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Updated Aug 22, 2022

In This Section
This section contains the topic “Processing AEWs.”

1.  Processing AEWs

Introduction
This topic contains information on processing AEWs, including

Change Date
August 22, 2022

VI.ii.4.E.1.a.  Definition: AEW
An audit error worksheet (AEW) is a document containing data regarding a Veteran’s military retired pay (MRP) and entitlement to Concurrent Retirement Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC).

VI.ii.4.E.1.b.  How AEWs Are Generated
The table below describes how AEWs are generated.
Stage
Description
1
When the Department of Veterans Affairs (VA) establishes or changes an award of disability compensation, VA electronically transmits the award data to the Defense Finance and Accounting Service (DFAS) and the Coast Guard.
2
DFAS and the Coast Guard audit the VA award data against their MRP records.
Exception:  Neither DFAS nor the Coast Guard audit VA award data against their records
  • during time periods when the Veteran was not in receipt of MRP, or
  • if the VA award action did not increase the gross award amount for any month covered by the award action.
3
If the audit reveals an adjustment of the Veteran’s disability compensation is necessary based on entitlement to CRSC or CRDP, DFAS or the Coast Guard electronically transmits audit data to the Hines Information Technology Center (ITC).
4
The Hines ITC
  • generates an AEW from the audit data
  • inserts the AEW into the corresponding electronic claims folder (eFolder), and
  • places the AEW under system control by establishing an 840 work item.

VI.ii.4.E.1.c. Maintaining Control of AEWs
Follow the instructions in the table below upon receipt of an AEW.
Step
Action
1
Is an end product (EP) 298 already pending to control the current or a previous AEW?
  • If yes, go to the next step.
  • If no, establish EP 298, CRSC/CRDP Processing.
2
Add Potential Under/Overpayment as a special issue.
3
Clear the 840 work item that the Hines ITC established (if applicable).
Note:  The proper date of claim for EP 298 is the date of the AEW, which is found in the upper right corner of the worksheet.

VI.ii.4.E.1.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 or the Coast Guard.  This process includes the generation of an award in the Veterans Benefits Management System – Awards (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, Compensation Service’s MILPAY Staff sends an e-mail to the station of origination 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.

VI.ii.4.E.1.e.  AEW Types and Messages
The table below
  • contains information about the various work items associated with AEWs, and
  • describes the action to take upon receipt of each type of work item.
Work Item
Message
Reason for Generation of the Work Item
Action
840A
CRSC/CRDP AEW –VETSNET Award Suspended
The Veteran’s award was in a suspended status when the AEW was generated.
Postpone processing of the AEW until the Veteran’s award is no longer in a suspended status.
840B
CRSC/CRDP AEW –VETSNET Award Terminated
The Veteran’s award was in a terminated status when the AEW was generated.
  • If VA terminated the award because the Veteran died,
  • If VA terminated the award for any other reason, process the AEW according to the facts found.
840C
CRSC/CRDP AEW –VETSNET Award AR Exists
An account receivable existed when the AEW was generated.
Process the AEW according to the facts found.
840D
CRSC/CRDP AEW –VETSNET Award Withholding Exists
A withholding was in place when the AEW was generated.
Process the AEW according to the facts found.
840E
CRSC/CRDP AEW –VETSNET Award Negative VA Due
The AEW contains a negative amount (a negative amount in the Due From VA column or an amount previously paid by DFAS (APPBD) or the Coast Guard (APPBC)).
Note:  The net amount due is still a positive amount.
Follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.j.
840F
CRSC/CRDP AEW –VETSNET Award Appropriate Payment Due
There were no special issues when the AEW was generated.
Note: This is the work item assigned to most AEWs; only this category of AEWs undergo the batch processing described in M21-1, Part VI, Subpart ii, 4.E.1.d.
Follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.g.

VI.ii.4.E.1.f. Initial Review of an AEW
Follow the instructions in the table below when performing an initial review of an AEW.
Note:  Defer processing an AEW until VA appoints a fiduciary if VA
  • is withholding benefits to offset a Veteran’s receipt of MRP, and
  • has rated the Veteran incompetent but has not yet appointed a fiduciary.
Step
Action
1
Use Share to compare the amount of benefits the corporate record shows VA withheld each month (for MRP only) to the amounts shown in the VA Withheld column of the AEW for the same months to ensure they match.
If the amounts do not match,
  • follow the instructions in the embedded table below, and
  • disregard the remaining steps in this table.
Notes:
  • Share displays the amount of benefits VA withheld each month on the AWARD INFORMATION tab, which users may access by selecting the AWARD/RATING button on the PERSON INFORMATION screen.
  • If a change in either the gross amount of disability compensation or the amount of disability compensation VA is withholding takes effect on a date other than the first day of the month, prorated amounts will appear in the VA Award and VA Withheld columns of the AEW.  The prorated amounts will not match the amounts shown in the corporate record.  However, the amount in the Due From VA column of the AEW will be correct.
If …
Then …
the difference between the amount in the VA Withheld column and the amount in the Due From VA column for each entitlement month displayed on the AEW matches the withholdings in the corporate record for each of the same months
clear the pending EP 298.  (No additional award action is necessary because VA has already released to the Veteran the amounts shown in the Due From VA column on the AEW.)
Important:  If the award action that released the amounts in the Due From VA column did not result in the generation of a decision notice notifying the Veteran that VA released the funds due to entitlement to CRSC or CRDP, provide such notice to the Veteran.
  • the difference between the amount in the VA Withheld column and the amount in the Due From VA column for each entitlement month displayed on the AEW does not match the withholdings in the corporate record for each of the same months, and
  • the award action that released the amounts in the Due From VA column did not change the amounts in the Total column of the corporate record for the same months
adjust the Veteran’s withholdings so they match the difference between the amount in the VA Withheld column and the amount in the Due From VA column for each entitlement month displayed on the AEW.
Note:  Under the circumstances described in this row, another AEW will not be generated.
  • the difference between the amount in the VA Withheld column and the amount in the Due From VA column for each entitlement month displayed on the AEW does not match the withholdings in the corporate record for each of the same months, and
  • the award action that released the amounts in the Due From VA column changed the amounts in the Total column of the corporate record for the same months
another AEW will be generated. Leave the EP 298 running and defer action until the new AEW is generated. When the new AEW is generated,
  • clear the corresponding 840 work item, and
  • process the AEW under the pending EP 298.
2
If the earliest entitlement month displayed on an AEW is prior to November 2009, check for an out-of-system CRSC/CRDP payment.
Rationale:  VA made out-of-system CRSC/CRDP payments from October 2006 through November 2009. If the corporate record was never updated to reflect the payment, the potential for duplicate payments exists.
References:  For more information on
3
Does the withholding in the corporate record exist solely to offset the Veteran’s receipt of MRP?
4
Follow the instructions in the table below.
If VA is withholding compensation …
Then …
for a reason other than to offset the Veteran’s receipt of MRP for all of the entitlement months the AEW covers
  • do not release the withholding
  • clear the EP 298, and
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.r, for providing notice that the Veteran is not entitled to a retroactive payment of benefits.
for a reason other than to offset the Veteran’s receipt of MRP for some but not all of the entitlement months covered by the AEW
  • do not release the withholding for those months during which VA withheld compensation for a reason other than to offset the Veteran’s receipt of MRP, and
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.r, for notifying the Veteran.
Important:  When preparing the decision notice, select The amounts the VA withheld for reasons other than retired pay option in Step 5 of the AEW Assistant.
both to offset the Veteran’s receipt of MRP and for another reason during the same month
  • release that part of the withholding that is to offset the Veteran’s receipt of MRP up to the amount in the Due From VA column of the AEW for that month, and
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.r, for notifying the Veteran.
Important:  When preparing the decision notice, select The amounts the VA withheld for reasons other than retired pay option in Step 5 of the AEW Assistant.
Note:  An AEW may include entitlement months during which a Veteran was not eligible for CRSC/CRDP (such as when a Veteran’s combined disability rating is less than 50 percent).  DFAS and the Coast Guard include these entitlements months on the AEW when they determine VA erroneously withheld compensation based on the Veteran’s receipt of MRP for those months, regardless of the Veteran’s eligibility for CRSC/CRDP.  Accordingly, the amounts in the Due From VA column of the AEW for those months are valid and should be treated the same as the amounts in the Due From VA column of the AEW for time periods during which the Veteran is eligible for CRSC/CRDP.

VI.ii.4.E.1.g. Adjusting an Award Based on an AEW
Follow the steps in the table below when it becomes necessary to adjust an award based on an AEW.
Step
Action
1
Does the AEW display an entitlement month that is earlier than November 2009?
  • If yes, go to the next step.
  • If no, go to Step 5.
2
Follow the instructions in the document titled How to Identify Out-of-System CRSC/CRDP Payments to determine whether an out-of-system adjustment was made during the time period the AEW covers.
Important:  Only automatic out-of-system adjustments are reflected on the document titled CRSC/CRDP One-Time Payment Notification from DFAS. Confirm that no manual, out-of-system adjustment was made based on receipt of an AEW by checking the Veteran’s claims folder for a corresponding decision notice.
3
Was an out-of-system adjustment made during the time period the AEW covers?
  • If yes, go to the next step.
  • If no, go to Step 5.
4
Update the PRIORS screen to reflect the out-of-system adjustment.
Reference:  For more information on updating the PRIORS screen, see Priors Award Payments Screen.
5
Subtract the amount in the Due From VA column from the amount in the VA Withheld column to determine what the withholding (for MRP) will be for each month listed on the AEW.
Exception:  If a prorated amount (as described in Step 1 of the table in M21-1, Part VI, Subpart ii, 4.E.1.f) appears in the VA Withheld column of the AEW, follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.m–q, to determine the amount of the withholding.
6
Enter the result of the calculation in Step 5 in the ADJUSTMENT AMOUNT field on the RETIRED PAY tab.
References:  For more information on
7
Generate the award.
Important:  Ensure the award generates from a date no later than the earliest date shown in the Entitlement Month column of the AEW.
8
Calculate the retroactive amount that VA owes the Veteran by totaling all the amounts displayed in the Due From VA column of the AEW.
9
Verify that the result of the calculation described in Step 8 equals the Net Effect of the award adjustment that is displayed in the award-processing application.
10
Follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.r for notifying the Veteran of the award adjustment.

VI.ii.4.E.1.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 or APPBC (if present)).
If …
And …
Then …
none of the AEWs have been processed.
—
process the newest AEW and disregard the older one(s).
one of the older of the AEWs was processed as an out-of-system adjustment
the amounts (including the amounts in the Due From VA column and the APPBD or APPBC (if present)) and the dates on all the AEWs are identical
  • reduce the withholdings (for MRP only), during the time period the AEWs cover, by the corresponding amounts displayed in the Due From VA column
  • update the PRIORS screen to reflect the out-of-system adjustment, and
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.r for providing notice that the Veteran is not entitled to additional benefits based on the newer AEW(s) (because VA previously paid the additional benefits that were due the Veteran when it processed the older AEW).
the newest AEW shows VA owes the Veteran more compensation than the older one
the newest AEW shows VA owes the Veteran less compensation than the older one
request guidance from the MILPAY Staff by sending an e-mail to VAVBAWAS/CO/MILPAY.
  • VA just recently processed one of the older of the AEWs (so recently that DFAS or the Coast Guard did not have the award data from the corresponding award adjustment when it performed the audit referenced in Stage 2 of the process described in M21-1, Part VI, Subpart ii, 4.E.1.b), and
  • the amounts in the VA Award column of the newest AEW are identical to the amounts in the VA Award column of the AEW that was just processed
the newest AEW shows VA owes the Veteran less compensation than the older one
request guidance from the MILPAY Staff by sending an e-mail to VAVBAWAS/CO/MILPAY.
the newest AEW shows VA owes the Veteran more compensation than the older one
take award action to adjust the withholdings (for MRP only) so that the difference between the amount in the VA Withheld column and the Due From VA column for each entitlement month displayed on the newer AEW matches the withholdings in the corporate record for the same months.
one of the older of the AEWs was processed
the amounts (including the amounts in the Due From VA column and the APPBD or APPBC (if present)) and the dates on all the AEWs are identical
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.r, for providing notice that the Veteran is not entitled to additional benefits based on the newer AEW(s) (because VA previously paid the additional benefits that were due the Veteran when it processed the older AEW), and
  • clear the corresponding 840 work item and controlling EP 298.
Reference:  For more information about updating the PRIORS screen, see Priors Award Payments Screen.

VI.ii.4.E.1.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:
  • If an APPBD/APPBC is displayed on only the newest AEW, follow the instructions in the table in M21-1, Part VI, Subpart ii, 4.E.1.j, after following the instructions in the table below.
  • Request guidance from the MILPAY Staff by sending an e-mail to VAVBAWAS/CO/MILPAY if
    • the older AEW(s) has(have) not been completely superseded by the newest AEW (as explained in the last row of the table below), and
    • an APPBD/APPBC is displayed on (any of) the older AEW(s).
  • If all unprocessed AEWs are dated prior to June 1, 2011, the newest one supersedes the older one(s), regardless of the entitlement months any or all of the unprocessed AEWs cover.
If …
Then …
the newest AEW displays an entitlement month
adjust the MRP withholding for that entitlement month based on that AEW.
any but the newest of the unprocessed AEWs displays an entitlement month that is earlier than the earliest entitlement month on the newest AEW
adjust the MRP withholding for that entitlement month using the Due From VA amount displayed on the newest of the AEWs that displays that entitlement month.
  • an entitlement month appears on an older, unprocessed AEW that does not appear on the newest AEW, and
  • that entitlement month is later than the earliest entitlement month on the newest AEW
the Due From VA amount for that month is $0.00.
none of the entitlement months on the older, unprocessed AEW(s) are earlier than the earliest date on the newest AEW
ignore the older, unprocessed AEW(s) (including any APPBDs or APPBCs that appear on it(them)), since the newest AEW completely supersedes the older one(s).
Example:
Scenario:
  • The entitlement months of December 2004 through May 2005 appear on the older of two unprocessed AEWs.
  • The following entitlement months appear on the newest of two unprocessed AEWs:
    • January 2005
    • March 2005, and
    • April 2005.
Results:
  • The Veteran is entitled to the Due From VA amount displayed on the older AEW for December 2004.
  • The Veteran is entitled to the Due From VA amounts displayed on the newest AEW for January, March, and April 2005.
  • The Due From VA amount for February and May 2005 is $0.00.

VI.ii.4.E.1.j.  Special Handling of AEWs That Display an APPBD or APPBC
If an AEW displays an amount to the right of the text Amount Previously Paid by DFAS or Amount Previously Paid by Coast Guard,
  • follow the steps in M21-1, Part VI, Subpart ii, 4.E.1.g for routine processing of the AEW, but
  • postpone authorization of the award adjustment pending completion of the steps in the table below.
Notes:
  • The Net Effect of the award adjustment the award-processing application displays should still match the total of all amounts displayed in the Due From VA column on the AEW.
  • To calculate the amount of the Veteran’s payment (so it can be provided in the corresponding decision notice), subtract the Amount Previously Paid by DFAS from the total of all amounts displayed in the Due From VA column on the AEW.
Step
Action
1
Use the AEW Assistant to generate the AEW Letter to Finance.
2
E-mail a copy of the letter to the finance activity.
Note:  The letter asks the finance activity to establish the APPBD or APPBC as a “collectible receivable.”
3
Upload a copy of the letter to the Veteran’s eFolder.
4
After the finance activity establishes the collectible receivable, refer the award adjustment for authorization.
Note:  The award adjustment must be authorized within two days in order to avoid Debt Management Office involvement.

VI.ii.4.E.1.k.  Special Instructions About Rounding Down the Amount in the Due From VA Column
When processing older AEWs, the practice of rounding down the amount in the Due From VA column will depend on the adjustment date shown on the AEW.  The table below explains when rounding down is/is not appropriate.
If processing AEW award line dated …
Then …
prior to December 2013
round down the amount in the Due From VA column.
December 2013 or later
do not round down the amount in the Due From VA column.
 
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.

VI.ii.4.E.1.l. 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,
  • release the amount shown in the VA Withheld column for the same month, and
  • include the following paragraph in the What Is Your Entitlement section of the decision notice:
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:
  • Entitlement Month:  March 2014
  • VA Withheld:  $213.15
  • Due from VA:  $213.00
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.

VI.ii.4.E.1.m.  Processing AEWs That List a Month in Which VA Adjusted Disability Compensation Effective 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 either the gross or net amount of a Veteran’s disability compensation changed effective 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, but
  • the amount in the Due From VA column of the AEW for that month
    • will be correct, and
    • represents the amount VA must release to the Veteran for that month.
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 either the gross or net amount of a Veteran’s disability compensation changed effective a day other than the first day of the month vary depending on a variety of factors.  Follow the instructions in
    • VA withheld benefits during a month after
      • December 31, 2013, in which the Veteran’s combined disability rating for service-connected (SC) disabilities was 50 to 90 percent, or
      • December 31, 2004, if the Veteran is totally disabled (on a schedular basis or on the basis of a total disability rating based on individual unemployability (TDIU)) due to SC disabilities, and
    • the Veteran retired based on length of service, or
  • the table below in all other situations.
If …
Then follow instruction in …
  • VA withheld benefits to offset the Veteran’s receipt of MRP from the
    • first day of the month to a later date within the same month, and
    • a day within the month to the end of the month, and
  • both withholdings are equal to or greater than the amount shown in the Due From VA column of the AEW
the amount of benefits VA withheld to offset the Veteran’s receipt of MRP is less than the amount shown in the Due From VA column of the AEW
VA withheld benefits to offset the Veteran’s receipt of MRP from either (not both) the
  • first day of the month to a later date within the same month, or
  • a day within the month to the end of the month

VI.ii.4.E.1.n.  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
  • there is a withholding in place for MRP
    • from the first day of the month, and
    • from a day other than the first day of the month, and
  • each of the amounts withheld for MRP is equal to or greater than the amount shown in the Due From VA column of the AEW for the same month.
Note:  Follow the instructions in M21-1, Part VI, Subpart ii, 4.E.1.o 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.

VI.ii.4.E.1.o.  Processing AEWs With an Amount Less Than the Amount Shown in the Due From VA Column
Follow the instructions in the table below if
  • there is a withholding in place for MRP
    • from the first day of the month, and
    • from a day other than the first day of the month, and
  • any of the amounts withheld for MRP are less than the amount shown in the Due From VA column of the AEW for the same month.
Step
Action
1
Subtract the smaller of the amounts VA records show VA withheld (to offset the Veteran’s receipt of MRP) during the month in question from the larger amount that VA records show VA withheld for the same reason during the same month.
2
Subtract the smaller of the amounts VA withheld during the month in question from the amount shown in the Due From VA column on the AEW for the same month.
3
Divide the result of the calculation described in Step 2 by the number of days of the same month during which VA withheld the larger amount of benefits.
4
Multiply by 30 (days) the result of the calculation described in Step 3.
5
Subtract the result of the calculation described in Step 4 from the result of the calculation described in Step 1.
6
During the time period when the smaller withholding was in effect, withhold $0.00.
7
During the time period when the larger withholding was in effect, withhold the result of the calculation described in Step 5.
Example:
Scenario:
  • VA records show a withholding (to offset the Veteran’s receipt of MRP) of
    • $1,457.00, effective December 1, 2012
    • $1,491.00, effective September 9, 2013, and
    • $1,614.00, effective October 1, 2013.
  • The Due From VA column on an AEW shows
    • $1,457.00 for the month of August 2013
    • $1,481.00 for the month of September 2013, and
    • $1,614.00 for the month of October 2013.
Calculations:  Following the procedures described in this block, the result of the calculation described in
  • Step 1 is $34.00 ($1,491.00 minus $1,457.00)
  • Step 2 is $24.00 ($1,481.00 minus $1,457.00)
  • Step 3 is $1.0909 ($24.00 divided by 22 (days))
  • Step 4 is $32.73 ($1.0909 multiplied by 30 (days)), and
  • Step 5 is $1.27 ($34.00 minus $32.73).
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.

VI.ii.4.E.1.p.  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) from either (but not both)
  • the first day of the month to a later date within the same month, or
  • a day within the month to the end of the month.
Step
Action
1
Divide the amount shown in the Due From VA column on the AEW for the month in question by the number of days VA withheld benefits.
2
Multiply by 30 (days) the result of the calculation described in Step 1.
3
Subtract the result of the calculation described in Step 2 from the amount of the withholding (to offset the Veteran’s receipt of MRP) that is shown in VA records for the same month.
Note:  The result of the calculation described in this step represents the new withholding (to offset the Veteran’s receipt of MRP) for the month in question.
Example:
Scenario:
  • VA records show
    • a cost-of-living adjustment, effective December 1, 2004, with no withholdings
    • an adjustment in the Veteran’s award, effective September 26, 2005, with a withholding of $63.00 (to offset the Veteran’s receipt of MRP), and
    • a third adjustment, effective October 1, 2005, with a new withholding of $109.00 (to offset the receipt of MRP).
  • The Due From VA column on an AEW for the Veteran shows
    • $93.00 for the month of October 2005, and
    • $10.00 for the month of September 2005.
Calculations:  Following the procedures described in this block, the result of the calculation described in
  • Step 1 is 2 ($10.00 divided by 5 (days))
  • Step 2 is $60.00 (30 (days) multiplied by 2), and
  • Step 3 is $3.00 ($63.00 minus $60.00)

VI.ii.4.E.1.q.  Processing AEWs When the Veteran Is Eligible for Concurrent Receipt of the Full Amount of Compensation and MRP Based on Length of Service
If the subject of the AEW is eligible for concurrent receipt of the full amount of disability compensation and MRP (based on length of service, not disability), 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 changed either the gross or net amount of the Veteran’s disability compensation effective a day other than the first day of the month.
A Veteran is eligible for concurrent receipt of the full amount of disability compensation and MRP if one of the three sets of conditions listed in the table below is met.
Set
Conditions
1
  • The month in question is January 2005 or later.
  • The AEW shows the Veteran is authorized CRDP for the same month.
  • A VA rating of 100-percent disability or TDIU due to SC disabilities was in effect for the same month.
2
  • The month in question is January 2014 or later.
  • The AEW shows the Veteran is authorized CRDP for the same month.
3
The AEW shows the Veteran is authorized 100 percent of CRSC for the month in question.
Note:  Assume a Veteran retired based on length of service (rather than disability) if the
  • MILITARY HISTORY segment in the Veterans Information Solution (VIS) displays A, B, or C in the column labeled Ret Type
  • DFAS/CG PAYMENTS screen in VIS displays A, B, or C in the column labeled Ret Type Cd, or
  • HUNT MBRENT screen in the Retired Casualty Pay Subsystem (RCPS) displays something other than
    • no RET LAW field, or
    • a RET LAW field that is blank or contains one of the following entries:  1201, 1202, 1204, 1205, or 0000.
References:  For more information about using

VI.ii.4.E.1.r.  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:
  • Enclose a copy of the AEW with the notice.
  • Use of the AEW Assistant to generate the notice is mandatory.