--- title: "Part X, Subpart ii, Chapter 5, Section C Due Process and Authorization Issues for Clear and Unmistakable Error (CUE)" document: "M-21-1" section: "Part X, Subpart ii, Chapter 5, Section C" canonical: "https://veteranai.co/va-regulations/m21-1/x.ii.5.c-due-process-and-authorization-issues-for-clear-and" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000177973/M21-1-Part-X-Subpart-ii-Chapter-5-Section-C-Due-Process-and-Authorization-Issues-for-Clear-and-Unmistakable-Error-CUE" updated: "2026-09-07T14:37:53.730219Z" --- May 13, 2026 ### X.ii.5.C.1.a. Handling a CUE That, When Corrected, Will Not Benefit the Beneficiary Follow the instructions in the table below after identification of a clear and unmistakable error (CUE) in a rating decision that, when corrected, will _not_ benefit the beneficiary. These include CUEs that necessitate reduction or discontinuation of benefits, such as * assignment of a lower evaluation * severance of service connection (SC), or * correction of an effective date so that a benefit is not payable until a later date than previously assigned (functionally akin to severance of a benefit for a closed period of time). **Important:** Always follow the instructions in the table below when correction of a CUE involves the severance of SC, even if severing SC will not affect the current or a prior combined disability evaluation.**Exception:** Disregard the instructions in the table below and follow the instructions in M21-1, Part X, Subpart ii, 5.C.1.b, if correction of an erroneously assigned effective date or disability evaluation does not result in a reduction in the current or a prior combined disability evaluation.**Example:** Follow the instructions in the table below if * the rating activity erroneously assigned an effective date of May 23, 2015, for a grant of SC for a disability the rating activity evaluated as 30-percent disabling * the Veteran has **_no_** other service-connected (SC) disabilities, and * the proper effective date is October 19, 2015. | **Step**| **Action** 1| Establish end product (EP) 930. **Exception:** Do not establish EP 930 if a rating EP, such as EP 020, is already pending. 2| After the rating activity prepares a proposed rating decision finding CUE, as described in [M21-1, Part X, Subpart ii, 3.A](), and documents the approvals discussed in [M21-1, Part X, Subpart ii, 5.A.3.e](), take the below actions, depending on the EP.Was an EP 930 established in Step 1? * If _yes_ , * clear the EP 930, and * establish EP 600. * If _no_ , * promulgate the rating decision under the pending rating EP, and * establish EP 600. **Note:** Promulgation of a rating decision prepared under EP 930 might be necessary under the following rare circumstance: * the EP 930 was established based on the discovery of **_multiple_** CUEs, and * correction of one or more of the CUEs would not constitute an adverse action. 3| Prepare a notice of proposed adverse action that meets the requirements set forth in [M21-1, Part X, Subpart ii, 3.A.2](). **Important:** * Except when the CUE _**only**_ consists of the assignment of an incorrect effective date, notify the beneficiary that the effective date of the proposed action will be the first day of the month following a 60-day period that begins the date of the notice of the final rating decision. * If the beneficiary is a Veteran, invite a claim for pension, if * basic eligibility for pension exists, and * it appears pension might be the greater or only benefit to which the Veteran might be entitled. **Reference:** For more information on establishing entitlement to pension, see [M21-1, Part IX, Subpart i, 2](). 4| Did the beneficiary request a hearing within 30 days of the date of the notice of proposed adverse action? * If _yes_ , go to the next step **_after_** the Department of Veterans Affairs (VA) * holds the hearing, and * obtains any relevant evidence the beneficiary identified during the hearing (or determines the evidence is unavailable). * If _no_ , go to the next step. 5| Once 65 days have passed since issuance of the notice of proposed adverse action, send the claim to the rating activity for a final rating decision and use the table below to determine the next action.| **If the rating decision ...**| **Then ...** confirms and continues the prior rating decision (approved as necessary as specified in [M21-1, Part X, Subpart ii, 5.A.3]())| * promulgate the rating decision * notify the beneficiary that VA will _not_ take the action it proposed, and * disregard the remaining steps in this table. corrects the error according to the procedures discussed in [M21-1, Part X, Subpart ii, 5.A]() or [B](), whichever are more situationally appropriate| go to the next step. 6| Will promulgation of the rating decision result in an overpayment of benefits that equals or exceeds $40,000? * If _yes_ , * follow the instructions in [M21-1, Part VI, Subpart i, 2.B.3.g](), replacing the term “administrative decision” with “rating decision,” and * go to the next step following receipt of approval from Compensation Service or Pension and Fiduciary Service (P&F). * If _no_ , go to the next step. 7| * Establish EP 960, using the date VA discovered the error as the date of claim, and * promulgate the EP 600 rating decision, ensuring that * any inappropriate overpayment attributable to administrative error is * eliminated via procedures discussed in [M21-1, Part VI, Subpart iii, 2.B.3.e](), or * prevented via one of the procedural exceptions outlined in [M21-1, Part X, Subpart ii, 5.B.2.d](), and * the beneficiary will continue to receive the current rate of payment until the first day of the month following a 60-day period that begins the date of the notice of the final rating decision (if applicable). **Example:** If the date of the notice of the final rating decision is April 22, then * 60 days following that date is June 21, and * the first day of the following month is July 1. _**Reference**_ : For more information on EP 960 usage in relation to the adverse action proposal period, see [M21-1, Part X, Subpart ii, 3.B.4.b](). 8| * Notify the beneficiary of the action taken * clear the EP 960, and * add the _Clear and Unmistakable Error_ flash to the corporate record. 9| Update the CUE Tracker according to the instructions in [M21-1, Part X, Subpart ii, 5.A.3.f](). **References:** For more information on * handling CUEs, see * [38 CFR 3.105(a)](), and * [M21-1, Part X, Subpart ii, 5.A]() * notifying a beneficiary of actions VA has taken, see [M21-1, Part VI, Subpart i, 1.B](), and * addressing multiple issues in a single rating decision, when at least one of the issues involves the correction of a CUE, see M21-1, Part X, Subpart ii, 5.C.1.d. ### X.ii.5.C.1.b. Exception to the Instructions in M21-1, Part X, Subpart ii, 5.C.1.a Follow the instructions in the table below (instead of the instructions in M21-1, Part X, Subpart ii, 5.C.1.a) if * correction of an erroneously assigned effective date or disability evaluation, **_alone_** (with no other rating action), would _not_ benefit the Veteran, and * correction of the error, whether made alone or concurrent with other rating related decisions (as described in M21-1, Part X, Subpart ii, 5.C.1.d), does not result in a reduction in the current or a prior combined disability evaluation. **Examples:** These instructions are for application when, for instance, * correction of a CUE results in a reduction in the disability evaluation assigned to one of multiple compensable, SC disabilities but does not change the current or a prior _combined_ disability evaluation * correction of a CUE, when made concurrent with other rating-related decisions, does not result in a reduction in the current or a prior combined disability evaluation, or * the rating activity erroneously assigned an effective date of May 23, 2015, for SC for a disability it evaluated as 0-percent disabling, when the proper effective date is October 19, 2015. | **Step**| **Action** 1| Establish EP 930. **Exception:** Do not establish EP 930 if a rating EP, such as EP 020, is already pending. 2| The rating activity will * prepare a rating decision that corrects the error * update the _Codesheet_ so that it reads how it should have read had no error been made, and * obtain approval of the rating decision from one of the officials identified in [M21-1, Part X, Subpart ii, 5.A.3.d](). 3| Establish EP 960, using the date VA discovered the error as the date of claim. **Note:** The authorization activity is responsible for establishing the EP. 4| Promulgate the rating decision. 5| Notify the beneficiary of the action taken. **Reference:** For more information on preparing decision notices, see [M21-1, Part VI, Subpart i, 1.B](). 6| Clear the EP 960. 7| Add the _Clear and Unmistakable Error_ flash to the corporate record. 8| Update the CUE Tracker according to the instructions in [M21-1, Part X, Subpart ii, 5.A.3.f](). ### X.ii.5.C.1.c. Action to Take if a Proposed Adverse Action Would Affect a Veteran’s Entitlement to Benefits Under Another VA Program When a proposed adverse action, if taken, would affect a Veteran’s entitlement to benefits under another VA program, send a copy of the notice of proposed adverse action to the appropriate point of contact for that program. **Example:** When proposing to sever SC, send a copy of the notice of proposed adverse action to the local Veteran Readiness and Employment (VR&E) activity if the record shows the Veteran receives training under [38 U.S.C. Chapter 31](). **Exception:** Although correction of a CUE might affect a Veteran’s eligibility for VA health care, **_never_** send a copy of a notice of proposed adverse action to a VA medical center. ### X.ii.5.C.1.d. Addressing Multiple Issues in a Single Rating Decision If multiple issues are pending rating action, and at least one of the issues involves the correction of a CUE, do not prepare a separate rating decision to address the CUE(s). Combine all the issues that are pending rating action into a single decision. **Examples:** Address in a single rating decision * a _proposal_ to correct a CUE and a decision to grant an increased disability evaluation, or * a _final decision_ to correct a CUE and a decision to grant SC. **Note:** In the examples above, choose an effective date for the grant of SC or the increased disability evaluation in accordance with [38 CFR 3.400](). ## 2. Correction of a CUE That Requires the Severance of SC This topic contains information about correcting a CUE that requires the severance of SC, including jurisdiction of the * rating activity over the severance of SC, and * authorization activity over the severance of SC. January 22, 2020 ### X.ii.5.C.2.a. Jurisdiction of the Rating Activity Over the Severance of SC The rating activity may reverse a previous decision to grant SC under [38 CFR 3.105(d)]() if it finds that SC was granted based on a CUE. This means that the original decision had no plausible basis in the law or particular facts of the case. The error must be undebatable and not a mere difference in judgment between decision makers. When the rating activity discovers a CUE that will require the severance of SC to correct, follow the instructions in M21-1, Part X, Subpart ii, 5.C.1. **Reference:** For more information on severing SC, see [M21-1, Part X, Subpart ii, 5.B](). ### X.ii.5.C.2.b. Jurisdiction of the Authorization Activity Over the Severance of SC The authorization activity initiates action to sever SC if a CUE was made in a decision concerning * character of discharge (COD) * line of duty (LOD), or * willful misconduct. Follow the instructions in [M21-1, Part X, Subpart iv, 1.F]() after identifying the type of CUE referenced in the preceding paragraph. Following completion of the administrative decision referenced in [M21-1, Part X, Subpart iv, 1.F.1.a](), follow the instructions in M21-1, Part X, Subpart ii, 5.C.1, even if the severance of SC would not result in a reduction or discontinuance of benefits. **References:** For more information on decisions concerning * the severance of SC, see [M21-1, Part X, Subpart ii, 5.B]() * COD, see [M21-1, Part X, Subpart iv, 1.A]() and [B](), and * LOD and willful misconduct, see [M21-1, Part X, Subpart iv, 1.C]().