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Part X, Subpart ii, Chapter 5, Section CDue Process and Authorization Issues for Clear and Unmistakable Error (CUE)

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Revised May 13, 2026

X.ii.5.C.1.aHandling a CUE That, When Corrected, Will Not Benefit the Beneficiary

Follow the instructions in the table below after identification of a clear and unmistakable error (CUE) in a rating decision that, when corrected, will not benefit the beneficiary. These include CUEs that necessitate reduction or discontinuation of benefits, such as

  • assignment of a lower evaluation
  • severance of service connection (SC), or
  • correction of an effective date so that a benefit is not payable until a later date than previously assigned (functionally akin to severance of a benefit for a closed period of time).

Important: Always follow the instructions in the table below when correction of a CUE involves the severance of SC, even if severing SC will not affect the current or a prior combined disability evaluation.Exception: Disregard the instructions in the table below and follow the instructions in M21-1, Part X, Subpart ii, 5.C.1.b, if correction of an erroneously assigned effective date or disability evaluation does not result in a reduction in the current or a prior combined disability evaluation.Example: Follow the instructions in the table below if

  • the rating activity erroneously assigned an effective date of May 23, 2015, for a grant of SC for a disability the rating activity evaluated as 30-percent disabling
  • the Veteran has no other service-connected (SC) disabilities, and
  • the proper effective date is October 19, 2015.
StepAction

1

Establish end product (EP) 930. Exception: Do not establish EP 930 if a rating EP, such as EP 020, is already pending.

2

After the rating activity prepares a proposed rating decision finding CUE, as described in M21-1, Part X, Subpart ii, 3.A, and documents the approvals discussed in M21-1, Part X, Subpart ii, 5.A.3.e, take the below actions, depending on the EP.Was an EP 930 established in Step 1?

  • If yes ,
    • clear the EP 930, and
    • establish EP 600.
    • If no ,
      • promulgate the rating decision under the pending rating EP, and
      • establish EP 600.

Note: Promulgation of a rating decision prepared under EP 930 might be necessary under the following rare circumstance:

  • the EP 930 was established based on the discovery of multiple CUEs, and
  • correction of one or more of the CUEs would not constitute an adverse action.

3

Prepare a notice of proposed adverse action that meets the requirements set forth in M21-1, Part X, Subpart ii, 3.A.2. Important:

  • Except when the CUE only consists of the assignment of an incorrect effective date, notify the beneficiary that the effective date of the proposed action will be the first day of the month following a 60-day period that begins the date of the notice of the final rating decision.
    • If the beneficiary is a Veteran, invite a claim for pension, if
      • basic eligibility for pension exists, and
      • it appears pension might be the greater or only benefit to which the Veteran might be entitled.

Reference: For more information on establishing entitlement to pension, see M21-1, Part IX, Subpart i, 2.

4

Did the beneficiary request a hearing within 30 days of the date of the notice of proposed adverse action?

  • If yes , go to the next step after the Department of Veterans Affairs (VA)
    • holds the hearing, and
    • obtains any relevant evidence the beneficiary identified during the hearing (or determines the evidence is unavailable).
  • If no , go to the next step.

5

Once 65 days have passed since issuance of the notice of proposed adverse action, send the claim to the rating activity for a final rating decision and use the table below to determine the next action. If the rating decision ... Then ...

confirms and continues the prior rating decision (approved as necessary as specified in M21-1, Part X, Subpart ii, 5.A.3)

  • promulgate the rating decision
  • notify the beneficiary that VA will not take the action it proposed, and
  • disregard the remaining steps in this table.

corrects the error according to the procedures discussed in M21-1, Part X, Subpart ii, 5.A or B, whichever are more situationally appropriate

go to the next step.

6

Will promulgation of the rating decision result in an overpayment of benefits that equals or exceeds $40,000?

  • If yes ,
    • follow the instructions in M21-1, Part VI, Subpart i, 2.B.3.g, replacing the term “administrative decision” with “rating decision,” and
    • go to the next step following receipt of approval from Compensation Service or Pension and Fiduciary Service (P&F).
  • If no , go to the next step.

7

  • Establish EP 960, using the date VA discovered the error as the date of claim, and
    • promulgate the EP 600 rating decision, ensuring that
      • any inappropriate overpayment attributable to administrative error is
      • the beneficiary will continue to receive the current rate of payment until the first day of the month following a 60-day period that begins the date of the notice of the final rating decision (if applicable).

Example: If the date of the notice of the final rating decision is April 22, then

  • 60 days following that date is June 21, and
  • the first day of the following month is July 1.

Reference : For more information on EP 960 usage in relation to the adverse action proposal period, see M21-1, Part X, Subpart ii, 3.B.4.b.

8

  • Notify the beneficiary of the action taken
  • clear the EP 960, and
  • add the Clear and Unmistakable Error flash to the corporate record.

9

Update the CUE Tracker according to the instructions in M21-1, Part X, Subpart ii, 5.A.3.f.

References: For more information on

X.ii.5.C.1.bException to the Instructions in M21-1, Part X, Subpart ii, 5.C.1.a

Follow the instructions in the table below (instead of the instructions in M21-1, Part X, Subpart ii, 5.C.1.a) if

  • correction of an erroneously assigned effective date or disability evaluation, alone (with no other rating action), would not benefit the Veteran, and
  • correction of the error, whether made alone or concurrent with other rating related decisions (as described in M21-1, Part X, Subpart ii, 5.C.1.d), does not result in a reduction in the current or a prior combined disability evaluation.

Examples: These instructions are for application when, for instance,

  • correction of a CUE results in a reduction in the disability evaluation assigned to one of multiple compensable, SC disabilities but does not change the current or a prior combined disability evaluation
  • correction of a CUE, when made concurrent with other rating-related decisions, does not result in a reduction in the current or a prior combined disability evaluation, or
  • the rating activity erroneously assigned an effective date of May 23, 2015, for SC for a disability it evaluated as 0-percent disabling, when the proper effective date is October 19, 2015.
StepAction
1

Establish EP 930. Exception: Do not establish EP 930 if a rating EP, such as EP 020, is already pending.

2

The rating activity will

  • prepare a rating decision that corrects the error
  • update the Codesheet so that it reads how it should have read had no error been made, and
  • obtain approval of the rating decision from one of the officials identified in M21-1, Part X, Subpart ii, 5.A.3.d.
3

Establish EP 960, using the date VA discovered the error as the date of claim. Note: The authorization activity is responsible for establishing the EP.

4

Promulgate the rating decision.

5

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

6

Clear the EP 960.

7

Add the Clear and Unmistakable Error flash to the corporate record.

8

Update the CUE Tracker according to the instructions in M21-1, Part X, Subpart ii, 5.A.3.f.

X.ii.5.C.1.cAction to Take if a Proposed Adverse Action Would Affect a Veteran’s Entitlement to Benefits Under Another VA Program

When a proposed adverse action, if taken, would affect a Veteran’s entitlement to benefits under another VA program, send a copy of the notice of proposed adverse action to the appropriate point of contact for that program. Example: When proposing to sever SC, send a copy of the notice of proposed adverse action to the local Veteran Readiness and Employment (VR&E) activity if the record shows the Veteran receives training under 38 U.S.C. Chapter 31. Exception: Although correction of a CUE might affect a Veteran’s eligibility for VA health care, never send a copy of a notice of proposed adverse action to a VA medical center.

X.ii.5.C.1.dAddressing Multiple Issues in a Single Rating Decision

If multiple issues are pending rating action, and at least one of the issues involves the correction of a CUE, do not prepare a separate rating decision to address the CUE(s). Combine all the issues that are pending rating action into a single decision. Examples: Address in a single rating decision

  • a proposal to correct a CUE and a decision to grant an increased disability evaluation, or
  • a final decision to correct a CUE and a decision to grant SC.

Note: In the examples above, choose an effective date for the grant of SC or the increased disability evaluation in accordance with 38 CFR 3.400.

2Correction of a CUE That Requires the Severance of SC

This topic contains information about correcting a CUE that requires the severance of SC, including jurisdiction of the

  • rating activity over the severance of SC, and
  • authorization activity over the severance of SC.

Revised January 22, 2020

X.ii.5.C.2.aJurisdiction of the Rating Activity Over the Severance of SC

The rating activity may reverse a previous decision to grant SC under 38 CFR 3.105(d) if it finds that SC was granted based on a CUE. This means that the original decision had no plausible basis in the law or particular facts of the case. The error must be undebatable and not a mere difference in judgment between decision makers. When the rating activity discovers a CUE that will require the severance of SC to correct, follow the instructions in M21-1, Part X, Subpart ii, 5.C.1. Reference: For more information on severing SC, see M21-1, Part X, Subpart ii, 5.B.

X.ii.5.C.2.bJurisdiction of the Authorization Activity Over the Severance of SC

The authorization activity initiates action to sever SC if a CUE was made in a decision concerning

  • character of discharge (COD)
  • line of duty (LOD), or
  • willful misconduct.

Follow the instructions in M21-1, Part X, Subpart iv, 1.F after identifying the type of CUE referenced in the preceding paragraph. Following completion of the administrative decision referenced in M21-1, Part X, Subpart iv, 1.F.1.a, follow the instructions in M21-1, Part X, Subpart ii, 5.C.1, even if the severance of SC would not result in a reduction or discontinuance of benefits. References: For more information on decisions concerning

End of Part X, Subpart ii, Chapter 5, Section C

This text is a rendering of Part X, Subpart ii, Chapter 5, Section C. The official version is the one that governs your claim.

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