M21-1, Part III, Subpart vi, Chapter 3, Section B – Awards to Foreign Resident Beneficiaries

In This Section

Introduction

• prohibition on the release of  payments
• Department of Treasury listed countries
• corresponding with claimants in listed countries, and
• special account called Secretary of the Treasury, Proceeds of Withheld Foreign Checks.

Change Date

III.vi.3.B.1.a.  Prohibition on the Release of Payments

• receive the payment, or
• be able to negotiate a payment for full value.

• Department of Treasury listed countries, see M21-1, Part III, Subpart vi, 3.B.1.b, and
• development of claims filed by and authorization of awards to residents in listed countries, see M21-1, Part III, Subpart vi, 3.B.3.

III.vi.3.B.1.b.  Department of Treasury Listed Countries

• Democratic People’s Republic of Korea (North Korea), and
• Republic of Cuba (Cuba).

III.vi.3.B.1.c.  Corresponding With Claimants in Listed Countries

III.vi.3.B.1.d.  Special Account Called Secretary of the Treasury, Proceeds of Withheld Foreign Checks

• persons to whom awards had been made before October 9, 1940 (when the law prohibiting payments to listed countries was enacted), and
• those subsequently taking residence in listed countries.

Introduction

• expenses for services offered by the Department of State, and
• services offered by consular officers.

Change Date

III.vi.3.B.2.a.  Expenses for Services Offered by the Department of State

III.vi.3.B.2.b.  Services Offered by Consular Officers

• Furnish general information and assistance, including assistance to claimants, beneficiaries, and apportionees in the preparation of applications for benefits
• Inspect and approve institutions for pursuit of courses of instruction by children between the ages of 18 and 23
• If requested by VA, investigate and develop claims
• Administer oaths for VA purposes
• Take action as requested by the Under Secretary for Benefits or designee on matters involving guardianship, and
• Make arrangements for physical examinations as requested by the appropriate VA regional office.

Introduction

• when to develop claims from and authorize awards to foreign residents, and
• when not to develop claims from and authorize awards to foreign residents.

Change Date

III.vi.3.B.3.a.  When to Develop Claims From and Authorize Awards to Foreign Residents

• requests that benefit payments show a U.S. Foreign Service post address in an unlisted country
• specifies the U.S. Foreign Service post address to which the payments are to be forwarded, and
• indicates that he/she will take delivery at that U.S. Foreign Service post in person.

III.vi.3.B.3.b.  When Not to Develop Claims From and Authorize Awards to Foreign Residents

• the claimant fails to request delivery of payments to a U.S. Foreign Service post address in an unlisted country, and/or
• full development of the case requires the services of the Department of State.

Introduction

• notification by the Department of Treasury
• handling adjustments for returned payments, and
• adjusting awards to beneficiaries
  • affected by termination of payment, and
  • when dependents reside in listed countries.

Change Date

III.vi.3.B.4.a.  Notification by the Department of Treasury

III.vi.3.B.4.b.  Handling Adjustments for Returned Payments

• does not include adjustments for periods prior to the month for which it was issued, discontinue the award effective the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share, or
• includes adjustment payments for periods prior to the month of issuance, adjust/reduce and discontinue the award so as to cancel the retroactive adjustment.

III.vi.3.B.4.c.  Adjusting Awards to Beneficiaries Affected by Termination of Payment

III.vi.3.B.4.d.  Adjusting Awards to Beneficiaries When Dependents Reside in Listed Countries

Introduction

• requirements for releasing withheld funds and resuming discontinued awards
• releasing withheld funds
• resuming a discontinued award
• resuming an award when the existence of the beneficiary could not be established
• developing for eligibility
• actions to release withheld funds, and
• deceased beneficiaries.

Change Date

III.vi.3.B.5.a.  Requirements for Releasing Withheld Funds and Resuming Discontinued Awards

• the country in which the beneficiary resides is removed from the Department of Treasury list
• the beneficiary establishes residence in an unlisted country, or
• the beneficiary has requested award payments be mailed to him/her in care of a U.S. Foreign Service post in an unlisted country.

• the release of frozen funds, see 38 CFR 3.653, and
• providing awards to residents in listed countries using a U.S. Foreign Service post, see M21-1, Part III, Subpart vi, 3.B.5.b.

III.vi.3.B.5.b.  Releasing Withheld Funds

• when identified as such in the claims folder
• on receipt of a claim, and
• on the furnishing of a loyalty clearance, if required by M21-1, Part III, Subpart iii, 1.E.1.

• Payment will be made from the Compensation and Pension appropriation, 36XO102.
• There is no time limit for the filing of a claim by the Veteran or dependent beneficiary.  However, evidence of continued entitlement must be submitted within one year from the date of request.

III.vi.3.B.5.c.  Resuming a Discontinued Award

• Payment is subject to proof of entitlement over the intervening period.
• There is no time limit for the filing of a claim by the Veteran or dependent beneficiary.  However, evidence of continued entitlement must be submitted within one year from the date of request.

• retroactive payments, see 38 CFR 3.653(c)(3), and
• developing for eligibility for the resumed award, see M21-1, Part III, Subpart vi, 3.B.5.e.

III.vi.3.B.5.d.  Resuming an Award When the Existence of the Beneficiary Could Not be Established

III.vi.3.B.5.e.  Developing for Eligibility

• obtaining a loyalty clearance if required by M21-1, Part III, Subpart iii, 1.E.1, and
• notifying the beneficiary of his/her right to elect the following:
  • Veterans Pension in Section 306 and Old-Law and Survivors Pension cases, or
  • DIC in death compensation cases.

III.vi.3.B.5.f.  Actions to Release  Withheld Funds

• a one-time payment to release funds for the retroactive part of the award, and
• a second award processed in the normal manner to resume payments from the final date through which payment was withheld.

III.vi.3.B.5.g.  Deceased Beneficiaries

• the beneficiary is deceased, and
• a claim for accrued benefits has not been filed within one year after the reported date of death.