--- title: "Part X, Subpart ii, Chapter 5, Section B Severance of Service Connection (SC)" document: "M-21-1" section: "Part X, Subpart ii, Chapter 5, Section B" canonical: "https://veteranai.co/va-regulations/m21-1/x.ii.5.b-severance-of-service-connection-sc" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177972/M21-1-Part-X-Subpart-ii-Chapter-5-Section-B-Severance-of-Service-Connection-SC" updated: "2026-09-06T14:37:32.258677Z" --- May 13, 2026 ### X.ii.5.B.1.a. Applying 38 CFR 3.105(a) and 38 CFR 3.105(d) The concept of severance of final and binding service connection (SC) determinations derives from [38 U.S.C. 5109A]() and is implemented in [38 CFR 3.105](). * Pursuant to [38 CFR 3.105(a)](), final and binding determinations can be reversed or amended where evidence establishes a clear and unmistakable error (CUE). * Under [38 CFR 3.105(d)](), subject to limitations in [38 CFR 3.114]() and [38 CFR 3.957](), SC cannot be severed unless evidence shows a CUE exists in the prior determination. This includes all evidence of record at the time of the previous decision _and_ evidence received after that time. **Exception:** When the Department of Veterans Affairs (VA) determines that there is no legal entitlement for a previous award of VA benefits (when SC is clearly illegal), the Department of Veterans Affairs (VA) is not required to establish that the original decision was clearly and unmistakably erroneous per [38 CFR 3.105(d)]() in order to sever SC.**Important:** The severance standards of [38 CFR 3.105(d)]() require VA to show that SC cannot be granted or maintained under any theory of entitlement, whether raised by the claimant or reasonably raised by the record, in order for severance of SC to be proper. **References:** For more information on * the ten-year protection even when SC is erroneous, see [M21-1, Part X, Subpart ii, 1.B.2]() * due process to sever SC when legal entitlement does not exist, see M21-1, Part X, Subpart ii, 5.B.1.c * evidence developed subsequent to an award of SC, see * [_Stallworth v. Nicholson_](), 20 Vet.App. 482 (2006), and * [_Daniels v. Gober_]() , 10 Vet.App. 474 (1997) * severance of SC when there is no legal entitlement for a previous award of VA benefits, see [_Allen and Key v. Nicholson_](), 21 Vet. App. 54 (2007), and * addressing alternative theories of entitlement before severing SC, including whether SC could be maintained based on an unresolved theory of SC, see [_McCauley v. McDonough_](), 37 Vet.App. 188 (2024). ### X.ii.5.B.1.b. Severing SC Due to Diagnosis Change A change in diagnosis may be accepted as a basis for severance if there is certification that the diagnosis on which SC was based was clearly erroneous under [38 CFR 3.105(d)](). ### X.ii.5.B.1.c. Severance of Clearly Illegal Grants of SC When an award of SC was clearly illegal (when there is no legal entitlement) * provide due process under [38 CFR 3.103]() * propose severance, and * notify the claimant that there was no legal entitlement to the prior grant of benefits as SC was clearly illegal, and * do not apply the CUE provisions of [38 CFR 3.105(d)](). **Example:** Sever SC as clearly illegal when the beneficiary had no qualifying active duty to establish basic eligibility to VA benefits.**Reference:** For more information on lack of legal entitlement, see * _[Allen and Key v. Nicholson]()_ , 21 Vet.App. 54 (2007), and * [ _Valiao v. Principi_](), 17 Vet.App. 229 (2003). ## 2. Handling Severance of SC This topic contains procedures for handling severance of SC, such as * the process for severance of SC * handling multiple issues in cases involving severance of SC * preparing the final rating decision _Narrative_ in cases involving severance of SC * preparing the final rating decision _Codesheet_ in cases involving severance of SC * handling severance proposals upon the Veteran’s death, and * severing SC for a psychosis. May 13, 2026 ### X.ii.5.B.2.a. Process for Severance of SC The table below describes the process to sever SC.| **Stage**| **Who Is Responsible**| **Description** 1| Rating Activity| * Prepares a rating decision proposing severance following the guidance in [M21-1, Part X, Subpart ii, 5.A](), and [M21-1, Part X, Subpart ii, 3.D](), and * uses the Draft Rating Approval (DRA) functionality within the Veterans Benefits Management System - Rating (VBMS-R) to refer the rating to a designated reviewer for approval or disapproval under [38 CFR 3.105(a)](). 2| Designated Reviewer| Is the rating approved? * If _yes_ , * approves the rating via DRA functionality, and * returns the rating to the rating activity for finalization. * If _no_ , * documents any disagreement via DRA functionality, and * returns the rating to the rating activity for correction. 3| Rating Activity| Was the rating approved by the designated reviewer? * If _yes_ , finalizes the approved rating. * If _no_ , * revises the rating as required, to reflect the current evaluation of all service-connected (SC) disabilities, disposing of all other matters at issue, and * returns the rating to the designated reviewer (Stage 2). 4| Authorization Activity| Processes the rating decision and adds the _Clear and Unmistakable Error_ corporate flash as applicable in VBMS. _**References**_ : For more information on * preparing a proposed rating decision, see [M21-1, Part X, Subpart ii, 3.D.1]() * approval of ratings prepared under [38 CFR 3.105(a)](), see [M21-1, Part X, Subpart ii, 5.A.3.d]() * requesting and documenting approval of rating decisions, see the * [ _DRA Job Aid_](), and * _VBMS Rating User Guide_ , and * authorization action involving a CUE that, when corrected, will not benefit the beneficiary, see [M21-1, Part X, Subpart ii, 5.C](). ### X.ii.5.B.2.b. Handling Multiple Issues in Cases Involving Severance of SC If a decision involves both severance and reduced evaluations, prepare a single rating decision identifying both issues.Notify the Veteran concerning both the reduction and the proposed severance.**Reference:** For more information on notifying the Veteran of severance of SC, see [M21-1, Part X, Subpart ii, 5.C](). ### X.ii.5.B.2.c. Preparing the Final Rating Decision Narrative in Cases Involving Severance of SC A long-form rating decision _Narrative_ is required in final severance decisions. As noted in [M21-1, Part X, Subpart ii, 3.D.1.b](), if the facts contained in the proposed rating decision were sufficiently discussed and no additional evidence was received, they do not need to be repeated in the final rating decision _Narrative_.While regulations require that the claimant be notified of the effective dates of entitlement and payment adjustments in running awards, there is no requirement that the rating decision _Narrative_ identify or discuss the effective date for final severance of an SC disability.This guidance differs from the requirements for * _proposed_ rating decisions, and * final decision _notices_. **Example:** A rating decision proposed to sever SC for migraines based on CUE. The Veteran did not submit any additional evidence, and the due process period expired. In the final rating decision _Narrative_ , the DECISION field reads: _Service connection for migraines is severed_. Neither the date of the erroneous grant nor the date of the future reduction in payment should be * reflected in the decisional issue, or * cited/discussed as the effective date of the final severance. **Notes:** * If VBMS-R prompts for entry of an effective date when completing a final severance decision, manually delete the effective date from the DECISION field in the ISSUE MANAGEMENT tab. * When completing a rating decision addressing final severance of SC, the _Narrative_ must address any findings that were favorable to the claimant as detailed in [M21-1, Part V, Subpart iv, 1.A.5.f](). * Ensure that the final rating decision discontinues any and all previously established ancillary benefits derived from the Veteran’s entitlement to SC for the erroneously granted disability (provided the Veteran was properly notified in the proposed rating decision). If the proposed rating decision failed to propose the discontinuance, follow the procedures in [M21-1, Part X, Subpart ii, 3.D](). **References:** For more information on * long-form rating narratives, see [M21-1, Part V, Subpart iv, 1.A.7]() * requirements for proposed rating decisions related to severance, see * [38 CFR 3.103]() * [38 CFR 3.105(d)](), and * [M21-1, Part X, Subpart ii, 3.D.1]() * how to handle evidence received within the adverse action proposal period, see * [M21-1, Part X, Subpart ii, 3.B.2](), and * [M21-1, Park X, Subpart ii, 3.D.1.g]() * required elements of a final decision notice, see * [38 CFR 3.103(f)](), and * [M21-1, Part VI, Subpart i, 1.B.1.b]() * preparing and sending a final rating decision, see [M21-1, Part X, Subpart ii, 3.D.1.h](), and * instructions for generating a final severance rating, see the _VBMS Rating User Guide_. ### X.ii.5.B.2.d. Preparing the Final Rating Decision Codesheet in Cases Involving Severance of SC Generally, and with only limited, noted exceptions, when severing SC due to CUE, update the _Codesheet_ so that it reads how it should have read had no error been made. * Include in the combined SC evaluation only those evaluations for disabilities that remain SC. * The severed condition should be shown on the _Codesheet_ as an issue for which SC has been denied (if that is the determination that would have been made had the error resulting in severance not occurred). * The master record may require manual adjustment to * reflect the severed condition’s classification as non-service-connected, and * suppress/remove the entry in the TO DATE field associated with the condition’s severance. These measures will ensure that no retroactive increase or benefit attributable to the severed disability will be awarded after basic entitlement is terminated.**Exceptions:** Use the table below to properly update the _Codesheet_ when the * circumstances of the case involve the specific conditions identified in the table, and * resultant overpayment will be attributed to administrative error. | **If the necessary rating action involves a ...**| **Then ...** * _complete _severance of SC resulting in the discontinuation of all compensation (meaning no SC disabilities or only noncompensable SC disabilities remain), **_or_** * change in effective date of initial entitlement to SC to a _later_ date (meaning an existing original award line would no longer have a corresponding rating effective date) | for each impacted issue, apply the _Clear and Unmistakable Error_ special issue in VBMS-R with the _Non-Recoupable_ special issue basis to generate a _Codesheet_ that * prevents recoupment of any resultant overpayment, and * continues payment at the existing rate until the appropriate effective date specified in [38 CFR 3.105(d)](). **Note:** If the authorization activity subsequently disapproves a formal determination of administrative error, the rating activity must process a correction to change the special issue basis from _Non-Recoupable_ to _Recoupable_. change in the effective date of initial entitlement to SC to a later date _along with_ a corresponding or subsequent reduction in overall combined evaluation| follow the interim procedures provided in the document titled _[SOP for CUE Severance Award Processing]()_. _**Note**_ : A change in effective date of initial entitlement to SC to a later date is not technically severance of SC, but it is functionally equivalent to severing SC for a finite period of time. Accordingly, the same types of _Codesheet_ procedures are applicable for these scenarios to ensure accurate award processing. **References:** For more information on * the effective date of the change in compensation following the severance of SC of one or more disabilities, see * [38 CFR 3.105(d)]() * [38 CFR 3.500(r)](), and * [M21-1, Part X, Subpart ii, 5.C](), and * instructions for generating a final severance rating, see the _VBMS Rating User Guide_. ### X.ii.5.B.2.e. Handling Severance Proposals Upon the Veteran’s Death Upon the Veteran’s death, discontinue all action on severance proposals not finalized, unless the severance would affect death benefits.Proposals initiated but not finalized prior to notice of the Veteran’s death will be reconsidered upon receipt of a claim for death benefits. Take into consideration all available new evidence, such as medical reports of last illness, death certificate, and autopsy report, if indicated.When a claim for death benefits is received * make a proposal to sever SC, and * notify the death benefits claimant of the severance proposal and provide 60 days to submit further evidence, even though the Veteran was given a prior 60-day notice. ### X.ii.5.B.2.f. Severing SC for a Psychosis If SC is severed for a psychosis, make a determination of entitlement under [38 U.S.C. 1702]()._**Reference**_ : For more information on ratings of SC for treatment purposes under [38 U.S.C. 1702](), see [M21-1, Part XIII, Subpart i, 3.C](). ## 3. Handling Increased Evaluation or Secondary SC Associated With Severance Decisions This topic contains guidance on handling decisions for increased evaluation and/or secondary SC with a co-existing severance determination, such as handling * increase and secondary claims for conditions found to require severance, and * increases in compensation in cases involving severance of SC. May 13, 2026 ### X.ii.5.B.3.a. Handling Increase and Secondary Claims for Conditions Found to Require Severance If review of a claim and the associated evidentiary record reveals that an SC disability was granted in error, so as to require severance under [38 CFR 3.105(d)](), do **_not_** award (for any period of entitlement, and regardless of whether the evidence otherwise supports a favorable decision) * an increase in the evaluation of the erroneously granted disability * secondary SC for a disability that is the result of, or would not have occurred but for, the erroneously granted disability, or * ancillary benefits derived from the Veteran’s entitlement to SC for the erroneously granted disability. Awarding additional benefits premised on a grant of SC that was fundamentally erroneous at its origin only serves to compound the nature of the underlying error. Under these circumstances, follow the steps in the table below to arrive at a decision.| **Step**| **Action** 1| Ensure that existing development actions are sufficient to support a decision on the issue of increased evaluation, secondary SC, or ancillary benefit entitlement, irrespective of the proposed severance’s final outcome. 2| * Prepare a rating decision proposing severance of SC in accordance with M21-1, Part X, Subpart ii, 5.B.2.a, and * defer a decision on entitlement to * increased evaluation, pending the proposed severance’s final outcome * secondary SC, or * ancillary benefit entitlement. **Note:** Ensure that the rating decision proposing severance of SC also proposes discontinuance of any and all previously established ancillary benefits derived from the Veteran’s entitlement to SC for the erroneously granted disability. 3| Once the 60-day proposal period has expired, does a review of the evidence indicate that the proposed severance of SC is warranted? * If _yes_ , then prepare a final rating decision that * severs SC, and * denies entitlement to increased evaluation, secondary SC, or ancillary benefit entitlement. * If _no_ , then prepare a final rating decision that * communicates reconsideration of the previous proposal to sever, and * addresses entitlement to increased evaluation, secondary SC, or ancillary benefit entitlement, as substantiated by the facts of record. ### X.ii.5.B.3.b. Handling Increases in Compensation in Cases Involving Severance of SC Award increased compensation if severance of SC is proposed for one or more disabilities but one or more other disabilities have increased in severity.Notify the Veteran concerning * the proposed severance action * the increased evaluation, and * any reduction that will result from the severance action.