**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 1**

**Washington, DC 20420 May 26, 1992**

Veterans Benefits Administration Manual M21-1, Adjudication Procedures -
Compensation and Pension, Dependency and Indemnity Compensation, Accrued
Amounts, Burial Allowances, Special Benefits, Part IV, \"Authorization
Procedures, is changed as follows:

**Page 22-i**: Remove this page and substitute page 22-i attached.

**Pages 22-I-1 through 22-II-6**: Remove these pages and substitute
pages 22-I-1 through 22-II-6 attached.

Chapter 22 is clarified to indicate that General or District Council
will advise Adjudication of the amounts to be withheld when a tort claim
judgment is made in favor of two or more persons, either as individuals
or as personal representatives of an estate.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 2**

**Washington, DC 20420 May 26, 1992**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Part IV, pages 32-I-1 through 32-I-3**: Remove these pages and
substitute pages 32-I-1 through 32-I-3 attached.

Paragraph 32.04 is revised to incorporate General Counsel Opinion 8-92
which provides that death due to non-Hodgkin\'s lymphoma or any other
disease service-connected under 38 CFR 3.313 or any disease
presumptively connected to service prior to August 13, 1981, establishes
REPS eligibility.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 3**

**Washington, DC 20420 August 27, 1992**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page i:** Remove this page and insert page i attached.

**Pages 38-i through 38-3**: Insert these pages. This constitutes the
addition of a new chapter to part IV.

**Pages I-1 through I-6**: Remove these pages and insert IV-1 through
IV-6 attached.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 4**

**Washington, DC 20420 August 7, 1992**

This change to the Veterans Benefits Administration Manual, M21-1,
\"Adjudication Procedures - Compensation and Pension, Dependency and
Indemnity Compensation, Accrued Amounts, Burial Allowances, Special
Benefits,\" Part IV, provides additional instruction regarding service
verification.

Part IV, \"Authorization Procedures,\" is changed as follows:

**Pages 10-I-3 through 10-I-5**: Remove these pages and substitute the
attached pages 10-I-3 through 10-I-6.

Subparagraph 10.03c, last sentence, is corrected to show that the
veteran does [not]{.underline} have to be discharged or separated from
the National Guard.

Subparagraph 10.04b is amended by the addition of Note 3.

Subparagraph 10.04d is inserted to describe circumstances under which
veterans retired from the military for length of service may be paid
compensation prior to complete verification of service.

**RESCISSION**: DVB Circular 21-87-14.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 5**

**Washington, DC 20420 August 11, l992**

These changes to the Veterans Benefits Administration Manual, M21-1,
Part IV, provide instructions regarding DoD\'s Special Separation
Benefit (SSB) and Voluntary Separation Incentive (VSI) programs,
information regarding taxation of disability severance, and General
Counsel Opinion 04-92 regarding out-of-custody child\'s right to pension
rather than DIC.

Part IV, \"Adjudication Procedures\" is changed as follows:

**Pages 20-i through 20-iii.** Remove these pages and substitute pages
20-i through 20-iii attached.

**Pages 20-I-l through 20-I-2**. Remove these pages and substitute pages
20-I-l through 20-I-2 attached.

**Pages 20-VI-1 through 20-VI-8**. Remove these pages and substitute
pages 20-VI-1 through 20-VI-11 attached.

**Pages 20-XIII-l through 20-XIII-2**. Remove these pages and substitute
pages 20-XIII-1 through 20-XIII-3

Public Law 101-510 enacted November 5, l990, established entitlement to
Separation Pay Under 10 U.S.C. 1174 for certain regular enlisted
members. This change has been incorporated into paragraph 20.31a(3).

Public Law 102-190 enacted December 5, l991, added Sections 1174a and
1175 to Title 10 of the United States Code. Two incentive programs are
being offered to certain service members in overstrength inventories to
downsize and reshape the armed forces. The programs are Special
Separation Benefit (SSB) under Section 1174a and Voluntary Separation
Incentive (VSI) under Section 1175. Chapter 20 has been amended to
incorporate information about both incentive programs and establish
procedures for recovering SSB.

The District Court for the Eastern District of Virginia held in [St.
Clair vs. USA]{.underline} that disability severance payments are
excluded from taxable income. Paragraph 20.33c(3) is strictly
informational.

General Counsel Opinion 04-92 dated February 20, 1992, regarding
out-of-custody child\'s right to Improved Pension rather than DIC
apportionment share is incorporated into paragraph 20.79.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 6**

**Washington, DC 20420 September 29, 1992**

1\. Transmitted is a change to Veterans Benefits Administration Manual
M21-1, part IV, \"Adjudication Procedures - Compensation and Pension,
Dependency and Indemnity Compensation, Accrued Amounts, Burial
Allowances, Special Benefits.\"

2\. VBA Manual M21-1, part IV, is changed as follows:

**Pages 16-i through 16-117**: Remove these pages and substitute pages
16-i through 16-A-3 attached.

Paragraph 16.04a(2): Changed to show that the 38 CFR 3.660(b) time limit
for submitting satisfactory evidence of entitlement applies even if the
evidence is received within 12 months of the date of a disallowance
letter. The applicability of 38 CFR 3.660(b) is not limited by 38 CFR
3.160(d).

Paragraph 16.04b(5): Last sentence of the EXAMPLE is corrected to show
that an award can be made from January 1, 1992, assuming the veteran can
establish entitlement for the period December 15, 1991, through December
31, 1992.

Paragraph 16.05f(2): Changed to show that where the beneficiary\'s
Maximum Annual Pension Rate (MAPR) and income change on the same date
and 38 CFR 3.31 is for application, the award line for the MAPR/income
change line should carry forward the deductible expenses and non-Social
Security income from the month immediately preceding the month of the
MAPR/income change. If the beneficiary receives Social Security, the
post-COLA Social Security rate should be used on the MAPR/income change
line.

Paragraph 16.10g(1)(e): Changed to show the correct formula for
determining the 38 CFR 3.262(b)(2) spouse income exclusion for the year
a 306 pension spouse is established.

Paragraph 16.13k: A subparagraph is added to describe the circumstances
under which Parents\' DIC benefits are paid less frequently than
monthly. Public Law 102-86 permits payment of Parents\' DIC less
frequently than monthly. It is expected that the first semiannual
payments will be made during December of 1992.

Paragraph 16.14a(4)(a): Changed to show when EVRs for two parents living
together must be worked together and to make it clear that the total
medical expenses paid by parents living together should be shown on each
parent\'s 306 Screen.

Paragraph 16.23c(1): Changed to show that the end-of-month rule should
be applied the first time irregular income is received from a particular
source. Thereafter, the irregular income should be counted for the
duration of the EVR reporting period during which it is receive.

Paragraph 16.23h(3): A subparagraph added to show when income is
considered to have been received for Improved Pension purposes.

Paragraph 16.23i(1): Changed to add a definition of the \"initial
annualization period\" and to furnish additional information about
income computations during the initial annualization period.

Paragraph 16.23l: EXAMPLE 16 is added to demonstrate acceptable ways of
handling a situation where the date of receipt of lump sum income by a
surviving spouse is unknown in a case where the veteran\'s rate is
payable for the month of death under 38 CFR 3.20.

Paragraph 16.27e: Changed to provide a procedure for redistributing
Social Security to remaining dependents where Social Security is being
received by three or more family members, at least one of whom is a
child under the age of 18.

Paragraph 16.28c(4) and d(2): Changed to show that where a child with
income turns 18 and removal of the child will increase the rate of
pension, the proper award lines can be generated off the 304 Screen by
entering the child\'s removal date as the first day of the month
following the child\'s 18th birthday.

Paragraph 16.30b: Changed to show that amended income information may be
accepted after the 38 CFR 3.660(b) time limit has expired for the
purpose of issuing a retroactive payment only if the retroactive amount
does not exceed the amount previously repaid or recouped. Example 3 is
added.

Paragraph 16.31b(9): A new subparagraph is added to show that Medicare
premiums should not be allowed as a deductible expense unless
specifically claimed but that development should be initiated for a
medical expense deduction if the evidence indicates the claimant may be
paying the Medicare premium and allowing the deduction would increase
the rate of pension.

Paragraph 16.31g(1): Added to show that a beneficiary\'s report that he
or she is no longer a patient in a nursing home may be accepted as a
report that he or she is no longer paying nursing home fees. A procedure
is furnished for the situation where a beneficiary with continuing
medical expenses fails to confirm payment of these expenses on the EVR.

Paragraph 16.31g(2): Added to provide instructions for the situation
where the beneficiary fails to confirm recurring medical expenses.

Paragraph 16.31k: Changed to show that where a beneficiary receives
reimbursement for medical expenses after a deduction has been allowed,
IVAP should be recalculated for the EVR reporting period during which
the medical deduction was allowed.

Paragraph 16.31m: A new subparagraph is added to establish procedures
for obtaining verification (provider proof) of claimed medical expenses.
These procedures were instituted in response to a GAO report which
concluded that existing procedures for allowing medical expenses were
inadequate.

Paragraph 16.34c(10): Changed to show that the entry in the HARDSHIP
EXPENSES field on the 336 Screen may have to be adjusted when there is
an apportionment.

Paragraph 16.36b(3): A new subparagraph is added to furnish information
on time limits for submitting amended income information after a running
award is terminated for excessive income.

Paragraph 16.36d: A new subparagraph is added to furnish instructions on
how to adjust Improved Pension awards based on Social Security and other
benefit Cost-of-living increases.

Paragraph 16.41b(2): Changed to show that cash contributions are not
countable income if they are considered to be maintenance as opposed to
a gift.

Paragraph 16.41b(13): Changed to make it clear that chore services
payments to a dependent of a VA beneficiary are not countable where they
are based on the dependent\'s financial need and counting the payments
would reduce the VA beneficiary\'s rate of pension.

Paragraph 16.41b(21): Changed to show that the income exclusion for
disaster relief payments does not apply in a commercial context.
Disaster relief payments to the owner of a farm or other business must
be considered business income which is countable for Improved Pension
purposes to the extent that it is not offset by business expenses.

Paragraph 16.41b(27): Added to show that distributions to members of the
Seminole Nation under Public Law 101-277 are not countable income.

Paragaraph 16.41b(28): Added to show that Redress Payments to WWII
Japanese internees are not countable income for Improved Pension
purposes.

Paragraph 16.41c(6)(a): An EXAMPLE is added to demonstrate how to count
disability compensation received by a beneficiary who is entitled to
both compensation and pension.

Paragraph 16.41c(8): A NOTE is added to show that cash contributions for
the claimant\'s maintenance are to be distinguished from gifts.

Paragraph 16.41c(11): Changed to show that conservation resource program
payments are countable income for Improved Pension purposes.

3\. **RESCISSION**: Interim Issue 21-87-1.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 7**

**Washington, DC 20420 September 25, 1992**

Veterans Benefits Manual, M21-1, Part IV, \"Adjudication Procedures,\"
is changed as follows:

**Pages 1-III-1 and 1-III-2**: Remove these pages and substitute pages
1-III-1 and 1-III-2 attached.

Paragraph 1.11a(1) is changed to incorporate notification procedures to
veterans in other than original claims. They were omitted during the
manual revision.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 8**

**Washington, DC 20420 October 1, 1992**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 28-i and 28-I-1 through 28-II-4**: Remove these pages and
substitute pages 28-i and 28-I-1 through 28-II-4 attached.

Chapter 28 is revised to implement the revised procedures in M21-1, part
VI, which allow a copy of the rating decision reasons and bases to be
sent to the claimant. If a copy of the rating decision is sent to the
claimant, a cover letter will be sent describing the changes in the
rates and dates and referring the claimant to the attached rating copy.
In addition, denial notification procedures required by 38 U.S.C. 3004
are incorporated. Special notification procedures for visually impaired
veterans have been added.

**RESCISSIONS**:

a\. Paragraph 2, Adjudication Procedures, Circular 20-91-20, Special
Notification Procedures for Visually Impaired Veterans, dated October
10, 1991.

b\. Paragraphs 3d, 3e and 4, Notification Requirements and Procedures
Required by the Enactment of Section 3004 in Title 38 U.S.C., Circular
21-90-1, dated March 16, 1990.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 9**

**Washington, DC 20420 September 17, 1992**

This change to the Veterans Benefits Administration Manual, M21-1,
\"Adjudication Procedures - Compensation and Pension, Dependency and
Indemnity Compensation, Accrued Amounts, Burial Allowances, Special
Benefits,\" part IV, relays new administrative decision requirements.

Part IV, \"Authorization Procedures,\" is changed as follows:

**Pages 11-V-2 through 11-V-4**: Remove these pages and substitute the
attached pages 11-V-2 through 11-V-4.

Paragraph 11.30 is amended to describe current preparation and
promulgation requirements for administrative decisions. The revised
format for these decisions is designed to help organize the information
they convey in a manner more useful to claimants, representatives, and
reviewing bodies.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 10**

**Washington, DC 20420 October 14, 1992**

Part IV, \"Authorization Procedures,\" of Veterans Benefits
Administration Manual M21-1, \"Adjudication Procedures - Compensation
and Pension, Dependency and Indemnity Compensation, Accrued Amounts,
Burial Allowance, Special Benefits\" is changed as follows:

**Pages 25-III-1 through 25-III-3**: Remove these pages and substitute
pages 25-III-1 through 25-III-4 attached.

Paragraph 25.05 is changed to provide revised instructions for
processing claims when there has been a failure to report for a review
examination in accordance with 38 CFR 3.655 and in conformity with
instructions contained in part VI, paragraph 9.10.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 11**

**Washington, DC 20420 November 4, 1992**

1\. Transmitted is a change to Veterans Benefits Manual M21-1, part IV,
\"Adjudication Procedures - Compensation and Pension, Dependency and
Indemnity Compensation, Accrued Amounts, Burial Allowances, Special
Benefits.\"

2\. VBA Manual M21-1, part IV is changed as follows:

**Pages 31-i and 31-1 through 31-17**: Remove these pages and substitute
pages 31-i and 31-ii and pages 31-I-1 through 31-A-3.

Subchapter VII is added to provide instructions for handling the TDIP
(Total Disability Income Provision) Review and the entire chapter has
been renumbered in accordance with the revised page numbering system.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 12**

**Washington, DC 20420 November 30, 1992**

Part IV, \"Authorization Procedures,\" of the Veterans Benefits
Administration Manual M21-1, \"Adjudication Procedures - Compensation
and Pension, Dependency and Indemnity Compensation, Accrued Amounts,
Burial Allowances, Special Benefits,\" is changed as follows:

**Pages 11-III-3 through 11-III-6**: Remove these pages and substitute
the attached pages 11-III-3 through 11-III-6.

Paragraph 11.20d is revised to show a complete, current address for the
element in the Office of the Inspector General which conducts FBI and
passport inquiries in presumed death cases.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 84, dated 8/26/96**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 13**

**Washington, DC 20420 December 3, 1992**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 8-i through 8-E-4**: Insert these pages. This constitutes the
addition of an appeals chapter to part IV.

**Pages IV-1 through IV-6**: Remove these pages and insert IV-1 through
IV-6 attached.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 76, dated 9/18/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 14**

**Washington, DC 20420 December 8, 1992**

Part IV, \"Authorization Procedures,\" of the Veterans Benefits
Administration Manual, M21-1, \"Adjudication Procedures - Compensation
and Pension, Dependency and Indemnity Compensation, Accrued Amounts,
Burial Allowances, Special Benefits,\" is changed as follows:

**Pages 26-I-15 through 26-I-24**: Remove these pages and insert the
attached pages 26-I-15 through 26-I-24.

Subparagraph 26.07 is revised to allow immediate termination of a
remarried widow\'s benefit, in certain cases, even though her remarried
name is not of record.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 15**

**Washington, DC 20420 December 30, 1992**

1\. Transmitted is a change to Veterans Benefits Manual M21-1, part IV,
\"Adjudication Procedures - Compensation and Pension, Dependency and
Indemnity Compensation, Accrued Amounts, Burial Allowances, Special
Benefits.\"

2\. VBA Manual M21-1, part IV is changed as follows:

**Pages 16-i and 16-ii**: Remove these pages and substitute pages 16-i
through 16-xii attached.

More detail is provided in the contents pages.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 16**

**Washington, DC 20420 December 1, 1992**

Veterans Benefits Manual, M21-1, Part IV, \"Adjudication Procedures,\"
is changed as follows:

**Pages 23-II-1 through 23-II-20**: Remove these pages and substitute
pages 23-II-1 through 23-II-20 attached.

Paragraph 23.06a(1) is changed to delete the reference to the Persian
Gulf War.

Paragraph 23.06a(4) is added to show that Persian Gulf War veterans must
meet the minimum active service requirements under 38 U.S.C. 5303A.

Paragraph 23.06a(5) is added to show Reserve and National Guard
personnel called to active duty for the Persian Gulf War under Title 10
and who served 90 days are eligible for loan guaranty benefits.

Paragraph 23.06b is added to explain expanded eligibility for Guard and
Reserve personnel under Public Law 102-547, The Veterans Home Loan
Program Amendments of 1992.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 17**

**Washington, DC 20420 February 18, l993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 17-II-7**: Remove this page and insert 17-II-7 attached.

Paragraph 17.20 has been changed to incorporate an approved MEPP\'s
waiver which discontinued the use of VA Form 29-4347 whenever the
Fiduciary and Field Examination Unit of the Veterans Services Division
furnishes the insurance center with a copy of VA Form 27-555.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, l each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 18**

**Washington, DC 20420 February 23, 1993**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Adjudication
Procedures,\" is changed as follows:

**Page 6-i:** Remove this page and substitute page 6-i attached.

**Pages 6-I-1 through 6-II-2**: Remove these pages and substitute pages
6-I-1 through 6-II-2 attached.

Paragraph 6.03b is amended to reflect the Court of Veterans Appeals
decision in [Isenhart v. Derwinski]{.underline}, 3 Vet. App. 177 (1992),
which requires that a claim submitted to VA on VA Form 21-534 must, by
law, be handled as a claim for DIC, death pension and accrued benefits.

Paragraph 6.09b is amended and a note added to clarify that a claim
submitted on an obsolete form is a formal claim.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 19**

**Washington, DC 20420 February 26, 1993**

Veterans Benefits Manual, M21-1, Part IV, \"Adjudication Procedures,\"
is changed as follows:

**Page 1-i:** Remove this page and substitute page 1-i attached.

**Pages 1-IV-1 through 1-IV-3**: Remove these pages and substitute pages
1-IV-1 through 1-IV-4 attached.

Paragraph 1.14 is added to reflect the Court of Veterans Appeals
decision in [Isenhart v. Derwinski]{.underline}, 3 Vet. App. 177 (1992),
which requires that a claim submitted to VA on VA Form 21-534 must, by
law, be handled as a claim for DIC, death pension and accrued benefits.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 20**

**Washington, DC 20420 March 8, 1993**

Part IV, \"Authorization Procedures,\" of Veterans Benefits
Administration Manual M21-1, \"Adjudication Procedures - Compensation
and Pension, Dependency and Indemnity Compensation, Accrued Amounts,
Burial Allowance, Special Benefits\" is changed as follows:

**Pages 19-II-1 through 19-II-2**: Remove these pages and substitute
pages 19-II-1 through 19-II-2 attached.

Paragraph 19.14a is changed to reflect the end-of-month rule as applying
to the apportionee award when the apportionee\'s marriage to the veteran
ends in divorce or annulment.

**Pages 25-IV-1 through 25-IV-5**: Remove these pages and substitute
pages 25-IV-1 through 25-IV-4 attached.

Paragraph 25.07 is changed to provide revised instructions for
determining the proper effective date to adjust the apportionee award
when the apportionee is the spouse of the veteran and their marriage has
ended in divorce or annulment. This change incorporates General Counsel
Precedent Opinion 74-90.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 21**

**Washington, DC 20420 March 9, l993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 20-VII-l through 20-VII-2**: Remove these pages and insert
20-VII-l through 20-VII-2 attached.

Paragraph 20.41e has been modified to indicate that the Adjudication
Division is to solicit the assistance of the District Counsel for
obtaining necessary evidence which has been placed under a court seal.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director,

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, l each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 22**

**Washington, DC 20420 March 9, l993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 18-VI-7 through 18-VI-9**: Remove these pages and insert 18-VI-7
through 18-VI-9 attached.

Paragraph 18.38a is now in agreement with 38 CFR 3.558(a) which states
that payments will not be made for any period prior to the date the
estate was reduced to \$500 or less.

Paragraph 18.39 has been modified to reflect the United States Court of
Veterans Appeals decision in [Felton v. Principi]{.underline}, U.S. Vet.
App. No. 90-965 decided on January 14, l993, which mandates lump-sum
payment after the expiration of six months following a rating of
competency regardless of whether a veteran is thereafter again found
incompetent or has a proper dependent.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, l each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 23**

**Washington, DC 20420 March 15, 1993**

Transmitted is a change to Part IV, \"Authorization Procedures,\" of
Veterans Benefits Administration Manual M21-1, \"Adjudication
Procedures - Compensation and Pension, Dependency and Indemnity
Compensation, Accrued Amounts, Burial Allowance, Special Benefits.\"

**Pages 8-II-1 and 8-II-2**: Remove these pages and substitute pages
8-II-1 and 8-II-2 attached.

**Pages 8-III-1 through 8-III-4**: Remove these pages and substitute
pages 8-III-1 through 8-III-4 attached.

**Pages 8-X-1 and 8-X-2**: Remove these pages and substitute pages 8-X-1
and 8-X-2 attached.

**Pages 11-i and 11-ii:** Remove these pages and substitute pages 11-i
and 11-ii attached.

**Pages 11-V-3 and 11-V-4**: Remove these pages and substitute pages
11-V-3 through 11-V-6 attached.

Subparagraph 11.31a is revised in conformance with the Court of Veterans
Appeals decision in [Russell v. Principi]{.underline}, 3 Vet. App. 310
(1992), to clarify clear and unmistakable error under 38 CFR 3.105(a).
The revision also provides instructions a claimant must follow to file a
motion for reconsideration with BVA if error is alleged in a BVA
decision or in a regional office determination that has been affirmed by
the BVA. Clarifying information concerning new and material evidence is
also provided. Subparagraphs 8.06b, 8.09e, and 8.38d were revised to
provide cross references to information on clear and unmistakable error
and/or new and material evidence.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 24**

**Washington, DC 20420 March 29, 1993**

1\. Transmitted is a change to Veterans Benefits Manual M21-1, part IV,
\"Adjudication Procedures - Compensation and Pension, Dependency and
Indemnity Compensation, Accrued Amounts, Burial Allowances, Special
Benefits.\"

2\. VBA Manual M21-1, part IV is changed as follows:

**Pages 16-vii through 16-x**: Remove these pages and substitute pages
16-vii through 16-x attached.

**Pages 16-VI-1 through 16-VI-24**: Remove these pages and substitute
pages 16-VI-1 through 16-VI-26 attached.

Paragraph 16.31b \-- A new subparagraph (10) is added to provide
guidelines for determining whether fees paid to adult day care centers,
rest homes, group homes, and similar facilities can be allowed as
deductible medical expenses.

Paragraph 16.31c(1) \-- Changed to emphasize that a medical expense
report signed by a power of attorney is not acceptable unless that
person is also the VA-recognized fiduciary.

Paragraph 16.31c(2) \-- Changed to show that inclusive dates of payment
are acceptable for nursing home fees, fees paid to in-home attendants,
and certain other types of fees. For fees other than those specified, at
least the month and year of payment must be shown on VA Form 21-8416 or
equivalent. This subparagraph is also changed to show that it should be
assumed that the current rate of private medical insurance payments
prevailed throughout the EVR reporting period unless there is evidence
of a substantial change in the premium during the EVR reporting period.

Paragraph 16.31m \-- Changed to show that provider proof of claimed
medical expenses is required when a case is selected by Hines BDC for
verification or when the adjudicator has reason to question claimed
medical expenses. Verification of medical expenses is no longer required
for all medical expense claims above a certain dollar level. Instead,
each month a random sample of Improved Pension cases will be selected
for provider verification by Hines BDC and a writeout will be sent to
the regional office of jurisdiction. The regional office will determine
whether medical expenses were a factor in determining the claimant\'s
rate at any time during the year preceding the date of the writeout. If
so, the claimant will be asked to furnish provider proof of all claimed
expenses (except Medicare deductions and incidental medical expenses).
If any expenses cannot be verified, the award will be retroactively
adjusted to remove those unverified expenses. If the claimant cannot
verify substantially all expenses for which provider proof was
requested, the claimant may be required to furnish provider proof before
any additional medical expense deductions are allowed.

Paragraph 16.32e \-- Amended to show that if final expenses are paid
within the calendar year following the calendar year of the death which
gave rise to the expenses, the deduction may be allowed for 12 months
from the month during which payment was made or for any 12-month
annualization period which begins during the calendar year of death,
whichever is to the claimant\'s advantage. Otherwise, final expenses
must be deducted for 12 months from the month during which payment is
made. This brings the paragraph more in line with 38 CFR 3.272(h) and
General Counsel Precedent Opinion 6-89.

Paragraph 16.32h \-- An Example is added to show how to treat expenses
of a veteran\'s prepaid burial when paid prior to the veteran\'s death
from a joint bank account owned by the veteran and the surviving spouse
claimant.

Paragraph 16.32i \-- Changed to show that income for VA purposes should
be recalculated for the annualization period in question if
reimbursement is received for final expenses after they have formed the
basis for a deduction on the VA pension award.

Paragraph 16.34c(13) \-- Changed to show that where the child hardship
exclusion decreases due to a change in the Maximum Annual Pension Rate
and this results in a reduced rate of pension, the adjustment should be
effective the first of the month after the effective date of the
increase in the Maximum Annual Pension Rate.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 25**

**Washington, DC 20420 March 30, 1993**

This change to the Veterans Benefits Administration Manual, M21-1,
\"Adjudication Procedures - Compensation and Pension, Dependency and
Indemnity Compensation, Accrued Amounts, Burial Allowance, Special
Benefits,\" Part IV, provides additional instruction regarding service
verification.

Part IV, \"Authorization Procedures,\" is changed as follows:

**Pages 10-I-3 through 10-I-6**: Remove these pages and substitute the
attached pages 10-I-3 through 10-I-6.

A cross reference been added to subparagraph 10.03a pertaining to
establishing basic Loan Guaranty eligibility for National Guard members
for service during the Persian Gulf War.

Subparagraph 10.04c is amended to include proper use of the BDN system
as an alternate source of evidence.

Subparagraph 10.04e has been added to authorize payment of NSC burial
benefits based on the same evidence of service previously used to pay
compensation or pension.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 26**

**Washington, DC 20420 April 19, 1993**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures\" is changed as follows:

**Pages 3-i and 3-I-1 through 3-II-1**: Remove these pages and
substitute pages 3-i and 3-I-1 through 3-II-1 attached.

Paragraph 3.03 has been amended to except duplicate records received
from the claimant from being destroyed. It adds a reference to paragraph
3.09.

A new paragraph 3.09 has been inserted to add instructions for handling
duplicate evidence received from claimants. The previous paragraph 3.09
has been renumbered as paragraph 3.10.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 27**

**Washington, DC 20420 April 27, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 18-i and 18-ii:** Remove these pages and insert 18-i and 18-ii
attached.

**Page 18-III-5**: Remove this page and insert 18-III-5 attached.

General Counsel Opinion 3-93 dated January 27, l993, held that
regardless of whether a third party reimburses the Government for the
cost of a veteran\'s hospitalization at a VA medical center, the veteran
may be considered hospitalized at VA expense for the purposes of 38
C.F.R. 3.552(b)(1), which requires discontinuance of increased pension
for aid and attendance. Paragraph 18.21.1 has been added to provide
information about this decision.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, l each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 28**

**Washington, DC 20420 May 11, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 25-I-3 through 25-I-4**: Remove these pages and substitute the
attached pages 25-I-3 through 25-I-4.

The last sentence in paragraph 25.03b is removed in its entirety. The
approval of the AO is not required in this type of case.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 29**

**Washington, DC 20420 May 26, 1993**

1\. Transmitted is a change to Veterans Benefits Manual M21-1, part IV
\"Adjudication Procedures.\"

2\. VBA Manual M21-1, part IV is changed as follows:

**Pages 31-i and 31-ii**: Remove these pages and insert pages 31-i and
31-ii attached.

**Pages 31-VIII-1 through 31-VIII-3**: Insert these pages. Subchapter
VIII is added to provide instructions for handling the Social Security
Number verification process.

**Page 31-B-1**: Insert this page. Addendum B is added to provide sample
language for a letter sent to a financial institution requesting the
beneficiary\'s address.

3\. **RESCISSION**: Circular 21-91-9.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 30**

**Washington, DC 20420 May 27, 1993**

Part IV, \"Authorization Procedures,\" of the Veterans Benefits
Administration Manual, M21-1 is changed as follows:

**Pages 26-i and 26-I-1 through 26-I-24**: Remove these pages and insert
the attached pages 26-i and 26-I-1 through 26-I-24.

Subparagraph 26.01d is revised to incorporate new procedures for
reallocating Social Security benefits in Improved Pension cases.

Paragraph 26.06 is revised to incorporate the new DIC rates.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 31**

**Washington, DC 20420 June 21, 1993**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 16-ix through 16-xii**: Remove these pages and substitute pages
16-ix through 16-xii attached.

**Pages 16-IX-1 through 16-IX-8**: Remove these pages and substitute
pages 16-IX-1 through 16-IX-9 attached.

Paragraph 16.41b(10) \-- Changed to show that payments made as a result
of a veteran\'s participation in a rehabilitative services program
provided as part of the veteran\'s care by a State home are not
countable. Previously, this exclusion applied only to therapeutic and
rehabilitation activities under the auspices of a VA medical center.
Public Law 102-585 which was effective November 4, 1992, extends the
exclusion to programs in State homes.

Paragraph 16.41b(18) \-- Changed to show that Survivor Benefit Plan
(SBP) annuity payments and SBP Minimum Income Annuity Plan (MIW-SBP)
payments are countable income for Improved Pension purposes.

Paragraph 16.41b(28) \-- Changed to delete the words \"for Improved
Pension.\" Under Public Law 102-371 redress payments to World War II
Japanese internees are not countable income for any VA program.

Paragraph 16.41b(29) \-- Added to show that proceeds of cashed-in life
insurance policies are not countable to the extent that they represent
return of premiums but are countable to the extent that they represent
accrued interest.

Paragraph 16.41b(30) \-- Added to show that VA burial benefits are not
countable income but that an adjustment must be made if the claimant
receives VA burial benefits as reimbursement for expenses which have
already formed the basis for a final expense deduction under paragraph
16.32.

Paragraph 16.41b(31) \-- Changed to show that interest earned by an
irrevocable burial trust or similar burial insurance plan is not
countable if the interest is added to the value of the policy and is not
available to the VA claimant.

Paragraph 16.41c(14) \-- Added to show that income from joint bank
accounts should be counted in proportion to the claimant\'s ownership
share.

Paragraph 16.41c(15) \-- Added to show that cash dividends from rural
cooperatives and similar entities are countable income. Co-op dividends
in the form of discounts on the purchase of merchandise or services are
not countable income.

Paragraph 16.42d \-- A NOTE is added to make it clear that paragraph
16.42 applies where the holder of the mortgage or contract for deed is
not also the seller of the property. Where the holder of the mortgage or
contract for deed sold the property which is secured by the instrument,
sale of property rules in paragraph 16.40 apply.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 32**

**Washington, DC 20420 July 6, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 19-i:** Remove this page and insert the attached page 19-i.

**Pages 19-I-7 through 19-II-4**: Remove these pages and insert the
attached pages 19-I-7 through 19-II-4.

A new paragraph 19.13 is inserted to provide procedures for processing
court orders for garnishment of compensation in cases involving military
retired pay waiver. The subsequent paragraphs have been renumbered
because of the addition.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 33**

**Washington, DC 20420 July 6, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 2-i**: Remove this page and insert pages 2-i and 2-IV-1. This
constitutes the addition of a new subchapter pertaining to claims before
the BVA and the Court of Veterans Appeals.

**Pages 8-IX-3 through 8-IX-5**: Remove these pages and substitute pages
8-IX-3 through 8-IX-5 attached.

These changes have been made in accordance with the Court of Veterans
Appeals decision in [Ebert v. Brown]{.underline}, U.S. Vet. App. 92-1402
(1993), and [Genous v. Brown]{.underline}, U.S. Vet. App. 91-1433
(1993), to ensure that new claims received while appeals are at the BVA
or before the Court are processed expeditiously.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 34**

**Washington, DC 20420 July 19, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 36-i**: Remove this page and insert page 36-i attached.

**Pages 36-I-1 through 36-I-3**: Remove these pages and insert pages
36-I-1 through 36-I-4 attached. Paragraph 36.03 is revised to simplify
the procedures for referring a compensation or pension fraud case to the
Office of the Inspector General. An administrative decision is no longer
necessary to refer these cases.

**Pages 36-A-1 and 36-A-2**: Remove these pages and insert pages 36-A-1
and 36-A-2 attached. The local Inspector General Field Offices of
Investigation are updated.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 35**

**Washington, DC 20420 July 21, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 6-i**: Remove this page and insert 6-i attached.

**Pages 6-II-I through 6-II-2**: Remove these pages and insert 6-II-I
through 6-II-2 and 6-III-1 through 6-III-2 attached.

Chapter 4 of M21-1, Part III, Requests for Service Records, is being
revised. Procedures for handling notices of admission to uniformed
services medical facilities have been moved to this chapter since
admission to such an institution constitutes an informal claim.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068, plus VBC, l each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 36**

**Washington, DC 20420 July 25, 1993**

Veterans Benefits Administration Manual M21-1, Part IV \"Authorization
Procedures,\" is changed as follows:

**Pages 25-II-1 through 25-II-6**: Remove these pages and insert pages
25-II-1 through 25-II-6 attached. Subchapter II, 25.04a, NOTE 3 is added
to incorporate O.G.C precedent 20-92 allowing the payment of clothing
allowance to incarcerated veterans.

**Pages 25-VI-1 through 25-VI-4**: Remove these pages and insert pages
25-VI-1 through 25-VI-4 attached. Subchapter VI, 25.09 paragraph d. has
been added to incorporate O.G.C. Precedent 20-92 allowing the payment of
clothing allowance to incarcerated veterans.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 78, dated 12/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 37**

**Washington, DC 20420 August 5, 1993**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 29-i through 29-A-2**: Remove these pages and substitute pages
29-i through 29-A-2 attached. Chapter 29 is reorganized and broken down
into additional subchapters.

Paragraph 29.01c \-- Changed to show that an adjudicator may change an
Improved Pension beneficiary to a calendar year EVR reporting cycle with
or without a specific request from the beneficiary.

Paragraph 29.02d(6) \-- Changed to show that a Social Security number
cannot be changed on the E02 Screen if the \"verified\" or \"NO SSN\"
indicator is set on the M15 Screen.

Paragraph 29.03 \-- Changed to reflect programming changes scheduled for
the beginning of October, 1993. These changes include the elimination of
the E01 Screen in favor of a redesigned E02 Screen with stringed
processing capability.

Paragraph 29.04 \-- Added to furnish new procedures for entering Social
Security information on the E02 Screen. Effective with the EOM
September, 1993, EVR selection run, master record Social Security
information will be printed on EVRs released by Hines BDC.

Paragraph 29.05 \-- Added to furnish new procedures for entering medical
expense information on the E02 Screen. Effective with the EOM September
1993 EVR selection run, continuing (type \"C\") medical expenses will be
printed on Parents\' DIC and Improved Pension EVRs.

Subparagraph 29.07c \-- Changed to show that development should be
initiated if a beneficiary reports net worth of \$2,000 or more from
interest-bearing assets and does not report interest or dividend income
equal to at least 3 percent of the amount reported.

Subparagraph 29.07d \-- Changed to provide new procedures for evaluating
claims for medical expense deductions in Improved Pension cases.

Subparagraph 29.07g \-- Added to furnish procedures to be followed if an
Improved Pension beneficiary reports a reduction in the level of
continuing medical expenses prior to EVR time or fails to confirm
established recurring medical expenses.

Subparagraph 29.08c \-- Added to furnish procedures for developing for
an Improved Pension election when a protected pension beneficiary
reports that the beneficiary is a nursing home patient.

Paragraph 29.09 \-- Changed to provide new procedures for evaluating
claims for medical expense deductions in Parents\' DIC cases. Also
procedures are furnished for handling situations where a parent reports
a reduction in recurring medical expenses prior to EVR time and where
the parent fails to confirm established continuing medical expenses on
the EVR.

Paragraph 29.14c \-- Changed to show that an award can now be processed
to adjust an overpayment after an FNOD has been processed in BIRLS on a
veteran case as long as the ending date of the award does not go beyond
the date of death in BIRLS.

Paragraph 29.15 \-- Changed to provide new procedures for processing
terminations for nonreturn of the EVR.

Paragraph 29.16 \-- Changed to delete references to transaction 44 which
is no longer used.

Paragraph 29.19 \-- Changed to show that the E02 Screen print should be
filed with the EVR in the center compartment of the claims folder.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus VBC, 1 each

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 38**

**Washington, DC 20420 August 17, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 21-i through 21-III-2**: Remove these pages and insert 21-i
through 21-III-2 attached.

Paragraph 21.02a(2)(d) provides instructions to require control for
necessary future review exams in claims in which monetary benefits are
not being paid for compensable evaluations (e.g., retired or retirement
pay has not been waived). Control is necessary in such cases because of
the Court of Veterans Appeals ruling in [Salgado v. Brown]{.underline},
U.S. Vet. App. No. 91-826, which indicated that the protective
provisions of 38 U.S.C. 110 (38 CFR 3.951) do not require a concurrent
award of monetary benefits. An evaluation for compensation purposes that
has been continuously in effect for 20 or more years is protected
whether or not the veteran elects to receive a monetary award.

If the rating board requests a future examination in a case in which
benefits are not being paid or will not be paid, the examination must be
controlled through establishment of a future issue control, or, if
necessary, a local control. A programming change will be made to expand
future issue controls for future examinations and eliminate need for
local controls. Regional offices will be informed when the programming
change is in place.

Paragraph 21.03a has been modified to provide that if a special law code
06 must be removed and the master record reflects a future award line,
award action rather than a CORR transaction is necessary.

Paragraph 21.04f clarifies that in those cases where there is a partial
waiver in place because retired pay exceeds VA benefits, if VA benefits
are reduced or terminated, the service department will automatically
adjust benefits.

Paragraph 21.05b(2)(d) has been modified to require control for return
of VA Form 21-651 when a reservist begins receiving retired pay.

Paragraph 21.06d(1)(f) has been added to clarify that the veteran\'s
social security number must be in the master record in order for
information to be transmitted by cyclical tapes to the military finance
centers.

Paragraph 21.06d(5) has been modified to clarify that amounts withheld
under the provisions of 38 CFR 3.31 are not considered tax exempt.

Paragraph 21.07 has been modified to eliminate reference to military
finance center addresses on the back of VA Form 21-651. Over the next
two years, the Department of Defense (DoD) will be consolidating the
Defense Finance and Accounting Service centers. Regional offices were
previously furnished a schedule showing when DoD anticipates retired
payment records for each branch of service to be moved. During this
transition period, regional office personnel must refer to that schedule
to determine the appropriate military finance center. After DoD has
consolidated all records, M21-1 and VA forms will be amended to reflect
appropriate addresses.

Paragraph 21.07h(6)(a) and (b)has been amended to clarify that military
finance centers must be notified by VA of a legislative rate change
within 90 days of the date legislation is signed, rather than within 90
days of the effective date of legislation.

Paragraph 21.11 has been amended because the Hines BDC now produces and
sends tapes on a quarterly basis to DMDC.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 2 each to Veterans Services Division (27)

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 83, dated 3/25/96**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 39**

**Washington, DC 20420 August 16, 1993**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 11-i through 11-ii**: Remove these pages and insert pages 11-i
through 11-ii attached.

**Pages 11-III-1 through 11-III-6**: Remove these pages and insert pages
11-III-1 through 11-III-6 attached.

**Pages 11-V-3 through 11-V-5**: Remove these pages and substitute pages
11-V-3 through 11-V-6 attached.

Paragraph 11.30 is corrected to show proper completion of an
Administrative Decision using \"Reason and Bases\" rather than
\"Conclusion.\"

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 2 each to Veterans Services Division (27)

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 40**

**Washington, DC 20420 September 13, 1993**

Veterans Benefits Administration Manual M21-1, part IV, \"Adjudication
Procedures,\" is changed as follows:

**Pages 23-II-19 through 23-II-20**: Remove these pages and insert pages
23-II-19 through 23-II-20 attached. This change updates the address for
CHAMPVA.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 41**

**Washington, DC 20420 September 13, 1993**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 12-i and 12-I-11 through 12-I-20**: Remove these pages and
insert pages 12-i and 12-I-11 through 12-I-19 attached.

Paragraph 12.09 is revised to reflect a recent Court of Veterans Appeals
decision in [Gregory v. Brown]{.underline}, U. S. Vet. App. No. 91-912,
which provides that fault or the absence of fault in continuous
cohabitation decisions will be determined based on an analysis of
conduct at the time of separation. The facts and circumstances involved
in a continuation of a separation are removed from the chapter.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 42**

**Washington, DC 20420 September 20, l993**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures\" is changed as follows:

**Pages 27-II-1 through 27-II-11**. Remove these pages and substitute
pages 27-II-1 through 27-II-11 attached.

Paragraph 27.16a is amended to clarify that 38 U.S.C. 5122 applies to
benefit checks of surviving spouses and dependents as well as to those
of deceased veterans.

Paragraph 27.16b is corrected to show that the 38 U.S.C. 5122 procedures
do NOT apply to the enumerated situations.

Paragraph 27.17 is changed to clarify the difference between accrued
benefits and nonnegotiated benefits and to give more detailed
instructions for handling cases involving nonnegotiated benefits.

By Direction of the Chief Benefits Director

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 43**

**Washington, DC 20420 October 8, l993**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 18-i through 18-VI-9**: Remove these pages and insert 18-i
through 18-A-18 attached.

Chapter 18 has been revised in its entirety to incorporate information
and modify procedures relating to the Automated Medical Information
Exchange (AMIE) system.

AMIE information and instructions provided in this chapter are NOT
intended to be all inclusive. Users are expected to refer to the AMIE
User Manual, Version 2.5, for detailed information.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 44**

**Washington, DC 20420 November 8, 1993**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 10-I-3 through 10-I-6**: Remove these pages and insert pages
10-I-3 through 10-I-6 attached.

Paragraph 10.03b(2) is revised by removing a sentence that confused
eligibility criteria.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 45**

**Washington, DC 20420 November 26, l993**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures\" is changed as follows:

**Pages 16-VI-5 through 16-VI-6**: Remove these pages and insert pages
16-VI-5 through 16-VI-6 attached. This revision adds a reference to
paragraph 29.07e.

**Page 16-VI-15 through 16-VI-16:** Remove these pages and insert pages
16-VI-15 and 16-VI-16 attached. Paragraph 16.32d(3) is clarified to
distinguish secured and unsecured loans as they relate to just debts.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 84, dated 8/26/96**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 46**

**Washington, DC 20420 December 8, 1993**

Transmitted is a change to Part IV, \"Authorization Procedures,\" of
Veterans Benefits Administration Manual M21-1, \"Adjudication
Procedures - Compensation and Pension, Dependency and Indemnity
Compensation, Accrued Amounts, Burial Allowance, Special Benefits.\"

**Pages 8-II-1 through 8-II-4**: Remove these pages and substitute pages
8-II-1 through 8-II-4.

**Page 8-IV-1**: Remove this page and substitute page 8-IV-1.

**Pages 8-V-1 through 8-V-4:** Remove these pages and substitute pages
8-V-1 through 8-V-4.

**Pages 8-IX-3 and 8-IX-4**: Remove these pages and substitute pages
8-IX-3 and 8-IX-4.

**Page 8-XII-1**: Remove this page and substitute page 8-XII-1.

Subparagraph 8.05a(1) is amended to address a recent ruling by the Court
of Veterans Appeals in [Tomlin v. Brown]{.underline}, U.S. Vet. App.
91-2165, regarding acceptance of a notice of disagreement communicated
orally at a personal hearing. Although a written statement should be
solicited from the claimant at the time of the hearing, a transcription
of a personal hearing expressing disagreement will be accepted as formal
notice, and the date of transcription will be the date of filing.
Paragraph 8.16 has also been revised to make the same procedure
applicable for a substantive appeal presented at a hearing.

A proposed reduction of benefits is merely a preliminary action which is
not appealable. Subparagraph 8.05e is added to prohibit acceptance of a
notice of disagreement prior to the preparation of a final decision.
Paragraph 8.35 is similarly revised to remove a provision for accepting
notices of disagreement in such instances.

Subparagraph 8.12b is amended to clarify the extent of information
required in a supplemental statement of the case. The sections
pertaining to Issue, Decision, and Reasons For Decision are to be
repeated in full without use of the phrase \"as previously stated.\"

Paragraph 8.41 is amended to address a recent ruling by the Court of
Veterans Appeals in [Cates v. Brown]{.underline}, U.S. Vet. App.
91-2098. When an appeal for disability benefits is pending at death, a
new notice of disagreement will be required to certify the issue of
entitlement to accrued benefits for appellate review. If a BVA decision
is rendered after the death of an appellant for disability benefits, a
separate accrued decision will nevertheless be required and may be
separately appealed.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 47**

**Washington, DC 20420 February 25, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 28-i through 28-I-4**: Remove these pages and insert pages 28-i
through 28-I-4 attached.

Subparagraph 28.02b is added to explain when a claim may be denied as
\"not well grounded.\"

Subparagraph 28.04a is revised to include a description of proper
notification when a claim is denied as being not well grounded.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 48**

**Washington, DC 20420 February 20, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 23-i and 23-II-1 through 23-II-20**: Remove these pages and
insert pages 23-i and 23-II-1 through 23-II-20 attached.

Paragraph 23.06 is rewritten to remove material which provides
eligibility information which is applicable only to Loan Guaranty
personnel, and to add a new subsection which provides direction to
process VA pension related loans.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 49**

**Washington, DC 20420 March 30, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 22-I-1 and 22-I-2:** Remove these pages and insert pages 22-I-1
and 22-I-2 attached. Based on a recommendation from the VA General
Counsel, the note following 22.04c is removed. According to the General
Counsel, there is no authority to waive the offset provision of 38
U.S.C. 1151.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 50**

**Washington, DC 20420 April 4, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 3-i and 3-I-1 through 3-I-3**: Remove these pages and insert
pages 3-i and 3-I-1 through 3-I-3 attached.

Subparagraph d is added to Paragraph 3.02 stating that if a claim has
been denied because it was not well grounded, the claimant does not have
to submit new and material evidence with a subsequent claim on the same
issue.

Paragraph 3.06b(3) is changed for the sake of clarity.

Paragraph 3.07 is amended to add that for a subsequent claim to be
considered a duplicate claim, the prior claim that was disallowed must
have been well grounded.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 51**

**Washington, DC 20420 April 7, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-ix through 16-x**: remove these pages and insert pages 16-ix
through 16-x attached.

**Pages 16-VIII-3 through 16-VIII-4:** remove these pages and insert
pages 16-VIII-3 through 16-VIII-4 attached. This change adds paragraph
16.40e which incorporates O.G.C. Precedent Opinion 15-92 providing that
the value of a person\'s net worth will include the value of property
transferred to another when under the conditions of a life estate.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068, with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 52**

**Washington, DC 20420 May 19, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-I-15 through 16-I-18**: Remove these pages and insert pages
16-I-15 through 16-I-18 attached.

Paragraph 16.04c(9)(a) is amended to raise the estate limit for which a
formal administrative decision is needed from \$35,000 to \$50,000 and
to incorporate paragraph 16.04c(9)(c). The requirement to annotate the
award when the claimant reports a net worth of at least \$10,000 and
benefits are granted is eliminated.

Paragraph 16.04c(9)(c) is deleted.

Pages 16-II-1 through 16-II-2 and 16-II-13 through 6-II-14: Remove these
pages and insert pages

16-II-1 through 16-II-2 and 16-II-13 through 16-II-14 attached.

Paragraph 16.06d(1) is clarified to point out that the income of a child
who is the claimant is countable in determining the child\'s entitlement
to VA benefits.

Paragraph 16.09f(3) is amended to raise the estate limit for which a
formal administrative decision is needed from \$35,000 to \$50,000.

Pages 16-VIII-1 through 16-VIII-2: Remove these pages and insert pages
16-VIII-1 through 16-VIII-2 attached.

Paragraph 16.39e is amended to raise the estate limit for which a formal
administrative decision is required from \$35,000 to \$50,000.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 53**

**Washington, DC 20420 June 6, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

Pages **23-I-1 through 23-I-11**: Remove these pages and insert pages
23-I-1 through 23-I-11 attached.

A note is added to Paragraph 23.03a(2) to address a recent ruling by the
Court of Veterans Appeals in [Mays v. Brown]{.underline} in which the
Court has ruled that the statutory time limits for VA outpatient dental
treatment claims do not apply when the service department has failed to
comply with the notification requirements of 38 U.S.C. 1712(b).

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 82, dated 2/20/96**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 54**

**Washington, DC 20420 June 6, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 9-i**: Remove this page and insert page 9-i attached.

**Pages 9-I-1 through 9-I-11**: Remove these pages and insert pages
9-I-1 through 9-I-11.

**Pages 9-II-1 through 9-II-2**: Remove these pages and insert pages
9-II-1 through 9-II-2.

**Pages 9-II-7 through 9-II-9**: Remove these pages and insert pages
9-II-7 through 9-II-9.

Subparagraph 9.01 is revised to clarify the requirements of a
predetermination notice.

Subparagraph 9.05a(2) is revised to encompass fiduciaries as well as
beneficiaries as parties who may furnish information which may be a
basis for contemporaneous notice procedures.

Subparagraph 9.05a(4) is added to provide that adverse action on awards
in suspense may be taken with the use of contemporaneous notice
procedures.

Subparagraph 9.05a(6) is added to include a statement that
predetermination notice is not required when adverse action is based
upon a garnishment order where disability compensation is paid in lieu
of military retired pay.

Subparagraph 9.07a is added to define third party for VA purposes.

Subparagraph 9.07b(2) is updated to include the provisions of AMIE.

Subparagraph 9.07c(2) is revised to provide that predetermination
notices must be sent to beneficiaries in nursing homes as well as
hospitalized veterans.

Subparagraph 9.08c is revised to delete references to the W60 screen and
future diaries which are no longer used in controlling end product 600.

Subparagraph 9.10 is revised to include the regulation for a
predetermination hearing.

Subparagraph 9.10b is revised to include a statement that anyone who was
a part of the predetermination process must not conduct a hearing.

Subparagraph 9.13 is cross referenced with 9.05a(2).

Subparagraph 9.18a is revised to clarify that a timely requested hearing
is one that is received within 30 days of the predetermination notice.

Subparagraph 9.25 is added to include procedures for incarcerated
veteran cases.

Subparagaph 9.27b(2) is revised to eliminate the reference to the use of
diary controls.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 71, dated 6/12/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 55**

**Washington, DC 20420 June 27, 1994**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorizaton
Procedures,\" is changed as follows:

**Page 12-i:** Remove this page and insert page 12-i attached.

**Pages 12-III-1 through 12-III-4**: Insert these pages. Subchapter III
is added to provide instructions for processing the periodic
verification of dependents of compensation recipients and the
unremarried status of surviving spouses in receipt of DIC.

**RESCISSION**: Circular 21-89-5, Revised and Change 1, dated March 10,
1992.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 56**

**Washington, DC 20420 June 20, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 26-i:** Remove this page and insert page 26-i attached.

**Pages 26-I-5 through 26-I-8**: Remove these pages and insert pages
26-I-5 through 26-I-8 attached.

Paragraph 26.03 NOTE has been expanded to clarify that entitlement to
DIC under the provisions of 38 U.S.C. 1318 does not establish
entitlement to other benefits based on service-connected death.

**Pages 26-I-23 through 26-I-24**: Remove these pages and insert pages
26-I-23 through 26-I-24 attached.

Paragraph 26.13.1 has been added to incorporate DIC reform provisions
brought about by Public Law 102-568.

**Pages 26-IV-3 through 26-IV-4:** Remove these pages and insert pages
26-IV-3 through 26-IV-4 attached.

Paragraph 26.25e(1) has been revised to eliminate reference to SPU
generated transactions.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068, plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 57**

**Washington, DC 20420 July 19, 1994**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorizaton
Procedures,\" is changed as follows:

**Pages 31-i and 31-ii:** Remove these pages and insert pages 31-i
through 31-iii attached.

**Pages 31-V-I through 31-V-3**: Remove these pages and insert pages
31-V-1 through 31-V-2 attached. The verification procedures involving
the Department of Labor Black Lung match are simplified.

**Pages 31-IX-1 through 31-IX-16:** Insert these pages. Subchapter IX is
added to provide instructions for processing Income Verification Match
cases.

**Pages 31-X-1 through 31-X-2:** Insert these pages. Subchapter X is
added to provide instructions for processing the Veterans on Active Duty
and in Receipt of VA Benefits Match.

**Page 31-C-1**: Insert this page. Addendum C is added to provide a
sample of an Income Verification Match worksheet.

**Pages 31-D-1 through 31-D-13**: Insert these pages. Addendum D is
added to provide sample subpoenas for use in the IVM.

3\. **RESCISSIONS**: Circular 20-91-11, Revised, dated February 22,
1993, and Circular 21-86-5, dated June 18, 1986, with change 1, dated
November 24, 1986.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 58**

**Washington, DC 20420 July 26, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 28-I-1 through 28-I-5**: Remove these pages and insert pages
28-I-1 through 28-I-5 attached.

Subparagraph 28.02c is revised to clarify that denial notification
procedures are required when a confirmed and continued rating decision
is based on a routine future examination.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 59**

**Washington, DC 20420 August 2, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 28-II-1 through 28-II-2**: Remove these pages and insert pages
28-II-1 through 28-II-2 attached.

Paragraph 28.09 is amended to include a cross reference to Part VI,
paragraph 9.10 which provides the rating procedures when a claimant
fails to report for an examination.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 60**

**Washington, DC 20420 July 26, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 27-I-1 through 27-I-4**: Remove these pages and insert pages
27-I-1 through 27-I-5 attached.

Paragraph 27.08 is revised to incorporate the provisions of Office of
General Counsel Precedent Opinions (O.G.C. Prec.) 6-93 and 12-94.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 with 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 61**

**Washington, DC 20420 August 24, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 10-II-1 through 10-II-2**: Remove these pages and insert pages
10-II-1 through 10-II-2 attached.

Paragraph 10.08 is amended to provide a reference to the minimum active
duty requirements.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 74, dated 8/14/95**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 62**

**Washington, DC 20420 September 21, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 27-III-3 through 27-III-4:** Remove these pages and insert pages
27-III-3 through 27-III-4 attached.

Paragraph 27.42a(2) is amended to delete the reference to VA Form
21-5328, which has been discontinued.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 85, dated 9/27/96**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 63**

**Washington, D.C. 20420 October 12 , 1994**

Veterans Benefits Administration Manual, M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 35-i through 35-A-9:** Insert these pages. This constitutes the
addition of a new chapter to part IV.

This new chapter incorporates the March 8, 1989, General Counsel Opinion
which held that primary jurisdiction over appeals involving benefit
matters rests with the agency of original jurisdiction until such time
as the appeal is certified to the BVA and the record is transmitted. It
is also held that the use of Hearing Officers in place of three-member
hearing panels is consistent with applicable legal requirements.

The new chapter reflects the Court of Veterans Appeals decisions in
[Cuevas v.]{.underline} [Principi]{.underline}, 3 Vet. App. 542 (1992),
[Tomlin v. Brown]{.underline}, 5 Vet. App. 355 (1993), and [Jones v.
Derwinski]{.underline}, 1 Vet. App. 210 (1991).

Paragraph 35.05 reflects the Hearing Officer\'s expanded jurisdiction to
assign evaluations and effective dates when deciding the issue of new
and material evidence or basic service connection.

Paragraph 35.07 reflects the new Hearing Officer decision format which
mirrors the rating format. As with the rating decision, this format can
be provided as an attachment to the claimant\'s notification letter.
Hearing Officers are now authorized to prepare a Supplemental Statement
of the Case and, in certain circumstances, a Statement of the Case.

Subchapter III includes procedures for maintaining the Travel Board
hearing log. It also provides a new E-mail address for submission of the
monthly reports to Mail VBA 213D.

**Rescissions:** Circular 20-89-11 Revised with changes 1 and 2;
Circular 20-90-15 with changes 1, 2 and 3; Circular 21-91-18; VBA Manual
M21-1, Part I, pages 18-10 through 18-13. This constitutes a complete
rescission of M21-1, Part I as it existed prior to the revision of the
entire manual.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Rescinded per M21-1, Part IV, Change 84, dated 8/26/96**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 64**

**Washington, DC. 20420 October 11, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 8-i through 8-ii and 8-III-1 through 8-E-4**: Remove these pages
and substitute pages 8-i through 8-ii and 8-III-1 through 8-E-5
attached. This constitutes the addition of a new subchapter and many
renumbered paragraphs and pages.

Paragraph 8.09b is amended to show that a hearing officer can also
prepare and sign a statement of the case (SOC).

Paragraph 8.09c is amended to reflect a revised SOC format that conforms
to a standard format for all decision documents. This format consists of
four sections: Issue, Evidence, Decision and Reason and Bases. The SOC
will include two additional sections: Adjudicative Actions and Pertinent
Laws; Regulations; Rating Schedule Provisions. It is also amended to
reflect the United States Court of Veterans Appeals decision in [Grivois
v. Brown]{.underline}, 6 Vet. App. 136 (1994), which held that the
citation of 38 U.S.C. 5107(a) is required in all original statements of
the case.

Subchapter VI sets out new procedures for \"Advance Docketing of
Appeals.\"

Paragraph 8.35 is amended to suggest that VA Form 646, Statement of
Accredited Representative, is not to be completed until a request for
temporary transfer of claims folder is received from the Board of
Veterans\' Appeals (BVA).

Subchapter IX is revised to reflect the United States Court of Veterans
Appeals decision in [AB v. Brown]{.underline}, 6 Vet App. No. 35 (1993),
by eliminating references to VA \"withdrawing\" an appeal as there is no
regulatory authority for such action.

Subchapter X is amended to show VA Form 8, Certification of Appeal.

Subchapter XI is modified to reflect the United States Court of Appeals
decision in [Grottveit v. Brown]{.underline}, 5 Vet. App. 91 (1993), and
[Green v. Brown]{.underline}, 5 Vet. App. 83 (1993), which held that if
the BVA vacates a regional office decision because a claim is not well
grounded, the claimant can begin with a clean slate by filing a new
application.

Exhibit C is added to provide an example of BVA Advance Docket
Notification Letter.

By Direction of the Under Secretary For Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 65**

**Washington, DC 20420 November 3, 1994**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorizaton
Procedures,\" is changed as follows:

**Page 12-i**: Remove this page and insert page 12-i attached.

**Pages 12-I-1 through 12-III-4:** Remove these pages and insert pages
12-I-1 through 12-III-4 attached.

Subchapters I and II are revised to remove references to certified
copies.

Paragraph 12.01(7) is deleted to remove any references to presumptions.

Paragraph 12.14 is revised to incorporate the provisions of Public Laws
102-86 and 102-568 as they relate to the effect of the termination of a
surviving spouse\'s remarriage.

Paragraph 12.19 is revised to incorporate the provisions of Public Law
102-86 as it relates to the termination of a child\'s remarriage.

**Page 13-i**: Remove this page and insert page 13-i attached.

**Pages 13-I-1 through 13-II-6**: Remove these pages and insert pages
13-I-1 through 13-II-5 attached. References to certified copies are
deleted.

Paragraph 13.12 is amended to raise the estate amount from \$35,000 to
\$50,000, to coincide with estate limitations contained in Part IV,
Chapter 16.

This entire change is prepared in Word format in order to coincide with
the ARMS format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 66**

**Washington, D.C. 20420 January 12, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 18-i through 18-A-18:** Remove this chapter in its entirety and
insert pages 18-i through 18-A-19 attached.

The entire chapter has been repaginated to conform with the Automated
Reference Materials System (ARMS) format. The actual changes to text are
minimal.

Subparagraph 18.04(c)(2) has been revised to eliminate reference to a
monetary limit. Net worth determinations will be made based on the
criteria of 38 CFR 3.275.

Subparagraph 18.16d has been rewritten (l) to clarify that hospital or
nursing home care for rehabilitation can extend beyond the 3 month
period; (2) to clarify that the provisions of 38 CFR 3.551(h) apply if
during a period of treatment the primary purpose of care becomes
rehabilitation; and (3) to eliminate conflicting procedures regarding
readmission within 6 months of prior discharge.

Paragraph 18.18 has been rewritten to reflect that 38 CFR 3.551(f)
applies only to Section 306 pension cases.

Subparagraphs 18.31e(3) and (4) have been revised to comply with 38 CFR
3.862(b) which limits the monthly rate authorized to a non-VA
institution to \$60.

Subparagraph 18.37b has been revised to eliminate an obsolete reference
to an Op. Sol. and to correct CFR references.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 67**

**Washington, D.C. 20420 March 31, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 39-i through 39-7:** Insert these pages. This constitutes the
addition of a new chapter to part IV.

This new chapter incorporates procedures for processing Improved Pension
awards for certain beneficiaries in Medicaid nursing facilities who are
covered by a Medicaid plan.

The new chapter reflects the provisions of Public Law 101-508, Public
101-568, Public Law 103-66, and Public Law 103-446.

**Rescissions:** Circular 21-91-4 Revised with changes l, 2, and 3.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 68**

**Washington, DC 20420 March 31, 1995**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 22-i through 22-II-6:** Remove these pages and insert pages 22-i
through 22-II-5 attached.

Paragraph 22.08b is revised to emphasize that the special law 07 code
must be entered in the SLC field on the 401 Screen for both compensation
and DIC cases in which benefits are granted under 38 U.S.C. 1151 It is
also emphasized that this includes those cases in which a zero percent
1151 case first becomes compensable. IT IS EXTREMELY IMPORTANT THAT THE
SL 07 BE ENTERED IN ALL APPLICABLE CASES SO THAT THE 1151 INFORMATION
WILL BE ACCURATE IN OUR RECORDS.

This entire change is being printed in Word format in order to coincide
with the ARMS format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 69**

**Washington, DC 20420 May 10, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 14-i through 14-II-5:** Remove these pages and insert pages 14-i
through 14-II-5 attached.

The note after paragraph 14.09b is revised to coincide with the Court of
Veterans Appeals\' decision in [Kimberlin v. Brown]{.underline}, 5 Vet.
App.. 174 (1993). 38 CFR 3.807 (c) was amended effective December 6,
1994, to provide that entitlement to Dependents\' Educational Assistance
(chapter 35) may also be established when the disabilities are treated
as if service connected under 38 U.S.C. 1160.

This entire change is being printed in Word format in order to coincide
with the ARMS format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 70**

**Washington, DC 20420 May 25, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 20-i through 20-A-1:** Remove this chapter in its entirety and
insert pages 20-i through 20-A-1 attached.

The entire chapter has been repaginated to conform with the Automated
Reference Materials System (ARMS) format.

General references, examples, and rates have been updated throughout the
chapter. Some paragraphs have been renumbered,

SUBCHAPTER V, WAIVER OF DISABILITY BENEFITS DURING RESERVE TRAINING
DUTY, has been revised. Because we have been unable to obtain accurate
information from the Defense Management Data Center (DMDC), the one-time
waiver has been discontinued. One-time waivers are no longer valid and
those veterans wishing to retain military pay and allowance must once
again file annual waivers. Adjustments will not be automated as
previously anticipated. Upon receipt of the waiver, the regional office
will make the appropriate adjustment. Circular 21-93-7, Waiver Of
Disability Benefits To Receive Military Pay For Periods Of Reserve Duty,
dated June 24, 1993, is rescinded.

Subparagraph 20.34c *(previously 20.33c)* has been rewritten to comply
with 38 CFR 3.700(a)(3). For severance pay recoupment purposes, the
initial compensable rating does not include a rating based in whole or
in part on a need for hospitalization or a period of convalescence.

Paragraph 20.46 *(previously 20.44)* has been revised in accordance with
the Court of Veterans Appeals\' decision in *[Kimberlin v.
Brown]{.underline}*, 5 Vet. App. 174 (1993). Effective December 6, 1994,
38 CFR 3.807 has been amended to provide that entitlement to
Dependents\' Educational Assistance under 38 U.S.C. Chapter 35 may be
established in such cases where the disabilities are of paired organs or
extremities that are treated as service-connected under 38 U.S.C. 1160.

Paragraph 20.48 *(previously 20.46)* has been amended based upon O.G.C.
[Precedent 1-95]{.underline} dated

January 4, 1995. It was held that the procedures requiring payment of
increased improved pension to a surviving spouse when a veteran\'s child
not in the spouse\'s custody receives a protected apportionment, were
inconsistent with the provisions of 38 U.S.C. 1451(b) and (c) which
authorizes payment of the increased rate only when the veteran\'s child
is in the surviving spouse\'s custody.

Paragraph 20.81 has been added to provide information about Public Law
103-446 which amended 38 U.S.C. 1317, permitting those surviving spouses
eligible for Dependency and Indemnity Compensation (DIC) to elect
pension. Prior to November 2, 1994, this had been prohibited.

Paragraph 20.84 has been added to provide information about the
Radiation Exposure Compensation Act (RECA) of 1990. The Attorney General
is authorized to make payments as restitution to a limited class of
individuals with radiation-related diseases who had been employed during
a specified period in uranium mines in Colorado, Utah, Arizona, Wyoming,
or New Mexico, or who had been present during designated periods at, or
in, certain specified areas downwind of the Nevada Test Site, the
Pacific Proving Grounds, and the Trinity Test Site at Alamogordo, New
Mexico. A RECA payment satisfies all claims against the Government and
bars payment of compensation for the same condition or DIC based on
death resulting from the same condition.

20.85 has been added to reference chapter 39 for a surviving spouse DIC
recipient who elects death pension for the purpose of taking advantage
of the \$90 Medicaid provisions of 38 U.S.C. 5503(f).

**Pages IV-1 through IV-6:** The INDEX to Part IV is rescinded and
should be removed.

**Rescission:** Circular 21-93-7, Waiver Of Disability Benefits To
Receive Military Pay For Periods Of Reserve Duty, dated June 24, 1993.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 71**

**Washington, DC 20420 June 12, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Part IV, page i, Table of Contents**: Remove this page and insert page
i attached.

**Pages 38-i through 38-3**: remove these page and insert pages 38-i
through 38-II-2 attached.

This chapter has been renamed \"Court of Veterans Appeals\" in order to
broaden the material covered in the chapter. It now contains two
subchapters, one on Court Remands and one on Court Precedent Decisions.

Paragraph 38.02 is amended to reflect Public Law 103-446 (Veterans\'
Benefits Improvement Act of 1994) which requires special attention and
expeditious handling of remanded appeals.

Paragraph 38.03 is amended to include specific processing procedures for
priority handling of Court of Veterans Appeals (Court or COVA) cases.

Paragraph 38.04 incorporates O.G.C. Precedent Opinion 9-94 which held
that decisions of the Court which invalidated VA regulations or
statutory or regulatory interpretations do not have retroactive effect
in relation to prior \"final\" adjudications of claims but should be
given retroactive effect as they relate to claims still open on direct
review. This paragraph also incorporates the April 25, 1994, O.G.C.
Precedent Opinion 10-94 which held that effective dates involving Court
decisions may generally be no earlier than dates of claims. However, if
an award is predicated upon an administrative issue, such as an
amendment to a regulation, prompted by a judicial precedent, the
provisions of 38 CFR 3.114(a) may be applied. 38 CFR 3.114(a) does not
apply to awards of benefits based solely upon precedential decisions of
courts of law. It also includes the procedural requirement for cases
reinstated by the Court when VA did not furnish the claimant
notification as required under 38 U.S.C. 5103 (a).

**UNRELATED RESCISSIONS**: M21-1, part IV changes 1, 4, 5, 12, 21, 22,
23, 25, 27, 31, 41, 43, 48, 49, 51, and 55 and all Erratums thereto.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 72**

**Washington, DC 20420 July 14, 1995**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

Chapter 27: Remove pages 27-i through 27-C-2, and insert pages 27-i
through 27-C-2 attached.

Paragraphs 27.05a and b are amended to incorporate decisions in [De
Landicho v. Brown,]{.underline} and [Oseo v. Brown]{.underline}, 7 Vet.
App. 42 (1994), holding that issues on appeal to the Court of Veterans
Appeals at the date of any claimant\'s death are in a pending status and
accrued benefit applications must be sent. Any communication concerning
the death of the appellant which was submitted to the Court of Veterans
Appeals and subsequently furnished to VA by the Court may be acceptable
as an informal claim for accrued benefits.

The entire chapter is being printed in Word to correspond to the ARMS
format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus six copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 73**

**Washington, DC 20420 July 14, 1995**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-i through 16-xii:** Remove these pages and insert pages 16-i
through 16-xi attached.

**Pages 16-I-1 through 16-A-3:** Remove these pages and insert pages
16-I-1 through 16-A-3 attached.

Paragraphs 16.16 and 16.23a are revised to incorporate the provisions of
Public Law 103-446 that amended 38 U.S.C. 5306 to provide that an
application for pension or parents\' Dependency and Indemnity
Compensation (DIC) filed within one year after renouncement of that
benefit will not be treated as an original application and benefits will
be payable as if the renouncement had not occurred.

Paragraphs 16.41b and 16.41c are revised to incorporate [Martin v.
Brown]{.underline}, 6 Vet. App. 272 (1994), which held that when pension
benefits are paid as an accrued benefit, that benefit is not income for
VA purposes.

Paragraph 16.43 is revised to incorporate the provisions of Public Law
103-446 that hold any income received by an individual under the Alaska
Native Claims Settlement Act will not be countable as income for VA
purposes.

This entire change is being printed in Word format in order to coincide
with the ARMS format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 74**

**Washington, DC 20420 August 14, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-i through 31-D-13**: Remove these pages and substitute pages
31-i through 31-D-13 attached.

Paragraphs 31.42 and 31.45 are amended to reflect the fact that the
Internal Revenue Service is now the source of retirement income in the
Income Verification Match. Previously this information had been provided
by the Social Security Administration. This means that the Benefits
Delivery Center at Hines will no longer be able to send verification
letters to payers of retirement income.

Paragraph 31.70 is amended to provide for the disposal of IVM
information.

**RESCISSIONS:** M21-1, part IV, changes 11, 29, and 57 and all Erratums
thereto.

**UNRELATED RESCISSIONS:** M21-1, part IV, changes 3, 6, 15, 24, 42, 45,
52, 60, and 62 and all Eratums thereto.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 75**

**Washington, DC 20420 August 29, 1995**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 22-I-1 through 22-I-2:** Remove these pages and insert pages
22-I-1 through 22-I-2 attached.

Paragraph 22.04c is revised to incorporate General Counsel Opinion
07-94, which specifies that attorney\'s fees and other expenses related
to the claim are not deductible from the total amount awarded.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 76**

**Washington, DC 20420 September 18, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 12-II-3 through 12-II-8**: Remove these pages and substitute
pages 12-II-3 through 12-II-9 attached.

A note is added to paragraphs 12.16f (3) to incorporate General Counsel
Precedent Opinion 16-94, which provides that improved pension benefits,
generally, may not be apportioned to a child of the veteran who has been
adopted out of the veteran\'s family.

**Pages 12-III-3 through 12-III-4** : Remove these pages and substitute
pages 12-III-3 through 12-III 4 attached.

Paragraph 12.29 is amended to provide the RCS number for the annual
report due in Central Office and the report is simplified.

**UNRELATED RESCISSIONS:** M21-1, part IV, change 14 and all erratums
thereto.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 77**

**Washington, DC 20420 October 20, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 34-i through 34-C-1** Remove these pages and insert pages 34-i
through 34-C-1 attached.

Public Law 103-446 amended 38 U.S.C. 107 to eliminate the requirement
that compensation, DIC, or burial allowance based on certain Philippine
service deemed not to be active service for other purposes be paid in
Philippine pesos. The entire chapter has been amended to conform with
the provisions of Public Law 103-446.

Subparagraph 34.17 has been revised to eliminate reference to the Manila
no-pay record and special folder transfer procedures.

This entire change is being printed in Word format in order to coincide
with the ARMS format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 78**

**Washington, D.C. 20420 December 14, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 29-i through 29-A-2:** Remove this chapter in its entirety and
insert pages 29-i through 29-A-2 attached.

Public Law 103-271 amended 38 U.S.C. 1315 and 1506 to give the Secretary
of Veterans Affairs discretionary authority to require submission of
income and resource reports by recipients of income-based benefits. The
final rule implementing Public Law 103-271 was published on October 4,
1995, revising 38 CFR 3.256 and 3.277. The entire chapter has been made
to conform with the provisions of the amended regulations.

This entire change is being printed in Word format in order to coincide
with the ARMS format.

**RESCISSIONS:** M21-1, part IV, change 37 and all Erratums thereto.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 79**

**Washington, D.C. 20420 December 15, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-i through 16-A-3** Remove this chapter in its entirety and
insert pages 16-i through 16-A-3 attached.

Public Law 103-271 amended 38 U.S.C. 1315 and 1506 to give the Secretary
of Veterans Affairs discretionary authority to require submission of
income and resource reports by recipients of income-based benefits. The
final rule implementing Public Law 103-271 was published on October 4,
1995, revising 38 CFR 3.256 and 3.277. The entire chapter has been made
to conform with the provisions of the amended regulations.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 80**

**Washington, DC 20420 December 14, 1995**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is amended as follows:

Remove page 38-i and insert page 38-i attached.

Remove pages 38-II-1 through 38-II-2 and insert pages 38-II-1 through
38-II-2 attached.

Paragraph 38.04a is amended to show that decisions of the Court
invalidating VA regulations or regulatory interpretations do have
retroactive effect on pending claims.

Paragraphs 38.04b and 38.05 are revised slightly to clarify the
information provided.

Paragraph 38.06 is deleted in its entirety due to a ruling by the Court
of Veterans Appeals in [Edenfield v. Brown]{.underline}, U.S. Vet. App.
92-1263, November 1, 1995.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 81**

**Washington, DC 20420 January 18, 1996**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 24-i and 24-I-1 through 24-II-1:** Remove these pages and
substitute pages 24-1 and 24-I-1 through 24-A-2 attached.

Subchapters I and II have been changed to show that the Adjudication
activity will input FISA transactions.

Note that other chapters in M21-1 may be affected by this change and
will be updated as soon as possible.

The entire chapter is prepared in Word in order to conform to the ARMS
format.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus six copies for each Veterans Service
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 82**

**Washington, D.C. 20420 February 20, 1996**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 9-i through 9-E-7:** Remove this chapter in its entirety and
insert pages 9-i through 9-E-6 attached.

Paragraph 9.01 has been amended to indicate that claimants and their
designated representatives are entitled to notice and that the notices
must be sent to the latest address of record for both. Failure to
provide both parties proper notice will result in the appeal period not
starting until both parties have been given notice of the decision and
appellate rights. This change incorporates the decision in Leo v. Brown,
8 Vet. App. XXX (1995), which held that VA is required to direct all
correspondence intended for the claimant\'s representative to the
address the veteran provided on the pertinent VA forms. The Court stated
that a claimant can appoint a national veterans\' service organization
and that the claimant may also specify the address that may serve as the
point of communication between VA and the veteran\'s service
representative.

The entire chapter has been amended to delete references to memorandum
ratings. All references to rating boards have been changed to rating
activity.

The entire chapter is being printed in Word to correspond to the ARMS
format.

**RESCISSIONS:** M21-1, part IV, change 54 and all Erratums thereto.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 6 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 83**

**Washington, DC 20420 March 25, 1996**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 11-i through 11-F-6:** Remove this chapter in its entirety and
insert pages 11-i through 11-F-7 attached.

Paragraphs 11.03c and 11.04f(1) have been amended to indicate that the
rating activity will determine the issue in cases involving suicidal
attempts. This change incorporates the decision in *Elkins v.
Brown***,**

8 Vet. App. 391 (1995), which held that service connection under the
rubric of \"mental unsoundness,\" presumed to be the result of suicide
or a bona fide attempt, may be granted only where there is present a
service-connectable disability and all the requirements for service
connection are established.

Paragraph 11.20e has been changed to indicate that requests for FBI and
passport inquiries are to be made to Security and Law Enforcement (07C).

Paragraphs 11.29g and h have been amended to indicate that
administrative decisions are required when the corpus of estate is
\$50,000 or more as stated in paragraphs 13.12 and 16.09f.

Paragraph 11.31 a(2)(d) has been changed to incorporate the instructions
in Compensation and Pension Service All-Station Letter 5-64 which dealt
with allegations involving clear and unmistakable error.

In Figures 11-1 and 11-2, all references to veteran have been changed to
the former service member to be consistent with the actual wording in 38
CFR 3.312.

Figure 11-3 has been changed to allow the letter to be used in both live
and death cases. If desired, the name of the individual may be used in
lieu of the phrase \"the former service member.\"

Figure 11-4 has been added to provide suggested language for motions for
reconsideration notifications.

The entire chapter has been amended to delete references to memorandum
ratings. All references to rating boards have been changed to rating
activity. Other technical corrections have been made.

The entire chapter is being printed in Word to correspond to the ARMS
format.

**RESCISSIONS:** M21-1, part IV, change 39 and all erratums thereto;
Compensation and Pension Service All-Station Letter 5-64, dated July 28,
1995.

By Direction of the Under Secretary for Benefits

J. Gary Hickman, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus six copies for each Veterans Service
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 84**

**Washington, DC 20420 August 26, 1996**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 8-i through 8-E-5:** Remove these pages and insert pages 8-i
through 8-E-9 attached.

Subparagraph 8.11c has been added to state that an SSOC will constitute
a decisional document in any instance in which the rating activity or
Hearing Officer confirms a decision at issue in the appellate process. A
separate confirmed rating or Hearing Officer decision will no longer be
required in these cases.

Paragraph 8.19 is amended to state that Adjudication management must
ensure that appeals ready for code 41, precertification/certification
status are properly reviewed and timely handled.

Paragraph 8.25 is amended to provide the representative of the service
organization an opportunity to execute VA Form 646 prior to code 41,
precertification status.

Paragraphs 8.26 and 8.38 are amended to require completion of the
precertification/certification worksheet for each case reviewed at time
of precertification. The worksheet will be filed in the claims folder
until the case is decided by BVA.

Paragraph 8.41 is amended to reflect BVA points of contact when action
is required after precertifi-

cation and transfer of the claims folder.

Paragraph 8.44 is amended to reflect Public Law 103-446 (Veterans\'
Benefits Improvement Act of 1994) which requires special attention for
and expeditious handling of remanded appeals.

Paragraph 8.45 is amended to include specific processing procedures for
priority handling of Court of Veterans Appeals (Court or COVA) cases.

Paragraph 8.47 is revised in accordance with the Court of Veterans
Appeals decisions in *Cates v. Brown, 5 Vet. App. 399 (1993), Oseo v.
Brown and Landicho v. Brown, 7 Vet. App. 42 (1994)*, and *Edmonds v.
Brown,* 9 Vet. App. 159 (1996), to indicate that we must notify BVA of
the appellant\'s death and furnish an accrued application to the
identified potential claimant. It is also amended to reflect that a new
notice of disagreement will be required, even though a disability appeal
was pending at death, to certify the issue of entitlement to accrued
benefits for appellate review. An accrued benefits determination must be
made. If the decision is adverse, the accrued benefits claimant may
initiate an appeal.

**RESCISSIONS:** M21-1, part IV, changes 13, 46, and 64 and all erratums
thereto.

By Direction of the Under Secretary for Benefits

Jack Ross, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068 plus three copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 85**

**Washington, DC 20420 September 27, 1996**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 35-i through 35-A-9**: remove these page and substitute pages
35-i through 35-A-9 attached.

In accordance with 38 CFR 20.703, subparagraph 35.20b(4) is amended to
state that there is no right to a hearing before the Travel Board until
a substantive appeal (VA Form 9) is filed.

In accordance with 38 CFR 19.76, subparagraph 35.20c(2) is amended to
reduce the 60-day notice to 30 days. An appellant and representative
will be given a 30-day notice of the place and time of a Travel Board
Hearing.

Subparagraph 35.20e is added to state that when the Travel Board Hearing
has been held, immediately transfer the claims folder to the BVA. The
only exception is when the Board member directs the regional office to
perform additional development actions.

The entire chapter is being printed in Word.

**Rescission:** M21-1, part IV, change 63 and all erratums thereto.

By Direction of the Under Secretary for Benefits

Jack Ross, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068 plus three copies for each Veterans services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 86**

**Washington, DC 20420 October 7, 1996**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 29-i through 29-v:** Remove these pages and substitute pages
29-i through 29-v attached.

**Pages 29-III-1 through 29-III-11:** Remove these pages and substitute
pages 29-III-1 through 29-III-11 attached.

Paragraph 29.06a is amended to state that telephone and FAX may be used
for developing incomplete EVRs.

Paragraph 29.07c(1) is amended to increase the level of interest-bearing
assets which require development for interest income from \$2,000 to
\$5,000 where interest of less than 3 percent is reported. A pensioner
might have \$2,000 or more in an interest-bearing checking account which
typically pays interest of less than 3 percent. However, if the
beneficiary has interest-bearing assets of \$5,000 or more, development
should be initiated to determine whether the assets are in a certificate
of deposit or other instrument paying interest of more than 3 percent.

Paragraph 29.07h is added to provide instructions for making medical
expense adjustments where overlapping income reporting periods are a
factor.

Paragraph 29.07i is added to provide instructions for determining
countable income in EVR-exempt cases where the beneficiary reports
medical expenses. Former paragraphs 29.07h and 29.07i are redesignated
paragraphs 29.07j and 29.07k respectively.

Paragraph 29.07j is amended to state that where an Improved Pension
beneficiary answers \"yes\" to the EVR question \"Are you a patient in a
nursing home?\" but does not specifically claim aid and attendance,
adjudication should advise the beneficiary of the availability of the
benefit and of the evidence needed to establish entitlement but that no
pending issue control should be established for the special monthly
pension issue. If a specific claim for aid and attendance is received
within 1 year of the date of receipt of an EVR showing nursing home
status or within 1 year of any evidence request initiated as a result of
the nursing home status shown on the EVR and entitlement to aid and
attendance is established, the date of receipt of the EVR can be used
for effective date purposes.

Paragraph 29.08c is amended to state that where a section 306 or Old Law
pensioner answers \"yes\" to the EVR question \"Are you a patient in a
nursing home?\" but does not specifically claim aid and attendance,
adjudication should advise the beneficiary of the availability of the
benefit and of the evidence needed to establish entitlement but that no
pending issue control should be established for the special monthly
pension issue. If a formal election of Improved Pension is received
within 1 year of the date of receipt of an EVR showing nursing home
status or within 1 year of any evidence request initiated as a result of
the nursing home status shown on the EVR and entitlement to Special
Monthly Pension is established, the EVR can be considered a conditional
election of Improved Pension.

Paragraph 29.09d is amended to state that where a parent answers \"yes\"
to the EVR question \"Are you a patient in a nursing home?\" but does
not specifically claim aid and attendance, adjudication should advise
the beneficiary of the availability of the benefit and of the evidence
needed to establish entitlement but that no pending issue control should
be established for the aid and attendance issue. If a specific claim for
aid and attendance is received within 1 year of the date of receipt of
an EVR showing nursing home status or within 1 year of any evidence
request initiated as a result of the nursing home status shown on the
EVR and entitlement to aid and attendance is established, the date of
receipt of the EVR can be used for effective date purposes.

Paragraph 29.09i is added to provide instructions for determining
countable income in EVR-exempt cases where a DIC parent reports medical
expenses.

By Direction of the Under Secretary for Benefits

John Montgomery, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068 plus three copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 87**

**Washington, DC 20420 November 27, 1996**

Veterans Benefits Administration Manual M21-1, part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 18-i through 18-ii and 18-III-1 through 18-III-8**: Remove these
pages and substitute pages 18-i through 18-ii and 18-III-1 through
18-III-8 attached.

Subparagraph 18.15d(1) is amended to state that on the 401 Screen enter
the date of admission in the institutionalized veteran FROM date field
beside the appropriate treatment facility station number to effect
reduction due to hospitalization.

Subparagraph 18.15e, is revised to incorporate the provisions of Public
Law 102-568 that amended

38 U.S.C. 5503 to provide that during the period November 1, 1992,
through September 30, 1997, any Improved Pension in excess of \$90 per
month to which the veteran would otherwise be entitled shall be
deposited in a revolving fund at the VA medical facility furnishing
nursing home care and shall be available to help defray operating
expenses of that medical center.

By Direction of the Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus three copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 88**

**Washington, DC 20420 December 16, 1996**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 20-i through 20-iii and 20-VI-1 through 20-VI-9**: Remove these
pages and insert pages 20-i through 20-iii and 20-VI-1 through 20-VI-9
attached.

Paragraph 20.32 is amended to implement the provisions of section 653 of
Public Law 104-201. Section 653 provides that with respect to payments
received after September 30, 1996, VA shall recoup the amount of
severance, separation, or readjustment pay received after withholding
for Federal income tax.

Paragraph 20.33 is amended to require confirmation of whether the amount
of severance, separation, or readjustment pay reported by the service
department is before or after tax when the payment was received after
September 30, 1996.

Paragraph 20.34b is amended to show that the provisions of Public Law
104-201 apply to the Special Separation Benefit under 10 U.S.C. 1174a.

Paragraph 20.34c(1)(b) NOTE is amended to state that where a veteran
received disability severance pay for severance and nonseverance
disabilities, special monthly compensation (SMC) should not be recouped
if nonseverance disabilities would support payment of the SMC rate to
which the veteran is entitled.

Paragraph 20.35a(1) is amended to show that withholding code 8 should be
used in Special Separation Benefit (SSB) cases.

Paragraph 20.35a(2): A NOTE is added to show that the withholding amount
must be manually calculated where the additional amount for special
monthly compensation is to be recouped in a disability severance pay
case involving both severance and nonseverance disabilities.

Paragraph 20.39 is amended to explain that the \"previously disallowed
claims of readjustment pay\" refer to claims disallowed prior to 1962 at
which time claimants had to elect between disability compensation and
readjustment pay.

Various cross references are added and updated and editorial changes are
made.

By Direction of the Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus three copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 89**

**Washington, DC 20420 December 23, 1996**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 12-i through 12-I-16**: Remove these pages and substitute pages
12-i through 12-I-16 attached.

Paragraph 12.04 is amended to implement VAOPGCPREC 58-91 which held that
lack of residence in a state recognizing common law marriages is not a
bar to establishment of a common law marriage and to show that an
administrative decision is required to resolve a claimed common law
marriage even though there was no residence in a state recognizing
common law marriages.

A NOTE is added to paragraph 12.10f to show that a marriage can be
deemed valid under 38 CFR 3.52 if the impediment to the marriage is lack
of residence in a state recognizing common law marriages. The NOTE
refers to VAOPGCPREC 58-91.

Paragraph 12.11b is amended to show the delimiting date for pension
claims based on a veteran\'s Persian Gulf War service.

By Direction of the Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus three copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 90**

**Washington, DC 20420 February 14, 1997**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 11-i through 11-ii**: Remove these pages and substitute pages
11i through 11-ii attached.

**Pages 11-III-2 through 11-III-5**: Remove these pages and substitute
pages 11-III-2 through 11-III-5 attached.

Paragraph 11.20e is removed and paragraph 11.20f is redesignated as
paragraph 11.20e. Missing veteran letters should no longer be sent to
the Office of Security and Law Enforcement (07). That office has
terminated the missing veterans program.

By Direction of the Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 91**

**Washington, DC 20420 May 1, 1997**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 12-III-3 through 12-III-4**: Remove these pages and substitute
pages 12-III-3 through 12-III-4 attached.

Paragraph 12.25a is amended to show that if a verification form sent to
a beneficiary is returned as undeliverable and the beneficiary receives
VA benefits via DD/EFT, a letter should be sent asking the financial
institution to furnish the beneficiary\'s current mailing address.

By Direction of the Acting Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 92**

**Washington, DC 20420 July 8, 1997**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 25-II-1 through 25-II-6**: Remove these pages and substitute
pages 25-II-1 through 25-II-5 attached.

Paragraph 25.04a NOTE 3 is amended to refer to paragraph 25.09d for
information about the effect of incarceration on payment of the clothing
allowance.

Paragraph 25.04a(3) is amended to show that payment will be at a rate
ending in \$.50 where payment is reduced to one-half of the 10 percent
rate and the 10 percent rate ends in an odd dollar amount.

Paragraph 25.04a(6) NOTE is corrected to show that YES should be entered
in the INCARCERATION IND field of the M15 screen in any pension case
where the beneficiary is incarcerated and pension is apportioned.

Paragraph 25.04b(2) is amended to remove references to referring
incarcerated individual unemployability cases to the rating board to
determine continued entitlement based on removal from the "work
possible" environment. In VA OPGPREC 13-97 General Counsel held that
there was no statutory or regulatory authority for reducing an
individual unemployability award based solely on an individual's removal
from the "work possible" environment.

**Pages 25-III-1 through 25-III-4**: Remove these pages and substitute
pages 25-III-1 through 25-III-3 attached.

Paragraph 25.05a is amended to show that if a notice of a VA examination
sent to a veteran is returned as undeliverable and the veteran receives
VA benefits via DD/EFT, a letter should be sent asking the financial
institution to furnish the veteran\'s current mailing address.

**Pages 25-VI-1 through 25-VI-4**: Remove these pages and substitute
pages 25-VI-1 through 25-VI-5 attached.

Paragraph 25.09d is amended to provide procedures for withholding
clothing allowance payments when a veteran is incarcerated for a period
of more than 60 days and is furnished clothing without charge by the
institution. This change is required by section 502 of Public Law
104-275 and is effective October 9, 1996.

**RESCISSIONS**: M21-1, Part IV, Changes 10 and 36.

By Direction of the Acting Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 93**

**Washington, DC 20420 July 8, 1997**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 20-i through 20-I-3**: Remove these pages and substitute pages
20-i through 20-I-3 attached.

Paragraph 20.02b(2) is amended because VAOPGCPREC 12-96 stated that it
contained inaccuracies and, to the extent that it could be read as
suggesting that recoupment of non-disability severance payments made
pursuant to section 631 of Public Law 96-513 is not required, would be
without effect. The heading of

paragraph 20.02b(2) is changed to \"Non-Disability Severance Pay under
Former Chapters 359, 360, 859, and 860 of 10 U.S.C.\" to more accurately
reflect the legal basis for the payments in question. A cross-reference
to paragraph 20.40 is added.

**Pages 20-VI-1 through 20-VI-9**: Remove these pages and substitute
pages 20-VI-1 through 20-VI-10 attached.

Paragraph 20.32a(8) is added to provide information about how to handle
Reservists\' Involuntary Separation Pay (RISP) under section 4418 of
Public Law 102-484. In VAOPGCPREC 9-96 the General Counsel held that VA
is required to offset disability compensation to recoup the amount of
RISP received by a veteran, provided the VA compensation is for a
disability incurred in or aggravated by service prior to the date of
receipt of RISP.

Paragraph 20.32a(9) is added to provide information about the
Reservists\' Special Separation Pay (RSSP) under section 4416 of Public
Law 102-484. In VAOPGCPREC 9-96 the General Counsel held that VA is not
required to offset disability compensation to recoup the amount of RSSP
received by a veteran.

Paragraph 20.35b(3) is added to state that the \"after tax\" amount
should be entered on the BIRLS MSC screen where severance, readjustment,
or separation pay was received after September 30, 1996.

Paragraph 20.40 is revised in accordance with VAOPGCPREC 12-96 to show
that if the veteran established entitlement to compensation on or after
September 15, 1981, any separation, readjustment or non-disability
severance pay is subject to recoupment at the 100 percent rate.

Various cross references are added and editorial changes are made.

**RESCISSION**: M21-1, part IV, change 88.

By Direction of the Acting Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 94**

**Washington, DC 20420 July 8, 1997**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 21-i**. Remove this page and substitute page 21-i attached.

**Pages 21-I-1 through 21-F-3**: Remove these pages and substitute pages
21-I-1 through 21-F-3 attached.

Paragraph 21.06b is amended to state that special law code 06 should not
be used on an Improved Pension award to a veteran in receipt of military
retired pay.

Paragraph 21.06c is amended to show that the Cleveland Defense Finance
and Accounting Service (DFAS) is responsible for retired pay accounts
for the Army, Navy, Air Force, and Marine Corps. The individual services
no longer have separate retired pay centers.

Paragraph 21.06d(2) is amended to state that an original, reopened, or
increased award involving a reduction in military retired pay scheduled
for the first of the current month should not be authorized in a cycle
that ends after the 14th of the month. If the award is authorized in a
cycle that ends after the 14th of the month, the increase should be
effective the first of the next month. The prohibition against
authorizing retired pay cases in the last cycle of the month has been
removed to reflect a programming change. The system will no longer
reject an award with special law code 06 which is authorized into the
last cycle of the month. The requirement for maintaining a control in
total waiver cases is removed since retroactive pay information is
provided automatically by the retired pay centers.

Paragraph 21.06d(3) is amended to show that a local letter rather than
VA Form 21-651a, "Notice of Election of Compensation in Lieu of Retired
Pay or Waiver of Retired Pay to Secure Compensation from Department of
Veterans Affairs," should be used to notify retired pay centers of award
adjustments.

Paragraph 21.07b is amended to furnish a format for locally prepared
letters to retired pay centers and to state that the requested date of
reduction in military retired pay cannot be earlier than the first day
of the following month if a letter requesting reduction in military
retired pay is released after the 5th of the current month.

Paragraph 21.07e is amended to show that a local letter rather than VA
Form 21-651a should be used to communicate with retired pay centers.

Paragraph 21.07f is amended to show that a copy of VA Form 21-651,
"Election of Compensation in Lieu of Retired Pay or Waiver of Retired
Pay to Secure Compensation from Department of Veterans Affairs," should
be sent to retired pay centers only when requested by the finance center
and that information about VA awards should be furnished on a local
letter rather than on VA Form 21-651.

Paragraph 21.07g is amended to show that retired pay centers will not
return copies of VA Form 21-651.

Paragraph 21.07h(2) is amended to show that a local letter rather than
VA Form 21-651a should be used to furnish information to the retired pay
centers where an identification discrepancy did not permit automatic
notice to the retired pay center of a VA legislative increase.

**M21-1, Part IV July 8, 1997**

**Change 94**

Paragraph 21.07h(7) is added to furnish detailed instructions for
working the NRPS Legislative Increase Nonreceipt Report which is
furnished by Cleveland DFAS after a legislative adjustment.

Paragraph 21.07i is added concerning appointment of a retired pay
coordinator to be the single point of contact in the regional office for
telephone inquiries to the Cleveland DFAS.

Various editorial changes are made.

**RESCISSION**: M21-1, part IV, change 38.

By Direction of the Acting Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 95**

**Washington, DC 20420 September 9, 1997**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 9-i through 9-I-10**: Remove these pages and substitute pages
9-i through 9-I-10 attached.

Paragraph 9.04 is amended to show that if correspondence to a claimant
is returned as undeliverable and the claimant receives VA benefits via
DD/EFT, a letter should be sent asking the financial institution to
furnish the claimant\'s current mailing address.

By Direction of the Acting Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 96**

**Washington, DC 20420 August 27, 1997**

Veterans Benefits Administration Manual M21-1, part IV, "Authorization
Procedures,\" is changed as follows:

**Pages 35-i and 35-I-1 through 35-II-7**: Remove these pages and
substitute 35-i and 35-I-1 through 35-II-7 attached.

Although personal hearings will be transcribed in the majority of cases,
subparagraph 35.02n has been revised to allow that a transcript of a
personal hearing need not be prepared under certain circumstances.

By Direction of the Acting Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 97**

**Washington, DC 20420 March 2 , 1998**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-i through 31-ii**: Remove these pages and substitute pages
31-i through 31-iii attached.

**Pages 31-V-1 through 31-VI-2**: Remove these pages and substitute
pages 31-V-1 through 31-VI-3 attached.

An indefinite moratorium is in effect on running the Department of Labor
and Social Security Administration Black Lung matches. Therefore,
information about the Department of Labor and Social Security
Administration Black Lung matches has been removed. Subchapter V has
been renamed \"Social Security Death Match\" and information about the
Social Security death match which was in Circular 21-91-8 has been
included in Subchapter V. Subchapter VI has been renamed \"Semiannual
Review of Potential Duplicate Payment Cases\" and information about the
semiannual potential duplicate payments project which was in Circular
20-85-34 Revised has been included in Subchapter VI.

**Pages 31-IX-1 through 31-IX-14**: Remove these pages and substitute
pages 31-IX-1 through 31-IX-14 attached.

Paragraph 31.45 is amended to show that IVM recipient letters are bulk
mailed from Hines BDC to regional offices so regional offices can screen
and release recipient letters.

Paragraph 31.69b is amended to require that the annual briefing of
employees who handle IVM information include information about the
provisions of sections 7213(a) and 7431 of the Internal Revenue Code
concerning criminal and civil penalties for unauthorized disclosure of
tax data.

Paragraph 31.69d is amended to state that Board of Veterans\' Appeals
employees have a \"need to know\" with respect to IVM materials where an
appeal involves an IVM issue.

Paragraph 31.70f is amended to show that IRS requires that IVM documents
be destroyed by shredding into 5/16-inch wide or smaller strips (as
opposed to 5/15-inch wide or smaller strips).

Paragraph 31.71 is amended to state that the IVM folder should accompany
a claims folder which is transferred to the Board of Veterans\' Appeals
on an IVM issue.

**Pages 31-XI-1 through 31-XI-2**: Add these pages after page 31-X-2.

A new subchapter XI is added to furnish instructions for processing the
match with the Bureau of Prisons. The match will identify VA
beneficiaries and dependents who are Federal prisoners in facilities
under the jurisdiction of the Bureau of Prisons.

**Page 31-D-13**: Remove this page and substitute pages 31-D-13 through
31-F-2 attached.

Addendum E shows the layout of the Bureau of Prisons match worksheet.
Addendum F describes the fields on the Bureau of Prisons match worksheet

**M21-1, Part IV March 2, 1998**

**Change 97**

**RESCISSIONS**: Circular 20-85-34 Revised.

Circular 21-91-8 and all changes thereto.

By Direction of the Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

. Veterans Benefits Administration Manual M21-1, Part IV, "Authorization
Procedures," is changed as follows:

**Pages 28-i and 28-I-3 through 28-I-4:** Remove these pages and
substitute pages 28-i and 28-I-3 through 28-I-4 attached.

Paragraph 28.05 is revised to state that whereas a formal disallowance
on the 405 screen is not to be processed after a determination is made
that a beneficiary currently in receipt of benefits is not entitled to a
grant or continuation of an additional amount, award actions will be
needed in some cases to update master record data or effect a
discontinuation of additional benefits. These procedures will help
ensure the accuracy and completeness of master record data.

The paragraph has received minor rewrites for clarification purposes.

By Direction of the Under Secretary for Benefits

Kristine A. Moffitt, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 99**

**Washington, DC 20420 May 15, 1998**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 11-I-1 through 11-I-2**: Remove these pages and substitute pages
11-I-1 through 11-I-2 attached.

Paragraph 11.01a(4) is added to include the requirement that
determinations of status be supported by a preponderance of the
evidence. This change is based on the Court of Veterans Appeals decision
in *Laruan v. West*, Docket No. 96-179.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 100**

**Washington, DC 20420 June 23, 1998**

Veterans Benefits Administration Manual M21-1, Part IV, "Authorization
Procedures," is changed as follows:

**Pages 33-i through 33-II-5:** Remove these pages and substitute pages
33-i through 33-II-5 attached.

Paragraph 33.04c(1) is amended to include reference to the Service
Center Manager as well as Adjudication Officer.

Paragraph 33.10d is amended to provide the correct address for the
Washington Regional Office.

Paragraph 33.13b(3) is amended to change the reference from Target to
BDN.

Other minor editorial changes have been made throughout the chapter.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**"Local Reproduction Authorized"**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 101**

**Washington, DC 20420 September 4 , 1998**

Veterans Benefits Administration Manual M21-1, Part IV, "Authorization
Procedures," is changed as follows:

**Pages 39-1 and 39-2:** Remove these pages and substitute pages 39-1
and 39-2 attached.

Paragraph 39.01(c) is revised to show that the statutory provisions of
this chapter have been extended to September 30, 2002 by Public Law
105-33, Section 8015.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 102**

**Washington, DC 20420 October 19, 1998**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-i through 31-iii**: Remove these pages and substitute pages
31-i through 31-iii attached.

**Page 31-V-3**: Remove this page and substitute pages 31-V-3 and
31-V-4.

A new paragraph 31.23.1 is added to furnish procedures for following up
on Social Security Administration (SSA) Death Match cases which do not
appear to the system to have been adjusted. The new procedures are in
response to a recommendation by the Office of Inspector General that VA
Central Office insure that field stations receive and take action on SSA
Death Match writeouts. Listings of current and prior month cases for
which a SSA Death Match writeout should have been issued will be
furnished to field stations and to VACO.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 103**

**Washington, DC 20420 November 9, 1998**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 12-i:** Remove this page and substitute page 12-i attached.

**- Pages 12-I-13 through 12-I-16**: Remove these pages and substitute
pages 12-I-13 through 12-I-17 attached.

Paragraph 12.11a is amended to show that marriage dates under 38 CFR
3.54 are not an issue if the marriage occurred before or during the
veteran's service.

Paragraph 12.13f is added to show that the bar to granting DIC benefits
because of inferred remarriage does not apply if the surviving spouse
ceases living with another person and holding himself or herself out
openly to the public as that person's spouse. This change was made by
the Veterans Benefits Act of 1998 and is effective October 1, 1998.
Former paragraphs f, g, and h are redesignated as paragraphs g, h, and i
respectively.

Paragraph 12.14f is added to show that effective October 1, 1998, the
Veterans Benefits Act of 1998 removed remarriage of a surviving spouse
of a veteran as a bar to payment of DIC. Therefore, effective October 1,
1998, eligibility for DIC is established in any case in which the
remarriage of the surviving spouse is terminated by death, divorce, or
annulment.

**Pages 20-VI-1 through 20-VI-4**: Remove these pages and substitute
pages 20-VI-1 through 20-VI-4 attached.

Paragraph 20.32a(2) is amended to delete language which indicated that
readjustment pay under 10 U.S.C. 687 was payable only to Reserve
officers below the grade of major. Further review of 10 U.S.C. 687
reveals no requirement that the officer had to be below the grade of
major to receive readjustment pay under 10 U.S.C. 687.

Paragraph 20.34b is amended to show that VA should recoup the amount of
Special Separation Benefit (SSB) received by the veteran after
withholding for Federal income tax, regardless of when the SSB was
received. This implements a provision of the Veterans Benefits Act of
1998. Previously, "after tax" SSB was recouped where payments were
received on or after October 1, 1996, but the gross amount was recouped
where payments were received prior to October 1, 1996.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 104**

**Washington, DC 20420 December 29, 1998**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 8-III-1 through 8-III-3**: Remove these pages and substitute
pages 8-III-1 through 8-III-3 attached.

The Note at paragraph 8.08b(6) is changed to state that the
authorization activity and the Committee on Waivers and Compromises
should jointly prepare and sign the Statement of the Case where the
validity of a debt and denial of waiver are appealed simultaneously.
This is based on VAOGCPREC 6-98.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 105**

**Washington, DC 20420 December 29 , 1998**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 24-i through 24-A-2**: Remove these pages and substitute pages
24-i through 24-A-2 attached.

A new paragraph 24.06 is added to furnish procedures for where the
validity of a debt is disputed simultaneously with a request for waiver
of the overpayment. These procedures are based on VAOGCPREC 6-98.

Paragraphs 24.07 through 24.13 have been renumbered.

**RESCISSION:** M21-1, part IV, change 81.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 106**

**Washington, DC 20420 May 14, 1999**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 32-i through 32-A-1**: Remove these pages and substitute pages
32-i through 32-A-1 attached.

This is a complete rewrite of the chapter on REPS claims. The following
are the major changes:

Paragraph 32.02 is changed to require that each regional office appoint
a REPS liaison person to handle and control REPS claims. The REPS
liaison will be responsible for expediting REPS claims and answering
inquiries from the St. Louis Regional Office.

Paragraph 32.03 is changed to provide that regional offices will send
all REPS claims to the St. Louis Regional Office without establishing a
control or taking any further action. Processing of the claim will be
managed by the St. Louis Regional Office.

Paragraph 32.05 is changed to provide that regional offices will not
establish pending issues on REPS claims until the St. Louis Regional
Office faxes a copy of the claim to the regional office.

Paragraph 32.06 is changed to show that the faxed copy of the REPS claim
will be referred to the REPS liaison at the regional office for further
processing and control.

Paragraph 32.08 is amended to include additional sample memoranda for
REPS eligibility determinations.

Paragraph 32.15 is changed to show that the REPS liaison person at the
regional office will fax the application along with additional
information for qualifying cases back to the St. Louis Regional Office
for further processing after an eligibility determination has been made.

Paragraph 32.17 is changed to show that the regional office will notify
the St. Louis Regional Office via fax if a REPS claim has been
disallowed.

Paragraph 32.18 is changed to show that REPS beneficiaries may telephone
the REPS Unit at the St. Louis Regional Office for assistance with REPS
claims.

Paragraph 32.24 is amended to show that under 38 CFR 3.812(f) there is
no time limit for filing a claim for REPS benefits.

Paragraph 32.25 is amended to remove obsolete effective date provisions.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for VSD

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 107**

**Washington, DC 20420 July 26, 1999**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-VI-9 through 16-VI-10:** Remove these pages and substitute
pages 16-VI-9 through 16-VI-10 attached.

Paragraph 16.31m is amended to revise and clarify procedures for working
"Provider Proof" writeouts. Since many pension recipients are no longer
required to complete annual Eligibility Verification Reports (EVRs), the
prior procedure, which was keyed to the date of a medical expense claim,
is no longer workable. Many cases which are selected for the provider
proof project involve continuing medical expenses which might have been
claimed several years earlier. The revised procedure states that
provider proof is required if medical expenses were a factor in
determining the rate of pension at any time between the date of the
provider proof writeout and the date which is 12 months prior to the
date of the provider proof writeout.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are
not currently accessing Veterans Benefits Administration publications
from the Automated Reference Materials System CD**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 108**

**Washington, DC 20420 August 27, 1999**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 20-i through 20-iii**: Remove these pages and substitute pages
20-i through 20-iii attached.

**Pages 20-V-1 through 20-V-5**: Remove these pages and substitute pages
20-V-1 through 20-V-8 attached.

The entire subchapter is rewritten to reflect changes in drill pay
waiver processing. Under the new procedures, Hines Benefits Delivery
Center (BDC) will receive a tape from the Defense Manpower Data Center
(DMDC) identifying individuals who are in receipt of compensation or
pension and who received drill pay for Reserve or Guard duty during the
preceding fiscal year. In some instances, the tape may contain drill pay
information for multiple fiscal years. Hines will mail VA Form 21-8951,
"NOTICE OF WAIVER OF VA COMPENSATION OR PENSION TO RECEIVE MILITARY PAY
AND ALLOWANCES," to identified individuals. The VA Form 21-8951 will
have preprinted identifying information and will reflect the number of
drill pay days by fiscal year as shown in DMDC records. The veteran can
indicate agreement with the preprinted drill pay information on the form
and waive VA benefits, indicate that the preprinted information is not
correct and furnish amended drill pay information for purposes of
waiving VA benefits, indicate that he or she wishes to retain VA
benefits and waive military pay and allowances, or indicate that no
drill pay was received during the fiscal year(s) in question. Upon
receipt of the completed VA Form 21-8951 the regional office
will---depending upon the response---process an amended award to
withhold for drill pay, initiate further development, send the waiver of
military pay and allowances to VACO for forwarding to the appropriate
service department finance center, or code the master record to show
that the veteran did not receive drill pay.

If the veteran fails to respond to the initial mailing, a master record
diary will mature 90 days after issuance of the first VA Form 21-8951.
The maturing diary will cause issuance to the regional office of two
copies of the original VA Form 21-8951. The regional office will verify
that the correct individual was identified by DMDC and, if so, initiate
predetermination notice of a reduction to recoup drill pay based on the
information provided by DMDC. If there is still no response from the
veteran, a prospective award adjustment will be made at the end of the
due process period to withhold VA benefits for the number of drill pay
days reported by DMDC.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 109**

**Washington, DC 20420** **September 3, 1999**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 5-i:** Remove this page and substitute page 5-i, attached.

The contents page is changed to show that paragraph 5.03 is now on page
5-I-2.

**Pages 5-I-1 through 5-I-2:** Remove these pages and substitute pages
5-I-1 through 5-I-2, attached.

Paragraph 5.01d is added to show that contested claim procedures must be
followed in cases where 20 percent of past due benefits was not withheld
and payment of such claims by an attorney are denied.

**Pages 8-III-1 through 8-III-2:** Remove these pages and substitute
pages 8-III-1 through 8-III-2, attached.

Paragraph 8.08b(7) is added to provide a cross-reference relating to
cases where past-due benefits were not withheld for potential payment of
attorney fees.

By Direction of the Under Secretary of Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 110**

**Washington, DC 20420 September 28, 1999**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 9-I-3 through 9-I-4**: Remove these pages and substitute pages
9-I-3 through 9-I-4 attached.

Paragraph 9.08b is removed and paragraph 9.08c is redesignated as 9.08b.
The change is intended to clarify that the underlying substantive end
product should be cleared at the point in time at which all development
has been completed and an award could be processed were it not for the
requirement of predetermination notice. End product 600 and the
substantive end product should not be pending simultaneously on the same
issue. The underlying end product should be taken when the 600 end
product is established for predetermination notice.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068, plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Please visit our website at Error: Reference source not found if you
are not currently accessing Veterans Benefits Administration
publications from the Automated Reference Materials System CD**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 111**

**Washington, DC 20420 November 5, 1999**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 35-III-1 through 35-III-2:** Remove these pages and substitute
pages 35-III-1 through 35-III-2 attached.

Paragraph 35.20(d) entitled \"Report\" is replaced with the text of
35.20(e) entitled \"Travel Board Hearing Held.\" The current 35.20(e)
will no longer exist. The requirement of RCS report 20-0835 is no longer
required as the Veterans Appeals Control and Locator System (VACOLS)
will now be the primary tool used in tracking Board of Veterans\'
Appeals Travel Board hearing requests.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Please visit our website at Error: Reference source not found if you
are not currently accessing Veterans Benefits Administration
publications from the Automated Reference Materials System CD**

Veterans Benefits Administration M21-1, IV

**Department of Veterans Affairs Change 112**

**Washington, DC 20420 December 16, 1999**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page26-i:** Remove this page and substitute page 26-i, attached.

Page numbers are corrected for paragraphs 26.05 through 26.13.1.
Paragraph 26.13.2 is added to the list.

**Pages 26-I-1 through 26-I-24:** Remove these pages and add pages
26-I-1 through 26-I-24, attached.

Paragraph 26.01(i) is added to provide procedures to follow for payment
of veteran's rate for the month of death under Pub. L. 104-275.

Paragraph 26.03a(4) is added to show that claims for DIC from survivors
of veterans who died prior to October 1, 1978, should be reviewed for
potential eligibility for DIC under 38 U.S.C. 1318.

Paragraph 26.13.2 is added to show the new provisions relating to
benefits under 38 U.S.C. 1318 resulting from Pub. L. 106-117.

**Rescission:** Change 30, M21-1, Part IV

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing

Veterans Benefits Administration publications from the Automated
Reference Materials System CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 113**

**Washington, DC 20420 December 10, 1999**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 27-I-1 through 27-I-4:** Remove these pages and substitute pages
27-I-1 through 27-I-4, attached.

Paragraph 27.01 is amended to show that accrued benefits may now be paid
for a period of 2 years prior to the death of a veteran or other
beneficiary rather than 1 year prior to death.

Paragraph 27.04 is amended to show that when a Board of Veterans'
Appeals decision is issued after the death of the claimant, the decision
becomes a nullity.

Paragraph 27.06(1) is amended to change the reference from a 1-year
limitation to a 2-year limitation on the period concerned.

Paragraph 27.07 is also amended to change the reference from 1 year to 2
years.

**Pages 27-II-1 through 27-II-4:** Remove these pages and substitute
pages 27-II-1 through

27-II-4, attached.

Paragraph 27.12a is amended to change the reference from a 1-year
limitation to a 2-year limitation on the period concerned.

Paragraph 27.17c is amended to show that amounts due the estates of
deceased payees under

38 U.S.C. 5122 may now be paid by VA and no longer need to be referred
to the GAO, OPM or any other agency. In addition, the phrase "will not
revert to the State because there is no one eligible to inherit it" is
substituted for the word "escheat."

Other minor editorial changes have been made on these pages.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068, including 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 114**

**Washington, DC 20420 December 10, 1999**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 28-i:** Remove this page and substitute page 28-i, attached.

**Pages 28-I-1 through 28-I-4:** Remove these pages and substitute pages
28-I-1 through 28-I-4, attached.

Paragraph 28.02b is amended to revise the requirements for a well
grounded claim and indicate when such claims are denied.

Paragraph 28.02d (1) is revised to show that death cases *require* a
decision on entitlement to DIC, death pension and accrued benefits.

Paragraph 28.02d(4) is revised to delete the example of a "previously
denied claim." A pension claim is always a new claim.

Paragraph 28.04a is amended to provide more specific information about
what is needed when notifying a claimant of a decision made on a claim.
Subparagraphs (1) through (3) are added for that reason.

Paragraph 28.04e is amended to show that it is not sufficient to provide
notice of a decision simply by providing a cover letter with a rating
attached, although a copy of the rating is still to be included as an
attachment giving more specific information about the rating.

**RESCISSION**: M21-1, Part IV, Change 98, dated April 3, 1998

.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing

Veterans Benefits Administration publications from the Automated
Reference Materials System CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 115**

**Washington, DC 20420 March 6, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 31-iii**: Remove this page and substitute page 31-iii attached.

**Pages 31-IX-13 through 31-IX-14**: Remove these pages and substitute
pages 31-IX-13 through 31-IX-14 attached.

Paragraph 31.70g is amended to show that stations that destroy all tax
return records for a particular tax year are no longer required to list
individual information for each record destroyed. It is adequate to
document that all tax return materials for a particular year were
disposed of in accordance with established procedures. Paragraph 31.70g
is also changed to show that the disposal log documenting the
destruction of IVM materials may not be destroyed until 5 years after
the destruction of the last item entered in the log.

Paragraph 31.73b is amended to show that the annual IRS Safeguard
Activities Report (RCS 20-0893) should include a statement to the effect
that that personnel with access to tax return information were briefed
on the criminal and civil penalties for unauthorized disclosure of tax
return information.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing

Veterans Benefits Administration publications from the Automated
Reference Materials System CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 115 Erratum**

**Washington, DC 20420 April 24, 2000**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 31-iii**: Remove this page and substitute page 31-iii attached.

This page was amended to reestablish correct sequential paragraph
numbering.

Distribution: RPC: 2068, including 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing Veterans Benefits Administration publications from
the Automated Reference Materials System(ARMS) CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 116**

**Washington, DC 20420 March 6, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 12-i**: Remove this page and substitute page 12-i attached.

**Pages 12-III-1 through 12-III-4**: Remove these pages and substitute
pages 12-III-1 through 12-III-4 attached.

Paragraph 12.24f is added to show that dependent verification may be
accepted over the telephone.

**RECISION:** Change 91, M21-1, Part IV

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing Veterans Benefits Administration publications from
the Automated Reference Materials System(ARMS) CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 117**

**Washington, DC 20420 April 28, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-VI-5 through 16-VI-6:** Remove these pages and substitute
pages 16-VI-5 through 16-VI-6 attached.

Paragraph 16.31c(2)(c) is amended to show that the month and year a
medical expense was paid must be shown only if there is an overlapping
EVR reporting period. Otherwise, only the year in which the expense was
paid is required.

Paragraph 16.31d is amended to state that although medical expenses are
normally allowed after the fact based on the beneficiary's report of
expenses actually paid, medical expenses may be allowed prospectively if
the claimant is paying recurring nursing home fees or in other
situations where medical expenses are reasonably predictable.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing Veterans Benefits Administration publications from
the Automated Reference Materials System(ARMS) CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 118**

**Washington, DC 20420 March 21, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 14i:** Remove this page and substitute page 14i attached.

**Pages 14-I-3 through 14-I-14:** Remove these pages and substitute
pages 14-I-3 through 14-I-14 attached.

Paragraph 14.02(d) is added to show that a report of school attendance
to begin at a future date may be accepted over the telephone.

Paragraph 14.03j is added to show that school child certification or
reports of discontinuance of school attendance may be accepted by
telephone, e-mail or fax.

Paragraph 14.03k is added to state that if a report of discontinuance of
school attendance is received by telephone, e-mail or fax which would
cause a reduction or termination of benefits, ask the beneficiary or
his/her fiduciary to send written communication of this information by
e-mail, fax or letter. Such written communication must include a
statement that the beneficiary knows this information will result in a
reduction or termination (if applicable). If such a statement is
promptly received, use contemporaneous notice procedures.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 119**

**Washington, DC 20420 March 24, 2000**

Veterans Benefits Manual, M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 8-i through 8-E-9:** Remove these pages and substitute pages 8-i
through 8-E-9, attached.

Paragraph 8.02 is revised to provide the duties of the Decision Review
Officer (DRO).

Paragraph 8.04 is added to describe the initial steps to take when a
notice of disagreement with any decision is received, and to indicate
the steps to take if the claimant opts to have his or her case reviewed
by the DRO. Subsequent paragraphs are renumbered.

Paragraph 8.05a(3) is added to indicate what action to take if the issue
cannot be resolved by a VSR or RVSR and the appellate process is to
continue.

Paragraph 8.05b(2) is amended to show that if a specific issue cannot be
identified, the end product is to be cancelled and VACOLS closed.

Paragraph 8.05e is added to show that the regional office with
jurisdiction over a claims file will process NODs for issues relating to
medical care when the decision is based solely on rating or
authorization determinations. Subsequent paragraphs are re-lettered.

Paragraph 8.05g is amended to show that end product or VACOLS controls
that were erroneously established should be closed.

Paragraph 8.08 is amended to show the change in title. What was
previously known as an appeals tracking system is now called the
Veterans Appeals Control and Locator System (VACOLS).

Paragraph 8.09b(7) is added to show that the VAMC is responsible for a
statement of the case on issues under its jurisdiction.

Paragraph 8.15a(3) is amended to show that both the law and issue
involved should be mentioned on the VA Form 9.

Paragraph 8.16 is amended to provide a definition of a "properly
executed VA Form 9."

Paragraph 8.19 is amended to provide information about action needed
when the type of hearing desired is not clear.

Paragraph 8.20b is amended to refer to certification of an appeal, as
opposed to precertification.

Paragraph 8.22a is amended to show that VACOLS should be updated when an
acceptable substantive appeal is received. As an advance copy of this
form is no longer sent to the BVA, that portion of the paragraph is
deleted.

Paragraph 8.23b(2) is amended to show that the appeal should be
certified instead of precertified.

Paragraph 8.25a is amended to show that the claims file should be
reviewed by the DRO or VSCM designee after VACOLS is updated to show
receipt of a substantive appeal.

**M21-1, Part IV March 24, 2000**

**Change 119**

Paragraph 8.26 is amended to show that the BVA will request transfer of
a claims file if an appeal is advanced on the docket in emergent
situations.

Paragraph 8.29 is revised to show steps to take to obtain completion of
VA Form 646 from a service organization representative.

Paragraph 8.30a is amended to show the time requirements for completion
of VA Form 21-646.

Paragraph 8.33b is amended to show that VACOLS should be updated to show
an appeal is favorably resolved.

Paragraph 8.33c is amended to show that a self-addressed return envelope
should be provided a claimant when asking for clarification of whether
or not the appeal should continue.

Paragraph 8.35 is amended to show how a VACOLS appeal record is to be
activated when the appeal was previously withdrawn.

Paragraph 8.36b(2) is amended to change references to District Counsel
to Regional Counsel. The section of the Compensation and Pension Service
is updated to 211C.

Paragraph 8.36c(2)(b)Note is amended to show that requests for an
administrative review of distribution of amounts in PFOP are done by the
Central Office Fiduciary Program Staff in 211.

Paragraph 8.38 is amended to show that an appeal should not be certified
to the BVA until the time period allowed for submission of additional
evidence has expired. The paragraph referring to call-up of a case by
the BVA is deleted as this step is no longer taken by the Board.

Paragraph 8.40a(1) is amended to show that if evidence is received from
a claimant after the claims file has been transferred to the Board, that
evidence should also be sent to the Board *after* obtaining a waiver of
consideration by the regional office.

Paragraph 8.40b is amended to delete references to precertification of
appeals, as precertification procedures are no longer followed.

Paragraph 8.44c is amended to show that VACOLS must be updated and that
use of EP 170 is not required. The end product is optional as VACOLS is
now in full operation.

Paragraph 8.45 is amended to show how to update VACOLS when the remanded
appeal is resolved at the regional office level.

Paragraph 8.46a is amended to show that appeals pending before the BVA
at the time of the appellant's death do not remain in effect.

Paragraph 8.46b is amended to show that if the claimant dies within the
120-day period in which he or she could file an appeal with the CAVC,
that decision is a nullity.

Paragraph 8.46g is added to show that if a veteran's death occurs during
the one-year appeal period in which an NOD may be filed, the regional
office decision subject to appeal is also a nullity.

**M21-1, Part IV March 24, 2000**

**Change 119**

Appendix A is added to provide a list of the forms and acronyms used in
the chapter.

Exhibit A is amended to show that all status calls are made by calling
(202) 565-5436.Exhibit B is amended to show that most of the time the
certification review will be completed by the Decision Review Officer.

References to hearing officer are changed to Decision Review Officer
(DRO). References to the appeals tracking system (ATS) are changed to
the Veterans Appeals Control and Locator System (VACOLS). References to
Adjudication Officer are changed to Veterans Service Center Manager, and
references to Adjudication or Adjudication Division are changed to
Veterans Service Center. References to the Court of Veterans' Appeals
(COVA) are changed to Court of Appeals for Veterans Claims (CAVC).

**RESCISSIONS:** M21-1, Part IV, changes 84 and 104.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 120**

**Washington, DC 20420 March 24, 2000**

Veterans Benefits Manual M21-1, Part IV, Authorization Procedures, is
changed as follows:

**Pages 25-VII-1 through 25-VII-3:** Remove these pages and substitute
pages 25-VII-1 through

25-VII-2, attached.

Paragraph 25.11a is revised to clarify the circumstances under which the
Medal of Honor pension is paid.

Minor editorial changes are also made.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 121**

**Washington, DC 20420 May 15, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 29-i through 29-ii:** Remove these pages and substitute pages
29-i through 29-ii attached.

**Pages 29-III-1 through 29-III-2:** Remove these pages and substitute
pages 29-III-1 through 29-III-2 attached.

Paragraph 29.07d(2)(b) is amended to show that the month and year a
medical expense was paid must be shown only if there is an overlapping
EVR reporting period. Otherwise, only the year in which the expense was
paid is required.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Please visit our website at www.vba-arms.nctsw.navy.mil/ if you are not
currently accessing Veterans Benefits Administration publications from
the Automated Reference Materials System(ARMS) CD

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 122**

**Washington, DC 20420 December 6, 1999**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 12-I-5 through 12-I-8:** Remove these pages and substitute pages
12-I-5 through 12-I-8 attached.

Paragraph 12.04(d) is amended to show that the States of Georgia and
Idaho no longer recognize common law marriages.

Minor changes are made in the chapter, correcting some citations and
deleting others that are no longer in effect.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 123**

**Washington, DC 20420 July 24, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 8-X-1 through 8-X-2:** Remove these page and substitute pages
8-X-1 through 8-X-2 attached.

Paragraph 8.37(a)(1) is amended to remove the requirement that a
certification worksheet must be completed for cases ready to be
certified to BVA. The certification worksheet is now optional and should
be used at the discretion of the Veterans Service Center Manager.

**Pages 8-XII-1 through 8-XII-2:** Remove these pages and substitute
pages 8-XII-1 through 8-XII-2 attached.

Subchapter XII has been amended to delete references to
"recertification." All references to "recertification have been changed
to "resubmission".

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX : ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 124**

**Washington, DC 20420 July 13, 2000**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 1-IV-3 through 1-IV-4:** Remove these pages and substitute pages
1-IV-3 through 1-IV-4 attached.

Paragraph 1.21 is revised to show that representation by a service
organization or agent based on a power of attorney ends with the death
of the veteran.

**Page 12-i:** Remove this page and add page 12-i, attached. The page
numbers have been updated.

**Page 12-III-1 through 12-III-4:** Remove these pages and add pages
12-III-1 through 12-III-4, attached.

Subparagraph 12.24e is amended to include procedures to follow when
information is received by telephone that would cause a reduction or
termination of benefits.

**Page 14-i:** Remove this page and substitute page 14-i, attached.

The page numbers have been updated.

**Pages 14-I-7 through 14-I-14:** Remove pages and substitute pages
14-I-7 through 14-I-15, attached.

Paragraph 14.03k is amended regarding procedures to follow when
information is received by telephone that would cause a reduction or
termination of benefits.

**Pages 31-V-1 through 31-V-4:** Remove these pages and substitute pages
31-V-1 through 31-V-4 attached.

Paragraph 31.20(c) (6) is amended to allow immediate adjustment to a
beneficiary's award based on information provided by the Social Security
Death Match where there is no conflicting evidence of record.

Paragraph 31.23.1(c)(5) is added to show when the annotated listing of
"Remaining Active History Cases" is due in VACO.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 125**

**Washington, DC 20420 September 11, 2000**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 23-1 through 23-II-18:** Remove these pages and substitute pages
23-i through 23-A-1, attached.

Note 3 is added to the first page to show that while many of the records
are now requested via the Automated Medical Information Exchange, the VA
Form 10-7131 is still in use.

Paragraph 23.01b is amended to include a reference to AMIE.

Paragraph 23.02d(2)(b) Note is included to give reference to the M13
screen.

Paragraph 23.02f(3) Note is added to give reference to the character of
discharge information in the BDN.

Paragraph 23.02i is added to provide information relating to
nasopharyngeal radium irradiation.

Paragraph 23.03e(3) is amended to include information about requesting
records via PIES.

Paragraph 23.06b(2)(f) is added to show that loan guaranty benefits are
not payable to recipients of DIC pursuant to 38 U.S.C. 1311(e) based on
termination of a subsequent marriage or relationship for the period
10-1-98 through 11-30-99.

Paragraph 23.06e(1) is amended to show that general denials of benefits
are made by the regional office in accordance with part IV, chapter 11,
but that denial of the loan is done by the Loan Eligibility Center.

Paragraph 23.06f(4) is amended to provide for request of POW data via
PIES.

Paragraph 23.08g is amended to show that reason code 62 is used to deny
automobile and adaptive equipment claims.

Paragraph 23.14a is amended to include Note 3 showing that CHAMPVA
benefits are not payable to recipients of DIC pursuant to 38 U.S.C.
1311(e) based on termination of a subsequent marriage or relationship
for the period from 10-1-98 through 11-30-99.

An appendix is added to provide a list of the acronyms and forms
mentioned throughout the chapter.

References to the Loan Guaranty Division have been changed to Regional
Loan Center or Eligibility Center where appropriate. References to
Adjudication Division have been changed to Veterans Service Center where
appropriate. References tom Adjudication Officer have been changed to
Veterans Service Center Manager. References to Section Chief have been
changed to Coach. References to National Cemetery System have been
changed to National Cemetery Administration. References to Chief Medical
Director have been changed to Under Secretary for Health. Cross
references are updated. Other minor editorial changes have been made
throughout the chapter.

**M21-1, Part IV September 11, 2000**

**Change 125**

**RESCISSIONS:** M21-1, part IV, change 16, dated, December 1, 1992;
change 40, dated, September 13, 1993; change 48, dated February 20,
1994; change 53, dated June 6, 1994; and change 116, dated March 6, 2000
per change 124.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 126**

**Washington, DC 20420 November 30, 2000**

Veterans Benefits Administration Manual M21-1, Part IV, "Authorization
Procedures," is changed as follows:

**Pages 7-II-1 through 7-II-2:** Remove these pages and substitute pages
7-II-1 through 7-II-2, attached.

Paragraph 7.08b(1) is amended to show the corrected citation of 38
U.S.C. 503a. There is no longer a section 210 in Title 38 United States
Code.

Paragraph 7.08b(2) is amended to show the corrected citation of 38
U.S.C. 503b. There is no longer a section 210 in title 38 United States
Code.

Paragraph 7.08d is updated to show the current routing symbol of the
staff to which equitable relief requests should be referred.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 127**

**Washington, DC 20420 January 25, 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 10-I-1 through 10-I-2**: Remove these pages and substitute pages
10-I-1 through 10-I-2 attached.

Paragraph 10.01c is added to show that active service dates authorized
by the military are binding for active duty purposes in making
determinations to entitlement to benefits. This change reflects the
United States Court of Appeals for Veterans Claims' decision in *Spencer
v. West*, 98-363 (2000).

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 128**

**Washington, DC 20420 January 11, 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 29-iii through 29-v:** Remove these pages and substitute pages
29-iii through 29-v attached.

**Pages 29-III-3 through 29-III-4:** Remove these pages and substitute
pages 29-III-3 through 29-III-4 attached.

Paragraph 29.07g(3) is added to show that an EVR may be cleared by a VSR
if a beneficiary is a Medicaid recipient and has been reduced to the
\$90 nursing home rate yet fails to confirm recurring medical expenses.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 129**

**Washington, DC 20420 January 10, 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 14-I-5 through 14-I-8:** Remove these pages and substitute pages
14-I-5 through 14-I-8 attached.

Paragraph 14.02a(5) is amended to show that the On-Line Approval File
(OLAF) should be used to project the termination date of school child
benefits.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 130**

**Washington, DC 20420 January 24 , 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 11-I-7 through 11-I-16**: Remove these pages and substitute
pages 11-I-7 through 11-I-16 attached.

Paragraph 11.01k is added to include information about uncharacterized
separations and a cross reference to VAOPGCPREC 16-99 concerning
uncharacterized entry level separations.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 131**

**Washington, DC 20420 January 29, 2001**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 9-i:** Remove this page and substitute page 9-i, attached.

**Pages 9-I-1 through 9-I-10:** Remove these pages and substitute pages
9-I-1 through 9-I-11, attached.

Paragraph 9.05a(2) is revised to show recent changes in acceptable types
of evidence, including evidence submitted by e-mail, telephone or fax,
and to bring instructions provided in this paragraph into conformity
with instructions provided in other chapters.

Paragraphs 9.07(d) and (e) are amended to show that where third party
information reasonably shows that a beneficiary is deceased, action can
be taken to terminate benefits immediately with contemporaneous notice
as already indicated by paragraphs 9.05(a)(5) and 38 CFR
3.103(b)(3)(iii). Note: Where the information concerns a dependent on
the beneficiary's award, pre-termination/reduction notice will still be
required.

References to predetermination are changed to pre-termination/reduction.
References to Adjudication Officer are changed to Veterans Service
Center Manager. References to the Decision Review Officer are added
where appropriate.

By Direction of the Under Secretary for Benefits

Robert J. Epley, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

# Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 132**

## Washington, DC 20420 February 23, 2001

Veterans Benefits Administration Manual M21-1, Part IV, "Authorization
Procedures," is changed as follows:

**Page 8-XIII-1:** Remove this page and substitute page 8-XIII-1,
attached.

Paragraph 8.46g is amended to show that if the veteran dies during the
one-year appeal period and has not filed a Notice of Disagreement, the
regional office decision becomes final.

**Pages 20-II-3 through 20-II-4:** Remove these pages and substitute
pages 20-II-3 through

20-II-4, attached.

Paragraph 20.08a is amended to remove Iowa from the list of states
affected by Pub. L. 96-272, which provides that no election or
reelection of Improved Pension may be accepted from persons residing in
states in which Medicaid eligibility is contingent on receipt of Aid to
Families with Dependent Children (AFDC) or Supplemental Security Income
(SSI) unless the claimant has been informed that the election may result
in the loss of medical assistance, and that he/she is not required to
make the election in order to receive AFDC or SSI. Iowa has changed its
Medicaid program so that it no longer provides Medicaid exclusively to
individuals receiving cash assistance. Therefore, the provisions of Pub.
L. 96-272 no longer apply to Iowa.

Paragraph 20.09 is changed to delete an obsolete reference to the
Veterans Services Officer.

**Paragraph 35-III-1 through 35-III-2:** Remove these pages and
substitute pages 35-III-1 through 35-III-2, attached.

Paragraph 35.20(a) is amended to show that travel board hearings should
be scheduled in accordance with 38 U.S.C. 7107(d)(2). Under this
provision, a hearing must generally be held in the order in which it is
on the docket for the VA regional office where it is scheduled.

By Direction of the Under Secretary for Benefits

John McCourt, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 133**

**Washington, DC 20420 February 2, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 26-I-23 through 26-I-24:** Remove these pages and substitute
pages 26-I-23 through 26-I-24, attached.

Paragraph 26.13.2b is amended to show that special law code 25 is to be
used in cases where DIC is paid under 38 U.S.C. 1318 to a surviving
spouse of a former POW who died after September 30, 1999, and who was
rated totally disabled for a service-connected disability continuously
for a period of not less than 1 year immediately preceding death.

> By Direction of the Under Secretary for Benefits
>
> John McCourt, Acting Director
>
> Compensation and Pension Service

Distribution: RMC: 2068

FD: EX: ASO and AR (included in RMC 2068)

**LOCAL REPRODUCTION AUTHORIZED\
**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 134**

**Washington, DC 20420 March 1, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 17-A-1:** Remove this page and substitute page 17-A-1, attached.

Addendum A is revised to show that the age of majority in Puerto Rico is
now age 18.

By Direction of the Under Secretary for Benefits

John McCourt, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 135**

**Washington, DC 20420 April 6, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures," is
changed as follows:

**Pages 32-I-1 through 32-I-2:** Remove these pages and substitute pages
32-I-1 through 32-I-2 attached.

Paragraph 32.04a (3) is amended to reflect current statutory
requirements concerning who is eligible for Restored Entitlement Program
for Survivors benefits per 38 C.F.R. § 3.8(a).

**Page 36-i**: Remove this page and substitute with Page 36-i attached.

**Pages 36-I-1 through 36-I-4**: Remove these pages and substitute pages
36-I-1 through 36-I-3 attached.

Paragraph 36.02d (2) is updated to provide instructions for identifying
Office of Inspector General (OIG) fraud cases using brightly colored
paper to backflap claims folders.

Paragraph 36.03 is amended to change procedures for referring cases
involving potential fraud to the Office of Inspector General (OIG).
Under the new guidelines, all cases involving potential fraud are to be
referred to OIG if the overpayment attributable to fraud is at least
\$10,000 and the alleged fraudulent act is less than 5 years old.
However, these fraud referral criteria may be modified locally by
agreement between regional office management and the OIG. The amended
paragraph makes clear that, in the absence of a local agreement to the
contrary, the claims file is not to be referred to the OIG as part of
the initial fraud referral.

Paragraph 36.04a is amended to extend the diary for OIG action on the
initial fraud referral from 20 days to 60 days, and paragraph 36.04c is
amended to provide instructions for forwarding cases to the OIG.

Paragraph 36.06 is amended to provide updated instructions for
forwarding copies of OIG referrals involving VA employees to the Office
of Field Operations (201) and Regional Counsel.

There were also changes to rename the \"veterans claims examiner\"
position to \"veterans service representative,\" and to rename
\"Adjudication Division\" to \"Veterans Service Center.\"

By Direction of the Under Secretary for Benefits

John McCourt, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 136 Erratum**

**Washington, DC 20420 July 25, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,"
Change 136 is changed as follows:

**Rescission**: Delete "VBA letter 98-09" and insert "Fast Letter
98-09".

VBA letter 98-09 is still valid.

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**M21-1, Part IV**

**Department of Veterans Affairs Change 136**

**Washington, DC 20420 June 4, 2001**

#### 

#### 

> Veteran's Benefits Administration Manual M21-1, Part IV,
> "Authorization Procedures," is changed as follows:
>
> **Pages 35-i through 35-A-9**: Remove these pages and substitute pages
> 35-1 through 35-C-20 attached.

-   Chapter 35, "Hearings and Hearing Officers" is revised to reflect
    > the new manual format in Information Mapping and implementation of
    > the Decision Review Officer program.

-   The Travel Board hearing schedule on page 35-III-2 (now 35-C-5) is
    > updated to reflect the additional number of hearings to be
    > scheduled during each Travel Board visit.

-   References to Adjudication Officer have been changed to Veterans
    > Service Center Manager (VSCM).

> Rescission This change rescinds Fast Letter 98-09 concerning the
> "Extension of
>
> Difference of Opinion Authority."
>
> By Direction of the Under Secretary for Benefits
>
> John F. McCourt, Acting Director
>
> Compensation and Pension Service
>
> Distribution RPC: 2068
>
> > EX : ASO and AR (included in RPC 2068)
>
> LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 137 Erratum**

**Washington, DC 20420 August 22, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,"
Change 137 is changed as follows:

**Page 38-I-3:** Remove this page and substiute page 38-I-3, attached.

The page was formatted incorrectly.

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 137**

**Washington, DC 20420 June 26, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Page 38-I-3:** Remove this page and substitute page 38-I-3, attached.

38.03b(7) is amended to remove the requirement for the regional offices
to send an e-mail message to the Board of Veterans Appeals\' when a case
is ready for return.

By Direction of the Under Secretary for Benefits

John McCourt, Acting Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 138**

**Washington, DC 20420 August 1, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Page 12-I-17:** Remove this page and substitute page 12-I-17,
attached.

12.14f(2) is amended to state the requirement to use special law code 24
when eligibility to DIC is reinstated.

12.14f(5) is amended to explain restoration of benefits under Public Law
106-157 for surviving spouses who regain DIC eligibility.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 139**

**Washington, DC 20420 August 2, 2001**

This change to Veterans Benefits Manual M21-1, Part IV, "Authorization
Procedures," removes all references to \"well grounded\" which reflects
the Veterans Claims Assistance Act of 2000 effectively reversing the
Morton v. West decision:

**Pages 8-II-1 through 8-II-2**: Remove these pages and substitute pages
8-II-1 and 8-II-2.

Page 8-II-2, paragraph 8.05c: deleted entire paragraph.

**Pages 8-III-1 and 8-III-2**: Remove these pages and substitute pages
8-III-1 and 8-III-2.

Page 8-III-2, paragraph 8.09f: deleted entire paragraph.

**Pages 28-I-1 through 28-I-4**: Remove these pages and substitute pages
28-I-1 through 28-I-3.

Page 28-I-1, paragraph 28.02b: deleted entire paragraph.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 140**

**Washington, DC 20420 September 12, 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 17-A-1:** Remove this page and substitute page 17-A-1, attached.

Addendum A is revised to show that the age of majority in Puerto Rico
has been changed back to 21 years of age, according to Law 59, enacted
on July 18, 2001, which amended Law 289. Law 289 conflicted with
important provisions of the Civil and Penal Codes and caused confusion
in the legal and business communities.

**Pages 33-i through 33-I-4**: Remove these pages and substitute pages
33-i through 33-I-4 attached.

Paragraph 33.04 is amended to state that VA Form 21-4180, "Request for
Certification by Social Security Administration," is to be sent to the
Social Security Administration only if a specific inquiry or claim for
the special allowance under 38 U.S.C. 1312(a) is received and Form
SSA-101, SSA-101C or SSA-101U3, "Determination of Award," is not of
record.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 141**

**Washington, DC 20420 September 25, 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-IX-7 through 16-IX-8:** Remove these pages and substitute
pages 16-IX-7 through 16-IX-8 attached.

Paragraph 16.43d is amended to provide that income of up to \$2,000 per
calendar year to an individual Indian from trust lands or restricted is
excluded under 38 CFR 3.272(r).

Paragraph 16.43g is amended to include a reference to VAOPGCPREC 21-97
which held that amounts received by an individual pursuant to a per
capita distribution of proceeds from gaming on Indian trust lands
pursuant to the Indian Gaming Regulatory Act are considered income for
purposes of Department of Veterans Affairs income-based benefits.

Paragraph 16.43i is amended to reflect the changes to paragraphs 16.43d
and g.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 142**

**Washington, DC 20420 October 15, 2001**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 22i:** Remove this page and substitute page 22i attached.

**Pages 22-II-1 through 22-II-5**: Remove these pages and substitute
pages 22-II-1 through 22-II-4 attached.

Paragraph 22.14 is amended to remove reference to Central Office
determinations and incorporate previous paragraph 22.15 dealing with
regional office determinations. Paragraph 22.15 and subsequent
paragraphs are renumbered.

Paragraph 22.16(a)(Note), previously 22.17(a)(Note), is amended to
clarify procedures when a final court order requires that benefits paid
under 38 U.S.C. 1151 not be offset. This change is at the request of the
Office of General Counsel.

**Table of Contents, Part IV, Chapter 28. Disallowances**: Remove this
page and substitute the attached amended table of contents which
reflects corrected pagination.

**NON-RELATED RESCISSIONS:**

Change 80 rescinded Change 73.

Change 140 rescinded Change 134.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 143**

**Washington, DC 20420 October 11, 2001**

This change to Veterans Benefits Manual M21-1, Part IV, "Authorization
Procedures," removes all references to \"well grounded\" which reflects
the Veterans Claims Assistance Act of 2000 effectively reversing the
Morton v. West decision:

**Pages 8-II-1 through 8-II-2**: Remove these pages and substitute pages
8-II-1 and 8-II-2.

Page 8-II-2, paragraph 8.05c: deleted entire paragraph.

**Pages 8-III-1 and 8-III-2**: Remove these pages and substitute pages
8-III-1 and 8-III-2.

Page 8-III-1, paragraph 8.09c(5): deleted second sentence related to
well groundedness.

Page 8-III-2, paragraph 8.09f: deleted entire paragraph.

**Pages 28-I-1 through 28-I-3**: Remove these pages and substitute pages
28-I-1 through 28-I-3.

Page 28-I-1, paragraph 28.02b: deleted entire paragraph.

Page 28-I-2, paragraph 28.04a: Deleted 3^rd^ and 4^th^ sentences related
to well grounded.

**[Rescission:]{.underline}** M21-1, Part IV, Change 139, dated August
2, 2001

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**LOCAL REPRODUCTION AUTHORIZED**

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 144**

**Washington, DC 20420 October 9, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**11-V-1 through 11-V-2**: Remove these pages and add pages 11-V-1
through 11-V-2, attached.

Paragraph 11.29g is amended to raise the estate threshold amount from
\$50,000 to \$80,000. This amount is effective upon publication of this
change.

Paragraph 11.29h is amended to raise the estate threshold amount from
\$50,000 to \$80,000. This amount is effective upon publication of this
change.

Paragraph 11.30 is amended to delete the note relating to unit chief, as
most offices no longer have them.

References to Adjudication Officer are changed to Veterans Service
Center Manager. A reference to section chief is changed to coach.

**13-II-1 through 13-II-2:** Remove these pages and substitute 13-II-1
through 13-II-2, attached.

Paragraph 13.12a is changed to raise the estate threshold amount from
\$50,000 to \$80,000. This amount is effective upon publication of this
change.

**16-I-13 through 16-I-14:** Remove these pages and substitute pages
16-I-13 through 16-I-14, attached.

Paragraph 16.04c(9)(a) is revised to increase the administrative
decision cutoff point for net worth to \$80,000. This change is made to
reflect cost of living increases since 1994.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 145**

**Washington, DC 20420 October 12, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**21-I-1 through 21-I-2:** Remove these pages and substitute pages
21-I-1 and 21-I-2, attached.

Paragraph 21.02a(2)(b) is amended to add a reference to VAOPGCPREC
7-2001, which held that the effective date of the award of VA
compensation to a veteran who has waived military retired pay is the
date on which the service department reduces the pay.

**21-II-3 and 21-II-4:** Remove these pages and substitute pages 21-II-3
and 21-II-4, attached.

Paragraph 21.06d(5) is amended to eliminate the need to refer to VA Form
20-8993 when sending locally generated letters. This form is no longer
used to furnish information about tax exemption eligibility.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RMC: 2068

FD: EX: ASO and AR (included in RMC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 146**

**Washington, DC 20420 October 30, 2001**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 1-i:** Remove this page and substitute Page 1-i attached.

**Pages 1-IV-1 through 1-IV-4:** Remove these pages and substitute pages
1-IV-1 through 1-IV-3, attached.

Paragraph 1.14 is amended to show that claims for DIC are also
considered claims for an additional monthly amount payable under 38
U.S.C. 1311a(2) in the case of a veteran who died on or after January 1,
1993, where the veteran was in receipt of or entitled to receive
compensation for a service-connected disability rated totally disabling
(including a rating based on individual unemployability) for a
continuous period of at least 8 years immediately preceding death, and
the surviving spouse was married to the veteran for those same 8 years.

**Pages 26-I-23 through 26-I-24:** Remove this pages and substitute
pages 26-I-23 through 26-I-24 attached.

Paragraph 26.13.1b is amended to show that in claims for the additional
monthly allowance payable under 38 U.S.C. 1311a(2), determinations will
be made based on evidence in file or deemed in file at the time of the
veteran's death.

**RESCISSION**: Compensation and Pension Service Fast Letter 96-21,
dated March 1, 1996, is rescinded by Change 130, M21-1, Part IV, dated
January 24, 2001.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 147**

**Washington, DC 20420 November 5, 2001**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 36-A-1 and 36-A-2:** Remove these pages and substitute pages
36-A-1 and 36-A-2, attached.

Addendum A, Office of Inspector General Regional Office Jurisdiction,
has been updated to reflect new addresses and phone numbers. Referrals
of potential fraud cases should be sent to one of these field offices
for appropriate action.

**RESCISSION:** Change 34, dated July 19, 1993.

**UNRELATED RESCISSIONS**: Change 19, dated February 26, 1993 and Change
133, dated February 2, 2001.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 148**

**Washington, DC 20420 December 10, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 9-i to 9-II-8:** Remove these pages and substitute pages 9-i to
9-II-8, attached.

Chapter 9, Due Process, Contents page, is amended to reflect the
deletion of paragraph 9.13, Receipt of Documentary Evidence Confirming
Oral Information. Subsequent paragraphs are renumbered and the contents
are repaginated.

Paragraph 9.03a(2) is amended to eliminate the requirement that the
beneficiary submit documentary evidence to confirm information
previously given orally in order to avoid predetermination notice.

Paragraph 9.05a(2) is amended to reflect that beneficiaries are no
longer required to advise VA in writing of changes in dependency,
marital status, income or net worth. If the change results in adverse
action, a predetermination notice is not required. However, information
received orally cannot serve as the basis of reduction/termination of
benefits with contemporaneous notice unless specific procedures are
followed to verify identity, inform the provider of the how the
information will be used, and document all information given and
received. Additionally, if the beneficiary asserts that adverse action
was taken based on erroneous oral information, benefits will be
restored, if the assertion is made within 30 days of the date that the
notice of adverse action is sent.

Paragraph 9.07a is amended to reflect that VA may now take an adverse
action and issue a contemporaneous notice if the veteran or his or her
fiduciary has provided information as to income, net worth, dependency
or marital status either in writing or by e-mail, fax or other
electronic services.

Paragraph 9.09a is amended to eliminate the requirement that the
beneficiary submit documentary evidence to confirm information
previously given orally.

Paragraph 9.12 is amended to reflect that the claimant may transmit
information as to income, net worth, dependency or marital status
orally, or by e-mail, fax or other electronic means when requesting
immediate implementation of adverse action.

Paragraph 9.13 dealing with Receipt of Documentary Evidence confirming
Oral Information is deleted to eliminate the requirement that the
beneficiary submit documentary evidence to confirm information
previously given orally. All subsequent paragraphs are renumbered.

These changes implement the provisions of 38 CFR 3.103(b)(3) and (4) and
38 CFR 3.217b effective December 10, 2001.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 149**

**Washington, DC 20420 December 13, 2001**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 16-V-1 through 16-V-9:** Remove these pages and substitute pages
16-V-1 through 16-V-9, attached.

Paragraph 16.26c is amended to clarify issues related to establishing a
child.

Paragraph 16.26d and 16.26e are deleted as paragraph 16.26c addresses
legal custody, reasonable support, and whereabouts of dependent children
issues.

**Pages 25-II-1 and 25-II-2**: Remove these pages and substitute pages
25-II-1 and 25-II-2, attached.

Note 4 is added to paragraph 25.04a to advise that veterans incarcerated
in foreign prisons are not subject to reduction of compensation and
pension benefits according to 38 U.S.C. paragraphs 5313 and 1505.

**Pages 27-I-1 and 27-I-2:** Remove these pages and substitute pages
27-I-1 and 27-I-2, attached.

27.01 is amended to note that if benefits are paid under a district
court order to the survivors or estate of a *Nehmer* class member, the
amount of payment is not restricted to the two-year period prior to
death.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 150**

**Washington, DC 20420 January 29, 2002**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Page 31-iii**: Remove this pages and substitute pages 31-iii and
31-iv, attached.

**Pages 31-XII-1 through 31-XII-2**: Add these pages after page 31-XI-2.

A new subchapter XII is added to furnish instructions for processing the
BIRLS, Master Record, Date of Death Reconciliation Project. This project
identifies cases where a date of death appears in a veteran's BIRLS
record and an active or suspended Hines master record exists under the
same file number.

**Pages 31-XIII-1 through 31-XIII-2**: Add these pages after page
31-XII-2.

A new subchapter XIII is added to furnish instructions for processing
the 100 Year Old Review. This project identifies cases where a
beneficiary reaches the age of 100 based on the date of birth in the
Hines master record.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068 plus 3 copies for each Veterans Services
Division

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 151**

**Washington, DC 20420 January 29, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 9-I-3 and 9-I-4:** Remove these pages and substitute pages 9-I-3
and 9-I-4, attached.

9.06 is amended to show the correct form number for the "Application for
United States Flag for Burial Purposes", VA Form 21-2008.

**Pages 9-II-5 and 9-II-6:** Remove these pages and substitute pages
9-II-5 and 9-II-6, attached.

9.21d(3)(c) is amended to show the correct reference to subparagraphs
9.03b(1), (2), and (3), instead of subparagraphs 9.02b(1), (2) and (3),
for a list of elements from the predetermination notice which should be
included in the final notice.

**Page 34-i:** Remove this page and substitute page 34-i, attached.

The Contents page is amended to show the addition of paragraphs 34.19
and 34.20 and Exhibit A.

**Pages 34-I-5 to 34-C-1:** Remove these pages and substitute pages
34-I-5 to 34-C-2 attached.

34.07c(2)(a), 34.07c(3) and 34.07d are amended to reflect changes in the
payment of disability compensation and burial benefits for veterans of
the Commonwealth Army of the Philippines and organized guerrilla groups.

34.18 is amended to note that the Manila regional office also has
jurisdiction for accounts payable at the full-dollar rate under Public
Law 106-377.

19. is added to implement Public Law 106-377 and 38 CFR 3.42, 3.405 and
    3.505 which authorized payment of disability compensation at the
    full-dollar rate effective October 27, 2000, to veterans of the
    Commonwealth Army of the Philippines or organized guerrilla groups
    who reside in the U.S. for the greater part of each year and are
    either U.S. citizens or permanent resident aliens.

34.20 is added to implement Public Law 106-419 and 38 CFR 3.43 which
authorized payment of burial benefits at the full-dollar rate based on
service of certain members of the Commonwealth Army of the Philippines
or organized guerrilla groups who died after November 1, 2000. To
establish eligibility to the full-dollar rate, the evidence must show
that, on the date of death, the veteran resided in the U.S., was a U.S.
citizen or permanent resident alien, and was receiving VA disability
compensation benefits or would have been eligible to receive VA pension
benefits, if military service had been deemed active service.

Chart A is amended to reflect the changes for payment of compensation
and burial benefits at the full-dollar rate.

Exhibit A is added to provide a sample of the Residency Verification
Report which will be used annually to verify a veteran's continued
eligibility for compensation benefits at the full-dollar rate.

Minor changes have also been made, correcting some citations and
deleting others that are no longer in use.

> By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 152**

**Washington, DC 20420 March 27, 2002**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 10-I-1 through 10-I-6:** Remove these pages and substitute pages
10-I-1 and 10-I-6, attached.

Paragraphs 10.01a.(2), 10.02b.(1) and (2) incorporate the provisions of
Section 301 of Public Law 106-419, which expands the definition of
active service to include any period of inactive duty training during
which an individual becomes disabled or dies from an acute myocardial
infarction, a cardiac arrest, or a cerebrovascular accident that
occurred during such training. Additionally, if an individual was
disabled or died as a result of any of these three diseases having
occurred while the person was proceeding directly to or returning
directly from active duty for training, or inactive duty training, that
person would be deemed to have been on active duty for training, or
inactive duty training, as the case may be.

**Page 18-VII-1 through 18-VII-7:** Remove these pages and substitute
pages 18-VII-1 and 18-VII-8, attached.

This change incorporates both Section 304 of Public Law 106-419 and
Section 204 of Public Law 107-103. Public Law 106-419 sets forth the
limitation on the payment of benefits to an incompetent veteran without
spouse or children who is hospitalized, institutionalized or domiciled
by the U.S. or any political subdivision, with or without charge, and
who has an estate with a value that equal or exceeds a specified amount.
Formerly, this amount was \$1500; payments could not be resumed until
the value of the estate was reduced below \$500. Under Public Law
106-419, benefits may not be discontinued until the estate of such a
veteran equals or exceeds an amount equal to five times the rate of
compensation payable under 38 U.S.C. 1114(j) (the rate payable to a
totally disabled veteran with no dependents). Benefit payments
discontinued because of the estate limitation may not be resumed until
the veteran's estate has been reduced to one-half the new estate
limitation. Public Law 107-103, effective December 27, 2001, repeals the
withholding of benefits under the estate limitation provisions of 38
U.S.C. 5503 for an incompetent institutionalized veteran who has neither
spouse nor child.

**Pages 39-1 and 39-2 :** Remove these pages and substitute pages 39-1
and 39-2, attached.

Paragraph 39.01c. is amended to extend to September 30, 2008, the
provisions regarding certain beneficiaries receiving Medicaid covered
nursing home care.

**Page 39-7**: Remove this page and substitute page 39-7 attached.

Paragraph 39.13 is amended to show that the RCS 20-0897 report (DIC
Spouses Electing Improved Pension) is no longer required and that only
cases which were actually adjusted are to be reported on the
Medicaid/Nursing Home portion of the Omnibus Budget Reconciliation Act
(OBRA) Report, RCS 20-0834. Previously, cases which were reviewed but
not adjusted were also reported on the RCS 20-0834 report.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Rescissions: Change 101, dated September 4, 1998

Change 127, dated January 25, 2001

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 153 Erratum**

**Washington, DC 20420 April 23, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

This Erratum is provided to correct page 25-VI-3 which was incorrectly
copied in Change 153.

**Pages 25-II-1 and 25-II-2**: Remove these pages and substitute pages
25-II-1 and 25-II-2, attached.

Note 4 is amended under paragraph 25.04a to advise that veterans
incarcerated in foreign prisons are not subject to reduction of
compensation and pension benefits according to 38 U.S.C. paragraphs 5313
and 1505.

**Pages 25-VI-3 and 25-VI-4:** Remove these pages and substitute pages
25-VI-3 and 25-VI-4, attached.

25.09i(3)(a) is amended to clarify that an application for
redetermination of clothing allowance eligibility is considered timely
for the current year if it is received before August 1 of the next year.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 153**

**Washington, DC 20420 April 11, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 25-II-1 and 25-II-2**: Remove these pages and substitute pages
25-II-1 and 25-II-2, attached.

Note 4 is amended under paragraph 25.04a to advise that veterans
incarcerated in foreign prisons are not subject to reduction of
compensation and pension benefits according to 38 U.S.C. paragraphs 5313
and 1505.

**Pages 25-VI-3 and 25-VI-4:** Remove these pages and substitute pages
25-VI-3 and 25-VI-4, attached.

25.09i(3)(a) is amended to clarify that an application for
redetermination of clothing allowance eligibility is considered timely
for the current year if it is received before August 1 of the next year.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 154**

**Washington, DC 20420 June 14, 2002**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 16-vii and 16-viii:** Remove these pages and substitute pages
16-vii and 16-viii, attached.

**Pages 16-VI-15 through 16-VI-23:** Remove these pages and substitute
pages 16-VI-15 through 16-VI-23, attached.

Paragraph 16.32f has been amended, and Paragraph 16.32g and its
accompanying example have been changed. Paragraphs h and i have been
redesignated g and h, respectively. Previously, expenses of a veteran's
last illness which were paid by the veteran's surviving spouse
subsequent to the veteran's death, but prior to the date of the
surviving spouse's entitlement to death pension, could not be deducted
from countable income for the purpose of determining entitlement to
improved death pension. This was invalidated by VAOPGCPREC 1-2000. All
last expenses paid prior to the date of entitlement, whether before or
after the veteran's death, are to be treated the same, and allowed as a
deduction for the first 12 months of entitlement.

**Pages 16-IX-1 through 16-IX-2:** Remove these pages and substitute
pages 16-IX-1 through

16-IX-2 attached.

Paragraph 16.41(b)(15) is amended to extend the exclusion of government
crime victim payments to include government aid to victims of terrorism
since either type of payment essentially originates from the same U.S.
Treasury fund as authorized under 42 U.S.C. § 10603b.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 155**

**Washington, DC 20420 June 24, 2002**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 27-i through 27-ii**: Remove these pages and substitute pages
27-i through 27-ii, attached.

**Pages 27-I-1 through 27-I-4**: Remove these pages and substitute pages
27-I-1 through 27-I-3 attached.

Paragraphs 27.08c., 27.08d., 27.08e. and 27.08f. are deleted. These
provisions had stated that certain classes of evidence not in file on
the date of death will be considered to provide a basis for an award of
accrued benefits to be based on inference or prospective estimation
drawn from information in file on the date of death. They are now
considered inconsistent with 38 CFR 3.1000(d)(4), which has been revised
to define "evidence in the file at the date of death" as evidence in
VA's possession on or before the date of the beneficiary's death, even
if such evidence was not physically located in the VA claims folder on
or before the date of death.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL DISTRIBUTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 156**

**Washington, DC 20420 June 20, 2002**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 22-I-1 through 22-I-2:** Remove these pages and substitute pages
22-I-1 through 22-I-2, attached.

Paragraph 22.03 is amended to advise that the electronic 7131 request
functionality in the Compensation and Pension Record Interchange (CAPRI)
will support text entry of up to four pages and maintains tracking
information regarding the status of requests.

**Rescission:** Change 75, dated August 29, 1995.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 157**

**Washington, DC 20420 August 6, 2002**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 12-I-17:** Remove this page and substitute page 12-I-17,
attached.

Paragraph 12.14 f(5) is deleted and included under paragraph 12.14g,
which has been added to incorporate provisions of Public Law 106-117,
effective November 30, 1999. Under this law a surviving spouse whose
remarriage or inference of remarriage is terminated by death, divorce,
annulment, or cessation of the inferred remarriage is eligible for
medical care under CHAMPVA, Dependents' Education Assistance under 38
U.S.C. Chapter 35, and loan guaranty benefits.

**Rescission:** Change 138.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 158**

**Washington, DC 20420 August 23, 2002**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 11-I-1 through 11-I-2:** Remove these pages and substitute pages
11-I-1 through 11-I-2 attached.

Paragraphs 11.01 (b) and (c) are modified to reflect the responsibility
for developing administrative decisions according to the Claims Process
Improvement model.

Rescission: Change 99.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 159**

**Washington, DC 20420 August 30, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

This change corrects the numerical sequence in paragraph 16.26c that was
issued in Change 149.

**Pages 16-V-1 through 16-V-9:** Remove these pages and substitute pages
16-V-1 through 16-V-9, attached.

**Page 20-VII-3:** Remove this page and substitute page 20-VII-3,
attached.

**Pages 22-I-5 and 22-I-6:** Remove these pages and substitute pages
22-I-5 and 22-I-6, attached.

Paragraphs 20.46c and 22.11e are amended to show the correct citation
for CHAMPVA benefits (38 U.S.C. 1781).

**Pages 28-I-1 to 28-I-3:** Remove these pages and substitute pages
28-I-1 through 28-I-3 attached.

Paragraph 28.04 f is new and paragraph 28.04 g is renumbered and amended
to instruct that upon implementation of a rating for a visually impaired
veteran, the claims folder will be referred to the Public Contact Team
for telephone contact with the claimant.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 160**

**Washington, DC 20420 July 12, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Decision Review Officers,
Informal Conferences and Hearings,\" is changed as follows:

**Pages 35-A-13 and 35-A-14**: Remove these pages and substitute pages
35-A-13 and 35-A-14, attached.

The \"Note\" in "Claimant Withdrawing NOD" section is amended to clarify
how an appeal or NOD may be withdrawn.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 161**

**Washington, DC 20420 September 24, 2002**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-VI-1 through 16-VI-2:** Remove these pages and substitute
pages 16-VI-1 through 16-VI-2 attached.

Paragraph 16.31b(1)(c) is amended to require a call to the nursing home
to verify payment by the claimant of nursing home fees in excess of
\$15,000 per year.

**Pages 16-VI-11 through 16-VI-14:** Remove these pages and substitute
pages 16-VI-11 through 16-VI-14 attached.

Paragraph 16.31m(6)(a) is amended to provide that documentary proof of
medical expenses will be required for a 3 year period from the date it
is determined that acceptable documentation of prior medical expenses
was not received under the Provider Proof program.

Paragraph 16.31m(8) is amended to require placing a copy of a Share
system Social Security print in the claims file each time an award is
processed to allow a UME deduction for Medicare premiums.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 162**

**Washington, DC 20420 October 23, 2002**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 4-II-1 through 4-II-2:** Remove these pages and substitute pages
4-II-1 through 4-II-2 attached.

Paragraph 4.02 is modified to discuss the duties of the
Post-Determination Team according to the Claims Process Improvement
model. Several minor editorial changes are also made.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 163**

**Washington, DC 20420 December 2, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 8-XII-1 through 8-XII-2:** Remove these pages and substitute
pages 8-XII-1 through 8-XII-3, attached.

Subparagraph 8.43a. has been amended to reflect that the Board of
Veterans' Appeals is now developing for missing or needed evidence,
rather than remanding the appeal to the regional office for development.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 164**

**Washington, DC 20420 December 9, 2002**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 16-VIII-1 to 16-VIII-2:** Remove these pages and substitute
pages 16-VIII-1 to 16-VIII-2, attached.

Subparagraph 16.39e is revised to reflect that the cutoff point for net
worth administrative decisions has been increased to \$80,000.

Subparagraph 16.40c(1) "Example" is amended to clarify that the
additional \$5,000 received under the installment sale is counted as
"interest income."

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 165**

**Washington, DC 20420 January 8, 2003**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 8-I-1:** Remove this page and substitute page 8-I-1, attached.

**Pages 8-II-3 through 8-II-4:** Remove these pages and substitute pages
8-II-3 through 8-II-4 attached.

Paragraph 8.01b is added to discuss the role and duties of the Appeals
Team according to the Claims Process Improvement model.

Paragraph 8.08 is modified to discuss the responsibility for
establishing a Notice of Disagreement (NOD) into Veterans Appeals
Control and Locator System (VACOLS).

**Pages 20-VII-1 through 20-VII-2:** Remove these pages and substitute
pages 20-VII-1 through 20-VII-2, attached.

Paragraph 20.42b(3) is changed to state the amended criteria effective
December 6, 2002, for payment of compensation for deafness under 38
U.S.C 1160 (paired organs). This change is based on the provisions of
Public Law 107-330.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 166**

**Washington, DC 20420 January 8, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 21-i:** Remove this page and substitute with page 21-i, attached.

**Pages 21-II-7 through 21-II-10:** Remove these pages and substitute
pages 21-II-7 through

21-II-8, attached.

Paragraph 21.07i. is amended to show the new telephone procedures for
contacting DFAS.

Paragraph 21.09, "Discontinuance Under 38 CFR 3.557" is deleted. Since
there are no longer any beneficiaries of Emergency Officer's Retired
Pay, the reduction under 38 CFR 3.557 does not apply to any retired pay
benefits.

Paragraph 21.10, "Retroactive Waiver of Retired Pay" is deleted. This
provision was repealed in 1999 by Section 651 of Public Law 106-65.
Retired pay of Retired Regular Officers employed in Federal civilian
positions is no longer subject to reduction under the Dual Compensation
Act.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 167**

**Washington, DC 20420 January 17, 2003**

Veterans Benefits Manual M21-1, Part IV, \"Authorization Procedures,\"
is changed as follows:

**Pages 12-I-15 through 12-I-16 :** Remove these pages and substitute
pages 12-I-15 through 12-I-16, attached.

A note has been added to paragraph 12.14f(1) to clarify reinstatement of
DIC eligibility after September 30, 1998.

**Pages 23-II-9 through 23-II-12 :** Remove these pages and substitute
pages 23-II-9 through

23-II-13, attached.

Paragraph 23.09b is added, and subsequent paragraphs renumbered, to
incorporate the provision that veterans with 10 percent
service-connected disability who are determined by the Vocational
Rehabilitation and Employment Service to have a serious employment
handicap are eligible for vocational rehabilitation.

**Pages 35-A-9 through 35-A-10:** Remove these pages and substitute
pages 35-A-9 and 35-A-10, attached.

The duties of the Decision Review Officer (DRO) is updated to
incorporate the Claims Process Improvement (CPI) model which states that
the DRO serves as an integral member of the Appeals or RatingTeam,
reporting to its Coach.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 168**

**Washington, DC 20420 Erratum**

**March 19, 2003**

This Erratum corrects the pagination for the pages listed below. Chapter
23 has been reformatted to correct pagination and will be included in
the next ARMS update.

**Page 23-i:** Remove this page and substitute with page 23-i, attached.

**Pages 23-II-17 through 23-II-19 :** Remove these pages and substitute
pages 23-II-17 through

23-II-19, attached.

Paragraph 23.14 is amended to include procedures for identifying and
processing open CHAMPVA cases by accessing the VHA Health Administration
Center\'s website.

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 168**

**Washington, DC 20420 February 4, 2003**

Veterans Benefits Manual M21-1, Part IV, " Authorization Procedures," is
changed as follows:

**Page 23-i:** Remove this page and substitute with page 23-i, attached.

**Pages 23-II-7 through 23-II-18 :** Remove these pages and substitute
pages 23-II-17 through

23-II-18, attached.

Paragraph 23.14 is amended to include procedures for identifying and
processing open CHAMPVA cases by accessing the VHA Health Administration
Center\'s website.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 169**

**Washington, DC 20420 April 1, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 20-i through 20-iii and 20-III-1 through 20-XII-3:** Remove these
pages and substitute pages 20-i through 20-iii and 20-III-1 through
20-XII-3, attached.

This change removes the Subchapter III, Emergency Officers' Retirement
Claims, (20.10 through 20.15) as there are no longer any beneficiaries
in receipt of this benefit. Subsequent Subchapters have been renumbered.
This change also removes the requirement to send copies of SL 10 ratings
to the Compensation and Pension Service. \[See p. 20-III-3 and p.
20-VII-3.\]

**Rescission:** Change 108, dated August 27, 1999.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 170**

**Washington, DC 20420 April 30, 2003**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-XI-1 through 31-XI-2**: Remove these pages and substitute
pages 31-XI-1 through 31-XI-2 attached.

Paragraph 31.84 is amended to show that predetermination notice should
be sent to the beneficiary at the most recent address of record. This
may or may not be the prison address. The previous instruction to
automatically send predetermination notice to the prison address shown
on the worksheet has caused problems because in many instances the
beneficiary is no longer incarcerated or has been moved to a different
facility by the time the letter is sent. The beneficiary is responsible
for providing VA with a current mailing address and it is reasonable to
assume that the mail is most likely to get to the beneficiary if it is
sent to the most recent address provided by the beneficiary.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 171**

**Washington, DC 20420 May 20, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 12-I-13 through 12-I-17:** Remove these pages and substitute
pages 12-I-13 through 12-I-17, attached.

12.12a is amended, with an exception and a cross-reference to 23.14a, to
indicate that surviving spouses who remarry after age 55 retain
eligibility for CHAMPVA.

Pages 23-II-17 and 23-II-19: **Remove these pages and substitute pages
23-II-17 and 23-II-18, attached**.

23.14a is amended to include ***Note 4*** to reflect the change,
effective February 4, 2003, allowing surviving spouses who remarry after
age 55 to retain CHAMPVA eligibility. Individuals remarrying after age
55 but prior to the date of this law may establish eligibility only if
an application for CHAMPVA is received between February 5, 2002, and
February 4, 2003.

These changes implement provisions of Public Law 107-330, The Veterans
Benefits Act of 2002.

**Rescission:** Change 157 dated August 6, 2002, and Change 168 Erratum,
dated March 19, 2003.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 172**

**Washington, DC 20420 May 20, 2003**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-IX-13 through 31-IX-14**: Remove these pages and substitute
pages 31-IX-13 through 31-IX-14 attached.

Paragraph 31.70 is amended to show that all IVM-related materials except
award documents should be considered to be federal tax return
information and should be stored in the IVM folder. IVM-related award
documents should be annotated with the words "See IVM Folder" to alert
others that the documentation supporting the award action is in the IVM
folder. This change incorporates into M21-1 information that was
previously in C&P Service Fast Letter 01-70.

Paragraph 31.73 is amended to show that the annual IRS Safeguard
Activities Report must be submitted by any station that had IVM files on
station at the end of the calendar year ending COB December 31 or that
destroyed IVM materials during the calendar year. Stations that had no
IVM files on station at the end of the calendar year and that destroyed
no IVM materials during the calendar year must submit a negative report.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 173**

**Washington, DC 20420 May 20, 2003**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 9-II-7 through 9-II-8**: Remove these pages and substitute pages
9-II-7 through 9-II-8 attached.

Paragraph 9.24 is amended to show that end product 290 should be
established when developing for official notice of a beneficiary's
incarceration. However, when development is completed and the only thing
remaining to be done before award action is providing predetermination
notice of the proposed adjustment, end product 290 should be taken and
end product 600 should be established. End products 290 and 600 should
not be pending simultaneously in connection with the same issue.

**Pages 10-I-1 through 10-I-2:** Remove these pages and substitute pages
10-I-1 through 10-I-2 attached.

Paragraph 10.02b(2) is corrected to show that a reservist may attain
veteran status for the purposes of compensation and pension if disabled
or killed by an acute myocardial infarction, a cardiac arrest, or a
cerebrovascular accident while proceeding directly to, or returning
directly from, a period of [in]{.underline}active duty for training.

**Pages 20-V-7 through 20-V-10:** Remove these pages and substitute
pages 20-V-7 through 20-V-10, attached.

Paragraph 20.29e(2)(b) has been changed to provide instructions on the
procedures required to prevent possible overpayment of the retroactive
period when an award is amended for a period prior to the date on which
a recoupment action was completed.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 174**

**Washington, DC 20420 May 30, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 26-I-5 through 26-I-8 and 26-IV-5 and 26-IV-6:** Remove these
pages and substitute pages 26-I-5 through 26-I-8 and 26-IV-5 and
26-IV-6.

Paragraph 26.01i.(3) is amended to note that when processing claims for
the one-time payment of the veteran's rate for the month of death, the
08E transaction must be input within 45 days of the debt being
established; otherwise, the Debt Management Center cannot stop the
reclamation process.

Paragraph 26.26 has been revised to indicate that in those instances
where notification of SBP entitlement is received from the service
finance center and no claim file exists, the regional office of
jurisdiction must establish one. This is in accordance with a Memorandum
of Understanding between VA and the Department of Defense.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 175**

**Washington, DC 20420 August 20, 2003**

**Erratum**

This Erratum removes Section XIII from Chapter 20. It was previously
incorporated into Section XII and was erroneously included in Change
175.

**Remove Pages 20-XIII-1 through 20-XIII-3**

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 175**

**Washington, DC 20420 August 13, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 20-i through 20-iii**: Remove these pages and substitute pages
20-i through 20-iii, attached.

**Pages 20-V-7 through 20-V-10:** Remove these pages and substitute
pages 20-V-7 through 20-V-10, attached.

Paragraph 20.29e(2)(b) has been changed to provide instructions on the
procedures required to prevent possible overpayment of the retroactive
period when an award is amended for a period prior to the date on which
a recoupment action was completed.

**Pages 20-XIII-1 through 20-XIII-3:** Remove these pages and substitute
20-XIII-1 through 20-XIII-3, attached.

Paragraphs 20.79 through 20.85 have been renumbered to 20.80 through
20.86.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 176**

**Washington, DC 20420 August 15, 2003**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 12-II-5 through 12-II-6**: Remove these pages and substitute
pages 12-II-5 through 12-II-6 attached.

Paragraph 12.17c(3)(b) is amended to show that the child of a veteran's
spouse can be recognized as the veteran's stepchild if VA finds as a
fact that the child was living with the veteran at the time of death or
the veteran was contributing at least half of the child's support at the
time of death. This is the case even if the spouse was separated from
the veteran at the time of the veteran's death.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 177**

**Washington, DC 20420 August 22, 2003**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-i through 31-ii:** Remove these pages and substitute with
pages 31-i through 31-ii.

**Pages 31-VIII-1 through 31-VIII-3**: Remove these pages and substitute
pages 31-VIII-1 through 31-VIII-3 attached.

Subchapter VIII is revised to reflect current Social Security Number
verification processing which employs the State Verification and
Exchange (SVES) system to produce a monthly Unverified Social Security
numbers list covering 25 terminal digits. The revised subchapter removes
references to the TPQY system and reflects that regional offices can now
access SSA information via the Federal On Line Inquiry (FOLQ) system
using the Share application.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 178**

**Washington, DC 20420 September 2, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 16-VI-5 through 16-VI-6** : Remove these pages and substitute
pages 16-VI-5 through 16-VI-6 , attached.

Paragraph 16.31c(1) is revised to allow adjustment of income based on
information received orally or via electronic means, such as e-mail and
fax, if the requirements in 38 CFR 3.217 are met.

**Rescission:** M21-1, Part IV, Change 117, dated April 28, 2000.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 179**

**Washington, DC 20420 September 2, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 16-iii to 16-iv:** Remove these pages and substitute pages
16-iii to 16-iv, attached.

**Pages 16-II-11 to 16-II-12:** Remove these pages and substitute pages
16-II-11 to 16-II-12, attached.

Subparagraph 16.09f(3) is revised to reflect that the cutoff point for
net worth administrative decisions has been increased to \$80,000.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 180**

**Washington, DC 20420 September 2, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 10-II-1 through 10-II-2:** Remove these pages and substitute
pages 10-II-1 through 10-II-2, attached.

**Pages 22-I-5 through 22-I-6**: Remove these pages and substitute page
22-I-5, attached.

**Pages 23-II-3 through 23-II-6**: Remove these pages and substitute
pages 23-II-3 through 23-II-6, attached.

Paragraphs 10.10c., 22.11 and 23.07a. are revised to reflect the ruling
of *Kilpatrick v. Principi*, 327 F.3d 1375 (Fed. Cir. 2003), which held
that a veteran in receipt of compensation for disability under 38 U.S.C.
1151 is also entitled to specially adapted housing and the special home
adaptation grant, provided such disability meets all other requirements
(38 CFR 3.809 and 3.809a).

**Rescission**: M21-1, Part IV, Change 61, dated August 24, 1994.

By Direction of the Under Secretary for Benefits

> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 181**

**Washington, DC 20420 October 31, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 29-III-3 through 29-III-4:** Remove these pages and substitute
pages 29-III-3 through 29-III-4,

attached.

Paragraphs 29.07e is amended to show an increase in continuing
unreimbursed medical expenses (CUMEs) reported on Eligibility
Verification Reports (EVRs) from the current \$200 to \$800. M21-1, Part
IV, 29.07e, provides instructions for processing unreimbused medical
expenses (UMEs) reported on Eligibility Verification Reports (EVRs).
Currently, EVRs sent to beneficiaries have the amount of continuing
medical expenses (CUME's) in the Master Record printed in the "Family
Medical Expenses" section on the back of this document (Block 8A). The
EVRs ask beneficiaries to enter the amount of UMEs they paid during the
received year, as well as provide an estimate of the amount of UMEs to
be paid during the anticipated year (Blocks 8B and 8C). The paragraph
requires specific processing methods depending on whether or not the
amounts entered in Blocks 8B and 8C exceed the pre-printed amount by
\$200. Under current directive, processing of EVRs when the received or
anticipated UMEs exceed the pre-printed amount by \$200 or more results
in considerable development by the Veterans Service Representatives
(VSRs), thereby placing an added burden on the beneficiary while adding
little to the integrity of the program. There has been no change in the
\$200 limit for the CUMEs since May 1992 despite research indicating
that Medicare spending for prescription drugs tripled between 1990 and
1999, while health-care premiums rose 11% between Spring 2000 and Spring
2001.

The practice of selecting a random sample of Improved Pension cases by
Hines BDC for Provider proof of claimed medical expenses review, and
regional office action when Provider proof write-outs are received,
remains in effect (M21-1, Part IV, 16.31 (m)).

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL DISTRIBUTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 182**

Washington, DC 20420 October 31, 2003

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 39-1 through 39-2:** Remove these pages and substitute pages
39-1 through 39-2, attached.

Paragraph 39.01c. has been amended to reflect the extension to September
30, 2011, of the provisions limiting pension payments to \$90 per month
for certain beneficiaries receiving Medicaid covered nursing home care.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

## Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 183**

**Washington, DC 20420 October 31, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 14-I-5 through 14-I-8:** Remove these pages and substitute pages
14-I-5 through 14-I-8, attached.

Paragraph 14.02a(5) has been amended to remove the requirement to use
the On-Line Approval File (OLAF) to project the date of termination date
of school child benefits.

**Rescission:** M21-1, Part IV, Change 129.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 184**

**Washington, DC 20420 November 26, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 35-A-9 through 35-A-10** Remove these pages and substitute pages
35-A-9 through 35-A-10 attached.

Chapter 35, Section A, "DROs and the *De Novo* Review Process," has been
corrected to state that the DRO reports to the Veterans Service Center
Manager.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 185**

**Washington, DC 20420 December 1, 2003**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 31-iii through 31-iv:** Remove these pages and substitute pages
31-iii through 31-iv attached.

**Pages 31-IX-11 through 31-IX-14**: Remove these pages and substitute
pages 31-IX-11 through 31-IX-14, attached.

Paragraph 31.69e. is revised, and 31.69e.(2) deleted, with subsequent
paragraphs renumbered, to show that a service organization may now serve
as a veteran's representative for Income Verification Match purposes.
However, for purposes restricted to the match, such representation is
valid for only five years from the date the VA Form 21-22 is signed. For
all other purposes, there is no time restriction. Paragraph 31.69e.(4)
is amended to show that the individual representative of a veteran's
service organization (block 3b. of VA Form 21-22) does not need to be a
named individual for these purposes.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 187**

**Washington, DC 20420 January 7, 2004**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 31-iii** **and 31-iv**: Remove these pages and substitute pages
31-iii and 31-iv attached.

**Pages 31-VIII-1 through 31-VIII-3**: Remove these pages and substitute
pages 31-VIII-1 through 31-VIII-3 attached.

A NOTE is added under paragraph 31.37d(2) to show that it is not
possible to correct an erroneous Date of Birth (DOB) in the Hines master
record via CORR if the DOB in the master record is in the 1800s. If a
station needs to change a DOB in the 1800s, it should send an e-mail to
VACO which will prepare a request for Hines BDC to correct the DOB.

**Pages 31-XIII-1 through 31-XIII-2**: Remove these pages and substitute
pages 31-XIII-1 and 31-XIII-2 attached.

A NOTE is added under paragraph 31.102b to show that it is not possible
to correct an erroneous Date of Birth (DOB) in the Hines master record
via CORR if the DOB in the master record is in the 1800s. If a station
needs to change a DOB in the 1800s, it should send an e-mail to VACO
which will prepare a request for Hines BDC to correct the DOB.

Paragraph 31.108 is amended to show that stations should retain a copy
of the Over Age 100 Control List for two years from the date of the
list. The list should be annotated to show action taken or the reason
why no action was taken and should be available for review during site
visits.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 188**

**Washington, DC 20420 January 14, 2004**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 16-VI-1 through 16-VI-2:** Remove these pages and substitute
pages 16-VI-1 through 16-VI-2 attached.

Paragraph 16.31b(1)(c) is amended show that telephone verification of
nursing home fees is required when nursing home fees are first claimed,
if the beneficiary transfers to a new facility, or if nursing
home-related expenses increase substantially more than the
cost-of-living increase compared to the expenses allowed during the
prior EVR reporting period.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

Veterans Benefits Administration M21-1, Part IV

Department of Veterans Affairs Change 189

Washington, DC 20420 February 5, 2004

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 17-I-1 through 17-I-2**: Remove these pages and substitute pages
17-I-1 through 17-I-2, attached.

**Page 19-i:** Remove this page and substitute page 19-i, attached.

**Page 19-I-1 through 19-I-8**: Remove these pages and substitute pages
19-I-1 through 19-I-10, attached.

**Page 37-i**: Remove this page and substitute page 37-i, attached.

**Pages 37-II-1 through 37-II-3**: Remove these pages and substitute
pages 37-II-1 through 37-II-3, attached.

Paragraphs 17.01d.(2), 19.08a., and 37.03 - 37.05 are revised to show
that foreign cases formerly under the jurisdiction of the Washington
Regional Office are now under the jurisdiction of the Pittsburgh
Regional Office. Chapter 19, Subchapter I is replaced to correct
formatting.

Paragraph 37.04 is obsolete and therefore deleted, and paragraph 37.05
is now renumbered. This paragraph contains all the procedures for
handling claims involving beneficiaries in countries on the Treasury
Department list.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 190**

**Washington, DC 20420 February 6, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 14-II-3 through 14-II-4:** Remove these pages and substitute
pages 14-II-3 through 14-II-4 attached.

Paragraph 14.13a(1) is amended show the correct regulation citation as
38 CFR 3.503(a)(8), instead of 38 CFR 3.503(h).

Paragraph 14.14a(1) is revised to remove an obsolete reference to the
Adjudication Division.

**Pages 16-VI-15 through 16-VI-16** : Remove these pages and substitute
pages 16-VI-15 through 16-VI-16 , attached.

Paragraph 16.32g. is revised to remove, in the last sentence of
**Example 1**, the phrase "if no other period is more advantageous to
the surviving spouse." In the example given, the expenses were paid
before the date of pension entitlement, and must be deducted from
countable income during the first 12 months of entitlement (16.32f.(4)).

**Pages 20-V-1 and 20-V-2:** Remove these pages and substitute pages
20-V-I and 20-V-2, attached.

Part IV, 20.26 is revised to show the appropriate flat rate percentages
for calculating the Federal income tax withholding for recoupment of
readjustment pay under 10 U.S.C. 3814(a), and separation pay cases under
10 U.S.C 687 and 10 U.S.C. 1174, for payments received after September
30, 1996.

**Pages 29-III-1 through 29-III-2 :** Remove these pages and substitute
pages 29-III-1 through

29-III-2 , attached.

Paragraph 29.07c.(1) is revised to show that development should be
initiated if a beneficiary reports interest-bearing assets of \$5,000 or
more and does not report any interest income.

By Direction of the Under Secretary for Benefits

Ronald J. Henke

> Director, Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 191**

### Washington, DC 20420 February 10, 2004

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 20-IV-1 through 20-IV-6**: Remove these pages and substitute
pages 20-IV-1 through 20-IV-6 attached.

**Pages 20-V-1 and 20-V-2:** Remove these pages and substitute pages
20-V-I and 20-V-2, attached.

Paragraph 20.19b is amended to show that in cases where the veteran
agrees with the number of training days shown on the drill pay waiver
form or reports a greater number of training days, VA Form 21-8951
should not be returned as incomplete because the signature of the unit
commander is missing.

Paragraph 20.19g is amended to correct the cross reference from 20.28 to
20.22.

Paragraph 20.19h, second sentence is reworded to make it clearer that
changing the ACTIVE RESERVIST field on the M15 screen to "N" and the
number of days to "000" will prevent issuance of a follow-up VA Form
21-8951.

Paragraph 20.20a(2) is amended to show that, in addition to making the
required entries on the 401 screen when processing a drill pay waiver
award, it is also necessary to process a CORR transaction to the ACTIVE
RESERVIST field on the M15 screen in order to prevent issuance of a
followup VA Form 21-8951 in 90 days.

Paragraph 20.22(a) and (b) is amended to explain that a CORR transaction
is required in addition to the appropriate entries on the 401 screen
when processing a drill pay waiver award. The change in the ACTIVE
RESERVIST indicator does not immediately remove the diary for issuance
of a follow-up VA Form 21-8951. However, the follow-up VA Form 21-8951
should not issue unless there is a "Y" in the ACTIVE RESERVIST field on
the M15 screen at the time the diary matures.

Paragraph 20.26 (a) (3), (4), and (6) is revised to correct cross
references from 20.40, 20.41, and 20.40 to 20.34, 20.35 and 20.34
respectively.

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 192**

**Washington, DC 20420 February 26, 2004**

Veterans Benefits Administration Manual, M21-1, Part IV, "Authorization
Procedures," is changed as follows:

**Pages 8-i and 8-ii:** Remove these pages and substitute pages 8-i and
8-ii attached.

**Pages 8-X-1 and 8-X-3:** Remove these pages and substitute pages 8-X-1
and 8-X-3 attached.

Paragraph 8.36 c(2)(b) is updated to show that the Fiduciary Program
Staff is 216 not 211.

Paragraph 8.37 a (1) is revised to show that the worksheet in Exhibit B
must be completed prior to certification of any appeal to BVA.

**Pages 8-E-3 through 8-E-9:** Remove these pages and substitute pages
8-E-3 through 8-E-7 attached.

Exhibit B is amended to include specific reference to Duty to Assist
(VCAA) and make miscellaneous editorial changes.

**Page 12-i:** Remove this page and substitute page 12-i attached.

**Pages 12-I-13** through **Pages 12-I-17:** Remove these pages and
substitute pages 12-I-13 through 12-I-18 attached.

Paragraph 12.12(a) is revised to show retention of certain veterans'
survivor benefits for surviving spouses remarrying on or after age 57
(Public Law 108-183).

**Pages 36-II-3** through **36-II-4**: Remove these pages and substitute
pages 36-II-3 through 36-II-4.

Paragraph 36.11b is revised to show additional offenses which are
considered subversive activities for claims filed after December 16,
2003 (Public Law 108-183).

Paragraphs 36.11a and 36.12 are updated to replace the term District
Counsel with Regional Counsel.

Paragraphs 36.11a and 36.14 are updated to replace references to Central
Office (213B) and (211C) with Central Office (211B).

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

Compensation and Pension Service

Distribution: RPC 2150

FD

###### 

###### Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 193**

**Washington, DC 20420 March 11, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 25-VII-1 through 25-VII-2:** Remove these pages and substitute
pages 25-VII-1 through 25-VII-3 attached.

Subparagraph 25.11a. is amended to reflect that the Medal of Honor
pension rate was increased to \$1,000 effective September 1, 2003 and
that annual cost of living adjustments will begin on December 1, 2004.

Subparagraph 25.11c. is revised to delete the reference to a \$400 Medal
of Honor pension rate.

Subparagraph 25.11d. is added to provide instructions for awarding the
retroactive lump sum of Medal of Honor pension payment under 38 CFR
3.802(c).

These changes implement provisions of 38 CFR 3.802(c) and Public Law
107-330, The Veterans Benefits Act of 2002.

**Rescission**: Change 120

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 194**

**Washington, DC 20420 April 1, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 10-i and 10-I-1 through 10-I-6:** Remove these pages and
substitute pages 10-i and 10-I-1 and 10-I-6, attached.

Paragraphs 10.01a.(2), 10.02b.(1) and (2) are amended to correct the
language of Change 173, which omitted the provision that if an
individual is disabled or dies from injury incurred while proceeding
directly to or directly from active duty for training or inactive duty
training, that person will be considered to have been on active duty for
training or inactive duty training, as applicable.

Outdated references to Target are corrected to BDN throughout the
chapter, and miscellaneous editorial corrections are made.

**Pages 23-i and 23-II-7 through 23-II-12:** Remove these pages and
substitute pages 23-i and 23-II-7 through 23-II-12, attached.

Paragraph 23.08b is revised to remove tractor from the list of other
conveyances because the type of conveyance authorized must require a
license to operate (38 U.S.C. 3903(b)).

Paragraph 23.08h(2) is revised to show factors that should be considered
when making an administrative decision regarding a claim for automobile
allowance for or other conveyance. Miscellaneous editorial corrections
are also made throughout 23.08 and 23.09.

**Pages 25-VI-1 through 25-VI-5**: Remove these pages and substitute
pages 25-VI-1 through 25-VI-6, attached.

Paragraph 25.09 is revised to show that annual clothing allowance
processing is now under the jurisdiction of the Veterans Health
Administration; however, regional offices will be responsible for
processing accrued clothing allowance claims filed as a result of a
deceased veteran. The paragraph has been reorganized to incorporate this
information. In addition, the paragraph is revised to show that the
regional office will be responsible for Notice of Disagreement (NOD) as
a result of its action prior to the transition of the clothing allowance
claims processing to VHA. All sections of the paragraph that made
specific reference to RO authorization actions are deleted or changed to
reflect the new jurisdiction. The term adjudicator is replaced with
Veterans Service Representative (VSR), and miscellaneous editorial
corrections are made.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

## 

###### Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 195**

**Washington, DC 20420 April 21, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 14-I-3 through 14-I-4:** Remove these pages and substitute pages
14-I-3 through 14-I-4, attached.

Paragraph 14.02 (a) (3) is revised to state that when benefits have been
approved for a child attending school, and the child transfers to
another approved educational institution, or changes a course in the
existing approved educational institute, then no VA Form 21-674 will be
requested and payment previously made will not be disturbed (38 CFR
3.667(d)).

By Direction of the Under Secretary for Benefits

Ronald J. Henke, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

###### Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 196**

**Washington, DC 20420 March 31, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 34-i**: Remove this page and substitute page 34-i, attached.

**Pages 34-I-1 through 34-C-3**: Remove these pages and substitute pages
34-I-1 through 34-C-3, attached.

Paragraphs 34.03 and 34.04 are revised to update the terms Adjudication
Officer and Adjudication to Veterans Service Center Manager and Veterans
Service Center. Miscellaneous editorial corrections are also made
throughout the chapter.

Paragraphs 34.07, 34.18, 34.19, and 34.20 are revised to show that
Special Philippine Scouts, like other Filipino veterans, are now
entitled to compensation at the full-dollar rate and burial benefits if
they reside in the United States as United States citizens or as aliens
lawfully admitted for permanent residence (Veterans Benefit Act of 2003,
Public Law 108-183). Public Law 108-183 also allows service-connected
death benefits be paid at the full-dollar rate to survivors of veterans
who served in the Special Philippine Scouts, Commonwealth Army of the
Philippines, or organized guerilla groups if survivors reside in the
U.S. as citizens, or aliens lawfully admitted for permanent residence.

Chart A. VA Benefits in the Philippines, is revised to show the groups
of Filipino veterans and their survivors who are entitled to full dollar
payment and burial benefits under Public Law 108-183.

Exhibit A---Residency Verification Report---Veterans and Survivors
(Sample), is revised to include Special Philippine Scouts entitled to
disability compensation benefits at the full-dollar rate under Public
Law 108-183, and survivors entitled to DIC benefits at the full-dollar
rate under Public Law 108-183. This is a sample of a form letter that
will be available in the near future.

> By Direction of the Under Secretary for Benefits
>
> Ronald J. Henke, Director
>
> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 197**

**Washington, DC 20420 April 5, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 9-II-1 through 9-II-4:** Remove these pages and substitute pages
9-II-1 through 9-II-4 attached.

Paragraph 9.17e is updated to replace the term "hearing officer" with
"Decision Review Officer."

Paragraph 9.18a and 9.18d are revised to state that all Decision Review
Officer rating decisions which will reduce a service-connected
evaluation based on clear and unmistakable error must be signed by the
Veterans Service Center Manager or Assistant Veterans Service Center
Manager. As indicated in 9.18d, this requirement applies even if the
reduction in evaluation does not result in decreased benefits.

Paragraph 9.18b is amended to show the correct references as "9.17a" and
"9.17e."

Paragraph 9.18c is revised to reflect that the signature of an Assistant
Veterans Service Center Manager may be appropriate for Decision Review
Officer rating decisions.

**Pages 35-A-5 through 35-A-17:** Remove these pages and substitute
pages 35-A-5 through 35-A-18 attached.

Chapter 35, Section A, is amended to require Decision Review Officers to
submit rating decisions for the approval of the Veterans Service Center
Manager or Assistant Veterans Service Center Manager when the decision
cites clear and unmistakable error and would reduce a service-connected
evaluation or would sever service connection.

This change is reflected on the attached pages

-   35-A-6

-   35-A-7, and

-   35-A-17.

    By Direction of the Under Secretary for Benefits

    Ronald J. Henke, Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    LOCAL REPRODUCTION AUTHORIZED

    **Veterans Benefits Administration M21-1, Part IV**

    **Department of Veterans Affairs Change 198**

    **Washington, DC 20420 May 20, 2004**

    Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures,"
    is changed as follows:

    **Pages 25-II-1 and 25-II-2:** Remove these pages and substitute
    pages 25-II-1 and 25-II-2 attached.

    Note 1 in paragraph 25.04a is removed because the \$1,500 estate
    limitation for institutionalized incompetent veterans has been
    eliminated. The subsequent notes are renumbered.

    Note 2 in paragraph 25.04a (renumbered as Note 1) is updated to
    include instructions to notify the appropriate Regional Processing
    Office of a beneficiary's incarceration if the BDN M21 screen shows
    that educational benefits are being paid.

    Paragraph 25.04a(5) is revised to include instructions to count the
    first *full* day of imprisonment following conviction as the first
    day of imprisonment when determining the 61^st^ day of imprisonment
    for the purpose of terminating or reducing an award.

    Paragraphs 25.04a(1), 25.04b(1) and 25.04b(2)(b) are revised to
    insert the phrase "or veteran's fiduciary" after "veteran."

    By Direction of the Under Secretary for Benefits

    Carolyn F. Hunt, Acting Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    **Veterans Benefits Administration M21-1, Part IV**

    **Department of Veterans Affairs Change 199**

    **Washington, DC 20420 June 30, 2004**

    Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures,"
    is changed as follows:

    **Pages 8-IX-1 through 8-X-4:** Remove these pages and substitute
    pages 8-IX-1 through 8-X-4 attached.

    Paragraph 8.34 is revised to reflect that a claimant's
    representative has the authority to withdraw a notice of
    disagreement or substantive appeal. The reference to 38 CFR
    20.204(c) is changed to 38 CFR 20.204.

    Paragraph 8.36b is removed because, although legal advice from the
    Regional Counsel or General Counsel may provide a basis for a
    decision on a claim, only a regional office is authorized to render
    the decision. Former paragraphs 8.36c through k are redesignated as
    paragraphs 8.36b through j.

    The note in paragraph 8.37a(1) is revised to reflect that the
    worksheet displayed in Exhibit B is the approved certification
    worksheet that must be completed prior to certification of any
    appeal to the Board of Veterans' Appeals.

    Paragraph 8.37a(2) is revised to clarify the use of the VA Form 8
    retained in the Veterans Service Center and to include a reference
    to paragraph 8.40a.

    By Direction of the Under Secretary for Benefits

    Carolyn F. Hunt, Acting Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    LOCAL REPRODUCTION AUTHORIZED

    **Veterans Benefits Administration M21-1, Part IV**

    **Department of Veterans Affairs Change 200**

    **Washington, DC 20420 July 1, 2004**

    Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures,"
    is changed as follows:

    **Pages 32-II-5 and 32-II-6:** Remove these pages and substitute
    pages 32-II-5 and 32-II-6 attached.

    Paragraph 32.15 is amended to show (314) 552-9817 as the current fax
    number for the REPS Processing Unit at the St. Louis Regional
    Office.

    Paragraph 32.18 is amended to show (314) 552-9803 as the current
    telephone number for VA personnel and beneficiaries to use when
    inquiring about REPS benefits.

    By Direction of the Under Secretary for Benefits

    Carolyn F. Hunt, Acting Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    LOCAL REPRODUCTION AUTHORIZED

    **Veterans Benefits Administration M21-1, Part IV**

    **Department of Veterans Affairs Change 201**

    **Washington, DC 20420 July 7, 2004**

    Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures,"
    is changed as follows:

    **Pages 12-i, 12-I-7 through 12-I-18** : Remove these pages and
    substitute pages 12-i, and 12-I-7 through 12-I-18, attached.

    Paragraph 12.04e. has been added to provide directions for verifying
    the validity of common law marriages outside the United States.
    Subsequent paragraphs in 12.04 have been renumbered.

    Paragraph 12.04f.: In the paragraph heading, and in 12.04f.(2)(a),
    "state" has been replaced by "jurisdiction."

    Paragraph 12.14f.(2) is revised to add, after the last sentence,
    "Special law code 24 is to be used when eligibility to DIC is
    reinstated." This language was omitted by Change 157, but the
    requirement remains in effect.

    "Adjudication Officer," "Section Chief," and "Adjudicator" have been
    replaced by "Veterans Service Center Manager (VSCM)", "Coach" and
    "Veterans Service Representative (VSR)" where necessary.

    **Pages 20-IV-1 through 20-IV-2**: Remove these pages and substitute
    pages 20-IV-1 through 20-IV-2 attached.

    **Paragraph 20.17d** is amended to remove a statement that VA Form
    21-8951 requires the signature of the unit commander or designee.
    The change makes this paragraph consistent with paragraph 20.19
    which requires the unit commander's signature only if the veteran
    reports fewer training days than the number shown on the form.

    By Direction of the Under Secretary for Benefits

    Carolyn F. Hunt, Acting Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    **Veterans Benefits Administration M21-1, Part IV**

    **Department of Veterans Affairs Change 202**

    **Washington, DC 20420 July 13, 2004**

    Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures,"
    is changed as follows:

    **Pages 1-IV-1 and 1-IV-3:** Remove these pages and substitute pages
    1-IV-1 and 1-IV-4 attached.

    A note is added to paragraph 1.14a to reflect that claims by
    survivors of ex-prisoners of war must receive expedited processing.

    By Direction of the Under Secretary for Benefits

    Carolyn F. Hunt, Acting Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    LOCAL REPRODUCTION AUTHORIZED

    **Veterans Benefits Administration M21-1, Part IV**

    **Department of Veterans Affairs Change 203**

###### Washington, DC 20420 August 11, 2004 {#washington-dc-20420-august-11-2004 .unnumbered}

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 12-I-7 and 12-I-8: :** Remove these pages and substitute pages
12-I-7 and 12-I-8 attached.

Paragraph 12.04f(1) and f(2)(d) are revised to change the reference
regarding administrative decisions from subparagraph g to subparagraph
h.

**Pages 14-I-7 and 14-I-8:** Remove these pages and substitute pages
14-I-7 and 14-I-8 attached.

Paragraph 14.03k is revised to conform with 38 CFR 3.217(b) regarding
provisions for acceptance of information with need for written notice on
adverse actions.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

###### Veterans Benefits Administration M21-1, Part IV {#veterans-benefits-administration-m21-1-part-iv-11 .unnumbered}

**Department of Veterans Affairs Change 204**

**Washington, DC 20420 August 27, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 10-I-3 through 10-I-4:** Remove these pages and substitute pages
10-I-3 through 10-I-4 attached.

Paragraph 10.03c is revised to clarify that when a guard member is
injured on "active service," the character of service for the period in
which the injury occurred must be under conditions other than
dishonorable. Additionally, a reference to the General Counsel opinion
06-2004 is added.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 205**

**Washington, DC 20420 September 17, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 16-ix through 16-x:** Remove these pages and substitute pages
16-ix through 16-x attached.

**Pages 16-I-5 through 16-I-8:** Remove these pages and substitute pages
16-I-5 through 16-I-8 attached.

Paragraph 16.02e(8) is added to state that any assistance and/or savings
received from the Medicare Prescription Drug, Improvement and
Modernization Act (MMA) is not countable income.

Paragraph 16.02h(1) is revised to update sources of information from the
Third Party Inquiry System (TPQY) to the Social Security Administration
database accessed through the SHARE application.

**Pages 16-IX-1 through 16-IX-4:** Remove these pages and substitute
pages 16-IX-1 through 16-IX-4 attached.

Paragraph 16.41b(1) is revised to state that any assistance and/or
savings received from the Medicare Prescription Drug, Improvement and
Modernization Act (MMA) is not countable income.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 206**

**Washington, DC 20420 September 22, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 25-VI-1 through 25-VI-2:** Remove these pages and substitute
pages 25-IV-1 through 25-IV-2attached.

Paragraphs 25.09a and 25.09c have been revised to delete any indication
that beneficiaries in receipt under 38 USC 1160 are eligible to receive
the annual clothing allowance payment (ACAP). The provisions of 38 CFR §
3.810 do not allow for payment of the ACAP for beneficiaries in receipt
under 38 USC 1160.

Paragraph 25.09e(6) is revised to delete reference to 38 CFR § 3.557 due
to the fact that the estate limitation for incompetent veterans is no
longer in effect.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 207**

**Washington, DC 20420 September 28, 2004**

Veterans Benefits Administration Manual M21-1, Part IV, \"Authorization
Procedures,\" is changed as follows:

**Pages 29-III-5 through 29-III-10:** Remove these pages and substitute
pages 29-III-5 through 29-III-10 attached.

Paragraphs 29.07j, 29.08c, and 29.09d are amended to state that end
product 120 should be established if a beneficiary answers yes to the
EVR question \"Are you a patient in a nursing home?\" but does not
specifically claim aid and attendance benefits.

By Direction of the Under Secretary for Benefits

Renée L. Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 208**

**Washington, DC 20420 September 28, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 8-VI-1 and 8-VI-2:** Remove these pages and substitute pages
8-VI-1 and 8-VI-2 attached.

Paragraph 8.26 is revised to clarify the procedures to follow when the
Board of Veterans' Appeals grants an advanced motion of an appeal in an
emergent situation.

By Direction of the Under Secretary for Benefits

Renée L. Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 209**

**Washington, DC 20420 October 1, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 14-II-1 through 14-II-2:** Remove these pages and substitute
pages 14-II-1 through 14-II-2 attached.

Paragraph 14.09a(2)(b) note has been revised to update the reference for
instances when authorization is not required to forward the issue of
permanency for DEA purposes to the rating activity.

Paragraph 14.09b(1), (2) and (3) have been consolidated into 14.09b.
References to obsolete forms have been deleted.

Paragraph 14.10 has been revised to state that initial processing of VA
Form 22-5490 is handled by the Regional Processing Office (RPO) of
jurisdiction. The Regional Office's responsibility is to provide the RPO
with an eligibility extract from the claim's folder upon the RPO's
request.

Paragraph 14.11a and b have been revised to update references.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

## Veterans Benefits Administration M21-1, Part IV {#veterans-benefits-administration-m21-1-part-iv-12 .unnumbered}

**Department of Veterans Affairs Change 210**

**Washington, DC 20420 October 8, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 20-VI-1 and 20-VI-2:** Remove these pages and substitute pages
20-VI-1 and 20-VI-2 attached.

Paragraph 20.36b(3) is revised to state the amended entitling criteria
for evaluating hearing impairment under the "paired organ" provisions of
38 CFR 3.383. This change is based on the amendment to 38 U.S.C.
1160(a)(3) by Section 103 of Public Law 107-330 effective December 6,
2002.

**Pages 25-VIII-5 and 25-VIII-6:** Remove these pages and substitute
pages 25-VIII-5 and 25-VIII-6 attached.

In paragraph 25.19, the reference to part VI, paragraph 7.67a, is
changed to part VI, paragraph 7.26a, and the reference to chapter 20,
subchapter VII, is changed to chapter 20, subchapter VI.

By Direction of the Under Secretary for Benefits

Renée L. Szbala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

###### Veterans Benefits Administration M21-1, Part IV {#veterans-benefits-administration-m21-1-part-iv-13 .unnumbered}

**Department of Veterans Affairs Change 211**

**Washington, DC 20420 October 26, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 34-II-3 through 34-II-4**: Remove these pages and substitute
pages 34-II-3 through 34-11-4, attached.

**Pages 34-C-1 through 34-C-2**: Remove these pages and substitute pages
34-C-1 through 34-C-2, attached.

Paragraph 34.19a is revised to remove the word "Effective" and insert
the word "Enactment." This is an editorial correction to clarify the
establishment of Public Law 108-183.

Paragraphs 34.19b (1) and 34.19b (3) are revised to show January 1,
2004, as the effective date of awards of compensation and Dependency and
Indemnity Compensation benefits at the full-dollar rate.

Chart A. Under the heading "Death Benefits" the columns pertaining to
survivor benefits have been revised to remove the word "Compensation"
and insert the word "Death." These are miscellaneous editorial
corrections.

By Direction of the Under Secretary for Benefits

Renée L. Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 212**

**Washington, DC 20420 December 30, 2004**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 16-IX-3 through 16-IX-4:** Remove these pages and substitute
pages 16-IX-3 through 16-IX-4 attached.

Paragraph 16.41b(18) has been revised to state that payments received
under Annuities for Certain Military Surviving Spouses (ACMSS) is
countable income for VA purposes.

**Pages 26-IV-1 through 26-IV-2:** Remove these pages and substitute
pages 26-IV-1 through 26-IV-2 attached.

Paragraph 26.24d has been added to provide general information regarding
payments received under Annuities for Certain Military Surviving Spouses
(ACMSS). The previous paragraph 26.24d has been moved to 26.24e.

Paragraph 26.24e has been revised to state that payments received under
ACMSS will be considered income for VA purposes.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 213**

###### Washington, DC 20420 January 11, 2005 {#washington-dc-20420-january-11-2005 .unnumbered}

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 18-i through 18-ii:** Remove these pages and substitute pages
18-i through 18-ii attached.

**Pages 18-I-1 through 18-I-4:** Remove these pages and substitute pages
18-I-1 through 18-I-4 attached.

Paragraphs 18.02a and 18.04e are revised to update the term Adjudication
to Veterans Service Center. These are miscellaneous editorial
corrections to the chapter.

Paragraph 18.03 is revised to include the necessary report to be
obtained when a contract nursing home (CNH) payee has been hospitalized
at VA expense.

**Pages 18-A-1 through 18-A-2:** Remove these pages and substitute pages
18-A-1 through 18-A-2 attached.

Addendum A is revised to show the guidelines for generating the CNH
report.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 214**

**Washington, DC 20420 February 1, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 20-IV-7 through 20-IV-8:** Remove these pages and substitute
pages 20-IV-7 through 20-IV-9 attached.

Note under Paragraph 20.25c(1) is added to clarify that if benefits were
not discontinued due to reentrance into active service, due process
should be provided to discontinue benefits effective the exact date of
reentrance into active service. Benefits should be discontinued
effective the date of reentrance into active service regardless of the
length of time that has elapsed since the veteran's reentrance.

Paragraph 20.25c(3) is revised to state that upon receipt of an
application for resumption of benefits, payment may be automatically
resumed for any static disabilities that veteran had at the time of
entry on active duty. The end of month rule does not apply to the
resumption of benefits following the release from active duty. Benefits
should be resumed the day following the release from active duty.

Paragraph 20.25c(4) is added to state that if a veteran had only
non-static disabilities at the time of entry on active duty, and an
application for resumption of benefits is received, do not resume
payments until complete service medical records covering the last period
of service have been obtained and reviewed. The end of month rule does
not apply to the resumption of benefits following the release from
active duty. Benefits should be resumed the day following the release
from active duty.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 215**

**Washington, DC 20420 February 2, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 14-I-3 through 14-I-8:** Remove these pages and substitute pages
14-I-3 through 14-I-8 attached.

Paragraph 14.02(a)(3) is revised to state that when benefits have been
approved for a child attending school, and the child changes course in
the existing approved education institution, then no VA Form 21-674 will
be requested and payment previously made will not be disturbed. If the
child transfers to another approved educational institution a new VA
Form 21-674 will be required. (38 CFR 3.667(d))

Paragraph 14.03g is revised to provide additional guidance on what
actions to take on up receipt of VA Form 21-8960.

**Pages 14-I-13 through 14-I-15:** Remove these pages and substitute
pages 14-I-13 through 14-I-15 attached.

Paragraph 14.06a is revised to state that benefits cannot be awarded for
a home school program unless the requirements of subparagraph d are met.

Paragraph 14.06d is added to state that a home school program may be
considered an approved course of instruction if

-   the program can be considered an educational institution *and*

-   the program is approved by the authority established within the
    State for determining educational standards or by an institution
    recognized by VA to be equally as competent to determine such
    standards as a State authority.

    Due to the addition of 14.06d, the previously numbered 14.06d, e,
    and f are renumbered as 14.06e, f, and g.

    "Predetermination notice" has been changed to "notice of proposed
    adverse action" where necessary. Additionally, minor editorial
    changes were made.

    **Rescission:** Change 195 dated April 21, 2004.

    By Direction of the Under Secretary for Benefits

    Renée Szybala, Director

    Compensation and Pension Service

    Distribution: RPC: 2068

    FD: EX: ASO and AR (included in RPC 2068)

    LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 216**

**Washington, DC 20420 April 5, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 26-i through 26-I-14:** Remove these pages and substitute pages
26-i through 26-I-14 attached.

Paragraph 26.01a(3) is modified to limit applications received after
September 30, 1984 to those in which the veteran's death was prior to
December 10, 2004.

Paragraph 26.01a(4) is added to provide for payment of death pension
from the first day of the month of the veterans death is the veteran
died on or after December 10, 2004 and the claim is received within one
year of death.

Paragraph 26.01c(5) is revised to clarify that the surviving spouse
could still be eligible for the month of death check under 38 CFR
3.20(c). Paragraph 26.01j has been added to provide examples of when to
pay the month of death check.

**Pages 26-I-23 through 26-I-24:** Remove these pages and substitute
pages 26-I-23 through\
26-I-24 attached.

Paragraph 26.13.3 is added to provide information about the transitional
benefit for surviving spouses, receiving DIC and having minor children
in their custody. This benefit is provided under Public Law 108-454 and
is effective January 1, 2005.

This transitional benefit is payable

-   only to surviving spouses with minor children

```{=html}
<!-- -->
```
-   for no more than a maximum of two years

-   in addition to any other DIC payable.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

###### Department of Veterans Affairs Change 216 Erratum

**Washington, DC 20420 April 26, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 26-I-5 through 26-I-8:** Remove these pages and substitute pages
26-I-5 through 26-I-8 attached.

Paragraph 26.01j is modified to include two additional examples of cases
requiring a determination as to a surviving spouse's entitlement to a
deceased veteran's benefit or rate of payment for the month of death.

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 217**

**Washington, DC 20420 April 19, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 18-i:** Remove this page and substitute page 18-i attached.

**Pages 18-II-3 through 18-II-7:** Remove these pages and substitute
pages 18-II-3 through 18-II-7 attached.

Existing paragraph 18.10c is changed to paragraph 18.10d.

New paragraph 18.10c is added to provide instructions for the collection
and transfer of pension-related hospital reports by regional offices to
pension maintenance centers. This change adds consistency with
procedures in M21-1MR, Part V, Subpart iv, Chapter 2, as well as with
Training Letter 03-05 (Revised).

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 218**

**Washington, DC 20420 April 19, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 20-IV-7 through 20-IV-9:** Remove these pages and substitute
pages 20-IV-7 through 20-IV-9 attached.

The numbering of the paragraph under paragraph 20.25c(3)(c) is corrected
to 20.25c(4).

Paragraph 20.25d is corrected to reflect situations in which National
Guard service under Title 32 is considered active duty for VA purposes
and, accordingly, qualifying service for benefit eligibility.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

###### Veterans Benefits Administration M21-1, Part IV

**Department of Veterans Affairs Change 219**

**Washington, DC 20420 April 29, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Page 20-iii:** Remove this page and substitute page 20-iii attached.

**Page 20-XII-3:** Remove this page and substitute pages 20-XII-3
through 20-XII-5 attached.

Paragraph 20.78a (formerly paragraphs 20.78a and b) is revised to
provide an overview of the Radiation Exposure Compensation Act (RECA) of
1990 and to discuss the three different types of claimants: uranium
miners, "downwinders," and on-site participants.

Paragraph 20.78b (formerly paragraph 20.78c) is rewritten to explain the
provisions of Public Law 108-454, which removed the bar to payment of
compensation or DIC benefits for veterans and survivors of veterans who
were issued payments under RECA, once the amount of the RECA payment is
recouped from the compensation or DIC award for months after March 26,
2002.

Paragraph 20.78c (formerly paragraph 20.78e) is rewritten to describe
the actions taken by the Department of Justice and the Compensation and
Pension Service Advisory Review staff when a claim is filed under RECA,
and to provide telephone contact numbers for the Advisory Review staff.

Paragraph 20.78d(1) is added to explain the offset procedures required
to recoup the RECA payment from compensation or DIC awards.

Paragraph 20.78d(2) is added to discuss what action to take if
compensation or DIC benefits were previously denied, reduced or
terminated due to receipt of a RECA payment.

Paragraph 20.78d(3) is added to state the requirement to offset the
entire compensation award if a veteran has no compensable disabilities
other than the one for which the RECA payment was made.

Paragraph 20.78d(4) is added to explain what offset action to take if a
veteran has both RECA and non-RECA disabilities.

Paragraph 20.78d(5) is added to clarify that if a veteran is entitled to
special monthly compensation (SMC), the amount of the SMC benefit should
be applied to recoup the RECA payment only if RECA disabilities would
support entitlement to SMC.

Paragraph 20.78d(6) is added to explain what action to take when
adjusting an award retroactively due to receipt of a RECA payment.

Paragraph 20.78d(7) is added to state that if a beneficiary receives a
RECA payment for a disability or death that is established as
service-connected under a provision of law other than 38 CFR 3.309(d),
compensation or DIC benefits should not be withheld to recoup the RECA
payment.

**Pages 22-i through 22-II-4:** Remove these pages and substitute pages
22-i through 22-II-4 attached.

Chapter 22 is revised to reflect the eligibility criteria for claims
under 38 U.S.C. 1151 received on or after October 1, 1997. For
eligibility to exist as of that date, additional disability or death
must be the proximate result of fault on the part of VA or of an event
not reasonably foreseeable, and not merely be an unintended result of
treatment or hospitalization.

**M21-1, Part IV Veterans Benefits Administration**

**Change 219 Department of Veterans Affairs**

**April 29, 2005 Washington, DC 20420**

The title of Chapter 22 is changed to "Disability or Death Due to
Hospital Care, Medical or Surgical Treatment, Examination, Training and
Rehabilitation Services, or Compensation Work Therapy (38 U.S.C. 1151)"
to reflect the current 38 U.S.C. 1151 eligibility criteria.

Paragraph 22.01a is amended to state that for eligibility to exist under
38 U.S.C. 1151, the additional disability or death incurred must be the
proximate result of fault on the part of the VA or of an event not
reasonably foreseeable. Note 1 is added to provide 38 CFR references for
claims received before and after October 1, 1997. Note 2 clarifies
eligibility requirements in claims received before October 1, 1997. Note
3 explains date-of-claim requirements for claims based on compensated
work therapy.

In paragraphs 22.04c and 22.04g, reference citations are updated.

Paragraph 22.11 is amended to state that eligibility to an automobile or
adaptive equipment may be based on disabilities for which compensation
is payable under 38 U.S.C. 1151. This change reflects the provisions of
Section 304 of Public Law 108-454 effective December 10, 2004. A
reference to 38 CFR 3.808 is added, and references to rescinded
paragraphs in M21-1are replaced by appropriate citations in M21-1MR.

In paragraphs 22.12a, 22.15b, 22.15c and 22.17, reference citations are
updated.

In paragraph 22.18a, the outdated term "Target" is replaced by "Benefits
Delivery Network (BDN)."

In paragraphs 22.19b and 22.20b through f, references to rescinded M21-1
paragraphs are replaced by appropriate citations in M21-1MR.

**RESCISSIONS:** Changes 68 and 156.

> By Direction of the Under Secretary for Benefits

Renée L. Szybala, Director

Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 220**

**Washington, DC 20420 June 6, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 26-i through 26-IV-8:** Remove these pages and substitute pages
26-i through 26-IV-7 attached.

Paragraph 26.01j is modified to include two additional examples of cases
requiring a determination as to a surviving spouse's entitlement to a
deceased veteran's benefit or rate of payment for the month of death.

Paragraph 26.01j(2) has been clarified to state that if the surviving
spouse's claim for death benefits is received within one year from the
date of the veteran's death and the rate of payment awarded is higher
than the veteran's rate for the month of death, there is no entitlement
to the month of death payment under either 38 CFR 3.20(b) or (c).

The remaining pages have been changed as a result of reformatting the
chapter.

Rescissions: Changes 56, 112, 174 and 216

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 221**

**Washington, DC 20420 August 2, 2005**

> Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures,"
> is changed as follows:

**Pages 18-VI-1 and 18-VI-8:** Remove these pages and substitute pages
18-VI-1 and 18-VI-8 attached.

Subparagraphs 18.31(b)(2) and 18.31(d)(1) are revised to show that all
cases involving institutional awards will require the referral of VA
Form 21-592, Request for Appointment of a Fiduciary, Custodian or
Guardian, to the fiduciary activity for oversight and proper
certification of the VAMC director or the appointment of an alternate
fiduciary.

References to VSO have been changed to VSCM. Other minor editorial
changes have been made on these pages.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 222**

**Washington, DC 20420 September 5, 2005**

Veterans Benefits Manual M21-1, Part IV "Authorization Procedures,"
Chapter 14, "School Attendance Provisions," is changed as follows:

**Page 14-I-15:** Remove this page and substitute page 14-I-15 attached.

**Pages 26-i and 26-I-15 through 26-I-23:** Remove these pages and
substitute pages 26-i, and 26-I-15 through 26-I-23 attached.

Paragraph 14.08 a is modified to remove the reference to VA Form
21-4183, "Application for Dependency and Indemnity Compensation by
Child." That form has been cancelled and is no longer valid.

Paragraph 26.07a A Note is added to identify the "Age 57" provision of
PL 108-183 for remarried surviving spouses and to refer to Part IV,
paragraph 12.12, for detailed information.

Paragraph 26.07e(1)(a) is modified to remove reference to the cancelled
VA Form 21-4183, "Application for Dependency and Indemnity Compensation
by Child," which is obsolete. Mention is made of the option to request
VA Form 21-686c, "Declaration of Status of Dependents," if verification
of current dependency status is necessary. Note is added to clarify that
no specific application form is required from a child after remarriage
of a surviving spouse.

Pages 26-I-18 through 26-I-23 are repaginated due to change of paragraph
length in Paragraph 26.07. Content of these pages is unchanged.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 223**

**Washington, DC 20420 October 5, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 17-II-1 through 17-II-2 and pages 17-II-5 through 17-II-6:**
Remove these pages and substitute pages 17-II-1 through 17-II-2 and
pages 17-II-5 through 17-II-6 attached.

Paragraph 17.15a is revised to clarify that under certain circumstances,
direct payments to a beneficiary may be suspended pending certification
of a fiduciary appointment, if a rating or court determination of
incompetency is of record. The paragraph is further revised to add a
note to show that the VSCM can approve the appointment of a temporary
fiduciary when there is clear evidence that a beneficiary's funds are
being misused, or when the beneficiary is unable or unwilling to use
funds for urgent necessities.

References to VSO and Adjudication are changed to Veterans Service
Center Manager (VSCM), Veterans Service Center (VSC) or Fiduciary
Activity, appropriately. Other minor editorial changes have been made on
these pages.

Paragraph 17.15c is revised to reflect the appropriate cross reference,
"part VI, paragraph 9.08b."

Paragraph 17.15c(1)(a) is revised to show that development of the issue
of incompetency is required upon receipt of guardianship documents or
other notices of a judicial determination of incompetency, if the
veteran has been declared by a proper court to be incompetent.

Paragraph 17.18a is revised to indicate that VA will withhold
retroactive benefits owed to an incompetent veteran when VA pays
benefits to the veteran's spouse.

Paragraph 17.18b(1) is revised to indicate that immediate payment not be
made to an incompetent veteran's spouse when a court of jurisdiction has
appointed the spouse as the veteran's fiduciary. Such cases must first
be certified by the VSCM.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M21-1, Part IV**

**Department of Veterans Affairs Change 224**

**Washington, DC 20420 December 19, 2005**

Veterans Benefits Manual M21-1, Part IV, "Authorization Procedures," is
changed as follows:

**Pages 29-II-1 and 29-II-2:** Remove these pages and substitute pages
29-II-1 and 29-II-2 attached.

Paragraph 29.02b(2) is revised to show that only one witness of a
signature by mark on an EVR is necessary, provided that witness is an
accredited agent, attorney, or service organization representative.

Subparagraphs 29.02b(3)(h) and (i) are revised to show that, except as
provided in subparagraphs 29.02b(3)(a) through (g), if a payee leaves
any block on an EVR blank, the EVR is considered incomplete and must be
returned to the payee for completion.

By Direction of the Under Secretary for Benefits

Renée Szybala, Director

> Compensation and Pension Service

Distribution: RPC: 2068

FD: EX: ASO and AR (included in RPC 2068)

LOCAL REPRODUCTION AUTHORIZED