Ancillary Benefits and Other Issues Involving Benefits Delivery at Discharge (BDD) or BDD-Excluded Claims

Overview

In this Section

This section contains the following topics:

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1. VR&E Claims

Introduction

This topic contains information on the processing of VR&E claims filed prior to separation, including

• handling VR&E claims received from service members, and
• actions intake sites must take upon receipt of VA Form 28-1900, Application for Veteran Readiness and Employment for Claimants With Service-Connected Disabilities.

Change Date

March 16, 2022

X.i.6.D.1.a. Handling VR&E Claims Received From Service Members

Intake sites may receive claims from service members for vocational rehabilitation/employment (VR&E) benefits under 38 U.S.C. Chapter 31 that they may use while on active duty or after separation.

X.i.6.D.1.b. Actions Intake Sites Must Take Upon Receipt of VA Form 28-1900

Follow the steps in the table below within five days of receipt when an intake site receives a VA Form 28-1900, Application for Veteran Readiness and Employment for Claimants With Service-Connected Disabilities (Chapter 31, Title 38, U.S.C.).

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Note: The regional office (RO) should not delay processing VA Form 28-1900 pending a decision on the Benefits Delivery at Discharge (BDD) and/or BDD excluded claims.

References: For more information on

• EPs, see M21-4, Appendix B
• actions to take if the claimant’s STRs are unavailable, see
• M21-1, Part III, Subpart i, 2.C.3.b, and
• M21-1, Part III, Subpart ii, 1.A.1.e
• preparing memorandum rating decisions for the purpose of determining eligibility for Veteran Readiness and Employment (VR&E) benefits, see M21-1, Part XIII, Subpart i, 5.B, and
• VR&E contacts by station of jurisdiction (SOJ), to include e-mail addresses, see the VR&E Officer Directory.

2. Loan Guaranty Claims

Introduction

This topic contains information regarding loan guaranty applications submitted with BDD or BDD-excluded claims, including

• service members’ eligibility for home loan guaranty
• intake site responsibilities upon receipt of VA Form 26-1880, Request for a Certificate of Eligibility
• Regional Loan Center (RLC) action upon receipt of VA Form 26-8937, Verification of VA Benefits, from a service member
• SOJ responsibility for preparing memorandum rating decisions upon receipt of a request for an eligibility determination from an RLC, and
• text the SOJ must use when responding to a request for an eligibility determination from an RLC.

Change Date

August 24, 2023

X.i.6.D.2.a. Service Members’ Eligibility for Home Loan Guaranty

A Veteran who has a compensable, service-connected (SC) disability and purchases a home using Department of Veterans Affairs’ (VA’s) home loan guaranty is eligible for a waiver of the VA home loan funding fee.

A service member who is separating from service may be eligible for the funding fee waiver if the evidence of record establishes the service member will be in receipt of VA disability compensation after separation.

X.i.6.D.2.b. Intake Site Responsibilities Upon Receipt of VA Form 26-1880

Upon receipt of VA Form 26-1880, Request for a Certificate of Eligibility, intake sites must

• forward the form to the appropriate Regional Loan Center (RLC)
• ask if the service member plans to use VA’s home loan guaranty to purchase a home prior to separation, and, if so,
• advise the service member to
• ensure the lender knows a claim is pending with VA, and
• timely complete VA Form 26-8937, Verification of VA Benefits.

References: For more information on contacting the RLC of jurisdiction by

• e-mail, see M21-1, Part II, Subpart i, 2.D.7.a, and
• physical mail, see VA Form 26-1880.

X.i.6.D.2.c. RLC Action Upon Receipt of VA Form 26-8937 From a Service Member

Upon receipt of VA Form 26-8937, from a service member, RLCs request an eligibility determination from the SOJ by sending an e-mail to a designated point of contact at the appropriate site.

Reference: For more information on the appropriate regional benefit offices, see the map of regional benefit office websites.

X.i.6.D.2.d. SOJ Responsibility for Preparing Memorandum Rating Decisions Upon Receipt of a Request for an Eligibility Determination From an RLC

Upon receipt of a request for an eligibility determination from an RLC, the SOJ must prepare a memorandum rating decision for inclusion in the service member’s claims folder if

• the service member’s BDD or BDD-excluded claim has not yet been decided, and
• the evidence of record shows the service member is at least 10-percent disabled due to SC disability(ies).

X.i.6.D.2.e. Text the SOJ Must Use When Responding to a Request for an Eligibility Determination From an RLC

Use the table below to determine the text that the SOJ must use when responding to a request for an eligibility determination from an RLC.

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Note: The SOJ must establish an EP 290 with the claim label LGY Determination - BDD to control an RLC’s request for an eligibility determination.

References: For more information on

• loan guaranty benefits, see M21-1, Part XIII, Subpart i, 7.A
• EPs, see M21-4, Appendix B, and
• claim labels, see M21-4, Appendix C.

3. Claims Involving a Resumption of Compensation

Introduction

This topic contains information on resuming compensation for service members who file BDD or BDD-excluded claims, including

• handling claims for Veterans returning from active duty
• responsibility and EPs for resuming compensation, and
• effective date for resuming a service member’s compensation.

Change Date

August 24, 2023

X.i.6.D.3.a. Handling Claims for Veterans Returning From Active Duty

When a Veteran in receipt of disability compensation returns to active duty, VA must discontinue disability compensation.

Once the Veteran is released from active duty, VA may resume benefits.

Note: The rating activity must re-evaluate any non-static disabilities for which the designated date for the future review examination is not a future date beyond the service member’s separation date. (A disability is considered static unless the prior rating decision indicates a routine future examination of the disability is necessary).

Reference: For more information on requests for reinstatement and resuming benefits after a Veteran returns from active duty, see M21-1, Part X, Subpart v, 2.B.

X.i.6.D.3.b. Responsibility and EPs for Resuming Compensation

Use the table below to determine who is responsible for processing requests for resumption of compensation and the EPs and claim labels used.

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Important: VA does not require a Veteran to use a prescribed form to request reinstatement of benefits unless the Veteran is concurrently claiming entitlement to

• an increased disability rating, or
• SC for a new disability.

Notes:

• Simultaneously pending EPs 336 and 310 would only be allowed if the additional claimed conditions and non-static disabilities were different issues. Example: If the service member claimed an increase in a non-static disability, then only the 336 would be allowed.
• If a service member’s last rating decision is not available in the electronic claims folder (eFolder), the intake site must obtain a copy of the rating decision before resuming benefits.
• Because there is a possibility that service members who participate in the Integrated Disability Evaluation System (IDES) Program might return to active duty, the instructions in this block do not apply to their cases. Furthermore, Disability Rating Activity Sites (DRASs) prepare “preliminary” rating decisions for these service members prior to their separation if their Physical Evaluation Board determines they are unfit for duty. These decisions consider the severity of any non-static disabilities. Unless the service department returns an IDES participant to duty, the DRAS of jurisdiction resumes compensation for any static and non-static disabilities (if in order), upon promulgation of a final rating decision.
• Claims processors must review and complete any necessary withholding for receipt of separation benefits and/or military retired pay (MRP) when resuming compensation.

References: For more information on

• EPs, see M21-4, Appendix B
• establishing EPs for BDD and BDD-excluded claims, see M21-1, Part X, Subpart i, 6.B.2
• actions to take upon receipt of a claim for reinstatement of compensation, see M21-1, Part X, Subpart v, 2.B
• the use of prescribed forms, see M21-1, Part II, Subpart iii, 1.A
• intent to file, see M21-1, Part II, Subpart iii, 2.A
• requests for applications, see M21-1, Part II, Subpart iii, 2.G
• historical handling of applications and informal claims, see M21-1, Part II, Subpart iii, 2.H
• the requirement to reduce or withhold payments, see M21-1, Part VI, Subpart i, 1.A.1.c
• recoupment of separation benefits, see M21-1, Part VI, Subpart ii, 2
• elections and waivers in MRP cases, see M21-1, Part VI, Subpart ii, 4.A, and
• preparing and adjusting awards in MRP cases, see M21-1, Part VI, Subpart ii, 4.B.

X.i.6.D.3.c. Effective Date for Resuming a Service Member’s Compensation

The effective date for resuming a service member’s compensation is the day following release from active duty, if VA receives a request for resumption within one year from the date of such release. Otherwise, the proper effective date is one year prior to the date VA receives the request.

Important: Under 38 CFR 3.31(b) and 38 CFR 3.654(b)(2), the end-of-month rule does not apply to the resumption of compensation following release from active duty. This rule does apply, however, to any additional benefits VA awards the Veteran because of a grant of SC for a new disability or an increased disability rating.

4. Requests for CSPLs

Change Date

August 5, 2016

X.i.6.D.4.a. Procedures for CSPL Requests

Civil Service Preference Letters (CSPL) can only be created by VA when there is a prior period of verified, completed, other than dishonorable service of record. Use the table below when receiving one of these requests.

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Note: If the service member does not have a prior period of service for which a CSPL can be given, does not want to obtain a CSPL letter from the service prior to separation, and would prefer to obtain the letter from VA, then

• ensure the request for a CSPL is documented in the eFolder, and
• insert a note in VBMS notifying the SOJ that a CSPL is requested.

Reference: For more information on EPs, see M21-4, Appendix B.

5. Handling Cases Involving Pregnant BDD Claimants

Introduction

This topic contains information on cases involving pregnant BDD claimants, including

• information to provide pregnant claimants during an initial meeting
• requesting examinations for pregnant claimants, and
• rating decisions in claims involving a pregnant claimant.

Change Date

April 3, 2023

X.i.6.D.5.a. Information to Provide Pregnant Claimants During an Initial Meeting

When having an initial meeting with a pregnant BDD claimant, Military Services Coordinators (MSCs) must advise the claimant of the following:

• Medical professionals who examine BDD claimants may, at their discretion, defer some or all examinations because of pregnancy.
• Without the medical evidence from a deferred examination, VA may have to defer a decision on some or all of the claimed disabilities.
• Deferral of a decision will not adversely affect the ultimate outcome of the claim.
• The claimant must notify VA of any changes in mailing address or telephone number. This enables VA to follow up with the claimant on any deferred decisions.
• The claimant should contact VA if VA does not follow up on any deferred decision within 30 days after the expected delivery date.

X.i.6.D.5.b. Requesting Examinations for Pregnant Claimants

MSCs must include the following remarks in any examination request for a pregnant BDD claimant:

Please be advised that this individual has indicated a current pregnancy. If the examining physician determines that this examination (or any part of this examination) is medically contraindicated, please clearly indicate which parts of the examination were not completed due to the pregnancy.

Further, the examiner should indicate the earliest date that the examination may be safely completed.

X.i.6.D.5.c. Rating Decisions in Claims Involving a Pregnant Claimant

The RO will rate any claimed conditions that may be awarded based on the evidence of record, and defer consideration of any additional disabilities that could not be examined until conclusion of the pregnancy.

Reference: For more information on partial rating decisions and deferred issues, see M21-1, Part V, Subpart ii, 3.B.