## Section A. Simultaneous Award Adjustments

#### Overview

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

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

  1           Simultaneous Award Adjustments                  2-A-2

  2           Processing Simultaneous Award Adjustments       2-A-4

  3           Handling a Claimant's Disagreement With an      2-A-7
              Overpayment                                     

  4           General Information on the Committee on Waivers 2-A-8
              and Compromises (COWC)                          
  ----------- ----------------------------------------------- -----------

#### 1. Simultaneous Award Adjustments

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on simultaneous award |
| troduction | > adjustments, including information on                 |
|            |                                                         |
|            | -   simultaneous award adjustments in compensation and  |
|            |     pension awards, and                                 |
|            |                                                         |
|            | -   examples of                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   a single legal transaction, and                     |
|            |                                                         |
|            | -   multiple legal transactions.                        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Simultaneous awards adjustments may occur from        |
| # a. Simul |                                                         |
| taneous Aw | -   related factual circumstances that result in a      |
| ard Adjust |     single legal transaction, or                        |
| ments in C |                                                         |
| ompensatio | -   unrelated factual circumstances that result in      |
| n and Pens |     multiple legal transactions.                        |
| ion Awards |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > ***Fact 1***: The veteran claims unreimbursed medical |
| # b. Examp | > expenses of \$4,000 on his/her Eligibility            |
| le 1: Sing | > Verification Report (EVR).                            |
| le Legal T | >                                                       |
| ransaction | > ***Fact 2***: The veteran reports that his/her spouse |
|            | > began working at the beginning of the EVR reporting   |
|            | > period and was paid \$4,500.                          |
|            | >                                                       |
|            | > ***Explanation***: In this example, both sets of      |
|            | > facts relate to income and result in a *single* legal |
|            | > transaction, which is adjustment of pension based on  |
|            | > a change in income for Department of Veterans Affairs |
|            | > (VA) purposes (IVAP).                                 |
+------------+---------------------------------------------------------+

Continued on next page

1\. Simultaneous Award Adjustments, Continued

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| ##### c    | > ***Fact 1***: The veteran continues to receive        |
| . Example  | > benefits for his/her spouse after the spouse's death, |
| 2: Multipl | > creating a \$219 overpayment.                         |
| e Legal Tr | >                                                       |
| ansactions | > ***Fact 2***: The veteran is entitled to a            |
|            | > retroactive increase of \$179 based on an increase in |
|            | > his/her service-connected evaluation from 30 percent  |
|            | > to 40 percent.                                        |
|            | >                                                       |
|            | > ***Explanation***: In this example, the facts relate  |
|            | > to separate and distinct issues that result in        |
|            | > multiple legal transactions, such as                  |
|            |                                                         |
|            | -   adjustment for loss of dependant, and               |
|            |                                                         |
|            | -   an increased disability evaluation.                 |
|            |                                                         |
|            | > ***Result***: In this case, take the following        |
|            | > actions:                                              |
|            |                                                         |
|            | -   reduce the award for loss of spouse, and            |
|            |                                                         |
|            | -   defer processing the award for the increased        |
|            |     evaluation until the next processing cycle.         |
+------------+---------------------------------------------------------+

#### 2. Processing Simultaneous Award Adjustments

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on processing         |
| troduction | > simultaneous award adjustments, including             |
|            |                                                         |
|            | -   when simultaneous award adjustments are permitted   |
|            |                                                         |
|            | -   when multiple award adjustments are not permitted,  |
|            |     and                                                 |
|            |                                                         |
|            | -   the procedure when simultaneous award adjustments   |
|            |     are not permitted.                                  |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Use the table below to determine when simultaneous    |
|  When Simu | > award adjustments are permitted.                      |
| ltaneous A |                                                         |
| ward Adjus |                                                         |
| tments Are |                                                         |
|  Permitted |                                                         |
+------------+---------------------------------------------------------+

+----------------------------------+-----------------------------------+
| If the multiple award            | Then ...                          |
| adjustments are based on ...     |                                   |
+----------------------------------+-----------------------------------+
| related factual circumstances    | they may be processed             |
| resulting in a single legal      | simultaneously.                   |
| transaction                      |                                   |
|                                  | ***Result***: In this situation   |
|                                  | the beneficiary is entitled only  |
|                                  | to dispute or request waiver of   |
|                                  | the net overpayment.              |
|                                  |                                   |
|                                  | ***Note***: Include and combine   |
|                                  | actions increasing and decreasing |
|                                  | benefits on the same award.       |
|                                  |                                   |
|                                  | ***Reference***: For an example   |
|                                  | of circumstances with a single    |
|                                  | issue, see M21-1MR, Part III,     |
|                                  | Subpart vi, 2.A.1.b.              |
+----------------------------------+-----------------------------------+
| unrelated factual circumstances  | if each adjustment, processed by  |
|                                  | itself, would create an           |
|                                  | overpayment, the adjustment may   |
|                                  | be processed simultaneously.      |
+----------------------------------+-----------------------------------+

Continued on next page

2\. Processing Simultaneous Award Adjustments, Continued

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| ##### b.   | > Multiple award adjustments based on unrelated factual |
|  When Mult | > circumstances resulting in distinct legal             |
| iple Award | > transactions must be processed separately if the      |
|  Adjustmen | > following is true:                                    |
| ts Are Not |                                                         |
|  Permitted | -   at least one adjustment would create an             |
|            |     overpayment, if processed by itself, and            |
|            |                                                         |
|            | -   another adjustment would increase benefits, if      |
|            |     processed by itself.                                |
|            |                                                         |
|            | > This gives the beneficiary the right to either        |
|            | > dispute or request waiver of the full amount of debt  |
|            | > before offset.                                        |
|            | >                                                       |
|            | > ***Note***: The term ***before offset*** means that   |
|            | > if the above awards are processed simultaneously      |
|            | > *before* the amount of debt is put into the payment   |
|            | > system for collection, VA recovers the overpayment    |
|            | > created for the one issue with the increase or retro  |
|            | > benefit created by the other. Therefore, it would     |
|            | > *offset* the debt.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > Follow the steps in the table below for situations    |
| ### c. Pro | > when simultaneous award adjustments are not           |
| cedure Whe | > permitted.                                            |
| n Simultan |                                                         |
| eous Award |                                                         |
|  Adjustmen |                                                         |
| ts Are Not |                                                         |
|  Permitted |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | -   Adjudicate the overpayment issues, and                   |
|       |                                                              |
|       | -   defer adjudicating the issues increasing the award until |
|       |     the next cycle shown on the Compensation and Pension     |
|       |     Schedule of Operation.                                   |
|       |                                                              |
|       | ***Reference***: For more information on unrelated factual   |
|       | circumstances, see M21-1MR, Part III, Subpart vi, 2.A.1.c.   |
+-------+--------------------------------------------------------------+
| 2     | Instead of taking fiscal authorization (FISA) action,        |
|       | annotate the award "*M21-1MR, Part III, Subpart vi,          |
|       | 2.A.2.c*."                                                   |
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Continued on next page

2\. Processing Simultaneous Award Adjustments, Continued

  -----------------------------------------------------------------------
  c\. Procedure When Simultaneous Award Adjustments Are Not Permitted
  (continued)

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

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 3     | Suppress the letter for the increased award before the       |
|       | generate and print (GAP) command.                            |
|       |                                                              |
|       | ***Note***: Before authorizing the award, the authorizer     |
|       | *must* verify that the letter has been suppressed.           |
+-------+--------------------------------------------------------------+
| 4     | Send the beneficiary a locally-generated letter explaining   |
|       | the following:                                               |
|       |                                                              |
|       | -   the increase is *not* being used to offset the debt      |
|       |     created in the overpayment issue since the two issues    |
|       |     are not related                                          |
|       |                                                              |
|       | -   he/she has the right to request waiver of the full       |
|       |     amount of debt created as a result of the first issue,   |
|       |     and                                                      |
|       |                                                              |
|       | -   if he/she wishes to request a waiver of the debt, he/she |
|       |     *must* follow the instructions provided in the           |
|       |     overpayment letter.                                      |
+-------+--------------------------------------------------------------+

#### 3. Handling a Claimant's Disagreement With an Overpayment

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ####       | > Follow the steps in the table below if a claimant     |
| # a. Proce | > disagrees with an overpayment.                        |
| dure for H |                                                         |
| andling Cl |                                                         |
| aimant Dis |                                                         |
| agreements |                                                         |
+------------+---------------------------------------------------------+

+-------+--------------------------------------------------------------+
| Step  | Action                                                       |
+-------+--------------------------------------------------------------+
| 1     | Is the claimant disagreeing with the validity of the debt?   |
|       |                                                              |
|       | -   If *yes*, go to Step 2.                                  |
|       |                                                              |
|       | -   If *no*, go to Step 3.                                   |
+-------+--------------------------------------------------------------+
| 2     | Send the claimant a Statement of the Case (SOC) on the issue |
|       | of validity of the debt.                                     |
|       |                                                              |
|       | ***Note***: Whether this step is done within or outside the  |
|       | Committee on Waivers and Compromises (COWC) is left to the   |
|       | discretion of local management.                              |
+-------+--------------------------------------------------------------+
| 3     | If the claimant is also seeking waiver of overpayment, refer |
|       | the waiver issue to the COWC.                                |
+-------+--------------------------------------------------------------+

#### 4. General Information on the Committee on Waivers and Compromises (COWC)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the COWC,          |
| troduction | > including information on                              |
|            |                                                         |
|            | -   the description of the COWC, and                    |
|            |                                                         |
|            | -   the purpose of the COWC.                            |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > August 14, 2006                                       |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##         | > The COWC consists of a chairperson and other          |
| ### a. Des | > designated employees who review and resolve requests  |
| cription o | > for waiver of debts and compromise repayment offers.  |
| f the COWC | >                                                       |
|            | > ***Reference***: For more information on COWC, see    |
|            | > [MP4, Chapter                                         |
|            | > 8]                                                    |
|            | (http://warms.vba.va.gov/admin24/mp_4/part01/ch08.doc). |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > The purpose of the COWC is to decide                  |
|  Purpose o |                                                         |
| f the COWC | -   the validity of debt, and                           |
|            |                                                         |
|            | -   whether to grant or deny a payee's request for      |
|            |     waiver or compromise.                               |
+------------+---------------------------------------------------------+