---
title: "Part VI, Subpart ii, Chapter 3, Section A Adjusting Department of Veterans Affairs (VA) Benefits Based on a Veteran's Receipt of Drill Pay"
document: "M-21-1"
section: "Part VI, Subpart ii, Chapter 3, Section A"
canonical: "https://veteranai.co/va-regulations/m21-1/vi.ii.3.a-adjusting-department-of-veterans-affairs-va-benefits-based"
source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179479/M21-1-Part-VI-Subpart-ii-Chapter-3-Section-A-Adjusting-Department-of-Veterans-Affairs-VA-Benefits-Based-on-a-Veterans-Receipt-of-Drill-Pay"
updated: "2026-09-07T14:37:21.852515Z"
---

April 22, 2026  

### VI.ii.3.A.1.a. Definition: Drill Pay

The term _**drill pay**_ refers to the monetary benefits a reservist or member of the National Guard receives for performing active or inactive duty training._ __VA Form 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances_ , which is discussed elsewhere in this topic, uses the terms **_military pay_** and **_training pay_** instead of **_drill pay_**.  

### VI.ii.3.A.1.b. Prohibition Against Concurrent Receipt of Drill Pay and VA Benefits

[10 U.S.C. 12316](<https://www.law.cornell.edu/uscode/text/10/12316>) and [38 U.S.C. 5304(c)](<https://www.law.cornell.edu/uscode/text/38/5304>) prohibit the concurrent receipt of drill pay and Department of Veterans Affairs (VA) disability compensation or pension. 

  * Veterans who perform active or inactive duty training must choose the benefit they prefer and waive the other.
  * Most Veterans choose to receive drill pay instead of disability compensation or pension because drill pay is typically the greater benefit.  These Veterans must waive their VA benefits for the same number of days they received drill pay.
  * Concurrent receipt of VA benefits and the subsistence allowance that a Veteran in the Senior Reserve Officers’ Training Corps (SROTC) might receive is **_not_** prohibited.  Only concurrent receipt of VA benefits and pay the Veteran receives for active or inactive duty training in the SROTC is prohibited.

**Exception:** According to [VAOPGCPREC 10-1990](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000051585/VAOPGCPREC-10-90-Apr-30-1990-Reserve-Disability-Pay-under-37-USC-204g-h-and-i>), a reservist or member of the National Guard **_may_** concurrently receive VA benefits and the “temporary disability compensation” described in [37 U.S.C. 204(g), (h) and (i)](<https://www.law.cornell.edu/uscode/text/37/204>).**_ _**Reference:** For more information on the prohibition against concurrent receipt of active service pay and VA compensation or pension, see

  * [38 CFR 3.654](<http://www.ecfr.gov/cgi-bin/text-idx?SID=cb15b76518f51383b05d8b560400a6d3&node=se38.1.3_1654&rgn=div8>), and
  * [38 CFR 3.700(a)(1)](<http://www.ecfr.gov/cgi-bin/text-idx?SID=cb15b76518f51383b05d8b560400a6d3&node=se38.1.3_1700&rgn=div8>).

### VI.ii.3.A.1.c. Process for Identifying and Notifying Veterans Who Concurrently Received Drill Pay and VA Benefits

The table below describes how VA identifies and notifies Veterans who concurrently received drill pay and VA benefits. | **Stage**| **Description**  
1| At the end of each fiscal year, the Defense Manpower Data Center (DMDC) sends an electronic file to the Hines Information Technology Center (ITC) that identifies Veterans who received both drill pay and VA disability compensation or pension during that fiscal year.**_ _**Note:** If an interruption occurs in obtaining this data from DMDC, the file may include drill pay data for one or more prior years.  
2| Before processing the file, the Hines ITC updates the corporate record of each Veteran to reflect the number of days for which drill pay was received during the prior fiscal year. **Notes:** 

  * The update is visible in the DRILL PAY PROFILE field, which is located on the DRILL PAY tab on the AWARD ADJUSTMENTS screen.
  * The number in the DRILL PAY PROFILE field does **_not_** account for non-award days, as defined in M21-1, Part VI, Subpart ii, 3.A.1.e.
  * If DMDC sends drill pay data for multiple fiscal years, only the data pertaining to the most recent fiscal year appears in the DRILL PAY PROFILE field. 

**Reference:** For more information on viewing drill pay data in the Veterans Benefits Management System (VBMS), see the _VBMS Awards User Guide_.  
3| The Hines ITC

  * generates a _VA Form 21-8951_ for each Veteran identified in the electronic file
  * sends the form for completion to _most_ of the Veterans identified in the electronic file, and
  * uploads a copy of the form into each Veteran’s electronic claims folder (eFolder).

**Note:** There are some circumstances under which the Hines ITC is _unable_ to send _VA Form 21-8951_ to a Veteran who received drill pay.  M21-1, Part VI, Subpart ii, 3.A.1.i contains instructions for handling such cases.  
**_ _**

**Note:** VA considered the completion of _VA Form 21-8951_ a one-time waiver of drill pay from 1989 until 1995, when it began requiring Veterans to complete the form annually.  

### VI.ii.3.A.1.d. Information Contained on the VA Form 21-8951 the Hines ITC Generates

The _VA Form 21-8951_ that the Hines ITC generates

  * informs each Veteran
    * DMDC has identified the receipt of drill pay, and
    * the law prohibits the concurrent payment of drill pay and VA disability compensation or pension, and
  * displays the
    * Veteran’s name, address, contact information, and file number and/or Social Security number (SSN), and
    * number of days for which the Veteran received drill pay during the specified fiscal year.

**Note:** The HINES ITC may, in some instances, generate [_VA Form 21-8951-2, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>), in lieu of _VA Form 21-8951_.  In such cases, consider the two forms as equivalents for the purposes of applying relevant procedures in this section.  

### VI.ii.3.A.1.e. Definition: Non-Award Days

The term **_non-award days_** , for the purpose of this section, refers to days for which a Veteran received no compensation or pension because, for example, VA

  * stopped the Veteran’s award
    * due to a return to active duty, or
    * because the Veteran expressly requested that benefits be discontinued during a training period, or 
  * wasn’t paying the Veteran disability compensation because no compensable service-connected (SC) disabilities existed.

The term does **_not_** refer to periods of time during which VA withheld a Veteran’s entire award to

  * offset receipt of military retired pay, or
  * recoup separation benefits.

### VI.ii.3.A.1.f. How Non-Award Days Affect the Number of Days Printed on VA Form 21-8951

The table below describes how non-award days are accounted for on _VA Forms 21-8951_ the Hines ITC generates **_starting with_** the forms for fiscal year 2020.  The rules described in M21-1, Part VI, Subpart ii, 3.A.1.g, were programmed into the computer system that makes the calculations described in the table.| **Stage**| **Description**  
1| For each month the Veteran had **_no_** non-award days, a computer system totals the number of days shown in the columns titled _Drill Days_ and _Active Duty Training Days_ of the table titled _Fiscal Year Monthly Drill Pay_ in the Veterans Information Solution (VIS).**Notes:** 

  * The total number of days may exceed 30.
  * The table titled _Fiscal Year Monthly Drill Pay_ is viewable by selecting a fiscal year in the section titled _Drill Pay Days_ on the MILITARY HISTORY screen in VIS.

2| For each month during which the Veteran had at least one non-award day, the system

  * totals the number of days shown in the columns titled _Drill Days_ and _Active Duty Training Days_ for that month, and
  * subtracts from the total the number of non-award days the Veteran had during the same month.

**Note:** The lowest number the system recognizes in the calculation described in this stage is zero.  
3| The system takes the results of the calculation described in Stage 2 for each month during which the Veteran had at least one non-award day and adds them together.  
4| The system totals the results of the calculations described in Stages 1 and 3. **Note:** This total becomes the number of training days the Hines ITC prints on _VA Form 21-8951_.  
**Example:** 

**Scenario:** 

  * VA stopped a Veteran’s award effective May 25, 2020, because the Veteran returned to active duty (making six the number of non-award days for the month of May).

  * A total of eight days is shown in the columns titled _Drill Days_ and _Active Duty Training Days_ for May 2020.

**Result:** The number of days of pay for drill(s)/training that the system will count for the month of May is two (8 – 6 = 2).

**Important:** 

  * Claims processors must 

    * use the _[Drill Pay Calculator](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ to make the calculations described in the table above – _applying the rules described inM21-1, Part VI, Subpart ii, 3.A.1.g_ –

      * to determine the number of days of VA benefits to be withheld when processing _VA Forms 21-8951_ for fiscal years 2017 through 2019 that VA receives from a Veteran with non-award days, or

      * under the circumstances described in M21-1, Part VI, Subpart ii, 3.A.5.f, and

    * upload a copy of the calculator results to the eFolder.

  * The number of training days printed on _VA Forms 21-8951_ that the Hines ITC generated for fiscal years _prior_ to 2020 consisted of a total of the number of days for which the Veteran received drill pay for the entire fiscal year.

### VI.ii.3.A.1.g. Rules Specific to Calculations Involving Non-Award Days

Starting with _VA Forms 21-8951_ the Hines ITC generated for fiscal year 2020, several rules were programmed into the computer system that makes the calculations described in M21-1, Part VI, Subpart ii, 3.A.1.f. The first rule is that the number of non-award days in a month may not exceed 30.  The remaining rules are stated in the table below. | **If ...**| **Then, when calculating the number of days of drill(s)/training for that month ...**  
the 31st day of a month was a non-award day| do not count that day as a non-award day.  
the 28th of February – _in a year**other than** a leap year_ – is a non-award day| count that day as three non-award days.  
the 29th of February is a non-award day| count that day as two non-award days.  
the total number of days shown in the columns titled _Drill Days_ and _Active Duty Training Days_ for a month in which the Veteran had non-award days is greater than 30| the result may be no more than 30 minus the number of non-award days.  

**Example:** 

**Scenario:** 

  * VA stopped a Veteran’s award of disability compensation effective October 1, 2018, because she returned to active duty on that date.

  * The Veteran was subsequently discharged on May 23, 2020.

  * VA resumed the Veteran’s award effective May 24, 2020 (making 23 the number of non-award days for the month of May).

  * A total of 43 days is shown in the columns titled _Drill Days_ and _Active Duty Training Days_ in VIS for May 2020.

**Result:** The number of countable days of drill(s)/training for the month of May is seven.

**Rationale:** Although 43 minus 23 equals 20, the rule expressed in the last row of the table above limits the result to 7 (30-23=7).  

### VI.ii.3.A.1.h. Important Information About the Data VIS Displays

The numbers VIS displays in the columns titled _Drill Days_ and _Active Duty Training Days_ of the table titled _Fiscal Year Monthly Drill Pay_ do **_not_** represent the number of days a Veteran **_attended_** drills and/or active duty training during a given month.  Rather, they represent the number of days of drills and/or active duty training for which a Veteran **_received_** drill pay during a given month. **Example:** **Scenario:** 

  * A Veteran had 15 days of active duty training in May.
  * The Veteran received payment for those 15 days of active duty training in June.

**Result:** The 15 days of drill pay will appear in the column titled _Active Duty Training Days_ for the month of June, rather than the month of May.  

### VI.ii.3.A.1.i. Actions to Take When the Hines ITC Is Unable to Send VA Form 21-8951

When the Hines ITC is unable to send _VA Form 21-8951_ to a Veteran for completion, end product (EP) 290 is automatically established.  Follow the instructions in the table below when processing the EP.| **Step**| **Action**  
1| Open the Veteran’s eFolder and locate a copy of the _VA Form 21-8951_ that the Hines ITC uploaded into it.  
2| Does the file number and/or SSN printed on _VA Form 21-8951_ belong to the Veteran whose name, address, and contact information are also printed on the form? 

  * If _yes_ , go to the next step.
  * If _no_ ,
    * determine whether the Veteran’s SSN is correct in the corporate record
    * update the corporate record with the correct SSN, if necessary, and
    * go to the next step.

3| Clear the pending EP 290.  
4| Follow the instructions in the table below.| **If the evidence of record indicates the Veteran ...**| **Then ...**  
  * received **_no_** drill pay, and
  * did **_not_** have a period of active duty

  * annotate the form to reflect the Veteran received no drill pay, and
  * disregard the remaining steps in this table.

  * received **_no_** drill pay, but
  * had a period of active duty for which VA has **_not_** adjusted the Veteran’s award

  * annotate the form to reflect the Veteran received no drill pay
  * disregard the remaining steps in this table, and
  * follow the instructions in [M21-1, Part X, Subpart v, 2.B](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000178003/M21-1-Part-X-Subpart-v-Chapter-2-Section-B-Award-Adjustments-Necessitated-by-a-Veterans-Return-to-and-Discharge-From-Active-Duty>).

  * received drill pay, and
  * had a period of active duty for which VA has **_not_** adjusted the Veteran’s award

  * disregard the remaining steps in this table, and
  * follow the instructions in M21-1, Part VI, Subpart ii, 3.A.4.

  * received drill pay, and
  * had a period of active duty for which VA **_has_** adjusted the Veteran’s award

  * use the _[Drill Pay Calculator](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ to make the calculations described in the table in M21-1, Part VI, Subpart ii, 3.A.1.f, applying the rules described in M21-1, Part VI, Subpart ii, 3.A.1.g
  * upload a copy of the calculator results to the eFolder, and
  * go to Step 5.

**Important:** If the calculation described above requires VA to withhold benefits based on the Veteran’s receipt of drill pay for a number of days that differs from the number printed on the _VA Form 21-8951_ referenced in Step 1,

  * prepare a new _VA Form 21-8951_ , (using [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>)) that reflects the correct number of days, and
  * attach the [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>) to the notice of proposed adverse action referenced in Step 7 (instead of the _VA Form 21-8951_ referenced in Step 1).

  * received drill pay, and
  * did **_not_** have a period of active duty

| go to the next step.  

**Reference:** For more information on electronically annotating documents in an eFolder, see the _VBMS Core User Guide_.  
5| Establish EP 600 and add 

  * _Drill Pay Proposal_ as a contention with
    *  _Administrative Issue_ as the contention classification, and
    * a value of _No_ in the MEDICAL field
  *  _Due Process_ , with a free-text entry of _Drill Pay Proposal_ ,__ as a tracked item, and
  *  _Potential Under/Overpayment_ as a special issue.

6| Generate a notice of proposed adverse action that proposes to adjust the Veteran’s award based on receipt of drill pay. **Important:** Telephone contact is **_not_** acceptable as a substitute for a written notice of proposed adverse action. **References:** For more information on

  * procedural due process and review rights, see [38 CFR 3.103](<http://www.ecfr.gov/cgi-bin/text-idx?SID=3bcb31f642700508f666b131285fd2cb&mc=true&node=se38.1.3_1103&rgn=div8>), and
  * required elements for a notice of proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A.2](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177965/M21-1-Part-X-Subpart-ii-Chapter-3-Section-A-Notice-of-Proposed-Adverse-Action>).

7| Attach to the notice of proposed adverse action referenced in Step 6

  * the _VA Form 21-8951_ referenced in Step 1, and
  * [ _VA Form 21-0789, Your Rights to Representation and a Hearing_](<http://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-0789-ARE.pdf>).

8| Mail the documents referenced in Step 7 to the Veteran.  
9| Did the Veteran respond to the notice of proposed adverse action within 65 days?

  * If _yes_ , go to the next step.
  * If _no_ , go to Step 15.

10| Did the Veteran request a hearing?

  * If _yes_ , go to the next step.
  * If _no_ , 
    * disregard the remaining steps in this table, and
    * complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.a and c.

11| Did VA receive the request for a hearing within 30 days of the date of the notice of proposed adverse action referenced in Step 7?

  * If _yes_ , go to the next step.
  * If _no_ , go to Step 14. 

**Reference:** For more information on handling requests for a hearing, see [M21-1, Part X, Subpart ii, 3.B.3](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177966/M21-1-Part-X-Subpart-ii-Chapter-3-Section-B-Adverse-Action-Proposal-Period>).  
12| Hold the hearing and obtain all relevant evidence the Veteran identifies during the hearing.  
13| 

  * Complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.a and c.
  * Disregard the remaining steps in this table.

14| Did the Veteran submit a completed and signed _VA Form 21-8951_ or [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>) with the hearing request?

  * If _yes_ , 
    * complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.c, and
    * disregard the remaining step in this table.
  * If _no_ , go to the next step.

**Note:** Because the Veteran did _not_ request a hearing within 30 days of the notice of proposed adverse action, VA may take the actions described in the next step or in M21-1, Part VI, Subpart ii, 3.A.5.c **_before_** it holds the hearing.**Reference:** For more information on what constitutes a “completed and signed _VA Form 21-8951_ ,” see M21-1, Part VI, Subpart ii, 3.A.5.a.  
15| Follow the instructions in [M21-1, Part VI, Subpart ii, 3.B.1](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179813/M21-1-Part-VI-Subpart-ii-Chapter-3-Section-B-Withholding-and-Restoration-of-Benefits-Associated-With-Receipt-of-Drill-Pay>) for adjusting the Veteran’s award.  
**_ _**

**Note:** The system does not automatically upload into a Veteran’s eFolder _VA Forms 21-8951_ that the Veteran mails to VA.  Accordingly, regional offices (ROs) are responsible for moving the forms from the mail repository into the appropriate eFolder upon their receipt.  

### VI.ii.3.A.1.j. Options a Veteran Has When Completing VA Form 21-8951

The table below describes the various options a Veteran has when completing _VA Form 21-8951_. | **Option**| **Description**  
1| Check the box next to the sentence in Block 9 that reads: _I elect to waive VA benefits for the days indicated in order to retain my training_ _pay_.  
2| Take all three of the following actions:

  * declare (in Block 8) that the number of training days the Hines ITC printed on the form is incorrect
  * enter the correct number of training days in the _Training Days_ field in Section III of the form, and
  * check the box next to the sentence in Block 9 that reads: _I elect to waive VA benefits for the days indicated in order to retain my training pay_. 

**Important:** If the Veteran declares the actual number of training days is _less_ than the number the Hines ITC printed on _VA Form 21-8951_ ,  the signature of the Veteran's unit commander is required on the form in most circumstances. **Note:** See M21-1, Part VI, Subpart ii, 3.A.5.a for exceptions to the general requirement for a commanding officer’s signature on _VA Form 21-8951_.    
3| Check the box next to the sentence in Block 9 that reads:  _I received no military pay and allowances during the fiscal year(s) indicated on the front of this form._  
4| Check the box next to the sentence in Block 9 that reads:  _I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension_.  

### VI.ii.3.A.1.k. Use of VA Form 21-8951-2

VA typically learns a Veteran has received drill pay through the data match described in M21-1, Part VI, Subpart ii, 3.A.1.c.  However, a Veteran may voluntarily notify VA of receipt (or _anticipated_ receipt) of drill pay, and elect to waive VA benefits or drill pay, by completing and submitting _[VA Form 21-8951-2](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>)._ **Notes:** 

  * [_VA Form 21-8951-2_](<http://www.vba.va.gov/pubs/forms/VBA-21-8951-2-ARE.pdf>) is essentially a blank version of the Hines ITC-generated _VA Form 21-8951_.
  * Although VA does not require a Veteran’s unit commander to sign _VA Form 21-8951_ unless the Veteran asserts the actual number of training days is _less_ than the number the Hines ITC printed on the form, VA **_almost always_** requires a Veteran’s unit commander to sign _[VA Form 21-8951-2](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>)_.
  * Exceptions to the requirement for a unit commander’s signature on _VA Form 21-8951_ , as listed in M21-1, Part VI, Subpart ii, 3.A.5.a, also apply to the [_VA Form 21-8951-2_](<http://www.vba.va.gov/pubs/forms/VBA-21-8951-2-ARE.pdf>). 

## 2. Determining the Number of Days of VA Benefits a Veteran Must Waive

This topic contains information on determining the number of days of VA benefits a Veteran must waive in order to remain entitled to drill pay, including

  * number of days reservists and members of the National Guard commonly receive drill pay
  * how Reserve and National Guard units calculate the number of days of drill pay to which a Veteran is entitled
  * travel time during drills/training
  * example of how to determine the number of days of VA benefits a Veteran must waive, and
  * Veterans who receive pay for active duty training only.

March 26, 2021  

### VI.ii.3.A.2.a. Number of Days Reservists and Members of the National Guard Commonly Receive Drill Pay

During a single fiscal year, reservists and members of the National Guard commonly receive drill pay for a total of 63 days, which consists of

  * 48 armory drills or training sessions, and
  * 15 days of active duty training.

**Note:** Variances in the 63-day total are typically due to

  * excused absences from drills, or
  * the performance of additional drills or training for various assignments, such as
    * schooling
    * planning meetings
    * conferences
    * preparation for inspections
    * additional flying training
    * muster duty, or
    * funeral honors duty.

### VI.ii.3.A.2.b. How Reserve and National Guard Units Calculate the Number of Days of Drill Pay to Which a Veteran Is Entitled

The table below shows

  * the two types of training Veterans in the Reserve or National Guard attend, and
  * how Reserve and National Guard units calculate the number of days of drill pay to which a Veteran is entitled for each type of training. 

| **Type of Training**| **Method of Calculation**  
armory drill and training sessions| Veterans receive one day of drill pay for each four-hour drill/training session they attend. Units may hold one or two of these sessions per day over a weekend or during a weekday. **Example:** For one “drill weekend,” a Veteran may receive four days of drill pay for attending two drill/training sessions each day. **Notes:** 

  * Units report the number of days for which a Veteran received drill pay, _not_ the number of calendar days the Veteran attended drills/training.
  * Request clarification from the Veteran’s unit if questions arise as to how it calculated the number of days of drill pay to which the Veteran was entitled.

active duty training| Veterans receive one day of drill pay for each day of the annual, two-week, active duty training or “summer camp” they attend. **Important:** Do _not_ confuse this period with drill weekends.  

### VI.ii.3.A.2.c. Travel Time During Drills/Training

Include any authorized travel time for which a Veteran received drill pay when computing the number of days of VA benefits requiring waiver.  

### VI.ii.3.A.2.d. Example: Determining the Number of Days of VA Benefits a Veteran Must Waive

**Scenario:** Sergeant Cummins, a reservist, is currently receiving VA compensation for diabetes.  His Reserve unit certifies he was present for

  * 25 days of armory drills/training, with two drill/training sessions each day, and
  * 15 days of active duty training. 

**Result:** Sergeant Cummins must waive a total of 65 days of VA benefits based on his receipt of drill pay for

  * 50 days of armory drills/training, and
  * 15 days of active duty training.

### VI.ii.3.A.2.e. Veterans Who Receive Pay for Active Duty Training Only

Occasionally, a Veteran may

  * attend armory drill/training in a no-pay status, and
  * receive pay only for the annual, active duty training attended. 

Under these circumstances, the Veteran must waive VA benefits or military pay and allowances only for the number of days of active duty training attended.  

## 3. _VA Forms 21-8951_ That Are Subject to Automated Processing

This topic contains information about _VA Forms 21-8951_ that are subject to automated processing, including

  * automated processing of certain drill pay cases
  * preventing the automatic adjustment of a Veteran’s award, and 
  * hearing requests from Veterans whose drill pay case is subject to automated processing. 

March 17, 2022  

### VI.ii.3.A.3.a. Automated Processing of Certain Drill Pay Cases

The table below describes the actions that occur each time the Hines ITC sends a Veteran the _VA Form 21-8951_ and cover letter referenced in Stage 3 of the process described in M21-1, Part VI, Subpart ii, 3.A.1.c.  | **Stage**| **Description**  
1| The system automatically establishes

  * EP 600 under the claim label _Drill Pay Adjustment_ , and
  * a suspense date that is at least 65 days from the current date.

2| The system selects _Awaiting Response for VA Form 21-8951_ as the suspense reason for the EP 600.  
3| The system adds the following under the pending EP 600:

  * a tracked item titled _Drill Pay Proposal_ , and
  * a contention titled _Drill Pay Adjustment for FY_ **[fiscal year under review]** , showing the number of drill and active service pay days identified in each month.

4| The table below describes the next stages in the process. | **If the Veteran …**| **Then the …**  
responds within 65 days and

  * agrees with the number of days printed on _VA Form 21-8951_ , or
  * makes no entry in Block 8 of the form

| RO responsible for processing the form 

  * closes the tracked item referenced in Stage 3 by entering the date VA received the form in the RECEIVED column, and
  * follows the instructions in M21-1, Part VI, Subpart ii, 3.A.5.

**Note:** Pension awards require manual processing at this stage.  The system does not automatically perform the actions described in the preceding sub-bullets if the Veteran is receiving pension.  
responds within 65 days but

  * disagrees with the number of days printed on _VA Form 21-8951, or_
  * requests a waiver of military pay

| RO responsible for processing the form first takes the actions described in M21-1, Part VI, Subpart ii, 3.A.3.b.  Then the RO follows the instructions in M21-1, Part VI, Subpart ii, 3.A.5.  
requests a hearing within 65 days of the date the Hines ITC mailed _VA Form 21-8951_ to the Veteran| RO responsible for processing the form follows the instructions in M21-1, Part VI, Subpart ii, 3.A.3.c.  
does **_not_** return _VA Form 21-8951_ within 65 days|  _system_ takes the following actions as long as the tracked item referenced in Stage 3 (titled _Drill Pay Proposal_) is still open:

  * closes the tracked item by entering the current date in the CLOSED column
  * adjusts the Veteran’s award under the pending EP 600
  * generates and sends a decision notice to the Veteran, and
  * uploads the decision notice and corresponding award print into the Veteran’s eFolder.

**Note:** Pension awards require manual processing at this stage.  The system does not automatically perform the actions described in the preceding bullets if the Veteran is receiving pension.  

**Note:** The system does not automatically upload into a Veteran’s eFolder _VA Forms 21-8951_ that the Veteran mails to VA.  Accordingly, ROs are responsible for moving the forms from the mail repository into the appropriate eFolder upon their receipt.  

**Note:** If a Veteran received drill pay during a period of entitlement to pension, review the Veteran’s unemployability status for pension purposes.

**Reference:** For more information on reviewing a Veteran’s unemployability status for pension purposes, see [M21-1, Part IX, Subpart ii, 2.B.1](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000178521/M21-1-Part-IX-Subpart-ii-Chapter-2-Section-B-Determining-Disability-Unemployability-and-Marginal-Employment-for-Pension>).  

### VI.ii.3.A.3.b. Preventing the Automatic Adjustment of a Veteran’s Award

Taking the actions described in the table below prevents the system from automatically adjusting a Veteran’s award based on the number of days printed on _VA Form 21-8951_. **Important:** Follow the steps in the table below **_only_** upon referral to this specific block from

  * M21-1, Part VI, Subpart ii, 3.A.3.a (Stage 4), or
  * M21-1, Part VI, Subpart ii, 3.A.3.c.

| **Step**| **Action**  
1| Add a _new_ tracked item titled _Other Request_ and enter _Drill Pay – Manual Process_ as free text.  
2| Close the tracked item referenced in Stage 3 of the process described in M21-1, Part VI, Subpart ii, 3.A.3.a, by entering the date VA received the form in the RECEIVED column.  

### VI.ii.3.A.3.c. Hearing Requests From Veterans Whose Drill Pay Case Is Subject to Automated Processing

Follow the instructions in the table below when a Veteran, whose drill pay case is subject to automated processing (as described in M21-1, Part VI, Subpart ii, 3.A.3.a), requests a hearing within 65 days of the date the Hines ITC mailed _VA Form 21-8951_ to the Veteran.  | **Step**| **Action**  
1| Did VA receive the request for a hearing within 30 days of the date the Hines ITC mailed _VA Form 21-8951_ to the Veteran?

  * If _yes_ , go to the next step.
  * If _no_ , go to Step 5.

**Reference:** For more information on handling requests for a hearing, see [M21-1, Part X, Subpart ii, 3.B.3](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177966/M21-1-Part-X-Subpart-ii-Chapter-3-Section-B-Adverse-Action-Proposal-Period>).  
2| Take the actions described in M21-1, Part VI, Subpart ii, 3.A.3.b, and go to the next step.  
3| Hold the hearing and obtain all relevant evidence the Veteran identifies during the hearing.  
4| 

  * Complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.a and c.
  * Disregard the remaining steps in this table.

5| Did the Veteran submit a completed and signed _VA Form 21-8951_ with the hearing request?

  * If _yes_ ,
    * take the actions described in M21-1, Part VI, Subpart ii, 3.A.3.b, and
    * go to the next step.
  * If _no_ ,
    * disregard the remaining steps in this table, and
    * follow the instructions in M21-1, Part VI, Subpart ii, 3.A.5.a and c **_after_** VA
      * holds the hearing, and
      * obtains all relevant evidence the Veteran identifies during the hearing.

**Notes:** 

  * Because the Veteran did _not_ request a hearing within 30 days of the date the Hines ITC mailed _VA Form 21-8951_ to the Veteran, VA may adjust the Veteran’s award **_before_** it holds the hearing.  VA may make the adjustment
    * manually (if the Veteran submitted a completed and signed _VA Form 21-8951_ with the hearing request), or
    * through the automated process (if the Veteran did **_not_** submit a completed and signed _VA Form 21-8951_ with the hearing request).
  * If the Veteran did _not_ submit a completed and signed _VA Form 21-8951_ with the hearing request, the system will automatically adjust the Veteran’s award to reflect the number of training days printed on the form as soon as the suspense date referenced in Stage 1 of the procedure described in M21-1, Part VI, Subpart ii, 3.A.3.a, passes.

**Reference:** For more information on what constitutes a “completed and signed _VA Form 21-8951_ ,” see M21-1, Part VI, Subpart ii, 3.A.5.a.  
6| Did the Veteran agree with the number of days printed on _VA Form 21-8951_?

  * If _yes_ , take no further action except to hold the hearing.
  * If _no_ , follow the instructions in M21-1, Part VI, Subpart ii, 3.A.5.c.

## 4. Veterans That Had Active Duty and Received Drill Pay During the Same Fiscal Year

This topic contains instructions for handling cases in which a Veteran had active duty and received drill pay during the same fiscal year, including

  * handling evidence that suggests a Veteran had active duty and received drill pay during the same fiscal year
  * adjusting benefits for drill pay after stopping benefits because of a period(s) of active duty, and
  * contemplating periods of service under the Active Duty for Special Work (ADSW) program. 

April 22, 2026  

### VI.ii.3.A.4.a. Handling Evidence That Suggests a Veteran Had Active Duty and Received Drill Pay During the Same Fiscal Year

If a Veteran received active service pay for both active duty _and_ drill(s)/training during the same fiscal year, _VA Forms 21-8951_ the Hines ITC generated for fiscal years _prior_ to 2020 showed the _combined_ number of days for which the Veteran received active service pay. Follow the instructions in the table below if

  * a _VA Form 21-8951_ shows training in excess of 179 days, or
  * the evidence of record suggests the Veteran had active duty (for which VA has never adjusted the Veteran’s award) during the fiscal year the _VA Form 21-8951_ covers.

**Note:** Consider a report of training in excess of 179 days on _VA Form 21-8951_ an indication the Veteran might have returned to active duty for a period of time. | **Step**| **Action**  
1| Use VIS and/or the Defense Personnel Records Information Retrieval System (DPRIS) to determine whether the Veteran had a period of active duty during the fiscal year in question. **Important:** 

  * If a Veteran’s period of active duty started on or after October 1, 2020, claims processors may use the information shown in the rows below the heading _Guard/Reserve Active Service (GRAS)_ in VIS that reflect non-training periods (identifiable by the presence of _No_ in the column titled _Training_) when discontinuing a Veteran’s benefits based on return to active duty.  If a discrepancy exists between the data VIS displays and any of the following, assume the data in VIS is **incorrect:** 
    * unvoided and uncorrected _DD Form 214, Certificate of Uniformed Service_
    *  _DD Form 214_ that is corrected by a _DD Form 215, Correction to DD Form 214, Certificate of Uniformed Service_ , and/or
    * orders that were not rescinded or revoked.
  * Prior to October 1, 2020 (the start of fiscal year 2021) the non-training periods shown in VIS were included in the number of training days printed on _VA Forms 21-8951_ when the Veteran was paid out of National Guard/Reserve component funds.
  * Data displayed under the heading _Active Duty Service Periods_ in VIS **_is_** generally accurate but may be superseded by certain documentary evidence, as explained in [M21-1, Part III, Subpart i, 1.B.3.c](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000181425/M21-1-Part-III-Subpart-i-Chapter-1-Section-B-Service-Requirements-and-Verification-of-Eligibility>).

**References:** For more information on

  * VIS, see the _[VIS User Guide](<http://vbaw.vba.va.gov/bl/21/publicat/docs/visug.pdf>)_ , and
  * DPRIS, see the _DPRIS User Guide_.

2| Does VIS and/or DPRIS confirm the Veteran had an unreported period of active duty?

  * If _yes_ , go to the next step.
  * If _no_ , go to Step 7.

3| Clear an EP 290 _unless_ this EP was previously cleared in Step 3 of the procedure described in M21-1, Part VI, Subpart ii, 3.A.1.i.  
4| Establish EP 600 with the claim label _Drill Pay Adjustment (600)_ and add 

  * _Drill Pay Proposal_ and _Return to Active Duty_ as contentions using the
    *  _Administrative Issue_ as the contention classification, and
    * value of _No_ in the MEDICAL field
  *  _Due  Process_, with a free-text entry of _Return to Active Duty_ , as a tracked item, and
  *  _Potential Under/Overpayment_ as a special issue.

5| Notify the Veteran VA proposes to discontinue benefits effective the date of return to active duty.  In the notice, ask the Veteran to submit the following with regard to the time period in question:

  * a copy of the associated orders or separation document, or
  * other evidence of the duty performed.

**Note:** Attach [_VA Form 21-0789_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-0789-ARE.pdf>) to the notice before sending it to the Veteran. **Reference:** For more information on preparing a notice of proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177965/M21-1-Part-X-Subpart-ii-Chapter-3-Section-A-Notice-of-Proposed-Adverse-Action>).  
6| After the Veteran responds or has had 65 days to respond to the notice,

  * take the proposed action unless the Veteran
    * requested a hearing within 30 days of the notice, or 
    * submits evidence showing VA should not take the proposed action
  * disregard the remaining steps in this table, and
  * follow the instructions in M21-1, Part VI, Subpart ii, 3.A.4.b.

**Note:** Follow the instructions in [M21-1, Part X, Subpart ii, 3.B.3](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177966/M21-1-Part-X-Subpart-ii-Chapter-3-Section-B-Adverse-Action-Proposal-Period>), if a Veteran requests a hearing in response to a notice of proposed adverse action.  
7| Send a letter to the Veteran asking for the dates of active duty, if any, during the fiscal year in question and

  * a copy of the associated orders or separation document, or
  * other evidence of the duty performed during the fiscal year.

8| Follow the instructions in the table below after giving the Veteran 30 days to respond. | **If ...**| **Then ...**  
the Veteran responds by confirming the return to active duty| 

  * discontinue benefits during the period of time the Veteran was on active duty, and
  * follow the instructions in M21-1, Part VI, Subpart ii, 3.A.4.b.

the Veteran fails to respond| 

  * assume the days reported on _VA Form 21-8951_ do **_not_** include a period of active duty, and
  * take the actions described in M21-1, Part VI, Subpart ii, 3.A.5.c.

evidence of a return to duty is obtained from a source other than the Veteran| follow the instructions in Steps 5 and 6 of this table.  

### VI.ii.3.A.4.b. Adjusting Benefits for Drill Pay After Stopping Benefits Because of a Period(s) of Active Duty

If a Veteran had active duty and received drill pay during the same fiscal year, follow the instructions in the table below **_after_** stopping the Veteran’s award during the period(s) of active duty. | **Step**| **Action**  
1| 

  * Use the _[Drill Pay Calculator](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ to recompute the number of drill/training days based on the calculations described in the table in M21-1, Part VI, Subpart ii, 3.A.1.f, applying the rules described in M21-1, Part VI, Subpart ii, 3.A.1.g, and
  * upload a copy of the calculator results to the eFolder.

2| Does the recomputed number of drill/training days, plus the number of non-award days attributed to a period(s) of active duty during the same fiscal year, exceed 360?

  * If _yes_ ,
    * prepare a new _VA Form 21-8951_ , (using [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>)) 
    * enter in the _Training Days_ field on the form the difference between 360 and the number of non-award days attributed to a period(s) of active duty, and 
    * go to the next step. 
  * If _no_ ,
    * prepare a new _VA Form 21-8951_ , (using [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>)) that reflects (in the _Training Days_ field) the result of the calculation described in Step 1, and
    * go to the next step.

3| Establish EP 600 and add

  *  _Drill Pay Proposal_ as a contention with
    *  _Administrative Issue_ as the contention classification, and
    * a value of _No_ in the MEDICAL field
  *  _Due Process_ , with a free-text entry of _Drill Pay Proposal_ , as a tracked item, and
  *  _Potential Under/Overpayment_ as a special issue.

4| Generate a notice of proposed adverse action that proposes to adjust the Veteran’s award based on receipt of drill pay. **Important:** Telephone contact is **_not_** acceptable as a substitute for a written notice of proposed adverse action. **References:** For more information on

  * procedural due process and review rights, see [38 CFR 3.103](<http://www.ecfr.gov/cgi-bin/text-idx?SID=3bcb31f642700508f666b131285fd2cb&mc=true&node=se38.1.3_1103&rgn=div8>), and
  * required elements for a notice of proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A.2](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177965/M21-1-Part-X-Subpart-ii-Chapter-3-Section-A-Notice-of-Proposed-Adverse-Action>).

5| Attach to the notice of proposed adverse action referenced in Step 4 

  * the [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>) referenced in Step 2, and
  * [ _VA Form 21-0789_](<http://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-0789-ARE.pdf>).

6| Mail the documents referenced in Step 5 to the Veteran.  
7| Did the Veteran respond to the notice of proposed adverse action within 65 days?

  * If _yes_ , go to the next step.
  * If _no_ , go to Step 13.

8| Did the Veteran request a hearing?

  * If _yes_ , go to the next step.
  * If _no_ ,
    * disregard the remaining steps in this table, and
    * complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.a and c.

9| Did VA receive the request for a hearing within 30 days of the date of the notice of proposed adverse action referenced in Step 4?

  * If _yes_ , go to the next step.
  * If _no_ , go to Step 12.

**Reference:** For more information on handling requests for a hearing, see [M21-1, Part X, Subpart ii, 3.B.3](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177966/M21-1-Part-X-Subpart-ii-Chapter-3-Section-B-Adverse-Action-Proposal-Period>).  
10| Hold the hearing and obtain all relevant evidence the Veteran identifies during the hearing.  
11| 

  * Complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.a and c.
  * Disregard the remaining steps in this table.

12| Did the Veteran submit a completed and signed _VA Form 21-8951_ or [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>) with the hearing request?

  * If _yes_ ,
    * complete the actions described in M21-1, Part VI, Subpart ii, 3.A.5.c, and
    * disregard the remaining step in this table.
  * If _no_ , go to the next step.

**Note:** Because the Veteran did _not_ request a hearing within 30 days of the notice of proposed adverse action, VA may take the actions described in the next step or in M21-1, Part VI, Subpart ii, 3.A.5.c **_before_** it holds the hearing. **Reference:** For more information on what constitutes a “completed and signed _VA Form 21-8951_ ,” see M21-1, Part VI, Subpart ii, 3.A.5.a.  
13| Follow the instructions in [M21-1, Part VI, Subpart ii, 3.B.1](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179813/M21-1-Part-VI-Subpart-ii-Chapter-3-Section-B-Withholding-and-Restoration-of-Benefits-Associated-With-Receipt-of-Drill-Pay>) for adjusting the Veteran’s award.  

**Example:** 

**Scenario:** 

  * The number of training days printed on _VA Form 21-8951_ is 185.
  * Both the Veteran and personnel records retrieved through DPRIS confirm the Veteran was on active duty from June 25, 2020, through August 31, 2020. 
  * The table titled _Fiscal Year Monthly Drill Pay_ in VIS shows that in 
    * June 2020, the Veteran was paid for 2 days of drills and 6 days of active duty training
    * July 2020, the Veteran was paid for 30 days of active duty training, and
    * August 2020, the Veteran was paid for 30 days of active duty training.

**Actions:** 

  * Stop the Veteran’s benefits (based on her return to active duty) for the period June 25, 2020, through August 31, 2020. 

  * Begin withholding the Veteran’s benefits (based on her receipt of drill pay), for the

    * total number of days shown in the columns titled _Drill Days_ and _Active Duty Training Days_ of the table titled _Fiscal Year Monthly Drill Pay_ in VIS for the

      * months of October 2019 through May 2020, and

      * month of September 2020, plus

    * two countable days for the month of June 2020.

### VI.ii.3.A.4.c. Contemplating Periods of Service Under the ADSW Program

The number of days reported on _VA Form 21-8951_ may include periods of service under the Active Duty for Special Work (ADSW) program. Duties performed under the ADSW program may be for operational, support, or training purposes.  VA characterizes ADSW as active duty for the purpose of this topic **_unless_** the purpose for going on ADSW was to receive training. **Important:** 

  * Undertake development to determine the type of duty a Veteran performed while on ADSW, even though 
    * the duration of service is less than 180 days, and/or 
    * the service department issues the Veteran a _DD Form 214_ __ for the ADSW. 
  * If the Veteran went on ADSW to receive training, treat the active service pay received during this period of time as drill pay.
  * If the duties a Veteran performed during ADSW cannot be ascertained, treat the period of service as active duty.

_**Note**_ :  ADSW has generally transitioned and is now commonly referred to as “Active Duty for Operational Support.”  These terms are interchangeable for the purposes of this section. **Reference:** For assistance in characterizing duty when a Veteran **_provided_** training as opposed to **_receiving_** it, see [VAOPGCPREC 25-1990](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000051647/VAOPGCPREC-25-90-Jul-17-1990-Active-Duty-for-VA-Benefits-Reserve-Duty-as-Flight-Instructor>).  

## 5. Manual Processing of _VA Form 21-8951_

This topic contains instructions for manually processing _VA Form 21-8951_ , including

  * initial review of _VA Form 21-8951_
  * alternative means of communicating to VA the information a completed _VA Form 21-8951_ contains
  * processing _VA Form 21-8951_
  * actions to take when a Veteran 
    * chooses to waive military pay, and
    * requests reversal of a processed waiver of military pay, and
  * unrelated award adjustments that were made or are pending between the generation and processing of _VA Form 21-8951_.

April 22, 2026  

### VI.ii.3.A.5.a. Initial Review of VA Form 21-8951

Before processing _VA Form 21-8951_ , review the form to make sure it bears the appropriate signatures and is otherwise complete. A _VA Form 21-8951_ must always bear the signature of the Veteran that completed it.  It must also bear the signature of the Veteran’s unit commander **__if__** the

  * Veteran reports _fewer_ training days than what the Hines ITC printed on the form, and
  * none of the exceptions described under the _Exception_ sublabel in this block apply.

**Exception:** When a Veteran reports _fewer_ training days than what the Hines ITC printed on the corresponding _VA Form 21-8951_ , VA may accept the form _without_ the signature of the Veteran’s unit commander if the

  * Defense Finance and Accounting Services _Leave and Earnings Statement_ for the fiscal year under review confirms the accuracy of the number of training days the Veteran reported
  * Veteran informs VA, and VA confirms (through VIS or other means), that they retired from the Reserve/National Guard during the fiscal year under review, or
  * Veteran checks the box next to the sentence on _VA Form 21-8951_ that reads:  _I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension_.

Return an incomplete and/or unsigned form to the Veteran and advise that failure to return a completed and signed form may result in a reduction of benefits. **Important:** 

  * Do not treat as incomplete a _VA Form 21-8951_ that bears the appropriate signatures but contains no entry in Blocks 8 and/or 9 of the form.  If the Veteran makes no entry in
    * Block 8, assume the Veteran agrees with the number of training days printed on the front of the form, and
    * Block 9, assume the Veteran elects to waive VA benefits in order to retain training pay.
  * The system does not automatically upload into a Veteran’s eFolder _VA Forms 21-8951_ that the Veteran mails to VA.  Accordingly, ROs are responsible for moving the forms from the mail repository into the appropriate eFolder following their receipt.

**References:** For more information on 

  * data the Hines ITC provides for each Veteran on _VA Form 21-8951_ , see M21-1, Part VI, Subpart ii, 3.A.1.d
  * using VIS, see the [_VIS User Guide_](<http://vbaw.vba.va.gov/bl/21/publicat/docs/visug.pdf>), and
  * alternative means of communicating to VA the information a completed _VA Form 21-8951_ contains, see M21-1, Part VI, Subpart ii, 3.A.5.b.

### VI.ii.3.A.5.b. Alternative Means of Communicating to VA the Information a Completed VA Form 21-8951 Contains

There is **_no_** requirement that a Veteran use _VA Form 21-8951_ to communicate to VA the information that a completed _VA Form 21-8951_ would otherwise provide.  The communication _must_ be in writing, however, and _must_

  * include a clear indication of which benefit (drill pay or VA benefits) the Veteran desires to waive
  * specify the fiscal year in which training took place
  * provide the number of days for which the Veteran received drill pay during that fiscal year
  * bear the Veteran’s signature, and
  * bear the signature of the Veteran’s unit commander **_if_**
    * the Veteran reports _fewer_ training days than what the Hines ITC printed on the corresponding _VA Form 21-8951_ , and
    * none of the exceptions described under the _Exceptions_ sublabel in M21-1, Part VI, Subpart ii, 3.A.5.a, apply.

**Note:** Policies surrounding a claimant’s intent to file a claim, as explained in [M21-1, Part II, Subpart iii, 2.A](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000174873/M21-1-Part-II-Subpart-iii-Chapter-2-Section-A-Intent-to-File-ITF>), do **_not_** apply to drill-pay cases.  

### VI.ii.3.A.5.c. Processing VA Form 21-8951

Follow the steps in the table below upon receipt of a _VA Form 21-8951_ that is complete and signed in accordance with M21-1, Part VI, Subpart ii, 3.A.5.a. | **If the Veteran …**| **Then …**  
takes the action(s) described under Option 1 or 2 in M21-1, Part VI, Subpart ii, 3.A.1.j, and there is no reason to question the accuracy of the information the Veteran provided on the form| follow the instructions in [M21-1, Part VI, Subpart ii, 3.B.1](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179813/M21-1-Part-VI-Subpart-ii-Chapter-3-Section-B-Withholding-and-Restoration-of-Benefits-Associated-With-Receipt-of-Drill-Pay>) for withholding the Veteran’s benefits for the number of training days either the Hines ITC or the Veteran entered on the form. **Notes:** 

  * If an unrelated award adjustment was made between the date the Hines ITC generated the _VA Form 21-8951_ and the current date, determine whether the instructions in M21-1, Part VI, Subpart ii, 3.A.5.f, apply **_before_** taking the action described in the preceding paragraph. 
  * There is no requirement to issue a notice of proposed adverse action before adjusting a Veteran's award to reflect receipt of drill pay if a notice of proposed adverse action accompanied the _VA Form 21-8951_ when VA sent it to the Veteran for completion. 

checks the box next to the sentence in Block 9 of the form that reads _I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension_|  follow the instructions in M21-1, Part VI, Subpart ii, 3.A.5.d.   
checks the box next to the sentence in Block 9 of the form that reads _I received no military pay and allowances during the fiscal year(s) indicated on the front of this form_|  review the evidence of record (to include data displayed in VIS) to determine whether the Veteran was a reservist or member of the National Guard during the fiscal year in question.

  * If there is reason to question the accuracy of the Veteran’s assertion, initiate development, to include requesting a field examination, if necessary and appropriate.
  * If the evidence of record confirms the Veteran was **_not_** a reservist or member of the National Guard,
    * clear an EP 290 _unless_ this EP was previously cleared in Step 3 of the procedure described in M21-1, Part VI, Subpart ii, 3.A.1.i, and 
    * notify the Veteran that, based on the response on _VA Form 21-8951_ , VA will make no adjustments to the award.

**Reference:** For more information on using VIS, see the [_VIS User Guide_](<http://vbaw.vba.va.gov/bl/21/publicat/docs/visug.pdf>).  
**_ _**

**Important:** 

  * Follow the instructions in M21-1, Part VI, Subpart ii, 3.A.4.a if 
    * _VA Form 21-8951_ shows training in excess of 179 days, or
    * the evidence of record suggests the Veteran served on active duty during the fiscal year the _VA Form 21-8951_ covers. 
  * If a Veteran received drill pay during a period of entitlement to pension, review the Veteran’s unemployability status for pension purposes.

**Reference:** For more information on reviewing a Veteran’s unemployability status for pension purposes, see [M21-1, Part IX, Subpart ii, 2.B.1](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000178521/M21-1-Part-IX-Subpart-ii-Chapter-2-Section-B-Determining-Disability-Unemployability-and-Marginal-Employment-for-Pension>).  

### VI.ii.3.A.5.d. Actions to Take When a Veteran Chooses to Waive Military Pay

Follow the instructions in the table below if a Veteran checks the box on _VA Form 21-8951_ that reads _I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension_. | **Step**| **Action**  
1| Has VA already adjusted the Veteran’s award to reflect receipt of drill pay during the fiscal year to which the _VA Form 21-8951_ refers?

  * If _yes_ ,
    * establish EP 290, using the claim label _Drill Pay Adjustment_ , if not already established, and
    * go to the next step.
  * If _no_ , go to Step 7.

2| Did VA receive the form within one year of the **_later_** of the following dates: the date VA notified the Veteran of the award adjustment referenced in Step 1 or the end of the fiscal year to which the _VA Form 21-8951_ refers?

  * If _yes_ , go to Step 5.
  * If _no_ , go to the next step.

3| Prepare and send a decision notice that notifies the Veteran that VA cannot act on the waiver (to include any changes to the election or training days) because VA did not receive it within one year of the later of the following dates:

  * the date VA notified the Veteran of the award adjustment referenced in Step 1, or
  * the end of the fiscal year to which the _VA Form 21-8951_ refers.

4| Clear the EP 290 and disregard the remaining steps in this table.  
5| Reverse the award adjustment (referenced in Step 1) that VA made to reflect the Veteran’s receipt of drill pay. **Note:** Follow the instructions in [M21-1, Part VI, Subpart iii, 2.B.1.d](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179497/M21-1-Part-VI-Subpart-iii-Chapter-2-Section-B-The-Finance-Activity-at-the-Regional-Office-RO>), if a debt exists in the Veteran’s account.  
6| 

  * Prepare and send a decision notice that notifies the Veteran of the action taken in Step 5.  In the decision notice,
    * identify the fiscal year for which the Veteran elected to waive military pay, and
    * inform the Veteran that, based on the election, VA will _not_ adjust the Veteran’s award to reflect the receipt of drill pay during that fiscal year.
  * Go to Step 12.

7| Has the fiscal year for which the Veteran elected to waive military pay ended?

  * If _yes_ , go to Step 10.
  * If no,
    * establish EP 290, using the claim label _Drill Pay Adjustment_ , if not already established, and
    * go to the next step.

8| Prepare a decision notice that

  * informs the Veteran that VA cannot act on the election to waive military pay because the fiscal year for which the Veteran made the election has not yet ended, and
  * instructs the Veteran to request the waiver through their unit.

9| Clear the EP 290 and disregard the remaining steps in this table.  
10| Prepare and send a decision notice to the Veteran.  In the notice,

  * identify the fiscal year for which the Veteran elected to waive military pay, and
  * inform the Veteran that, based on the election, VA will _not_ adjust the Veteran’s award to reflect the receipt of drill pay during that fiscal year.

11| Is an EP 600 currently pending to control for return of the _VA Form 21-8951_ that the Veteran has now returned?

  * If _yes_ ,
    * process the claim under the EP 600, and
    * go to the next step.
  * If _no_ ,
    * process the claim under an EP 290, and
    * go to the next step.

12| Did the Veteran serve in the Army or Navy?

  * If _yes_ , 
    * follow the instructions in the _[AskDFAS Waivers of Military Pay and Allowances Job Aid](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ , to submit a request through the [AskDFAS Online Customer Service Portal](<https://corpweb1.dfas.mil/askDFAS/custCategories.action?tsm=1757099071433&currentUser.currentRequestNonce=5857d6be-a576-4e2d-a714-57bd8fe3a674&pgModId=5243>), and
    * disregard the remaining step in this table.
  * If _no_ , go to the next step.

**Important:** A copy of the AskDFAS confirmation e-mail _must_ be uploaded to the eFolder.**Reference:** For more information on uploading the AskDFAS confirmation e-mail to the eFolder, see the [_AskDFAS Waivers of Military Pay and Allowances Job Aid_](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>).    
13| Prepare an encrypted e-mail addressed to Compensation Service’s Military Pay Staff ([VAVBAWAS/CO/MILPAY](<mailto:milpay.vbaco@va.gov?subject=VA%20Form%2021-8951-Waiver%20of%20Military%20Pay>)).

  * In the subject line of the e-mail, type _VA Form 21-8951-2- Waiver of Military Pay**[branch of service]**._
  * In the body of the e-mail,
    * provide the
      * Veteran’s name and file number
      * date VA received the _VA Form 21-8951_ , and
      * date of the corresponding decision notice, and
    * type _Veteran elects to waive military pay and allowances for the days indicated in order to retain VA compensation or pension.   _

**Important:** A copy of the e-mail must be uploaded to the eFolder._**Reference**_ :  For more information on uploading documents to the eFolder, see 

  * [M21-1, Part II, Subpart ii, 2.A.1.b](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000174866/M21-1-Part-II-Subpart-ii-Chapter-2-Section-A-Folder-Maintenance>), and
  * the _VBMS Core User Guide._

**Important:** Decision notices referenced in the table above must adhere to the decision notice requirements in [M21-1, Part VI, Subpart i, 1.B.1.b](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179469/M21-1-Part-VI-Subpart-i-Chapter-1-Section-B-Decision-Notices>), to include providing decision review rights.

**Reference:** For more information on providing review rights in a decision notice, see [M21-1, Part VI, Subpart i, 1.B.1.j](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179469/M21-1-Part-VI-Subpart-i-Chapter-1-Section-B-Decision-Notices>).  

### VI.ii.3.A.5.e. Actions to Take When a Veteran Requests Reversal of a Processed Waiver of Military Pay

Follow the instructions in the table below if the Veteran requests to reverse a processed waiver of military pay described in M21-1, Part VI, Subpart ii, 3.A.5.d.  | **Step**| **Action**  
1| Establish EP 290, using the claim label _Drill Pay Adjustment_ , if not already established.   
2| Did VA receive the request within one year of the decision notice in Step 6 or Step 10 of M21-1, Part VI, Subpart ii, 3.A.5.d?

  * If _yes_ , go to Step 4.
  * If _no_ , go to the next step. 

**Important:** 

  * The request must include the same information described in M21-1, Part VI, Subpart ii, 3.A.5.b. 
  * [_VA Form 21-8951-2_](<https://vbaw.vba.va.gov/bl/20/cio/20s5/forms/VBA-21-8951-2-ARE.pdf>), is _not_ required to request reversal of the election of military pay. 

3| 

  * Prepare and send a decision notice that notifies the Veteran that VA cannot act on the request (to include any changes to the election or training days) because the request was not filed timely. 
  * Clear the EP 290 and disregard the remaining steps of this table. 

4| 

  * Follow the instructions in [M21-1, Part VI, Subpart ii, 3.B.1](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179813/M21-1-Part-VI-Subpart-ii-Chapter-3-Section-B-Withholding-and-Restoration-of-Benefits-Associated-With-Receipt-of-Drill-Pay>), to adjust the Veteran’s award based on receipt of drill pay.
  * Prepare and send a decision notice to notify the Veteran of the action taken.

**Reference:** For more information on calculating the number of days of drill pay, see M21-1, Part VI, Subpart ii, 3.A.2.b.  
5| Did the Veteran serve in the Army or Navy?

  * If _yes_ , 
    * follow the instructions in the [_AskDFAS Waivers of Military Pay and Allowances Job Aid_](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>), to submit a request through the [AskDFAS Online Customer Service Portal](<https://corpweb1.dfas.mil/askDFAS/custCategories.action?tsm=1757099071433&currentUser.currentRequestNonce=5857d6be-a576-4e2d-a714-57bd8fe3a674&pgModId=5243>)
    * clear the EP 290, and 
    * disregard the remaining steps of this table.
  * If _no_ , go to the next step.

**Important:** A copy of the AskDFAS confirmation e-mail _must_ be uploaded to the eFolder.**Reference:** For more information on uploading the AskDFAS confirmation email to the eFolder, see the [_AskDFAS Waivers of Military Pay and Allowances Job Aid_](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>).  
6| Prepare an encrypted e-mail addressed to Compensation Service’s Military Pay Staff ([VAVBAWAS/CO/MILPAY](<mailto:milpay.vbaco@va.gov>)).

  * In the subject line of the e-mail, type _Request for Reversal of Waiver of Military Pay**[branch of service]**._
  * In the body of the e-mail,
    * provide the
      * Veteran’s name and file number
      * date the VA received the Veteran’s request to reverse the waiver of military pay, and
      * date of the decision notice sent in Step 3 of this table, and
    * type _Veteran elects to reverse waiver of military pay and allowances and requests withholding of VA pay_.

**Important:** A copy of the e-mail must be uploaded to the eFolder. **Reference:** For more information on uploading documents to the eFolder, see

  * [M21-1, Part II, Subpart ii, 2.A.1.b](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000174866/M21-1-Part-II-Subpart-ii-Chapter-2-Section-A-Folder-Maintenance>), and
  * the _VBMS Core User Guide_. 

_**Important**_ :  Decision notices referenced in the table above _must_ adhere to the decision notice requirements in [M21-1, Part VI, Subpart i, 1.B.1.b](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179469/M21-1-Part-VI-Subpart-i-Chapter-1-Section-B-Decision-Notices>), to include providing decision review rights.

_**Reference**_ :  For more information on providing decision review rights in a decision notice, see [M21-1, Part VI, Subpart i, 1.B.1.j](</system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000179469/M21-1-Part-VI-Subpart-i-Chapter-1-Section-B-Decision-Notices>).    

### VI.ii.3.A.5.f. Unrelated Award Adjustments That Were Made or Are Pending Between the Generation and Processing of VA Form 21-8951

Claims processors must use the _[Drill Pay Calculator](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ to make the calculations described in the table in M21-1, Part VI, Subpart ii, 3.A.1.f, if, **_after_** the system generates a _VA Form 21-8951_ (for fiscal years 2020 and later) but **_before_** they process the form, VA

  * reduced or will reduce the Veteran’s gross disability compensation or pension to $0.00 from an effective date that falls within the fiscal year the _VA Form 21-8951_ covers, or
  * began or will begin paying the Veteran disability compensation or pension (after granting entitlement for the first time or after reducing the Veteran’s gross disability compensation or pension to $0.00) from an effective date that falls within the fiscal year the _VA Form 21-8951_ covers.

**Important:** Claims processors must 

  * apply the rules described in M21-1, Part VI, Subpart ii, 3.A.1.g, when the _[Drill Pay Calculator](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ to make the calculations described in the table in M21-1, Part VI, Subpart ii, 3.A.1.f, and
  * upload a copy of the _[Drill Pay Calculator](<https://vbaw.vba.va.gov/bl/21/rating/rat00.htm>)_ results to the eFolder.
