Part VI, Subpart ii, Chapter 4, Section BPreparing and Adjusting Awards in Military Retired Pay (MRP) Cases

Select the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen in VBMS-A.Important: Do not delete any historical information displayed on the RETIRED PAY tab unless it is inaccurate.

Click on the ADD button and manually enter the MRP data or click on the RETRIEVE BIRLS DATA button, which will automatically populate the fields on the tab with data pulled from BIRLS.Note: When the RETRIEVE BIRLS DATA button is utilized, it automatically populates the

• EFFECTIVE DATE field with the first day of the month which must be edited to reflect the date MRP began when it is other than the first of the month (such as disability retirement or reaching retirement age for Veterans who retired from a Reserve component), and
• RETIRED PAY TYPE field with an entry of DMDC. At least one entry must be edited to reflect the appropriate retired pay type (e.g. Regular Retired Pay).

RETIRED PAY TYPE

A variety of sources/means exist for determining the proper entry. They include:

• the Veteran’s DD Form 214 ,Certificate of Uniformed Service
• VIS
• the Defense Personnel Records Information Retrieval System (DPRIS)
• the entry in the FAN CD (functional account number code) field on the ENTIT and MBRENT screens in the Defense Finance and Accounting Service (DFAS) Retired and Casualty Pay Subsystem (RCPS) (Army, Navy, Air Force, Space Force, and Marine Corps only)
• telephone contact with DFAS (Army, Navy, Air Force, Space Force, and Marine Corps only) at 866-622-4602, and/or
• telephone contact with the Coast Guard Retiree and Annuitant Services Branch (CGRASB) (for all uniformed services other than the Army, Navy, Air Force, Space Force, and Marine Corps) at 866-772-8724.

GROSS AMOUNT

If the Veteran’s service department has not yet determined the amount of MRP,

• leave the GROSS AMOUNT field blank, and
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.B.3.

Important: Do not enter 0.00 , as doing so deactivates the retired pay indicator.

EFFECTIVE DATE

Enter the date of entitlement to disability compensation (not the payment date) in the EFFECTIVE DATE field.

1

Follow the instructions in the table below. If the Veteran retired from the … Then go to …

• Army
• Navy
• Air Force
• Space Force, or
• Marine Corps

Step 4.

• Coast Guard,
• National Oceanic and Atmospheric Administration (NOAA), or
• U.S. Public Health Service (PHS)

the next step.

2

Contact CGRASB at 866-772-8724 and ask whether the amount of the Veteran’s MRP has been calculated.

3

Has the amount of the Veteran’s MRP been calculated?

• If yes ,
  • ask CGRASB for the amount(s) and the effective date(s) of payment(s) of MRP
  • document the information obtained from CGRASB on VA Form 27-0820, Report of General Information, and upload the form into the Veteran’s electronic claims folder (eFolder)
  • update the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen in the award-processing system based on information CGRASB provided, and
  • disregard the remaining steps in this table.
• If no ,
  • disregard the remaining steps in this table, and
  • follow the instructions in Step 2 of the procedure outlined in M21-1, Part VI, Subpart ii, 4.B.3.b.

4

Access RCPS by logging into the Defense Information Systems Agency (DISA) Multi-Host Internet Access Portal (MIAP).

5

Once RCPS opens, enter the following text in the upper, left-hand corner of the screen: HUNT[enter a space or comma, the Veteran’s nine-digit SSN, and a comma]ENTIT. Example: HUNT 999999999,ENTIT

6

Press Enter on the keyboard.

7

Does the SELECTED ENTITLEMENT DATA screen appear after pressing Enter?

• If yes , the Veteran’s service department has calculated the amount of MRP it will pay the Veteran.
  • Follow the instructions in M21-1, Part VI, Subpart ii, 4.B.3.b, for updating the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen in the award-processing system.
  • Pay compensation in accordance with the instructions in M21-1, Part VI, Subpart ii, 4.B.2.
• If no , the Veteran’s service department has not yet calculated the amount of MRP it will pay the Veteran. Follow the instructions in the table below.

THE REQUESTED DATA FIELDS ARE BLANK FOR THIS SSN appears at the bottom of the NRPS INQUIRY DIRECTORY screen

follow the instructions in Step 2 of the procedure outlined in M21-1, Part VI, Subpart ii, 4.B.3.b.

THE REQUESTED INFORMATION DOES NOT EXIST FOR THIS SSN appears at the bottom of the NRPS INQUIRY DIRECTORY screen

• request the Veteran’s retirement orders through DPRIS to confirm the Veteran retired
• upload the orders into the Veteran’s eFolder when they arrive, and
• follow the instructions in Step 2 of the procedure outlined in M21-1, Part VI, Subpart ii, 4.B.3.b.

1

Has the Veteran’s service department calculated the amount of MRP it will pay the Veteran?

• If yes , go to Step 3.
• If no , go to the next step.

2

• On the RETIRED PAY tab,
  • enter the retirement date (separation date plus one day) in the EFFECTIVE DATE field, and
  • leave the GROSS AMOUNT field blank.
  • Disregard the remaining steps in this table and follow the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

Important: Do not enter 0.00 in the GROSS AMOUNT field, as doing so deactivates the retired pay indicator.

3

Look at the fields that appear along the right side of the SELECTED ENTITLEMENT DATA screen in RCPS. Is the amount displayed in the PR GP (prior gross pay) field $0.00?

• If yes ,
  • enter the date displayed in the CURR GP EFF DT (current gross pay effective date) field and the amount displayed in the CURR GP (current gross pay) field into the EFFECTIVE DATE and GROSS AMOUNT fields, respectively, on the RETIRED PAY tab in the award-processing-system, and
  • disregard the remaining step in this table.
• If no , go to the next step.

4

Follow the instructions in the table below. If … Then …

the same date is displayed in the CURR GP EFF DT and PR GP EFF DT (prior gross pay effective date) fields

enter the date displayed in the CURR GP EFF DT field and the amount displayed in the CURR GP field into the EFFECTIVE DATE and GROSS AMOUNT fields, respectively, on the RETIRED PAY tab in the award-processing-system.

different dates are displayed in the CURR GP EFF DT and PR GP EFF DT fields

• enter the date displayed in the PR GP EFF DT field and the amount displayed in the PR GP field into the EFFECTIVE DATE and GROSS AMOUNT fields, respectively, on the RETIRED PAY tab in the award-processing-system
• click on the ADD button on the RETIRED PAY tab
• enter the date displayed in the CURR GP EFF DT field and the amount displayed in the CURR GP field into the EFFECTIVE DATE and GROSS AMOUNT fields, respectively, on the RETIRED PAY tab, and
• click on the DONE button on the RETIRED PAY tab.

1

Follow the instructions in the table below. If the Veteran retired from the … Then …

• Army
• Navy
• Air Force
• Space Force, or
• Marine Corps

go to the next step.

• Coast Guard

• NOAA, or

• PHS

• disregard the remaining steps in this table, and

• follow the instructions in M21-1, Part VI, Subpart ii, 4.B.3.e.

2

Access RCPS by logging into the DISA MIAP.

3

Once RCPS opens, enter the following text in the upper, left-hand corner of the screen: HUNT[enter a space or comma, the Veteran’s nine-digit SSN, and a comma]ENTIT. Example: HUNT 999999999,ENTIT

4

Press Enter on the keyboard.

5

Does the SELECTED ENTITLEMENT DATA screen appear after pressing Enter?

• If yes ,
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.B.3.b to update the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen, and
  • go to Step 10.
• If no , go to the next step.

6

Have six months passed since the date of separation?

• If yes , go to the next step.
• If no , go to Step 9.

7

Remove the withholding for MRP effective the date the withholding first began on or after the last retirement date. Important: Do not enter 0.00 in the GROSS AMOUNT field when updating the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen, as doing so deactivates the retired pay indicator. Leave the field blank instead.

8

• Notify the Veteran of the action taken, and
• disregard the remaining steps in this table.

9

Follow the instructions in the table below. If the message … Then …

THE REQUESTED INFORMATION DOES NOT EXIST FOR THIS SSN appears at the bottom of the NRPS INQUIRY DIRECTORY screen

• disregard the remaining steps in this table
• update the tracked item suspense date to reflect a date that is 10 days from the current date, and
• repeat the steps in this table during the next review of the EPs 290 that were established in accordance with the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

THE REQUESTED DATA FIELDS ARE BLANK FOR THIS SSN appears at the bottom of the NRPS INQUIRY DIRECTORY screen

go to the next step.

10

In RCPS, enter the following text in the upper, left-hand corner of the screen: HUNT[enter a space or comma, the Veteran’s nine-digit SSN, and a comma]VA. Example: HUNT 999999999,VA

11

Are the ACTUAL DED DT (actual deduction date) and ACTUAL AMT (actual amount) fields on the VA WAIVER screen populated with data?

• If yes , go to Step 16.
  • If no , go to the next step.

Notes:

• The amount displayed in the ACTUAL AMT field represents the amount of MRP waived. If the amount in this field equals or exceeds the amount of the Veteran’s MRP, then the Veteran’s MRP has been waived in full.
• The number displayed in the ACTUAL DED DT field represents the effective date (YYYYMMDD) of the waiver.
• If 0.00 appears in the ACTUAL AMT field, the MRP waiver was $0.00 as of the date displayed in the ACTUAL DED DT field.
• If two or more columns of data are displayed on the VA WAIVER screen,
  • disregard the data in all but the first column of data if the date displayed in the ACTUAL DED DT field is the same in all columns, or
  • use the data displayed in all of the columns if at least one of the dates displayed in the ACTUAL DED DT field does not match.

12

Have 10 working days passed since the award action described in M21-1, Part VI, Subpart ii, 4.B.3.c, was authorized?

• If yes , go to Step 15.
• If no , go to the next step.

13

Did the SELECTED ENTITLEMENT DATA screen referenced in Step 5 appear after taking the actions described in Steps 3 and 4?

• If yes , go to the next step.
• If no ,
  • stop here
  • update the tracked item suspense date to reflect a date that is 10 days from the current date, and
  • repeat the steps in this table during the next review of the EPs 290 that were established in accordance with the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

14

Does the amount of MRP the Veteran receives exceed the gross monthly amount of the Veteran’s disability compensation?

• If yes ,
  • clear the EP 290, and
  • disregard the remaining steps in this table.
• If no ,
  • withhold from the Veteran’s award the gross monthly amount of MRP from the date compensation is payable following separation to the date the withholding for MRP ended
  • notify the Veteran of the action taken, and
  • disregard the remaining steps in this table.

15

• Send an email to VAVBAWAS/CO/MILPAY that includes (in the body of the email message) the
  • Veteran’s claim number, and
  • statement Sending per instructions in Step 15 of the procedure outlined in M21-1 VI.ii.4.B.3.d.
• Take no further action until the Military Pay Staff responds with further instructions.

16

Follow the instructions in the table below. If the … Then …

• date in the ACTUAL DED DT field matches the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased, and

  • amount of the Veteran’s MRP is unknown

  • update the tracked item suspense date to reflect a date that is 10 days from the current date, and

  • repeat the steps in this table during the next review of the EPs 290 that were established in accordance with the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

  • date in the ACTUAL DED DT field matches an effective date of the award of disability compensation, and

  • amount in the ACTUAL AMT field is greater than $0.00

  • make the appropriate entries on the RETIRED PAY tab of the AWARD ADJUSTMENTS screen in the award-processing system to reduce the amount of disability compensation VA withheld by the amount displayed in the ACTUAL AMT field, effective the date displayed in the ACTUAL DED DT field, and

  • notify the Veteran of the action taken.

Caution: Do not adjust the Veteran’s award for any periods prior to the date displayed in the ACTUAL DED DT field. Notes:

• After making the award adjustment described in this cell,

  • paste a copy of a screenshot of the VA WAIVER screen into a Word document
  • follow the instructions in M21-1, Part II, Subpart ii, 2.A.1.b, for converting the Word document into a portable document format (PDF) file
  • index the PDF file by entering,
    • Retired Pay Screen in the DOCUMENT CATEGORY – TYPE field
    • VA Waiver in the SUBJECT field, and
    • DFAS as the CONTENT SOURCE, and
  • upload the file into the Veteran’s eFolder.

• The award adjustment described in this cell releases to the Veteran disability compensation VA withheld from the date displayed in the ACTUAL DED DT field up to the amount displayed in the ACTUAL AMT field.

• If the amount of MRP is known, and the amount displayed in the ACTUAL AMT field equals or exceeds the MRP amount, remove the withholding for MRP from the corresponding ACTUAL DED DT field.

• If the amount of MRP is unknown and the amount displayed in the ACTUAL AMT field is less than the amount of disability compensation VA withheld for MRP,

  • continue the EP 290 at authorization
  • notify the Veteran of the action taken
  • update the tracked item suspense date to reflect a date that is 10 days from the current date, and
  • repeat the steps in M21-1, Part VI, Subpart ii, 4.B.3.d, until all the actions required to close out the EP are completed.

• date in the ACTUAL DED DT field matches the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased

• amount in the ACTUAL AMT field matches the amount of disability compensation VA paid from the date in the ACTUAL DED DT field, and

• Veteran’s MRP is less than the amount of disability compensation to which the Veteran is entitled

• make the appropriate entries on the RETIRED PAY tab of the AWARD ADJUSTMENTS screen in the award-processing system to reduce the amount(s) of disability compensation withheld for MRP to the gross monthly amount(s) of MRP the Veteran received prior to the date in the ACTUAL DED DT field, and

• notify the Veteran of the action taken.

Note: The award adjustment described in this cell releases to the Veteran all disability compensation that exceeds the amount of gross monthly MRP.

• date in the ACTUAL DED DT field matches the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased
• amount in the ACTUAL AMT field matches the amount of disability compensation VA paid from the date in the ACTUAL DED DT field, and
• Veteran’s MRP is equal to or exceeds the gross amount of disability compensation to which the Veteran is entitled

no further action is necessary except to clear the pending EP 290.

date in the ACTUAL DED DT field is later than the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased Note: VA may have overpaid the Veteran in this case.

• send an email to VAVBAWAS/CO/MILPAY that includes (in the body of the email message) the
  • Veteran’s claim number, and
  • statement Sending per instructions in Step 16 of the procedure outlined in M21-1 VI.ii.4.B.3.d, and
• take no further action until the Military Pay Staff responds to the email.

1

Contact CGRASB at 866-772-8724 and ask whether

• the amount of the Veteran’s MRP has been calculated, and/or
• a VA waiver has been posted.

2

Has the amount of the Veteran’s MRP been calculated, or has a VA waiver been posted?

• If yes ,
  • ask CGRASB for the amount(s) and effective date(s) of
    • payment(s) of MRP, and/or
    • the VA waiver
  • document the information obtained from CGRASB on VA Form 27-0820 and upload the form into the Veteran’s eFolder, and
  • go to Step 6.
• If no , go to the next step.

3

Has the EP 290 been pending more than six months from the date of separation?

• If yes , go to the next step.
• If no ,
  • stop here
  • update the tracked item suspense date to reflect a date that is 10 days from the current date, and
  • repeat the steps in this table during the next review of the EPs 290 that were established in accordance with the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

4

Remove the withholding for MRP effective the date the withholding first began on or after the last retirement date. Important: Do not enter 0.00 in the GROSS AMOUNT field when updating the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen, as doing so deactivates the retired pay indicator. Leave the field blank instead.

5

• Notify the Veteran of the action taken, and
• disregard the remaining steps in this table.

6

Has the amount of the Veteran’s MRP been calculated?

• If yes ,
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.B.3.b, for updating the RETIRED PAY tab on the MILITARY PAYMENT INFORMATION screen, and
  • go to the next step.
• If no , go to the next step.

7

Was VA waiver information received from CGRASB as described in Step 2?

• If yes , go to Step 11.
• If no , go to the next step.

8

Have 10 working days passed since the award action described in M21-1, Part VI, Subpart ii, 4.B.3.c, was authorized?

• If yes , go to the next step.
• If no , go to Step 10.

9

• Send an email to VAVBAWAS/CO/MILPAY that includes (in the body of the email message) the
  • Veteran’s claim number, and
  • statement Sending per instruction s in Step 9 of the procedure outlined in M21-1 VI.ii.4.B.3.e.
• Take no further action until the Military Pay Staff responds with further instructions.

10

Does the amount of MRP the Veteran receives exceed the gross monthly amount of the Veteran’s disability compensation?

• If yes ,
  • clear the EP 290, and
  • disregard the remaining steps in this table.
• If no ,
  • withhold from the Veteran’s award the gross monthly amount of MRP from the date compensation is payable following separation to the date the withholding for MRP ended
  • notify the Veteran of the action taken, and
  • disregard the remaining steps in this table.

11

Follow the instructions in the table below. If … Then …

• the effective date of the VA waiver matches the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased, and

  • the amount of the Veteran’s MRP is unknown

  • update the tracked item suspense date to reflect a date that is 10 days from the current date, and

  • repeat the steps in this table during the next review of the EPs 290 that were established in accordance with the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

  • the effective date of the VA waiver matches an effective date of the award of disability compensation, and

  • the amount of the VA waiver is greater than $0.00

  • make the appropriate entries on the RETIRED PAY tab of the AWARD ADJUSTMENTS screen to reduce the amount of disability compensation VA withheld by the amount of the VA waiver from the effective date of the VA waiver, and

  • notify the Veteran of the action taken.

Caution: Do not adjust the Veteran’s award for any periods prior to the effective date of the VA waiver. Notes:

• The award adjustment described in this cell releases to the Veteran disability compensation VA withheld from the effective date of the VA waiver in the amount of the VA waiver.

• If the amount of the VA waiver is less than the amount of disability compensation VA withheld for MRP,

  • continue the EP 290 at authorization
  • notify the Veteran of the action taken
  • update the tracked item suspense date to reflect a date that is 10 days from the current date, and
  • repeat the steps described in M21-1, Part VI, Subpart ii, 4.B.3.e, until all the actions required to close out the EP are completed.

• the effective date of the VA waiver matches the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased

• the amount of the VA waiver matches the amount of disability compensation VA paid from the effective date of the VA waiver, and

• the Veteran’s MRP is less than the gross amount of disability compensation to which the Veteran is entitled

• make the appropriate entries on the RETIRED PAY tab of the AWARD ADJUSTMENTS screen to reduce the amount(s) of disability compensation VA withheld for MRP to the gross monthly amount(s) of MRP the Veteran received prior to the effective date of the VA waiver, and

• notify the Veteran of the action taken.

Notes: The award adjustment described in this cell releases to the Veteran all disability compensation that exceeds the amount of gross monthly MRP.

• the effective date of the VA waiver matches the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased
• the amount of the VA waiver matches the amount of disability compensation VA paid from the effective date of the VA waiver, and
• the Veteran’s MRP is equal to or exceeds the gross amount of disability compensation to which the Veteran is entitled

no further action is necessary except to clear the pending EP 290.

the effective date of the VA waiver is later than the date the withholding of disability compensation (as referenced in M21-1, Part VI, Subpart ii, 4.B.3.c) ceased Note: VA may have overpaid the Veteran in this case.

• send an email to VAVBAWAS/CO/MILPAY that includes (in the body of the email message) the
  • Veteran’s claim number, and
  • statement Sending per instructions in Step 11 of the procedure outlined in M21-1 VI.ii.4.B.3.e, and
• take no further action until the Military Pay Staff responds to the email.

1

Follow the instructions in the table below. If the Veteran retired from the … Then go to …

• Army
• Navy
• Air Force
• Space Force, or
• Marine Corps

the next step.

• Coast Guard
• NOAA, or
• PHS

Step 3.

2

• Follow the instructions in the table below.
• Disregard the remaining steps in this table.

• contain no data, and
• the amount of MRP is known

withhold any increase in disability compensation in accordance with M21-1, Part VI, Subpart ii, 4.B.2.

• contain no data, and

  • the amount of MRP is unknown

  • withhold any increase in disability compensation, and

  • establish EP 290 by following the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

  • contain data, and

  • the amount of MRP is known

  • pay disability compensation in the amount displayed in the ACTUAL AMT field from the date in the ACTUAL DED DT field, and

  • withhold the remaining amount in accordance with M21-1, Part VI, Subpart ii, 4.B.2.

Important: Do not withhold disability compensation that VA paid prior to the date displayed in the ACTUAL DED DT field.

• contain data, and

• the amount of MRP is unknown

• follow the instructions in the preceding row, and

• establish EP 290 after authorizing the award by following the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c

3

Contact CGRASB at 866-772-8724 and ask whether

• the amount of the Veteran’s MRP has been calculated, and/or
• a VA waiver has been posted.

4

Has the amount of the Veteran’s MRP been calculated, or has a VA waiver been posted?

• If yes ,
  • ask CGRASB for the amount(s) and effective date(s) of
    • payment(s) of MRP, and/or
    • the VA waiver
  • document the information obtained from CGRASB on VA Form 27-0820 and upload the form into the Veteran’s eFolder, and
  • go to Step 6.
• If no , go to the next step.

5

• Withhold any increase in disability compensation
• establish EP 290 by following the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c, and
• disregard the remaining step in this table.

6

Follow the instructions in the table below. If the … Then …

amount and effective date of MRP is known, but CGRASB reports no VA waiver has posted

withhold any increase in disability compensation in accordance with M21-1, Part VI, Subpart ii, 4.B.2.

• amount and effective date of MRP are known, and

  • amount of the VA waiver is known

  • pay disability compensation in the amount of the VA waiver from the effective date of the VA waiver, an

  • withhold the remaining amount in accordance with M21-1, Part VI, Subpart ii, 4.B.2.

Important: Do not withhold disability compensation that VA paid prior to the effective date of the VA waiver.

amount and effective date of the VA waiver are known, but the amount of MRP is unknown

• follow the instructions in the preceding row
• establish EP 290 after authorizing the award by following the instructions in M21-1, Part VI, Subpart ii, 4.B.3.c.

concurrent payments of MRP and compensation or Section 306 Pension are made without

• an election, or
• the establishment of an effective waiver

VA is responsible for collecting the overpayment.Important: VA is responsible for collecting the overpayment even if VA received no notice that MRP had been awarded.

• VA benefits have already been awarded, and
• the Veteran later becomes entitled to MRP

the service department is responsible for sending an inquiry to VA and collecting any resulting overpayment.

VA fails to award benefits from the proper date, resulting in a duplicate payment of compensation and MRP

VA is responsible for collecting the overpayment.

• VA processes an award correctly, and
• the RPC fails to make a timely waiver adjustment

the RPC is responsible for collecting the resulting overpayment.

• Establish EP 290.
• Add Potential Under/Overpayment as a special issue.

Attempt to contact the Veteran by telephone to confirm the election of MRP over disability compensation.

Were attempts to contact the Veteran by telephone successful?

• If yes , go to the next step.
• If no ,
  • clear the EP 290, and
  • go to Step 9.

Did the Veteran confirm the election of MRP over disability compensation?

• If yes ,
  • discontinue the payment of disability compensation effective the date of receipt of the election
  • notify the Veteran of the action taken, and
  • disregard the remaining steps in this table.
• If no , go to the next step.

• Ask the Veteran to
  • complete VA Form 21-651, including Blocks 2 through 5 (even though the form indicates VA is responsible for completing those blocks), and
  • sign and return the form to VA within 24 hours.
  • Inform the Veteran that VA will initiate action to discontinue disability compensation if the form is not returned within 24 hours.

Note: Inform the Veteran of the opportunity to provide the form electronically via use of VA claims submission service websites.

Create the appropriate tracked item for return of VA Form 21-651, as identified in M21-4, Appendix D, with a suspense date that is five business days from the current date.

Did the Veteran indicate an intent to provide the form electronically?

• If yes ,
  • check the Veteran's eFolder for receipt of the VA Form 21-651 after the suspense date referenced in Step 6 passes, and
  • go to the next step.
• If no , go to the next step.

Did the Veteran return VA Form 21-651 __ within the allotted time period?

• If yes ,
  • clear the pending EP 290
  • notify the Veteran that VA received VA Form 21-651 and, accordingly, will make no adjustments to the award, and
  • disregard the remaining steps in this table.
• If no ,
  • clear the EP 290, and
  • go to the next step.

• Establish EP 600.
• Add Potential Under/Overpayment as a special issue.

Issue a notice of proposed adverse action that informs the Veteran that

• VA intends to discontinue disability compensation effective the date VA received the election
  • the Veteran’s election will result in the creation of an overpayment, and
  • if the Veteran wishes to withdraw the election, VA Form 21-651 must be completed, signed, and returned within 60 days.

Rationale for providing due process:

• An election of MRP over VA benefits is not listed as an exception (in 38 CFR 3.103(b)(3)) to the requirement that VA provide due process before reducing a beneficiary’s award.
• Veterans often mistakenly check the box on VA forms that elects not to receive VA compensation in lieu of MRP. Providing due process ensures Veterans have an opportunity to confirm the election to waive disability compensation in order to receive MRP.

Reference: For more information about issuing notice of a proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.

Did the Veteran return VA Form 21-651 __ within 65 days?

• If yes ,
  • clear the pending EP 600, and
  • notify the Veteran that VA will not take the action it proposed in Step 10.
• If no ,
  • discontinue the payment of disability compensation effective the date of receipt of the election, and
  • notify the Veteran of the action taken..

the rating activity

• granted SC for a new disability based on the subsequent claim, and
• assigned a compensable disability rating to the disability

of entitlement shown on the new rating decision.

the initial rating decision included a grant of SC for a disability with a compensable disability rating and

• the rating activity determined in the initial rating decision that the disability was static (no future examination was required), or
• the rating activity reevaluated the disability based on the subsequent claim but determined no change in the current disability rating is warranted.

VA received the subsequent claim.

the rating activity granted an increase in the disability rating assigned to a disability based on the subsequent claim

the new rating decision shows the Veteran is entitled to the increased disability rating.

Prepare an amended award in accordance with instructions in M21-1, Part VI, Subpart ii, 2.

Follow the instructions in M21-1, Part VI, Subpart ii, 4.B.1.d for removing the retired pay indicator from the corporate record.

Begin withholding VA benefits to recoup the severance pay effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.

Send a decision notice to the Veteran that fully explains the actions taken.