Revised February 26, 2021
X.v.1.B.1.aDefinition: Equitable Relief
Equitable relief is a remedy for an injustice done to a claimant resulting from mistakes made in applying rules and regulations that either
- deprived the claimant of benefits, or
- caused the claimant to suffer a loss because he/she relied on an erroneous decision.
X.v.1.B.1.bStatutory Authority for Equitable Relief
The Secretary of the Department of Veterans Affairs (VA) has statutory authority to provide equitable relief.
- 38 U.S.C. 503(a) gives the Secretary authority to provide whatever relief is determined equitable if a claimant is denied VA benefits because of an administrative error by the Federal government or any of its employees.
- 38 U.S.C. 503(b) gives the Secretary authority to provide equitable relief if a claimant suffered loss as a result of relying on an erroneous determination by VA.
Reference: For more information on equitable relief, see 38 CFR 2.7.
X.v.1.B.1.cDelegation to Review Requests and Recommend Grants of Equitable Relief
The authority to grant equitable relief has not been delegated and is retained by the Secretary. However, the Secretary has delegated the authority to review requests for equitable relief and to recommend relief to the head of the administration having responsibility for the benefit at issue, any concerned staff office, or by the Chairman of the Board of Veterans Appeals. References: For more information on
- delegation of authority for equitable relief, see 38 CFR 2.7(c), and
- requesting equitable relief from Compensation Service or Pension and Fiduciary (P&F) Service, see M21-1, Part X, Subpart v, 1.B.1.d and h-j.
X.v.1.B.1.dWho May Request Equitable Relief
Requests to the Executive Director of Compensation Service or P&F Service for equitable relief may be made by
- a claimant or someone acting on behalf of a claimant, or
- a regional office (RO).
Note: When a claimant or someone acting on behalf of a claimant specifically requests equitable relief, submit the request to the Executive Director of Compensation Service (21C) or P&F Service (21PF).
X.v.1.B.1.eRequirements for Requesting Equitable Relief
Thorough documentation of a claim for equitable relief is essential. All RO requests for equitable relief must
- provide evidence to clearly show that the requirements for consideration are met, and
- include a detailed, factual determination of loss.
References: For more information on the requirements for
- consideration, see M21-1 Part X, Subpart v, 1.B.1.f, and
- demonstration of loss, see M21-1 Part X, Subpart v, 1.B.1.g.
X.v.1.B.1.fRequirements for Consideration
The table below shows the requirements for consideration of equitable relief under 38 U.S.C. 503(a) and 38 U.S.C. 503(b).
| Consideration under … | Requires that … |
|---|---|
a claimant has or had eligibility and entitlement under the current law. | |
evidence indicates that a claimant suffered a loss and all the following conditions also exist:
|
Important: 38 U.S.C. 503(b) does not require that a claimant has or had a legal right to VA benefits.
X.v.1.B.1.gRequirements for Demonstration of Loss
The table below shows the evidence required to demonstrate loss in claims for equitable relief.
| If the loss involves … | Then the claimant must provide … |
|---|---|
finances | a statement listing obligated expenses incurred because the claimant relied on the erroneous determination. |
| documentation showing
|
X.v.1.B.1.hSubmitting a Request for Equitable Relief to P&F Service
Follow the steps in the table below to submit a request for equitable relief to P&F Service.
| Step | Action |
|---|---|
| 1 | Use a standard letter format to request equitable relief consideration, including
Reference: For more information on the standard request letter format, see M21-1, Part X, Subpart v, 1.A.1.e. |
| 2 | Ensure that full supporting documentation is in the claims folder and/or the electronic claims folder (eFolder). |
| 3 | File the letter in the claims folder or upload it into the eFolder. |
| 4 |
|
X.v.1.B.1.iSubmitting a Request for Equitable Relief to Compensation Service
Follow the steps in the table below to submit a request for equitable relief to Compensation Service.
| Step | Action |
|---|---|
| 1 | Prepare a letter to the Executive Director of Compensation Service, using the format of the letter displayed in M21-1, Part X, Subpart v, 1.B.1.j. |
| 2 | Upload the letter and all other relevant documentation into the eFolder. |
| 3 | Add the
|
| 4 | Is the request subject to National Work Queue routing?
|
Reference: For more information on the action described in the preceding bullet, see the Veterans Benefits Management System Core User Guide.
X.v.1.B.1.jFormat of Letter to Compensation Service for Consideration of a Request for Equitable Relief
Follow the format of the letter below when preparing a letter to Compensation Service for consideration of a request for equitable relief. — DEPARTMENT OF VETERANS AFFAIRS[RO name][RO address][current date] Executive Director In Reply Refer To: Compensation Service (214D) [RO number] Department of Veterans Affairs [file number] Central Office [Veteran’s name] 810 Vermont Ave. NW Washington, DC 20420 SUBJECT : Request for equitable relief in accordance with 38 U.S.C 503 and M21-1, Part X, Subpart v, 1.B.1.i BACKGROUND INFORMATION : [Enter service information, to include branch(es), date(s), and place(s) of service.]STATEMENT OF FACTS AND DISCUSSION : [Provide the date of the original rating, the date the error was found, the date the Veteran was notified, the amount of overpayment involved, and all other pertinent actions and facts of the case.]Example #1: A benefit was granted in error in a 1976 rating decision and the RO discovered the error in 1985. The Veteran was notified in June of 1985 that an error was found. The RO is reducing the total compensation payment and will recoup the overpayment. The Veteran requests equitable relief. Example #2: _In January of 2003, the Veteran’s widow (Emma Smith) was awarded Dependency and Indemnity Compensation. On June 7, 2005, Mrs. Smith submitted a claim for a child (Junior), who Mrs. Smith alleged was permanently incapable of self-support. VA denied the widow’s claim by rating decision dated August 8, 2006. On October 13, 2006, Mrs. Smith filed a notice of disagreement (NOD). On May 4, 2007, a rating decision established permanent incapacity for self-support for Junior, with an effective date of June 7, 2005. A letter, dated July 26, 2007, notified Mrs. Smith of the rating decision. Mrs. Smith filed an NOD on August 21, 2007, asserting that VA should have assigned an earlier effective date. A statement of the case (SOC) was promulgated on March 11, 2008, which denied entitlement to an effective date earlier than June 7, 2005. On March 20, 2008, Mrs. Smith filed an appeal to the Board of Veterans Appeals (BVA). On April 8, 2011, BVA rendered a decision to deny entitlement to an effective date earlier than June 7, 2005. _ _Mrs. Smith is claiming she was never advised of the applicable benefits for a child that is permanently incapable of self-support. She is requesting equitable relief on this basis in the form of an earlier effective date for the establishment of permanent incapacity for self-support for Junior to June 26, 1980, the date he turned 18. The total amount of equitable relief is $91,491.70, which represents the monetary loss of benefits from June 26, 1980, to June 7, 2005. _ QUESTION(S) AT ISSUE : Example: Is the spouse entitled to equitable relief? RECOMMENDATION : [Make a recommendation based on the facts of the case.]Example: _Entitlement to an effective date earlier than June 7, 2005, was denied by rating decision, an SOC, and BVA because there is no evidence that entitlement arose prior to June 7, 2005. _ 38 U.S.C. 503(b) provides: “If the Secretary determines that a veteran, surviving spouse, child of a veteran, or other person has suffered loss as a consequence of reliance upon a determination by the Department of eligibility or entitlement to benefits, without knowledge that it was erroneously made, the Secretary may provide such relief on account of such error as the Secretary determines equitable, including the payment of moneys to any person whom the Secretary determines is equitably entitled to such moneys.” The evidentiary record does not support the notion that Mrs. Smith suffered a loss as a consequence of reliance upon a determination by VA. Loss of income has not been shown. There is no basis for consideration of equitable relief under 38 U.S.C. 503(b). We find that Mrs. Smith had ample opportunity to claim Junior at any time on or after June 26, 1980, and incurred no loss as a consequence of reliance upon a determination by VA of eligibility or entitlement to benefits, without knowledge that it was erroneously made. SIGNATURE : _ _ PRINTED NAME AND TITLE : _ _
End of Part X, Subpart v, Chapter 1, Section B