The Va Taketh Away Faster Than They Giveth...

[free_spirit_etc]

A couple of months ago I looked up the regs -- and it said that the Va payment for the month of death is a right of the widow.

I got the VA letter - and it said to call the tool-free number - so I did.

I was told that I had to send in a statement of claim asking to be allowed to keep the February payment -and that it NOT be reclaimed.

I have since closed my joint bank account with my husband. (AT&T was taking money out, but was not authorized to do so - and was not even applying it to our phone bill - so who knows who authorized them to take it out -or where it was going -- I just closed the account - and still have to sort things out with AT&T -which is hard because the fact they are taking money out of OUR bank account is NOT recorded to OUR phone bill - so I haven't found anyone to trace it yet).

Anyway - I Have a personal account with the same bank - which I opened after my husband's death.

Today I called to ask why my avaliable amount is reduced by $225..

The VA has a hold on it. Since our joint account is no longer open - the VA is reclaiming the payment for the month of death from MY account.

Geez!!

It is amazing how fast they can do THAT!!

Too bad they can't pay that fast....

And they wasted MY time and THEIR time - sending me letters telling me to call - and answering my call - and telling me what to do to keep the funds --if they were going to take them back and make me send in another claim to add to their backlog to get the $225 back.

I will have to say it is NOT just the VA --

I have gotten the run-around from Social Security (who - since my son is disabled (autism) --and on SSI - reduced his SSI benefits by 1/3 because he was living with us and receiving support from my husband -- but when he applied for SSD on my husband's record denied him -- because he was not living with my husband or receving support from him (????) The same dang office -- and one cuts his benefits because of my husband's support and one denied him benefits because my husband wasn't supporting him..., the mortgage company, the credit card company who took two months to close my husband's account while fraudulent charges were being added to his card, --well -- pretty much everyone...

Again, it is the no acountability issue -- a world full of toll free numbers in which no one is responsible for what they tell you - so they just tell you anything.

I am tired........

Free

[free_spirit_etc]

Here are the regs on that:

I asked the person at the RO to fill out the VA form 119 - lke it says - to STOP the Reclaimation process. But she told me it was an "in house" form - and that I would have to send in a statement in support of claim instead....

Of course it is an IN-HOUSE form - SHE was SUPPOSED to fill it out!

Veterans Benefits Administration M21-1, Part IV

Department of Veterans Affairs Change 216 Erratum

Washington, DC 20420 April 26, 2005

Veterans Benefits Manual M21-1, Part IV, “Authorization Procedures,” is changed as follows:

Pages 26-I-5 through 26-I-8: Remove these pages and substitute pages 26-I-5 through 26-I-8 attached.

Paragraph 26.01j is modified to include two additional examples of cases requiring a determination as to a surviving spouse’s entitlement to a deceased veteran’s benefit or rate of payment for the month of death.

LOCAL REPRODUCTION AUTHORIZED

April 26, 2005 M21-1, Part IV

Change 216 Erratum

month of death as a claim for this benefit. This includes a request over the phone or written notification.

Authority 38 U.S.C. 5101.

(a) Requests over the phone must be recorded on VA Form 119, “Report of Contact” and the caller

must provide oral verification satisfactory to the veteran’s service representative that the caller is the surviving spouse.

(:( If there is any question as to the validity of the surviving spouse status, appropriate development should be undertaken.

(a) If a request for the veteran’s rate for the month of death is accompanied by VA Form 21-534,

“Application for Dependency and Indemnity Compensation, Death Pension, and Accrued Benefits,” a merit determination for death benefits will be made prior to awarding benefits under 38 CFR 3.20©.

(2) Use a locally generated letter to send one of two possible messages, depending on whether TINQ

(Treasury Inquiry) shows that the veteran’s check or direct deposit has been returned, either:

(a) We will re-issue payment to you; or

( Since you are entitled to the veteran’s payment for the month of death, you are not required to

return the check or direct deposit.

(3) In either instance, send the claims folder to Finance with the following notation on OF 41:

“Surviving spouse entitled to 1-time payment of [amount of monthly compensation or pension received by the veteran at time of death] per 38 CFR 3.209©.” If payment has been returned, request Finance to re-issue the payment to the surviving spouse (06A transaction). If payment has not been returned, notify Finance that the overpayment should be removed (08E transaction). Input of the 08E transaction must be accomplished within 45 days of the debt being established. The finance activity must notify the Debt Management Center (DMC) of the action so that they can stop the reclamation process. If the debt has been in the system for 60 days, DMC cannot stop the reclamation process when the finance activity inputs the 08E transaction.

Note: If a surviving spouse files a claim for Dependency and Indemnity Compensation (DIC) more than one year after the veteran’s death, or death pension more than 45 days after the veteran’s death and establishes entitlement, the claimant is still eligible for the veteran’s rate for the month of death under 38 CFR 3.20©.

Note 2: Payment as described under 38 CFR 3.20© should not be confused with payment of the veteran’s rate for the month of death under 38 CFR 3.20(:o. Under 38 CFR 3.20(:(, payment should be made to the surviving spouse for the month of death on the original death award (see 36.01(a)).

(4) If, after payment under 38 CFR 3.20©, the surviving spouse subsequently becomes entitled to death

benefits from the date of the veteran’s death at a rate higher than the amount paid under 38 CFR 3.20©, an offset should be established (38 CFR 3.20(:( and 3.31). Create the offset for recovery of the veteran’s rate for the month of death prior to the original award of DIC or death pension.

(a) Withhold all benefits under Type 1 withholding from the date of entitlement. Suppress the

award letter. After the award showing total withholding has been authorized, route the claims folder to Finance for action to establish the offset. Deliver these folders to Finance daily.

(B) When the folder is returned from Finance, ensure the offset appears on the M01 screen. Process an amended award. Remove the withholding (show “0” entry under Type Withholding) and pay full benefits to which the surviving spouse is entitled.

j. Four Types of Cases Requiring a Determination as to a Surviving Spouse’s Entitlement to a Deceased Veteran’s Benefit or Rate of Payment for the Month of Death. If the veteran was in receipt of benefits at the time of

26-I-5

M21-1, Part IV April 26, 2005

Change 216 Erratum

death and a merit determination regarding the surviving spouse’s claim for improved death pension or Dependency and Indemnity Compensation (DIC) has been made, an additional determination must be made regarding the surviving spouse’s entitlement to the veteran’s benefit or rate of payment for the month of the veteran’s death.

(1) A surviving spouse’s entitlement to death benefits has been established. The claim was received more than one year after the veteran’s death. The surviving spouse is entitled to the veteran’s benefit for the month of death under 38 CFR 3.20©. Send OF 41 to Finance (see 26.01i(3)). The provisions of § 3.20(B) do not apply, since the surviving spouse was not entitled to death benefits for the month of the veteran’s death. Therefore, a comparison between the veteran’s rate of payment at the time of death and the surviving spouse’s rate of DIC/death pension is unnecessary.

(2) A surviving spouse’s entitlement to death benefits has been established. The claim was received within one year of the veteran’s death. The surviving spouse’s rate of payment is greater than the veteran’s rate for the month of death. Per 38 CFR 3.20(B), DIC may not be paid for the month in which the veteran died since the surviving spouse’s rate of DIC is greater. However, under the provisions of 38 CFR 3.20©, the surviving spouse is entitled to the benefit the veteran would have received that same month, but for his/her death.

(3) A surviving spouse’s entitlement to death benefits has been established. The claim was received within one year of the veteran’s death. The surviving spouse’s rate of payment is less than the veteran’s rate for the month of the veteran’s death. The surviving spouse is entitled to the veteran’s rate for the month of death under 38 CFR 3.20(B). Payment for the month of death is included in the original award to the surviving spouse.

(4) The surviving spouse’s entitlement to death benefits has been denied. The surviving spouse is entitled to the veteran’s benefit for the month of death under 38 CFR 3.20©(1). Send OF 41 to Finance (see 26.01i(3)).

26.02 AWARD TO SURVIVOR UPON DEATH OF DEPENDENT OF A DECEASED VETERAN

a. General. Upon receipt of an acceptable statement or evidence of death of a payee, discontinue the award to the deceased payee using reason code 22, Death of Person Entitled.

(1) If evidence is required to establish continued entitlement for one or more surviving beneficiaries, do not change his or her payments pending receipt of the required evidence within the 60-day control period established for this purpose. If the evidence is not received by the expiration of the control period, terminate any affected awards (reason code 16) as of date of last payment. Notice is required, as well as the right to appeal.

(2) If necessary evidence is received within 1 year of the request, adjust or reopen any award to a surviving payee as of the effective date of termination of the decedent's award (38 CFR 3.651). Include an appropriate notation in "Remarks" as to the date of death and name and relationship of the deceased. Enter the applicable dependency codes to reflect the change in the number of dependents on which the entitlement is based.

(3) Unless a statement furnishing month and year of death may be accepted under 38 CFR 3.213, proof of death of the payee meeting the requirements of 38 CFR 3.211 will be required in all cases.

b. Death of a Surviving Spouse. Terminate the surviving spouse's award using reason code 22 effective the first day of the month of death. The provisions of subparagraph 26.07e relating to remarriage of a surviving spouse are for equal application in establishing the entitlement of children in cases involving the death of a surviving spouse.

[free_spirit_etc]

Sent this through IRIS:

Per regulation M21-1, Part IV 26.02.

My husband died February 5th. I received a letter from the VA which told me to contact the toll free number - I asked about the form VA Form 119 - but the person on the phone told me that was an In House Form - and that the way to stop the payment for the month of death from being reclaimed from my bank account was to send in a statement in support of claim --stating that I was entitled to keep the payment - and asking that it not be reclaimed.

Apparently it is being reclaimed because my bank has a $225 hold on my checking account (my PERSONAL checking account) from the VA.

I do not know why I was told to send in a statement in support of claim instead of the procedures listed in the manual being followed.

I would like to know:

1. If the VA will STOP the reclamation process?

or if not

2. If they will follow the procedures in the manual and direct Financing to re-issue the check to me.

Thank you.

[Guest jangrin]

Free,

Sometimes the world just seems to keep on spinning and doesn't change. It's either hang on or be flung aside. I'm sorry you have had to go through all the Cr*p with the VA and SSA. It really seems to me that it should be a much friendlier and kinder place.

What a crock over $225.00. Right when you think it is over and now it's time for a break and for people to be conpassionate... you - get to start a whole new series of forms and regulations. The system is certainly not for those who are in need of aid, or are ill, or could really use a port in the storm. The system is 100% mechanical, no human factor left. Sad, bacause that's really what it's all about, helping those who need help. Gee Wiz, I think the whole point of the VA system, has been lost. It just breaks your heart.

Hang in there,

Jangrin

[tssnave]

How is it that the VA has dipped their hands into an account that was NOT linked to the vets claim?

Surely this is not legal, is it?!?!?

Is there some loophole because the spouse filed for DIC which somehow makes any account of hers free game for VA to deduct funds? Someone please explain this to me. I have my VA sent directly to a joint savings account but I also have other checking accounts at the same bank (our personal and spouse's business checking accounts). I surely don't want to put the other checking accounts at any risk - that could cost a lot of money bouncing checks if you didn't know they were going to take money out of an account. Makes me wonder if I should open a savings account at another bank entirely just for my VA payments.

I am appalled that the VA can apparently attach ANY account with the same bank. Someone please tell me this is an error covered under some regulation preventing the VA from just taking money from anywhere they please or why it is legit in this situation.

This whole thing boggles my mind.

Thanks,

ts

[jbasser]

That is the drawback of Direct Deposit. Any entity who wire transfers funds to an account has the right to do a reversal.That is why I have 2 accounts and once the payment hits one, it automatically goes to the other.

[Ricky]

Free changed bank accounts. She closed the account to which direct deposit was going to. The only way I think they could dip into her new account is that she is drawing DIC and has direct deposit set up for payment of the DIC.

Outside of that I do not think they can do what they have done. I would raise hell with the bank.