What this means
m21-4:appendix-d.4 explains purpose of deferral reasons. In plain terms, the official guidance says the electronic deferral functionality within Veterans Benefits Management System (VBMS) allows a claims processor to return a claim to an earlier place within the claims cycle to correct avoidable and unavoidable erroneous actions. It also addresses use the table below to determine the appropriate primary and secondary deferral reasons based on the current claim status.
How this may help with a claim
Use m21-4:appendix-d.4 as a lookup tool for purpose of deferral reasons. Match the exact label, code, condition, or table row in your records to the official entry; one useful point is: The electronic deferral functionality within Veterans Benefits Management System (VBMS) allows a claims processor to return a claim to an earlier place within the claims cycle to correct avoidable and unavoidable erroneous actions. Use the table below to determine the appropriate primary and secondary deferral reasons based on the current claim status. Keep the notice or screen that uses the term so you can distinguish an internal status label from a filing deadline or entitlement rule.
What to review in your file
- Check the file against this official condition: The electronic deferral functionality within Veterans Benefits Management System (VBMS) allows a claims processor to return a claim to an earlier place within the claims cycle to correct avoidable and unavoidable erroneous actions.
- Confirm that the record or notice addresses this source point: provides justification on the use of the deferral functionality and for the need of the deferral being generated to return the claim to an earlier places within the claims cycle
- Document how this stated step or exception applies: Use the table below to determine the appropriate primary and secondary deferral reasons based on the current claim status.
Important limits
m21-4:appendix-d.4 helps decode purpose of deferral reasons, but a code, tracked item, or table entry is not proof that VA has granted or denied the underlying benefit. Use the governing notice and controlling law for rights and deadlines. The official context includes: The electronic deferral functionality within Veterans Benefits Management System (VBMS) allows a claims processor to return a claim to an earlier place within the claims cycle to correct avoidable and unavoidable erroneous actions. As of June 1, 2019, claims processors must discontinue creating deferrals on claims in the open status.
Search terms when useful
Phrases that may help when searching your claim file or this library.
- Purpose of Deferral Reasons
- m21-4:appendix-d.4
- Purpose Deferral Reasons
- Deferral Reasons
- index deferral reasons.
- D.4.a. Purpose Deferral Reasons
- electronic deferral functionality within
- provides justification deferral functionality
Original VA guidance
The official VA text of this section
4. Deferral Reasons
Introduction
This topic contains information about deferral reasons, including
- purpose of deferral reasons, and
- index of deferral reasons.
Change Date
February 4, 2026
D.4.a. Purpose of Deferral Reasons
The electronic deferral functionality within Veterans Benefits Management System (VBMS) allows a claims processor to return a claim to an earlier place within the claims cycle to correct avoidable and unavoidable erroneous actions. The most accurate deferral reason must be selected when generating deferrals. Selecting the most accurate deferral reason
- provides justification on the use of the deferral functionality and for the need of the deferral being generated to return the claim to an earlier places within the claims cycle
- ensures understanding of the deferral and that the proper action(s) can be taken to resolve the deferral while allowing the claim to continue through the claims process
- allows for proper employee transactional credit for action related to the deferral process, and
- allows for proper workload management, both at the national level and the local level.
D.4.b. Index of Deferral Reasons
Use the table below to determine the appropriate primary and secondary deferral reasons based on the current claim status.
Scroll sideways to see the full table.
| Status When Generating Deferral | Primary Deferral Reason | Secondary Deferral Reason |
| Open | Incomplete Development | Not all contentions were developed |
| Exams not ordered on all claims for increase | ||
| Only Letters Sent; Other Simultaneous Development Should Have Included (…) | ||
| Herbicide Development to Veteran Incomplete - RRT | ||
| Necessary Federal Records Not Obtained - RRT | ||
| Evidence Missed | Evidence in File At Time of Development Was Not Considered | |
| Evidence in File at Time of Development Was Not Considered - RRT | ||
| VSR - Directed Development | Directed Development | |
| Ready for Decision Secondary Ready for Decision Ready to Work, or Rating Correction | PACT Act | Awaiting Implementation of PACT Act Legislation |
| Evidence | Missed Development | |
| Insufficient Medical Evidence (Pension Claim) | ||
| New Records/ Needs Review | ||
| Issue | New Issue | |
| Missed Issue | ||
| Inferred Issue | ||
| Exam | Examination Needed | |
| Examination and Opinion Needed | ||
| Pension Exam Needed | ||
| Opinion Needed | ||
| Insufficient Examination | ||
| Clarification Needed | ||
| Development | Missed Development | |
| New Records / Needs Review | ||
| Concurrent EP not addressed (Pension Claim) | ||
| Inferred Service-Connected Death Issue- No Reasonable Probability for Service-Connected Death | ||
| No Rating Activity Required | ||
| Income/Net Worth Issue | ||
| Accrued/Appeal EP | ||
| Basic Eligibility Not Met | ||
| No Death Certificate of Record | ||
| Centralized Processing Required | ||
| RFA of Incomplete Application | ||
| SSA, CAPRI, JVL Records Needed | ||
| Dependency Issue (Pension Claim) | ||
| Rating Decision Complete Returned by Other User Self-Returned, or Rating Incomplete (Awaiting Award) | RVSR – Rating Correction | Wrong effective date / DOC |
| Missed / duplicate issues | ||
| Incorrect code-sheet annotation (not signed) | ||
| Inferred issue not addressed (SMC, Competency, SMP, Ch. 35, etc.) | ||
| Narrative and code-sheet do not match | ||
| Late flowing documents / scanning issues | ||
| Narrative Text Correction Required | ||
| Code-Sheet Correction Required | ||
| Pending Authorization Pending Concur (Awaiting Authorization-award deferral) | VSR – Notification Correction OR VSR – Incorrect Payment OR VSR – EP Errors | Wrong effective dates |
| Date Of Claim incorrect | ||
| Dependency issues | ||
| Improper withholdings (retired pay, incompetency, dependency, recoupments, withholdings) | ||
| Incorrect notification letters (salutation, grammatical, etc.) | ||
| POA Issues | ||
| Late flowing documents/scanning issues | ||
| VSR PMC Errors | Burial Errors | |
| Date of Claim Incorrect | ||
| Dependency Issues | ||
| DIC Errors | ||
| Improper Withholdings | ||
| Income Counting | ||
| Incomplete Development | ||
| Incorrect Notification Letters | ||
| Late Flowing Documents/Scanning Issues | ||
| Medical Expenses | ||
| Month of Death | ||
| Net Worth | ||
| Other Expenses | ||
| POA Issues | ||
| Wrong Effective Dates | ||
| RVSR – Rating Correction | Wrong effective date / DOC | |
| Missed / duplicate issues | ||
| Incorrect code-sheet annotation (not signed) | ||
| Inferred issue not addressed (SMC, Competency, SMP, Ch. 35, etc.) | ||
| Narrative and code-sheet do not match | ||
| Late flowing documents / scanning issues | ||
| Narrative Text Correction Required | ||
| Missed Development/Predetermination/Administrative Decision | ||
| Code-Sheet Correction Required |
Note: As of June 1, 2019, claims processors must discontinue creating deferrals on claims in the open status.