the same claim number are processed simultaneously by
the Hines DPC, the full amount of the one-time payment will **be**
reflected in the initial amount field and five zeros will be inserted in
the recurring monthly amount field of the tape image. These transactions
are printed out on the RTL run 160 error list which is forwarded to the
Subsidiary Ledger Unit Finance and Data Processing Division. That unit
will voucher the full payment amount from *V* undistributed to *V*
premium and advise the \[ \] Policy Service Section, by memorandum, of
the action taken. **A** copy of the memorandum is retained as a control,
pending completion of clerical action by the \[ \] Policy Service
Section, as outlined in paragraph 30.09 below.

30.09 CLERICAL PROCESSING OF PENDING DFB DEDUCTION TRANSACTIONS

a\. If the ADP system cannot process an establishment transaction
mechanically, it creates a pending transaction type 120. If only a part
of an establishment transaction is mechanically processed on a
two-policy account, the remaining part is made a pending transaction
type 129.

**b.** When clerically processing a pending establishment transaction,
two determinations must be made:

\(1\) Effective date of deduction

\(a\) When the initial deduction amount is an exact multiple of the
monthly deduction amount, the ADP system will determine the deduction
effective date or effective date how paid and show that month number in
**3\~10**

May 10, 1971 M29-I, Part I\
Change I

the pending transaction. The number of months which the initial
deduction covers will also be shown. When the initial deduction amount
is not exactly divisible by the monthly deduction amount, a current
effective date is shown in the pending transaction, regardless of the
amount of the initial deduction. In the latter case, the effective date
will always correspond to the accounting month in which the
establishment transaction was received. The number of months the initial
deduction covers will always be shown as 01.

\(b\) The effective date how paid entered on the master record must
always be the same as the effective month number shown in the pending
transaction. In addition, the transaction amount entered on the master
record must always be the same as the monthly deduction amount shown in
the pending establishment transaction. The effective date and
transaction amount, when entered on the master record as outlined above,
will be identical to the effective date and transaction amount which was
mechanically inserted on the deduction control record by the system. Any
deviation in the updating of the master record will create a
reconciliation discrepancy.

\(2\) Premiums paid in advance, or month-to-month

\(a\) To determine if the account is paid in advance or on a
month-to-month basis, the following computations will be required:

[l]{.underline}. Use initial deduction amount intended for insurance
premium if the number of months in the pending transaction is 01, or the
monthly deduction amount intended for insurance premium of the number of
months is more than 01. Add or subtract any credit/shortage. Apply total
to determine a new updated next month due with remaining
overage/shortage if any. Overages in excess of \$1 will be refunded
immediately.

[2]{.underline}. Subtract 1 month from the updated next month due to
determine the premium month which premiums are paid through.

[3]{.underline}. Subtract effective date how paid shown in the pending
transaction from the date premiums are paid through. The difference is
the number of months deductions are paid in advance.

\(b\) If the deductions pay premiums 1 month in advance, the next month
due entered on the master record is the month following the effective
date how paid. If the deduction pays the account month-to-month (current
basis), the next month due entry will be the same as the effective date
how paid.

\(c\) Deductions which would pay premiums more than 1 month in advance
will be refunded immediately.

c\. When processing transaction types 120 and 129, the following actions
will be taken:

\(1\) \`Insert prepunched *VA* Form 29-5895a, Pending Transaction Input
Card-ADP, transaction type 098, to delete the pending transaction. No
control accounts are used.

\(2\) **VA** Form 29-8523, Premium/TDIP, transaction type 083, will be
prepared to update premium segment. Use the last day of the month for
effective day \`how paid\'. No control accounts are used. If TDIP is
included, use this OCR document with transaction type 087.

\(3\) **VA** Form 29-8530, Life/Miscellaneous, transaction type 040 or
050, will be prepared to insert or change deduction segment if
necessary.

**(4)** If loan/lien repayment is involved, **VA** Form 29-8525,
Dividend-Loan-Lien, transaction type 025 loan, or 026 lien, will be
prepared to insert or change the monthly repayment amount and deduction
type. The system will automatically post DFB loan/lien repayments in
amounts exceeding \$199.99 provided the repayment amount of \$199.99 is
inserted in the monthly repayment amount field of the loan segment.

\(5\) Prepare *VA* Form 29-5923a, DFB-Allotment Distribution
Request-ADP, to distribute deduction moneys if one of the following
conditions exists:

\(a\) Three-or-more-policy case.

M29-I, Part II May 10,1971

Change 1

**(b)** Amount of monthly deduction does not equal total premium amount
including any loan/lien repayment amount.

\(c\) Multiple loan/lien accounts on one or more policies.

\(d\) Deduction amount for repayment of loan/lien only.

\(e\) Total premium is more than \$999.99.

d\. If the ADP system cannot process a discontinuance transaction
mechanically, it creates a pending transaction type 100. If part of a
discontinuance is processed on a two-policy case, the remaining part is
made a pending transaction type 109.

e\. When processing transaction types 100 and 109, the following actions
will be taken:

\(1\) Insert prepunched *VA* Form 29-5895a, transaction type 098, to
delete pending transaction.

\(2\) *VA* Form 29-8523, transaction type 083, will be prepared to
update the premium segment and 087 if the TDIP segment is to be updated
or 097 if the TDIP segment is to be deleted.

\(3\) VA Form 29-8530, transaction type 090, will be prepared to delete
deduction segment, if necessary.

\(4\) If a loan/lien repayment is involved, *VA* Form 29-8525,
transaction type 025 loan, or 026 lien, will be prepared to delete the
monthly repayment amount and deduction type.

f\. Upon receipt of a memorandum from the Subsidiary Ledger Unit,
Finance and Data Processing Division, concerning a single deduction
payment, the corresponding insurance folder and record printout will be
obtained to determine the proper application of the one-time payment.

\(1\) If the payment is to be applied to pay premiums, prepare *VA* Form
29-8523, transaction type 083, to update the premium segment. Do not
adjust control accounts if the deduction is being applied as *V*
premium. If the deduction payment is being applied as premium in other
than the *V* fund, debit account 34 **(V)** and credit 31 in the correct
fund.

\(2\) If the deduction is for TDIP premium, loan/lien repayment, or a
combination prepare:

\(a\) *VA* Form 29-5895a, transaction type 008, to insert the deduction
payment as a pending transaction. Use pending transaction 211 and debit
control account 32 **(V);** credit 15 or 16, dependent on whether or not
a change of fund is involved.

**(b)** *VA* Form 29-5895a, transaction type 098, to delete pending
transaction immediately; debit 17, using the applicable fund and credit
MTC.

\(c\) *VA* Forms 29-8523 and/or 29-8525 to update applicable segment;
debit MTC and credit the account involved.

\(3\) If the reason for the deduction payment cannot be determined,
prepare *VA* Form 29-5895a, transaction type 008, to insert the
deduction payment as a pending transaction. Use pending transaction type
211, debit 32 **(V)** and credit 15 or 16, dependent on the fund
involved. In the correspondence to the insured, request disposition of
deduction payment.

\(4\) Ml inputs prepared to dispose of the one-time deduction payment
will be forwarded to the Subsidiary Ledger Unit, Finance and Data
Processing Division, along with a copy of their memorandum. After their
controls have been cleared, the input will be inserted.

3\~12

January 15,1973 M29-1, Part fl\
q Change 9

g\. Upon receipt of a memorandum from the Subsidiary Ledger Unit,
Finance and Data Processing Division, requesting the reversal of
loan/lien payments due to the processing of a retroactive
discontinuance, an RPO will be obtained. *VA* Form 29-8525, transaction
type 065 loan or 066 lien, will be prepared to increase the loan/lien
balance. Accountability of the loan/lien reversal amount will be shown
by debiting Cash Collections 02 loan or 06 lien and crediting
Undistributed Insurance Collections (38).

h\. Deductions which pay insurance premiums more than I month in advance
or, for any reason, result in a credit to the account will be refunded
directly to the insured by the Philadelphia *VA* center. However,
deductions received subsequent to the date of death of an insured will
be refunded to the reporting office by *VA* Form 24-706, Notice of
Refund and Refund Work Sheet.

30.10 PROCESSING OF VA FORM 2\~6560, NOTICE OF BENEFIT PAYMENT
TRANSACTIONS

a\. The Hines DPC will automatically discontinue, suspend and resume
suspended insurance deductions as a result of the processing of future
date actions initiated by stored information within the computer or by
input transactions initiated by the regional offices. These insurance
deduction transactions which originate in the Hines DPC, are merged with
the insurance deduction transactions requested by the Philadelphia *VA*
center and are reported on the same monthly insurance deduction
transaction tape.

b\. *VA* Forms 20-6560, reflecting these insurance deduction
transactions generated by the Hines DPC, are sent to the Philadelphia
*VA* center on a twice-daily basis in advance of the official insurance
deduction transaction tape. Upon receipt of these forms, the
Philadelphia *VA* center is responsible for preparing initial notices to
the insured when the automatic action taken by the Hines DPC results in
a discontinuance, suspension or resumption of the insurance deductions.
Processing actions taken by the Hines DPC, which differ from the
insurance deduction transaction requested by the Philadelphia *VA*
center, will also be reported on **VA** Forms 20-6560.

c\. **A** complete explanation of the various codes which appear on the
*VA* Forms 20-6560 is outlined in MP-6, part IV, supplements No. I.I and
6.1. An explanation of the significant items are listed below:

File Number Claim number in straight C-number order.\
Payee No 00 indicating **a** veteran-payee.\
Person Entitled First initial, middle initial and first five letters of\
surname, in that order. If there is no middle initial\
and/or less than five letters in the surname, the\
respective spaces will be blank.

RO No 03 indicating Philadelphia *VA* center.\
Current Net Award Monetary amount of full monthly award.\
Disc. Action Codes **4** Deduction discontinued. 5 Deduction suspended.
7\
Deduction discontinued-death.\
Est. Action Codes 1 Deduction established. 2 Deduction resumed.\
Premium Amounts Discontinue Monthly deduction amount discontinued or
suspended.\
Premium Amounts Establish Monthly deduction amount established or
resumed.\
Premium Amounts Additional Additional monetary amount, if any, included
in initial\
payment for establishment and resumption transactions.\
Reference Numbers Nine-digit insurance file number prefaced with an
alpha\
First digit is file prefix-last eight digits, file number.\
Deduction Amount Monthly deduction amount retained in the Hines DPC\
master record when insurance deductions are suspended.

30-13

M29-1, Part ll January 15,1973

Change 9

MESSAGE

CODE EXPLANATION

635 INSURANCE DED (DISC/SUSP) EOM **(MONTH)** (AMOUNT). This message is
generated when an insurance deduction is discontinued or suspended from
any source other than direct input from the Insurance activity.

636 EFFECT. DATE ( ) DED. REQ. CHANGE TO ( ). This message is generated
when an establishment is requested effective more than 11 months
retroactively or when a request for deduction increase creates an
arrearage which cannot be collected in 6 months. The effective date will
be automatically changed to **a** current date. The Philadelphia **VA**
center will establish necessary liens to validate the deduction.

637 RETROACTIVE (DISC/DECR) CHANGED TO (MO/YR). This message is
generated when a retroactive discontinuance or decrease is erroneously
requested by the Philadelphia **VA** center. The effective date will be
automatically changed to a current date. Philadelphia *VA* center will
refund overdeductions, if any.

639 **CHANGE** OF ADDRESS NOTICE TO PHILADELPHIA. Normally a card notice
(in input format) is produced to notify the Philadelphia **VA** center
when an address change is received by the Hines DPC for a master record
which has an insurance deduction. This message is produced instead of
the card when automatic input cannot **be** generated with certainty and
visual inspection is required.

,\~ 643 INSURANCE **CHANGE** REJECTED-EXCEEDS CURRENT BENEFIT. This
message is generated when a deduction increase is requested and the
current deduction is being paid under special law 04.

647 INSURANCE DEDUCTIONS RESUMED EFFECTIVE (MO/YR). This message is
generated when an insurance deduction is reestablished in the same
amount that was deducted prior to suspension. (MSG CODE 635)

Routing Insurance.

Remarks Code number for regional office having jurisdiction of claims
folder.

d\. **VA** Forms 20-6560 reflecting message code 639-Change of Address
Notice to Philadelphia, will be immediately sent to the Input/Output
Unit, Philadelphia DPC, for editing and preparation of address change
input. *VA* Forms 20-6560 which reflect Disc. Action Code 7-Deduction
Discontinued-Death will be immediately sent to the Records Section,
Administrative Division, for filing in the XC insurance folder. If the
insurance folder does not reflect an XC notation, the *VA* Form 20-6560
will be sent **to** the Analyzer Transfer Group as an initial notice of
death. All other *VA* Forms 206560 will be coded S(F (status/folder) in
the upper right corner by the Receipt and Dispatch Unit personnel and
sent to the Policy Service Section with an RPO and the insurance folder
attached.

e\. The Policy Service Clerk will process the **VA** Forms 20-6560 as
follows:

\(1\) MSG. Code 635\[ \]

\[(a) Disc. Action Code 4-A **VA** Form 29-366, Notice of Action Taken
on Insurance Deduction from Benefit Payments, or a dictated letter will
be prepared advising the insured the deduction from benefit payments has
been discontinued and he should resume direct payment of his insurance
premiums.

30-14

M29-1, **Part II**

Advance Manual Change No. 4-88 April 25, 1988

[Chapter 30]{.underline} - [Deduction From Benefit Payment
Accounts]{.underline}

A. [Change:]{.underline} M29-l, **Part II, Chapter** 30. This change is
issued to\
provide additional procedures for **MSG** Code 635. These\
procedures will be followed when deduction from benefit\
payments **are** temporarily discontinued under action code

4\. A VA Form 20-6560, Notice Of Benefit Payment Transactions, will be
received with **a** current net award

amount of zero. The future net award amount and the effective **date
that** benefit payments will be reestablished will be shown in the
remarks section of the VA Form 20-6560.

B. [Procedures]{.underline}: **Page** 30-14, add the following
subparagraph to **paragraph** 30.l0e (l) **(a):**

If the current net award amount is zero, and **a** future net **award**
amount and the effective date **that** benefit payments will be
reestablished **are** shown in the remarks section

**take** the following action:

A A dictated letter will be **prepared** advising the insured **that**
the deduction from benefit payments has been temporarily discontinued
and will be reestablished. The insured should be informed of the
premium(s) that must be paid by direct payment and of the future
establishment

**date that** premiums will be paid by deduction from benefit payments.
Premium notices should be provided through the month of establishment,
so **that** premiums can be paid on **a** month in advance basis when
the deduction is reestablished.

If the benefit payments will be reestablished within six months from the
current processing date, a DFB Processing Screen will be immediately
built to reestablish the deduction from benefit payments. If benefit
payments will be reestablished more **than** six months from the

current date, **a** frozen 978/970 diary will be inserted. The diary
message will read \"REESTABLISH DFB\". When the

diary call-up date is reached, (the diary call-up date should be six
months before the date benefit payments will be reestablished) **a** DFB
Processing Screen should be built to reestablish the deduction and the
1\'REESTABLISH DFB\" diary should be deleted.

C. New or Revised

[Insurance Forms]{.underline}: None

2\.

M29-l, Part II

Advance Manual Change No. 4-88 April 25, 1988

K00NS

**Assistant** Director for Insurance

[Distribution]{.underline}

335/29 92\
310/290 51\
310/291 l\
310/292 142\
310/295 67\
310/Library l\
C0/3llD 2

Total 356

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

**(b)** Susp. Action Code **5-\[VA** Forms 20-6560 reflecting Action
code 5 will be stamped Ready For File and forwarded for filing in the
Insurance folder. When the discontinuance is received, the system will
generate a frozen pending diary transaction type 978 with a 130 day
callup. The message will read 953DFB *Suspend\]* When the callup date of
the 953 diary has been reached because the deduction has not been
resumed, the Policy Service Clerk will release a teletype to the
regional office of jurisdiction. For the purpose of uniformity, the
following format for the release of the teletype will be used:

The insured\'s name, insurance file number, social security and claim
numbers.

INS DED SUSP (DATE). PLS ADVISE REASON SUSP AND WHEN DED WILL BE
RESUMED.

Upon receipt of the reply from the regional office stating that the
compensation is still suspended, the Policy Service Clerk will advance
the 953 diary date to 90 days from the current date. At the end of the
90-day diary period, the clerk will contact the regional office by
teletype as provided above. If the teletype reply indicates that the
deduction will not be resumed, a noninterest-bearing lien will be
established for all premiums due through the current month. The insure d
will be notified of the lien and that he must resume payment of premiums
direct.

NOTE: Whenever the jurisdiction of the paying office is transferred to
or from the Manila regional office, the receiving office will initiate
action to automatically resume insurance deductions. In such cases, the
advance suspension notice will clearly reflect the transfer of the
office of jurisdiction.

\(2\) MSG. Codes 636 and 637-The status of the insurance account and the
insurance deduction will govern the adjustment or processing action to
be taken. In some cases, the establishment of liens will b required to
collect missing insurance premiums when a requested retroactive increase
or establishment was made effective as of a current date. Use regular
adjustment and/or operating procedures when processing these cads. When,
by reason of delay or an act of omission or commission by the *VA,* we
have jeopardized the insurance protection, a brief will be prepared for
an administrative adjustment. Note the action taken on *VA* Form 20-6560
and file the form in the insurance folder.

\(3\) MSG. Code 639-Change of address notice to Philadelphia. Action
will be taken to determine the competency status of the insured when the
change of address reflects fiduciary, custodian or guardian.

**(4) MSG.** Code 643-Release a teletype to the regional office of
jurisdiction requesting that the special law 04 deduction amount be
increased to the required amount. Upon receipt of reply, a *VA* Form
29-5926 will be prepared.

\(5\) MSG. Code 647 Est. Action Code 2-Prepare *VA* Form 29-366.
Determine the effective date of the resumed deduction based upon the
initial payment amount shown on the *VA* Form 20-6560. If, based upon
the next month due reflected on the RPO, the deductions will pay
premiums more than l month in advance, downdate the account, compute the
credit and refund it immediately. Note the action taken on *VA* Form
20-6560 and file the form in the insurance folder.

30.11 PROCESSING OF VA FORM 20-8271, NOTICE OF EXCEPTION-CP&E INPUT
TRANSACTION

a\. The Hines DPC program logic reviews the input data fields of all
insurance deduction transactions requested by the Philadelphia *VA*
center to determine if they are valid and fall within the designated
ranges. Errors which invalidate the requested deduction transactions are
printed out on VA Forms 20-8271 which are forwarded to the Philadelphia
*VA* center for corrective action.

**b.** *VA* Forms 20-8271 received in the Philadelphia *VA* center will
be coded S/F (status/folder) in the upper right corner **by** the
Receipt and Dispatch Unit personnel and sent to the Policy Service
Section with the RPO and insurance folder attached. **VA** Forms
2()\~827l which do not reflect the insurance file number when received,
will be first sent to the Policy Service Unit for insurance file number
identification before normal processing is resumed. The necessary
insurance file number will be obtained from the monthly listing of
requested deduction transactions which was furnished as outlined in
paragraph 30.06.

30-15

April 27,1972 M29-I ,Part II

Change 6

MSG.CODE EXPLANATION

562E CANNOT PROCESS - INSUFFICIENT SOURCE. **A** request to establish or
increase deductions was rejected since there is insufficient net pay
available to process request. If the rejected transaction was an
establishment, advise insured that premiums must be paid direct. Delete
951 freeze and/or 953 miscellaneous diary. If the rejected transaction
was an increase, the old deduction amount will be continued **by** the
Hines DPC. On single-policy accounts, prepare *VA* Form 29-5926 to
discontinue existing deduction. Update 951 freeze and/or 953
miscellaneous diary 75 days from the current date. Advise insured of
status and request payment of future premiums by direct remittance. On
multiple-policy accounts, prepare *VA* Form 29-5926 to reduce existing
deductions to cover premium on remaining accounts. Update 951 freeze for
the policy concerned 75 days from the current date. Advise insured of
current status and request payment of future premiums on subject account
by direct remittance. Note action taken on the *VA* Form 20-8271 and
file the form in the insurance folder.

565 DETAIL NAME DOES NOT MATCH MASTER. If name code is completely
different, verify claim number and name with available insurance
records. If a discrepancy is found, prepare corrected **VA** Form
29-5926. If claim number and name agree, verify with local and/or
Central Office Index and prepare corrected **VA** Form 29-5926. If
obvious misspelling of name code between records or space separating
prefix from balance of last name is detected, prepare *VA* Form 29-5926
showing name code as it appears on Hines DPC master record. Update 951
freeze and/or 953 miscellaneous diary 75 days from the current date.
Advise insured of the delay in processing the insurance deduction
transaction. Note action taken on *VA* Form 20-8271 and file the form in
the insurance folder.

30-16a

M29-1, Part II September 13, 1976

Change 13

c\. **A** complete explanation of the various codes which appear on the
*VA* Form 20-8271 is outlined in MP-6, part IV, supplement No. 6.1. An
explanation of the significant message codes and of the action to be
taken by the Philadelphia *VA* center is outlined below:

MSG.CODE EXPLANATION

502 INVALID FILE NUMBER. The requested insurance deduction transaction
contained\
a claim number in excess of 30 million or one of the characters was
nonnumeric. Verify\
the claim number and prepare corrected **VA** Form 29-5926. Advise
insured of the\
delay in processing the insurance deduction transaction. Note action
taken on **VA\
**Form 20-8271 and file the form in the insurance folder. Update 953
miscellaneous\
diary 75 days from the current date.

545 NO MASTER RECORD IN FILE. Verify claim number. If discrepancy
exists, prepare\
corrected **VA** Form 29-5926. Advise insured of the delay in processing
the insurance\
deduction transaction. If no claim number discrepancy exists, notify
insured that the\
deduction cannot be established since the paying office has no record of
benefit\
payments under the claim number submitted. Premiums must be paid direct.
Delete\
the 951 freeze and/or 953 miscellaneous diary. Note action taken on
**VA** Form\
20-8271 and file the form in the insurance folder.

NOTE: If the deduction establishment was requested for RH lnsurance and
no claim number discrepancy exists, prepare another VA Form 29-5926. In
addition, release a teletype to the regional office of jurisdiction
requesting **if** and when an award master will be established at the
Hines DIC\'. If an award master will not be established, advise the
insured that premiums must be paid by direct remittance.

562B NO APPROPRIATE DEDUCTION-BALANCE SEG. A request to increase,
decrease \_\_\_\
or discontinue deductions was rejected since the Hines DPC master record
did not\
contain an insurance deduction segment. If the transaction request
should have been\
an establishment, prepare corrected **VA** Form 29-5926. Advise the
insured of the\
delay in processing the insurance deduction transaction. Update 951
freeze and/or 953\
miscellaneous diary 95 days from the current date. Note action taken on
the *VA* Form\
20-8271 and file the form in the insurance folder. If the rejected
transaction was a\
duplication of a prior request which was previously processed by the
Hines DPC, no\
further action is required and the *VA* Form 20-8271 can be disposed of
in accordance\
with Records Control Schedule VB-1, part l Delete 951 freeze and/or 953
miscellaneous\
diary lf any.

562C NEW DEDUCTION AMOUNT EQUALS EXISTING DEDUCTIONS. **A** request to\
establish deductions was rejected since a deduction in the same amount
was previously\
established. If the transaction request should have been an increase,
decrease or\
discontinuance, prepare a corrected VA Form 29-5926. Update 951 freeze
and/or 953\
miscellaneous diary 75 days from the current date. Advise the insured of
the delay in\
processing the insurance deduction transaction. Note action taken on
*VA* Form\
20-8271 and file form in the insurance folder. If the rejected
transaction was a\
duplication of a prior request which was previously processed **by** the
Hines DPC, no\
further action is required and the *VA* Form 2\~8271 can **be** disposed
of in accordance\
with Records Control Schedule VB-1, part I.

562D DEDUCTION IMPROPER-M/R SUSPENDED. Advise insured that deductions
can\
not be established since the benefit payments are in suspended status.
Premiums must\
be paid direct. When payment of benefit award is resumed, the insured
can again\
authorize deductions. Delete 951 freeze and/or 953 miscellaneous diary.
Note action\
taken on *VA* Form 20-8271 and file the form in the insurance folder.

3\~\~6

May 10,1971 M29-1, Part II\
Change 1\
MSG. CODE EXPLANATION

566 DETAIL CANNOT BE PROCESSED AGAINST M/R. The insurance deduction
transaction request was rejected since the Manila regional office has
jurisdiction of the benefit payment award. Prepare corrected *VA* Form
29-5926. Advise the insured of the delay in processing the insurance
deduction transaction. Update 951 freeze and/or 953 miscellaneous diary
75 days from current date. Note action taken on the *VA* Form 20-8271
and file the form in the insurance folder.

30.12 REQUESTING DFB DEDUCTION INFORMATION

a\. The status of DFB deductions which cannot be determined after a
review of the insurance folder and the Hines DPC deduction transaction
tape listings, as provided in paragraph 30.07 above, can be obtained
from the run 730a listings of the deduction control records. These
quarterly listings are maintained **by** the Subsidiary Ledger Unit,
Finance and Data Processing Division.

**b. A** current RPO will be used to secure missing and/or confirm
questionable deduction information from the Subsidiary Ledger Unit. The
Deduction Policy Service Clerk will make the following entries, in red,
on the RPO:

\(I\) In the upper right corner, in the reason code area, insert the
routing instructions.

\(a\) Subsidiary Ledger Unit-(241B).

**(b)** Originating unit and symbol.

\(2\) Underline the reporting office code and claim number. Obtain this
information from the insurance folder and insert it in the corresponding
fields of the RPO if it is not already of record.

\(3\) In the upper portion of the pending transaction area of the RPO,
insert the transaction type(s), effective date(s) and deduction
amount(s) of the deduction transaction(s) which appear to be missing or
must be confirmed. If the insured has more than one policy, staple all
RPO\'s together and make the necessary entries on the top RPO. The
originator will initial and insert the current date immediately below
these entries before forwarding the forms to the Subsidiary Ledger Unit.

**(4)** The insurance folder will be retained **by** the originator.
**A** control slip indicating that the forms were forwarded to the
Subsidiary Ledger Unit for current deduction information will be
attached. **A** callup date for followup action, not to exceed 3
workdays, will also be noted on the control slip.

c\. The Subsidiary Ledger Unit will insert the current deduction
information, as reflected on the latest run 730a deduction control
listing and all subsequent accounting registers, if any, in the lower
portion of the pending transaction area of the RPO. The processing day
number on which the missing and/or corrective deduction transaction(s)
was or will be inserted on the master record will also be shown. If the
deduction transaction(s) was inserted under a different insurance file
number, the incorrect number will also be noted adjacent to the
confirming entries. After the entries have been initialed and currently
dated, the RPO will be returned to the originating element indicated by
the routing code in the reason code area.

d\. When the RPO is returned, the originator will take the following
action:

\(I\) If the missing and/or corrective deduction transaction(s) was
previously inserted under the correct

insurance file number, obtain history back to the processing day number
indicated and adjust the account.

\(2\) If the missing and/or corrective deduction transaction(s) will be
inserted subsequent to the current date, delay adjustment action pending
receipt of an RPO which will reflect the updating of the master record,
or the insertion of the corresponding pending transaction(s).

30-18M29-1, Part II September 30, 1977

Change 14

\(c\) Distribute the deduction amount by entering amount(s) and fund in
card columns 47 through 73. All other necessary information for
preparing distribution input is prepunched into the card.

\(d\) Use of **VA** Form 29-5923a is limited to distribution under
transaction types 131 and 151 within the same **fund.** When
distribution cannot be accomplished using *VA* Form 29-5923a,
preparation of *VA* Form 29-5923 will be necessary.

\(2\) Code 115 in name code field of **VA** Form 29-5923a.

**(a)** Code 115 indicates the claim number, paying office or effective
date fields in the deduction control

record do not agree with like information in the master record.

**(b)** Distribution of **the** deduction amount on *VA* Form 29-5923a
will not be made. Insurance records will be reviewed to determine
discrepancy field(s) and input prepared to correct the master record or
deduction control record.

3\~17

September 30, 1977 M29-1, Part ll\
Change 14

\(2\) If **the** amount of arrearage **to be** collected is greater than
the remaining amount of the monthly benefit payment, collection of **the
arrearage** will be made over **a** period of months not to exceed 6.
Insurance deductions will be reported **in an amount greater than** the
requested monthly amount so that **a** portion of the arrearage is paid
each month. When the arrearage is liquidated or the remaining amount is
less than the monthly net award payment, the deduction will **be**
discontinued and **a** new deduction amount will be established to
conform with the original requested monthly amount. Any remaining
arrearage will be included in the initial deduction amount of the new
establishment. This action is automatically taken by the reporting
office without notification from the Philadelphia *VA* center.

\(3\) When an insurance deduction is established in an amount greater
than the monthly amount requested in order to liquidate **an**
arrearage, the input transaction into run 140 will create a pending
transaction (type 120). The establishment input is made pending because
the recurring amount does not agree with the total insurance premium.
These pending transactions will not be clerically processed or deleted
until the discontinuance and new establishment also appear as pending
items. This is necessary since it is not possible to show a true status
of payment in the master record for this type of deduction transaction.

30.14 CLERICAL PROCESSING OF REQUESTS FOR DISTRIBUTION-TRANSACTION TYPE
114

a\. Requests for distribution-transaction type 114 from run 170, will be
rejected in run 140 under the following conditions:

\(1\) Three-or-more-policy case.

\(2\) Amount of monthly deduction does not equal the total premium
amount, including loan/lien repayment amount.

• (3) Multiple loan or lien accounts on one or more policies.\
**(4) Total** premium is more than \$999.99.\
(5) Monthly deduction amount previously distributed but odd amount
remains in **Total** Unapplied.\
*(6)* How paid code not 3 or 6 on life and/or TDIP.\
(7) Monthly repayment amount and/or deduction type incorrect or not
shown in loan/lien segment.

\(8\) Claim number, reporting office and/or effective date fields on
master record do not match like fields on distribution request.

\(9\) No deduction segment on master record.

**b.** The transaction type **114** reject card will be mechanically
reproduced into *VA* Form 29-5923a, DFB Allotment Distribution
Request-ADP. The Input/Output Unit will associate the *VA* Form 29-5923a
with the RPO showing reason code **114** and forward the forms to the
Policy Service Section.

c\. The code 114 or 115 interpreted in the name code field will govern
the clerical processing of **VA** Form 29-5923a as follows:

\(1\) Code **114** in name code field.

**(a) Review** RPO and other insurance records to determine proper
distribution of deduction amount shown on **the** form.

**(b)** The 3 or 5 code in the Code for Distribution block, interpreted
on the form, indicates distribution to be made under transaction type
131 or 151, respectively. Also, the 3 or 5 code indicates either the
Monthly Deduction **Amount** or Total Unapplied Amount should be
distributed.

30-19

M29-I, Part II May 10,1971

Change 1

\(3\) If the RPO is returned as a No Record item, or confirms the
deduction information previously recorded on the master record, **VA**
Form 29-5926 will be prepared to establish, discontinue, increase or
decrease the deduction as required.

\(4\) If the missing and/or corrective deduction transaction(s) was
previously inserted under a different insurance file number, check for
unassociated transaction(s) in the Miscellaneous Accounts and Service
Unit. If the unassociated transaction(s) cannot be located, request an
RPO under the incorrect insurance file number to determine if the
missing and/or corrective deduction transaction(s) was associated with
the wrong account. If so, adjust both accounts accordingly.

30.13 REQUESTING RETROACTIVE DFB DEDUCTION EFFECTIVE DATES

a\. If the insurance may be jeopardized due to a processing delay or an
act of omission or commission by the *VA,* deductions can be established
retroactively. These retroactive effective date transactions will be
processed **by** the reporting office provided:

\(l\) The retroactive effective date requested is within 11 months of
the current processing date, and

\(2\) The arrearage (sum of premiums past due) can be deducted from
benefit payments within a 6-month period.

b\. If the deduction should be established retroactively, calculate the
amount of arrearage to determine whether or not it can be collected
within 6 months.

\(l\) Calculation of arrearage\
(a) Month number in which first deduction will be made 614 (Feb. 1970)\
Minus month number in which deduction should have been established 610
(Oct. 1969)\
Equals number of premiums in arrears 4\
**(b)** Monthly premium x number of premiums in arrears (\$l0.20 x 4)
\$40.80\
(c) Monthly compensation amount \$23.00\
Minus monthly premium amount \$10.20\
Equals monthly amount available to pay arrearage \$12.80

\(d\) Monthly amount available for payment of arrearage (\$12 .80x6)

equals total arrearage which could be collected in 6 months \$76.80\
(2) Using results of calculation

\(a\) If the result of calculation in subparagraph (l)(d) above, is
equal to or greater than the result of calculation in subparagraph
(I)(b) above, request a retroactive effective date when preparing *VA*
Form 29-5926.

**(b)** If the result of calculation in subparagraph (l)(d) above, is
less than the result of the calculation in subparagraph (l)(b) above,
request a current effective date when preparing *VA* Form 29-5926 and
establish a lien on the insurance account for the full arrearage amount.

c\. The collection and reporting of retroactive deduction establishments
by the reporting offices fall into two general categories as follows:

\(I\) If the full amount of arrearage can be deducted from one monthly
benefit payment, the requested monthly deduction is established with a
current effective date and the full arrearage amount is included in the
initial deduction.

30.15 PROCESSING CHANGE OF ADDRESS NOTICES RECEIVED FROM THE HINES DPC

**a.** When a change of address is processed on a Hines DPC award master
record which contains an insurance deduction segment, a punched card is
generated and sent to the Philadelphia *VA* center for insertion of the
new address into the insurance master record. These address changes are
sent directly to the EAM (Electric Accounting Machine) Section,
Philadelphia DPC, for the gang-punching of a batch number and insertion
into the system.

**b.** Foreign address ZIP codes used by the Hines DPC are not
compatible with the foreign address ZIP codes used **by** the
Philadelphia *VA* center. These address changes are rejected by the
computer system. Upon receipt of

these rejects, the address will be reinserted with the correct foreign
code as set forth in MP-6, part II, supplement A No. 1.4.

c\. *VA* Forms 20-6560, MSG Code 639 **for** changes of address, will be
received in place of punched cards on the following categories:

\(l\) Five lines of address.

\(2\) Fiduciary, custodian or guardianship cases.

\(3\) Addresses where the insurance mail code cannot be determined.

\(4\) Unremarried widows.

**d.** *VA* Forms 20-6560 reflecting a change of address are forwarded
to the Input/Output Section, Philadelphia DPC for editing and
preparation **of** address change input media. **VA** Forms 20-6560
which reflect a fiduciary, custodian, or guardian will be forwarded to
the \[Insurance Claims Section (297) for change of address and
development of possible waiver of premium.\] Addresses which reflect a
bank address and/or bank \[ \] number will not be inserted into the
insurance master record. *VA* Forms 20-6560 which reflect \[a bank
address and/or bank number will be forwarded to the Chief, Insurance
Operations Division for development\] and disposal in accordance with
Records Control Schedule VB-l, part I.

\[e. When the records are maintained in one of the Pilot/Target
Stations, address information should be obtained from the CRT (Cathode
Ray Tube).

f\. In priority situations, when the records are not in a Pilot/Target
Station, a telegraphic message will be used to obtain the address.\]

30-20

September 30, 1977 M29-1, Part II\
Change 14\
30.16 COLLECTION OF FINANCE INDEBTEDNESS

a\. The Hines DPC will establish an account receivable whenever a CP&E
overpayment is detected. Deductions for insurance premiums will not be
discontinued **by** the Hines DPC in order to liquidate an account
receivable. However, a finance indebtedness charge may be established
against the insurance account to assist in the liquidation of such an
indebtedness.

30-20a

January 15, 1973 M29-1, Part II\
Change 9

**b.** Finance indebtedness charges are reported on *VA* Forms 294878,
Deduction Authorization Card- Finance, which are sent, along with
control listings, to the Philadelphia *VA* center on a quarterly
calendar basis by the individual regional offices. Upon receipt, these
forms and the control listings are delivered to the Miscellaneous
Accounts and Service Unit. Initially, these forms are used to reproduce
*VA* Forms 29-5896a which inserts the Other Indebtedness bit in the
master records. Thereafter, they are maintained **by** the Miscellaneous
Accounts and Service Unit.

c\. Cash dividends will not be automatically paid **by** the system when
the insurance master record reflects an Other Indebtedness. Instead, the
full amount of the dividend will be inserted as a pending disbursement
transaction and an RPO, reason code 602, will be generated for clerical
analysis by the Deduction Policy Service Section.

d\. Upon receipt of an RPO, reason code 602, information regarding the
indebtedness amount, claim number, regional office of origin and the
proper appropriation code will be requested from the Miscellaneous
Accounts and Service Unit. Upon receipt of the requested data, a *VA*
Form 24-706 will be prepared to refund all or part of the dividend
amount, as appropriate, to the regional office of origin. Dividend
amounts in excess of the total indebtedness charge will be refunded to
the insured. The insured will be advised as to the disposition of the
dividend.

e\. After the *VA* Forms 24-706 have been processed through the Finance
and Data Processing Division, the Miscellaneous Accounts and Service
Unit will post the dividend amount to the *VA* Forms 294878. The
outstanding indebtedness charge will be reduced accordingly. When the
indebtedness has been completely liquidated, a *VA* Form 29-5896a, Life
Input Card, will be prepared to remove the Other Indebtedness bit from
the master record. The closed out *VA* Form 29-4878 will be filed in the
insurance folder.

\[30.17 DFB OF \$200 OR MORE AS LOAN REPAYMENTS

a\. On single policy cases the computer system will automatically post
DFB loan repayments in amounts exceeding \$199.99 if the amount \$199.99
is entered in the Monthly Repayment Amount block in the Loan Segment of
the Master Record.

**b.** When an RPO, reason code 303, is received showing a pending
transaction type 301, DFB LOAN REPAYMENT, in an amount exceeding
\$199.99 and it is a single policy case, the following action will be
taken.

\(I\) The RPO will be used as input to delete the pending transaction
and to post the DFB payment to the loan.

\(2\) **A VA** Form 29-8525, Dividend loan lien, transaction type 025,
will be prepared as input to enter \$199.99 in the Monthly Repayment
Amount block in the loan segment of the master record.

\(3\) The computer system will post the next DFB payment automatically.

c\. DFB loan repayments in amounts exceeding \$199.99 on multiple policy
cases must be clerically processed.\]

3O\~21

g