--- title: "Part X, Subpart v, Chapter 2, Section B Award Adjustments Necessitated by a Veteran's Return to and Discharge From Active Duty" document: "M-21-1" section: "Part X, Subpart v, Chapter 2, Section B" canonical: "https://veteranai.co/va-regulations/m21-1/x.v.2.b-award-adjustments-necessitated-by-a-veterans-return-to-and" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000178003/M21-1-Part-X-Subpart-v-Chapter-2-Section-B-Award-Adjustments-Necessitated-by-a-Veterans-Return-to-and-Discharge-From-Active-Duty" updated: "2026-09-07T14:37:59.317141Z" --- August 27, 2025 ### X.v.2.B.1.a. Relinquishment of Benefits Upon Return to Active Duty Under [38 U.S.C. 5304(c)](), Veterans receiving Department of Veterans Affairs (VA) disability compensation or pension must relinquish these benefits when they return to active duty. This includes members of the National Guard who are activated under [10 U.S.C.]() or who serve full time in the Active Guard Reserve under [32 U.S.C.](). **Notes:** * This restriction does **_not_** apply to recipients of Dependency and Indemnity Compensation (DIC). For example, a surviving spouse may concurrently receive active service pay and DIC. * The title of an activation, be it Title 10, 14, or 32, is not relevant for the purpose of discontinuing compensation due to return to active duty. However, to determine if a period of duty is considered _active military, naval, or air service_ under [38 U.S.C. 101(22)]() for the purposes of establishing service connection (SC), see [M21-1, Part III, Subpart i, 1.A](). **References:** For more information on * the prohibition against concurrent receipt of active service pay and VA compensation or pension, see * [38 CFR 3.654](), and * [38 CFR 3.700(a)(1)](), and * full-time service in the * Reserve, see [M21-1, Part III, Subpart i, 1.A.3.b](), and * National Guard, see [M21-1, Part III, Subpart i, 1.A.4.b and c](). ### X.v.2.B.1.b. Handling Notice That a Veteran Has Returned to Active Duty Follow the instructions in the table below upon receipt of notice that a Veteran has returned to active duty. | **If ...**| **Then ...** the _Veteran_ provided written or telephonic notification or other credible evidence to establish the date of return to active duty| * discontinue benefits according to the instructions in M21-1, Part X, Subpart v, 2.B.1.c, using the date the Veteran provided, and * in the decision notice, notify the Veteran that VA will reinstate benefits effective the day following release from active duty if the Veteran submits a request for reinstatement within one year of that date. VA received notice the Veteran returned to active duty from a source _other than_ the Veteran| follow the instructions in the table below. | **Step**| **Action** 1| Determine the date the Veteran returned to active duty by using the * Defense Personnel Records Information Retrieval System (DPRIS), or * Veterans Information Solution (VIS). **Important:** * If the Veteran’s period of active duty started on or after October 1, 2020, claims processors may use the information shown in the rows below the heading _Guard/Reserve Active Service (GRAS)_ in VIS that reflect non-training periods (identifiable by the presence of _No_ in the column titled TRAINING) when discontinuing a Veteran’s benefits based on the return to active duty. If a discrepancy exists between the data VIS displays and any of the following, assume the data in VIS is **incorrect:** * unvoided and uncorrected _DD Form 214, Certificate of Uniformed Service_ * _DD Form 214_ that is corrected by a _DD Form 215, Correction to DD Form 214, Certificate of Uniformed Service_ , and/or * orders that were not rescinded or revoked. * Prior to October 1, 2020 (the start of fiscal year 2021), the non-training periods shown in VIS were included in the number of training days printed on _VA Forms 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances_ , when the Veteran was paid out of National Guard/Reserve component funds. * Data displayed under the heading _Active Duty Service Periods_ in VIS is generally accurate but may be superseded by certain documentary evidence, as explained in [M21-1, Part III, Subpart i, 1.B.3.c](). 2| Does VIS or DPRIS confirm the Veteran had an unreported period of active duty? * If _yes_ , go to the next step. * If _no_ , * annotate the source document to reflect that no action is necessary because there is no unreported period of active duty * clear an end product (EP) 290, and * disregard the remaining steps in this table. 3| Clear an EP 290 unless this EP was previously cleared for the period(s) of active duty under review. 4| * Establish EP 600 - _Return to Active Duty_ , and * add * a contention(s) of _Return to Active Duty_ followed by the begin date and end date (if known) * the _Potential Under/Overpayment_ special issue, and * the _Return to Active Duty Proposal_ tracked item. **Notes:** * When simultaneously processing multiple non-sequential return to active duty dates * consolidate the active duty dates that require action under one EP 600, and * cancel any EP 600 that was consolidated. * If the Veteran is in receipt of Veterans Pension benefits, the contention __ must include the _Pension_ contention classification. 5| Notify the Veteran that VA proposes to discontinue benefits effective the date(s) the Veteran returned to active duty. In the notice, ask the Veteran to submit the following with regard to the time period(s) in question: * a copy of the orders or separation document(s), or * other evidence of the duty performed. **Notes:** * Follow the instructions in the _Veterans Benefits Management System-Awards (VBMS-A) User Guide_ to generate the notice of proposed adverse action. * Attach _[VA Form 21-0789,_Your Rights to Representation and a Hearing_]()_ , to the notice before sending it to the Veteran. **Reference:** For more information on preparing a notice of proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A](). 6| After the Veteran responds or has had 65 days to respond to the notice, * take the proposed action unless the Veteran * requested a hearing within 30 days of the notice, or * submits evidence showing VA should not take the proposed action, and * disregard the remaining steps in this table. In the decision notice, if the latest of the end dates is unknown, then inform the Veteran that VA will reinstate benefits effective the day following release from active duty if the Veteran submits a request for reinstatement within one year of that date. **Note:** Follow the instructions in [M21-1, Part X, Subpart ii, 3.B.3](), if a Veteran requests a hearing in response to a notice of proposed adverse action. **_ _** **References:** For more information on * sending notice of a proposed adverse action, see [M21-1, Part X, Subpart ii, 3.A]() * VIS, see the [_VIS User Guide_](), and * DPRIS, see the _DPRIS User Guide_. **Notes:** * When establishing EP 290 based on VA’s discovery that a Veteran returned to active duty, use the date VA made the discovery as the date of claim. * If a Veteran requests benefits be discontinued during a training period, discontinue compensation or pension in accordance with the Veteran’s request. ### X.v.2.B.1.c. Effective Date for Discontinuing Compensation or Pension According to [38 CFR 3.501(a)]() and [3.654(b)](), an award of compensation or pension to a Veteran will be discontinued effective the day preceding the date of return to active duty. For the purpose of discontinuing an award in VBMS-A because a Veteran returned to active duty, this means * the last day the Veteran is entitled to benefits is the day preceding the date of return to active duty, and * the date the Veteran returned to active duty represents the first day of non-payment of VA benefits. Because system programming requires users to enter the first day of _non-payment_ as the effective date of discontinuance of an award due to a Veteran’s return to active duty, the “effective date of discontinuance” referred to in this section is the date on which the Veteran returned to active duty, **_not_** the day preceding it. **Important:** * Preparation of a rating decision that reflects loss of entitlement to benefits based on a Veteran’s return to active duty is **_not_** necessary. Discontinue benefits by award action, making the appropriate entries on the BASIC ELIGIBILITY page. * VA typically learns of a Veteran’s return to active duty _after_ active duty has begun. If a Veteran will return to active duty on a date that is in the _future_ , follow the instructions in M21-1, Part X, Subpart v, 2.B.1.d, for discontinuing the Veteran’s benefits in VBMS-A. **Reference:** For more information on making entries on the BASIC ELIGIBILITY page in VBMS-A, see the _VBMS Awards User Guide_. ### X.v.2.B.1.d. Discontinuing Benefits in VBMS-A When the Veteran Will Return to Active Duty on a Date That Is in the Future VBMS-A currently lacks the functionality to discontinue benefits from a future date entered in the EVENT DATE field. Until this functionality is added, claims processors must use the workaround described in the table below to discontinue benefits from a future effective date in VBMS-A. | **Step**| **Action** 1| Select _Return to Active Duty_ from the drop-down box in the DECISION field on the BASIC ELIGIBILITY page. 2| Enter the current date in the EVENT DATE field. 3| Enter the effective date for the (future) discontinuation of benefits in the AWARD EFFECTIVE DATE field. 4| Generate the award (discontinuation). 5| Use Redesigned Automated Decision Letters to prepare a decision notice. ### X.v.2.B.1.e. Handling the Pending Claim of a Veteran Who Returns to Active Duty VA is prohibited from paying compensation or pension to a Veteran while the Veteran is receiving active service pay. If, however, a Veteran files a claim _before_ returning to active duty, VA may not deny the claim solely because the Veteran returned to active duty. **Rationale:** If VA ultimately grants the Veteran’s claim, it may pay the Veteran any benefits due for the period _preceding_ the return to active duty. **Important:** According to [VAOPGCPREC 10-2004](), the return of a Veteran to active duty under the circumstances described above does not change VA’s duty to assist in substantiating a pending claim, to include providing the Veteran an examination, when necessary, to decide the claim. **Reference:** For more information on handling the pending claim of a Veteran who returns to active duty, see [M21-1, Part X, Subpart v, 2.A](). ### X.v.2.B.1.f. Action to Take Upon Receipt of DD Form 214 Following receipt of _DD Form 214_ or other credible evidence showing a Veteran has been released from active duty, * ensure VA properly discontinued benefits effective the day the Veteran returned to active duty, and * notify the Veteran that VA will reinstate benefits effective the day following release from active duty if the Veteran submits a request for reinstatement within one year of that date. ### X.v.2.B.1.g. Action to Take Upon Receipt of a Request for Reinstatement of Compensation Follow the steps in the table below following receipt of a request for reinstatement of compensation from a Veteran who is no longer on active duty. **Important:** * VA does **_not_** require a Veteran to use a prescribed form to request reinstatement of benefits **_unless_** the Veteran is _concurrently_ pursuing an initial or supplemental claim. * Accept as a request for reinstatement of compensation a Veteran’s communication of an intent to file (ITF) a claim for VA disability benefits. **References:** For more information on * the use of prescribed forms, see [M21-1, Part II, Subpart iii, 1.A.1.a](). * informal claims received prior to March 24, 2015, see [M21-1, Part II, Subpart iii, 2.H](), and * handling a * communication of an ITF, see [M21-1, Part II, Subpart iii, 2.A](), and * request for an application for VA benefits, see [M21-1, Part II, Subpart iii, 2.G](). | **Step**| **Action** 1| Did VA accept the request for reinstatement as a Benefits Delivery at Discharge (BDD) claim, or will VA concurrently process a claim the Veteran submitted with the request for reinstatement under the BDD program? * If _yes_ , * establish EP control according to the instructions in [M21-1, Part X, Subpart i, 6.D](), and * go to Step 6. * If _no_ , go to the next step. **Note:** Claims processors skip the instructions in Steps 2 through 5 of this table if the Veteran filed a BDD claim, as VA takes actions similar to those described in these steps during the course of processing the BDD claim. **References:** For more information on * BDD claims, see [M21-1, Part X, Subpart i, 6.A]()-[C](), and * requests for reinstatement that VA accepts as a BDD claim, see [M21-1, Part X, Subpart i, 6.D](). 2| Use DPRIS or VIS to confirm the date the Veteran was discharged from active duty.**Note:** If attempts to confirm the date of discharge through DPRIS or VIS are unsuccessful, ask the Veteran to provide official documentation (such as a _DD Form 214_ or order to duty) that shows the date of discharge. * Go to the next step after the Veteran provides documentation. * If the Veteran fails to provide documentation within 30 days, * deny the request for a reinstatement of benefits, and * disregard the remaining steps in this table. 3| Follow the instructions in the table below. | **If …**| **Then …** * the Veteran is requesting reinstatement **_only_** (the Veteran is **_not_** pursuing an initial or supplemental claim) and * ** _all_** of the Veteran's service-connected (SC) disabilities are static (no future review examination is indicated on the most recent rating decision) * establish EP 290, and * go to Step 6. * the Veteran is requesting reinstatement **_only_** (the Veteran is **_not_** pursuing an initial or supplemental claim), and * the Veteran has an SC disability that is **_not_** static, but the designated date for the review examination is a future date * establish EP 290, and * go to Step 6. **Exception:** Go to **_Step 4_** instead of Step 6 if * the Veteran is a member of the Reserve or National Guard, and * the corporate record shows the Veteran’s most recent period of active duty ended **_prior to_** * September 1, 2014, if the period of active duty was in the Coast Guard, or * January 1, 2014, if the period of active duty was in a branch of service **_other than_** the Coast Guard. * the Veteran is requesting reinstatement **_only_** (the Veteran is **_not_** pursuing an initial or supplemental claim) * the Veteran has an SC disability that is **_not_** static, and * the designated date for reexamination of the non-static disability falls between the current date and the dates during which the Veteran was on active duty * establish EPs 290 (for reinstatement) and 310 (for reexamination of the non-static disability), and * go to Step 5. the Veteran is requesting reinstatement **_and_** concurrently pursuing an initial or supplemental claim| * establish EP 290 (for reinstatement) and the rating EP that corresponds with the type of claim the Veteran is concurrently pursuing, and * go to Step 5. **Notes:** * Establish EP 310, _in addition to the other EPs referenced in this cell_ , if * the Veteran has an SC disability that is **_not_** static, and * the designated date for reexamination of the non-static disability falls between the current date and the dates during which the Veteran was on active duty. * Do **_not_** establish EP 310 if the _only_ contention associated with the concurrently filed claim is entitlement to an increased disability rating for (a) non-static disability(ies) that is(are) subject to immediate reexamination. 4| * Follow the instructions in [M21-1, Part III, Subpart ii, 2.B.1.b](), for obtaining the Veteran’s service treatment records (STRs). * Go to Step 6. **Note:** Take no action on the STRs after they’re obtained. The purpose of the action described in this step is to ensure STRs from the Veteran’s most recent period of active duty are available for the rating activity to review in connection with the future review examination. 5| Follow the instructions in the table below.| **Step**| **Action** 1| Is the Veteran a member of the Reserve or National Guard? * If _yes_ , go to the next step in this embedded table. * If _no_ , go to Step 6. 2| Does the corporate record show the Veteran’s most recent period of active duty ended **_on or after_** September 1, 2014 (if the period of active duty was in the Coast Guard), or January 1, 2014 (if the period of active duty was in a branch of service **_other than_** the Coast Guard)? * If _yes_ , go to Step 6. * If _no_ , go to the next step in this embedded table. 3| * Follow the instructions in [M21-1, Part III, Subpart ii, 2.B.1.b](), for obtaining the Veteran’s STRs. * Go to the next step. 6| If VA received the Veteran’s request for reinstatement * _within one year_ of discharge from active duty, reinstate compensation for _**all**_ SC disabilities (static and non-static) effective the day following the date of discharge, or * _one year or more after_ the date of discharge, reinstate compensation for _**all**_ SC disabilities (static and non-static) effective one year prior to the date VA received the claim. **Important:** * Reinstate compensation by award action **_without_** a rating decision, **_except_** under the circumstances described in M21-1, Part X, Subpart v, 2.B.1.h. * When applicable, withhold benefits to * prevent concurrent payment of VA benefits and military retired pay (MRP), and/or * recoup a Veteran’s separation benefit. * Follow the instructions in the _VBMS Awards User Guide_ to ensure the Veteran’s benefits are * discontinued effective the date the Veteran returned to active duty, and * reinstated from the appropriate effective date following discharge.​​​​​​​ _**References**_ : For more information on * prohibition of concurrent payment of VA benefits and MRP, see [M21-1, Part VI, Subpart ii, 4.A]() * preparing and adjusting awards in MRP cases, see [M21-1, Part VI, Subpart ii, 4.B](), and * recoupment of separation benefits, see [M21-1, Part VI, Subpart ii, 2](). 7| Was a rating EP established in Steps 1 or 3 of this table? * If _yes_ , go to the next step. * If _no_ , take no further action. **Note:** EP 290 is **_not_** a rating EP. 8| Undertake any necessary development, to include issuing [Section 5103]() notice, if the Veteran is pursuing an initial or supplemental claim.**Reference:** For more information on the circumstances under which it is necessary to issue [Section 5103]() notice, see * [M21-1, Part III, Subpart i, 2.B](), and * [M21-1, Part X, Subpart ii, 2.A](). 9| Follow the instructions in the table below for each of the Veteran's non-static, SC disabilities. | **If the designated date for the future review examination ...**| **Then ...** falls between the current date and the dates during which the Veteran was on active duty| schedule the Veteran for a review examination **_unless_** the evidence of record is sufficient to assign a disability rating without an examination report. is a future date| do not schedule the examination until the review examination control referenced in [M21-1, Part IV, Subpart ii, 1.B](), matures. **_ _** **Example:** **Scenario:** * A Veteran with two non-static, SC disabilities (a back disorder and a knee disorder) is discharged from active duty. * The designated date for a review examination of the back disorder is June 2025. * The designated date for a review examination of the knee disorder is July 2029. * Award action to reinstate the Veteran's benefits is being taken in August of 2025. **Result:** The only non-static disability that is subject to reexamination concurrent with reinstatement of the Veteran’s benefits is the back disorder. 10| Refer the claim to the rating activity for a decision * after development is complete (if initiated), and/or * following receipt of examination reports (if requested) and STRs (if new STRs exist). **Note:** Do not postpone rating action based solely on the absence of the Veteran’s STRs if the evidence of record supports an award of the benefit the Veteran is seeking. In such cases, * process the rating decision * continue the EP at authorization, and * refer the STRs to the rating activity when the STRs arrive. **_ _** **Note:** The establishment of a rating EP triggers an **_automatic_** request for STRs through the Department of Defense’s Healthcare Artifacts and Images Management Solution (HAIMS) **_unless_** the * Veteran is a member of the Reserve or National Guard, and * corporate record shows the Veteran’s most recent period of active duty ended **_prior to_** * September 1, 2014, if the period of active duty was in the Coast Guard, or * January 1, 2014, if the period of active duty was in a branch of service other than the Coast Guard. **References:** For more information on * reinstating benefits following release from active duty, see [38 CFR 3.654(b)(2)]() * handling notice of a Veteran’s return to active duty and subsequent discharge that VA received more than one year after discharge occurred, see M21-1, Part X, Subpart v, 2.B.1.k * resuming a claim VA previously suspended based on an inability to develop the claim due to the Veteran’s return to active duty, see [M21-1, Part X, Subpart v, 2.A]() * EPs, see [M21-4, Appendix B](), and * HAIMS, see [M21-1, Part III, Subpart ii, 2.B.1.c](). ### X.v.2.B.1.h. Rating Decisions That Show Loss of Entitlement During Periods of Active Duty At one point in the past, it was common practice for the rating activity to prepare a rating decision that reflected a Veteran’s loss of entitlement to disability compensation when the Veteran returned to active duty. The authorization activity then discontinued the Veteran’s benefits based on the rating decision. As indicated in M21-1, Part X, Subpart v, 2.B.1.c, the authorization activity now administratively (_without_ a rating decision) discontinues a Veteran’s benefits when the Veteran returns to active duty. When claims processors identify a rating decision that reflects loss of entitlement to disability compensation during a period or periods of active duty, * the rating activity must prepare a rating decision that removes all previous _Active Duty Discontinuance_ selections from the _Codesheet_ , per the instructions in [M21-1, Part V, Subpart iv, 1.C.6.d](), and * the authorization activity must * promulgate the rating decision * recreate the previously coded discontinuances by way of award action, and * ensure updates to the _Codesheet_ are reflected in the corporate record. ### X.v.2.B.1.i. Proper Effective Date for a Grant of Entitlement to an Increased Disability Rating or SC If, in connection with a request for reinstatement of disability compensation following discharge, a Veteran files, and VA grants, a claim for * an increased disability rating, assign an effective date in accordance with the instructions in [M21-1, Part V, Subpart ii, 4.A.5.f]() * SC for a new disability, assign an effective date in accordance with the instructions in [M21-1, Part V, Subpart ii, 4.A.3.a](), or * SC for a disability for which VA previously denied SC, assign an effective date in accordance with the instructions in [M21-1, Part X, Subpart ii, 2.A](). ### X.v.2.B.1.j. Proper Application of 38 CFR 3.31 The _reinstatement_ of compensation VA previously discontinued because a Veteran returned to active duty does **_not_** constitute a new award of or increase in benefits. Therefore, the requirement in [38 CFR 3.31]() to _award_ benefits effective the first of the month following the month of entitlement is **_not_** for application. The provisions of [38 CFR 3.31]() _**do**_ apply if, in connection with a Veteran’s request for reinstatement, VA awards additional benefits based on the * establishment of SC for a new disability or a disability for which VA previously denied SC * assignment of an increased disability rating to an existing, SC disability, and/or * Veteran's claim to add a _new_ dependent. **Example:** **Scenario:** * A Veteran with a static, SC knee disorder, which VA rated 10-percent disabling, returns to active duty on August 1, 2020. * VA discontinues the Veteran’s benefits effective the date she returned to active duty. * The Veteran’s active duty ends August 15, 2021. * On August 18, 2021, the Veteran files a request for reinstatement of her compensation and a claim for an increased rating for the knee disorder. * VA determines the knee disorder worsened during service and subsequently assigns the knee disorder a disability rating of 30 percent. **Result:** The effective date of the award that reinstates compensation at the rate payable for a disability rated 10-percent disabling is August 16, 2021. Although the Veteran is _entitled_ to the 30-percent disability rating for the knee disorder effective August 18, 2021, the proper effective date of _payment_ for the increased award, per [38 CFR 3.31](), is September 1, 2021. **References:** For more information on the effective date of * the increased disability rating referenced in the preceding paragraph, see [M21-1, Part V, Subpart ii, 4.A.5.f](), and * payment under [38 CFR 3.31](), see [M21-1, Part VI, Subpart i, 1.A.2.b](). ### X.v.2.B.1.k. Discontinuing and Reinstating VA Benefits in the Same Award Action Sometimes, VA may not discover that a Veteran in receipt of VA benefits returned to active duty and was subsequently discharged until years after the fact. When retroactively discontinuing benefits during the period of active duty, do _not_ discontinue benefits beyond the date of discharge, even though the Veteran did not notify VA of the discharge within one year. **Example:** **Scenario:** On August 10, 2020, a Veteran in receipt of compensation reports a period of active duty that began December 15, 2017, and ended January 5, 2019.**_ _**Action:** Discontinue the Veteran’s compensation effective December 15, 2017, and reinstate it effective January 6, 2019.