VA Response to Monthly Witholding Question

The comments below are the complete response to my question of how to submit form monthly to withold the VA benefit on a monthly basis vice an annually accumulated basis.


“Dear Mr. Knight:

This is in response to your inquiry to the Department of Veterans Affairs (VA) dated May 14, 2014.

For the service you have performed for our country, we are grateful. Thank you for your sacrifice.

Unfortunately, it does note quite work that way sir.

Annually, the Defense Manpower Data Center (DMDC) sends a VA form 21-8951, Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances, to reservists and guardsmen.

Waiver Requirements

Inactive duty training pay or active duty pay cannot be paid concurrently with VA benefits and a waiver must be filed annually. It is usually advantageous for the Veteran to waive disability benefits. However, the Veteran may waive drill pay in order to receive full compensation.

Reduction of VA benefits

VA does not create an overpayment on drill pay adjustments. Reduction is made prospectively (in the future) based on the rate in effect during the last day of the fiscal year the training actual took place. A fiscal year runs from October 1 through September 30.

For example, Fiscal year 2007 began October 1, 2006, and ended September 30, 2007. If training occurred during FY 2007, the rates in effect on September 30, 2007, are those on December 1, 2006.

If a Veteran was drawing a temporary 100%, the withholding is based on the permanent rate in effect at that time.

Effective date Reason Code Entitlement Code Dependents Total Award Net Award Type Withholding
06-01-2008 19 01 10/10 568.00 12.00 1 556.00
08-04-2008 19 01 10/10 568.00 568.00 0

If a service-connected Veteran, with an evaluation of 40% and a dependent spouse, completed 63 training days during FY 2007, VA would withhold the rate in effect and pay the difference to the Veteran. Our M12 screen would show as follows:

Counting of Training Time

Inactive Duty Training — On drill weekends, each four-hour training session counts as one day to be waived. So, a drill weekend would be four paydays.

Active Duty Training — For two-week summer camp, each day attended counts as one day to be waived.

In computing the number of days VA benefits must be waived, any authorized travel time for which service pay and allowances are paid is included.

Each month is considered 30 days no matter how many days are actually in the month.

Completing VA Form 21-8951

VA Form 21-8951 mailed to the Veteran will give the individual the following options:

(a) The Veteran can check a box indicating agreement with the number of drill days printed on the form and agree to waive a corresponding number of days of VA benefits, OR
(b) The Veteran can indicate that the number of drill pay days shown on the form is incorrect, enter the correct number of days, have the commanding officer or designee sign the form, and agree to waive a corresponding number of days of VA benefits, OR
(c) The Veteran can indicate that he/she received no drill pay during the fiscal years shown on the form with the commanding officer’s or designee’s signature, OR
(d) The Veteran can elect to waive drill pay in order to receive VA benefits.

Notification of VA action

Inform the Veteran that VA will send a letter informing him or her of the amount withheld and the date full compensation benefits will be restored. If the Veteran does not agree with the amount of days benefits were withheld, the Veteran may appeal the decision.

VA Form 21-8951 Is Not Returned to VA

If there is no response within 90 days from a Veteran who was sent VA Form 21-8951, then three copies of the form are generated by the computer system in Hines, IL. Two copies are sent to the Regional Office of jurisdiction and one copy is sent to Central Office.

The Regional Office will send a due process letter to the Veteran along with one copy of VA Form 21-8951. The Veteran is to complete and return the form within 65 days from the date of the letter. If the Veteran fails to respond to the due process letter, then the Regional Office will adjust the award according to regulations.

Manual Reference: M21-1MR Part III subpart v Chapter 4 Section C

Thank you for contacting us. If you have questions or need additional help with the information in our reply, please respond to this message or see our other contact information below.

Sincerely yours,

X. XXXX
National IRIS Response Center Manager”

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