Sorry for the mess!

The site is undergoing a massive update. All the content on the site still works but things just might look a little messy and disorganized. Most of the upgrades will probably be don by the end of the month. Thank you for your understanding!

Updated Nov 14, 2024

In This Section
This section contains the following topics:

1.  Means for Periodically Verifying the Marital Status of Surviving Spouses in Receipt of DIC and the Status of Dependents for Whom Veterans Receive Additional Compensation

Introduction
This topic contains information about the means the Department of Veterans Affairs (VA) uses to periodically verify the marital status of surviving spouses in receipt of DIC and the status of dependents for whom Veterans receive additional compensation, including

Change Date
November 14, 2024

VII.i.1.B.1.a.  Forms VA Uses for Verification Purposes
Each month, the Hines Information Technology Center (ITC) automatically releases
Cases are automatically selected for review eight years subsequent to the month an initial award is processed and beneficiaries will receive a request to complete one of the above forms.
Upon release of the forms, a 60-day diary is automatically established in the corporate record to control for their return.

VII.i.1.B.1.b.  Content of the Cover Letter That Accompanies VA Form 21-0538 and VA Form 21P-0537
The cover letter that accompanies VA Form 21-0538 and VA Form 21P-0537
  • instructs beneficiaries to respond within 60 days from the date of the request for completion of the form, and
  • informs beneficiaries that failure to respond will result in the reduction or discontinuation of benefits.
The cover letter that accompanies VA Form 21-0538 includes an enclosure that identifies (by name) the spouse and/or child(ren)
  • for whom the Department of Veterans Affairs (VA) is currently paying additional compensation, and
  • whose status is subject to verification.

VII.i.1.B.1.c.  Benefit of the Verification Process
Beneficiaries occasionally fail to notify VA of life events (such as the death of a dependent or remarriage of a surviving spouse) that require a reduction or discontinuance of their VA benefits.
The more time that passes before VA learns of the event, the larger the overpayment becomes that VA will ultimately create when it finally adjusts such beneficiaries’ awards.
Requiring the completion of VA Form 21-0538 and VA Form 21P-0537 approximately once every eight years helps reduce the size of such overpayments.
Reference:  For more information on a beneficiary’s obligation to periodically certify continued eligibility to benefits, see

VII.i.1.B.1.d.  Action to Take When Automatic Issuance of a VA Form 21-0538 or VA Form 21P-0537 Fails
When the Hines ITC cannot issue VA Form 21-0538 or VA Form 21P-0537, an 800 series work item (labeled Dependency Verification Letter Not Sent) is generated.  When the work item appears in a regional office’s (RO’s) inventory, the RO must
  • send the appropriate form to the beneficiary with a cover letter that includes the content described in M21-1, Part VII, Subpart i, 1.B.1.b
  • establish a diary under diary code 30, Local Regional Office Special Use, that expires the month after a 60-day period that begins the later of the following dates:
    • the date the work item was issued to the RO, or
    • the date the RO sent the request for completion of the form to the beneficiary, and
  • clear the pending 800 series work item.
References:  For more information on
  • establishing diaries in
    • Share, see the Share User Guide, and
    • the Veterans Benefits Management System (VBMS), see the VBMS Awards User Guide, and
  • 800 series work items, see M21-4, Appendix B.

2.  Processing VA Form 21-0538 and VA Form 21P-0537

Introduction
This topic contains information on processing VA Form 21-0538 and VA Form 21P-0537, including

Change Date
November 17, 2021

VII.i.1.B.2.a.  System Establishment of EP 330 Upon Receipt of VA Form 21-0538
Effective September 19, 2020, the intake of VA Form 21-0538 via the Centralized Mail process described in M21-1, Part II, Subpart i, 1.A.1, triggers the automatic establishment of end product (EP) 330, Dependency Verification Review.

VII.i.1.B.2.b.  Surviving Spouse’s or Veterans’ Option of Verifying the Status of Dependents by Telephone
A surviving spouse or Veteran may satisfy the requirement to complete VA Form 21P-0537 or VA Form 21-0538 by contacting a VA employee by telephone and providing to the employee the same information VA Form 21P-0537 or VA Form 21-0538 requires the surviving spouse or Veteran to provide.  The employee that takes the call must

VII.i.1.B.2.c.  Processing VA Form 21-0538
Follow the steps in the table below when processing VA Form 21-0538 or the VA Form 27-0820 referenced in M21-1, Part VII, Subpart i, 1.B.2.b.
Exception:  Follow the instructions in the attachment Historical_M21-1III_iii_5_SecK_9-18-20.docx if the Veteran returned the version of VA Form 21-0538 that preceded the September 2020 version.
Step
Action
1
Cancel the corresponding diary, if it has not yet expired.
References:  For more information on cancelling diaries in
2
Is the form incomplete in any way?
  • If yes, go to the next step.
  • If no, go to Step 4.
3
Is the form complete except for the date of the event (such as death, divorce, or adoption) that necessitates removal of a dependent(s) from the Veteran’s award?
4
Did the Veteran indicate the status of the dependent(s) has not changed?
  • If yes, go to the next step.
  • If no, go to Step 7.
5
Create a permanent, Veteran-level note in the claims-processing system that indicates VA Form 21-0538 revealed nothing to warrant an adjustment in the Veteran’s benefits.
6
Is the EP 330 referenced in M21-1, Part VII, Subpart i, 1.B.2.a or b pending?
  • If yes,
    • clear the EP, and
    • disregard the remaining steps in this table.
  • If no,
    • establish and clear the appropriate EP 330, and
    • disregard the remaining steps in this table.
7
Establish EP 130, Dependency Verification – 0538, using the date VA received VA Form 21-0538 the questionnaire as the date of claim.
8
Is the EP 330 referenced in M21-1, Part VII, Subpart i, 1.B.2.a or b pending?
  • If yes,
    • cancel the EP, and
    • go to the next step.
  • If no, go to the next step.
9
Follow the instructions in M21-1, Part VII, Subpart i, 1.B.3.b.
Exception:  If the Veteran failed to provide the date of the event that necessitates removal of a dependent(s) from the award, follow the instructions in M21-1, Part VII, Subpart i, 1.B.3.d.
Reference:  For more information on adding notes in VBMS, see the VBMS Core User Guide.

VII.i.1.B.2.d.  Processing VA Form 21P-0537
Follow the steps in the table below when processing VA Form 21P-0537 or the VA Form 27-0820 referenced in M21-1, Part VII, Subpart i, 1.B.2.b.
Step
Action
1
Take the actions described in M21-1, Part VII, Subpart i, 1.B.6.
2
Cancel the corresponding diary, if it has not yet expired.
References:  For more information on cancelling diaries in
3
Is the form incomplete in any way?
  • If yes, go to the next step.
  • If no, go to Step 5.
4
Is the form complete except for the date the surviving spouse remarried?
5
Has the surviving spouse remarried?
6
Follow the instructions in the table below.
If …
Then …
VA did not pay DIC to the surviving spouse during the period of remarriage
follow the instructions in the table in M21-1, Part VII, Subpart i, 1.B.2.e.
  • VA paid DIC to the surviving spouse during the period of remarriage, or
  • the surviving spouse reports termination of the remarriage
  • clear EP 330 – PMC Dependency Verification Review
  • establish EP 130 – PMC Dependency Verification – 0537, using the date VA received VA Form 21P-0537 as the date of claim, and
  • adjust the award, as appropriate, according to the instructions in M21-1, Part VII, Subpart i, 1.B.3.c.

VII.i.1.B.2.e.  VA Forms 21P-0537 Showing the Surviving Spouse Has Not Remarried
After completing the actions described in M21-1, Part VII, Subpart i, 1.B.2.d, follow the steps in the table below if a surviving spouse reports on VA Form 21P-0537 that no remarriage has occurred since the death of the Veteran.
Step
Action
1
Establish EP 330 – PMC Dependency Verification Review.
2
Create a permanent note in the claims-processing system that indicates VA Form 21P-0537 revealed nothing to warrant an adjustment of the surviving spouse’s benefits.
Reference:  For more information on adding notes in VBMS, see the VBMS Core User Guide.
3
Associate the note with the pending EP 330.
4
Clear the EP 330.

VII.i.1.B.2.f.  Unsigned and/or Incomplete Forms
After completing the actions described in M21-1, Part VII, Subpart i, 1.B.2.c or d, follow the instructions in the table below if
Notes:
  • M21-1, Part VII, Subpart i, 1.B.2.c or d, contain instructions for handling forms that are complete except for the date of an event that may require adjustment of a beneficiary’s award.
  • Do not treat VA Form 21P-0537 as incomplete when the
    • form confirms the marital status of the surviving spouse has not changed, and
    • information the surviving spouse failed to provide on the form is of record in the Veteran’s claims folder.
Step
Action
1
Is an EP 330, as referenced in M21-1, Part VII, Subpart i, 1.B.2.a or b pending?
  • If yes,
    • cancel the EP, and
    • go to the next step.
  • If no, go to the next step.
2
Establish EP 130, Dependency Verification – 0538 or EP 130, PMC Dependency Verification – 0537, with a suspense date that is 30 days from the current date.
3
Attempt to contact the beneficiary by telephone.
  • If the beneficiary failed to sign the form, confirm with the beneficiary the entries made on the form.
  • If the form is incomplete, obtain the missing information from the beneficiary.
4
Was telephone contact made with the beneficiary?
  • If yes,
  • If no,
    • document unsuccessful attempts to contact the Veteran by telephone as a permanent note in VBMS, and
    • go to Step 6.
Note:  If telephone contact with the Veteran was successful, but the objective(s) described in Step 3 was not met, go to Step 6.
Reference:  For more information on adding notes in VBMS, see the VBMS Core User Guide.
5
Note:  Claims processors may provide the notice referenced in Step 22 of the procedure described in M21-1, Part VII, Subpart i, 1.B.4.b, or Step 13 of the procedure described in M21-1, Part VII, Subpart i, 1.B.4.e, by telephone (during the telephone call referenced in Step 4 of this table) if
  • VA Form 21-0538 shows no change in the status of the Veteran’s dependents, or
  • VA Form 21P-0537 shows no change in the surviving spouse’s marital status.
6
Is the incomplete form a VA Form 21-0538 that is properly signed?
  • If yes, go to the next step.
  • If no, go to Step 9.
7
Does the form identify a dependent VA must remove from the Veteran’s award and is the form complete with regard to that dependent?
  • If yes, go to the next step.
  • If no, go to Step 9.
8
  • Remove the dependent from the Veteran’s award under the EP 130 established in Step 2.
  • Continue the EP following authorization of the award adjustment.
9
Return the form to the beneficiary for completion.
10
Follow the instructions in the table below.
If VA sent the beneficiary …
And the beneficiary …
Then …
returns the form within 30 days
does not return the form within 30 days
  • clear the EP established in Step 2 (unless the EP must remain pending to control an issue unrelated to the beneficiary’s failure to return the form), and
  • follow the instructions in M21-1, Part VII, Subpart i, 1.B.4.b, beginning with Step 10.
returns the form within 30 days
follow the instructions in Step 13 of the procedure described in M21-1, Part VII, Subpart i, 1.B.4.e.
does not return the form within 30 days

VII.i.1.B.2.g.  Notifying Other Business Lines of a Change in Status
Follow the instructions in the table below to determine whether it is necessary to notify other business lines when a change in status is shown on VA Form 21P-0537 or VA Form 21-0538.
If …
And the PAYMENT HISTORY screen in Share shows …
Then …
  • VA Form 21P-0537 shows a surviving spouse’s marital status has changed, or
    • the marriage between a Veteran and the spouse has ended, or
    • the Veteran’s spouse has died
the spouse/surviving spouse is receiving education benefits from VA
follow the instructions in M21-1, Part XIII, Subpart i, 1.B.3.b for notifying the regional processing office of jurisdiction.
Important:
  • Include in the notice
    • the name of the spouse/surviving spouse
    • the corresponding claim number
    • an explanation of the reason for the change in status (such as remarriage of the surviving spouse or divorce of the spouse from the Veteran)
    • the date of the event that resulted in the change in status, and
    • the effective date of the corresponding award adjustment (if an award adjustment was made).
  • Upload a copy of the e-mail into the appropriate eFolder.
VA Form 21-0538 shows the status of any of a Veteran’s dependents has changed
the Veteran is receiving training under 38 U.S.C. Chapter 31
e-mail notice to the Veteran Readiness and Employment (VR&E) mailbox of the RO that has custody of the Veteran’s Counseling/Evaluation/Rehabilitation folder.
Important:
  • Include in the e-mail
    • the Veteran’s name and claim number
    • the name of the dependent whose status has changed
    • an explanation of the reason for the change in status (such as death or divorce)
    • the date of the event that resulted in the change in status, and
    • the effective date of the corresponding award adjustment.
  • Upload a copy of the e-mail into the Veteran’s eFolder.
Example:  The mailbox for the Salt Lake City RO’s VR&E office is VAVBASLC/RO/VRE.

3.  Award Adjustments Based on Information Provided on a VA Form 21-0538 or VA Form 21P-0537

Introduction
This topic contains information on award adjustments that may be necessary based on information a beneficiary provides on VA Form 21-0538 or VA Form 21P-0537, including

Change Date
April 19, 2021

VII.i.1.B.3.a. Determining Whether Due Process Is Necessary
With few exceptions, the due process procedures set forth in M21-1, Part I, Subpart i, 1.B must be followed prior to the reduction or discontinuation of benefits.
Award adjustments based on information a beneficiary provides to VA, however, do not require due process.  In these cases, provide the beneficiary
  • contemporaneous notice of the reduction or discontinuation of benefits, and
  • the reason for the effective date of the reduction.
Note:  Awards may be adjusted based on information the beneficiary provides by telephone.
Reference:  For more information on providing contemporaneous notice of a reduction or discontinuation of benefits, see M21-1, Part X, Subpart ii, 3.C.

VII.i.1.B.3.b.  Processing a VA Form 21-0538 That Reveals a Change in the Status of a Dependent(s)
After completing the actions described in M21-1, Part VII, Subpart i, 1.B.2.c, or if referred by the instructions in M21-1, Part VII, Subpart i, 1.B.4.b or c, follow the steps in the table below if a change in the status of a Veteran’s dependent(s) necessitates removal of the dependent(s) from the Veteran’s award.
Important:  M21-1, Part VII, Subpart i, 1.B.2.c contains instructions for handling a VA Form 21-0538 on which a Veteran failed to provide the date of an event that necessitates removal of a dependent(s) from the Veteran’s award.
Step
Action
1
Adjust the Veteran’s award according to the instructions in M21-1, Part VII, Subpart i, 1.C.4.
2
Briefly explain the basis for the adjustment in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
3
Notify the Veteran of the award adjustment.
Note:  Take the actions described in M21-1, Part VII, Subpart i, 3.B.6.i, in addition to the actions described in the table above, when
  • a Veteran reports the death of a spouse or termination of their marriage, and
  • the spouse is the biological or adoptive parent of a stepchild(ren) for whom VA has paid or is paying the Veteran additional compensation.

VII.i.1.B.3.c.  Processing a VA Form 21P-0537 That Shows the Surviving Spouse Has Remarried
After completing the actions described in M21-1, Part VII, Subpart i, 1.B.2.d, or if referred by the instructions in Step 6 of the table in M21-1, Part VII, Subpart i, 1.B.4.e, follow the steps in the table below if a surviving spouse in receipt of DIC reports on VA Form 21P-0537 that remarriage has occurred.
Note:  Step 3 of the table in M21-1, Part VII, Subpart i, 1.B.2.d contains instructions for handling a VA Form 21P-0537 on which a surviving spouse failed to provide the date of remarriage.
Exception:  It might be unnecessary to discontinue DIC if the surviving spouse
  • remarried after age 57, or
  • remarried after age 55 and the marriage took place on or after January 5, 2021.
Step
Action
1
Discontinue the surviving spouse’s benefits.
2
Briefly explain the basis for the discontinuance in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
3
Notify the surviving spouse of the action taken.
Reference:  For more information on the effect of a surviving spouse’s remarriage, see

VII.i.1.B.3.d.  Processing a VA Form 21-0538 That Does Not Show the Date of the Event That Necessitates Removal of a Former Dependent(s) From a Veteran’s Award
When referred to this block from M21-1, Part VII, Subpart i, 1.B.2.c, or Step 8 of the table in M21-1, Part VII, Subpart i, 1.B.4.b, because a Veteran failed to provide the date of an event that necessitates removal of a former dependent(s) from the Veteran’s award, attempt to contact the Veteran by telephone to obtain the date.
Follow the instructions in the table below only if attempts to obtain the date from the Veteran by telephone are unsuccessful.
Note:  Follow the instructions in M21-1, Part III, Subpart i, 2.D.1.e for documenting successful and unsuccessful attempts to contact a beneficiary by telephone.
Step
Action
1
Remove the former dependent(s) from the Veteran’s award effective the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share.
2
Is there another former dependent(s) whom VA must remove from the Veteran’s award
  • If yes,
  • If no, go to the next step.
3
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
4
Prepare a decision notice regarding the action(s) taken.  In the decision notice, ask the Veteran to complete and return the VA Form 21-0538 within 30 days.  Attach the form to the decision notice and send both to the Veteran.
5
Establish EP 130, Dependency Verification – 0538, with a suspense date that is 30 days from the current date.
6
Did the beneficiary return the form within 30 days?
  • If yes, go to the next step.
  • If no, go to Step 10.
7
Cancel the EP 330 referenced in M21-1, Part VII, Subpart i, 1.B.2.a.
8
Did the Veteran provide the missing event date on the form?
  • If yes, go to the next step.
  • If no,
    • go to Step 10, and
    • when sending the notice of proposed adverse action described in Step 12, attach to it the incomplete VA Form 21-0538.
9
  • Remove the former dependent(s) identified in Step 1 from the Veteran’s award according to the instructions in M21-1, Part VII, Subpart i, 1.C.4.
  • Disregard the remaining steps in this table.
10
Clear the EP established in Step 5.
11
Establish EP 600.
  • Use the current date as the date of claim.
  • Enter a suspense date that is 65 days from the date of the notice of proposed adverse action discussed in the next step.
  • Add the Potential Under/Overpayment special issue.
12
Prepare and send to the Veteran a notice of proposed adverse action that
  • informs the Veteran VA plans to reduce benefits effective the first of the month following the date the Veteran last verified the status of the dependent(s) in question because the Veteran failed to return a completed VA Form 21-0538, and
  • advises the Veteran the proposed reduction could result in the creation of an overpayment that VA may require the Veteran to repay.
Note:  It is unnecessary, in this step, for claims processors to determine the actual date the Veteran last verified the status of the dependent(s).  To save time, claims processors may wait until they take the action described in Step 15 of this table to make the determination.  (Claims processors may simply state in the notice of proposed adverse action VA proposes to reduce your benefits effective the first of the month following the date you last verified the status of your dependent(s) without providing the actual date).
Reference:  For more information on the elements of a notice of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.2.
13
Did the Veteran return the form within 65 days?
14
Did the Veteran provide the missing event date on the form?
  • If yes,
    • remove the former dependent(s) identified in Step 1 from the Veteran’s award according to the instructions in M21-1, Part VII, Subpart i, 1.C.4, and
    • disregard the remaining steps in this table.
  • If no, go to the next step.
15
Remove the former dependent(s) identified in Step 1 from the Veteran’s award effective the first of the month following the date the Veteran last verified the status of that dependent(s).
Note:  To determine the date a Veteran last verified the status of a dependent(s), search the claims folder for the most recent communication with the Veteran that provides such verification.
Examples:  The date a Veteran last verified the status of a dependent could be
16
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
17
Notify the Veteran of the action taken in Step 15.

VII.i.1.B.3.e. Processing a VA Form 21P-0537 That Does Not Show the Date of Change in a Surviving Spouse’s Marital Status
When referred to this block from M21-1, Part VII, Subpart i, 1.B.2.d, because a surviving spouse reported on VA Form 21P-0537 that remarriage occured but did not provide the date of the marriage, attempt to contact the surviving spouse by telephone to obtain the date.
Follow the instructions in the table below only if attempts to obtain the date from the surviving spouse by telephone are unsuccessful.
Note:  Follow the instructions in M21-1, Part III, Subpart i, 2.D.1.e for documenting successful and unsuccessful attempts to contact a beneficiary by telephone.
Step
Action
1
Establish the appropriate EP 130.
2
Suspend the surviving spouse’s award and leave the EP 130 pending.
3
Briefly explain the basis for the suspension in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
4
  • Return the questionnaire to the beneficiary with a request to provide the missing information and return the questionnaire within 30 days.
    • Choose a suspense date for the EP 130 that is 30 days from the current date.
5
Did the beneficiary return the questionnaire within 30 days?

4.  Failure to Return VA Form 21-0538 or VA Form 21P-0537

Introduction
This topic contains instructions for handling a beneficiary’s failure to return a VA Form 21-0538 or VA Form 21P-0537, including

Change Date
July 25, 2022

VII.i.1.B.4.a.  How ROs Are Alerted That a Beneficiary Has Failed to Return VA Form 21-0538 or VA Form 21P-0537
If the diary referenced in M21-1 Part VII, Subpart i, 1.B.1.a or d is not cancelled within 60 days from the date of the computer-generated request for completion of VA Form 21-0538 or VA Form 21P-0537, EP 130 is generated to alert ROs that the diary established to control for return of the form has expired.
Follow the instructions in

VII.i.1.B.4.b.  Processing an EP 130 That Was Generated Because a Veteran Failed to Return VA Form 21-0538
The table below contains instructions for processing an EP 130 that was generated because a Veteran failed to return a September 2020 or later version of VA Form 21-0538.
Important:
  • If the Hines ITC sent the Veteran the version of VA Form 21-0538 that preceded the September 2020 version, follow the instructions in the attachment Historical_M21-1III_iii_5_SecK_9-18-20.docx.
  • Only the status of those dependents named on the enclosure that accompanies VA Form 21-0538 is subject to verification.
Step
Action
1
Review the claims folder and mail portal to determine whether the Veteran submitted the form and VA personnel failed to cancel the corresponding diary.
Important:
  • As indicated in M21-1, Part VII, Subpart i, 1.B.2.b, a Veteran may verify the status of dependent(s) by telephone instead of submitting VA Form 21-0538.  If a VA Form 27-0820 is of record that confirms a Veteran verified the status of dependent(s) by telephone, treat the VA Form 27-0820 as a completed VA Form 21-0538.
  • Treat as a completed VA Form 21-0538 a VA Form 21-686c that meets the following criteria.
    • VA must have received the form no earlier than one year before the date of the EP 130.
    • The form must account for all of the dependents named on the enclosure that accompanies VA Form 21-0538.
    • VA Form 21-686c must have been
      • personally signed by the Veteran (or VA-designated fiduciary), or
      • completed by a VA employee who documents that the information was received from the Veteran (or VA-designated beneficiary).
Notes:
2
Is the VA Form 21-0538 of record?
  • If yes,
    • cancel the corresponding EP, and
    • go to the next step.
  • If no, go to Step 4.
3
Was the form already processed?
  • If yes,
    • ensure any necessary award adjustments were made
    • create a permanent, Veteran-level note that indicates no adjustments were required based on the previously submitted VA Form 21-0538
    • clear EP 330, and
    • take no further action.
  • If no,
Note:  If the form was already processed and EP 692 and/or 130 are pending, these EPs should be cancelled.  When the EP 692 or 130 were automatically cleared, the RO may still clear EP 330 after reviewing the case and adding the annotation above.  If the EP  692 or 130 were manually cleared by an RO or the dependency contractor (RO 372), then no EP credit is warranted.
4
  • Confirm EP 130, Dependency Verification – 0538 is established.
  • Add the Potential Under/Overpayment special issue.
5
Attempt to contact the Veteran by telephone.
6
Was telephone contact made with the Veteran?
  • If yes, go to the next step.
  • If no, go to Step 9.
Important:  Document unsuccessful attempts to contact the Veteran by telephone as a permanent note in VBMS.
Reference:  For more information on adding notes in VBMS, see the VBMS Core User Guide.
7
Ask the Veteran to provide the same information VA Form 21-0538 requires them to provide.
8
Follow the instructions in the table below.
If the Veteran …
Then …
  • provided the same information VA Form 21-0538 requires them to provide, and
  • reported no change in the status of dependent(s)
  • record the information on VA Form 27-0820
  • treat the VA Form 27-0820 as a completed VA Form 21-0538
  • inform the Veteran (while on the telephone with them) that benefits will continue at the current rate
  • clear the EP 130, and
  • disregard the remaining steps in this table.
  • provided the same information VA Form 21-0538 requires them to provide, and
  • reported changes in the status of dependent(s)
did not provide the same information VA Form 21-0538 requires them to provide
  • document the conversation with the Veteran on VA Form 27-0820, and
  • go to the next step.
Important:
  • If a Veteran provides the same information VA Form 21-0538 requires except for the date of an event that necessitates removal of a dependent(s) from the Veteran’s award,
  • If the Veteran is unable to provide (by telephone) all of the information VA Form 21-0538 requires, allow the Veteran until the end of the next business day to provide the missing information (by telephone).  If the Veteran provides the missing information by the end of the next business day, go to Step 22.  Otherwise, go to the next step.
9
Clear the pending EP 130.
10
  • Establish EP 600 with a suspense date that is 65 days from the date of the notice of proposed adverse action discussed in the next step.
  • Add the Potential Under/Overpayment special issue.
11
Prepare and send to the Veteran a notice of proposed adverse action that
  • informs the Veteran VA plans to reduce benefits effective the first of the month following the date the Veteran last verified the status of the dependent(s) in question due to failure to return a completed VA Form 21-0538, and
  • advises the Veteran the proposed reduction could result in the creation of an overpayment that VA may require the Veteran to repay.
Notes:
  • If a Veteran failed to verify the status of a spouse, propose to remove from the Veteran’s award the spouse and any stepchildren of whom the spouse is the biological or adoptive parent.  Take this action even if the stepchildren were not on the Veteran’s award as of the date VA sent VA Form 21-0538 to the Veteran for completion.
  • It is unnecessary, in this step, for claims processors to determine the actual date the Veteran last verified the status of dependent(s) and the rate to which VA will reduce the Veteran’s award if it takes the proposed action.  To save time, claims processors may wait until they take the action described in Step 19 of this table to make these determinations.  (Claims processors may simply state in the notice of proposed adverse action VA proposes to reduce your benefits effective the first of the month following the date you last verified the status of your dependent(s) without providing the actual date and proposed rate).
References:  For more information on
12
Did VA receive the form within the additional 65-day period?
Exceptions:  The table below describes exceptions to the instructions in this step.
If VA …
Then …
  • did not receive the form, and
  • has already removed from the Veteran’s award all of the dependents or the only dependent whose status the Veteran must verify (because, for example, the dependent child(ren) turned 18 or stopped attending school shortly after VA issued the form)
go to Step 19.
received the form, but the Veteran did not sign it or the form is otherwise incomplete
Exception:  If the form is complete except for the date of the event (such as death, divorce or adoption) that necessitates removal of a dependent(s) from the Veteran’s award,
Important:  Treat as a completed VA Form 21-0538 a VA Form 21-686c that a Veteran personally signs and returns to VA in response to the notice of proposed adverse action referenced in Step 11.
13
Remove from the Veteran’s award the dependent(s) whose status the Veteran failed to verify.
Important:  Remove the dependent(s) from the Veteran’s award effective the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share.
14
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
15
Prepare and send to the Veteran a decision notice that informs them of the following:
  • VA has removed from the award the dependent(s) whose status the Veteran failed to verify, effective the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share, and
  • VA will remove from the award the same dependent(s) from an earlier effective date (the first of the month following the date the Veteran last verified the status of the dependent(s), as proposed in the notice of proposed adverse action referenced in Step 11) if the Veteran does not provide verification within 90 days.
16
Establish a diary under diary code 30, Local Regional Office Special Use, that expires the month after a 90-day period that begins on the current date.
References:  For more information on establishing diaries in
17
Go to the next step when the earlier of the following occurs:
  • the Veteran verifies the status of the dependent(s), or
  • the diary established in Step 16 expires.
Note:  Expiration of the diary established in Step 16 triggers the generation of an 810 work item labeled 631 Diary Due Date/Reason/Legend.
18
Follow the instructions in the table below.
If the Veteran …
Then …
returned VA Form 21-0538 or verified the status of the dependent(s) through other acceptable means
  • cancel the EP 330 referenced in M21-1, Part VII, Subpart i, 1.B.2.a or b, if pending
  • clear the diary established in Step 16 (if it has not yet expired)
  • establish EP 130, using the date VA received verification as the date of claim, and
  • go to Step 22.
has not yet verified the status of the dependents
  • establish EP 130, using the date of the 810 work item referenced in Step 17 as the date of claim
  • add the Potential Under/Overpayment special issue, and
  • go to the next step.
19
Remove the dependent(s) whose status the Veteran failed to verify effective the first of the month following the date the Veteran last verified the status of the dependent(s) in question.
Notes:
  • ROs must be prudent in their management of pending diaries.  If an RO were to clear the diary established in Step 16 for a reason other than that specified in Step 18, removal of the Veteran’s dependents from the proper effective date might never occur.
  • To determine the date a Veteran last verified the status of a dependent(s), search the claims folder for the most recent communication with the Veteran that provides such verification.
Examples:  The date a Veteran last verified the status of a dependent(s) could be
  • the date VA last received a VA Form 21-686c or other form listed in M21-1, Part II, Subpart iii, 1.A.1.a, that shows the status of the dependent(s), or
  • the date of the last documented telephone conversation with the Veteran regarding the status of the dependent(s).
20
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
21
  • Notify the Veteran of the action taken in Step 19.
  • Disregard the remaining step in this table.
22
Follow the instructions in the table below.
If the Veteran reports …
And …
Then …
no change in the status of dependent(s)
VA has not reduced the Veteran’s benefits due to failure to return VA Form 21-0538
  • notify the Veteran that benefits will continue at the current rate, and
  • clear any associated EP(s) that remains pending.
VA has reduced the Veteran’s benefits due to failure to return VA Form 21-0538
  • restore the payment of additional compensation for the dependent(s) the Veteran verified, effective the date VA previously reduced benefits because the Veteran failed to return the form, and
  • notify the Veteran of the action taken.
a change in the status of a dependent(s) that necessitates removal of the dependent(s) from the Veteran’s award
—
follow the instructions in M21-1, Part VII, Subpart i, 1.B.3.b.
Notes:
Reference:  For more information on notifying a Veteran of a decision VA made and/or an action VA took, see M21-1, Part VI, Subpart i, 1.B.

VII.i.1.B.4.c.  Processing an Unsigned and/or Incomplete VA Form 21-0538
When referred to this block from Step 12 of the table in M21-1, Part VII, Subpart i, 1.B.4.b, follow the instructions in the table below if
  • a Veteran fails to sign a VA Form 21-0538, or
  • the form is otherwise incomplete.
Exception:  If VA Form 21-0538 is complete except for the date of an event that necessitates removal of a dependent from a Veteran’s award, follow the instructions in M21-1, Part VII, Subpart i, 1.B.4.d.
Step
Action
1
Attempt to contact the Veteran by telephone.
  • If the Veteran failed to sign the form, confirm with the Veteran the entries made on the form.
  • If the form is incomplete, obtain the missing information from the Veteran.
2
Was telephone contact made with the Veteran?
  • If yes,
  • If no,
    • document unsuccessful attempts to contact the Veteran by telephone as a permanent note in VBMS, and
    • go to the next step.
Notes:
  • If telephone contact with the Veteran was successful, but the objective(s) described in Step 1 was not met, go to the next step.
  • Claims processors may provide the notice referenced in Step 22 of the procedure described in M21-1, Part VII, Subpart i, 1.B.4.b, by telephone (during the telephone call referenced in Step 1 of this table) if VA Form 21-0538 shows no change in the status of the Veteran’s dependents.
Reference:  For more information on adding notes in VBMS, see the VBMS Core User Guide.
3
Is the form properly signed?
  • If yes, go to the next step.
  • If no, go to Step 6.
4
Does the form identify a dependent VA must remove from the Veteran’s award and is the form complete with regard to that dependent?
  • If yes, go to the next step.
  • If no, go to Step 6.
5
  • Follow the instructions in M21-1, Part VII, Subpart i, 1.B.3.b, for removing the dependent from the Veteran’s award under the EP 600 established in Step 10 of the table in M21-1, Part VII, Subpart i, 1.B.4.b.
  • Continue the EP 600 following authorization of the award adjustment.  Extend the suspense date of the EP by 30 days from the current date.
6
Return the form to the Veteran for completion with instructions to return it within 30 days.
7
Follow the instructions in the table below.
If …
Then …
  • the Veteran returns the form within 30 days, and
  • the form is complete and signed
the Veteran
  • does not return the form within 30 days, or
  • returns the form but it remains unsigned or incomplete
go to the next step.
8
Remove the dependent(s) whose status the Veteran failed to verify effective the first of the month following the date the Veteran last verified the status of the dependent(s) in question.
9
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
10
Notify the Veteran of the action taken in Step 8.

VII.i.1.B.4.d.  Processing a VA Form 21-0538 That Does Not Show the Date of the Event That Necessitates Removal of a Former Dependent(s) From a Veteran’s Award
When referred to this block from Step 12 of the table in M21-1, Part VII, Subpart i, 1.B.4.b, because a Veteran failed to provide the date of an event that necessitates removal of a former dependent(s) from the Veteran’s award, attempt to contact the Veteran by telephone to obtain the date.
Follow the instructions in the table below only if attempts to obtain the date from the Veteran by telephone are unsuccessful.
Note:  Follow the instructions in M21-1, Part III, Subpart i, 2.D.1.e, for documenting successful and unsuccessful attempts to contact a beneficiary by telephone.
Step
Action
1
Remove the former dependent(s) from the Veteran’s award effective the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share.
2
Is there another former dependent(s) whom VA must remove from the Veteran’s award?
  • If yes,
  • If no, go to the next step.
3
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
4
Prepare a decision notice regarding the action(s) taken.  In the decision notice, ask the Veteran to complete and return the VA Form 21-0538 within 30 days.  Attach the form to the decision notice and send both to the Veteran.
5
Establish EP 130, Dependency Verification – 0538, with a suspense date that is 30 days from the current date.
6
Did the Veteran return the form within 30 days?
  • If yes, go to the next step.
  • If no, go to Step 10.
7
Cancel the EP 330 referenced in M21-1, Part VII, Subpart i, 1.B.2.a.
8
Did the Veteran provide the missing event date on the form?
  • If yes, go to the next step.
  • If no, go to Step 10.
9
  • Remove the former dependent(s) identified in Step 1 from the Veteran’s award according to the instructions in M21-1, Part VII, Subpart i, 1.C.4.
  • Disregard the remaining steps in this table.
10
Remove the former dependent(s) identified in Step 1 from the Veteran’s award effective the first of the month following the date the Veteran last verified the status of the former dependent(s).
Note:  To determine the date a Veteran last verified the status of a dependent(s), search the claims folder for the most recent communication with the Veteran that provides such verification.
Examples:  The date a Veteran last verified the status of a dependent could be
  • the date VA last received a VA Form 21-686c or other form listed in M21-1, Part II, Subpart iii, 1.A.1.a, that shows the status of the Veteran’s dependent, or
  • the date of the last documented telephone conversation with the Veteran regarding the status of the dependent.
11
Briefly explain the basis for the reduction in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
12
Notify the Veteran of the action taken in Step 10.

VII.i.1.B.4.e.  Processing an EP 130 That Was Generated Because a Surviving Spouse Failed to Return VA Form 21P-0537
The table below contains instructions for processing an EP 130 that was generated because a surviving spouse failed to return VA Form 21P-0537.
Step
Action
1
Review the claims folder and mail portal to determine whether the surviving spouse submitted the questionnaire and VA personnel failed to cancel the corresponding diary.
Important:
  • As indicated in M21-1, Part VII, Subpart i, 1.B.2.b, a surviving spouse may verify marital status by telephone instead of submitting VA Form 21P-0537.  If a VA Form 27-0820 is of record that confirms a surviving spouse verified marital status by telephone, treat the VA Form 27-0820 as a completed questionnaire.
  • Treat as a completed questionnaire a VA Form 21-686c that meets the following criteria.
    • VA must have received the form no earlier than one year before the date of the EP 130.
    • The form must account for the surviving spouse’s current marital status.
    • VA Form 21-686c must have been
      • personally signed by the surviving spouse (or VA-designated fiduciary), or
      • completed by a VA employee who documents that the information was received from the surviving spouse (or VA-designated beneficiary).
Notes:
2
Is the completed questionnaire of record?
  • If yes,
    • cancel the corresponding EP, and
    • go to the next step.
  • If no, go to Step 4.
3
Was the questionnaire already processed?
  • If yes,
    • ensure any necessary award adjustments were made
    • create a permanent, claimant-level note that indicates no adjustments were required based on the previously submitted VA Form 21P-0537
    • clear EP 330, and
    • take no further action.
  • If no,
Note:  If the form was already processed and EP 692 and/or 130 are pending, these EPs should be cancelled.  When the EP 692 or 130 were automatically cleared, the RO may still clear EP 330 after reviewing the case and adding the annotation above.  If the EP  692 or 130 were manually cleared by an RO or the dependency contractor (RO 372), then no EP credit is warranted.
4
Was the most recent questionnaire returned as undeliverable?
5
Attempt to contact the surviving spouse by telephone and obtain the same information that the VA Form 21P-0537 requires the surviving spouse to provide.
6
Follow the instructions in the table below.
If …
Then …
  • telephone contact was made with the surviving spouse
  • the surviving spouse provided the same information VA Form 21P-0537 requires, and
  • the surviving spouse reported no change in marital status
  • document the details of the call on VA Form 27-0820
  • treat the VA Form 27-0820 as a completed questionnaire
  • clear EP 130
  • inform the surviving spouse (while on the telephone) that benefits will remain unchanged, and
  • disregard the remaining steps in this table.
  • telephone contact was made with the surviving spouse
  • the surviving spouse provided the same information VA Form 21P-0537 requires, and
  • the surviving spouse reported that marital status has changed
  • telephone contact was made with the surviving spouse, and
  • the surviving spouse cannot or will not provide the same information VA Form 21P-0537 requires
  • document the conversation with the surviving spouse on VA Form 27-0820
  • clear the corresponding EP, and
  • go to the next step.
attempts to contact the surviving spouse by telephone were unsuccessful
  • document the attempts to contact the surviving spouse as a permanent note in VBMS
  • clear the corresponding EP, and
  • go to the next step.
Important:  If the surviving spouse is unable to provide (by telephone) all of the information the VA Form 21P-0537 requires, allow the surviving spouse until the end of the next business day to provide the missing information (by telephone).
Reference:  For more information on adding notes in VBMS, see the VBMS Core User Guide.
7
Establish EP 600 with a suspense date that is 65 days from the date of the notice of proposed adverse action discussed in the next step.
8
Prepare and send to the surviving spouse a notice of proposed adverse action that
  • informs the surviving spouse VA plans to discontinue benefits effective the first of the month following the date the surviving spouse last verified marital status due to failure to return a completed questionnaire, and
  • advises the surviving spouse the proposed action could result in the creation of an overpayment that VA may require the surviving spouse to repay.
Note:  To determine the date a surviving spouse last verified marital status, search the claims folder for the most recent communication with the surviving spouse that provides such verification.
References:  For more information on
9
Was the questionnaire or other evidence that meets the criteria set forth in Step 1 of this table received within the additional 65-day period?
  • If yes, go to Step 13.
  • If no, go to the next step.
Important:  Treat as a completed questionnaire a VA Form 21-686c that a surviving spouse personally signs and returns to VA in response to the notice of proposed adverse action referenced in Step 8.
10
Terminate benefits under the pending EP 600.
11
Briefly explain the basis for the termination in the OTHER PRINT REMARKS field on the PRINT REMARKS screen.
12
  • Notify the surviving spouse that VA has
    • retroactively discontinued benefits, effective the date specified in the notice of proposed adverse action, and
    • created an overpayment in the surviving spouse’s account, and
  • disregard the remaining steps of this table.
13
Follow the instructions in the table below upon receipt of a completed questionnaire.
If the surviving spouse reports …
And …
Then …
no change in marital status
VA is already paying benefits to the surviving spouse
  • notify the surviving spouse that benefits will continue at the current rate, and
  • clear the related, pending EP.
VA previously suspended or discontinued benefits because the surviving spouse failed to return the questionnaire
  • resume benefits under the pending EP at the prior rate and from the date VA previously suspended or discontinued them, and
  • notify the surviving spouse of the action taken.
marital status has changed
—
follow the instructions in M21-1, Part VII, Subpart i, 1.B.3.c, discontinuing benefits, if necessary, under the pending EP.
Notes:
  • VA will accept a completed questionnaire (or other evidence that meets the criteria set forth in Step 1 of the table above) from a surviving spouse whose benefits it discontinued because the surviving spouse failed to return the questionnaire, regardless of the amount of time that has passed since benefits were discontinued.  When this occurs,
    • establish EP 130, and
    • follow the instructions in Step 13 of the table above.
  • There is no requirement that VA Form 20-0995 accompany the completed questionnaire or the VA Form 21-686c referenced in the preceding note.
Reference:  For more information on notifying a beneficiary of a decision VA made and/or an action VA took, see M21-1, Part VI, Subpart i, 1.B.

VII.i.1.B.4.f.  Handling Cases in Which a Veteran With a Running Apportionment Fails to Return a VA Form 21-0538
Apportionments are not affected by a Veteran’s failure to return VA Form 21-0538.
If there is a running apportionment and the primary beneficiary fails to return the form after due process expires, VA will remove the dependent(s) from the primary beneficiary’s award but will not take any action on the running apportionment.
Exception:  The removal of a Veteran’s dependent(s) from the award based on failure to complete and return VA Form 21-0538 could force a reduction in the amount of an apportionment that VA made under the provisions of M21-1, Part VI, Subpart iii, 1.B.2.  In such cases, claims processors must provide a notice of proposed adverse action to the apportionee(s) before reducing the apportionment.

5.  Forms Returned as Undeliverable

Introduction
This topic contains information about handling VA Forms 21-0538 and VA Forms 21P-0537 that are returned as undeliverable due to an erroneous address, including the actions to take when the correct address of the intended recipient of the form is

Change Date
April 19, 2021

VII.i.1.B.5.a.  Correct Address of the Intended Recipient of the Form Is Known
Follow the instructions in the table below if
Step
Action
1
Is the form a VA Form 21-0538 that VA received as undeliverable mail on or after September 19, 2020?
2
Re-send the form to the correct address.
3
Establish a diary under diary code 30, Local Regional Office Special Use, that expires the month after a 60-day period that begins on the current date (to control for return of the form).
References:  For more information on establishing diary controls in
4
Correct the address in the corporate record.
5
Treat the re-sent form as an initial mailing.

VII.i.1.B.5.b.  Correct Address of the Intended Recipient of the Form Is Unknown
Follow the steps in the table below if
  • a VA Form 21P-0537 or VA Form 21-0538 is returned to VA as undeliverable because the address is incorrect, and
  • the correct address of the intended recipient is unknown.
Step
Action
1
Is the form a VA Form 21-0538 that VA received as undeliverable mail on or after September 19, 2020?
2
Follow the instructions in M21-1, Part II, Subpart i, 2.C.6.d, and, if so directed, M21-1, Part II, Subpart i, 2.C.6.g and i.  If a new address is obtained at any point in the procedures described in these blocks

6.  Maintaining Data in the Corporate Record

Change Date
November 2, 2020

VII.i.1.B.6.a.  Maintaining Data in the Corporate Record
Upon receipt of a completed VA Form 21P-0537, compare the information on the form against data in the corporate record.  This specifically includes
  • dates of birth
  • Social Security numbers (SSNs), and
  • the spelling of names.
If discrepancies exist or data is missing from the corporate record, use information from the form to update the corporate record.
References:  For more information on

7.  Form With Claims Folders at Other Locations

Change Date
April 19, 2021

VII.i.1.B.7.a.  Forms With Claims Folders at Other Locations
Upon receipt of a VA Form 21-0538 or VA Form 21P-0537, the corresponding claims folder for which is located at another RO, route the form for processing to the RO with jurisdiction over the claims folder only if the RO that received the form cannot process it without reviewing the claims folder.
Note:  EP credit goes only to the RO that completes
  • final review of the form, and
  • any necessary award action.