f. Notice of Incarceration Received After Incarceration Has Ended If VA does not receive notice of a Veteran’s incarceration until after incarceration has ended, and discontinuation of the Veteran’s benefits due to incarceration is otherwise in order, no pension is payable to the Veteran’s dependent(s). Important: VA may still award pension to the Veteran’s dependent(s) under these circumstances but only for the purpose of reducing the overpayment resulting from retroactive discontinuance of the Veteran’s benefits due to incarceration. The Veteran’s dependent(s) will not receive any actual payments. g. Procedure for an Overpayment Resulting From a Veteran’s Incarceration Follow the instructions in the table below to reduce or eliminate an existing overpayment in a Veteran’s account when the overpayment is the result of retroactive discontinuance of the Veteran’s pension because he/she was incarcerated, and the Veteran has a dependent or dependents that are entitled to the Veteran’s pension during his/her period of incarceration. Important: The instructions presented in the table below are for application when a decision has been made to award an incarcerated Veteran’s pension to his/her dependent(s), or apportion an incarcerated Veteran’s compensation to his/her dependent(s). Although the payment of pension to a Veteran’s dependent(s) under is not an apportionment, it is treated as such in the procedure described in the table below. Step Action 1 Follow the instructions in the or the (whichever applies) to reflect the decision to apportion benefits to the Veteran’s dependent(s). Important: To determine the effective date of payment of the apportionment, follow the instructions for pension in M21-1, Part III, Subpart v, 8.1.e, or compensation in M21-1, Part III, Subpart v, 8.2.c. 2 Generate the to the apportionee(s) by clicking on the GENERATE AWARD button on the RECORD DECISIONS screen. 3 When the ADDRESS DISPLAY screen appears, confirm or, if necessary, change the address of the apportionee(s), and click on the CONTINUE GENERATION button.
g. Determining the Amount of Compensation to Apportion to an Incarcerated Veteran’s Dependent Determine the amount of compensation, if any, to apportion to an incarcerated Veteran’s dependent based on the dependent’s individual need. Consider the following when evaluating individual need: dependent’s income and living expenses the amount of compensation available for apportionment needs and expenses of other dependents, and special needs of any dependent. Follow the instructions in M21-1, Part III, Subpart v, 3.A.3.d for proper documentation and approval of the apportionment decision. Notes: To determine the amount of compensation VA may apportion to the dependent(s) of an incarcerated Veteran, subtract the rate payable for a disability rating of 10 percent from the rate payable to the Veteran if he/she were not incarcerated. If the Veteran’s compensation is subject to withholding for the recoupment of separation benefits, see the notes in M21-1, Part III, Subpart v, 8.A.4.c to determine the amount of compensation VA may apportion to the dependent(s) of an incarcerated Veteran. h. Handling Apportioned Awards When the Veteran Is Reunited With His/Her Dependent(s) After Incarceration Ends When incarceration ends, presume a Veteran is reunited with the dependent(s) to whom VA apportioned his/her compensation during incarceration unless there is evidence to the contrary. As long as there is no evidence to the contrary, take the actions described in the table below. Step Action 1 Discontinue the apportionment effective the first of the month following the month for which VA last paid the apportionment. 2 For the period between the date incarceration and the first of the month following the month for which VA last paid the apportionment, pay the Veteran the difference between the full amount of compensation to which he/she is entitled, and the amount of the apportionment.