Overview
In This Section |
This section contains the following topics:
|
1. General Information on Adjusting Apportioned Awards
Change Date |
December 20, 2017
|
III.v.3.B.1.a. Handling a Reduction in a Veteran’s Disability Evaluation |
When a Veteran’s award is reduced under 38 CFR 3.105(e), the claims folder usually has sufficient evidence for reapportionment so that simultaneous adjustment may be made in the awards to the primary beneficiary and apportionee(s).
Discontinue the apportionment effective the date of reduction of the Veteran’s award if
Note: In the latter case, undertake the actions described in M21-1, Part III, Subpart v, 3.A.2 after discontinuing the apportionment.
Reference: For additional information on what constitutes a “reasonable amount” to apportion, see M21-1, Part III, Subpart v, 3.A.1.c.
|
III.v.3.B.1.b. Handling a Retroactive Increase in a Primary Beneficiary’s Award |
Retroactive increases in a primary beneficiary’s award may be subject to apportionment only in exceptional cases, as dictated by the needs of the involved persons.
Note: 38 CFR 3.400(e) provides that with certain specific exceptions, the effective date of a grant or increase of an apportionment would be the first day of the month following the date the Department of Veterans Affairs (VA) received the apportionment claim or claim for increased apportionment.
|
III.v.3.B.1.c. Circumstances Requiring Discontinuation of an Apportionment |
An apportionment must be discontinued when the primary beneficiary’s award is
Reference: For information about discontinuing an apportionment in the Veterans Service Network (VETSNET) or Veterans Benefits Management System – Awards (VBMS-A), see M21-1, Part III, Subpart v, 3.B.1.d.
|
III.v.3.B.1.d.Discontinuing an Apportionment in VETSNET or VBMS-A |
Discontinuing a primary beneficiary’s award in VETSNET or VBMS-A automatically discontinues any apportionment associated with that award.
Follow the instructions in the table below if it becomes necessary to discontinue an apportionment without discontinuing the primary beneficiary’s award.
Reference: For more information about managing apportionments in
|
III.v.3.B.1.e. Other Reasons and Instructions for Discontinuing an Apportionment |
The table below contains
|
III.v.3.B.1.f. Handling a Change in Status That the Primary Beneficiary Causes or Reports |
When the primary beneficiary causes or reports a change in status that requires an adjustment of his/her award,
|
III.v.3.B.1.g. Handling a Change in Status That the Apportionee Causes or Reports |
When an apportionee causes or reports a change in status that requires an award adjustment, determine whether M21-1, Part I, 2.A.2.a
Example:
Scenario: An estranged spouse in receipt of an apportionment of a Veteran’s disability compensation submits a copy of his divorce decree.
Action: Discontinue the apportionee’s award without issuing notice of proposed adverse action effective the first day of the month following the month in which the divorce becomes final.
If the overall effect of discontinuing the apportionment and removing the apportionee from the primary beneficiary’s award
Note: The requirements of 38 CFR 3.31 do not apply to the “increases” referenced in the above paragraph.
Reference: For more information about handling a notice of divorce or annulment from a source other than the apportionee, see M21-1, Part III, Subpart v, 3.B.2.b.
|
Follow the instructions in the table below upon receipt of notice that a primary beneficiary and a dependent to whom VA is apportioning some of the primary beneficiary’s benefits now reside together.
Reference: For more information about preparing and issuing decision notices, see M21-1, Part III, Subpart v, 2.B.
|
III.v.3.B.1.i.Apportionments Based on Criteria That Are No Longer in Effect |
M21-1, Part III, Subpart v, 3.A.3.c, lists the criteria that are currently in effect for determining the amount of an apportionment. Adjust cases with apportionments established under criteria that are no longer in effect only when
|
III.v.3.B.1.j. Handling Allegations of Hardship When an Apportionment Is Already in Place |
If an apportionee alleges hardship and/or requests an increase in the amount of his/her apportionment,
If a primary beneficiary whose benefits VA is apportioning alleges hardship, follow the instructions in the table below.
Important:
References: For more information about preparing and issuing a
|
III.v.3.B.1.k. Apportionments VA Suspended Because Payments Were Returned as Undeliverable |
An apportionment is automatically suspended when payments to the apportionee are returned as undeliverable. Proceeds accrue in the apportionee’s account when the suspension takes effect.
Upon receipt of notice that proceeds exist in an apportionee’s account for the reason stated in the preceding paragraph, Veterans Service Centers (VSCs) and pension management centers (PMCs) must attempt to locate the apportionee by
If attempts to locate the apportionee are ultimately unsuccessful, VSCs/PMCs must
Important: When discontinuing an apportionment that originated as a garnishment order (under the provisions of M21-1, Part III, Subpart v, 3.D.2.c), VA must continue to withhold benefits payable to the apportionee. This is accomplished by entering the amount of the apportionment in the ADJUSTMENT AMOUNT field on the OTHER ADJUSTMENTS tab in VBMS-A or VETSNET. |
III.v.3.B.1.l.Removing a Former Apportionee From a Beneficiary’s Award Because the Former Apportionee’s Whereabouts Are Unknown |
VA must remove from a beneficiary’s award
Exception: Removal of a dependent from a beneficiary’s award is not required if the beneficiary is contributing to the dependent’s support.
Follow the instructions in the table below if
|
III.v.3.B.1.m. Requests for Resumption of an Apportionment That VA Suspended or Discontinued Because Payments Were Returned as Undeliverable |
Follow the instructions in the table below upon receipt of a request from an apportionee for resumption of an apportionment that was suspended because payments to the apportionee were returned as undeliverable.
|
2. Discontinuing an Apportioned Award Due to Divorce or Annulment
Introduction |
This topic contains information on discontinuing an apportionment due to divorce or annulment, including
|
Change Date |
December 20, 2017 |
III.v.3.B.2.b. Notice of Divorce or Annulment From a Source Other Than the Apportionee |
Upon receipt of notice – from a source other than the spouse-apportionee – that the apportionee has divorced or obtained an annulment of his/her marriage to the Veteran, do not discontinue the apportionment without
Notes:
References: For more information about
|
III.v.3.B.2.d. Determining the Validity of a Divorce or Annulment Decree |
When the validity of a divorce or annulment decree is questionable, request a legal opinion from Regional Counsel before taking any action to discontinue or adjust the primary beneficiary’s or apportionee’s award.
Notify both the primary beneficiary and apportionee of the pending action.
Reference: For more information about requesting a legal opinion from Regional Counsel, see M21-1, Part III, Subpart iii, 5.A.3.e.
|
III.v.3.B.2.e. Award Adjustments Based on Divorce or Annulment |
Once the primary beneficiary and apportionee have had an opportunity to respond to the notice of proposed adverse action (if necessary), and a determination has been made that an adjustment based on divorce or annulment is required,
Notes:
Reference: For more information on award adjustments stemming from the discontinuation of a Veteran’s marriage to a spouse-apportionee, seeVAOPGCPREC 74-1990.
|
3. Adjusting or Discontinuing an Apportionment Due to Death
Introduction |
This topic contains information on adjusting or discontinuing an apportionment due to death of the primary beneficiary or apportionee(s), including
|
Change Date |
December 20, 2017 |
III.v.3.B.3.a. Adjusting an Apportioned Award Due to the Death of the Primary Beneficiary |
Processing a first notice of death to stop a Veteran’s award simultaneously stops any running apportionee award(s), in accordance with M21-1, Part III, Subpart ii, 8.A.1.a.
Note: Posthumous adjustments of apportionee awards do not require processing with an accompanying primary beneficiary award unless an adjustment in the primary beneficiary’s record is otherwise required. This is because such adjustments may be effected by one-time payment awards.
Reference: For information on processing posthumous awards in VETSNET, see the VETSNET Awards User Guide.
|
III.v.3.B.3.b. Discontinuing an Apportioned Award Due to the Death of the Apportionee |
Follow the steps in the table below when discontinuing an apportionment due to the death of an apportionee.
Important: If someone other than the primary beneficiary reported the apportionee’s death, do not take the actions described in this block before furnishing a notice of proposed adverse action to the primary beneficiary, as discussed in M21-1, Part I, 2.B.1 and 2.
Reference: For more information on adjusting a primary beneficiary’s award due to the death of an apportionee, see
|
III.v.3.B.3.c. Example: Award Adjustments Following the Death of a Spouse-Apportionee |
Situation: The spouse-apportionee of a Veteran in receipt of disability compensation dies in October. The Veteran has no other dependents.
Actions:
Reference: For more information on adjusting a Veteran’s award due to the death of an apportionee, see M21-1, Part III, Subpart v, 3.B.6.
|
4. Discontinuing an Apportionment for a Child Because the Primary Beneficiary Began Paying Child Support for the Child
Change Date |
November 30, 2017
|
III.v.3.B.4.a. Discontinuing an Apportionment for a Child Because the Primary Beneficiary Began Paying Child Support for the Child |
Discontinue the payment of an apportionment for a child effective the date the primary beneficiary begins paying child support for the child.
If someone other than the child-apportionee (or his/her custodian)
reports the payment of child support, issue a notice of proposed adverse action to the child apportionee (or his/her custodian) before discontinuing the apportionment.
The table below contains instructions for discontinuing the child’s apportionment if other dependents (such as an estranged spouse) remain entitled to an apportionment of the primary beneficiary’s benefits.
References: For more information about
|
5. Discontinuing an Apportionment for a Child That Goes on Active Duty
Change Date |
May 14, 2018
|
III.v.3.B.5.a. Discontinuing an Apportionment for a Child That Goes on Active Duty |
Discontinue an apportionment for a child that goes on active duty, unless the child is in the custody of an estranged spouse.
When the apportionment ends, continue paying additional benefits for the child to the primary beneficiary until the child turns 18.
Note: For the purpose of this block, a “primary beneficiary” includes the fiduciary of a child that is not in the custody of the surviving spouse whose benefits VA is apportioning for the child.
Reference: For more information about apportionments for children that go on active duty, see
|
6. Adjusting the Primary Beneficiary’s Award Due to the Loss of a Dependent-Apportionee
Introduction |
This topic contains a summary of information on adjustments due to the loss of a dependent-apportionee, including
|
Change Date |
January 30, 2018 |
III.v.3.B.6.a. Effective Date for Removing a Dependent-Apportionee From a Beneficiary’s Award |
In most situations, VA uses the “end-of-month rule” described in M21-1, Part III, Subpart iii, 5.L.4.b and c when adjusting a primary beneficiary’s award to reflect loss of a dependent.
References: For more information about adjusting a primary beneficiary’s award because
|
III.v.3.B.6.b. Loss of a Child-Apportionee Due to Death, Marriage, Adoption, or Discontinuation of School Attendance |
Follow the instructions in the table below when a child-apportionee dies, marries, or stops attending school.
Reference: For more information on discontinuing an apportioned award due to the death of the apportionee, see M21-1, Part III, Subpart v, 3.B.3.b.
|
III.v.3.B.6.c. Retroactive Increases in a Primary Beneficiary’s Award That Are Effective Prior to the Loss of a Dependent-Apportionee |
If increased disability or decreased income requires a retroactive award adjustment from a date prior to the loss of a dependent-apportionee, pay the increased benefit to the primary beneficiary, to include any additional allowance for the lost dependent. Exclude, however, the amount previously allocated to the apportionee award through the end of the month in which the dependent was lost.
|
III.v.3.B.6.d. Action to Take if the Lost Dependent Was One of Multiple Apportionees |
Follow the steps in the table below if the lost dependent was one of multiple apportionees on the same award.
Reference: For more information about making award adjustments in
|
III.v.3.B.6.e. Example: Award Adjustments Following the Divorce of a Veteran and Apportionee |
Situation: A Veteran is evaluated 100-percent disabled and receives $2,673 monthly. An apportioned award of $559 is being paid to the spouse and five children. The spouse and Veteran divorce on December 8, 2010. The date of last payment to the former spouse is February 1, 2011.
Actions:
Note: A new apportionment decision is required to determine the children’s entitlement to an apportioned share of the Veteran’s compensation, unless the original apportionment decision specified the amount payable for each child.
|
III.v.3.B.6.f. Loss of an Out-of-Custody Child in Receipt of DIC |
According to 38 CFR 3.461(a),
The surviving spouse’s award of dependency and indemnity compensation will be apportioned where there is a child or children under 18 years of age and not in the custody of the surviving spouse.
The apportionment referenced in this regulation is slightly different than the apportionments discussed elsewhere in this chapter because it is paid to the out-of-custody child without
The out-of-custody child, in this case, is entitled to the amount of additional Dependency and Indemnity Compensation (DIC) payable to the surviving spouse for a child under the age of 18.
Other differences in apportionments under 38 CFR 3.461(a) include the following:
|
III.v.3.B.6.g. Handling Evidence From a Primary Beneficiary Indicating a Child in Receipt of an Apportionment Is Not a Child Per 38 CFR 3.57 |
Follow the instructions in the table below upon receipt of evidence from a primary beneficiary indicating a child-apportionee cannot be recognized as a Veteran’s child under 38 CFR 3.57.
Example: A male Veteran submits a statement indicating he did not father a child to whom VA is apportioning the Veteran’s benefits.
References: For more information about
|
III.v.3.B.6.h. Handling Evidence From a Child-Apportionee or Custodian Indicating the Apportionee Is Not a Child Per 38 CFR 3.57 |
Follow the instructions in the table below upon receipt of evidence from a child-apportionee or child-apportionee’s custodian indicating the apportionee cannot be recognized as a Veteran’s child under 38 CFR 3.57.
Example: A child-apportionee’s custodian, who is also the child-apportionee’s biological mother, submits a statement to VA in which she reports learning that the child-apportionee was fathered by someone other than her Veteran-husband.
References: For more information about
|
5-14-18_Key-Changes_M21-1III_v_3_SecB.docx | May 16, 2019 | 91 KB |
1-30-18_Key-Changes_M21-1III_v_3_SecB.docx | May 16, 2019 | 87 KB |
8-12-16_Key-Changes_M21-1III_v_3_SecB.docx | May 16, 2019 | 72 KB |
Historical_M21-1III_v_3_SecB_1-30-18.docx | May 16, 2019 | 121 KB |
Historical_M21-1III_v_3_SecB_5-17-17.doc | May 16, 2019 | 267 KB |
11-30-17_Key-Changes_M21-1III_v_3_SecB.docx | May 16, 2019 | 94 KB |
Change-July-8-2015-Transmittal-Sheet-M21-1III_v_3_SecB_TS.docx | May 16, 2019 | 39 KB |
Transmittal-M21-1MRIII_v_3_SecB_TS.docx | May 16, 2019 | 31 KB |
in Chapter 3 Apportionments, Part III General Claims Process, Subpart v General Authorization Issues and Claimant Notification
Related Articles