--- title: "Part VI, Subpart iv, Chapter 1, Section A Effects of an Individual’s Incarceration on Department of Veterans Affairs (VA) Benefits" document: "M-21-1" section: "Part VI, Subpart iv, Chapter 1, Section A" canonical: "https://veteranai.co/va-regulations/m21-1/vi.iv.1.a-effects-of-an-individuals-incarceration-on-department-of" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000207862/M21-1-Part-VI-Subpart-iv-Chapter-1-Section-A-Effects-of-an-Individuals-Incarceration-on-Department-of-Veterans-Affairs-VA-Benefits" updated: "2026-09-07T14:37:25.025372Z" --- March 27, 2025 ### VI.iv.1.A.1.a. Definition: Incarceration For Department of Veterans Affairs (VA) purposes, the term **_incarceration_** * refers to the confinement of an individual in a penal institution, even though the individual may be allowed outside the institution temporarily on furlough or for medical treatment, and * includes confinement at any of the following, as long as confinement is pursuant to a criminal sentence: * medical facility or mental institution, or * other locations, such as work camps, forestry camps, or boot camps. **Reference:** For more information on treating confinement in a mental institution as incarceration for VA purposes, see [_Philbrook v. Wilkie_](). ### VI.iv.1.A.1.b. Definition: Conviction Date The _**conviction date**_ is the date a court formally finds a defendant guilty of an offense._**Important**_ : * This is the date used by VA to determine whether to reduce or terminate VA benefits during incarceration. * Do not confuse this date with the sentencing date or the confinement date. ### VI.iv.1.A.1.c. Regulatory Requirements for Reducing or Discontinuing Benefits During Incarceration [38 CFR 3.665]() requires the **_reduction_** of a beneficiary’s** _disability compensation_** or **_Dependency and Indemnity Compensation (DIC)_** when the beneficiary is incarcerated more than 60 days following conviction of a **_felony_**. [38 CFR 3.666]() requires the **_discontinuance_** of a beneficiary’s **_pension_** when the beneficiary is incarcerated more than 60 days following conviction of a **_felony or misdemeanor_**. **Notes:** * A beneficiary, for the purpose of the two preceding paragraphs, is limited to * Veterans that are entitled to disability compensation or pension * surviving spouses, children, and parents that are entitled to DIC, and * surviving spouses and children that are entitled to Survivors Pension. * The requirement to reduce or discontinue benefits applies to beneficiaries incarcerated in a Federal, State, or local penal institution or correctional facility, including privately owned correctional facilities that are operated under contract with a State. * The proper effective date for reducing or discontinuing benefits is the 61st day of incarceration. **References:** For more information on * privately owned correctional facilities, see [VAOPGCPREC 5-2006]() * the effect a beneficiary’s incarceration has on an award of * disability compensation, see M21-1, Part VI, Subpart iv, 1.A.2.a-c * DIC, see M21-1, Part VI, Subpart iv, 1.A.2.e, and * pension, see M21-1, Part VI, Subpart iv, 1.A.2.f * incarcerated apportionees and custodians, see [M21-1, Part VI, Subpart iv, 1.B.6](), and * processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a. ### VI.iv.1.A.1.d. Effect of a Dependent’s Incarceration on a Beneficiary’s Award [38 CFR 3.666]() requires the removal of an incarcerated dependent from a beneficiary’s award if the beneficiary receives **_pension_**. There is no such requirement, however, if the beneficiary is a * Veteran receiving disability compensation, or * surviving spouse receiving DIC. **_**_References_**_** : For more information on * removing an incarcerated dependent from a pension award, see [M21-1, Part VI, Subpart iv, 1.B.1]() * the effect of an _apportionee’s_ incarceration on the apportionment, see [M21-1, Part VI, Subpart iv, 1.B.6](), and * dependents that are fugitive felons, see M21-1, Part VI, Subpart iv, 1.A.1.g. ### VI.iv.1.A.1.e. Periods During Which VA May Not Reduce or Discontinue Benefits Do not reduce or discontinue benefits for any period during which the individual in question is * participating in a work-release program * under community control (per [VAOPGCPREC 59-1991]()) * incarcerated in a foreign penal institution, or * residing in a * halfway house * residential re-entry center, or * civil commitment center. **Notes:** “Residential re-entry center” is a term used by the Bureau of Prisons (BOP) in lieu of the traditional term “halfway house.” **Reference:** For more information on beneficiaries or dependents that are transferred from a foreign penal institution to a Federal, State, or local penal institution to serve the remainder of their sentence for a foreign conviction, see M21-1, Part VI, Subpart iv, 1.A.4.b. ### VI.iv.1.A.1.f. Data-Matching Programs That Identify Incarcerated Beneficiaries and Dependents Through agreements with BOP and the Social Security Administration (SSA), VA periodically compares data in its records with data in BOP and SSA records to identify VA beneficiaries and dependents that have been incarcerated in Federal or State penal institutions. **Note:** VA also receives notice of the incarceration of beneficiaries and dependents through unofficial sources. **Reference:** For more information on the data-matching programs discussed in this block, see [M21-1, Part XIV, 7.1](). ### VI.iv.1.A.1.g. Beneficiaries and Dependents That Are Fugitive Felons Disability compensation, DIC, and pension are not payable * to a beneficiary that is a fugitive felon, or * for a dependent that is a fugitive felon. A fugitive felon is anyone that is * fleeing to avoid prosecution, being taken into custody, or confinement, after being convicted for, or attempting to commit, an offense that is a felony, or * violating a condition of probation or parole imposed for commission of a felony. **References:** For more information on * the requirement to suspend benefits of fugitive felons, see * [38 CFR 3.665(n)]() (for compensation and DIC), and * [38 CFR 3.666(e)]() (for pension) * identifying fugitive felons, see [M21-1, Part XIV, 8.1](), and * adjusting awards based on fugitive felon status, see [M21-1, Part XIV, 8.2](). ## 2. Benefit-Specific Effects of a Beneficiary’s Incarceration This topic contains information regarding the benefit-specific effects of a beneficiary’s incarceration, including * effect of incarceration on * payments of disability compensation, and * ratings of total disability due to individual unemployability (TDIU) * increased disability evaluations during incarceration * effect of incarceration on * payment of the clothing allowance * payments of DIC, and * pension awards, and * determining whether VA is paying education benefits to an incarcerated beneficiary. April 23, 2026 ### VI.iv.1.A.2.a. Effect of Incarceration on Payments of Disability Compensation Use the table below to determine the amount to which VA must reduce a Veteran’s disability compensation when the Veteran is incarcerated for more than 60 days following conviction for a felony. **Important:** Reduction is necessary only if the Veteran * committed the felony after October 7, 1980 * was incarcerated on October 1, 1980 (regardless of the date the Veteran committed the felony), and VA granted entitlement to disability compensation with an effective date that is _after_ September 30, 1980, or * was incarcerated on or before October 7, 1980, for a felony committed prior to that date, and the Veteran remained incarcerated for the same conviction through December 27, 2001. (Reductions under this last condition take effect beginning with the payment of disability compensation VA makes for the month of April 2002.) | **If the Veteran’s disability evaluation for all service-connected (SC) disabilities is ...**| **Then ...** 0 percent, but the Veteran is entitled to * special monthly compensation (SMC) under [38 U.S.C. 1114(k)](), or * a protected rate under [38 CFR 3.959]() (statutory SMC Q) | [38 CFR 3.665(d)(2)]() requires VA to reduce the Veteran’s monthly award to _one half_ of the amount payable for an SC disability evaluated as 10-percent disabling. 10 percent 20 percent or higher| [38 CFR 3.665(d)(1)]() requires VA to reduce the Veteran’s monthly award to the amount payable for an SC disability evaluated as 10-percent disabling. **Note:** Pay the Veteran the full amount of any benefit due for periods _prior_ to October 1, 1980. **References:** For more information on * processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a, and * apportioning an incarcerated Veteran’s disability compensation to dependent(s), see [M21-1, Part VI, Subpart iv, 2.B.2](). ### VI.iv.1.A.2.b. Effect of Incarceration on Ratings of TDIU [38 CFR 3.341(b)]() prohibits the assignment of an initial or reinstated rating of total disability due to individual unemployability (TDIU) during a period of incarceration. There is no requirement, however, to _discontinue_ a rating of TDIU solely because a Veteran was incarcerated and, thereby, removed from the work-possible environment. **Important:** Although a rating of TDIU may remain in effect during a Veteran’s incarceration, the Veteran’s disability compensation is still subject to the reduction described in M21-1, Part VI, Subpart iv, 1.A.2.a. **References:** For more information on * ratings of TDIU, see [M21-1, Part VIII, Subpart iv, 3.C]() * treating confinement in a mental institution as incarceration for VA purposes, see [_Philbrook v. Wilkie_](), and * the effect of removal from the work-possible environment on a rating of TDIU, see [VAOPGCPREC 13-1997](). ### VI.iv.1.A.2.c. Increased Disability Evaluations During Incarceration Use the table below if VA increases a Veteran’s overall disability evaluation for SC disabilities from an effective date that falls within a period during which VA reduced the Veteran’s disability compensation due to incarceration. | **If ...**| **Then ...** VA increased the overall disability evaluation from a level of 10 percent to a level of 20 percent or higher| increase the Veteran’s benefits to the rate payable for an SC disability evaluated as 10-percent disabling during the period of incarceration. the Veteran’s overall disability evaluation was 20 percent or higher **_before_** VA granted entitlement to an increased evaluation.| process the corresponding rating decision but do not increase the Veteran’s benefits to reflect the increased evaluation until incarceration ends. **Important:** As stated in M21-1, Part VI, Subpart iv, 1.A.2.b, [38 CFR 3.341(b)]() prohibits the assignment of an initial or reinstated rating of TDIU during a period of incarceration. **Reference:** For more information on handling increased disability evaluations during incarceration, see [38 CFR 3.665(j)](). ### VI.iv.1.A.2.d. Effect of Incarceration on Payment of the Clothing Allowance [38 CFR 3.810(d)]() requires a reduction in VA’s clothing allowance if * a Veteran entitled to this benefit is incarcerated for more than 60 days, and * the Veteran receives clothing at no cost from the penal institution. **Reference:** For more information on VA’s clothing allowance, see [M21-1, Part XIII, Subpart i, 8.A](). ### VI.iv.1.A.2.e. Effect of Incarceration on Payments of DIC When a beneficiary (other than an apportionee) entitled to DIC is incarcerated for more than 60 days following conviction of a felony, [38 CFR 3.665(d)(3)]() requires VA to reduce the beneficiary’s monthly award to an amount equal to _one half_ of the amount payable for an SC disability evaluated as 10-percent disabling. **Important:** * Reduction of DIC due to incarceration is necessary only if the beneficiary * committed the felony after October 7, 1980, or * was incarcerated on October 1, 1980 (regardless of the date the beneficiary committed the felony), and VA granted entitlement to DIC with an effective date that is _after_ September 30, 1980. * Pay beneficiaries the full amount of any benefit due them for periods _prior_ to October 1, 1980. * If a parent’s DIC award is less than half of the amount payable for an SC disability evaluated as 10-percent disabling, do not adjust the award. **References:** For more information on * incarcerated apportionees, see [M21-1, Part VI, Subpart iv, 1.B.6]() * processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a, and * the apportionment of an incarcerated surviving spouse’s or child’s DIC, see * [M21-1, Part VI, Subpart iv, 1.B.3 and 4](), and * [38 CFR 3.665(e)(2)](). ### VI.iv.1.A.2.f. Effect of Incarceration on Pension Awards When a beneficiary entitled to pension is incarcerated for more than 60 days following conviction of a felony _or misdemeanor_ , [38 CFR 3.666]() requires VA to discontinue payments of pension. Before discontinuing _Veterans Pension_ due to incarceration, review the claims folder to determine whether the Veteran is also entitled to _disability compensation_. If entitlement to both benefits exists, follow the instructions in [M21-1, Part VI, Subpart iv, 2.B.3](). **References:** For more information on * the effect of an _apportionee’s_ incarceration on an apportionment, see [M21-1, Part VI, Subpart iv, 1.B.6]() * processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a, and * the apportionment of an incarcerated * Veteran’s pension to dependents, see * [M21-1, Part VI, Subpart iv, 2.B.1](), and * [38 CFR 3.666(a)]() * surviving spouse’s pension to eligible children, see * [M21-1, Part VI, Subpart iv, 1.B.2](), and * [38 CFR 3.666(b)(1)](), and * child’s pension to a surviving spouse or other eligible children, see [38 CFR 3.666(b)(2)](). ### VI.iv.1.A.2.g. Determining Whether VA Is Paying Education Benefits to an Incarcerated Beneficiary Review the FINANCIAL INFORMATION screen in the Veterans Benefits Management System (VBMS) to determine whether VA is paying education benefits to an incarcerated beneficiary. If it is, e-mail a copy of the official notice of incarceration to the regional processing office (RPO) of jurisdiction, as an adjustment of the education benefits might be necessary. **References:** For more information on * what constitutes official notice, see M21-1, Part VI, Subpart iv, 1.A.3.c * determining the RPO of jurisdiction, see [M22-4, Part 3, 1.02](), and * the e-mail address of individual RPOs, see [M21-1, Part XIII, Subpart i, 1.B.3.b](). ## 3. Handling Notice of Incarceration This topic contains instructions for handling notice of incarceration, including * action to take upon receipt of notice of incarceration * identifying official * sources of information regarding an individual’s incarceration, and * notice of incarceration * verifying the details of incarceration * available means for requesting/obtaining information from official sources * re-incarceration for the same conviction following a period of release, and * handling notice that charges against an incarcerated * beneficiary were dismissed or overturned or the type of conviction was changed, and * former apportionee were dismissed or overturned or the type of conviction was changed. April 23, 2026 ### VI.iv.1.A.3.a. Action to Take Upon Receipt of Notice of Incarceration Follow the steps in the table below upon receipt of notice of the incarceration of a * beneficiary, _to include an apportionee_ , or * dependent on a beneficiary’s award. **Exceptions:** * As indicated in M21-1, Part VI, Subpart iv, 1.A.1.d, there is no requirement to remove an incarcerated dependent from the award of a * Veteran in receipt of disability compensation, or * surviving spouse in receipt of DIC. * Instead of following the procedure described in the table below, follow the instructions in * [M21-1, Part VI, Subpart iv, 1.B.6](), if the incarcerated individual is * an apportionee, **_and_** * the custodian of one or more other apportionees,or * M21-1, Part VI, Subpart iv, 1.A.4.d, if there is evidence that the claimant is incarcerated but not yet in receipt of monetary benefits. | **Step**| **Action** 1| Establish end product (EP) 290, using the claim label * _Bureau of Prisons Match_ or _Social Security Prison Match_ (whichever applies) if notice of incarceration was obtained via the data-matching programs discussed in [M21-1, Part XIV, 7](), or * _Incarceration Adjustment_ in all other instances. Use the table below to determine the appropriate date of claim (DOC).| **If VA received notice of incarceration through …**| **Then use as the DOC the …** VA’s data-matching program with BOP or SSA| date of the 800 series work item referenced in [M21-1, Part XIV, 7.1.b](). **Notes:** * Using the “run date” that appears in the upper right corner of the worksheet referenced in [M21-1, Part XIV, 7.1.b](), as the DOC is also acceptable, as this date and the date of the 800 series work item will always be the same. * Do **_not_** use as the DOC the date the worksheet was uploaded into the electronic claims folder (eFolder). means _other than_ the data-matching programs referenced in the previous row| date VA received the notice. 2| If the beneficiary is in receipt of disability compensation, add _Potential Under/Overpayment_ as a special issue. 3| Did VA receive the notice of incarceration from the beneficiary? * If _yes_ , go to Step 6. * If _no_ , go to the next step. 4| Is the notice VA received “official,” as discussed in M21-1, Part VI, Subpart iv, 1.A.3.c? * If _yes_ , go to the next step. * If _no_ , go to Step 7. 5| Has VA obtained the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b? * If _yes_ , go to Step 16. * If _no_ , go to the next step. **Notes:** * Although the worksheets referenced in [M21-1, Part XIV, 7.1.b](), constitute official notice of incarceration, they do **_not_** provide claims processors all the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d. * A _VA and Federal Bureau of Prisons Computer Match_ worksheet constitutes confirmation from an official source that the named prisoner was * convicted of a felony or misdemeanor, and * imprisoned in a Federal penal institution for more than 60 days. * If the type of offense is unknown/missing from a _VA and Federal Bureau of Prisons Computer Match_ worksheet, confirmation of the type of conviction must be obtained from an official source, **_unless_** * the inmate locator on the [BOP website]() shows an actual or projected release date one year or more from the computation date, or * the benefit that is subject to adjustment (discontinuation) is pension. * The date listed in the COMPUTATION DATE OF CURRENT SENTENCE field of the _VA and Federal Bureau of Prisons Computer Match_ worksheet does **_not_** reliably represent the date of incarceration. 6| Request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source. * If VA _requests_ the information (by letter, for example), go to Step 13. * If VA obtains the information _without_ issuing a request (through telephone contact or by accessing a correctional facility’s website, for example), go to Step 16. **Note:** Allow entities from which VA requests information concerning an individual’s incarceration 30 days to respond. **Reference:** For a discussion of the available means for requesting/obtaining information from an official source, see M21-1, Part VI, Subpart iv, 1.A.3.e. 7| Attempt to corroborate the unofficial notice **_and_** request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d through official sources. **Note:** Allow entities from which VA requests corroboration of and information concerning an individual’s incarceration 30 days to respond. **Reference:** For a discussion of the available means for requesting/obtaining information/corroboration from official sources, see M21-1, Part VI, Subpart iv, 1.A.3.e. 8| Use the table below to determine the actions to take based on how VA obtained the information. | **If VA …**| **Then …** _requests_ the information/corroboration referenced in Step 7 (by letter, for example)| go to the next step. obtains the information/corroboration referenced in Step 7 _without_ issuing a request (through telephone contact or by accessing a correctional facility’s website, for example)| go to Step 16. confirms through official sources – _without_ issuing a request – that the beneficiary or dependent is/was not incarcerated | * clear the EP 290, and * take no further action. 9| Did the entity from which VA requested information/corroboration respond within 30 days? * If _yes_ , go to Step 12. * If _no_ , go to the next step. 10| Send a follow-up request and allow 30 days for a response. 11| Did the entity to which VA sent a follow-up request respond within 30 days? * If _yes_ , go to the next step. * If _no_ , * clear the EP 290, and * take no further action. 12| Use the table below to determine the actions to take based on whether the notice of incarceration was corroborated. | **If the unofficial notice of incarceration …**| **Then …** is corroborated| go to Step 16. is **_not_** corroborated| * clear the EP 290, and * take no further action. 13| Did the entity from which VA requested the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d respond within 30 days? * If _yes_ , go to Step 16. * If _no_ , go to the next step. **Note:** If the _[VA Form 21-4193, Notice to Department of Veterans Affairs of Veteran or Beneficiary Incarcerated in Penal Institution]()_ , or equivalent, requested from the entity does not contain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d, claims processors are required to attempt to contact the entity by telephone. When telephone contact is unsuccessful, send a follow-up letter requesting the specific missing information and allow 30 days for a response. 14| Send a follow-up request for the information and allow 30 days for a response. 15| Did the entity to which VA sent a follow-up request respond within 30 days? * If _yes_ , go to the next step. * If _no_ , * clear the EP 290 * establish EP 600, using the current date as the DOC and the _Bur_[eau] _of Prisons_ or _SSA Prison Match_ claim label, if applicable * add _Potential Under/Overpayment_ as a special issue, if the beneficiary is in receipt of disability compensation, and * go to Step 17. 16| Use the table below to determine the actions to take based on the information received concerning the incarceration. | **If information obtained from official sources shows the beneficiary or dependent was incarcerated …**| **Then …** * for reasons **_other than_** conviction of a * felony (if the beneficiary receives disability compensation or DIC), or * felony or misdemeanor (if the beneficiary receives pension) * **_less than_** 60 days after conviction for a felony or misdemeanor, or * for an offense that, due to delays in criminal justice processing (pending the assignment of a trial date, for example), has yet to result in conviction or acquittal/dismissal * clear the EP 290, and * take no further action. **Important:** If the _beneficiary_ was the source of the notice of incarceration, send notification as to the reason why no award adjustment is necessary. at least 60 days after conviction for a * felony (if the beneficiary receives disability compensation or DIC), or * felony or misdemeanor (if the beneficiary receives pension) * clear the EP 290 * establish EP 600, using the current date as the DOC and the _Bur_[eau] _of Prisons_ or _SSA Prison Match_ claim label, if applicable * add _Potential Under/Overpayment_ as a special issue, if the beneficiary is in receipt of disability compensation, and * go to the next step. 17| * Prepare a notice of proposed adverse action and send the notice to the beneficiary. * A screenshot of the [Veterans Service Representative Assistant’s]() 61-Day Rule Incarceration Calculator showing the proposed reduction date must be uploaded to the eFolder each time a notice of proposed adverse action is sent. * If the incarcerated beneficiary is an apportionee, * disregard the remaining steps in this table, and * follow the instructions in [M21-1, Part VI, Subpart iv, 1.B.6.a](). **Important:** * If the address of family members that are eligible for an apportionment of an incarcerated Veteran’s, surviving spouse’s, or surviving child’s (DIC only) benefits is known, send [_VA Form 21-0788, Information Regarding Apportionment of Beneficiary’s Award_](), to them at the same time the notice of proposed adverse action is sent to the beneficiary. * A beneficiary is entitled to due process and the notice described in this cell _each time_ incarceration (following conviction of a felony or misdemeanor, which ever applies) in excess of 60 days occurs. This includes re-incarceration (after VA takes the actions described in M21-1, Part VI, Subpart iv, 1.A.5) because of * a parole violation, or * dismissal from a halfway house or work-release program. * Send notice of proposed adverse action to a beneficiary at the current address of record, even if the incarcerated individual is a dependent (pension cases only). * If the incarcerated beneficiary is an apportionee to whom VA is apportioning a Veteran’s disability compensation or a surviving spouse’s DIC, there is no need to send notice of proposed adverse action to the Veteran or surviving spouse. * Do _not_ send notice of proposed adverse action to the address of a prison unless that address happens to be a beneficiary’s current address of record. * If the register or identification number a prison uses to identify an incarcerated beneficiary is known, include it after the beneficiary's name when sending correspondence to the beneficiary at the prison address. (The worksheets referenced in [M21-1, Part XIV, 7.1.b](), provide these numbers.) **References:** For more information on * due process and the issuing of notices of proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A]() * the amount to which VA must reduce disability compensation and DIC when a Veteran or surviving spouse is incarcerated, see M21-1, Part VI, Subpart iv, 1.A.2.a and e, respectively * apportioning an incarcerated Veteran’s disability compensation to dependent(s), see [M21-1, Part VI, Subpart iv, 2.B.2]() * apportioning an incarcerated beneficiary’s DIC to other family members, see [M21-1, Part VI, Subpart iv, 1.B.3 and 4](), and * apportioning an incarcerated * Veteran’s pension to dependents, see [M21-1, Part VI, Subpart iv, 2.B.1]() * surviving spouse’s Survivors Pension to other family members, see [M21-1, Part VI, Subpart iv, 1.B.2](), and * child’s pension to other family members, see [38 CFR 3.666(b)(2)](). 18| Did the beneficiary respond to the notice of proposed adverse action within 65 days of the date VA sent the notice? * If _yes_ , go to the next step. * If _no_ , go to Step 20. _**Note**_ : Follow the instructions in [M21-1, Part X, Subpart ii, 3.B](), if a beneficiary requests a hearing in response to the notice of proposed adverse action. 19| Did the beneficiary submit evidence showing an adjustment of the award due to incarceration is **_not_** in order? * If _yes_ , * clear the EP 600 * notify the beneficiary that VA will _not_ reduce or discontinue (whichever applies) benefits, and * disregard the remaining steps in this table. * If _no_ , go to the next step. 20| Reduce or discontinue benefits under the EP 600 as proposed in the notice of proposed adverse action. **Note:** To execute the reduction or discontinuance of benefits in the claims-processing system based on a _**beneficiary’s**_ incarceration, follow the instructions in the _VBMS - Awards (VBMS-A) User Guide_. 21| Notify the beneficiary of the action taken. **Reference:** For more information on issuing decision notices, see [M21-1, Part VI, Subpart i, 1.B](). _**Notes**_ : * If the beneficiary is a Veteran, * add the _Incarceration_ corporate flash while the Veteran is confined to a penal institution, and * remove the _Incarceration_ corporate flash once the Veteran is released. * The _Incarceration_ flash is automatically affixed when a match is generated through the batch process described in [M21‑1, Part XIV, 7](). Ensure that the corporate flash is assigned when appropriate. ### VI.iv.1.A.3.b. Identifying Official Sources of Information Regarding an Individual’s Incarceration For the purpose of this section, an official source of information regarding an individual’s incarceration includes * Federal, State, and local government authorities, such as * law enforcement officials * officials at correctional facilities * prosecutors, and * parole officers * BOP’s website (), and * official websites of individual correctional facilities. _**Note**_ : The Veterans Benefits Administration previously considered Vine (), a privately operated, online, inmate locator service, an official source. While claims processors may still utilize this resource, it is considered an unofficial source of information regarding an individual’s incarceration, and any information received from this website must be verified through an official source. ### VI.iv.1.A.3.c. Identifying Official Notice of Incarceration Each of the following constitute official notice of incarceration: * an 800 series work item that was system-generated as a result of the data-matching programs described in [M21-1, Part XIV, 7]() * a completed _[VA Form 21-4193]()_ from a correctional facility, and * evidence of incarceration that originated from an official source, including statements affirming incarceration from * prison or law enforcement authorities * prosecutors, or * parole officers. _**Important**_ : Statements affirming incarceration from a private attorney or family members do **_not_** constitute official notice. ### VI.iv.1.A.3.d. Verifying the Details of Incarceration Prior to issuing notice of a proposal to reduce or discontinue benefits based on incarceration, obtain the following information from an official source: * type of conviction (such as felony, misdemeanor, or infraction) * date (month, day, year) of conviction * date (month, day, year) of incarceration following conviction, and * an indication that incarceration lasted for more than 60 days following the date of conviction. **Note:** M21-1, Part VI, Subpart iv, 1.A.3.e describes the available means for obtaining the information referenced in this block. **References:** For a definition of * official source, see M21-1, Part VI, Subpart iv, 1.A.3.b, and * conviction date, see M21-1, Part VI, Subpart iv, 1.A.1.b. ### VI.iv.1.A.3.e. Available Means for Requesting/ Obtaining Information From Official Sources The available means for requesting/obtaining information from official sources consist of the following: * contacting (by telephone or e-mail) the correctional facility where the individual is/was incarcerated * accessing BOP’s website (), and/or * asking the correctional facility where the individual is/was incarcerated to complete and return [_VA Form 21-4193_](). **Note:** Many correctional facilities have websites that * display telephone numbers and/or e-mail addresses of facility officials, and/or * allow visitors to access inmate locator data. Use the table below to determine the appropriate documentation method for information obtained from an official source regarding a beneficiary’s or dependent’s incarceration. | **If information is obtained …**| **Then ...** by telephone| * document the call on [_VA Form 27-0820e, Report of Incarceration_](), and * save a copy of the form in the beneficiary’s claims folder. by e-mail or fax| save a copy of the e-mail or fax in the beneficiary’s claims folder. from a website| * make a screen print of the relevant webpage, and * associate a copy of the screen print with the beneficiary’s claims folder. **Reference:** For more information on uploading documents to eFolders, see * [M21-1, Part II, Subpart ii, 2.A.1.b](), and * the _VBMS Core User Guide_. ### VI.iv.1.A.3.f. Re-Incarceration for the Same Conviction Following a Period of Release The instructions contained in M21-1, Part VI, Subpart iv, 1.A.3.a apply equally to instances of _re-incarceration_ for the same conviction following a period of release. Re-incarceration may occur, for example, following a parole violation or dismissal from a halfway house or work-release program. **Example:** * VA begins paying a Veteran disability compensation at the full rate of entitlement after release from prison and placement on parole. * Three months later, the Veteran violates parole and is re-incarcerated. **Results:** * VA must complete each of the steps in the procedure outlined in M21-1, Part VI, Subpart iv, 1.A.3.a, to include the issuing of a new notice of proposed adverse action. * VA may not reduce the Veteran’s disability compensation any earlier than the 61st day of _re-incarceration_. **Reference:** See [VAOPGCPREC 2-1996]() for a discussion regarding * the payment of benefits while a beneficiary is on parole, and * re-incarceration of a beneficiary. ### VI.iv.1.A.3.g. Handling Notice That Charges Against an Incarcerated Beneficiary Were Dismissed or Overturned or the Type of Conviction Was Changed Follow the steps in the table below after receiving notice of the * charges that resulted in a beneficiary’s incarceration have been dismissed or were overturned, or * type of conviction (felony) that resulted in incarceration has changed such that a reduction or discontinuance of benefits is no longer required under [38 CFR 3.665](). **Exceptions:** * If the beneficiary is a former apportionee whose apportionment VA discontinued based on the _former apportionee’s_ incarceration, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.3.h, instead of the steps in the table below. * There is **_no_** regulatory authority (such as that which exists in [38 CFR 3.665(m)]()) to take the actions described in this block if the benefit at issue is _**pension**_. | **Step**| **Action** 1| Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: * _Incarceration Adjustment_(disability compensation), or * _PMC-Incarceration Adjustment_ (DIC). **Reference:** For more information on EP codes and controls, see [M21-4, Appendix B](). 2| Did VA receive the notice **_directly_** from one of the official sources referenced in M21-1, Part VI, Subpart iv, 1.A.3.b? * If _yes_ , go to Step 8. * If _no_ , go to the next step. **Important:** Go to the next step if the _beneficiary_ submitted the notice, even if the notice was accompanied by what appears to be evidence from an official source. 3| Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation * is received immediately (on the same day as an attempt(s) is made), go to Step 8, or * cannot be immediately obtained, go to the next step. 4| Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice. 5| Concurrent with the action described in the previous step, prepare and send to the beneficiary a letter that * notifies the beneficiary of the requirement that VA obtain confirmation from an official source that * charges were dismissed or overturned, or * the type of conviction was changed, and * encourages the beneficiary to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA. 6| Was confirmation received from an official source within 30 days? * If _yes_ , go to Step 8. * If _no_ , go to the next step. 7| * Notify the beneficiary that VA cannot restore benefits without confirmation from an official source that * charges were dismissed or overturned, or * the type of conviction was changed. * Clear the pending EP 290. * Disregard the remaining steps in this table. 8| Remove the _Incarceration_ corporate flash (if present). 9| Restore benefits that were reduced due to incarceration and to which the beneficiary is otherwise entitled. Use the table below to determine the correct effective date. **Important:** * Do **_not_** restore to a primary beneficiary benefits that VA apportioned to dependents as a result of the primary beneficiary’s incarceration. * Apply the exclusion identified in [38 CFR 3.31(c)(3)(v)]() when determining the effective date of **_payment_**. | **If VA received** **the notice referenced in the opening sentence of this block**…**| **Then …** within one year of the date * charges were dismissed or overturned, or * the type of conviction was changed | use the same effective date to restore benefits that VA used when it reduced benefits because of incarceration. one year or more after the date * charges were dismissed or overturned, or * the type of conviction was changed | restore benefits effective the date VA received the notice referenced in the opening sentence of this block. **References:** For more information on * apportioning an incarcerated * Veteran’s disability compensation to dependent(s), see [M21-1, Part VI, Subpart iv, 2.B.2](), and * surviving spouse’s DIC to dependent(s), see [M21-1, Part VI, Subpart iv, 1.B.3](), and * the difference between the effective date of entitlement and the effective date of payment, see [M21-1, Part VI, Subpart i, 1.A.2.b](). ### VI.iv.1.A.3.h. Handling Notice That Charges Against an Incarcerated Former Apportionee Were Dismissed or Overturned or the Type of Conviction Was Changed After discontinuing an apportionment because _the apportionee_ was incarcerated, follow the steps in the table below if VA receives notice the * charges that resulted in incarceration have been dismissed or were overturned, or * type of conviction (felony) that resulted in incarceration has changed such that discontinuation of the apportionment may no longer be necessary under [38 CFR 3.665](). **Exceptions:** There is no regulatory authority (such as that which exist in [38 CFR 3.665(m)]() to take the actions described in this block if the apportioned benefit is **_pension_**.| **Step**| **Action** 1| Did the former apportionee provide the notice? * If _yes_ , go to the next step. * If _no_ , disregard the remaining steps in this table. No further action is required. 2| Did the former apportionee submit [_VA Form 21-0788_]() with the notice? * If _yes_ , go to the next step. * If _no_ , * treat the notice as a request for an application, and * disregard the remaining steps in this table. **Reference:** For more information on treating correspondence from a potential claimant as a request for an application, see [M21-1, Part II, Subpart iii, 2.G.1](). 3| Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: * _Incarceration Adjustment_(disability compensation), or * _PMC-Incarceration Adjustment_ (DIC). **Reference:** For more information on EP codes and controls, see [M21-4, Appendix B](). 4| Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation * is received immediately (on the same day as an attempt(s) is made), go to the next step, or * cannot be immediately obtained, go to Step 6. 5| * Change the EP 290 to EP 130. * Decide the new claim for an apportionment based on the regulations in effect at the time the claim was received. * Disregard the remaining steps in this table. **Important:** If entitlement to an apportionment exists, the proper effective date is the date VA received the [_VA Form 21-0788_]() referenced in Step 2. Apply the exclusion identified in [38 CFR 3.31(c)(3)(v)]() when determining the effective date of **_payment_**. **References:** For more information on * processing claims for an apportionment, see [M21-1, Part VI, Subpart iv, 2.A](), and * the difference between the effective date of _entitlement_ and the effective date of _payment_ , see [M21-1, Part VI, Subpart i, 1.A.2.b](). 6| Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice. 7| Concurrent with the action described in the previous step, prepare and send to the former apportionee a letter that * notifies the former apportionee of the requirement that VA obtain confirmation from an official source that * charges were dismissed or overturned, or * the type of conviction was changed, and * encourages the former apportionee to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA. 8| Was confirmation received from an official source within 30 days? * If _yes_ , follow the instructions in Step 5. * If _no_ , go to the next step. 9| * Notify the former apportionee that VA cannot resume the apportionment without confirmation from an official source that * charges were dismissed or overturned, or * the type of conviction was changed. * Clear the pending EP 290. ## 4. Miscellaneous Information That Is Pertinent to the Handling of Notice of Incarceration This topic contains miscellaneous information that is pertinent to the handling of notice of incarceration, including * calculating the 61st day of incarceration * incarceration in and transfer from a foreign penal institution * recoupment of separation benefits during incarceration, and * claimants suspected to be incarcerated but not yet receiving benefits. March 9, 2026 ### VI.iv.1.A.4.a. Calculating the 61st Day of Incarceration When calculating the 61st day of incarceration (or _re-incarceration_ , as discussed in M21-1, Part VI, Subpart iv, 1.A.3.f), start with the first **_full_** day of imprisonment **_following_** conviction.Do **_not_** include in the calculation the number of days the incarcerated individual spent in confinement while awaiting trial, or for examination or treatment, even if the individual is credited for those days as “time served” following conviction.**Reference:** For a discussion of the issue of time served prior to conviction, see [VAOPGCPREC 3-2005](). ### VI.iv.1.A.4.b. Incarceration in and Transfer From a Foreign Penal Institution No award adjustment is necessary when a beneficiary (including an apportionee) or a dependent is incarcerated in a foreign penal institution. Claims processors must, however, determine whether an award adjustment is necessary under the provisions of M21-1, Part VI, Subpart iv, 1.A.1.a-e if the incarcerated individual * is later transferred to a U.S. penal institution to serve the remainder of the sentence, and * was incarcerated in the foreign penal institution for conviction of an offense that is equivalent to a * felony (if the beneficiary receives disability compensation or DIC), or * felony or misdemeanor (if the beneficiary receives pension). **Important:** The effective date of the reduction or discontinuance is the 61st day of incarceration in the U.S. penal institution. ### VI.iv.1.A.4.c. Recoupment of Separation Benefits During Incarceration Use the table below to determine the actions to take when * VA is withholding all or part of a Veteran’s disability compensation to recoup separation benefits (**_including_** disability severance pay), and * the Veteran is incarcerated following conviction for a felony. **Exception:** If VA is withholding disability compensation to recoup voluntary separation pay from an Air Force, Navy, or Marine Corps Veteran, follow the instructions in [M21-1, Part VI, Subpart ii, 2]().| **If VA is withholding …**| **Then, effective the 61 st day of incarceration ...** all of the Veteran’s disability compensation to recoup separation benefits| limit the amount of the **_withholding_** to the rate specified in M21-1, Part VI, Subpart iv, 1.A.2.a until incarceration ends. (The Veteran, in this case, receives no disability compensation while incarcerated.)**Note:** If entitlement exists, VA may apportion to the Veteran’s dependent(s) the **_remaining_** disability compensation that VA does not withhold during incarceration. When incarceration ends, the apportionment ends, as well. some but not all of the Veteran’s disability compensation to recoup separation benefits| * limit the amount of **_disability compensation_** that is payable to the Veteran during the period of incarceration to the rate specified in M21-1, Part VI, Subpart iv, 1.A.2.a, and * suspend the withholding for recoupment of separation benefits until incarceration ends. **Note:** If entitlement exists, VA may apportion the **_remaining_** disability compensation – to include the amount VA was withholding to recoup separation benefits prior to incarceration – to the Veteran’s dependent(s) until incarceration ends. **References:** For more information on * recouping separation benefits, see [M21-1, Part VI, Subpart ii, 2](), and * the actions to take after incarceration ends, see M21-1, Part VI, Subpart iv, 1.A.5. ### VI.iv.1.A.4.d. Claimants Suspected To Be Incarcerated but Not Yet Receiving Benefits Development to verify details of incarceration is required prior to paying benefits when a claim is submitted by an individual who is * evidenced to be incarcerated, but * not yet in receipt of VA benefit payments. _**Note**_ : Evidence of incarceration includes, but is not limited to, * report by the claimant * missed examination notice due to coordination or transport issues with the Veterans Health Administration or Veterans Benefits Administration contract examination providers * BOP match, or * notice from the detaining facility. Follow the steps in the table below if confirmation of incarceration is needed for a claimant who is not yet in receipt of benefits.| **Step**| **Action** 1| Did VA receive notice of incarceration from the claimant? * If _yes_ , go to Step 4. * If _no_ , go to the next step. 2| Is the notice VA received “official,” as discussed in M21-1, Part VI, Subpart iv, 1.A.3.c? * If _yes_ , go to the next step. * If _no_ , go to Step 4. 3| Has VA obtained the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b? * If _yes_ , go to Step 8. * If _no_ , go to the next step. 4| Attempt to corroborate the unofficial notice of incarceration _**and**_ request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b. * If VA requests the information (by letter, for example), go to the next step. * If VA obtains the information without issuing a request (through telephone contact or by accessing a correctional facility’s website, for example), go to Step 8. **Notes:** * Do not establish a separate EP under which to complete the development actions. * Allow entities from which VA requests information concerning an individual’s incarceration 30 days to respond. **Reference:** For a discussion of the available means for requesting/obtaining information from an official source, see M21-1, Part VI, Subpart iv, 1.A.3.e. 5| Did the entity from which VA requested the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d respond within 30 days? * If _yes_ , go to Step 8. * If _no_ , go to the next step. **Note:** If the [_VA Form 21-4193_]() or equivalent, requested from the entity does not contain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d, claims processors are required to attempt to contact the entity by telephone. When telephone contact is unsuccessful, send a follow-up letter requesting the specific missing information and allow 30 days for a response. 6| Send a follow-up request for the information and allow 30 days for a response. 7| Did the entity to which VA sent a follow-up request respond within 30 days? * If _yes_ , go to the next step. * If _no_ , * take no further action in this table, and * pay the full monetary rate due if benefits are granted. 8| Use the table below to determine the actions to take based on the information received concerning the incarceration.| **If information obtained from official sources shows the claimant was incarcerated ...**| **Then ...** * for reasons **_other than_** conviction of a * felony (if the claim is for disability compensation or DIC), or * felony or misdemeanor (if the claim is for pension * ** _less than_** 60 days after conviction for a felony or misdemeanor, or * for an offense that, due to delays in criminal justice processing (pending the assignment of a trial date, for example), has yet to result in conviction or acquittal/dismissal * take no further action regarding the incarceration, and * develop the claim as normal. at least 60 days after conviction for a felony (if the claim is for compensation or DIC)| * continue development of any non-incarceration issues, as necessary, and * if entitlement to compensation or DIC is granted * pay reduced monetary benefits as described in M21-1, Part VI, Subpart iv, 1.A.2.a and e simultaneously with the original award generation, and * notify the beneficiary of the action taken. **Notes:** * Notice of proposed adverse action is **_not_** required prior to paying reduced benefits in this situation. * Payments should be reduced effective the 61st day of incarceration. at least 60 days after conviction for a felony or misdemeanor (if the claim is for pension)| deny entitlement to pension benefits. _**References**_ : For more information on * the amount to which VA must reduce disability compensation and DIC when a Veteran or surviving spouse is incarcerated, see M21-1, Part VI, Subpart iv, 1.A.2.a and e * issuing decision notices, see [M21-1, Part VI, Subpart i, 1.B](), and * calculating the 61st day of incarceration, see M21-1, Part VI, Subpart iv, 1.A.4.a. ## 5. Handling Notice That Incarceration Has Ended This topic contains instructions for handling notice that incarceration has ended, including * acceptable notice that incarceration has ended * determining the date incarceration ended * handling notice that a beneficiary’s incarceration has ended * principles that apply to the resumption or adjustment of a beneficiary’s award after incarceration ends * determining the proper effective date for resuming benefits after incarceration ends, and * handling notice that a former apportionee’s incarceration has ended. April 23, 2026 ### VI.iv.1.A.5.a. Acceptable Notice That Incarceration Has Ended VA does not require beneficiaries to submit a specific form to report that incarceration has ended or to request the resumption or adjustment of the award after incarceration has ended. A beneficiary may report incarceration has ended * in writing * by telephone or e-mail, or * through a VA claims submission service website. **Exception:** A former apportionee whose apportionment VA discontinued because the _former apportionee_ was incarcerated must submit [_VA Form 21-0788_]() in order for VA to determine whether resumption of the apportionment is appropriate._**Important**_ : For pension purposes, a new report of income and net worth is **_not_** required to resume an award when a report that incarceration has ended is received. Claims processors must follow the guidance in M21-1, Part VI, Subpart iv, 1.A.5.d for income information for the resumption of pension awards based on the end of incarceration. ### VI.iv.1.A.5.b. Determining the Date Incarceration Ended For VA purposes, incarceration ends when an individual * is released from prison * is placed under community control (per [VAOPGCPREC 59-1991]()) * begins participation in a work-release program, or * moves to a * halfway house * civil commitment center, or * residential re-entry center (as defined in M21-1, Part VI, Subpart iv, 1.A.1.e). ### VI.iv.1.A.5.c. Handling Notice That a Beneficiary’s Incarceration Has Ended Follow the steps in the table below after receiving notice that incarceration has ended. **Exception:** If the beneficiary is a former apportionee whose apportionment VA discontinued based on the _former apportionee’s_ incarceration, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.f, instead of the steps in the table below.| **Step**| **Action** 1| Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: * _Incarceration - Resumption of Benefits (290INCROB)_ , or * _PMC - Incarceration - Resumption of Benefits (290INCROBPMC)_. **Reference:** For more information on EP codes and controls, see [M21-4, Appendix B](). 2| Did VA receive the notice **_directly_** from one of the one of the official sources referenced in M21-1, Part VI, Subpart iv, 1.A.3.b? * If _yes_ , * disregard the remaining steps in this table, and * follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e. * If _no_ , go to the next step. **Important:** Go to the next step if the _beneficiary_ submitted the notice, even if the notice was accompanied by what appears to be evidence from an official source. 3| Attempt to obtain confirmation that incarceration has ended through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation * is received immediately (on the same day as an attempt(s) is made), * disregard the remaining steps in this table, and * follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e, or * cannot be immediately obtained, go to the next step. 4| Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation that incarceration has ended. 5| Concurrent with the action described in the previous step, prepare and send to the beneficiary a letter that * notifies the beneficiary of the requirement that VA obtain confirmation incarceration has ended from an official source, and * encourages the beneficiary to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA. 6| Was confirmation that incarceration has ended received from an official source within 30 days? * If _yes_ , * disregard the remaining step in this table, and * follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e. * If _no_ , go to the next step. 7| * Notify the beneficiary that VA cannot resume the payment of benefits that VA reduced or discontinued due to incarceration without confirmation from an official source that incarceration has ended. * Clear the pending EP 290. * Disregard the remaining steps in this table. ### VI.iv.1.A.5.d. Principles That Apply to the Resumption or Adjustment of a Beneficiary’s Award After Incarceration Ends Following confirmation from an official source that incarceration has ended, * resume the payment of benefits at the full rate to which the beneficiary is otherwise entitled, using the information in M21-1, Part VI, Subpart iv, 1.A.5.e, to determine the proper effective date, and * remove the _Incarceration_ corporate flash, if present. **Important:** * The instructions in this block do **_not_** apply to a former apportionee whose apportionment VA discontinued because the _former apportionee_ was incarcerated. * Some of the principles and instructions contained in this block apply only to beneficiaries whose disability compensation, DIC, or pension VA did not apportion to eligible family members for the period of the beneficiary’s incarceration. Before taking the actions described in this block, read the instructions in * [M21-1, Part VI, Subpart iv, 2.B.2.i]() if VA apportioned disability compensation to a Veteran’s dependent(s) for the period of incarceration, or * [M21-1, Part VI, Subpart iv, 2.B.1.j and k ]()if VA apportioned pension to a Veteran’s dependent(s) for the period of incarceration.[ ]() Use the table below to determine the actions to take when other principles apply to the resumption or adjustment of a beneficiary’s award at the end of a period of incarceration.| **If VA ...**| **Then ...** * receives notice from a parole board or other official source that indicates incarceration will end on a specific date _in the future_ , and * receives the notice no more than 30 days prior to the date incarceration will end | it is acceptable to resume or adjust the beneficiary’s award _while the beneficiary or dependent is still incarcerated_ to reflect that incarceration will end on the future date.**Important:** Inform the beneficiary in the corresponding decision notice that if incarceration does _not_ end on the specified date, VA will discontinue or reduce benefits without advance notice, effective the same date it took the action described in this block. paid disability compensation in lieu of pension to a Veteran whose benefits were subject to discontinuance due to incarceration| award whichever benefit is more favorable to the Veteran when incarceration ends. was paying the beneficiary Section 306 Pension prior to incarceration| resume payment of the same benefit when incarceration ends, as long as entitlement still exists. **Important:** Do not switch the beneficiary to current-law pension unless the beneficiary specifically elects that benefit. receives acceptable notice that incarceration has ended per M21-1, Part VI, Subpart iv, 1.A.5.a for the resumption of a pension award| * a new report of income and net worth is _**not**_ required prior to resumption for pension purposes, and * updated income found via the SSA INQUIRY command in VBMS _**must**_ be utilized when resuming the beneficiary’s award. ### VI.iv.1.A.5.e. Determining the Proper Effective Date for Resuming Benefits After Incarceration Ends Use the table below to determine the proper effective date for resuming the payment of benefits at the full rate to which a beneficiary is otherwise entitled after incarceration ends. **Important:** * The beneficiary referenced in this block does **_not_** include a former apportionee whose apportionment VA discontinued because the _former apportionee_ was incarcerated. * Apply the exclusion identified in [38 CFR 3.31(c)(3)(v)]() when determining the effective date of **_payment_**. | **If VA received notice incarceration ended …**| **Then the proper effective date for resuming benefits is the date …** within one year of the date incarceration ended| incarceration ended. one year or more after the date incarceration ended| VA received notice incarceration ended. **Exception:** The information provided in the table above is based on the assumption that VA received notice incarceration had ended **_after_** VA had already discontinued or reduced benefits due to incarceration. When **_concurrently_** discontinuing or reducing benefits and taking the actions described in this block (because, for example, VA was unaware of the incarceration until it received notice incarceration had ended), the proper effective date for resuming the payment of benefits is the date incarceration ended, regardless of how long after this date VA received notice. **References:** For more information on the * proper effective date for resuming the apportionment of a former apportionee whose apportionment VA discontinued because the former apportionee was incarcerated, see M21-1, Part VI, Subpart iv, 1.A.5.f, and * difference between the effective date of entitlement and the effective date of payment, see [M21-1, Part VI, Subpart i, 1.A.2.b](). ### VI.iv.1.A.5.f. Handling Notice That a Former Apportionee’s Incarceration Has Ended After discontinuing an apportionment because _the apportionee_ was incarcerated, follow the steps in the table below when VA receives notice incarceration has ended.| **Step**| **Action** 1| Did the former apportionee provide the notice? * If _yes_ , go to the next step. * If _no_ , disregard the remaining steps in this table. No further action is required. **Note:** If incarceration of the former apportionee required VA to remove them as a _dependent_ from a Veteran’s or surviving spouse’s _pension_ award, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.a-e, to determine whether and from which effective date it is appropriate to add the former apportionee back onto the primary beneficiary’s award. 2| Did the former apportionee submit [_VA Form 21-0788_]() with the notice? * If _yes_ , go to the next step. * If _no_ , * treat the notice as a request for an application, and * disregard the remaining steps in this table. **Reference:** For more information on treating correspondence from a potential claimant as a request for an application, see [M21-1, Part II, Subpart iii, 2.G.1](). 3| Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: * _Incarceration Adjustment_(disability compensation), or * _PMC-Incarceration Adjustment_ (DIC or pension). **Reference:** For more information on EP codes and controls, see [M21-4, Appendix B](). 4| Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation * is received immediately (on the same day as an attempt(s) is made), go to the next step, or * cannot be immediately obtained, go to Step 6. 5| * Change the EP 290 to EP 130. * Decide the new claim for an apportionment based on the regulations in effect at the time the claim was received. * Disregard the remaining steps in this table. **Important:** If entitlement to an apportionment exists, the proper effective date is the date VA received the [_VA Form 21-0788_]() referenced in Step 2. Apply the exclusion identified in [38 CFR 3.31(c)(3)(v)]() when determining the effective date of **_payment_**. **_Reference_** _s_** : For more information on * processing claims for an apportionment, see [M21-1, Part VI, Subpart iv, 2.A](), and * the difference between the effective date of _entitlement_ and the effective date of _payment_ , see [M21-1, Part VI, Subpart i, 1.A.2.b](). 6| Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice. 7| Concurrent with the action described in the previous step, prepare and send to the former apportionee a letter that * notifies the former apportionee of the requirement that VA obtain confirmation from an official source that incarceration has ended, and * encourages the former apportionee to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA. 8| Was confirmation received from an official source within 30 days? * If _yes_ , follow the instructions in Step 5. * If _no_ , go to the next step. 9| * Notify the former apportionee that VA cannot resume the apportionment without confirmation from an official source that incarceration has ended. * Clear the pending EP 290.