--- title: "Part X, Subpart ii, Chapter 3, Section B Adverse Action Proposal Period" document: "M-21-1" section: "Part X, Subpart ii, Chapter 3, Section B" canonical: "https://veteranai.co/va-regulations/m21-1/x.ii.3.b-adverse-action-proposal-period" source: "https://www.knowva.ebenefits.va.gov/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" updated: "2026-09-07T14:37:52.460288Z" --- October 5, 2017 ### X.ii.3.B.1.a. Definition: Adverse Action Proposal Period The **_adverse action proposal period_** is the control period between the date the notice of proposed adverse action is mailed to the beneficiary and the date that the final decision notice is sent. The minimum period for the proposed adverse action is 60 days.**Important:** Legally, the beneficiary has 60 days to respond. However, adverse action should not be taken until at least the 65th day to allow time for evidence to reach the development or authorization activity. ### X.ii.3.B.1.b. Basic Rule: 65-Day Limit Take no adverse action until at least the **_65 th day_** following the date of the notice of proposed adverse action, unless the beneficiary * specifically asks that the award be reduced or suspended to minimize any possible overpayment, or * submits documentary evidence confirming earlier oral information, which is sufficient to justify the proposed adverse action. ### X.ii.3.B.1.c. Calculating the Adverse Action Proposal Period The first day of the adverse action proposal period is the date that the notice of proposed adverse action is mailed to the beneficiary. The date of the letter is the date of the mailing for purposes of computing the time limits for the adverse action proposal period. Use the table below to compute the adverse action proposal period.| **If the adverse action proposal period time limit expires on a ...**| **Then ...** workday| * exclude the first day of the adverse action proposal period, and * include the last day. * Saturday * Sunday, or * holiday | include the next workday following the weekend or holiday. **Reference:** For more information on computing the time limit, see [38 CFR 3.110](). ### X.ii.3.B.1.d. Extending the Adverse Action Proposal Period The adverse action proposal period may be extended for * the development of evidence * a hearing, if the hearing is requested within 30 days following the release of a notice of proposed adverse action * a hearing for a proposal of incompetency, if requested at any time _before_ the Department of Veterans Affairs (VA) makes a final decision on the beneficiary’s competency * remailing of the proposed adverse action request when the notice is returned due to an incorrect address and a current address is subsequently identified, or * to allow time for an administrative action or a rating decision. **Note:** When the adverse action proposal period is extended for one of the above reasons, the original end product (EP) and date of claim continue unchanged while the suspense date is extended.**References:** For more information on * handling a Veteran’s failure to respond to a failure to report rating due to the initial notice being sent to an incorrect address, see [M21-1, Part IV, Subpart ii, 2.B.3.d]() * procedures for handling undeliverable essential mail, see [M21-1, Part II, Subpart i, 2.C.6]() * due process requirements for incompetency determinations, see [M21-1, Part X, Subpart ii, 6.D.3](), and * required action when a response is received to a proposed adverse action, see M21-1, Part X, Subpart ii, 3.B.2. ## 2. Responding to the Beneficiary This topic contains information on responding to the beneficiary, including * receipt of insufficient evidence or no response within 60 days * responding to premature decision review requests * evidence received in 60 days requiring further development * requests by the beneficiary for VA to obtain evidence * evidence received * supporting the proposed adverse action * that is favorable to the claimant, and * in 60 days that was not reviewed prior to the final action, and * request for implementation of adverse action. December 4, 2025 ### X.ii.3.B.2.a. Receipt of Insufficient Evidence or No Response Within 60 Days Follow the steps in the table below if the beneficiary either fails to respond within the 60-day period, or submits insufficient evidence to justify a change in the proposed action.| **Step**| **Action** 1| Is a rating decision needed because the proposed adverse action was initiated with a rating decision? * If _yes_ , route the EP to the rating activity at the end of the due process period. The rating activity will make a decision and then route the EP to the authorization activity for processing. * If _no,_ route the EP for authorization. The authorization activity will reduce, suspend, or terminate benefits using the appropriate effective date provisions. **Reference:** For more information on reductions and discontinuances, see [38 CFR 3.500–3.505](). 2| Notify the beneficiary of the final decision. ### X.ii.3.B.2.b. Responding to Premature Decision Review Requests If the beneficiary requests decision review of a proposed adverse action, send the _Decision Review Against Proposal_ notice and cancel any EP that was established for the decision review._**Reference**_ : For more information about creating the letter in the Veterans Benefits Management System (VBMS), see the _VBMS Core User Guide_. ### X.ii.3.B.2.c. Evidence Received in 60 Days Requiring Further Development If a beneficiary submits evidence that requires further development * continue payments * begin to develop and evaluate additional evidence * advance the pending issue suspense date for the proposed adverse action period for development of the evidence, and * hold all the material obtained until * reasonable efforts to obtain additional evidence have been exhausted, or * a final decision can be made. **Note:** Lay statements, medical records, or other records that are material to the issue in which VA is proposing adverse action may be insufficient to justify a change in the proposed adverse action; however, this evidence may still provide sufficient information to warrant further development such as obtaining records or scheduling an examination.**Exception:** If the results of the development clearly indicate continuing entitlement to current benefits or new entitlement to greater benefits, notify the beneficiary and take appropriate award action.**Reference:** For more information on obtaining evidence after a proposed adverse action, see M21-1, Part X, Subpart ii, 3.B.2.d and e. ### X.ii.3.B.2.d. Requests by the Beneficiary for VA to Obtain Evidence Develop to request all relevant records identified by the beneficiary or representative during the 60-day response period. Do not take any action specified in the notice of proposed adverse action until VA has met its duty to assist.**Exception:** If the beneficiary submits a request for VA to obtain records that will **_not_** impact the decision, then request the evidence, but do not wait until VA receives the records to take the action specified in the notice of proposed adverse action.**Reference:** For more information on relevant records and reasonable efforts in obtaining records, see * [M21-1, Part III, Subpart i, 2.C]() and [E](), and * [38 CFR 3.159(c)](). ### X.ii.3.B.2.e. Evidence Received Supporting the Proposed Adverse Action If the beneficiary sends documentary evidence that supports the proposed adverse action * make the adjustment, and * send the beneficiary a final decision notice of the implemented adverse action. ### X.ii.3.B.2.f. Evidence Received That Is Favorable to the Claimant Once a notice of proposed adverse action is sent, if new evidence establishes that the adverse action should not be taken, then * take appropriate action to amend or reverse the proposed action, and * send the beneficiary a final decision notice. **Reference:** For more information on preparing a new rating decision following receipt of additional evidence that favorably impacts the outcome, see [M21-1, Part X, Subpart ii, 3.D.1.g](). ### X.ii.3.B.2.g. Evidence Received in 60 Days That Was Not Reviewed Prior to the Final Action If evidence received on or before the 60th day was not reviewed before the adverse action was taken, review the adverse action as described in the table below.| **If ...**| **Then ...** the additional evidence does not change the adverse decision| * confirm and continue the decision, and * fully advise the beneficiary of this decision and provide procedural and review rights. the additional evidence changes the adverse decision| prepare a revised rating decision and/or decision notice in accordance with the instructions in [M21-1, Part X, Subpart ii, 3.D.1.g](). further development is needed| * restore the beneficiary’s payments until development is completed and a final decision made * send a letter explaining the basis for resumed payments, and * include a warning that adverse action may be appropriate if the evidence does not support continued payments. ### X.ii.3.B.2.h. Requests for Implementation of Adverse Action If the beneficiary submits a written statement or other evidence or contacts VA by telephone in response to a notice of proposed adverse action confirming the validity of the evidence already of record and specifically asking that the proposed adverse action be implemented * take adverse rating and/or award action, and * send the final decision notice. **Important:** Be extremely careful to ensure that the beneficiary is asking for final implementation of the adverse decision and not merely trying to minimize any overpayment during the 60-day period. If there is any uncertainty as to the beneficiary’s intentions, ask for clarification (use the telephone when appropriate). If clarification is not received, wait until the expiration of the adverse action proposal period before acting. **Example:** The Veteran responds to a notice of proposed adverse action by sending a statement that says, “Yes, my wife Ann died on March 9, 2000, but I didn’t know I had to report it. Please tell me how much I have to pay back, and don’t pay me more than I should be getting.” Since the Veteran is specifically requesting the adverse action, adjust the award and send a final decision notice.**References:** For more information on * sending contemporaneous notice, see [M21-1, Part X, Subpart ii, 3.C.1]() * decision notice requirements, see [M21-1, Part VI, Subpart i, 1.B.1.b](), and * contemporaneous notice related to information received by telephone, see [M21-1, Part X, Subpart ii, 3.C.2](). ## 3. Hearings Requested in Response to a Proposed Adverse Action This topic contains information about hearings requested in response to a proposed adverse action, including * determining the time limit for adverse action hearing requests * premature final action taken when a hearing was timely requested * processing an adverse action hearing request * failure to appear for an adverse action hearing * rescheduling adverse action hearings, and * regional office (RO) action upon cancellation of a hearing. May 7, 2025 ### X.ii.3.B.3.a. Determining the Time Limit for Adverse Action Hearing Requests As stated in [38 CFR 3.105(i)(1)](), payments continue at their current rate if a beneficiary requests a hearing within 30 days of the date the notice of proposed adverse action is sent. If the 30-day time limit expires on a Saturday, Sunday, or holiday, include the next succeeding workday in the computation.**Exception:** For hearings requested in connection with proposed incompetency, a hearing requested at any time prior to the final rating must be held before final rating action is taken.**References:** For more information on * extending the adverse action proposal period, see M21-1, Part X, Subpart ii, 3.B.1.d, and * proposed incompetency, see * [38 CFR 3.353(e)](), and * [M21-1, Part X, Subpart ii, 6.A.3.a](). ### X.ii.3.B.3.b. Premature Final Action Taken When a Hearing was Timely Requested If it is discovered that the beneficiary or the beneficiary’s representative requested a hearing within the applicable time period and final action was prematurely taken, then * restore the beneficiary’s payments * ensure the hearing is scheduled, and * notify the beneficiary and the beneficiary’s representative that * the action was in error, and * the proposed adverse action period will remain in effect until after the hearing is completed. **References:** For more information on the * time limit for hearing requests, see M21-1, Part X, Subpart ii, 3.B.3.a, and * scheduling a hearing, see [M21-1, Part X, Subpart v, 1.D.3](). ### X.ii.3.B.3.c. Processing an Adverse Action Hearing Request Follow the steps in the table below when VA receives a request for a hearing after a notice of proposed adverse action. | **If the hearing is requested ...**| **Then ...** * within 30 days of the notice of proposed adverse action, or * during the incompetency proposal period * follow the procedures at [M21-1, Part II, Subpart iii, 3.A.2.a](), to establish control for the hearing request * schedule and hold the hearing * mark the tracked item as received, and * make a final decision. **Important:** If a hearing is requested within the applicable time limit as discussed in M21-1, Part X, Subpart ii, 3.B.3.a, do not take final action on the proposed adverse action until * the hearing is properly completed, or * the right to a hearing is otherwise discharged (such as due to cancellation or failure to appear without good cause). more than 30 days after a notice of proposed adverse action but while the EP remains pending| * follow the procedures at [M21-1, Part II, Subpart iii, 3.A.2.a](), to establish control for the hearing request under the pending EP * make a final decision under the pending EP * pend the EP for continuing control for the hearing request (if the hearing has not yet been performed) * schedule and hold the hearing * mark the tracked item as received, and * make a new decision under the pending EP based on the results of the hearing, if needed. **Important:** If development is underway based on evidence submitted by the beneficiary, complete the development before making the final decision. _**Note**_ : A hearing must be provided __**unless**__ the claimant or representative withdraws the request, regardless of the outcome of the final decision. **References:** For more information on * where to hold a hearing, see [M21-1, Part X, Subpart v, 1.D.1.m]() * who must make the decision on a hearing, see [M21-1, Part X, Subpart v, 1.D.1.j]() * a claimant's request to cancel or reschedule a hearing and good cause for failure to report or delays, see M21-1, Part X, Subpart ii, 3.B.3.d and e * timely scheduling of hearings, see [M21-1, Part X, Subpart v, 1.D.3.c]() * EP control for requests to reschedule hearings when a claimant has submitted evidence showing good cause for a prior failure to report for a scheduled hearing, see M21-1, Part X, Subpart ii, 3.B.3.e * EPs, including control for hearings requested with income verification match and individual unemployability proposed adverse actions, see [M21-4, Appendix B](), and * regulatory provisions on hearings, see * [38 CFR 3.103(d)](), and * [38 CFR 3.105(i)(1)](). ### X.ii.3.B.3.d. Failure to Appear for an Adverse Action Hearing Due process requires only that a beneficiary be afforded a reasonable opportunity for a personal hearing.If the beneficiary fails to appear for a scheduled hearing without good cause, and the 60-day adverse action proposal period has expired * make a decision based on the evidence of record * advise the beneficiary of the decision, and * advise the beneficiary that if a new hearing is still desired * to contact VA to schedule a hearing, and * the action just completed will be reconsidered in light of any evidence presented at that hearing. **References:** For more information on * rescheduling hearings, see * [38 CFR 3.105(i)](), and * M21-1, Part X, Subpart ii, 3.B.3.e, and * attendance at hearings, see [M21-1, Part X, Subpart v, 1.D.1.q](). ### X.ii.3.B.3.e. Rescheduling Adverse Action Hearings If the beneficiary failed to appear for a hearing due to good cause as discussed in [38 CFR 3.105(i)](), * schedule a new hearing on a priority basis * continue EP control for the issue subject to the hearing request * follow the procedures at [M21-1, Part II, Subpart iii, 3.A.2.a](), to establish a * special issue indicator * tracked item, and * note, and * continue payments, if the request for hearing was received within the appropriate time limit. **Example:** A notice of proposed adverse action was sent to the Veteran for reduction of the evaluation of a service-connected (SC) disability due to improvement. The Veteran requested a hearing within 30 days of the notice. The Veteran failed to report for the hearing, but prior to VA rendering the final determination, notified VA that the absence was due to an unexpected hospitalization from which the Veteran has since been released. Since there was good cause for failure to report for the hearing, continue EP control for consideration of the reduced SC evaluation and reschedule the hearing on a priority basis. **Note:** If the beneficiary does not communicate or demonstrate good cause for failure to appear for the hearing until _after_ notification of the final adverse action has been sent, such communication must be accompanied by a decision review election.**References:** For more information on * time limits for requesting a hearing, see M21-1, Part X, Subpart ii, 3.B.3.a * good cause and failure to appear for a hearing, see [M21-1, Part X, Subpart v, 1.D.1.q]() * scheduling hearings, see [M21-1, Part X, Subpart v, 1.D.3](), and * EPs for hearing requests, see [M21-4, Appendix B](). ### X.ii.3.B.3.f. RO Action Upon Cancellation of a Hearing Use the table below to determine the action to take when a claimant requests cancellation of a hearing requested in response to a notice of proposed adverse action. | **If the hearing was requested ...**| **Then ...** * within 30 days of the notice of proposed adverse action, or * during the incompetency proposal period * take appropriate regional office (RO) action to cancel the hearing * close the tracked item previously established for the hearing request, and * make a final decision at the expiration of the due process period, noting the cancellation of the requested hearing in the evidence listing for the rating decision. more than 30 days after a notice of proposed adverse action| * take appropriate RO action to cancel the hearing * close the tracked item previously established for the hearing request, and * use the table below to determine the appropriate method to provide confirmation of the cancellation of the requested hearing to the claimant. | **If a final decision has ...**| **Then ...** not been made| make a final decision at the expiration of the period for notice of proposed adverse action, reflecting the cancellation of the requested hearing in the evidence listing for the rating decision. been made| * clear the controlling EP, and * send the claimant a letter confirming cancellation of the hearing. **Reference:** For more information on listing evidence in the rating decision, see [M21-1, Part V, Subpart iv, 1.A.4.c](). ## 4. Final Actions Related to Adverse Action Proposals This topic contains information on final actions related to adverse action proposals, including * procedure following the adverse action proposal period, and * clearing of EPs at end of the adverse action proposal period. July 27, 2023 ### X.ii.3.B.4.a. Procedure Following the Adverse Action Proposal Period Claims processors must follow the steps in the table below at the end of the adverse action proposal period.| **Step**| **Action** 1| Compose the final decision notice with all of the required elements and language._**Note**_ : When completing the final decision notice, do not re-summarize any evidence referenced in the notice of proposed adverse action.**References:** For more information on * the required elements of the final decision notice, see [38 CFR 3.103(f)]() * decision notices, see [M21-1, Part VI, Subpart i, 1.B](), and * when to provide a summary of evidence in a decision notice, see [M21-1, Part VI, Subpart i, 1.B.1.f](). 2| Send the final decision notice to the beneficiary and the beneficiary's representative, if any. **Reference:** For more information on determining who receives a notice, see [M21-1, Part I, Subpart i, 1.B.1.c](). 3| Clear any applicable EPs that were pending during the adverse action proposal period. _**Reference**_ : For more information on EPs relevant to the adverse action proposal period, see * [M21-4, Appendix B](), and * M21-1, Part X, Subpart ii, 3.B.4.b. ### X.ii.3.B.4.b. Clearing of EPs at End of the Adverse Action Proposal Period Claims processors must ensure all relevant EPs are cleared at the end of the adverse action proposal period, to include * EP 600, and * EP 960. **Note:** In cases where the notice of proposed adverse action is related to an administrative error, the EP 960 must be established and cleared at the time the claims processor is taking final action. **References:** For more information on * EP 960, see [M21-4, Appendix B]() * correcting the erroneous payment of benefits to the beneficiary, see [M21-1, Part VI, Subpart i, 2.B](), and * due process and authorization issues for clear and unmistakable error, see [M21-1, Part X, Subpart ii, 5.C]().