**CHAPTER 30. TRIENNIAL VERIFICATION PROGRAM**

**CONTENTS**

PARAGRAPH PAGE

**SUBCHAPTER I. DISTRIBUTION**

30.01 General Information 30-I-1

30.02 Mailing Out VA Form 21-509 30-I-1

30.03 Controls for Return of VA Form 21-509 30-I-1

**SUBCHAPTER II. PROCESSING**

30.04 Review of VA Form 21-509 30-II-1

30.05 Potential Aid and Attendance Entitlement 30-II-1

30.06 VA Form 21-509 Shows Parent No Longer Dependent 30-II-1

30.07 Parent Still Dependent 30-II-2

30.08 VA Form 21-509 Not Returned by Beneficiary 30-II-3

**ADDENDUMS**

A Triennial Cover Letter Death Compensation Cases VA Form 21-8989 30-A-1

B Triennial Cover Letter Disability Compensation Cases VA Form 21-8991
30-A-2

C Triennial Due Process Letter Death Cases VA Form 21-8990 30-A-3

**CHAPTER 30. TRIENNIAL VERIFICATION PROGRAM**

**SUBCHAPTER I. DISTRIBUTION**

**30.01 GENERAL INFORMATION**

a\. Triennial Eligibility Verification involves parents in receipt of
death compensation and veterans in receipt of disability compensation
who receive additional benefits for parents. In either case, the issue
is whether or not the parent is still dependent under 38 CFR 3.250. See
paragraph 13.09.

b\. Verification of parental dependency is done every 3 years. The years
1984, 1987, 1990, etc., are triennial years. Each parent in receipt of
death compensation and each disabled veteran receiving benefits for a
dependent parent is required to complete VA Form 21-509, Statement of
Dependency of Parent(s), during a triennial year.

c\. If the VA Form 21-509 is properly completed and signed and the
evidence shows the parent is still \"dependent\" under 38 CFR 3.250,
clear the control. The case will not be subject to periodic review for
another 3 years. File the VA Form 21-509 in the veteran\'s claims folder
or XC-folder, as appropriate.

**30.02 MAILING OUT VA FORM 21-509**

a\. **Special Handling Not Required.** If special handling is not
required, VA Forms 21-509 are mailed to the beneficiary by Hines BDC on
or about August 1 of each triennial year. VA Forms 21-509 in death
compensation cases are transmitted with VA Form 21-8989, Triennial Cover
Letter-Death. VA Forms 21-509 in disability compensation cases are
transmitted with VA Form 21-8991, Triennial Cover Letter-Live. The texts
of VA Form 21-8989 and VA Form 21-8991 are shown in addendums A and B.

b\. **Special Handling Required.** If special handling is required, the
regional office of jurisdiction receives a copy of the VA Form 21-8989
(death cases) and VA Form 21-8991 (live cases) with the special handling
category coded at the top of the form. The following cases require
special handling:

\(1\) **Suspended Cases.** Pull the file and determine why the account
is in suspense. If it appears verification of dependency is required,
send the veteran or parent a VA Form 21-509 with VA Form 21-8989, VA
Form 21-8991 or other appropriate cover letter.

\(2\) **Incorrect Address.** If the system identifies an incorrect
address in the master record, the account is selected for special
handling. Send VA Form 21-509 with VA Form 21-8989, VA Form 21-8991 or
other appropriate cover letter to the most recent address of record.

\(3\) **Philippine Cases.** Triennial cover letters for Philippine cases
are sent to the Manila regional office from Hines BDC. The Manila RO
will attach VA Form 21-509 and mail the cover letter to the beneficiary.

\(4\) **Consolidated Payment Cases.** VA Form 21-509 and the cover
letter are mailed to the responsible institutional payee by the Veterans
Services Division.

\(5\) **Awards Scheduled to Terminate on or Before January 1st.** If the
award is scheduled for termination on or before January 1 of the next
year, pull the file and determine if termination is in order. If it is,
do not mail the VA Form 21-509.

**30.03 CONTROLS FOR RETURN OF VA FORM 21-509**

a\. A master record diary is established under diary reason code 46 when
the triennial cover letters and VA Forms 21-509 are mailed to
beneficiaries around the first of August.

b\. The code 46 diary is established for both live and death triennial
cases.

c\. The code 46 diary matures during EOM December processing if it is
not cleared earlier by the processing of a transaction 45 or 13Q. See
paragraph 30.08.

d\. A 46 diary is set for Philippine cases at the time the cover letters
are sent to the Manila RO around the first of August.

**SUBCHAPTER II. PROCESSING**

**30.04 REVIEW OF VA FORM 21-509**

If the VA Form 21-509 is returned by the payee, review the form for
completeness and proper signature. All blocks on the form which pertain
to a particular beneficiary should contain some positive entry. If a
block is blank, **DO NOT** assume \"none\" or \"N/A.\" If the form is
incomplete or not properly signed, return it to the payee. In disability
compensation cases, VA Form 21-509 must be signed by the veteran.

**30.05 POTENTIAL AID AND ATTENDANCE ENTITLEMENT**

a\. An additional \$79 in death compensation may be payable if the
parent is a patient in a nursing home or is so disabled as to require
the regular aid and attendance (A&A) of another person. Adjudicators
must be alert to indications of potential A&A entitlement and develop as
appropriate.

**NOTE:** No additional benefit is payable to a live veteran whose
dependent parent is in need of A&A.

b\. If the VA Form 21-509 indicates the parent may be eligible for A&A
but such benefit is not specifically claimed, advise the parent of the
availability of the benefit and of the evidence needed to establish
entitlement.

c\. Do not establish a pending issue control unless the parent
specifically indicated a desire to apply for A&A benefits. However, if
the parent did specifically claim A&A, develop under a separate end
product 120.

d\. If entitlement to A&A is ultimately established, use the date of
receipt of the VA Form 21-509 as the date of receipt of claim for
effective date purposes (regardless of whether or not the parent
specifically claimed A&A on the VA Form 21-509).

**30.06 VA FORM 21-509 SHOWS PARENT NO LONGER DEPENDENT**

a\. **Dependency Determinations.** Title 38 CFR 3.250 is the standard
for determining if a parent continues to be \"dependent.\" See paragraph
13.09.

b\. **Administrative Decision Required.** After review of VA Form 21-509
and any additional development, if it appears the parent is no longer
dependent, prepare an administrative decision under paragraph 11.30 for
approval by an authorizer. If the decision is based on excessive net
worth of the parent, prepare the administrative decision on VA Form
21-5427, Corpus of Estate Determination. The administrative decision
must show the date dependency of the parent ceased to exist.

c\. **Predetermination Notice.** Before reducing or terminating an award
because dependency of a parent has ceased, send the beneficiary a
locally generated letter advising the beneficiary of the proposed action
and the date the reduction or termination will be effective. Establish a
60-day control.

d\. **Effective Date of Termination.** Reductions or terminations
because dependency of a parent has ceased are effective the end of the
year during which dependency ceased under 38 CFR 3.660(a)(2). In some
instances this may result in a retroactive adjustment.

e\. **Award Action**

\(1\) Terminate death compensation awards and reduce disability
compensation awards to the rate payable without the additional benefit
for the parent or parents if dependency is determined to have ceased.

\(2\) Use reason code 56 on the termination or reduction line.

\(3\) Before making an award, check the M12 Screen for a code 46 diary.
If a code 46 diary is still in the system, cancel it.

\(4\) Use end product code 130 for adjustments required because a parent
is no longer dependent.

**EXAMPLE:** A parent in receipt of death compensation returns VA Form
21-509 during November of 1990. The VA Form 21-509 shows the parent is
in receipt of a substantial retirement benefit which was not reported on
the VA Form 21-509 returned during October 1987. Further development
reveals the parent started receiving the retirement benefit in April of
1989. If it is determined dependency ceased during April of 1989 due to
the additional income, stop the award effective January 1, 1990.

f\. **Potential DIC Eligibility**

\(1\) If it is determined a parent in receipt of death compensation is
no longer dependent, consider if the parent might be eligible for DIC
and develop, if appropriate.

\(2\) Note that under 38 CFR 3.261(c) net worth is not a factor for a
DIC parent.

\(3\) If a parent who was in receipt of death compensation is determined
to be entitled to DIC, the effective date of the DIC award is the date
of receipt of an election under 38 CFR 3.400(c)(4).

**EXAMPLE:** A parent in receipt of death compensation returns a VA Form
21-509 during November of 1990. It shows the parent has a large amount
of money in the bank. Development reveals the parent received a large
inheritance during February of 1988. It is determined dependency ceased
to exist during February 1988 and the parent\'s death compensation award
is stopped effective January 1, 1989 (38 CFR 3.660(a)(2)). The
adjudicator sees that because of high continuing medical expenses the
parent\'s income is now within the limit for DIC eligibility. The
adjudicator writes to the parent to solicit an election of DIC and
confirm income and expense information. The election of DIC is received
on March 14, 1991. If the parent is otherwise eligible, DIC may be
awarded from March 14, 1991 (subject to 38 CFR 3.31). No payments are in
order between January 1, 1989, and April 1, 1991.

**30.07 PARENT STILL DEPENDENT**

a\. **Award Action On or Before Cutoff Date for the Last December Input
Cycle**. If the VA Form 21-509 is properly completed and shows the
parent is still dependent, process a transaction 45 under end product
130.

\(1\) Transaction 45 is accomplished by processing a RESU and entering a
\"Y\" in the TR 45 field on the 406 Screen.

\(2\) If transaction 45 is processed on or before the cutoff date for
the last December input cycle, it will clear the 46 diary. This prevents
death cases from going into suspense and will prevent issuance of a
writeout on live cases. See paragraph 30.08b.

**NOTE:** The cutoff date for the last December input cycle is the date
in Column 2 of the December C&P Schedule of Operations for the last
cycle prior to EOM processing. See part V, chapter 1.

b\. **Award Action After Cutoff Date for Last December Input Cycle and
Before the Date Cycle 0 January Updates**

\(1\) Do not make any input on triennial cases where the parent is still
dependent after the cutoff date for the last December input cycle
(column 2 of the December C&P Schedule of Operations) but before the
date cycle 0 January updates.

\(2\) Identify the date cycle 0 of January updates by finding \"cycle
0\" in column 1 of the January C&P Schedule of Operations and going
across to the date in column 4. The date in column 4 is the date cycle 0
updates.

\(3\) A death compensation case cannot be cleared during this period
because the 46 diary (par. 30.03) matures during EOM December and sends
a SUSPEND transaction into cycle 0 of January. A TR 45 cannot be
processed after the 46 diary matures (EOM December), and a TR 16
(regular resume) cannot be processed until the account goes into
suspense (when cycle 0 of January updates).

**NOTE:** If a TR 45 has not been processed on or before the cutoff date
for the last December input cycle, a writeout will be issued on each
live triennial case. See paragraph 30.08b. Therefore, no computer input
is required on live triennial cases after the cutoff date for the last
December input cycle. If the parent is still dependent, the only
required action is to PCLR end product 130.

c\. **Award Action After the Date Cycle 0 January Updates**

\(1\) **Death Compensation Cases.** If the VA Form 21-509 is properly
completed and the parent is still dependent, process a RESU but do not
enter a \"Y\" in the TR 45 field on the 406 Screen. This generates TR 16
(regular resume) rather than TR 45.

\(2\) **Disability Compensation Cases.** If the VA Form 21-509 is
properly completed and the parent is still dependent, PCLR the pending
issue. No award action is required.

**NOTE:** Live triennial cases are not suspended when the 46 diary
matures. The maturing 46 diary on a live triennial case causes a
writeout to be issued.

**30.08 VA FORM 21-509 NOT RETURNED BY BENEFICIARY**

a\. **Death Compensation Cases**

\(1\) If no transaction 45 is processed by the cutoff date for the last
December input cycle, the code 46 master record diary matures. This
causes automatic issuance of a due process letter, VA Form 21-8990, Due
Process Letter for Parents in Receipt of Death Compensation, and
suspends the account effective January 1.

\(2\) The text of VA Form 21-8990 is shown in addendum C.

\(3\) No further action is required until VA Form 20-6560, Notice of
Benefit Payment Transaction, with message code 615 (account in suspense
6 months or more) is received.

\(4\) If a properly completed VA Form 21-509 has not been received by
the time the message code 615 writeout is received, review the file for
the last evidence confirming the parent\'s continued dependency.

\(5\) Under 38 CFR 3.652(a)(1), dependency is considered to have ceased
as of the end of the month in which it was last shown by the evidence of
record to have existed.

\(6\) Under 38 CFR 3.660(a)(2), the award must be adjusted effective the
end of the year during which dependency ceased.

\(7\) When the proposed effective date of termination has been
determined, send a locally generated letter advising the beneficiary of
the proposed adjustment. Control for 60 days.

\(8\) If there is no response within the control period, terminate the
award under 38 CFR 3.660(a)(2) and 38 CFR 3.652(a)(1).

**EXAMPLE:** A parent in receipt of death compensation fails to return
the VA Form 21-509 which was mailed out during August 1990. The system
automatically suspends the account effective January 1, 1991, and sends
VA Form 21-8990 (add. C). VA Form 20-6560 with message code 615 is
received during June of 1991. A review of the file indicates the last
evidence verifying the parent\'s dependency was a VA Form 21-509 signed
October 28, 1987, and date stamped into the VA on November 7, 1987.
Consider dependency was last verified as of November 7, 1987. Send the
parent a letter advising VA proposes to stop the award effective January
1, 1988, for failure to confirm continued dependency. Enclose another VA
Form 21-509. If there is no response within 60 days, stop the award
effective January 1, 1988.

b\. **Disability Compensation Cases**

\(1\) If the code 46 master record diary is not canceled by the cutoff
date for the last December input cycle, it matures and causes issuance
of VA Form 20-6560 with message code 693 (REVIEW FOR ADJUSTMENT-VET DEP
QUES NOT REC\'D).

\(2\) If the VA Form 20-6560 is received, pull the file. Review the file
for the last evidence confirming the parent\'s continued dependency.

\(3\) Under 38 CFR 3.652(a)(1), dependency is considered to have ceased
as of the end of the month in which it was last shown by the evidence of
record to have existed.

\(4\) Under 38 CFR 3.660(a)(2), the award must be adjusted effective the
end of the year during which dependency ceased.

\(5\) Once the proposed effective date of reduction has been determined,
send a due process letter advising the veteran of the proposed
adjustment. Control for 60 days.

\(6\) If there is no response within the control period, reduce the
award under 38 CFR 3.660(a)(2) and 38 CFR 3.652(a)(1).

**EXAMPLE:** A veteran receiving additional disability compensation for
a dependent parent fails to return the VA Form 21-509 mailed out during
August 1990. VA Form 20-6560 with message code 693 is received during
January of 1991. A review of the file indicates the last evidence
verifying the parent\'s dependency was a VA Form 21-509 signed December
28, 1987, and date stamped into the VA on January 15, 1988. Consider
dependency was last verified as of January 15, 1988. Send the veteran a
letter advising that VA proposes to reduce the award to the rate payable
without the additional benefit for the parent or parents effective
January 1, 1989. Enclose another VA Form 21-509. If there is no response
within 60 days, adjust the award effective January 1, 1989.

**ADDENDUM A**

**TRIENNIAL COVER LETTER**

**DEATH COMPENSATION CASES**

**VA FORM 21-8989**

All parents in receipt of death compensation are required to complete
and return the enclosed VA Form 21-509, Statement of Dependency of
Parent(s).

The completed VA Form 21-509 should be returned to the address shown on
this letter within 60 days. If we do not receive the completed VA Form
21-509 within 60 days, your death compensation payments will be
suspended.

Do not leave any blocks on VA Form 21-509 blank. If your answer to any
item is \"none\" or \"not applicable,\" write \"NONE\" or \"N/A\" in the
appropriate item. Please be sure to sign the form in the space provided
and write the veteran\'s VA claim number on the form.

If you mail your VA Form 21-509 from overseas, use airmail postage. For
faster overseas mail delivery, you may ask the nearest American
Consulate to forward the completed VA Form 21-509 to the Department of
Veterans Affairs.

If you need assistance in completing the VA Form 21-509, please contact
the nearest VA office or, if overseas, the nearest American Consulate.
You may also contact any accredited veterans organization representative
or any local, county or State veterans group for help in preparing your
response.

Sincerely yours,

Adjudication Officer

Enclosure: VA Form 21-509

**ADDENDUM B**

**TRIENNIAL COVER LETTER**

**DISABILITY COMPENSATION CASES**

**VA FORM 21-8991**

All veterans in receipt of additional compensation for a dependent
parent or parents are required to complete and return the enclosed VA
Form 21-509, Statement of Dependency of Parent(s).

The completed VA Form 21-509 must be returned to the address shown on
this letter within 60 days. If we do not receive the completed VA Form
21-509 within 60 days, it will be necessary to discontinue the
additional benefits you are receiving for your parent(s).

Do not leave any blocks on VA Form 21-509 blank. If your answer is
\"none\" or \"not applicable,\" write \"NONE\" or \"N/A\" in the
appropriate item. You must sign the VA Form 21-509 in the space
provided.

If you mail your VA Form 21-509 from overseas, affix airmail postage.
For faster overseas mail delivery, you may ask the nearest American
Consulate to forward the completed VA Form 21-509 to the Department of
Veterans Affairs.

If you need assistance in completing the VA Form 21-509, please contact
the nearest VA office or, if overseas, the nearest American Consulate.
You may also contact any accredited veterans organization representative
or any local, county or State veterans group for help in preparing your
response.

Sincerely yours,

Adjudication Officer

Enclosure: VA Form 21-509

**ADDENDUM C**

**TRIENNIAL DUE PROCESS LETTER**

**DEATH CASES**

**VA FORM 21-8990**

Approximately 5 months ago we sent you a VA Form 21-509, Statement of
Dependency of Parent(s), and asked that you complete and return it
within 60 days. As of this date, we have not received the completed VA
Form 21-509. Therefore, it will be necessary to suspend your payments.

Another VA Form 21-509 is enclosed. You should fully complete this form
and return it to the address shown on this letter as soon as possible.
Do not leave any items on this form blank. If your answer is \"none\" or
\"not applicable,\" write \"NONE\" or \"N/A\" in the appropriate block.

If you need assistance in completing VA Form 21-509 or if you have
misplaced it, any VA office can help you. You may also contact any
accredited veterans representative or any local, county or State
veterans group for help in preparing your response.

If we do not receive a fully completed VA Form 21-509, an overpayment
may be created in your account.

Sincerely yours,

Adjudication Officer

Enclosure: VA Form 21-509

IMPORTANT

See reverse for Notice of Procedural and Appellate Rightss