Overview
In This Section |
This section contains the following topics:
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1. Prohibition of Concurrent Payment of VA Benefits and MRP
Introduction |
This topic contains information on the prohibition of concurrent payment of VA benefits and MRP, including
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Change Date |
March 4, 2019
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III.v.5.A.1.a.Restriction on the Concurrent Payment of VA Benefits and MRP |
38 U.S.C. 5304(a) provides a statutory restriction on the concurrent payment of military retired pay (MRP) and the following types of Department of Veterans Affairs (VA) benefits:
Notes:
Important:
Reference: For more information about the concurrent payment of disability compensation and MRP, see
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III.v.5.A.1.b.Retainer Pay as a Form of MRP |
Naval and Marine Corps enlisted personnel with 20 or more years but less than 30 years of service may request transfer to the Fleet Reserve or Fleet Marine Corps Reserve and receive retainer pay.
Retainer pay and MRP are similar in that neither may be awarded concurrently with VA disability compensation, Section 306 Pension, or Old Law Pension. The retainer pay, as a form of MRP, must be waived under 38 CFR 3.750 before a Veteran may receive any of these three VA benefits.
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III.v.5.A.1.c.Prohibition Under 38 CFR 3.750 of Combined Benefits to Exceed the Amount of the Greater Benefit |
38 CFR 3.750(c) prohibits the total of the monthly payments (combined VA benefits and MRP) to the Veteran from exceeding the greater amount of the following benefits:
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III.v.5.A.1.d.Unrestricted Election, Reelection, or Waiver of MRP |
Per 38 CFR 3.750(d), there is no restriction on the right of election, reelection, or waiver of MRP by
Note: Previous agencies of the Coast and Geodetic Survey and Environmental Science Services Administration were incorporated into NOAA.
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III.v.5.A.1.e.Advantage of Waiving MRP |
Veterans frequently waive only so much of their MRP or retainer pay as is equal to the amount of disability compensation, Section 306 Pension, or Old Law Pension to which they are entitled.
Since disability compensation, Section 306 Pension, and Old Law Pension are not taxable benefits, but MRP from the Armed Forces based on age or length of service is taxable, there is an obvious advantage for a Veteran to waive MRP.
Note: When MRP is waived in claims for Section 306 Pension or Old Law Pension, 90 percent of the waived MRP counts as income following the 10-percent statutory exclusion, per 38 CFR 3.262(e)(2) and 38 CFR 3.262(h).
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III.v.5.A.1.f.Determining Whether a Veteran Receives MRP |
To avoid overpayments, carefully examine the following information sources to determine if MRP has been granted:
If it cannot be determined whether a service department is paying MRP,
Note: VA discontinued the use of VA Form 21-526 on February 19, 2019.
References: For more information about
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III.v.5.A.1.g.Verifying the Amount of MRP a Veteran Receives |
MRP and Survivor Benefit Plan payments may be verified on the BIRLS MISCELLANEOUS INFO screen in Share. This screen displays the MRP rate for the current and previous year.
If the Veteran was recently discharged, or MRP information is not available in Share,
References: For more information about
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III.v.5.A.1.h.Deferring Award Action in the Absence of an Election or Waiver |
If a Veteran in receipt of MRP, including one on the Temporary Disability Retirement List (TDRL), becomes entitled to disability compensation, take no award action in the absence of an election or an effective waiver.
Reference: For more information on removal of a Veteran from the TDRL, seeM21-1, Part III, Subpart v, 5.B.6.
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2. Obtaining an Election or Waiver of MRP
Introduction |
This topic contains information on obtaining an election or waiver of MRP, including
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Change Date |
March 4, 2019
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III.v.5.A.2.a. Determining Whether a Waiver of MRP Is Required |
A Veteran entitled to MRP must waive his/her MRP in order to receive disability compensation.
Exception: Per 10 U.S.C. 1414, 38 U.S.C. 5305, and 38 CFR 3.750(c), a waiver of MRP is not required when a Veteran is eligible for full Concurrent Retirement and Disability Pay (CRDP).
Note: The renouncement of disability compensation, as discussed in M21-1, Part III, Subpart ii, 2.H, is not the same as not waiving MRP based on receipt of disability compensation.
Reference: For information about determining whether a Veteran is eligible for full CRDP, see M21-1, Part III, Subpart v, 5.A.2.f.
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III.v.5.A.2.b.Accepting an Application for Benefits as an Election or Waiver |
Per 38 CFR 3.750(c), a Veteran’s application for VA benefits on VA Form 21-526(edition of November 1977 or later), VA Form 21-526c, or VA Form 21-526EZconstitutes an election or waiver in the absence of a specific statement to the contrary.
Note: VA discontinued the use of VA Form 21-526 on February 19, 2019.
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III.v.5.A.2.c.Using VA Form 21-651 to Obtain an Election or Waiver |
Use VA Form 21-651, Election of Compensation in Lieu of Retired Pay or Waiver of Retired Pay to Secure Compensation From Department of Veterans Affairs (38 U.S.C. 5304(a)-5305), when it is necessary to obtain the Veteran’s or fiduciary’s signature on the election or waiver.
When furnishing the form to the Veteran or fiduciary, complete the first five items. The form includes instructions to the Veteran or fiduciary to sign and date the form and return it to the VA office shown in Block 1 of the form.
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III.v.5.A.2.d.Interacting With RPCs to Certify an Election or Waiver |
Retired pay centers (RPCs) accept award action by VA as certification that an election or waiver is on file with VA without requiring “hard copy” documentation.
VA is responsible for providing RPCs with a completed copy of one of the forms listed in M21-1, Part III, Subpart v, 5.A.2.e (or other relevant documentation) only upon receipt of a specific request.. Do not routinely forward election or waiver forms to RPCs.
Note: When an RPC does request a copy of VA Form 21-651 or other form constituting an election or waiver, the responding RO must prepare a locally generated letter that shows the amounts and effective dates of VA’s payment of compensation.
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III.v.5.A.2.e.Action to Take Upon Receipt of an Election or Waiver and Establishment of Entitlement to VA Benefits |
Take award action in accordance with instructions in M21-1, Part III, Subpart v, 5.B.1 when VA
Notes:
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III.v.5.A.2.g. Documenting Eligibility for Full CRDP |
After determining a waiver of MRP is not required because a Veteran is eligible for full CRDP, claims processors must upload into the Veteran’s electronic claims folder (eFolder) the documentation described in the right-hand column of the table below as proof the Veteran meets the eligibility requirement listed in the left-hand column.
Reference: For more information about using RCPS, see M21-1, Part III, Subpart v, 5.B.3.
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III.v.5.A.2.h.Notifying Insurance Service of an Election or Waiver of VA Benefits |
Follow the procedures in M21-1, Part III, Subpart iv, 7.A.2.c to notify Insurance Service of an election or waiver of VA benefits.
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3. Handling a Claim With an Election or Waiver of MRP
Introduction |
This topic contains information on handling a claim with an election or waiver of MRP, including
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Change Date |
March 4, 2019
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III.v.5.A.3.a.Process for Handling a Statement of an Election or Waiver of MRP |
Follow the instructions in the table below when VA grants service connection (SC), and either the Veteran or his/her fiduciary
Exception: If a Veteran who is not eligible for MRP takes one of the actions described in the preceding paragraph,
Notes:
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III.v.5.A.3.b.Notifying a Veteran Who Elected to Receive MRP of the Determinations VA Made on His/Her Claim |
If VA denies a Veteran’s claim because he/she elected MRP instead of disability compensation, send a locally-generated letter to inform the Veteran of the
References: For more information on
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III.v.5.A.3.c. Furnishing VA Form 21-651 and Informing the Veteran of the Restriction on Concurrent Payments |
In addition to taking the actions described in M21-1, Part III, Subpart v, 5.A.3.a, when notifying the Veteran of the determination made on his/her claim,
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III.v.5.A.3.d.Effective Date of VA Benefit Payments When a Veteran Waives a Portion of His/Her MRP |
If a Veteran waives a portion of his/her MRP, the full rate of disability compensation will begin as of the effective date of the reduction of his/her MRP.
Reference: For additional information about the effective date referenced in the preceding paragraph, see VAOPGCPREC 7-2001.
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III.v.5.A.3.e.Effect of the Recoupment of Readjustment or Separation Pay on VA’s Offset of Benefits for Receipt of MRP |
The recoupment of a prior award of readjustment or separation pay by a service department does not affect the VA offset for the receipt of MRP.
However, VA may be required to repay amounts of readjustment or separation pay previously recouped by VA. If separation pay was recouped by both VA and the service department, VA may have to refund the amount of separation pay withheld.
Reference: For more information on handling the recoupment of separation or readjustment pay by both VA and a service department, see M21-1, Part III, Subpart v, 4.B.2.i.
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III.v.5.A.3.f. Processing a Supplemental Claim VA Receives One Year or More After Denying a Claim Because the Veteran Elected to Receive MRP |
If VA receives the following from a Veteran, one year or more after VA denied entitlement to disability compensation because the Veteran elected MRP, the authorization activity may grant entitlement to disability compensation, based on the most recent rating decision, effective the date of claim:
Exception: Before the authorization activity may grant entitlement to disability compensation for a service-connected (SC) disability that, according to the most recent rating decision, is subject to a future review examination, the
Important: The exception described in the previous paragraph applies only if the date the rating activity selected for the review examination has already passed.
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III.v.5.A.3.g.Informing a Veteran of His/Her Eligibility for Ancillary Benefits |
If a rating decision establishes basic eligibility to Dependents’ Educational Assistance (DEA) and/or ancillary benefits, VA must notify the Veteran of his/her eligibility, regardless of whether or not VA ultimately denies the Veteran’s claim because he/she elected to receive MRP.
Reference: For more information on notifying a Veteran of his/her eligibility for
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III.v.5.A.3.h.Control Requirement for a Review Examination When Benefits Are Not Paid |
It is necessary to control future review examinations in a case in which monetary benefits are not being paid for compensable disability ratings, that is, a case in which MRP has not been waived.
Rationale: The protective provisions of 38 U.S.C. 110 and 38 CFR 3.951 do notrequire a concurrent award of monetary benefits.
Note: See VAOPGCPREC 5-1995 for discussion of a situation in which the protection of 38 U.S.C. 110 does not apply.
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III.v.5.A.3.i.Establishing the Control for a Review Examination When Benefits Are Not Paid |
If the rating activity determines that a review examination is necessary on a claim in which no monetary benefits are paid, follow the procedures in M21-1, Part III, Subpart iv, 3.C.2.b or c for establishing control for a future review examination.
References: For guidelines on
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III.v.5.A.3.j.Notifying Insurance Service After Denying a Veteran’s Claim Because He/She Elected to Receive MRP |
After denying a Veteran’s claim because he/she elected to receive MRP instead of disability compensation, follow the procedures in M21-1, Part III, Subpart iv, 7.A.2.c to notify Insurance Service.
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4. Handling a Claim for Current-Law Pension
Introduction |
This topic contains information on handling a claim for current-law pension including
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Change Date |
June 25, 2015
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III.v.5.A.4.b.Handling an Election of Current-Law Pension Over Disability Compensation, Section 306 Pension, or Old Law Pension |
If a Veteran who is entitled to MRP elects current-law pension over disability compensation, Section 306 Pension, or Old Law pension,
Note: Waived MRP counts as income for current-law pension under 38 CFR 3.276(a).
Reference: For more information on contacting an RPC, see M21-1, Part III, Subpart v, 5.C.2.f.
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5. Handling Elections or Waivers of MRP in Incompetency Cases
Introduction |
This topic contains information on handling elections or waivers of MRP in incompetency cases, including
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Change Date |
March 4, 2019
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III.v.5.A.5.a. Who May Elect or Waive MRP With a Service Department Finding of Incompetency |
If a service department finds that a Veteran is mentally incompetent, only a trustee or fiduciary recognized by one of the military services may make an election or waiver of MRP.
Do not accept an election or waiver based on a Veteran’s signature on the forms listed in M21-1, Part III, Subpart v, 5.A.2.e when a service department holds the Veteran to be incompetent.
If required under State law, a court must authorize the fiduciary or trustee to make an election or waiver before such election or waiver is processed.
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III.v.5.A.5.b.Service Department Incompetency Determinations and the Designation of a Trustee |
Per 37 U.S.C. 602, a board of medical officers or physicians is required to
If the board finds the member is incompetent, the Secretary of the Veteran’s service department designates a trustee to receive the Veteran’s MRP.
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III.v.5.A.5.c.Handling a Service Department’s Finding of a Veteran’s Incompetency |
Follow the steps in the table below to handle a service department’s finding of a Veteran’s incompetency.
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III.v.5.A.5.e.Handling an Election or Waiver From a Spouse-Payee |
Upon receipt of an election or waiver of MRP from a spouse-payee who was appointed trustee by the military, prepare and furnish VA Form 21-592 to the fiduciary hub to either
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III.v.5.A.5.f.Handling an Election or Waiver From an Institutional Payee |
Use the table below to determine the election or waiver requirements when a service department appoints an institution as a Veteran’s trustee.
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III.v.5.A.5.g. Advising a Fiduciary of a Reduction of VA Benefits and the Right to Reelect MRP |
When VA awards benefits as a result of a total waiver of MRP then VA subsequently reduces or terminates benefits due to improvement in the Veteran’s condition, advise the Veteran’s fiduciary of the right to reelect MRP.
Note: A reelection is not required if MRP exceeds the amount of VA benefits payable and there is a partial waiver in place. Under these circumstances, the Veteran’s service department automatically adjusts his/her benefits.
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III.v.5.A.5.h. What Service Departments Require Before They Will Accept an Election or Waiver Based on Restored Competency |
As with a finding of incompetency, service departments will recognize a finding that a Veteran’s competency has been restored only if it is provided by a board of medical officers or physicians.
A VA rating of restored competency and the examination report on which it was based must
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III.v.5.A.5.i. Withholding Disability Compensation in Incompetency Cases |
If VA receives a waiver of MRP in an incompetency or proposed incompetency case, withhold disability compensation according to the instructions in M21-1, Part III, Subpart v, 5.B, without regard to where the Veteran’s case is in the process.
Important: Enter withholdings for MRP on the RETIRED PAY tab of the AWARD ADJUSTMENTS screen in VBMS. Never enter withholdings for MRP on the OTHER ADJUSTMENTS tab of the AWARD ADJUSTMENTS screen.
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6. CRDP
Introduction |
This topic contains information on the concurrent payment of MRP and disability compensation, including
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Change Date |
March 4, 2019
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III.v.5.A.6.a. History of SCSD |
The Defense Authorization Act of 2000 established the benefit known as Special Compensation for Severely Disabled Retirees (SCSD), effective October 1, 1999.
The eligibility criteria for this benefit were liberalized effective October 1, 2001, and February 1, 2002. The benefit was then repealed effective January 1, 2004, and replaced with CRDP.
DoD was responsible for administering the SCSD program and paying SCSD. The amount of payment was based on the percent of the VA disability rating, and the payment was taxable.
The basic criteria for eligibility are shown in the table below.
Note: Although CRDP replaced SCSD, this brief history is provided for general information in case reference to SCSD is encountered during routine review of a Veteran’s records.
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III.v.5.A.6.b.Overview of CRDP |
The National Defense Authorization Act of 2004 established CRDP, effective January 1, 2004. DoD is responsible for administering this program, the intended purpose of which was to phase out the offset of MRP for VA disability compensation over a 10-year period.
A Veteran may qualify for CRDP if he/she is a military retiree with a combined disability rating of at least 50 percent and he/she retired
Notes:
Reference: For more information on CRDP, see the Under Secretary of Defense, Personnel, and Readiness: Military Compensation internet site.
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III.v.5.A.6.c.Application for or Election of CRDP |
An application for CRDP is not necessary.
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III.v.5.A.6.d.Effect of CRDP on Waived Amounts of MRP |
CRDP restores some or all of that portion of MRP a Veteran waived in order to receive VA disability compensation.
CRDP is subject to all of the same laws and regulations that apply to MRP, including reductions for
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III.v.5.A.6.e.CRDP Rate Table |
The table below shows the amount of CRDP that DoD credited Veterans against the MRP they had waived.
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III.v.5.A.6.f.Timetable for Eliminating the Offset of MRP |
Elimination of the offset of MRP for disability compensation was phased in over a period of 10 years.
The table below shows the percentage of the offset that DoD restored through CRDP over the 10-year phase-in period.
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III.v.5.A.6.g. Example of How DFAS Calculated CRDP Prior to 2014 |
Below is an example of how DFAS calculated CRDP prior to 2014.
Situation:
Calculations: Using the rate table in M21-1, Part III, Subpart v, 5.A.6.e, the waived amount of $1,557.00 was reduced by $500.00, leaving a balance of $1,057.00.
The balance of $1,057.00 was multiplied by .28 (28 percent, according to the table in M21-1, Part III, Subpart v, 5.A.6.f) resulting in $295.96. This amount was added to the $500.00 from the rate table in M21-1, Part III, Subpart v, 5.A.6.e, for a 90-percent disabled Veteran ($295.96 plus $500.00 equals $795.96).
Result: The gross CRDP rate payable in 2006 was $795.96. The rate was recalculated each year, until the full amount of the offset was eliminated in 2014.
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III.v.5.A.6.h.Changes That Affected Veterans With a Total Disability Rating |
Effective January 1, 2005, the CRDP phase-in timetable referenced in M21-1, Part III, Subpart v, 5.A.6.f no longer applied to Veterans
Accordingly, if such Veterans retired due to years of service and were entitled to CRDP, they could receive the full amount of MRP and VA disability compensation from the later of the following dates:
If a Veteran retired due to disability under 10 U.S.C. Chapter 61, CRDP is subject to an offset for the difference between
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7. Concurrent Payment of VA Benefits and CRSC
Introduction |
This topic contains information about concurrent payment of VA benefits and CRSC, including
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Change Date |
March 22, 2018
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III.v.5.A.7.a. Overview of CRSC |
CRSC was authorized by the National Defense Authorization Act of 2003, Public Law (PL) 107-314, and became effective June 1, 2003. This benefit was designed to compensate certain Veterans who must waive MRP in order to receive VA disability compensation.
CRSC is a monthly benefit DoD pays to eligible military retirees that is separate from MRP. It is not classified as MRP, and it is not taxable. It is, however, subject to garnishment for child support and alimony.
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III.v.5.A.7.b. CRSC Eligibility Criteria |
The eligibility criteria for CRSC
Note: Eligibility is determined by the Veteran’s service department. VA may need to furnish disability information to a service department, but CRSC is administered and paid by DoD, not VA.
Reference: For more information on CRSC, see the Under Secretary of Defense, Personnel, and Readiness: Military Compensation internet site.
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III.v.5.A.7.c. Definition: Qualifying Combat-Related Disability |
To be eligible for CRSC, a Veteran must have an SC disability that is combat-related. A qualifying combat-related disability, for the purpose of this benefit, is defined in the following table.
Important: Military service departments – not VA – are responsible for making the final determination regarding qualifying disabilities.
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III.v.5.A.7.d. Notifying a Veteran With Agent Orange-Related Disabilities of Possible Entitlement to CRSC |
Include the following paragraph in a decision notice when
You may be entitled to Combat-Related Special Compensation (CRSC) for your service-connected [new Agent Orange disability(ies)]. CRSC provides monthly payments to eligible retired Veterans with combat-related disability(ies), and is a benefit administered by the Department of Defense. Entitlement to CRSC is not automatic. Accordingly, to receive CRSC for your service-connected [new Agent Orange disability(ies)], you must specifically apply for CRSC for that disability, even if you have already been awarded CRSC for disabilities previously service-connected by VA.
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III.v.5.A.7.e.Application for CRSC |
To apply for CRSC, a Veteran must contact his/her service department. The service department will ask the Veteran to
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III.v.5.A.7.f.Amount Payable Under CRSC |
Generally, the amount payable under CRSC is equal to the amount of compensation VA would pay for the combat-related disability(ies). However, there are circumstances that affect the amount of CRSC that DoD will pay.
DoD bases CRSC payments on VA’s disability compensation rates, and payment is supported by legislation found in 38 U.S.C. Chapter 11
The actual amount to be paid is determined by DoD, and it is influenced by certain variables. The following table gives a synopsis of issues that may affect the rate of CRSC that is payable.
Note: The amount of CRSC entitlement plus any MRP not offset under 38 U.S.C. 5304 and 38 U.S.C. 5305 cannot be greater than the full MRP to which the Veteran is entitled.
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III.v.5.A.7.g. RO Liaison With CRSC Boards |
CRSC boards are responsible for determining eligibility for CRSC. In order to make a determination, these boards occasionally require
Each RO is responsible for designating an employee (the RO’s Military Records Specialist (MRS)) to serve as a liaison with CRSC boards. MRSs are responsible for responding to requests from CRSC boards.
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III.v.5.A.7.h. Controlling CRSC Board Requests and Taking Work Credit for Responding |
MRSs use end product (EP) 502 to control requests from CRSC boards and clear the EP for work credit after responding to a request.
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III.v.5.A.7.i. CRSC Board Requests for Records in VA’s Possession |
CRSC boards may request copies of the following from VA:
CRSC boards e-mail their requests to the mailbox (milpay.vbaco@va.gov) of Compensation Service’s Military Pay (MILPAY) Staff. This staff then routes the request to the appropriate MRS. Upon receipt of such a request, the MRS
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III.v.5.A.7.j.Definition: Discrepant Data |
Discrepant data is any data that contradicts information
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III.v.5.A.7.k. Responsibilities of ROs and Compensation Service’s MILPAY Staff With Regard to Handling CRSC Board Requests for Clarification of Discrepant Data |
The table below describes the responsibilities of ROs and the MILPAY Staff with regard to handling requests from a CRSC board for clarification of discrepant data.
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III.v.5.A.7.l.Process for Taking Corrective Action to Resolve Discrepant Data |
The table below describes the process ROs must follow upon receipt of notice from the MILPAY Staff (through OFO) that corrective action is required to resolve discrepant data identified by a CRSC board.
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III.v.5.A.7.m.Flagging Cases That Require Corrective Action to Resolve Discrepant Data |
When corrective action is necessary to resolve discrepant data, and the Veteran who is the subject of the CRSC board request for clarification has a paper claims folder, the MRS overseeing the corrective action must attach the folder flash shown below to the front of the claims folder.
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III.v.5.A.7.n. CRSC Board Requests for Snapshots of Share Screens |
CRSC boards have access to Share, and at least one member of each board has access to records in Share to which a sensitive level of 7 has been assigned.
On rare occasions, such as when access to records with a sensitive level higher than 7 is necessary, a CRSC board may request snapshots of relevant Share screens from an RO.
The table below contains instructions for responding to a CRSC board request for snapshots of Share screens.
Notes:
Reference: For more information about using Share, see the Share User Guide.
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III.v.5.A.7.o. Time Limit for Follow-Up Requests |
CRSC boards may e-mail follow-up requests to an MRS but only within the 60-day period following the initial request. Such e-mails will include a cc to the MRS’s VSCM.
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8. Processing AEWs
Introduction |
This topic contains information on processing AEWs, including
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Change Date |
March 4, 2019
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III.v.5.A.8.a. Definition:
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An audit error worksheet (AEW) is a document containing data regarding a Veteran’s MRP and entitlement to CRDP or CRSC.
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III.v.5.A.8.b. How AEWs Are Generated |
The table below describes how AEWs are generated.
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III.v.5.A.8.c.Maintaining Control of AEWs |
Follow the instructions in the table below upon receipt of an AEW.
Note: The proper date of claim for EP 298 is the date of the AEW, which is found in the upper, right-hand corner of the worksheet.
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III.v.5.A.8.d.Automated AEW Processing |
VA uses batch processing to automate the adjustment of many Veterans’ awards based on the audit data it receives from DFAS. This process includes the generation of an award in VBMS-A and the generation and mailing of a decision notice to the Veteran.
Exception: If an AEW contains more than 55 award lines, automatic generation of a decision notice during batch processing fails. In such cases, the MILPAY Staff sends an e-mail to the SOO with a request to prepare the decision notice and mail it, along with a copy of the AEW, to the Veteran within 10 days.
Note: The subject line of the e-mail from the MILPAY Staff will read CRSC/CRDP Batch – Automatic Letter Kick-Out.
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III.v.5.A.8.e. AEW Types and Messages |
The table below
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III.v.5.A.8.f. Initial Review of an AEW |
Follow the instructions in the table below when performing an initial review of an AEW.
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III.v.5.A.8.g.Processing an AEW in VETSNET or VBMS-A |
Follow the steps in the table below when processing an AEW in VETSNET or VBMS-A.
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III.v.5.A.8.h. Sequential Receipt of AEWs That Cover the Exact Same Time Period |
Take the actions described in the table below if multiple AEWs exist that cover the exact same time period.
Important: Anytime the table below refers to the amount of benefits VA owes a Veteran, it is referring to the net amount (the total of the amounts in the Due From VA column of an AEW minus the APPBD (if present)).
Reference: For more information about updating the PRIORS screen, see Priors Award Payments Screen.
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III.v.5.A.8.i. Sequential Receipt of AEWs That Cover Some But Not All of the Same Entitlement Months |
Take the action described in the table below when multiple unprocessed AEWs exist that cover some but not all of the same entitlement months. (It is acceptable to process these AEWs in the same award action.)
Important:
Example:
Scenario:
Results:
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III.v.5.A.8.j. Special Handling of AEWs That Display an APPBD |
If an AEW displays an amount to the right of the text Amount Previously Paid by DFAS, follow the steps in M21-1, Part III, Subpart v, 5.A.8.g for routine processing of the AEW. However, before routing the award for authorization (Step 11), follow the instructions in M21-1, Part III, Subpart v, 5.A.8.k.
Notes:
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III.v.5.A.8.k.Award Adjustments That Require Action by Finance Activity |
Take the steps described in the table below after generating an award that is based on the instructions provided in M21-1, Part III, Subpart v, 5.A.8.j.
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III.v.5.A.8.l. Flagging Cases That Require Action by Finance Activity |
To clearly identify a case that requires the action by finance activity that is described in M21-1, Part III, Subpart v, 5.A.8.k, make the appropriate entries on the folder flash shown below and
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III.v.5.A.8.m. Special Instructions About Rounding Down the Due From VA Column |
When processing older AEWs, the practice of rounding down the amount in theDue From VA column will depend on the adjustment date shown on the AEW. The table below explains when rounding down is/is not appropriate.
Important: Never round down the amount in the Due From VA column for entitlement months which include a rate change that takes effect on a day other than the first day of the month.
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III.v.5.A.8.n.Special Instructions for Entitlement Months of January 2014 or Later |
If the amount in the VA Withheld column of an AEW for an entitlement month of January 2014 or later differs from the amount in the Due From VA column for the same month by an amount less than one dollar,
The enclosed audit error worksheet may show amounts due that differ from what we have calculated. The worksheet is informational, showing VA may need to make an adjustment; however, we are required to double-check all calculations prior to releasing any funds to you. Therefore the amount we pay will be based on our final calculations and may not match the totals from the worksheet.
Example:
Scenario: Entries on AEW are as follows:
Action: Since the difference between the two amounts is less than one dollar, reduce the MRP withholding for March 2014 by $213.15.
Note: The situation described in this block most commonly occurs when the subject of the AEW is a Coast Guard Veteran.
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III.v.5.A.8.o. Processing AEWs That List a Month in Which VA Made a Rate Change That Took Effect on a Day Other Than the First Day of the Month |
The amounts displayed on an AEW for a given entitlement month are applicable for the entire month. If VA made a rate change that takes effect on a day other than the first day of the month, the amounts displayed on the AEW for the same month will not match up with VA’s corporate record.
Example: VA commonly reduces a Veteran’s benefits on a day other than the first day of the month when it removes a child from the Veteran’s award effective the day the child turns 18.
The methods for processing AEWs that list months in which VA made a rate change that took effect on a day other than the first day of the month vary depending on a variety of factors.
When processing an AEW with a rate change that takes effect on a day other than the first day of the month, special procedures must be followed. The chart below identifies specific AEW adjustment types and the relevant manual reference.
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III.v.5.A.8.p. Processing AEWs With an Amount Withheld for MRP That Is Equal to or Greater Than the Amount Shown in the Due From VA Column |
Reduce the amount of both withholdings (for MRP only) for the month in question by the amount shown in the Due From VA column on the AEW for the same month if
Note: Follow the instructions in M21-1, Part III, Subpart v, 5.A.8.q if any of the withholdings for MRP during the month in question are less than the amount shown in the Due From VA column of the AEW for the same month.
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III.v.5.A.8.q. Processing AEWs With an Amount Less Than the Amount Shown in the Due From VA Column |
Follow the instructions in the table below if
Example:
Scenario:
Calculations: Following the procedures described in this block, the result of the calculation described in
Action: Withhold no benefits for the month of September until September 9, 2013. Effective this date, begin withholding $1.27. Continue the withholding until October 1, 2013.
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III.v.5.A.8.r. Processing AEWs When VA Withheld Benefits From Either the First Day of the Month to a Later Date Within the Same Month or From a Day Within the Month to the End of the Month |
Follow the instructions in the table below to calculate the proper withholding when VA records show VA withheld benefits (to offset the Veteran’s receipt of MRP) fromeither (but not both)
Example:
Scenario:
Calculations: Following the procedures described in this block, the result of the calculation described in
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III.v.5.A.8.s. Processing AEWs When the Veteran Is Eligible for Concurrent Receipt of the Full Amount of His/Her Compensation and MRP Based on Length of Service |
If the subject of the AEW is eligible for concurrent receipt of the full amount of his/her disability compensation and MRP (based on length of service, notdisability), eliminate the entire withholding (that VA established to offset the Veteran’s receipt of MRP) shown in VA records for the month in which VA made a rate change that took effect on a day other than the first day of the month.
A Veteran is eligible for concurrent receipt of the full amount of his/her disability compensation and MRP if one of the three sets of conditions listed in the table below is met.
Note: A Veteran’s MRP is based on disability (rather than length of service) if an amount greater than $0.00 is displayed in the
Reference: For more information about using
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III.v.5.A.8.t. Notification of Award Adjustments Associated With the Processing of an AEW |
After processing an AEW, notify the Veteran who was the subject of the AEW of any associated award adjustments.
Notes:
Reference: For more information on using the AEW Assistant, see the Letter Creator User Guide.
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Historical_M21-1III_v_5_SecA_11-9-16.doc | May 16, 2019 | 481 KB |
2-1-17_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 129 KB |
3-22-18_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 140 KB |
1-21-16_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 138 KB |
11-19-15_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 128 KB |
4-27-17_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 138 KB |
11-9-16_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 138 KB |
3-4-19_Key-Changes_M21-1III_v_5_SecA.docx | May 16, 2019 | 125 KB |
Change-December-19-2014-Transmittal-Sheet-M21-1MRIII_v_5_SecA_TS.docx | May 16, 2019 | 42 KB |
Change-June-25-2015-Transmittal-Sheet-M21-1MRIII_v_5_SecA_TS.docx | May 16, 2019 | 50 KB |
in Chapter 5 Military Retirement Pay, Part III General Claims Process, Subpart v General Authorization Issues and Claimant Notification
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