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Updated Jan 23, 2023

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

1.  General Information on Waivers of VA Benefits to Receive Drill Pay

Introduction
This topic contains general information on waivers of VA benefits to receive drill pay, including

Change Date
August 4, 2022

VI.ii.3.A.1.a.  Definition:  Drill Pay
The term drill pay refers to the monetary benefits a reservist or member of the National Guard receives for performing active or inactive duty training.
 
VA Form 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances, which is discussed elsewhere in this topic, uses the terms military pay and training pay instead of drill pay.

VI.ii.3.A.1.b.  Prohibition Against Concurrent Receipt of Drill Pay and VA Benefits
10 U.S.C. 12316 and 38 U.S.C. 5304(c) prohibit the concurrent receipt of drill pay and Department of Veterans Affairs (VA) disability compensation or pension.
  • Veterans who perform active or inactive duty training must choose the benefit they prefer and waive the other.
  • Most Veterans choose to receive drill pay instead of disability compensation or pension because drill pay is typically the greater benefit.  These Veterans must waive their VA benefits for the same number of days they received drill pay.
  • Concurrent receipt of VA benefits and the subsistence allowance that a Veteran in the Senior Reserve Officers’ Training Corps (SROTC) might receive is not prohibited.  Only concurrent receipt of VA benefits and pay the Veteran receives for active or inactive duty training in the SROTC is prohibited.
Exception:  According to VAOPGCPREC 10-1990, a reservist or member of the National Guard may concurrently receive VA benefits and the “temporary disability compensation” described in 37 U.S.C. 204(g), (h) and (i).
 
Reference:  For more information on the prohibition against concurrent receipt of active service pay and VA compensation or pension, see

VI.ii.3.A.1.c.  Process for Identifying and Notifying Veterans Who Concurrently Received Drill Pay and VA Benefits
The table below describes how VA identifies and notifies Veterans who concurrently received drill pay and VA benefits.
Stage
Description
1
At the end of each fiscal year, the Defense Manpower Data Center (DMDC) sends an electronic file to the Hines Information Technology Center (ITC) that identifies Veterans who received both drill pay and VA disability compensation or pension during that fiscal year.
 
Note:  If an interruption occurs in obtaining this data from DMDC, the file may include drill pay data for one or more prior years.
2
Before processing the file, the Hines ITC updates the corporate record of each Veteran to reflect the number of days for which drill pay was received during the prior fiscal year.
Notes:
  • The update is visible in the DRILL PAY PROFILE field, which is located on the DRILL PAY tab on the AWARD ADJUSTMENTS screen.
  • The number in the DRILL PAY PROFILE field does not account for non-award days, as defined in M21-1, Part VI, Subpart ii, 3.A.1.e.
  • If DMDC sends drill pay data for multiple fiscal years, only the data pertaining to the most recent fiscal year appears in the DRILL PAY PROFILE field.
References:  For more information on viewing drill pay data in
  • the Veterans Benefits Management System (VBMS), see the VBMS Awards User Guide, and
  • Veterans Service Network (VETSNET) Awards, see the VETSNET Awards Handbook.
3
The Hines ITC
  • generates a VA Form 21-8951 for each Veteran identified in the electronic file
  • sends the form for completion to most of the Veterans identified in the electronic file, and
  • uploads a copy of the form into each Veteran’s electronic claims folder (eFolder).
Notes:
  • Starting with the VA Form 21-8951 that the Hines ITC issued to Veterans for fiscal year 2015, the ITC began
    • attaching a cover letter to each form that serves as a notice of proposed adverse action (should the recipient fail to return the form within 60 days), and
    • uploading a copy of the cover letter into the corresponding eFolder.
  • There are some circumstances under which the Hines ITC is unable to send VA Form 21-8951 to a Veteran who received drill pay.  M21-1, Part VI, Subpart ii, 3.A.1.i contains instructions for handling such cases.
 
Note:  VA considered the completion of VA Form 21-8951 a one-time waiver of drill pay from 1989 until 1995, when it began requiring Veterans to complete the form annually.

VI.ii.3.A.1.d.  Information Contained on the VA Form 21-8951 the Hines ITC Generates
The VA Form 21-8951 that the Hines ITC generates
  • informs each Veteran
    • DMDC has identified the receipt of drill pay, and
    • the law prohibits the concurrent payment of drill pay and VA disability compensation or pension, and
  • displays the
    • Veteran’s name, address, contact information, and file number and/or Social Security number (SSN), and
    • number of days for which the Veteran received drill pay during the specified fiscal year.
Note:  The HINES ITC may, in some instances, generate VA Form 21-8951-2, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances, in lieu of VA Form 21-8951.  In such cases, consider the two forms as equivalents for the purposes of applying relevant procedures in this section.

VI.ii.3.A.1.e.  Definition:  Non-Award Days
The term non-award days, for the purpose of this section, refers to days for which a Veteran received no compensation or pension because, for example, VA
  • stopped the Veteran’s award
    • due to a return to active duty, or
    • because the Veteran expressly requested that benefits be discontinued during a training period, or
  • wasn’t paying the Veteran disability compensation because no compensable service-connected (SC) disabilities existed.
The term does not refer to periods of time during which VA withheld a Veteran’s entire award to
  • offset receipt of military retired pay, or
  • recoup separation benefits.

VI.ii.3.A.1.f.  How Non-Award Days Affect the Number of Days Printed on VA Form 21-8951
The table below describes how non-award days are accounted for on VA Forms 21-8951 the Hines ITC generates starting with the forms for fiscal year 2020.  The rules described in M21-1, Part VI, Subpart ii, 3.A.1.g, were programmed into the computer system that makes the calculations described in the table.
Stage
Description
1
For each month the Veteran had no non-award days, a computer system totals the number of days shown in the columns titled Drill Days and Active Duty Training Days of the table titled Fiscal Year Monthly Drill Pay in the Veterans Information Solution (VIS).
Notes:
  • The total number of days may exceed 30.
  • The table titled Fiscal Year Monthly Drill Pay is viewable by selecting a fiscal year in the section titled Drill Pay Days on the MILITARY HISTORY screen in VIS.
2
For each month during which the Veteran had at least one non-award day, the system
  • totals the number of days shown in the columns titled Drill Days and Active Duty Training Days for that month, and
  • subtracts from the total the number of non-award days the Veteran had during the same month.
Note:  The lowest number the system recognizes in the calculation described in this stage is zero.
3
The system takes the results of the calculation described in Stage 2 for each month during which the Veteran had at least one non-award day and adds them together.
4
The system totals the results of the calculations described in Stages 1 and 3.
Note:  This total becomes the number of training days the Hines ITC prints on VA Form 21-8951.
Example:
Scenario:
  • VA stopped a Veteran’s award effective May 25, 2020, because the Veteran returned to active duty (making six the number of non-award days for the month of May).
  • A total of eight days is shown in the columns titled Drill Days and Active Duty Training Days for May 2020.
Result:  The number of days of pay for drill(s)/training that the system will count for the month of May is two (8 – 6 = 2).
Important:
  • Claims processors must
    • use the Drill Pay Calculator to make the calculations described in the table above – applying the rules described in M21-1, Part VI, Subpart ii, 3.A.1.g –
      • to determine the number of days of VA benefits they must withhold when processing VA Forms 21-8951 for fiscal years 2017 through 2019 that VA receives from a Veteran with non-award days, or
      • under the circumstances described in M21-1, Part VI, Subpart ii, 3.A.5.e, and
    • upload a copy of the calculator results to the eFolder.
  • The number of training days printed on VA Forms 21-8951 that the Hines ITC generated for fiscal years prior to 2020 consisted of a total of the number of days for which the Veteran received drill pay for the entire fiscal year.

VI.ii.3.A.1.g.  Rules Specific to Calculations Involving Non-Award Days
Starting with VA Forms 21-8951 the Hines ITC generated for fiscal year 2020, several rules were programmed into the computer system that makes the calculations described in M21-1, Part VI, Subpart ii, 3.A.1.f.
The first rule is that the number of non-award days in a month may not exceed 30.  The remaining rules are stated in the table below.
If …
Then, when calculating the number of days of drill(s)/training for that month …
the 31st day of a month was a non-award day
do not count that day as a non-award day.
the 28th of February – in a year other than a leap year – is a non-award day
count that day as three non-award days.
the 29th of February is a non-award day
count that day as two non-award days.
the total number of days shown in the columns titled Drill Days and Active Duty Training Days for a month in which the Veteran had non-award days is greater than 30
the result may be no more than 30 minus the number of non-award days.
Example:
Scenario:
  • VA stopped a Veteran’s award of disability compensation effective October 1, 2018, because she returned to active duty on that date.
  • The Veteran was subsequently discharged on May 23, 2020.
  • VA resumed the Veteran’s award effective May 24, 2020 (making 23 the number of non-award days for the month of May).
  • A total of 43 days is shown in the columns titled Drill Days and Active Duty Training Days in VIS for May 2020.
Result:  The number of countable days of drill(s)/training for the month of May is seven.
Rationale:  Although 43 minus 23 equals 20, the rule expressed in the last row of the table above limits the result to 7 (30-23=7).

VI.ii.3.A.1.h.  Important Information About the Data VIS Displays
The numbers VIS displays in the columns titled Drill Days and Active Duty Training Days of the table titled Fiscal Year Monthly Drill Pay do not represent the number of days a Veteran attended drills and/or active duty training during a given month.  Rather, they represent the number of days of drills and/or active duty training for which a Veteran received drill pay during a given month.
Example:
Scenario:
  • A Veteran had 15 days of active duty training in May.
  • The Veteran received payment for those 15 days of active duty training in June.
Result:  The 15 days of drill pay will appear in the column titled Active Duty Training Days for the month of June, rather than the month of May.

VI.ii.3.A.1.i.  Actions to Take When the Hines ITC Is Unable to Send VA Form 21-8951
When the Hines ITC is unable to send VA Form 21-8951 to a Veteran for completion, end product (EP) 290 is automatically established.  Follow the instructions in the table below when processing the EP.
Step
Action
1
Open the Veteran’s eFolder and locate a copy of the VA Form 21-8951 that the Hines ITC uploaded into it.
2
Does the file number and/or SSN printed on VA Form 21-8951 belong to the Veteran whose name, address, and contact information are also printed on the form?
  • If yes, go to the next step.
  • If no,
    • determine whether the Veteran’s SSN is correct in the corporate record
    • update the corporate record with the correct SSN, if necessary, and
    • go to the next step.
3
Clear the pending EP 290.
4
Follow the instructions in the table below.
If the evidence of record indicates the Veteran …
Then …
  • received no drill pay, and
  • did not have a period of active duty
  • annotate the form to reflect the Veteran received no drill pay, and
  • disregard the remaining steps in this table.
  • received no drill pay, but
  • had a period of active duty for which VA has not adjusted the Veteran’s award
  • annotate the form to reflect the Veteran received no drill pay
  • disregard the remaining steps in this table, and
  • follow the instructions in M21-1, Part X, Subpart v, 2.B.
  • received drill pay, and
  • had a period of active duty for which VA has not adjusted the Veteran’s award
  • received drill pay, and
  • had a period of active duty for which VA has adjusted the Veteran’s award
Important:  If the calculation described above requires VA to withhold benefits based on the Veteran’s receipt of drill pay for a number of days that differs from the number printed on the VA Form 21-8951 referenced in Step 1,
  • skip Step 6 in this table
  • prepare a new VA Form 21-8951, (using VA Form 21-8951-2) that reflects the correct number of days, and
  • attach the VA Form 21-8951-2 to the notice of proposed adverse action referenced in Step 8 (instead of the VA Form 21-8951 referenced in Step 6).
  • received drill pay, and
  • did not have a period of active duty
go to the next step.
Reference:  For more information on electronically annotating documents in an eFolder, see the VBMS Core User Guide.
5
Establish EP 600 and add
  • Drill Pay Proposal as a contention with
    • Administrative Issue as the contention classification, and
    • a value of No in the MEDICAL field
  • Due Process, with a free-text entry of Drill Pay Proposal, as a tracked item, and
  • Potential Under/Overpayment as a special issue.
6
Print a copy of the VA Form 21-8951 referenced in Step 1.
7
Follow the instructions in the VBMS Core User Guide for generating a notice of proposed adverse action that proposes to adjust the Veteran’s award based on receipt of drill pay.
Important:  Telephone contact is not acceptable as a substitute for a written notice of proposed adverse action.
References:  For more information on
8
Attach to the notice of proposed adverse action referenced in Step 7
9
Mail the documents referenced in Step 8 to the Veteran.
10
Did the Veteran respond to the notice of proposed adverse action within 65 days?
  • If yes, go to the next step.
  • If no, go to Step 16.
11
Did the Veteran request a hearing?
12
Did VA receive the request for a hearing within 30 days of the date of the notice of proposed adverse action referenced in Step 7?
  • If yes, go to the next step.
  • If no, go to Step 15.
Reference:  For more information on handling requests for a hearing, see M21-1, Part X, Subpart ii, 3.B.3.
13
Hold the hearing and obtain all relevant evidence the Veteran identifies during the hearing.
14
15
Did the Veteran submit a completed and signed VA Form 21-8951 or VA Form 21-8951-2 with the hearing request?
Note:  Because the Veteran did not request a hearing within 30 days of the notice of proposed adverse action, VA may take the actions described in the next step or in M21-1, Part VI, Subpart ii, 3.A.5.c before it holds the hearing.
Reference:  For more information on what constitutes a “completed and signed VA Form 21-8951,” see M21-1, Part VI, Subpart ii, 3.A.5.a.
16
  • Accept as correct the number of training days shown on VA Form 21-8951.
  • Follow the instructions in M21-1, Part VI, Subpart ii, 3.B.1 for adjusting the Veteran’s award.
 
Note:  The system does not automatically upload into a Veteran’s eFolder VA Forms 21-8951 that the Veteran mails to VA.  Accordingly, regional offices (ROs) are responsible for moving the forms from the mail repository into the appropriate eFolder upon their receipt.

VI.ii.3.A.1.j.  Options a Veteran Has When Completing VA Form 21-8951
The table below describes the various options a Veteran has when completing VA Form 21-8951.
Option
Description
1
Check the box next to the sentence in Block 9 that reads: I elect to waive VA benefits for the days indicated in order to retain my training pay.
2
Take all three of the following actions:
  • declare (in Block 8) that the number of training days the Hines ITC printed on the form is incorrect
  • enter the correct number of training days in the Training Days field in Section III of the form, and
  • check the box next to the sentence in Block 9 that reads: I elect to waive VA benefits for the days indicated in order to retain my training pay.
Important:  If the Veteran declares the actual number of training days is less than the number the Hines ITC printed on VA Form 21-8951,  the signature of the Veteran’s unit commander is required on the form in most circumstances.
Note:  See M21-1, Part VI, Subpart ii, 3.A.5.a for exceptions to the general requirement for a commanding officer’s signature on VA Form 21-8951.
3
Check the box next to the sentence in Block 9 that reads:  I received no military pay and allowances during the fiscal year(s) indicated on the front of this form.
4
Check the box next to the sentence in Block 9 that reads:  I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension.

VI.ii.3.A.1.k.  Use of VA Form 21-8951-2
VA typically learns a Veteran has received drill pay through the data match described in M21-1, Part VI, Subpart ii, 3.A.1.c.  However, a Veteran may voluntarily notify VA of receipt (or anticipated receipt) of drill pay, and elect to waive VA benefits or drill pay, by completing and submitting VA Form 21-8951-2.
Notes:
  • VA Form 21-8951-2 is essentially a blank version of the Hines ITC-generated VA Form 21-8951.
  • Although VA does not require a Veteran’s unit commander to sign VA Form 21-8951 unless the Veteran asserts the actual number of training days is less than the number the Hines ITC printed on the form, VA almost always requires a Veteran’s unit commander to sign VA Form 21-8951-2.
  • Exceptions to the requirement for a unit commander’s signature on VA Form 8951, as listed in M21-1, Part VI, Subpart ii, 3.A.5.a, also apply to the VA Form 21-8951-2.

2.  Determining the Number of Days of VA Benefits a Veteran Must Waive

Introduction
This topic contains information on determining the number of days of VA benefits a Veteran must waive in order to remain entitled to drill pay, including

Change Date
March 26, 2021

VI.ii.3.A.2.a.  Number of Days Reservists and Members of the National Guard Commonly Receive Drill Pay
During a single fiscal year, reservists and members of the National Guard commonly receive drill pay for a total of 63 days, which consists of
  • 48 armory drills or training sessions, and
  • 15 days of active duty training.
Note:  Variances in the 63-day total are typically due to
  • excused absences from drills, or
  • the performance of additional drills or training for various assignments, such as
    • schooling
    • planning meetings
    • conferences
    • preparation for inspections
    • additional flying training
    • muster duty, or
    • funeral honors duty.

VI.ii.3.A.2.b.  How Reserve and National Guard Units Calculate the Number of Days of Drill Pay to Which a Veteran Is Entitled
The table below shows
  • the two types of training Veterans in the Reserve or National Guard attend, and
  • how Reserve and National Guard units calculate the number of days of drill pay to which a Veteran is entitled for each type of training.
Type of Training
Method of Calculation
armory drill and training sessions
Veterans receive one day of drill pay for each four-hour drill/training session they attend. Units may hold one or two of these sessions per day over a weekend or during a weekday.
Example:  For one “drill weekend,” a Veteran may receive four days of drill pay for attending two drill/training sessions each day.
Notes:
  • Units report the number of days for which a Veteran received drill pay, not the number of calendar days the Veteran attended drills/training.
  • Request clarification from the Veteran’s unit if questions arise as to how it calculated the number of days of drill pay to which the Veteran was entitled.
active duty training
Veterans receive one day of drill pay for each day of the annual, two-week, active duty training or “summer camp” they attend.
Important:  Do not confuse this period with drill weekends.

VI.ii.3.A.2.c.  Travel Time During Drills/Training
Include any authorized travel time for which a Veteran received drill pay when computing the number of days of VA benefits requiring waiver.

VI.ii.3.A.2.d.  Example:  Determining the Number of Days of VA Benefits a Veteran Must Waive
Scenario:  Sergeant Cummins, a reservist, is currently receiving VA compensation for diabetes.  His Reserve unit certifies he was present for
  • 25 days of armory drills/training, with two drill/training sessions each day, and
  • 15 days of active duty training.
Result:  Sergeant Cummins must waive a total of 65 days of VA benefits based on his receipt of drill pay for
  • 50 days of armory drills/training, and
  • 15 days of active duty training.

VI.ii.3.A.2.e.  Veterans Who Receive Pay for Active Duty Training Only
Occasionally, a Veteran may
  • attend armory drill/training in a no-pay status, and
  • receive pay only for the annual, active duty training attended.
Under these circumstances, the Veteran must waive VA benefits or military pay and allowances only for the number of days of active duty training attended.

3.  VA Forms 21-8951 That Are Subject to Automated Processing

Introduction

Change Date
March 17, 2022

VI.ii.3.A.3.a.  Automated Processing of Certain Drill Pay Cases
The table below describes the actions that occur each time the Hines ITC sends a Veteran the VA Form 21-8951 and cover letter referenced in Stage 3 of the process described in M21-1, Part VI, Subpart ii, 3.A.1.c.
Stage
Description
1
The system automatically establishes
  • EP 600 under the claim label Drill Pay Adjustment, and
  • a suspense date that is at least 65 days from the current date.
2
The system selects Awaiting Response for VA Form 21-8951 as the suspense reason for the EP 600.
3
The system adds the following under the pending EP 600:
  • a tracked item titled Drill Pay Proposal, and
  • a contention titled Drill Pay Adjustment for FY [fiscal year under review], showing the number of drill and active service pay days identified in each month.
4
The table below describes the next stages in the process.
If the Veteran …
Then …
responds within 65 days and
  • agrees with the number of days printed on VA Form 21-8951, or
  • makes no entry in Block 8 of the form
the RO responsible for processing the form
  • closes the tracked item referenced in Stage 3 by entering the date VA received the form in the RECEIVED column, and
  • follows the instructions in M21-1, Part VI, Subpart ii, 3.A.5.
Note:  Pension awards require manual processing at this stage.  The system does not automatically perform the actions described in the preceding sub-bullets if the Veteran is receiving pension.
responds within 65 days but
  • disagrees with the number of days printed on VA Form 21-8951, or
  • requests a waiver of military pay
the RO responsible for processing the form first takes the actions described in M21-1, Part VI, Subpart ii, 3.A.3.b.  Then the RO follows the instructions in M21-1, Part VI, Subpart ii, 3.A.5.
requests a hearing within 65 days of the date the Hines ITC mailed VA Form 21-8951 to the Veteran
the RO responsible for processing the form follows the instructions in M21-1, Part VI, Subpart ii, 3.A.3.c.
does not return VA Form 21-8951 within 65 days
the system takes the following actions as long as the tracked item referenced in Stage 3 (titled Drill Pay Proposal) is still open:
  • closes the tracked item by entering the current date in the CLOSED column
  • adjusts the Veteran’s award under the pending EP 600
  • generates and sends a decision notice to the Veteran, and
  • uploads the decision notice and corresponding award print into the Veteran’s eFolder.
Note:  Pension awards require manual processing at this stage.  The system does not automatically perform the actions described in the preceding bullets if the Veteran is receiving pension.
Note:  The system does not automatically upload into a Veteran’s eFolder VA Forms 21-8951 that the Veteran mails to VA.  Accordingly, ROs are responsible for moving the forms from the mail repository into the appropriate eFolder upon their receipt.
Note:  If a Veteran received drill pay during a period of entitlement to pension, review the Veteran’s unemployability status for pension purposes.
Reference:  For more information on reviewing a Veteran’s unemployability status for pension purposes, see M21-1, Part IX, Subpart ii, 2.B.1.

VI.ii.3.A.3.b.  Preventing the Automatic Adjustment of a Veteran’s Award
Taking the actions described in the table below prevents the system from automatically adjusting a Veteran’s award based on the number of days printed on VA Form 21-8951.
Important:  Follow the steps in the table below only upon referral to this specific block from
Step
Action
1
Add a new tracked item titled Other Request and enter Drill Pay – Manual Process as free text.
2
Close the tracked item referenced in Stage 3 of the process described in M21-1, Part VI, Subpart ii, 3.A.3.a, by entering the date VA received the form in the RECEIVED column.

VI.ii.3.A.3.c.  Hearing Requests From Veterans Whose Drill Pay Case Is Subject to Automated Processing
Follow the instructions in the table below when a Veteran, whose drill pay case is subject to automated processing (as described in M21-1, Part VI, Subpart ii, 3.A.3.a), requests a hearing within 65 days of the date the Hines ITC mailed VA Form 21-8951 to the Veteran.
Step
Action
1
Did VA receive the request for a hearing within 30 days of the date the Hines ITC mailed VA Form 21-8951 to the Veteran?
  • If yes, go to the next step.
  • If no, go to Step 5.
Reference:  For more information on handling requests for a hearing, see M21-1, Part X, Subpart ii, 3.B.3.
2
Take the actions described in M21-1, Part VI, Subpart ii, 3.A.3.b, and go to the next step.
3
Hold the hearing and obtain all relevant evidence the Veteran identifies during the hearing.
4
5
Did the Veteran submit a completed and signed VA Form 21-8951 with the hearing request?
Notes:
  • Because the Veteran did not request a hearing within 30 days of the date the Hines ITC mailed VA Form 21-8951 to the Veteran, VA may adjust the Veteran’s award before it holds the hearing.  VA may make the adjustment
    • manually (if the Veteran submitted a completed and signed VA Form 21-8951 with the hearing request), or
    • through the automated process (if the Veteran did not submit a completed and signed VA Form 21-8951 with the hearing request).
  • If the Veteran did not submit a completed and signed VA Form 21-8951 with the hearing request, the system will automatically adjust the Veteran’s award to reflect the number of training days printed on the form as soon as the suspense date referenced in Stage 1 of the procedure described in M21-1, Part VI, Subpart ii, 3.A.3.a, passes.
Reference:  For more information on what constitutes a “completed and signed VA Form 21-8951,” see M21-1, Part VI, Subpart ii, 3.A.5.a.
6
Did the Veteran agree with the number of days printed on VA Form 21-8951?

4.  Veterans That Had Active Duty and Received Drill Pay During the Same Fiscal Year

Introduction
Change Date
August 4, 2022

VI.ii.3.A.4.a.  Handling Evidence That Suggests a Veteran Had Active Duty and Received Drill Pay During the Same Fiscal Year
If a Veteran received active service pay for both active duty and drill(s)/training during the same fiscal year, VA Forms 21-8951 the Hines ITC generated for fiscal years prior to 2020 showed the combined number of days for which the Veteran received active service pay.
Follow the instructions in the table below if
  • a VA Form 21-8951 shows training in excess of 179 days, or
  • the evidence of record suggests the Veteran had active duty (for which VA has never adjusted the Veteran’s award) during the fiscal year the VA Form 21-8951 covers.
Note:  Consider a report of training in excess of 179 days on VA Form 21-8951 an indication the Veteran might have returned to active duty for a period of time.
Step
Action
1
Use VIS and/or the Defense Personnel Records Information Retrieval System (DPRIS) to determine whether the Veteran had a period of active duty during the fiscal year in question.
Important:
  • If a Veteran’s period of active duty started on or after October 1, 2020, claims processors may use the information shown in the rows below the heading Guard/Reserve Active Service (GRAS) in VIS that reflect non-training periods (identifiable by the presence of No in the column titled Training) when discontinuing a Veteran’s benefits based on return to active duty.  If a discrepancy exists between the data VIS displays and any of the following, assume the data in VIS is incorrect:
    • unvoided and uncorrected DD Form 214, Certificate of Uniformed Service
    • DD Form 214 that is corrected by a DD Form 215, Correction to DD Form 214, Certificate of Uniformed Service, and/or
    • orders that were not rescinded or revoked.
  • Prior to October 1, 2020 (the start of fiscal year 2021) the non-training periods shown in VIS were included in the number of training days printed on VA Forms 21-8951 when the Veteran was paid out of National Guard/Reserve component funds.
  • Data displayed under the heading Active Duty Service Periods in VIS is generally accurate but may be superseded by certain documentary evidence, as explained in M21-1, Part III, Subpart i, 1.B.3.c.
References:  For more information on
2
Does VIS and/or DPRIS confirm the Veteran had an unreported period of active duty?
  • If yes, go to the next step.
  • If no, go to Step 7.
3
Clear an EP 290 unless this EP was previously cleared in Step 3 of the procedure described in M21-1, Part VI, Subpart ii, 3.A.1.i.
4
Establish EP 600 and add
  • Drill Pay Proposal as a contention with
    • Administrative Issue as the contention classification, and
    • a value of No in the MEDICAL field
  • Due Process, with a free-text entry of Drill Pay Proposal, as a tracked item, and
  • Potential Under/Overpayment as a special issue.
5
Notify the Veteran VA proposes to discontinue benefits effective the date of return to active duty.  In the notice, ask the Veteran to submit the following with regard to the time period in question:
  • a copy of the associated orders or separation document, or
  • other evidence of the duty performed.
Notes:
  • Follow the instructions in the VBMS Core User Guide to generate the notice of proposed adverse action.
  • Attach VA Form 21-0789 to the notice before sending it to the Veteran.
Reference:  For more information on preparing a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.
6
After the Veteran responds or has had 65 days to respond to the notice,
  • take the proposed action unless the Veteran
    • requested a hearing within 30 days of the notice, or
    • submits evidence showing VA should not take the proposed action
  • disregard the remaining steps in this table, and
  • follow the instructions in M21-1, Part VI, Subpart ii, 3.A.4.b.
Note:  Follow the instructions in M21-1, Part X, Subpart ii, 3.B.3, if a Veteran requests a hearing in response to a notice of proposed adverse action.
7
Send a letter to the Veteran asking for the dates of active duty, if any, during the fiscal year in question and
  • a copy of the associated orders or separation document, or
  • other evidence of the duty performed during the fiscal year.
8
Follow the instructions in the table below after giving the Veteran 30 days to respond.
If …
Then …
the Veteran responds by confirming the return to active duty
the Veteran fails to respond
evidence of a return to duty is obtained from a source other than the Veteran
follow the instructions in Steps 5 and 6 of this table.

VI.ii.3.A.4.b.  Adjusting Benefits for Drill Pay After Stopping Benefits Because of a Period(s) of Active Duty
If a Veteran had active duty and received drill pay during the same fiscal year, follow the instructions in the table below after stopping the Veteran’s award during the period(s) of active duty.
Step
Action
1
2
Does the recomputed number of drill/training days, plus the number of non-award days attributed to a period(s) of active duty during the same fiscal year, exceed 360?
  • If yes,
    • prepare a new VA Form 21-8951, (using VA Form 21-8951-2)
    • enter in the Training Days field on the form the difference between 360 and the number of non-award days attributed to a period(s) of active duty, and
    • go to the next step.
  • If no,
    • prepare a new VA Form 21-8951, (using VA Form 21-8951-2) that reflects (in the Training Days field) the result of the calculation described in Step 1, and
    • go to the next step.
3
Establish EP 600 and add
  • Drill Pay Proposal as a contention with
    • Administrative Issue as the contention classification, and
    • a value of No in the MEDICAL field
  • Due Process, with a free-text entry of Drill Pay Proposal, as a tracked item, and
  • Potential Under/Overpayment as a special issue.
4
Follow the instructions in the VBMS Core User Guide for generating a notice of proposed adverse action that proposes to adjust the Veteran’s award based on receipt of drill pay.
Important:  Telephone contact is not acceptable as a substitute for a written notice of proposed adverse action.
References:  For more information on
5
Attach to the notice of proposed adverse action referenced in Step 4
6
Mail the documents referenced in Step 5 to the Veteran.
7
Did the Veteran respond to the notice of proposed adverse action within 65 days?
  • If yes, go to the next step.
  • If no, go to Step 13.
8
Did the Veteran request a hearing?
9
Did VA receive the request for a hearing within 30 days of the date of the notice of proposed adverse action referenced in Step 4?
  • If yes, go to the next step.
  • If no, go to Step 12.
Reference:  For more information on handling requests for a hearing, see M21-1, Part X, Subpart ii, 3.B.3.
10
Hold the hearing and obtain all relevant evidence the Veteran identifies during the hearing.
11
12
Did the Veteran submit a completed and signed VA Form 21-8951 or VA Form 21-8951-2 with the hearing request?
Note:  Because the Veteran did not request a hearing within 30 days of the notice of proposed adverse action, VA may take the actions described in the next step or in M21-1, Part VI, Subpart ii, 3.A.5.c before it holds the hearing.
Reference:  For more information on what constitutes a “completed and signed VA Form 21-8951,” see M21-1, Part VI, Subpart ii, 3.A.5.a.
13
Follow the instructions in M21-1, Part VI, Subpart ii, 3.B.1 for adjusting the Veteran’s award.
Example:
Scenario:
  • The number of training days printed on VA Form 21-8951 is 185.
  • Both the Veteran and personnel records retrieved through DPRIS confirm the Veteran was on active duty from June 25, 2020, through August 31, 2020.
  • The table titled Fiscal Year Monthly Drill Pay in VIS shows that in
    • June 2020, the Veteran was paid for 2 days of drills and 6 days of active duty training
    • July 2020, the Veteran was paid for 30 days of active duty training, and
    • August 2020, the Veteran was paid for 30 days of active duty training.
Actions:
  • Stop the Veteran’s benefits (based on her return to active duty) for the period June 25, 2020, through August 31, 2020.
  • Begin withholding the Veteran’s benefits (based on her receipt of drill pay), for the
    • total number of days shown in the columns titled Drill Days and Active Duty Training Days of the table titled Fiscal Year Monthly Drill Pay in VIS for the
      • months of October 2019 through May 2020, and
      • month of September 2020, plus
    • two countable days for the month of June 2020.

VI.ii.3.A.4.c.  Contemplating Periods of Service Under the ADSW Program
The number of days reported on VA Form 21-8951 may include periods of service under the Active Duty for Special Work (ADSW) program.
Duties performed under the ADSW program may be for operational, support, or training purposes.  The Department of Defense (DoD) defines ADSW as a tour of active duty to fulfill support requirements.  VA characterizes ADSW as active duty for the purpose of this topic unless the purpose for going on ADSW was to receive training.
Important:
  • Undertake development to determine the type of duty a Veteran performed while on ADSW, even though
    • the duration of service is less than 180 days, and/or
    • DoD issues the Veteran a DD Form 214 for the ADSW.
  • If the Veteran went on ADSW to receive training, treat the active service pay received during this period of time as drill pay.
  • If the duties a Veteran performed during ADSW cannot be ascertained, treat the period of service as active duty.
Reference:  For assistance in characterizing duty when a Veteran provided training as opposed to receiving it, see VAOPGCPREC 25-1990.

5.  Manual Processing of VA Form 21-8951

Introduction
This topic contains instructions for manually processing VA Form 21-8951, including

Change Date
March 17, 2022

VI.ii.3.A.5.a.  Initial Review of VA Form 21-8951
Before processing VA Form 21-8951, review the form to make sure it bears the appropriate signatures and is otherwise complete.
A VA Form 21-8951 must always bear the signature of the Veteran that completed it.  It must also bear the signature of the Veteran’s unit commander if the
  • Veteran reports fewer training days than what the Hines ITC printed on the form, and
  • none of the exceptions described under the Exception sublabel in this block apply.
Exception:  When a Veteran reports fewer training days than what the Hines ITC printed on the corresponding VA Form 21-8951, VA may accept the form without the signature of the Veteran’s unit commander if the
  • Defense Finance and Accounting Services Leave and Earnings Statement for the fiscal year under review confirms the accuracy of the number of training days the Veteran reported
  • Veteran informs VA, and VA confirms (through VIS or other means), that they retired from the Reserve/National Guard during the fiscal year under review, or
  • Veteran checks the box next to the sentence on VA Form 21-8951 that reads:  I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension.
Return an incomplete and/or unsigned form to the Veteran and advise that failure to return a completed and signed form may result in a reduction of benefits.
Important:
  • Do not treat as incomplete a VA Form 21-8951 that bears the appropriate signatures but contains no entry in Blocks 8 and/or 9 of the form.  If the Veteran makes no entry in
    • Block 8, assume the Veteran agrees with the number of training days printed on the front of the form, and
    • Block 9, assume the Veteran elects to waive VA benefits in order to retain training pay.
  • The system does not automatically upload into a Veteran’s eFolder VA Forms 21-8951 that the Veteran mails to VA.  Accordingly, ROs are responsible for moving the forms from the mail repository into the appropriate eFolder following their receipt.
References:  For more information on

VI.ii.3.A.5.b.  Alternative Means of Communicating to VA the Information a Completed VA Form 21-8951 Contains
There is no requirement that a Veteran use VA Form 21-8951 to communicate to VA the information that a completed VA Form 21-8951 would otherwise provide.  The communication must be in writing, however, and must
  • include a clear indication of which benefit (drill pay or VA benefits) the Veteran desires to waive
  • specify the fiscal year in which training took place
  • provide the number of days for which the Veteran received drill pay during that fiscal year
  • bear the Veteran’s signature, and
  • bear the signature of the Veteran’s unit commander if
    • the Veteran reports fewer training days than what the Hines ITC printed on the corresponding VA Form 21-8951, and
    • none of the exceptions described under the Exceptions sublabel in M21-1, Part VI, Subpart ii, 3.A.5.a, apply.
Note:  Policies surrounding a claimant’s intent to file a claim, as explained in M21-1, Part II, Subpart iii, 2.A, do not apply to drill-pay cases.

VI.ii.3.A.5.c.  Processing VA Form 21-8951
Follow the steps in the table below upon receipt of a VA Form 21-8951 that is complete and signed in accordance with M21-1, Part VI, Subpart ii, 3.A.5.a.
If the Veteran …
Then …
takes the action(s) described under Option 1 or 2 in M21-1, Part VI, Subpart ii, 3.A.1.j, and there is no reason to question the accuracy of the information the Veteran provided on the form
follow the instructions in M21-1, Part VI, Subpart ii, 3.B.1 for withholding the Veteran’s benefits for the number of training days either the Hines ITC or the Veteran entered on the form.
Notes:
  • If an unrelated award adjustment was made between the date the Hines ITC generated the VA Form 21-8951 and the current date, determine whether the instructions in M21-1, Part VI, Subpart ii, 3.A.5.e, apply before taking the action described in the preceding paragraph.
  • There is no requirement to issue a notice of proposed adverse action before adjusting a Veteran’s award to reflect receipt of drill pay if a notice of proposed adverse action accompanied the VA Form 21-8951 when VA sent it to the Veteran for completion.
  • The Hines ITC included a notice of proposed adverse action with all VA Forms 21-8951 that it sent to Veterans for fiscal years 2015 and later.
checks the box next to the sentence in Block 9 of the form that reads I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension
follow the instructions in M21-1, Part VI, Subpart ii, 3.A.5.d.
checks the box next to the sentence in Block 9 of the form that reads I received no military pay and allowances during the fiscal year(s) indicated on the front of this form
review the evidence of record (to include data displayed in VIS) to determine whether the Veteran was a reservist or member of the National Guard during the fiscal year in question.
  • If there is reason to question the accuracy of the Veteran’s assertion, initiate development, to include requesting a field examination, if necessary and appropriate.
  • If the evidence of record confirms the Veteran was not a reservist or member of the National Guard,
    • clear an EP 290 unless this EP was previously cleared in Step 3 of the procedure described in M21-1, Part VI, Subpart ii, 3.A.1.i, and
    • notify the Veteran that, based on the response on VA Form 21-8951, VA will make no adjustments to the award.
Reference:  For more information on using VIS, see the VIS User Guide.
 
Important:
  • Follow the instructions in M21-1, Part VI, Subpart ii, 3.A.4.a if
    • VA Form 21-8951 shows training in excess of 179 days, or
    • the evidence of record suggests the Veteran served on active duty during the fiscal year the VA Form 21-8951 covers.
  • If a Veteran received drill pay during a period of entitlement to pension, review the Veteran’s unemployability status for pension purposes.
Reference:  For more information on reviewing a Veteran’s unemployability status for pension purposes, see M21-1, Part IX, Subpart ii, 2.B.1.

VI.ii.3.A.5.d.  Actions to Take When a Veteran Chooses to Waive Military Pay
Follow the instructions in the table below if a Veteran checks the box on VA Form 21-8951 that reads I elect to waive military pay and allowances for the days indicated in order to retain my VA compensation or pension.
Step
Action
1
Has VA already adjusted the Veteran’s award to reflect receipt of drill pay during the fiscal year to which the VA Form 21-8951 refers?
  • If yes,
    • establish EP 290, using the claim label Drill Pay Adjustment, and
    • go to the next step.
  • If no, go to Step 12.
2
Did VA receive the form within one year of the later of the following dates: the date VA notified the Veteran of the award adjustment referenced in Step 1 or the end of the fiscal year to which the VA Form 21-8951 refers?
  • If yes, go to Step 5.
  • If no, go to the next step.
3
Notify the Veteran that VA cannot act on the election because VA did not receive it within one year of the later of the following dates:
  • the date VA notified the Veteran of the award adjustment referenced in Step 1, or
  • the end of the fiscal year to which the VA Form 21-8951 refers.
4
Clear the EP 290 and disregard the remaining steps in this table.
5
Make one attempt to contact the Veteran by telephone to ensure the Veteran understands that waiving military pay likely equates to waiving the greater benefit.
Note:  Military pay is usually the greater benefit unless the Veteran’s rank is
  • E6 or below and VA has awarded the Veteran disability compensation based on a total disability rating, or
  • E4 or below and VA has awarded the Veteran disability compensation based on a disability rating of 90 percent.
6
 Was telephone contact made with the Veteran?
  • If yes, go to the next step.
  • If no, go to Step 9.
7
Did the Veteran reaffirm the election to waive military pay?
  • If yes, go to Step 9.
  • If no, go to the next step.
8
  • Notify the Veteran that, as requested, VA has disregarded the election to waive military pay.
  • Clear the EP 290.
  • Disregard the remaining steps in this table.
Note:  Claims processors may provide the notification referenced in this step during the telephone call referenced in Step 6, as long as they
9
Reverse the award adjustment (referenced in Step 1) that VA made to reflect the Veteran’s receipt of drill pay.
Note:  Follow the instructions in M21-1, Part VI, Subpart iii, 2.B.1.d, if a debt exists in the Veteran’s account.
10
Has the fiscal year for which the Veteran elected to waive military pay ended?
  • If yes,
    • notify the Veteran of the action taken in Step 9, and
    • go to Step 22.
  • If no, go to the next step.
11
  • Notify the Veteran of the action taken in Step 9.  In the decision notice,
    • inform the Veteran that VA cannot take further action on the election to waive military pay because the fiscal year for which the Veteran made the election has not yet ended, and
    • instruct the Veteran to request the waiver through their unit.
  • Disregard the remaining steps in this table.
12
Did VA send the VA Form 21-8951 to the Veteran through the automated process described in M21-1, Part VI, Subpart ii, 3.A.3.a?
13
Has the fiscal year for which the Veteran elected to waive military pay ended?
  • If yes, go to Step 16.
  • If no,
    • establish EP 290, using the claim label Drill Pay Adjustment, and
    • go to the next step.
14
Prepare a decision notice that
  • informs the Veteran that VA cannot act on the election to waive military pay because the fiscal year for which the Veteran made the election has not yet ended, and
  • instructs the Veteran to request the waiver through their unit.
15
Clear the EP 290 and disregard the remaining steps in this table.
16
Make one attempt to contact the Veteran by telephone to ensure the Veteran understands that waiving military pay likely equates to waiving the greater benefit.
Note:  Military pay is usually the greater benefit unless the Veteran’s rank is
  • E6 or below and VA has awarded the Veteran disability compensation based on a total disability rating, or
  • E4 or below and VA has awarded the Veteran disability compensation based on a disability rating of 90 percent.
17
Was telephone contact made with the Veteran?
  • If yes, go to the next step.
  • If no, go to Step 20.
18
Did the Veteran reaffirm the election to waive military pay?
  • If yes, go to Step 20.
  • If no, go to the next step.
19
  • Disregard the remaining steps in this table.
  • Process the VA Form 21-8951 as if the Veteran had elected to waive VA benefits.
20
Prepare and send a decision notice to the Veteran.  In the notice,
  • identify the fiscal year for which the Veteran elected to waive military pay, and
  • inform the Veteran that, based on the election, VA will not adjust the Veteran’s award to reflect the receipt of drill pay during that fiscal year.
21
Is an EP 600 currently pending to control for return of the VA Form 21-8951 that the Veteran has now returned?
  • If yes,
    • clear the EP 600, and
    • go to the next step.
  • If no,
    • clear an EP 290, and
    • go to the next step.
22
Prepare an encrypted e-mail addressed to Compensation Service’s Military Pay Staff (VAVBAWAS/CO/MILPAY).
  • In the subject line of the e-mail, type VA Form 21-8951-Waiver of Military Pay.
  • In the body of the e-mail,
    • provide the
      • Veteran’s name and file number
      • date VA received the VA Form 21-8951, and
      • document identification number assigned to the electronic version of VA Form 21-8951, and
    • type Veteran elects to waive military pay and allowances for the days indicated in order to retain VA compensation or pension.  Please forward the form to the appropriate service department finance center.
Important:  If a Veteran reaffirmed – through the telephone contact referenced in Steps 6 or 17 of this table – the election to waive military pay, note this fact in the e-mail to Compensation Service.
23
Save a copy of the e-mail in portable document format (PDF).
Reference:  For more information on saving e-mails in PDF, see M21-1, Part II, Subpart ii, 2.A.1.b.
24
Follow the instructions in the VBMS Core User Guide for uploading the PDF file into the Veteran’s eFolder.
Important:
  • Document attempts to contact the Veteran in Steps 6 and 17 of the table according to the instructions in M21-1, Part III, Subpart i, 2.D.1.e.
  • Documentation of telephone contact with the Veteran on VA Form 27-0820 is for VA purposes only; service departments will not recognize as valid a waiver of military pay that is documented only on a VA Form 27-0820.
  • Include decision review rights, according to the instructions in M21-1, Part VI, Subpart i, 1.B.1.j, when preparing the decision notices referenced in the table above.
Reference:  For more information on preparing decision notices, see M21-1, Part VI, Subpart i, 1.B.

VI.ii.3.A.5.e.  Unrelated Award Adjustments That Were Made or Are Pending Between the Generation and Processing of VA Form 21-8951
Claims processors must use the Drill Pay Calculator to make the calculations described in the table in M21-1, Part VI, Subpart ii, 3.A.1.f, if, after the system generates a VA Form 21-8951 (for fiscal years 2020 and later) but before they process the form, VA
  • reduced or will reduce the Veteran’s gross disability compensation or pension to $0.00 from an effective date that falls within the fiscal year the VA Form 21-8951 covers, or
  • began or will begin paying the Veteran disability compensation or pension (after granting entitlement for the first time or after reducing the Veteran’s gross disability compensation or pension to $0.00) from an effective date that falls within the fiscal year the VA Form 21-8951 covers.
Important:  Claims processors must