Select Page

M21-1, Part III, Subpart i, Chapter 2, Section C – Ancillary Benefits and Other Issues Involving Pre-Discharge Claims

Overview


In this Section

This section contains the following topics:
Topic
Topic Name
1
2
3
4
5

1.  VR&E Claims


Introduction

This topic contains information on the processing of VR&E claims filed prior to separation, including

Change Date

August 5, 2016

III.i.2.C.1.a.Handling VR&E Claims Received From Service Members

Intake sites may receive claims from service members for Vocational Rehabilitation and Employment (VR&E) benefits under 38 U.S.C. Chapter 31 that they may use while on active duty or after separation.

III.i.2.C.1.b.Actions Intake Sites Must Take Upon Receipt of VA Form 28-1900

Follow the steps in the table below within five days of receipt when an intake site receives a VA Form 28-1900, Disabled Veterans Application for Vocational Rehabilitation.
Step
Action
1
Establish end product (EP) 095 with the claim label Pre-D Memo Rating for Ch31 Purposes.
2
Ensure the claimant’s service treatment records (STRs) are available in the Veterans Benefits Management System (VBMS).
3
Add a note in VBMS that states VA Form 28-1900 was received and
  • set a 10-day suspense date with the reason:  Paperless Claims Processing Case, Awaiting: Scanning, and
  • forward VA Form 28-1900 to the appropriate scanning vendor.
4
The station having jurisdiction over a claimant’s VR&E claim is responsible for preparing the memorandum rating decision.
 
Note:  The regional office (RO) should not delay processing VA Form 28-1900pending a decision on the pre-discharge claim.
References:  For more information on

2.  Loan Guaranty Claims


Introduction

This topic contains information regarding loan guaranty applications submitted with pre-discharge claims, including

Change Date

August 5, 2016

III.i.2.C.2.a.Service Members’ Eligibility for Home Loan Guaranty

A Veteran who has a compensable, service-connected (SC) disability and purchases a home using Department of Veterans Affairs’ (VA’s) home loan guaranty is eligible for a waiver of the VA home loan funding fee.
A service member who is separating from service may be eligible for the funding fee waiver if the evidence of record establishes he/she will be in receipt of VA disability compensation after separation.

III.i.2.C.2.b.Intake Site Responsibilities Upon Receipt of VA Form 26-1880

  • forward the form to the appropriate Regional Loan Center (RLC)
  • ask the service member whether he/she plans to use VA’s home loan guaranty to purchase a home prior to separation, and, if so,
  • advise the service member to ensure his/her lender knows a pre-discharge claim is pending with VA.
Reference:  For more information on the appropriate RLC, see the Loan Guaranty Service web site RLC map.

III.i.2.C.2.c.  RLC Action Upon Receipt of VA Form 26-8937 From a Service Member

Upon receipt of VA Form 26-8937, Verification of VA Benefits, from a service member, RLCs request an eligibility determination from the SOJ by sending an e-mail to a designated point of contact at the appropriate site.
Reference:  For more information on the appropriate regional benefit offices, seethe map of regional benefit office websites.

III.i.2.C.2.d.     SOJ Responsibility for Preparing Memorandum Rating Decisions Upon Receipt of a Request for an Eligibility Determination From an RLC

Upon receipt of a request for an eligibility determination from an RLC, the SOJ must prepare a memorandum rating decision for inclusion in the service member’s claims folder if
  • the service member’s pre-discharge claim has not yet been decided, and
  • the evidence of record shows the service member is at least 10-percent disabled due to SC disability(ies).

III.i.2.C.2.e. Text the SOJ Must Use When Responding to a Request for an Eligibility Determination From an RLC

Use the table below to determine the text that the SOJ must use when responding to a request for an eligibility determination from an RLC.

If …

Then the SOJ must include the following text in the e-mail response to the RLC …

a completed rating decision already exists
The claimant will receive service-connected disability compensation of $[amount] monthly upon discharge from active duty.
the SOJ prepared a memorandum rating decision
The claimant will be entitled to service-connected disability compensation of at least [10% rate] upon discharge from active duty.
the evidence of record is insufficient for rating purposes
The claimant has a Pre-Discharge claim pending; however, the evidence available is not sufficient to determine whether a compensable service-connected disability exists.
the evidence of record is adequate for rating purposes but does not show that a compensable, SC disability exists
The evidence of record does not show the claimant has a service-connected disability that is compensable.
 
Note:  The SOJ must establish an EP 290 with the claim label Pre-Discharge – LGY Determination to control an RLC’s request for an eligibility determination.
References:  For more information about

3. Claims Involving a Resumption of Compensation


Introduction

This topic contains information on resuming compensation for service members who file pre-discharge claims, including

Change Date

September 27, 2017

III.i.2.C.3.a.Handling Claims for Veterans Returning From Active Duty

When a Veteran in receipt of disability compensation returns to active duty, VA must terminate his/her disability compensation.
Once the Veteran is released from active duty, VA may resume benefits immediately.
Note:  The rating activity must re-evaluate any non-static disabilities for which the designated date for the future review examination is not a future date beyond the service member’s separation date.  (A disability is considered static unless the prior rating decision indicates a routine future examination of the disability is necessary).
Reference:  For more information on resuming benefits after a Veteran returns from active duty, see M21-1, Part III, Subpart v, 4.C.7.

III.i.2.C.3.b.Responsibility and EPs for Resuming Compensation

Use the table below to determine who is responsible for processing a pre-discharge claim for resumption of compensation.

If the service member is claiming/requesting …

Then …

  • only resumption of compensation for static disabilities, and/or
  • non-static disabilities with review examination dates beyond the service member’s separation date
the intake site is responsible for
  • establishing EP 290 (with the claim label Pre-Discharge – Resumption of Compensation), and
  • resuming compensation under the EP 290.
resumption of compensation forstatic disabilities and
  • resumption of compensation for non-static disabilities with a designated date for the future review examination that is not beyond the service member’s separation date
  • service connection (SC) for additional disabilities, and/or
  • an increased evaluation for an SC disability
  • the intake site is responsible for
    • establishing EPs 290 (with the claim label Pre-Discharge – Resumption of Compensation), and either
      • EP 310 for review of non-static disabilities, or
      • EP 336 (for a Benefits Delivery at Discharge claim), and
    • resuming compensation under the EP 290, and
  • the RAS/RO of jurisdiction assumes responsibility for rating the claim and resolving all other issues associated with the claim.

Notes:

  • Set a tracked item under the EP 290 for verification of service with a suspense date of the day following discharge to ensure prompt action on the EP 290.
  • An EP 310 is not necessary if all review examinations are for a future date beyond the service member’s separation date.
 
Important:  VA does not require a Veteran to use a prescribed form to request reinstatement of benefits unless the Veteran is concurrently claiming entitlement to
  • an increased disability rating, or
  • SC for a new disability.
Notes:
  • Simultaneously pending EPs 336 and 310 would only be allowed if the additional claimed conditions and non-static disabilities were different issues.  Example:  If the service member claimed an increase in one of his non-static disabilities, then only the 336 would be allowed.
  • If a service member’s last rating decision is not available in his/her electronic claims folder (eFolder), the intake site must obtain a copy of the rating decision before resuming benefits.
  • Because there is a possibility that service members who participate in the Integrated Disability Evaluation System (IDES) Program might return to active duty, the instructions in this block do not apply to their cases. Furthermore, Disability Rating Activity Sites (D-RASs) prepare “preliminary” rating decisions for these service members prior to their separation if their Physical Evaluation Board determines they are unfit for duty. These decisions consider the severity of any non-static disabilities. Unless an IDES participant’s service department returns him/her to duty, the D-RAS of jurisdiction resumes compensation for any static and non-static disabilities (if in order), upon promulgation of a final rating decision.
References:  For more information about

III.i.2.C.3.c.Effective Date for Resuming a Service Member’s Compensation

The effective date for resuming a service member’s compensation is the day following release from active duty, if VA receives a request for resumption within one year from the date of such release.  Otherwise, the proper effective date is one year prior to the date VA receives the request.
Important:  Under 38 CFR 3.31(b) and 38 CFR 3.654(b)(2), the end-of-month rule does not apply to the resumption of compensation following release from active duty.  This rule does apply, however, to any additional benefits VA awards the Veteran because of a grant of SC for a new disability or an increased disability rating.

4.  Appeals of Decisions on Pre-Discharge Claims


Introduction

This topic contains information regarding appeals of decisions on pre-discharge claims, including

Change Date

June 18, 2015

III.i.2.C.4.a.Procedures for Processing Appeals of Decisions on Pre-Discharge Claims

Appeals of decisions on pre-discharge claims must be processed in accordance with procedures outlined in M21-1, Part I, 5.

III.i.2.C.4.b.     Who Is Responsible for Processing Appeals of Decisions on Pre-Discharge Claims

If a Veteran appeals a decision VA made in connection with a pre-discharge claim, the Veteran’s SOJ assumes responsibility for processing the appeal.

5.  Requests for CSPLs


Change Date

August 5, 2016

III.i.2.C.5.a.Procedures for CSPL Requests

Civil Service Preference Letters (CSPL) can only be created by the VA when there is a prior period of verified, completed, other than dishonorable service of record.  Use the table below when receiving one of these requests.
If …
Then …
there is a prior period of service for which a CSPL can be given
there is a prior period of completed service which is not verified
  • take the necessary steps to verify the prior period of service, and
  • following receipt of verified qualifying service, follow the above steps for creating the CSPL.
there is no prior period of service for which a CSPL can be given
  • do not create the letter, and
  • inform the service member that he/she should contact the unit personnel department of his/her military branch for more information on obtaining a CSPL prior to discharge.
Note:  If the service member does not have a prior period of service for which a CSPL can be given, does not want to obtain a CSPL letter from his/her branch of service prior to separation, and would prefer to obtain the letter from VA, then
  • ensure the request for a CSPL is documented in the eFolder, and
  • insert a note in VBMS notifying the RAS/RO that a CSPL is requested.
Reference:  For more information on EPs, see M21-4, Appendix B.
9-27-17_Key-Changes_M21-1III_i_2_SecC.docx May 8, 2019 54 KB
Historical_M21-1III_i_2_SecC_6-18-15.doc May 8, 2019 118 KB
Historical_M21-1III_i_2_SecC_8-5-16.docx May 8, 2019 63 KB
Historical_M21-1III_i_2_SecC_9-15-17.docx May 8, 2019 63 KB
Change-June-18-2015-Transmittal-Sheet-M21-1III_i_2_SecC_TS.docx May 8, 2019 40 KB
Transmittal-Sheet-M21-1MRIII_i_3_TS.doc May 8, 2019 55 KB
Transmittal-Sheet-M21-1MRIII_i_2_SecC_TS.doc May 8, 2019 58 KB
Transmittal-Sheet-M21-1MRIII_i_2_SecD_TS.doc May 8, 2019 57 KB
Transmittal-Sheet-M21-1MRIII_i_2_SecA_TS.docx May 8, 2019 38 KB
Transmittal-Sheet-M21-1MRIII_i_2_SecB_TS.docx May 8, 2019 39 KB
8-5-16_Key-Changes_M21III_i_2_SecC.docx May 8, 2019 64 KB
Change-January-20-2015-Transmittal-Sheet-M21-1MRIII_i_2_SecC_TS.docx May 8, 2019 38 KB
Did this article answer your question?

Leave a Reply





Pin It on Pinterest

Share This