M21-1 · Section VI.iv.1.A

Effects of an Individual’s Incarceration on Department of Veterans Affairs (VA) Benefits

M21-1 section VI.iv.1.A. Official source text with a separately reviewed Claim Raven explanation when available.

Claim Raven wrote the explanation that follows. The original VA text appears below it, unchanged.

What this means

m21-1:VI.iv.1.A explains effects of an individual’s incarceration on department of veterans affairs (va) benefits. In plain terms, the official guidance says for VA purposes, the term incarceration It also addresses when a beneficiary (other than an apportionee) entitled to DIC is incarcerated for more than 60 days following conviction of a felony, 38 CFR 3.665(d)(3) requires VA to reduce the beneficiary’s monthly award to an amount equal to one half of the amount payable for an SC disability evaluated as 10-percent disabling.

How this may help with a claim

Use m21-1:VI.iv.1.A when organizing evidence or checking VA's handling of effects of an individual’s incarceration on department of veterans affairs (va) benefits. Compare your application, supporting records, and notice with this source-specific point: For VA purposes, the term incarceration When a beneficiary (other than an apportionee) entitled to DIC is incarcerated for more than 60 days following conviction of a felony, 38 CFR 3.665(d)(3) requires VA to reduce the beneficiary’s monthly award to an amount equal to one half of the amount payable for an SC disability evaluated as 10-percent disabling. Save proof of submission and identify the exact condition, exception, or missing development step before requesting correction or choosing a review option.

What to review in your file

  • Check the file against this official condition: This is the date used by VA to determine whether to reduce or terminate VA benefits during incarceration.
  • Confirm that the record or notice addresses this source point: 38 CFR 3.665 requires the reduction of a beneficiary’s disability compensation or Dependency and Indemnity Compensation (DIC) when the beneficiary is incarcerated more than 60 days following conviction of a felony.
  • Document how this stated step or exception applies: 38 CFR 3.666 requires the discontinuance of a beneficiary’s pension when the beneficiary is incarcerated more than 60 days following conviction of a felony or misdemeanor.

Important limits

m21-1:VI.iv.1.A explains VA guidance for effects of an individual’s incarceration on department of veterans affairs (va) benefits; it does not guarantee an award or replace the statutes, regulations, binding decisions, and review instructions that control an individual claim. Conditions and exceptions still matter, including this source point: For VA purposes, the term incarceration Do not include in the calculation the number of days the incarcerated individual spent in confinement while awaiting trial, or for examination or treatment, even if the individual is credited for those days as “time served” following conviction.

Search terms when useful

Phrases that may help when searching your claim file or this library.

  • Effects of an Individual’s Incarceration on Department of Veterans Affairs (VA) Benefits
  • m21-1:VI.iv.1.A
  • Effects Individual Incarceration
  • Department Benefits
  • About Incarceration Beneficiaries Dependents
  • definition
  • incarceration
  • conviction date

Original VA guidance

The official VA text of this section

Overview

In This Section

This section contains the following topics:

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TopicTopic Name
1General Information About the Incarceration of Beneficiaries and Dependents
2Benefit-Specific Effects of a Beneficiary’s Incarceration
3Handling Notice of Incarceration
4Miscellaneous Information That Is Pertinent to the Handling of Notice of Incarceration
5Handling Notice That Incarceration Has Ended

1. General Information About the Incarceration of Beneficiaries and Dependents

Introduction

This topic contains general information about the incarceration of beneficiaries and dependents, including

  • definition of
  • incarceration, and
  • conviction date
  • regulatory requirements for reducing or discontinuing benefits during incarceration
  • effect of a dependent’s incarceration on a beneficiary’s award
  • periods during which VA may not reduce or discontinue benefits
  • data-matching programs that identify incarcerated beneficiaries and dependents, and
  • beneficiaries and dependents that are fugitive felons.

Change Date

March 27, 2025

VI.iv.1.A.1.a. Definition: Incarceration

For Department of Veterans Affairs (VA) purposes, the term incarceration

  • refers to the confinement of an individual in a penal institution, even though the individual may be allowed outside the institution temporarily on furlough or for medical treatment, and
  • includes confinement at any of the following, as long as confinement is pursuant to a criminal sentence:
  • medical facility or mental institution, or
  • other locations, such as work camps, forestry camps, or boot camps.

Reference: For more information on treating confinement in a mental institution as incarceration for VA purposes, see Philbrook v. Wilkie.

VI.iv.1.A.1.b. Definition: Conviction Date

The conviction date is the date a court formally finds a defendant guilty of an offense.

Important:

  • This is the date used by VA to determine whether to reduce or terminate VA benefits during incarceration.
  • Do not confuse this date with the sentencing date or the confinement date.

VI.iv.1.A.1.c. Regulatory Requirements for Reducing or Discontinuing Benefits During Incarceration

38 CFR 3.665 requires the reduction of a beneficiary’s disability compensation or Dependency and Indemnity Compensation (DIC) when the beneficiary is incarcerated more than 60 days following conviction of a felony.

38 CFR 3.666 requires the discontinuance of a beneficiary’s pension when the beneficiary is incarcerated more than 60 days following conviction of a felony or misdemeanor.

Notes:

  • A beneficiary, for the purpose of the two preceding paragraphs, is limited to
  • Veterans that are entitled to disability compensation or pension
  • surviving spouses, children, and parents that are entitled to DIC, and
  • surviving spouses and children that are entitled to Survivors Pension.
  • The requirement to reduce or discontinue benefits applies to beneficiaries incarcerated in a Federal, State, or local penal institution or correctional facility, including privately owned correctional facilities that are operated under contract with a State.
  • The proper effective date for reducing or discontinuing benefits is the 61 st day of incarceration.

References: For more information on

  • privately owned correctional facilities, see VAOPGCPREC 5-2006
  • the effect a beneficiary’s incarceration has on an award of
  • disability compensation, see M21-1, Part VI, Subpart iv, 1.A.2.a - c
  • DIC, see M21-1, Part VI, Subpart iv, 1.A.2.e, and
  • pension, see M21-1, Part VI, Subpart iv, 1.A.2.f
  • incarcerated apportionees and custodians, see M21-1, Part VI, Subpart iv, 1.B.6, and
  • processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a.

VI.iv.1.A.1.d. Effect of a Dependent’s Incarceration on a Beneficiary’s Award

38 CFR 3.666 requires the removal of an incarcerated dependent from a beneficiary’s award if the beneficiary receives pension. There is no such requirement, however, if the beneficiary is a

  • Veteran receiving disability compensation, or
  • surviving spouse receiving DIC.

References: For more information on

  • removing an incarcerated dependent from a pension award, see M21-1, Part VI, Subpart iv, 1.B.1
  • the effect of an apportionee’s incarceration on the apportionment, see M21-1, Part VI, Subpart iv, 1.B.6, and
  • dependents that are fugitive felons, see M21-1, Part VI, Subpart iv, 1.A.1.g.

VI.iv.1.A.1.e. Periods During Which VA May Not Reduce or Discontinue Benefits

Do not reduce or discontinue benefits for any period during which the individual in question is

  • participating in a work-release program
  • under community control (per VAOPGCPREC 59-1991)
  • incarcerated in a foreign penal institution, or
  • residing in a
  • halfway house
  • residential re-entry center, or
  • civil commitment center.

Notes: “Residential re-entry center” is a term used by the Bureau of Prisons (BOP) in lieu of the traditional term “halfway house.”

Reference: For more information on beneficiaries or dependents that are transferred from a foreign penal institution to a Federal, State, or local penal institution to serve the remainder of their sentence for a foreign conviction, see M21-1, Part VI, Subpart iv, 1.A.4.b.

VI.iv.1.A.1.f. Data-Matching Programs That Identify Incarcerated Beneficiaries and Dependents

Through agreements with BOP and the Social Security Administration (SSA), VA periodically compares data in its records with data in BOP and SSA records to identify VA beneficiaries and dependents that have been incarcerated in Federal or State penal institutions.

Note: VA also receives notice of the incarceration of beneficiaries and dependents through unofficial sources.

Reference: For more information on the data-matching programs discussed in this block, see M21-1, Part XIV, 7.1.

VI.iv.1.A.1.g. Beneficiaries and Dependents That Are Fugitive Felons

Disability compensation, DIC, and pension are not payable

  • to a beneficiary that is a fugitive felon, or
  • for a dependent that is a fugitive felon.

A fugitive felon is anyone that is

  • fleeing to avoid prosecution, being taken into custody, or confinement, after being convicted for, or attempting to commit, an offense that is a felony, or
  • violating a condition of probation or parole imposed for commission of a felony.

References: For more information on

  • the requirement to suspend benefits of fugitive felons, see
  • 38 CFR 3.665(n) (for compensation and DIC), and
  • 38 CFR 3.666(e) (for pension)
  • identifying fugitive felons, see M21-1, Part XIV, 8.1, and
  • adjusting awards based on fugitive felon status, see M21-1, Part XIV, 8.2.

2. Benefit-Specific Effects of a Beneficiary’s Incarceration

Introduction

This topic contains information regarding the benefit-specific effects of a beneficiary’s incarceration, including

  • effect of incarceration on
  • payments of disability compensation, and
  • ratings of total disability due to individual unemployability (TDIU)
  • increased disability evaluations during incarceration
  • effect of incarceration on
  • payment of the clothing allowance
  • payments of DIC, and
  • pension awards, and
  • determining whether VA is paying education benefits to an incarcerated beneficiary.

Change Date

April 23, 2026

VI.iv.1.A.2.a. Effect of Incarceration on Payments of Disability Compensation

Use the table below to determine the amount to which VA must reduce a Veteran’s disability compensation when the Veteran is incarcerated for more than 60 days following conviction for a felony.

Important: Reduction is necessary only if the Veteran

  • committed the felony after October 7, 1980
  • was incarcerated on October 1, 1980 (regardless of the date the Veteran committed the felony), and VA granted entitlement to disability compensation with an effective date that is after September 30, 1980, or
  • was incarcerated on or before October 7, 1980, for a felony committed prior to that date, and the Veteran remained incarcerated for the same conviction through December 27, 2001. (Reductions under this last condition take effect beginning with the payment of disability compensation VA makes for the month of April 2002.)

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If the Veteran’s disability evaluation for all service-connected (SC) disabilities is...Then...
0 percent, but the Veteran is entitled to special monthly compensation (SMC) under 38 U.S.C. 1114(k), or a protected rate under 38 CFR 3.959 (statutory SMC Q)38 CFR 3.665(d)(2) requires VA to reduce the Veteran’s monthly award to one half of the amount payable for an SC disability evaluated as 10-percent disabling.
10 percent
20 percent or higher38 CFR 3.665(d)(1) requires VA to reduce the Veteran’s monthly award to the amount payable for an SC disability evaluated as 10-percent disabling.

Note: Pay the Veteran the full amount of any benefit due for periods prior to October 1, 1980.

References: For more information on

  • processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a, and
  • apportioning an incarcerated Veteran’s disability compensation to dependent(s), see M21-1, Part VI, Subpart iv, 2.B.2.

VI.iv.1.A.2.b. Effect of Incarceration on Ratings of TDIU

38 CFR 3.341(b) prohibits the assignment of an initial or reinstated rating of total disability due to individual unemployability (TDIU) during a period of incarceration. There is no requirement, however, to discontinue a rating of TDIU solely because a Veteran was incarcerated and, thereby, removed from the work-possible environment.

Important: Although a rating of TDIU may remain in effect during a Veteran’s incarceration, the Veteran’s disability compensation is still subject to the reduction described in M21-1, Part VI, Subpart iv, 1.A.2.a.

References: For more information on

  • ratings of TDIU, see M21-1, Part VIII, Subpart iv, 3.C
  • treating confinement in a mental institution as incarceration for VA purposes, see Philbrook v. Wilkie, and
  • the effect of removal from the work-possible environment on a rating of TDIU, see VAOPGCPREC 13-1997.

VI.iv.1.A.2.c. Increased Disability Evaluations During Incarceration

Use the table below if VA increases a Veteran’s overall disability evaluation for SC disabilities from an effective date that falls within a period during which VA reduced the Veteran’s disability compensation due to incarceration.

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If...Then...
VA increased the overall disability evaluation from a level of 10 percent to a level of 20 percent or higherincrease the Veteran’s benefits to the rate payable for an SC disability evaluated as 10-percent disabling during the period of incarceration.
the Veteran’s overall disability evaluation was 20 percent or higher before VA granted entitlement to an increased evaluation.process the corresponding rating decision but do not increase the Veteran’s benefits to reflect the increased evaluation until incarceration ends.

Important: As stated in M21-1, Part VI, Subpart iv, 1.A.2.b, 38 CFR 3.341(b) prohibits the assignment of an initial or reinstated rating of TDIU during a period of incarceration.

Reference: For more information on handling increased disability evaluations during incarceration, see 38 CFR 3.665(j).

VI.iv.1.A.2.d. Effect of Incarceration on Payment of the Clothing Allowance

38 CFR 3.810(d) requires a reduction in VA’s clothing allowance if

  • a Veteran entitled to this benefit is incarcerated for more than 60 days, and
  • the Veteran receives clothing at no cost from the penal institution.

Reference: For more information on VA’s clothing allowance, see M21-1, Part XIII, Subpart i, 8.A.

VI.iv.1.A.2.e. Effect of Incarceration on Payments of DIC

When a beneficiary (other than an apportionee) entitled to DIC is incarcerated for more than 60 days following conviction of a felony, 38 CFR 3.665(d)(3) requires VA to reduce the beneficiary’s monthly award to an amount equal to one half of the amount payable for an SC disability evaluated as 10-percent disabling.

Important:

  • Reduction of DIC due to incarceration is necessary only if the beneficiary
  • committed the felony after October 7, 1980, or
  • was incarcerated on October 1, 1980 (regardless of the date the beneficiary committed the felony), and VA granted entitlement to DIC with an effective date that is after September 30, 1980.
  • Pay beneficiaries the full amount of any benefit due them for periods prior to October 1, 1980.
  • If a parent’s DIC award is less than half of the amount payable for an SC disability evaluated as 10-percent disabling, do not adjust the award.

References: For more information on

  • incarcerated apportionees, see M21-1, Part VI, Subpart iv, 1.B.6
  • processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a, and
  • the apportionment of an incarcerated surviving spouse’s or child’s DIC, see
  • M21-1, Part VI, Subpart iv, 1.B.3 and 4, and
  • 38 CFR 3.665(e)(2).

VI.iv.1.A.2.f. Effect of Incarceration on Pension Awards

When a beneficiary entitled to pension is incarcerated for more than 60 days following conviction of a felony or misdemeanor, 38 CFR 3.666 requires VA to discontinue payments of pension.

Before discontinuing Veterans Pension due to incarceration, review the claims folder to determine whether the Veteran is also entitled to disability compensation. If entitlement to both benefits exists, follow the instructions in M21-1, Part VI, Subpart iv, 2.B.3.

References: For more information on

  • the effect of an apportionee’s incarceration on an apportionment, see M21-1, Part VI, Subpart iv, 1.B.6
  • processing notices of incarceration, see M21-1, Part VI, Subpart iv, 1.A.3.a, and
  • the apportionment of an incarcerated
  • Veteran’s pension to dependents, see
  • M21-1, Part VI, Subpart iv, 2.B.1, and
  • 38 CFR 3.666(a)
  • surviving spouse’s pension to eligible children, see
  • M21-1, Part VI, Subpart iv, 1.B.2, and
  • 38 CFR 3.666(b)(1), and
  • child’s pension to a surviving spouse or other eligible children, see 38 CFR 3.666(b)(2).

VI.iv.1.A.2.g. Determining Whether VA Is Paying Education Benefits to an Incarcerated Beneficiary

Review the FINANCIAL INFORMATION screen in the Veterans Benefits Management System (VBMS) to determine whether VA is paying education benefits to an incarcerated beneficiary. If it is, e-mail a copy of the official notice of incarceration to the regional processing office (RPO) of jurisdiction, as an adjustment of the education benefits might be necessary.

References: For more information on

  • what constitutes official notice, see M21-1, Part VI, Subpart iv, 1.A.3.c
  • determining the RPO of jurisdiction, see M22-4, Part 3, 1.02, and
  • the e-mail address of individual RPOs, see M21-1, Part XIII, Subpart i, 1.B.3.b.

3. Handling Notice of Incarceration

Introduction

This topic contains instructions for handling notice of incarceration, including

  • action to take upon receipt of notice of incarceration
  • identifying official
  • sources of information regarding an individual’s incarceration, and
  • notice of incarceration
  • verifying the details of incarceration
  • available means for requesting/obtaining information from official sources
  • re-incarceration for the same conviction following a period of release, and
  • handling notice that charges against an incarcerated
  • beneficiary were dismissed or overturned or the type of conviction was changed, and
  • former apportionee were dismissed or overturned or the type of conviction was changed.

Change Date

April 23, 2026

VI.iv.1.A.3.a. Action to Take Upon Receipt of Notice of Incarceration

Follow the steps in the table below upon receipt of notice of the incarceration of a

  • beneficiary, to include an apportionee, or
  • dependent on a beneficiary’s award.

Exceptions:

  • As indicated in M21-1, Part VI, Subpart iv, 1.A.1.d, there is no requirement to remove an incarcerated dependent from the award of a
  • Veteran in receipt of disability compensation, or
  • surviving spouse in receipt of DIC.
  • Instead of following the procedure described in the table below, follow the instructions in
  • M21-1, Part VI, Subpart iv, 1.B.6, if the incarcerated individual is
  • an apportionee, and
  • the custodian of one or more other apportionees,or
  • M21-1, Part VI, Subpart iv, 1.A.4.d, if there is evidence that the claimant is incarcerated but not yet in receipt of monetary benefits.

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StepAction
1Establish end product (EP) 290, using the claim label Bureau of Prisons Match or Social Security Prison Match (whichever applies) if notice of incarceration was obtained via the data-matching programs discussed in M21-1, Part XIV, 7, or Incarceration Adjustment in all other instances. Use the table below to determine the appropriate date of claim (DOC).
2If the beneficiary is in receipt of disability compensation, add Potential Under/Overpayment as a special issue.
3Did VA receive the notice of incarceration from the beneficiary? If yes, go to Step 6. If no, go to the next step.
4Is the notice VA received “official,” as discussed in M21-1, Part VI, Subpart iv, 1.A.3.c? If yes, go to the next step. If no, go to Step 7.
5Has VA obtained the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b? If yes, go to Step 16. If no, go to the next step. Notes: Although the worksheets referenced in M21-1, Part XIV, 7.1.b, constitute official notice of incarceration, they do not provide claims processors all the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d. A VA and Federal Bureau of Prisons Computer Match worksheet constitutes confirmation from an official source that the named prisoner was convicted of a felony or misdemeanor, and imprisoned in a Federal penal institution for more than 60 days. If the type of offense is unknown/missing from a VA and Federal Bureau of Prisons Computer Match worksheet, confirmation of the type of conviction must be obtained from an official source, unless the inmate locator on the BOP website shows an actual or projected release date one year or more from the computation date, or the benefit that is subject to adjustment (discontinuation) is pension. The date listed in the COMPUTATION DATE OF CURRENT SENTENCE field of the VA and Federal Bureau of Prisons Computer Match worksheet does not reliably represent the date of incarceration.
6Request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source. If VA requests the information (by letter, for example), go to Step 13. If VA obtains the information without issuing a request (through telephone contact or by accessing a correctional facility’s website, for example), go to Step 16. Note: Allow entities from which VA requests information concerning an individual’s incarceration 30 days to respond. Reference: For a discussion of the available means for requesting/obtaining information from an official source, see M21-1, Part VI, Subpart iv, 1.A.3.e.
7Attempt to corroborate the unofficial notice and request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d through official sources. Note: Allow entities from which VA requests corroboration of and information concerning an individual’s incarceration 30 days to respond. Reference: For a discussion of the available means for requesting/obtaining information/corroboration from official sources, see M21-1, Part VI, Subpart iv, 1.A.3.e.
8Use the table below to determine the actions to take based on how VA obtained the information.
9Did the entity from which VA requested information/corroboration respond within 30 days? If yes, go to Step 12. If no, go to the next step.
10Send a follow-up request and allow 30 days for a response.
11Did the entity to which VA sent a follow-up request respond within 30 days? If yes, go to the next step. If no, clear the EP 290, and take no further action.
12Use the table below to determine the actions to take based on whether the notice of incarceration was corroborated.
13Did the entity from which VA requested the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d respond within 30 days? If yes, go to Step 16. If no, go to the next step. Note: If the VA Form 21-4193, Notice to Department of Veterans Affairs of Veteran or Beneficiary Incarcerated in Penal Institution, or equivalent, requested from the entity does not contain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d, claims processors are required to attempt to contact the entity by telephone. When telephone contact is unsuccessful, send a follow-up letter requesting the specific missing information and allow 30 days for a response.
14Send a follow-up request for the information and allow 30 days for a response.
15Did the entity to which VA sent a follow-up request respond within 30 days? If yes, go to the next step. If no, clear the EP 290 establish EP 600, using the current date as the DOC and the Bur [eau] of Prisons or SSA Prison Match claim label, if applicable add Potential Under/Overpayment as a special issue, if the beneficiary is in receipt of disability compensation, and go to Step 17.
16Use the table below to determine the actions to take based on the information received concerning the incarceration.
17Prepare a notice of proposed adverse action and send the notice to the beneficiary. A screenshot of the Veterans Service Representative Assistant’s 61-Day Rule Incarceration Calculator showing the proposed reduction date must be uploaded to the eFolder each time a notice of proposed adverse action is sent. If the incarcerated beneficiary is an apportionee, disregard the remaining steps in this table, and follow the instructions in M21-1, Part VI, Subpart iv, 1.B.6.a. Important: If the address of family members that are eligible for an apportionment of an incarcerated Veteran’s, surviving spouse’s, or surviving child’s (DIC only) benefits is known, send VA Form 21-0788, Information Regarding Apportionment of Beneficiary’s Award, to them at the same time the notice of proposed adverse action is sent to the beneficiary. A beneficiary is entitled to due process and the notice described in this cell each time incarceration (following conviction of a felony or misdemeanor, which ever applies) in excess of 60 days occurs. This includes re-incarceration (after VA takes the actions described in M21-1, Part VI, Subpart iv, 1.A.5) because of a parole violation, or dismissal from a halfway house or work-release program. Send notice of proposed adverse action to a beneficiary at the current address of record, even if the incarcerated individual is a dependent (pension cases only). If the incarcerated beneficiary is an apportionee to whom VA is apportioning a Veteran’s disability compensation or a surviving spouse’s DIC, there is no need to send notice of proposed adverse action to the Veteran or surviving spouse. Do not send notice of proposed adverse action to the address of a prison unless that address happens to be a beneficiary’s current address of record. If the register or identification number a prison uses to identify an incarcerated beneficiary is known, include it after the beneficiary's name when sending correspondence to the beneficiary at the prison address. (The worksheets referenced in M21-1, Part XIV, 7.1.b, provide these numbers.) References: For more information on due process and the issuing of notices of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A the amount to which VA must reduce disability compensation and DIC when a Veteran or surviving spouse is incarcerated, see M21-1, Part VI, Subpart iv, 1.A.2.a and e, respectively apportioning an incarcerated Veteran’s disability compensation to dependent(s), see M21-1, Part VI, Subpart iv, 2.B.2 apportioning an incarcerated beneficiary’s DIC to other family members, see M21-1, Part VI, Subpart iv, 1.B.3 and 4, and apportioning an incarcerated Veteran’s pension to dependents, see M21-1, Part VI, Subpart iv, 2.B.1 surviving spouse’s Survivors Pension to other family members, see M21-1, Part VI, Subpart iv, 1.B.2, and child’s pension to other family members, see 38 CFR 3.666(b)(2).
18Did the beneficiary respond to the notice of proposed adverse action within 65 days of the date VA sent the notice? If yes, go to the next step. If no, go to Step 20. Note: Follow the instructions in M21-1, Part X, Subpart ii, 3.B, if a beneficiary requests a hearing in response to the notice of proposed adverse action.
19Did the beneficiary submit evidence showing an adjustment of the award due to incarceration is not in order? If yes, clear the EP 600 notify the beneficiary that VA will not reduce or discontinue (whichever applies) benefits, and disregard the remaining steps in this table. If no, go to the next step.
20Reduce or discontinue benefits under the EP 600 as proposed in the notice of proposed adverse action. Note: To execute the reduction or discontinuance of benefits in the claims-processing system based on a beneficiary’s incarceration, follow the instructions in the VBMS - Awards (VBMS-A) User Guide.
21Notify the beneficiary of the action taken. Reference: For more information on issuing decision notices, see M21-1, Part VI, Subpart i, 1.B.

Notes:

  • If the beneficiary is a Veteran,
  • add the Incarceration corporate flash while the Veteran is confined to a penal institution, and
  • remove the Incarceration corporate flash once the Veteran is released.
  • The Incarceration flash is automatically affixed when a match is generated through the batch process described in M21‑1, Part XIV, 7. Ensure that the corporate flash is assigned when appropriate.

VI.iv.1.A.3.b. Identifying Official Sources of Information Regarding an Individual’s Incarceration

For the purpose of this section, an official source of information regarding an individual’s incarceration includes

  • Federal, State, and local government authorities, such as
  • law enforcement officials
  • officials at correctional facilities
  • prosecutors, and
  • parole officers
  • BOP’s website (http://www.bop.gov/), and
  • official websites of individual correctional facilities.

Note: The Veterans Benefits Administration previously considered Vine (http://www.vinelink.com/), a privately operated, online, inmate locator service, an official source. While claims processors may still utilize this resource, it is considered an unofficial source of information regarding an individual’s incarceration, and any information received from this website must be verified through an official source.

VI.iv.1.A.3.c. Identifying Official Notice of Incarceration

Each of the following constitute official notice of incarceration:

  • an 800 series work item that was system-generated as a result of the data-matching programs described in M21-1, Part XIV, 7
  • a completed VA Form 21-4193 from a correctional facility, and
  • evidence of incarceration that originated from an official source, including statements affirming incarceration from
  • prison or law enforcement authorities
  • prosecutors, or
  • parole officers.

Important: Statements affirming incarceration from a private attorney or family members do not constitute official notice.

VI.iv.1.A.3.d. Verifying the Details of Incarceration

Prior to issuing notice of a proposal to reduce or discontinue benefits based on incarceration, obtain the following information from an official source:

  • type of conviction (such as felony, misdemeanor, or infraction)
  • date (month, day, year) of conviction
  • date (month, day, year) of incarceration following conviction, and
  • an indication that incarceration lasted for more than 60 days following the date of conviction.

Note: M21-1, Part VI, Subpart iv, 1.A.3.e describes the available means for obtaining the information referenced in this block.

References: For a definition of

  • official source, see M21-1, Part VI, Subpart iv, 1.A.3.b, and
  • conviction date, see M21-1, Part VI, Subpart iv, 1.A.1.b.

VI.iv.1.A.3.e. Available Means for Requesting/ Obtaining Information From Official Sources

The available means for requesting/obtaining information from official sources consist of the following:

  • contacting (by telephone or e-mail) the correctional facility where the individual is/was incarcerated
  • accessing BOP’s website (http://www.bop.gov/), and/or
  • asking the correctional facility where the individual is/was incarcerated to complete and return VA Form 21-4193.

Note: Many correctional facilities have websites that

  • display telephone numbers and/or e-mail addresses of facility officials, and/or
  • allow visitors to access inmate locator data.

Use the table below to determine the appropriate documentation method for information obtained from an official source regarding a beneficiary’s or dependent’s incarceration.

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If information is obtained …Then...
by telephonedocument the call on VA Form 27-0820e, Report of Incarceration, and save a copy of the form in the beneficiary’s claims folder.
by e-mail or faxsave a copy of the e-mail or fax in the beneficiary’s claims folder.
from a websitemake a screen print of the relevant webpage, and associate a copy of the screen print with the beneficiary’s claims folder.

Reference: For more information on uploading documents to eFolders, see

  • M21-1, Part II, Subpart ii, 2.A.1.b, and
  • the VBMS Core User Guide.

VI.iv.1.A.3.f. Re-Incarceration for the Same Conviction Following a Period of Release

The instructions contained in M21-1, Part VI, Subpart iv, 1.A.3.a apply equally to instances of re-incarceration for the same conviction following a period of release.

Re-incarceration may occur, for example, following a parole violation or dismissal from a halfway house or work-release program.

Example:

  • VA begins paying a Veteran disability compensation at the full rate of entitlement after release from prison and placement on parole.
  • Three months later, the Veteran violates parole and is re-incarcerated.

Results:

  • VA must complete each of the steps in the procedure outlined in M21-1, Part VI, Subpart iv, 1.A.3.a, to include the issuing of a new notice of proposed adverse action.
  • VA may not reduce the Veteran’s disability compensation any earlier than the 61 st day of re-incarceration.

Reference: See VAOPGCPREC 2-1996 for a discussion regarding

  • the payment of benefits while a beneficiary is on parole, and
  • re-incarceration of a beneficiary.

VI.iv.1.A.3.g. Handling Notice That Charges Against an Incarcerated Beneficiary Were Dismissed or Overturned or the Type of Conviction Was Changed

Follow the steps in the table below after receiving notice of the

  • charges that resulted in a beneficiary’s incarceration have been dismissed or were overturned, or
  • type of conviction (felony) that resulted in incarceration has changed such that a reduction or discontinuance of benefits is no longer required under 38 CFR 3.665.

Exceptions:

  • If the beneficiary is a former apportionee whose apportionment VA discontinued based on the former apportionee’s incarceration, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.3.h, instead of the steps in the table below.
  • There is no regulatory authority (such as that which exists in 38 CFR 3.665(m)) to take the actions described in this block if the benefit at issue is pension.

Scroll sideways to see the full table.

StepAction
1Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: Incarceration Adjustment (disability compensation), or PMC-Incarceration Adjustment (DIC). Reference: For more information on EP codes and controls, see M21-4, Appendix B.
2Did VA receive the notice directly from one of the official sources referenced in M21-1, Part VI, Subpart iv, 1.A.3.b? If yes, go to Step 8. If no, go to the next step. Important: Go to the next step if the beneficiary submitted the notice, even if the notice was accompanied by what appears to be evidence from an official source.
3Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation is received immediately (on the same day as an attempt(s) is made), go to Step 8, or cannot be immediately obtained, go to the next step.
4Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice.
5Concurrent with the action described in the previous step, prepare and send to the beneficiary a letter that notifies the beneficiary of the requirement that VA obtain confirmation from an official source that charges were dismissed or overturned, or the type of conviction was changed, and encourages the beneficiary to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.
6Was confirmation received from an official source within 30 days? If yes, go to Step 8. If no, go to the next step.
7Notify the beneficiary that VA cannot restore benefits without confirmation from an official source that charges were dismissed or overturned, or the type of conviction was changed. Clear the pending EP 290. Disregard the remaining steps in this table.
8Remove the Incarceration corporate flash (if present).
9Restore benefits that were reduced due to incarceration and to which the beneficiary is otherwise entitled. Use the table below to determine the correct effective date. Important: Do not restore to a primary beneficiary benefits that VA apportioned to dependents as a result of the primary beneficiary’s incarceration. Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment. References: For more information on apportioning an incarcerated Veteran’s disability compensation to dependent(s), see M21-1, Part VI, Subpart iv, 2.B.2, and surviving spouse’s DIC to dependent(s), see M21-1, Part VI, Subpart iv, 1.B.3, and the difference between the effective date of entitlement and the effective date of payment, see M21-1, Part VI, Subpart i, 1.A.2.b.

VI.iv.1.A.3.h. Handling Notice That Charges Against an Incarcerated Former Apportionee Were Dismissed or Overturned or the Type of Conviction Was Changed

After discontinuing an apportionment because the apportionee was incarcerated, follow the steps in the table below if VA receives notice the

  • charges that resulted in incarceration have been dismissed or were overturned, or
  • type of conviction (felony) that resulted in incarceration has changed such that discontinuation of the apportionment may no longer be necessary under 38 CFR 3.665.

Exceptions: There is no regulatory authority (such as that which exist in 38 CFR 3.665(m) to take the actions described in this block if the apportioned benefit is pension.

Scroll sideways to see the full table.

StepAction
1Did the former apportionee provide the notice? If yes, go to the next step. If no, disregard the remaining steps in this table. No further action is required.
2Did the former apportionee submit VA Form 21-0788 with the notice? If yes, go to the next step. If no, treat the notice as a request for an application, and disregard the remaining steps in this table. Reference: For more information on treating correspondence from a potential claimant as a request for an application, see M21-1, Part II, Subpart iii, 2.G.1.
3Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: Incarceration Adjustment (disability compensation), or PMC-Incarceration Adjustment (DIC). Reference: For more information on EP codes and controls, see M21-4, Appendix B.
4Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation is received immediately (on the same day as an attempt(s) is made), go to the next step, or cannot be immediately obtained, go to Step 6.
5Change the EP 290 to EP 130. Decide the new claim for an apportionment based on the regulations in effect at the time the claim was received. Disregard the remaining steps in this table. Important: If entitlement to an apportionment exists, the proper effective date is the date VA received the VA Form 21-0788 referenced in Step 2. Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment. References: For more information on processing claims for an apportionment, see M21-1, Part VI, Subpart iv, 2.A, and the difference between the effective date of entitlement and the effective date of payment, see M21-1, Part VI, Subpart i, 1.A.2.b.
6Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice.
7Concurrent with the action described in the previous step, prepare and send to the former apportionee a letter that notifies the former apportionee of the requirement that VA obtain confirmation from an official source that charges were dismissed or overturned, or the type of conviction was changed, and encourages the former apportionee to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.
8Was confirmation received from an official source within 30 days? If yes, follow the instructions in Step 5. If no, go to the next step.
9Notify the former apportionee that VA cannot resume the apportionment without confirmation from an official source that charges were dismissed or overturned, or the type of conviction was changed. Clear the pending EP 290.

4. Miscellaneous Information That Is Pertinent to the Handling of Notice of Incarceration

Introduction

This topic contains miscellaneous information that is pertinent to the handling of notice of incarceration, including

  • calculating the 61 st day of incarceration
  • incarceration in and transfer from a foreign penal institution
  • recoupment of separation benefits during incarceration, and
  • claimants suspected to be incarcerated but not yet receiving benefits.

Change Date

March 9, 2026

VI.iv.1.A.4.a. Calculating the 61 st Day of Incarceration

When calculating the 61 st day of incarceration (or re-incarceration, as discussed in M21-1, Part VI, Subpart iv, 1.A.3.f), start with the first full day of imprisonment following conviction.

Do not include in the calculation the number of days the incarcerated individual spent in confinement while awaiting trial, or for examination or treatment, even if the individual is credited for those days as “time served” following conviction.

Reference: For a discussion of the issue of time served prior to conviction, see VAOPGCPREC 3-2005.

VI.iv.1.A.4.b. Incarceration in and Transfer From a Foreign Penal Institution

No award adjustment is necessary when a beneficiary (including an apportionee) or a dependent is incarcerated in a foreign penal institution. Claims processors must, however, determine whether an award adjustment is necessary under the provisions of M21-1, Part VI, Subpart iv, 1.A.1.a - e if the incarcerated individual

  • is later transferred to a U.S. penal institution to serve the remainder of the sentence, and
  • was incarcerated in the foreign penal institution for conviction of an offense that is equivalent to a
  • felony (if the beneficiary receives disability compensation or DIC), or
  • felony or misdemeanor (if the beneficiary receives pension).

Important: The effective date of the reduction or discontinuance is the 61 st day of incarceration in the U.S. penal institution.

VI.iv.1.A.4.c. Recoupment of Separation Benefits During Incarceration

Use the table below to determine the actions to take when

  • VA is withholding all or part of a Veteran’s disability compensation to recoup separation benefits (including disability severance pay), and
  • the Veteran is incarcerated following conviction for a felony.

Exception: If VA is withholding disability compensation to recoup voluntary separation pay from an Air Force, Navy, or Marine Corps Veteran, follow the instructions in M21-1, Part VI, Subpart ii, 2.

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If VA is withholding …Then, effective the 61 st day of incarceration...
all of the Veteran’s disability compensation to recoup separation benefitslimit the amount of the withholding to the rate specified in M21-1, Part VI, Subpart iv, 1.A.2.a until incarceration ends. (The Veteran, in this case, receives no disability compensation while incarcerated.) Note: If entitlement exists, VA may apportion to the Veteran’s dependent(s) the remaining disability compensation that VA does not withhold during incarceration. When incarceration ends, the apportionment ends, as well.
some but not all of the Veteran’s disability compensation to recoup separation benefitslimit the amount of disability compensation that is payable to the Veteran during the period of incarceration to the rate specified in M21-1, Part VI, Subpart iv, 1.A.2.a, and suspend the withholding for recoupment of separation benefits until incarceration ends. Note: If entitlement exists, VA may apportion the remaining disability compensation – to include the amount VA was withholding to recoup separation benefits prior to incarceration – to the Veteran’s dependent(s) until incarceration ends.

References: For more information on

  • recouping separation benefits, see M21-1, Part VI, Subpart ii, 2, and
  • the actions to take after incarceration ends, see M21-1, Part VI, Subpart iv, 1.A.5.

VI.iv.1.A.4.d. Claimants Suspected To Be Incarcerated but Not Yet Receiving Benefits

Development to verify details of incarceration is required prior to paying benefits when a claim is submitted by an individual who is

  • evidenced to be incarcerated, but
  • not yet in receipt of VA benefit payments.

Note: Evidence of incarceration includes, but is not limited to,

  • report by the claimant
  • missed examination notice due to coordination or transport issues with the Veterans Health Administration or Veterans Benefits Administration contract examination providers
  • BOP match, or
  • notice from the detaining facility.

Follow the steps in the table below if confirmation of incarceration is needed for a claimant who is not yet in receipt of benefits.

Scroll sideways to see the full table.

StepAction
1Did VA receive notice of incarceration from the claimant? If yes, go to Step 4. If no, go to the next step.
2Is the notice VA received “official,” as discussed in M21-1, Part VI, Subpart iv, 1.A.3.c? If yes, go to the next step. If no, go to Step 4.
3Has VA obtained the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b? If yes, go to Step 8. If no, go to the next step.
4Attempt to corroborate the unofficial notice of incarceration and request/obtain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d from an official source identified in M21-1, Part VI, Subpart iv, 1.A.3.b. If VA requests the information (by letter, for example), go to the next step. If VA obtains the information without issuing a request (through telephone contact or by accessing a correctional facility’s website, for example), go to Step 8. Notes: Do not establish a separate EP under which to complete the development actions. Allow entities from which VA requests information concerning an individual’s incarceration 30 days to respond. Reference: For a discussion of the available means for requesting/obtaining information from an official source, see M21-1, Part VI, Subpart iv, 1.A.3.e.
5Did the entity from which VA requested the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d respond within 30 days? If yes, go to Step 8. If no, go to the next step. Note: If the VA Form 21-4193 or equivalent, requested from the entity does not contain the information referenced in M21-1, Part VI, Subpart iv, 1.A.3.d, claims processors are required to attempt to contact the entity by telephone. When telephone contact is unsuccessful, send a follow-up letter requesting the specific missing information and allow 30 days for a response.
6Send a follow-up request for the information and allow 30 days for a response.
7Did the entity to which VA sent a follow-up request respond within 30 days? If yes, go to the next step. If no, take no further action in this table, and pay the full monetary rate due if benefits are granted.
8Use the table below to determine the actions to take based on the information received concerning the incarceration.

References: For more information on

  • the amount to which VA must reduce disability compensation and DIC when a Veteran or surviving spouse is incarcerated, see M21-1, Part VI, Subpart iv, 1.A.2.a and e
  • issuing decision notices, see M21-1, Part VI, Subpart i, 1.B, and
  • calculating the 61st day of incarceration, see M21-1, Part VI, Subpart iv, 1.A.4.a.

5. Handling Notice That Incarceration Has Ended

Introduction

This topic contains instructions for handling notice that incarceration has ended, including

  • acceptable notice that incarceration has ended
  • determining the date incarceration ended
  • handling notice that a beneficiary’s incarceration has ended
  • principles that apply to the resumption or adjustment of a beneficiary’s award after incarceration ends
  • determining the proper effective date for resuming benefits after incarceration ends, and
  • handling notice that a former apportionee’s incarceration has ended.

Change Date

April 23, 2026

VI.iv.1.A.5.a. Acceptable Notice That Incarceration Has Ended

VA does not require beneficiaries to submit a specific form to report that incarceration has ended or to request the resumption or adjustment of the award after incarceration has ended. A beneficiary may report incarceration has ended

  • in writing
  • by telephone or e-mail, or
  • through a VA claims submission service website.

Exception: A former apportionee whose apportionment VA discontinued because the former apportionee was incarcerated must submit VA Form 21-0788 in order for VA to determine whether resumption of the apportionment is appropriate.

Important: For pension purposes, a new report of income and net worth is not required to resume an award when a report that incarceration has ended is received. Claims processors must follow the guidance in M21-1, Part VI, Subpart iv, 1.A.5.d for income information for the resumption of pension awards based on the end of incarceration.

VI.iv.1.A.5.b. Determining the Date Incarceration Ended

For VA purposes, incarceration ends when an individual

  • is released from prison
  • is placed under community control (per VAOPGCPREC 59-1991)
  • begins participation in a work-release program, or
  • moves to a
  • halfway house
  • civil commitment center, or
  • residential re-entry center (as defined in M21-1, Part VI, Subpart iv, 1.A.1.e).

VI.iv.1.A.5.c. Handling Notice That a Beneficiary’s Incarceration Has Ended

Follow the steps in the table below after receiving notice that incarceration has ended.

Exception: If the beneficiary is a former apportionee whose apportionment VA discontinued based on the former apportionee’s incarceration, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.f, instead of the steps in the table below.

Scroll sideways to see the full table.

StepAction
1Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: Incarceration - Resumption of Benefits (290INCROB), or PMC - Incarceration - Resumption of Benefits (290INCROBPMC). Reference: For more information on EP codes and controls, see M21-4, Appendix B.
2Did VA receive the notice directly from one of the one of the official sources referenced in M21-1, Part VI, Subpart iv, 1.A.3.b? If yes, disregard the remaining steps in this table, and follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e. If no, go to the next step. Important: Go to the next step if the beneficiary submitted the notice, even if the notice was accompanied by what appears to be evidence from an official source.
3Attempt to obtain confirmation that incarceration has ended through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation is received immediately (on the same day as an attempt(s) is made), disregard the remaining steps in this table, and follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e, or cannot be immediately obtained, go to the next step.
4Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation that incarceration has ended.
5Concurrent with the action described in the previous step, prepare and send to the beneficiary a letter that notifies the beneficiary of the requirement that VA obtain confirmation incarceration has ended from an official source, and encourages the beneficiary to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.
6Was confirmation that incarceration has ended received from an official source within 30 days? If yes, disregard the remaining step in this table, and follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.d and e. If no, go to the next step.
7Notify the beneficiary that VA cannot resume the payment of benefits that VA reduced or discontinued due to incarceration without confirmation from an official source that incarceration has ended. Clear the pending EP 290. Disregard the remaining steps in this table.

VI.iv.1.A.5.d. Principles That Apply to the Resumption or Adjustment of a Beneficiary’s Award After Incarceration Ends

Following confirmation from an official source that incarceration has ended,

  • resume the payment of benefits at the full rate to which the beneficiary is otherwise entitled, using the information in M21-1, Part VI, Subpart iv, 1.A.5.e, to determine the proper effective date, and
  • remove the Incarceration corporate flash, if present.

Important:

  • The instructions in this block do not apply to a former apportionee whose apportionment VA discontinued because the former apportionee was incarcerated.
  • Some of the principles and instructions contained in this block apply only to beneficiaries whose disability compensation, DIC, or pension VA did not apportion to eligible family members for the period of the beneficiary’s incarceration. Before taking the actions described in this block, read the instructions in
  • M21-1, Part VI, Subpart iv, 2.B.2.i if VA apportioned disability compensation to a Veteran’s dependent(s) for the period of incarceration, or
  • M21-1, Part VI, Subpart iv, 2.B.1.j and k if VA apportioned pension to a Veteran’s dependent(s) for the period of incarceration.

Use the table below to determine the actions to take when other principles apply to the resumption or adjustment of a beneficiary’s award at the end of a period of incarceration.

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If VA...Then...
receives notice from a parole board or other official source that indicates incarceration will end on a specific date in the future, and receives the notice no more than 30 days prior to the date incarceration will endit is acceptable to resume or adjust the beneficiary’s award while the beneficiary or dependent is still incarcerated to reflect that incarceration will end on the future date. Important: Inform the beneficiary in the corresponding decision notice that if incarceration does not end on the specified date, VA will discontinue or reduce benefits without advance notice, effective the same date it took the action described in this block.
paid disability compensation in lieu of pension to a Veteran whose benefits were subject to discontinuance due to incarcerationaward whichever benefit is more favorable to the Veteran when incarceration ends.
was paying the beneficiary Section 306 Pension prior to incarcerationresume payment of the same benefit when incarceration ends, as long as entitlement still exists. Important: Do not switch the beneficiary to current-law pension unless the beneficiary specifically elects that benefit.
receives acceptable notice that incarceration has ended per M21-1, Part VI, Subpart iv, 1.A.5.a for the resumption of a pension awarda new report of income and net worth is not required prior to resumption for pension purposes, and updated income found via the SSA INQUIRY command in VBMS must be utilized when resuming the beneficiary’s award.

VI.iv.1.A.5.e. Determining the Proper Effective Date for Resuming Benefits After Incarceration Ends

Use the table below to determine the proper effective date for resuming the payment of benefits at the full rate to which a beneficiary is otherwise entitled after incarceration ends.

Important:

  • The beneficiary referenced in this block does not include a former apportionee whose apportionment VA discontinued because the former apportionee was incarcerated.
  • Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment.

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If VA received notice incarceration ended …Then the proper effective date for resuming benefits is the date …
within one year of the date incarceration endedincarceration ended.
one year or more after the date incarceration endedVA received notice incarceration ended.

Exception: The information provided in the table above is based on the assumption that VA received notice incarceration had ended after VA had already discontinued or reduced benefits due to incarceration. When concurrently discontinuing or reducing benefits and taking the actions described in this block (because, for example, VA was unaware of the incarceration until it received notice incarceration had ended), the proper effective date for resuming the payment of benefits is the date incarceration ended, regardless of how long after this date VA received notice.

References: For more information on the

  • proper effective date for resuming the apportionment of a former apportionee whose apportionment VA discontinued because the former apportionee was incarcerated, see M21-1, Part VI, Subpart iv, 1.A.5.f, and
  • difference between the effective date of entitlement and the effective date of payment, see M21-1, Part VI, Subpart i, 1.A.2.b.

VI.iv.1.A.5.f. Handling Notice That a Former Apportionee’s Incarceration Has Ended

After discontinuing an apportionment because the apportionee was incarcerated, follow the steps in the table below when VA receives notice incarceration has ended.

Scroll sideways to see the full table.

StepAction
1Did the former apportionee provide the notice? If yes, go to the next step. If no, disregard the remaining steps in this table. No further action is required. Note: If incarceration of the former apportionee required VA to remove them as a dependent from a Veteran’s or surviving spouse’s pension award, follow the instructions in M21-1, Part VI, Subpart iv, 1.A.5.a - e, to determine whether and from which effective date it is appropriate to add the former apportionee back onto the primary beneficiary’s award.
2Did the former apportionee submit VA Form 21-0788 with the notice? If yes, go to the next step. If no, treat the notice as a request for an application, and disregard the remaining steps in this table. Reference: For more information on treating correspondence from a potential claimant as a request for an application, see M21-1, Part II, Subpart iii, 2.G.1.
3Establish EP 290, using the more appropriate of the following claim labels, depending on the benefit at issue: Incarceration Adjustment (disability compensation), or PMC-Incarceration Adjustment (DIC or pension). Reference: For more information on EP codes and controls, see M21-4, Appendix B.
4Attempt to confirm the credibility of the notice through the means described in M21-1, Part VI, Subpart iv, 1.A.3.e. If confirmation is received immediately (on the same day as an attempt(s) is made), go to the next step, or cannot be immediately obtained, go to Step 6.
5Change the EP 290 to EP 130. Decide the new claim for an apportionment based on the regulations in effect at the time the claim was received. Disregard the remaining steps in this table. Important: If entitlement to an apportionment exists, the proper effective date is the date VA received the VA Form 21-0788 referenced in Step 2. Apply the exclusion identified in 38 CFR 3.31(c)(3)(v) when determining the effective date of payment. Reference s: For more information on processing claims for an apportionment, see M21-1, Part VI, Subpart iv, 2.A, and the difference between the effective date of entitlement and the effective date of payment, see M21-1, Part VI, Subpart i, 1.A.2.b.
6Send an e-mail or letter to the appropriate Federal, State, or local government authority, such as those referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, asking for confirmation of the credibility of the notice.
7Concurrent with the action described in the previous step, prepare and send to the former apportionee a letter that notifies the former apportionee of the requirement that VA obtain confirmation from an official source that incarceration has ended, and encourages the former apportionee to ask one of the government authorities referenced in M21-1, Part VI, Subpart iv, 1.A.3.b, to send confirmation directly to VA.
8Was confirmation received from an official source within 30 days? If yes, follow the instructions in Step 5. If no, go to the next step.
9Notify the former apportionee that VA cannot resume the apportionment without confirmation from an official source that incarceration has ended. Clear the pending EP 290.