Revised June 10, 2026
VI.iii.4.1.aSuspension of Payments Due to a Veteran’s Disappearance
The Department of Veterans Affairs (VA) is generally notified of a Veteran’s disappearance when a benefit payment and/or mail is returned undeliverable.The Veteran’s benefit payments are suspended during the processing of the returned payment, creating a proceed balance that requires review in accordance with the instructions in M21-1, Part X, Subpart v, 2.D.When there is evidence showing that the Veteran has disappeared, but no proceed balance exists, attempt to obtain a current address from the Veteran by telephone. If such attempts are
- successful , follow the instructions in the first row of the table below, or
- unsuccessful , follow the instructions in * Steps 1 through 6 of the procedure described in M21-1, Part II, Subpart i, 2.C.6.d, and * the table below.
| If the Veteran’s correct address is ... | Then ... |
|---|---|
obtained via telephone or while following the instructions in Steps 1 through 6 of the procedure described in M21-1, Part II, Subpart i, 2.C.6.d |
|
not obtained after completing Steps 1 through 6 of the procedure described in M21-1, Part II, Subpart i, 2.C.6.d |
|
Important:
- Send notice of proposed adverse action prior to discontinuing the Veteran’s award only if a(n)
- award is running, and
- notice of proposed adverse action regarding the discontinuation of benefits has not previously been issued.
- When a Veteran’s award is discontinued according to the instructions above, the decision notice associated with this action will likely be returned as undeliverable. If this occurs, there is no need to treat the returned decision notice as undeliverable mail (according to the instructions in M21-1, Part II, Subpart i, 2.C.6.d).
References: For more information on
-
updating a Veteran’s address, see M21-1, Part II, Subpart iii, 3.B.1.b or c
-
resuming payments when an award is discontinued because the Veteran’s address is unknown, see 38 CFR 3.158(c), and
-
discontinuing or resuming an award due to a Veteran’s disappearance or reappearance, see the VBMS Awards User Guide.
2Payments to Dependents Upon the Disappearance of a Veteran
This topic contains information on making payments to dependents upon the disappearance of a Veteran, including
- paying a Veteran’s benefits to a dependent(s)
- developing for the dependent’s entitlement
- how to prepare an award of a Veteran’s benefits to a dependent(s)
- paying
- disability compensation to dependents
- the Dependency and Indemnity Compensation (DIC) rate to a parent(s), and
- pension to dependents
- example 1: determining payment rates
- example 2: determining payment rates, and
- example 3: determining payment rates.
Revised October 30, 2019
VI.iii.4.2.aPaying a Veteran’s Benefits to a Dependent(s)
Under 38 CFR 3.656, if a Veteran was receiving, or was entitled to receive, disability compensation, current-law pension, or Section 306 Pension, and the Veteran's whereabouts remain unknown for a period of 90 days or more, those benefits may be paid to or for
- a spouse
- children, or
- parents (in disability compensation cases).
Note: Do not pay dependents Old-Law Pension and special monthly pension for the Medal of Honor.
VI.iii.4.2.bDeveloping for the Dependent’s Entitlement
Before VA undertakes development to determine a dependent’s potential entitlement to benefits under 38 CFR 3.656, the dependent, or someone on the dependent's behalf, must make a specific request using VA Form 21-0788, Information Regarding Apportionment of Beneficiary’s Award. Notes :
- To establish relationship, use VA Form 21-686c, Application Request to Add and/or Remove Dependents .
- Although VA Form 21-0788 is a form VA uses to determine a claimant’s entitlement to an apportionment, the instructions in M21-1, Part VI, Subpart iv, 2.A, are not for application in determining entitlement to the payment of a Veteran’s benefits to a dependent(s) under 38 CFR 3.656.
VI.iii.4.2.cHow to Prepare an Award of a Veteran’s Benefits to a Dependent(s)
Follow the steps in the table below to prepare an award of a Veteran’s benefits to a dependent(s) under 38 CFR 3.656.
| Step | Action |
|---|---|
| 1 | Generate the award in the claims-processing system as if it were an apportionment of the Veteran’s benefits. Notes:
|
| 2 | Establish a control for review of the claims folder seven years after the date of the Veteran’s disappearance. |
| 3 | After the control period expires, take the action specified in M21-1, Part XI, Subpart i, 2.C.2.b. |
Note: If the Veteran’s award was previously discontinued because of whereabouts unknown (as discussed in M21-1, Part VI, Subpart iii, 4.1.a), and payment of the benefits to a dependent(s) is now in order,
-
resume the Veteran’s award
-
generate the award to the dependent(s) in accordance with instructions in the table above, and
-
suppress direct payment to the Veteran by withholding the difference, if any, between the following amounts on the appropriate claims-processing system’s OTHER ADJUSTMENTS screen (as an Other Withholding Reason):
-
gross amount of the Veteran’s entitlement, and
-
amount being paid to dependents, as determined by the provisions of M21-1, Part VI, Subpart iii, 4.2.d-i.
-
Reference: For more information on preparing an apportionment award, see the VBMS Awards User Guide.
VI.iii.4.2.dPaying Disability Compensation to Dependents
In compensation cases, pay either the Dependency and Indemnity Compensation (DIC) rate or the rate of compensation payable to the Veteran, whichever is less. Note: The rate determined is subject to any authorized insurance deductions.
VI.iii.4.2.ePaying the DIC Rate to a Parent(s)
If the DIC rate is authorized to a parent(s),
- use the income of the parent(s) to determine the rate payable, and
- leave a remark on the award document that provides the income data used to justify the rate paid.
Note: Do not enter income data when generating the award.
VI.iii.4.2.fPaying Pension to Dependents
Use the table below to determine the rate payable to dependents in pension cases. Note: Unlike with disability compensation cases, disregard authorized insurance deductions in effect at the time of the Veteran’s disappearance.
| Step | Action |
|---|---|
| 1 | Generate an award in the claims-processing system, as if it were an apportionment of the Veteran’s benefits, paying the lesser of the
|
| 2 | Leave a remark on the award document that provides the income and net worth information used to justify the rate paid, but do not input this information when generating the award. Note : If the spouse is also awarded benefits, leave the remark referenced in the preceding paragraph on each award document associated with a separate award to a child. |
VI.iii.4.2.gExample 1: Determining Payment Rates
Situation : The Veteran was receiving compensation in the amount of $774, including an additional amount for a spouse, for a static disability evaluated as 70-percent disabling, subject to an insurance deduction in the amount of $15. The DIC rate available to the spouse is $564, based on the pay grade E-1 from 04/01/1990. Result: Since the DIC rate is less than the rate of compensation payable to the Veteran, the full DIC rate is payable to the spouse.
VI.iii.4.2.hExample 2: Determining Payment Rates
Situation : The Veteran was receiving compensation in the amount of $617, including an additional amount for a spouse, for a static disability evaluated as 60-percent disabling, subject to an insurance deduction of $22. The DIC rate available to the spouse is $597, based on pay grade E-3 from 04/01/1990. Result: Since the amount payable to the spouse, plus the insurance deduction, may not exceed the amount of compensation the Veteran was receiving, only $595, and not the full DIC rate, is payable to the spouse.
VI.iii.4.2.iExample 3: Determining Payment Rates
Situation : The Veteran was receiving pension in the amount of $628, including additional pension for a spouse, subject to an insurance deduction of $15. On the basis of the spouse’s income, the Survivors Pension rate would be $323.Result:** Since the amount of Survivors Pension based on the income of the spouse is less than the Veteran’s rate of pension, the Survivors Pension rate of $323 is payable to the spouse. The Veteran’s award makes no provision for continuation of the insurance deduction, and the Veteran’s gross entitlement is carried as a withholding.
3Continuation of Awards and Controls Upon the Disappearance of a Veteran
This topic contains information on the continuation of awards and controls upon the disappearance of a Veteran, including
- establishing control for a decision on presumption of death
- handling controls in
- pension cases, and
- compensation cases, and
- effective date for adjustment of compensation awards.
Revised June 10, 2026
VI.iii.4.3.aEstablishing Control for a Decision on Presumption of Death
For a decision on presumption of death, establish a Disappearance 7-Year Review diary. Reference: For more information on presumption of death, see 38 CFR 3.656(c).
VI.iii.4.3.bHandling Controls in Pension Cases
In pension cases
- cancel any controls established for a future examination, and
- consider the Veteran’s disability, income, and net worth status as static while the Veteran's whereabouts are unknown.
VI.iii.4.3.cHandling Controls in Compensation Cases
Do not cancel any control previously established for a future examination in a compensation case solely because a Veteran disappeared. Use the table below to decide how to handle controls in compensation cases involving a Veteran who has disappeared.
| If a … | Then … |
|---|---|
future examination is required under 38 CFR 3.327(b), but no control exists | input the appropriate control. |
diary control for a scheduled VA examination matures after a Veteran disappears | the rating activity decides if the compensable evaluation is static. |
Reference: For more information on how to handle a Veteran’s failure to report for examination, see
VI.iii.4.3.dEffective Date for Adjustment of Compensation Awards
The effective date for adjustment or discontinuance of compensation awards is the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS.
4Action Upon the Reappearance of a Veteran
Revised June 10, 2026
VI.iii.4.4.aActions Upon Reappearance of a Veteran
Follow the steps in the table below when a Veteran's whereabouts become known.
| Step | Action |
|---|---|
| 1 | Discontinue awards to dependents as of the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS. |
| 2 | Inform the payees the reason the awards were discontinued. |
| 3 | Amend the Veteran’s award to resume payments to the Veteran in accordance with the facts found. Notes:
|
References: For more information on
-
resumption of payments, see 38 CFR 3.158(c), and
-
payments to dependents upon the disappearance of the Veteran, see M21-1, Part VI, Subpart iii, 4.2.
End of Part VI, Subpart iii, Chapter 4