In This Chapter

Introduction

• automatic suspension of payments on a Veteran’s disappearance
• processing an 810 work item (810WI), and
• actions to take following receipt of a six-month follow-up notice on an 810WI.

Change Date

VI.iii.4.1.a.  Automatic Suspension of Payments on a Veteran’s Disappearance

• payments are automatically suspended during processing of the returned check, and
• an 810 Work Item, Notice of Benefit Payment Transaction (810WI), is generated with claim label 612 Account Suspended – Undeliverable Payment, as notification of the suspended payments.

• M21-4, Appendix B, 3 and 4, and
• M21-4, Appendix C, 1.b.

VI.iii.4.1.b.  Processing an 810WI

VI.iii.4.1.c.  Actions to Take Following Receipt of a Six-Month Follow-Up Notice on an 810WI

• successful,
  • update the corporate record to reflect the correct address, and
  • restart the Veteran’s award effective the date in the LAST PAID DATE field on the CURRENT AND HISTORICAL AWARD INFORMATION page in VBMS, or
• unsuccessful, follow the instructions in
  • Steps 1 through 6 of the procedure described in M21-1, Part II, Subpart i, 2.C.6.d, and
  • the table below.

• updating a Veteran’s address, see M21-1, Part II, Subpart iii, 3.B.1.b or c, and
• stopping an award due to a Veteran’s disappearance, see the VBMS Awards User Guide.

Introduction

• paying a Veteran’s benefits to a dependent(s)
• developing for the dependent’s entitlement
• how to prepare an award of a Veteran’s benefits to a dependent(s)
• paying
  • disability compensation to dependents
  • the Dependency and Indemnity Compensation (DIC) rate to a parent(s), and
  • pension to dependents
• example 1:  determining payment rates
• example 2:  determining payment rates, and
• example 3:  determining payment rates.

Change Date

VI.iii.4.2.a.  Paying a Veteran’s Benefits to a Dependent(s)

• a spouse
• children, or
• parents (in disability compensation cases).

VI.iii.4.2.b.  Developing for the Dependent’s Entitlement

• To establish relationship, use VA Form 21-686c, Application Request to Add and/or Remove Dependents.
• Although VA Form 21-0788 is a form VA uses to determine a claimant’s entitlement to an apportionment, the instructions in M21-1, Part VII, Subpart iii, 1.A, are not for application in determining entitlement to the payment of a Veteran’s benefits to a dependent(s) under 38 CFR 3.656.

VI.iii.4.2.c.  How to Prepare an Award of a Veteran’s Benefits to a Dependent(s)

VI.iii.4.2.d.  Paying Disability Compensation to Dependents

VI.iii.4.2.e.  Paying the DIC Rate to a Parent(s)

• use the income of the parent(s) to determine the rate payable, and
• leave a remark on the award document that provides the income data used to justify the rate paid.

VI.iii.4.2.f.  Paying Pension to Dependents

VI.iii.4.2.g.  Example 1:  Determining Payment Rates

VI.iii.4.2.h.  Example 2:  Determining Payment Rates

VI.iii.4.2.i.  Example 3:  Determining Payment Rates

Introduction

• establishing control for a decision on presumption of death
• handling controls in
  • pension cases, and
  • compensation cases
• effective date for adjustment of compensation awards
• continuing and discontinuing awards for insurance purposes, and
• adjusting apportionee awards when insurance purpose awards are discontinued.

Change Date

VI.iii.4.3.a.  Establishing Control for a Decision on Presumption of Death

• establishing control, see Step 5 of the tables in M21-1, Part XI, Subpart i, 2.C.2.b and c, and
• presumption of death, see 38 CFR 3.656(c).

VI.iii.4.3.b.  Handling Controls in Pension Cases

• cancel any controls established for a future examination, and
• consider the Veteran’s disability, income, and net worth status as static while their whereabouts are unknown.

VI.iii.4.3.c.  Handling Controls in Compensation Cases

VI.iii.4.3.d.  Effective Date for Adjustment of Compensation Awards

VI.iii.4.3.e.  Continuing and Discontinuing Awards for Insurance Purposes

• a rating decision reduces the total compensation entitlement to an amount less than that required for insurance purposes, or
• an automatic renewal of term insurance or other special provision requires an amount greater than the total amount of compensation payable.

VI.iii.4.3.f.  Adjusting Apportionee Awards When Insurance Purpose Awards Are Discontinued

Change Date

VI.iii.4.4.a.  Actions Upon Reappearance of a Veteran

• resumption of payments, see 38 CFR 3.158(c), and
• payments to dependents upon the disappearance of the Veteran, see M21-1, Part VI, Subpart iii, 4.2.