Revised June 6, 2019
VI.iii.2.A.1.aSimultaneous Award Adjustments in Compensation and Pension Awards
Simultaneous award adjustments may occur from
- related factual circumstances that result in a single legal transaction, or
- unrelated factual circumstances that result in multiple legal transactions.
Important:
- Consider making simultaneous award adjustments when multiple end products (EPs) are actionable at the same time.
- Avoid postponing action on an actionable EP until action may be taken on multiple EPs.
Note: Pension adjustments based on status issues, adding or removing a dependent, or changes in income and/or medical expenses are each a separate legal transaction.Reference: For information regarding the circumstances under which simultaneous award adjustments are not permitted, see M21-1, Part VI, Subpart iii, 2.A.2.b.
VI.iii.2.A.1.bExample: Single Legal Transaction
Fact 1: A Veteran evaluated as 30-percent disabled reports he recently married.Fact 2: The same Veteran reports his school child is no longer attending college. Conclusion: In this example, both sets of facts relate to the status of the Veteran’s dependents. It is, therefore, proper to process these actions simultaneously.
VI.iii.2.A.1.cExample 1: Multiple Legal Transactions
Fact 1: A rating decision that retroactively increases a Veteran's combined disability rating from 30 percent to 50 percent is pending promulgation. Fact 2: The Department of Veterans Affairs (VA) receives notice from the same Veteran that her spouse died six months ago.Actions :
- Process the award for increased evaluation.
- Defer processing the reduction for loss of the spouse until after the system has posted the increase (usually overnight).
Conclusion: In this example, the facts relate to separate and distinct issues that result in multiple legal transactions
- adjustment for loss of a dependent, and
- an increased disability evaluation.
Important: Processing a simultaneous award adjustment, in this example, is prohibited. VA may process multiple unrelated adjustments only if each adjustment, if processed by itself, would have the same effect on the total benefits paid: all award adjustments would either have to pay a retroactive increase in the rate of benefits paid or all awards adjustments would have to create an overpayment.
VI.iii.2.A.1.dExample 2: Multiple Legal Transactions
Facts: A Veteran receiving pension submits unreimbursed medical expenses. The claim is ready to work. VA receives notice from the same Veteran that her spouse died six months ago. Actions:
- Adjust the award for the medical expenses.
- Defer processing the reduction for loss of the spouse until after the system has posted the increase (usually overnight).
Conclusion: In this example, the facts relate to separate and distinct issues that result in multiple legal transactions
- adjustment for loss of a dependent, and
- changes in medical expenses.
Note: This example is predicated on the assumption that the medical expenses will result in increased benefits and removal of the spouse will result in an overpayment. Important: Processing a simultaneous award adjustment, in this example, is prohibited. VA may process multiple unrelated adjustments only if each adjustment, if processed by itself, would have the same effect on the total benefits paid: all award adjustments would either have to pay a retroactive increase in the rate of benefits paid or all awards adjustments would have to create an overpayment.
2Processing Simultaneous Award Adjustments
This topic contains information on processing simultaneous award adjustments, including
- when simultaneous award adjustments
- are permitted, and
- are not permitted, and
- procedure when simultaneous award adjustments are not permitted.
Revised June 6, 2019
VI.iii.2.A.2.aWhen Simultaneous Award Adjustments Are Permitted
Use the table below to determine when simultaneous award adjustments are permitted.
| If the multiple award adjustments are based on … | Then … |
|---|---|
related factual circumstances resulting in a single legal transaction | process the awards simultaneously.Note: In this situation, |
Reference: For an example of multiple award adjustments that are based on a single legal transaction, see M21-1, Part VI, Subpart iii, 2.A.1.b.
| the adjustments may be processed simultaneously. |
VI.iii.2.A.2.bWhen Simultaneous Award Adjustments Are Not Permitted
Multiple award adjustments based on unrelated factual circumstances resulting in distinct legal transactions must be processed separately if the following is true:
- at least one adjustment would create an overpayment, if processed by itself, and
- another adjustment would increase benefits, if processed by itself.
This gives the beneficiary the right to either dispute/disagree with or request waiver of the full amount of the resulting debt before offset. Important: Avoid postponing action on an actionable EP until action may be taken on multiple EPs.Note: The term before offset means that if the award adjustment creating an overpayment and the award adjustment creating an increase are processed simultaneously before the amount of the resulting debt is put into the payment system for collection, VA recovers the overpayment created for the one issue with the increase or retroactive benefit created by the other. In this case, the increase would offset the debt.
VI.iii.2.A.2.cProcedure When Simultaneous Award Adjustments Are Not Permitted
Follow the steps in the table below when simultaneous award adjustments are not permitted.
| Step | Action |
|---|---|
| 1 | Make only the award adjustment that will result in an increase in the beneficiary’s award. Reference: For more information on separate award adjustments based on multiple transactions, see M21-1, Part VI, Subpart iii, 2.A.1.c and d. |
| 2 | Instead of taking fiscal authorization action, leave a remark (associated with the award adjustment made in Step 1) that reads Action taken in accordance with M21-1, Part VI, Subpart iii, 2.A.2.c.Reference: For more information on leaving remarks about an award in the Veterans Benefits Management System (VBMS), see the VBMS Awards User Guide. |
| 3 | Notify the beneficiary of the action taken in Step 1. |
| 4 | After the system has posted the award adjustment described in Step 1 (usually overnight), make the award adjustment that will result in the creation of an overpayment in the beneficiary’s account. |
| 5 | Notify the beneficiary of the action taken in Step 4.Important: Add to the decision notice a paragraph explaining that the increased benefits were not used to offset the existing overpayment since the issue that resulted in creation of an overpayment and the issue that resulted in an increase in benefits were not related. |
I mportant : The instructions in the table above represent a temporary procedure that users must follow until the claims processing system is capable of simultaneously processing multiple award adjustments of separate, distinct transactions simultaneously.
Reference:** For more information about notifying beneficiaries of award adjustments, see M21-1, Part VI, Subpart i, 1.B.
End of Part VI, Subpart iii, Chapter 2, Section A