Part VI, Subpart iv, Chapter 1, Section AEffects of an Individual’s Incarceration on Department of Veterans Affairs (VA) Benefits

0 percent, but the Veteran is entitled to

• special monthly compensation (SMC) under 38 U.S.C. 1114(k), or
• a protected rate under 38 CFR 3.959 (statutory SMC Q)

38 CFR 3.665(d)(2) requires VA to reduce the Veteran’s monthly award to one half of the amount payable for an SC disability evaluated as 10-percent disabling.

10 percent

20 percent or higher

38 CFR 3.665(d)(1) requires VA to reduce the Veteran’s monthly award to the amount payable for an SC disability evaluated as 10-percent disabling.

VA increased the overall disability evaluation from a level of 10 percent to a level of 20 percent or higher

increase the Veteran’s benefits to the rate payable for an SC disability evaluated as 10-percent disabling during the period of incarceration.

the Veteran’s overall disability evaluation was 20 percent or higher before VA granted entitlement to an increased evaluation.

process the corresponding rating decision but do not increase the Veteran’s benefits to reflect the increased evaluation until incarceration ends.

Establish end product (EP) 290, using the claim label

• Bureau of Prisons Match or Social Security Prison Match (whichever applies) if notice of incarceration was obtained via the data-matching programs discussed in M21-1, Part XIV, 7, or
• Incarceration Adjustment in all other instances.

VA’s data-matching program with BOP or SSA

date of the 800 series work item referenced in M21-1, Part XIV, 7.1.b. Notes:

• Using the “run date” that appears in the upper right corner of the worksheet referenced in M21-1, Part XIV, 7.1.b, as the DOC is also acceptable, as this date and the date of the 800 series work item will always be the same.
• Do not use as the DOC the date the worksheet was uploaded into the electronic claims folder (eFolder).

means other than the data-matching programs referenced in the previous row

date VA received the notice.

2

If the beneficiary is in receipt of disability compensation, add Potential Under/Overpayment as a special issue.

3

Did VA receive the notice of incarceration from the beneficiary?

• If yes , go to Step 6.
• If no , go to the next step.

4

Is the notice VA received “official,” as discussed in M21-1, Part VI, Subpart iv, 1.A.3.c?

• If yes , go to the next step.
• If no , go to Step 7.

5

Has VA obtained the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b?

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

Notes:

• Although the worksheets referenced in M21-1, Part XIV, 7.1.b, constitute official notice of incarceration, they do not provide claims processors all the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d.
• A VA and Federal Bureau of Prisons Computer Match worksheet constitutes confirmation from an official source that the named prisoner was
  • convicted of a felony or misdemeanor, and
  • imprisoned in a Federal penal institution for more than 60 days.
• If the type of offense is unknown/missing from a VA and Federal Bureau of Prisons Computer Match worksheet, confirmation of the type of conviction must be obtained from an official source, unless
  • the inmate locator on the BOP website shows an actual or projected release date one year or more from the computation date, or
  • the benefit that is subject to adjustment (discontinuation) is pension.
• The date listed in the COMPUTATION DATE OF CURRENT SENTENCE field of the VA and Federal Bureau of Prisons Computer Match worksheet does not reliably represent the date of incarceration.

6

Request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source.

• If VA requests the information (by letter, for example), go to Step 13.
  • If VA obtains the information without issuing a request (through telephone contact or by accessing a correctional facility’s website, for example), go to Step 16.

Note: Allow entities from which VA requests information concerning an individual’s incarceration 30 days to respond. Reference: For a discussion of the available means for requesting/obtaining information from an official source, see M21-1, Part VI, Subpart iv, 1.A.3.e.

7

Attempt to corroborate the unofficial notice and request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d through official sources. Note: Allow entities from which VA requests corroboration of and information concerning an individual’s incarceration 30 days to respond. Reference: For a discussion of the available means for requesting/obtaining information/corroboration from official sources, see M21-1, Part VI, Subpart iv, 1.A.3.e.

8

Use the table below to determine the actions to take based on how VA obtained the information. If VA … Then …

requests the information/corroboration referenced in Step 7 (by letter, for example)

go to the next step.

obtains the information/corroboration referenced in Step 7 without issuing a request (through telephone contact or by accessing a correctional facility’s website, for example)

go to Step 16.

confirms through official sources – without issuing a request – that the beneficiary or dependent is/was not incarcerated

• clear the EP 290, and
• take no further action.

9

Did the entity from which VA requested information/corroboration respond within 30 days?

• If yes , go to Step 12.
• If no , go to the next step.

10

Send a follow-up request and allow 30 days for a response.

11

Did the entity to which VA sent a follow-up request respond within 30 days?

• If yes , go to the next step.
• If no ,
  • clear the EP 290, and
  • take no further action.

12

Use the table below to determine the actions to take based on whether the notice of incarceration was corroborated. If the unofficial notice of incarceration … Then …

is corroborated

go to Step 16.

is not corroborated

• clear the EP 290, and
• take no further action.

13

Did the entity from which VA requested the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d respond within 30 days?

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

Note: If the VA Form 21-4193, Notice to Department of Veterans Affairs of Veteran or Beneficiary Incarcerated in Penal Institution , or equivalent, requested from the entity does not contain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d, claims processors are required to attempt to contact the entity by telephone. When telephone contact is unsuccessful, send a follow-up letter requesting the specific missing information and allow 30 days for a response.

14

Send a follow-up request for the information and allow 30 days for a response.

15

Did the entity to which VA sent a follow-up request respond within 30 days?

• If yes , go to the next step.
• If no ,
  • clear the EP 290
  • establish EP 600, using the current date as the DOC and the Bur[eau] of Prisons or SSA Prison Match claim label, if applicable
  • add Potential Under/Overpayment as a special issue, if the beneficiary is in receipt of disability compensation, and
  • go to Step 17.

16

Use the table below to determine the actions to take based on the information received concerning the incarceration. If information obtained from official sources shows the beneficiary or dependent was incarcerated … Then …

• for reasons other than conviction of a

  • felony (if the beneficiary receives disability compensation or DIC), or

  • felony or misdemeanor (if the beneficiary receives pension)

  • less than 60 days after conviction for a felony or misdemeanor, or

  • for an offense that, due to delays in criminal justice processing (pending the assignment of a trial date, for example), has yet to result in conviction or acquittal/dismissal

  • clear the EP 290, and

  • take no further action.

Important: If the beneficiary was the source of the notice of incarceration, send notification as to the reason why no award adjustment is necessary.
at least 60 days after conviction for a

• felony (if the beneficiary receives disability compensation or DIC), or

• felony or misdemeanor (if the beneficiary receives pension)

• clear the EP 290

• establish EP 600, using the current date as the DOC and the Bur[eau] of Prisons or SSA Prison Match claim label, if applicable

• add Potential Under/Overpayment as a special issue, if the beneficiary is in receipt of disability compensation, and

• go to the next step.

17

• Prepare a notice of proposed adverse action and send the notice to the beneficiary.
  • A screenshot of the Veterans Service Representative Assistant’s 61-Day Rule Incarceration Calculator showing the proposed reduction date must be uploaded to the eFolder each time a notice of proposed adverse action is sent.
  • If the incarcerated beneficiary is an apportionee,
    • disregard the remaining steps in this table, and
    • follow the instructions in M21-1, Part VI, Subpart iv, 1.B.6.a.

Important:

• If the address of family members that are eligible for an apportionment of an incarcerated Veteran’s, surviving spouse’s, or surviving child’s (DIC only) benefits is known, send VA Form 21-0788, Information Regarding Apportionment of Beneficiary’s Award, to them at the same time the notice of proposed adverse action is sent to the beneficiary.
• A beneficiary is entitled to due process and the notice described in this cell each time incarceration (following conviction of a felony or misdemeanor, which ever applies) in excess of 60 days occurs. This includes re-incarceration (after VA takes the actions described in M21-1, Part VI, Subpart iv, 1.A.5) because of
  • a parole violation, or
  • dismissal from a halfway house or work-release program.
• Send notice of proposed adverse action to a beneficiary at the current address of record, even if the incarcerated individual is a dependent (pension cases only).
• If the incarcerated beneficiary is an apportionee to whom VA is apportioning a Veteran’s disability compensation or a surviving spouse’s DIC, there is no need to send notice of proposed adverse action to the Veteran or surviving spouse.
• Do not send notice of proposed adverse action to the address of a prison unless that address happens to be a beneficiary’s current address of record.
• If the register or identification number a prison uses to identify an incarcerated beneficiary is known, include it after the beneficiary's name when sending correspondence to the beneficiary at the prison address. (The worksheets referenced in M21-1, Part XIV, 7.1.b, provide these numbers.)

References: For more information on

• due process and the issuing of notices of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A
• the amount to which VA must reduce disability compensation and DIC when a Veteran or surviving spouse is incarcerated, see M21-1, Part VI, Subpart iv, 1.A.2.a and e, respectively
• apportioning an incarcerated Veteran’s disability compensation to dependent(s), see M21-1, Part VI, Subpart iv, 2.B.2
• apportioning an incarcerated beneficiary’s DIC to other family members, see M21-1, Part VI, Subpart iv, 1.B.3 and 4, and
• apportioning an incarcerated
  • Veteran’s pension to dependents, see M21-1, Part VI, Subpart iv, 2.B.1
  • surviving spouse’s Survivors Pension to other family members, see M21-1, Part VI, Subpart iv, 1.B.2, and
  • child’s pension to other family members, see 38 CFR 3.666(b)(2).

18

Did the beneficiary respond to the notice of proposed adverse action within 65 days of the date VA sent the notice?

• If yes , go to the next step.
  • If no , go to Step 20.

Note : Follow the instructions in M21-1, Part X, Subpart ii, 3.B, if a beneficiary requests a hearing in response to the notice of proposed adverse action.

19

Did the beneficiary submit evidence showing an adjustment of the award due to incarceration is not in order?

• If yes ,
  • clear the EP 600
  • notify the beneficiary that VA will not reduce or discontinue (whichever applies) benefits, and
  • disregard the remaining steps in this table.
• If no , go to the next step.

20

Reduce or discontinue benefits under the EP 600 as proposed in the notice of proposed adverse action. Note: To execute the reduction or discontinuance of benefits in the claims-processing system based on a beneficiary’s incarceration, follow the instructions in the VBMS - Awards (VBMS-A) User Guide.

21

Notify the beneficiary of the action taken. Reference: For more information on issuing decision notices, see M21-1, Part VI, Subpart i, 1.B.

by telephone

• document the call on VA Form 27-0820e, Report of Incarceration, and
• save a copy of the form in the beneficiary’s claims folder.

by e-mail or fax

save a copy of the e-mail or fax in the beneficiary’s claims folder.

from a website

• make a screen print of the relevant webpage, and
• associate a copy of the screen print with the beneficiary’s claims folder.

Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue:

• Incarceration Adjustment(disability compensation), or
  • PMC-Incarceration Adjustment (DIC).

Reference: For more information on EP codes and controls, see M21-4, Appendix B.

Did VA receive the notice directly from one of the official sources referenced in M21-1, Part VI, Subpart iv, 1.A.3.b?

• If yes , go to Step 8.
  • If no , go to the next step.

Important: Go to the next step if the beneficiary submitted the notice, even if the notice was accompanied by what appears to be evidence from an official source.

Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation

• is received immediately (on the same day as an attempt(s) is made), go to Step 8, or
• cannot be immediately obtained, go to the next step.

Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice.

Concurrent with the action described in the previous step, prepare and send to the beneficiary a letter that

• notifies the beneficiary of the requirement that VA obtain confirmation from an official source that
  • charges were dismissed or overturned, or
  • the type of conviction was changed, and
• encourages the beneficiary to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.

Was confirmation received from an official source within 30 days?

• If yes , go to Step 8.
• If no , go to the next step.

• Notify the beneficiary that VA cannot restore benefits without confirmation from an official source that
  • charges were dismissed or overturned, or
  • the type of conviction was changed.
• Clear the pending EP 290.
• Disregard the remaining steps in this table.

Remove the Incarceration corporate flash (if present).

Restore benefits that were reduced due to incarceration and to which the beneficiary is otherwise entitled. Use the table below to determine the correct effective date. Important:

• Do not restore to a primary beneficiary benefits that VA apportioned to dependents as a result of the primary beneficiary’s incarceration.
• Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment.

within one year of the date

• charges were dismissed or overturned, or
• the type of conviction was changed

use the same effective date to restore benefits that VA used when it reduced benefits because of incarceration.

one year or more after the date

• charges were dismissed or overturned, or
• the type of conviction was changed

restore benefits effective the date VA received the notice referenced in the opening sentence of this block.

Did the former apportionee provide the notice?

• If yes , go to the next step.
• If no , disregard the remaining steps in this table. No further action is required.

Did the former apportionee submit VA Form 21-0788 with the notice?

• If yes , go to the next step.
  • If no ,
    • treat the notice as a request for an application, and
    • disregard the remaining steps in this table.

Reference: For more information on treating correspondence from a potential claimant as a request for an application, see M21-1, Part II, Subpart iii, 2.G.1.

Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue:

• Incarceration Adjustment(disability compensation), or
  • PMC-Incarceration Adjustment (DIC).

Reference: For more information on EP codes and controls, see M21-4, Appendix B.

Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation

• is received immediately (on the same day as an attempt(s) is made), go to the next step, or
• cannot be immediately obtained, go to Step 6.

• Change the EP 290 to EP 130.
  • Decide the new claim for an apportionment based on the regulations in effect at the time the claim was received.
  • Disregard the remaining steps in this table.

Important: If entitlement to an apportionment exists, the proper effective date is the date VA received the VA Form 21-0788 referenced in Step 2. Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment. References: For more information on

• processing claims for an apportionment, see M21-1, Part VI, Subpart iv, 2.A, and
• the difference between the effective date of entitlement and the effective date of payment , see M21-1, Part VI, Subpart i, 1.A.2.b.

Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice.

Concurrent with the action described in the previous step, prepare and send to the former apportionee a letter that

• notifies the former apportionee of the requirement that VA obtain confirmation from an official source that
  • charges were dismissed or overturned, or
  • the type of conviction was changed, and
• encourages the former apportionee to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.

Was confirmation received from an official source within 30 days?

• If yes , follow the instructions in Step 5.
• If no , go to the next step.

• Notify the former apportionee that VA cannot resume the apportionment without confirmation from an official source that
  • charges were dismissed or overturned, or
  • the type of conviction was changed.
• Clear the pending EP 290.

all of the Veteran’s disability compensation to recoup separation benefits

limit the amount of the withholding to the rate specified in M21-1, Part VI, Subpart iv, 1.A.2.a until incarceration ends. (The Veteran, in this case, receives no disability compensation while incarcerated.)Note: If entitlement exists, VA may apportion to the Veteran’s dependent(s) the remaining disability compensation that VA does not withhold during incarceration. When incarceration ends, the apportionment ends, as well.

some but not all of the Veteran’s disability compensation to recoup separation benefits

• limit the amount of disability compensation that is payable to the Veteran during the period of incarceration to the rate specified in M21-1, Part VI, Subpart iv, 1.A.2.a, and
• suspend the withholding for recoupment of separation benefits until incarceration ends.

1

Did VA receive notice of incarceration from the claimant?

• If yes , go to Step 4.
• If no , go to the next step.

2

Is the notice VA received “official,” as discussed in M21-1, Part VI, Subpart iv, 1.A.3.c?

• If yes , go to the next step.
• If no , go to Step 4.

3

Has VA obtained the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b?

• If yes , go to Step 8.
• If no , go to the next step.

4

Attempt to corroborate the unofficial notice of incarceration and request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b.

• If VA requests the information (by letter, for example), go to the next step.
  • If VA obtains the information without issuing a request (through telephone contact or by accessing a correctional facility’s website, for example), go to Step 8.

Notes:

• Do not establish a separate EP under which to complete the development actions.
• Allow entities from which VA requests information concerning an individual’s incarceration 30 days to respond.

Reference: For a discussion of the available means for requesting/obtaining information from an official source, see M21-1, Part VI, Subpart iv, 1.A.3.e.

5

Did the entity from which VA requested the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d respond within 30 days?

• If yes , go to Step 8.
  • If no , go to the next step.

Note: If the VA Form 21-4193 or equivalent, requested from the entity does not contain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d, claims processors are required to attempt to contact the entity by telephone. When telephone contact is unsuccessful, send a follow-up letter requesting the specific missing information and allow 30 days for a response.

6

Send a follow-up request for the information and allow 30 days for a response.

7

Did the entity to which VA sent a follow-up request respond within 30 days?

• If yes , go to the next step.
• If no ,
  • take no further action in this table, and
  • pay the full monetary rate due if benefits are granted.

8

Use the table below to determine the actions to take based on the information received concerning the incarceration. If information obtained from official sources shows the claimant was incarcerated ... Then ...

• for reasons other than conviction of a

  • felony (if the claim is for disability compensation or DIC), or
  • felony or misdemeanor (if the claim is for pension

• less than 60 days after conviction for a felony or misdemeanor, or

• for an offense that, due to delays in criminal justice processing (pending the assignment of a trial date, for example), has yet to result in conviction or acquittal/dismissal

• take no further action regarding the incarceration, and

• develop the claim as normal.

at least 60 days after conviction for a felony (if the claim is for compensation or DIC)

• continue development of any non-incarceration issues, as necessary, and
  • if entitlement to compensation or DIC is granted
    • pay reduced monetary benefits as described in M21-1, Part VI, Subpart iv, 1.A.2.a and e simultaneously with the original award generation, and
    • notify the beneficiary of the action taken.

Notes:

• Notice of proposed adverse action is not required prior to paying reduced benefits in this situation.
• Payments should be reduced effective the 61st day of incarceration.

at least 60 days after conviction for a felony or misdemeanor (if the claim is for pension)

deny entitlement to pension benefits.

Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue:

• Incarceration - Resumption of Benefits (290INCROB) , or
  • PMC - Incarceration - Resumption of Benefits (290INCROBPMC).

Reference: For more information on EP codes and controls, see M21-4, Appendix B.

Did VA receive the notice directly from one of the one of the official sources referenced in M21-1, Part VI, Subpart iv, 1.A.3.b?

• If yes ,
  • disregard the remaining steps in this table, and
  • follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e.
  • If no , go to the next step.

Important: Go to the next step if the beneficiary submitted the notice, even if the notice was accompanied by what appears to be evidence from an official source.

Attempt to obtain confirmation that incarceration has ended through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation

• is received immediately (on the same day as an attempt(s) is made),
  • disregard the remaining steps in this table, and
  • follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e, or
• cannot be immediately obtained, go to the next step.

Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation that incarceration has ended.

Concurrent with the action described in the previous step, prepare and send to the beneficiary a letter that

• notifies the beneficiary of the requirement that VA obtain confirmation incarceration has ended from an official source, and
• encourages the beneficiary to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.

Was confirmation that incarceration has ended received from an official source within 30 days?

• If yes ,
  • disregard the remaining step in this table, and
  • follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e.
• If no , go to the next step.

• Notify the beneficiary that VA cannot resume the payment of benefits that VA reduced or discontinued due to incarceration without confirmation from an official source that incarceration has ended.
• Clear the pending EP 290.
• Disregard the remaining steps in this table.

• receives notice from a parole board or other official source that indicates incarceration will end on a specific date in the future , and
• receives the notice no more than 30 days prior to the date incarceration will end

it is acceptable to resume or adjust the beneficiary’s award while the beneficiary or dependent is still incarcerated to reflect that incarceration will end on the future date.Important: Inform the beneficiary in the corresponding decision notice that if incarceration does not end on the specified date, VA will discontinue or reduce benefits without advance notice, effective the same date it took the action described in this block.

paid disability compensation in lieu of pension to a Veteran whose benefits were subject to discontinuance due to incarceration

award whichever benefit is more favorable to the Veteran when incarceration ends.

was paying the beneficiary Section 306 Pension prior to incarceration

resume payment of the same benefit when incarceration ends, as long as entitlement still exists. Important: Do not switch the beneficiary to current-law pension unless the beneficiary specifically elects that benefit.

receives acceptable notice that incarceration has ended per M21-1, Part VI, Subpart iv, 1.A.5.a for the resumption of a pension award

• a new report of income and net worth is not required prior to resumption for pension purposes, and
• updated income found via the SSA INQUIRY command in VBMS must be utilized when resuming the beneficiary’s award.

within one year of the date incarceration ended

incarceration ended.

one year or more after the date incarceration ended

VA received notice incarceration ended.

Did the former apportionee provide the notice?

• If yes , go to the next step.
  • If no , disregard the remaining steps in this table. No further action is required.

Note: If incarceration of the former apportionee required VA to remove them as a dependent from a Veteran’s or surviving spouse’s pension award, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.a-e, to determine whether and from which effective date it is appropriate to add the former apportionee back onto the primary beneficiary’s award.

Did the former apportionee submit VA Form 21-0788 with the notice?

• If yes , go to the next step.
  • If no ,
    • treat the notice as a request for an application, and
    • disregard the remaining steps in this table.

Reference: For more information on treating correspondence from a potential claimant as a request for an application, see M21-1, Part II, Subpart iii, 2.G.1.

Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue:

• Incarceration Adjustment(disability compensation), or
  • PMC-Incarceration Adjustment (DIC or pension).

Reference: For more information on EP codes and controls, see M21-4, Appendix B.

Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation

• is received immediately (on the same day as an attempt(s) is made), go to the next step, or
• cannot be immediately obtained, go to Step 6.

• Change the EP 290 to EP 130.
  • Decide the new claim for an apportionment based on the regulations in effect at the time the claim was received.
  • Disregard the remaining steps in this table.

Important: If entitlement to an apportionment exists, the proper effective date is the date VA received the VA Form 21-0788 referenced in Step 2. Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment. Reference s** : For more information on

• processing claims for an apportionment, see M21-1, Part VI, Subpart iv, 2.A, and
• the difference between the effective date of entitlement and the effective date of payment , see M21-1, Part VI, Subpart i, 1.A.2.b.

Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice.

Concurrent with the action described in the previous step, prepare and send to the former apportionee a letter that

• notifies the former apportionee of the requirement that VA obtain confirmation from an official source that incarceration has ended, and
• encourages the former apportionee to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.

Was confirmation received from an official source within 30 days?

• If yes , follow the instructions in Step 5.
• If no , go to the next step.

• Notify the former apportionee that VA cannot resume the apportionment without confirmation from an official source that incarceration has ended.
• Clear the pending EP 290.