Veterans Benefits Administration

Washington, D.C. 20420

August 27, 2007

Director (00/21) In Reply Refer To: 211B

All VA Regional Offices Fast Letter 07-19

SUBJ: Procedures for Handling Extraordinary Awards

The Compensation and Pension (C&P) Service Bulletin dated June 2007 discussed new

procedures for regional offices (ROs) to follow in cases involving awards with an

effective date retroactive eight or more years or that result in a lump-sum payment of

$250,000 or more. These awards require a review by the C&P Service prior to award

authorization. This fast letter (FL) provides more detailed guidance for handling these

types of cases.

The Rating, Appeals, and Post-Determination Teams are responsible for identifying cases

that meet these criteria.

Whenever a rating decision grants service connection with an effective date retroactive

eight or more years, the claims folder must be flashed to alert the authorization activity of

the extraordinary award. This instruction also applies whenever an earlier effective date

of eight or more years is granted for a previously service-connected disability. After

flashing the folder, forward the case to the Post-Determination Team. Do not offer these

Rating Veterans Service Representatives (RVSRs) and Decision Review Officers (DROs)

should be the first to identify a case involving an effective date retroactive eight or more

years. However, Veterans Service Representatives (VSRs) and Senior Veterans Service

Representatives (SVSRs) on the Post-Determination team are ultimately responsible for

Director (00/21)

identifying these cases, as well as any awards involving a lump-sum payment of

$250,000 or more. If using VETSNET Awards, the application will automatically

calculate the retroactive amount.

The VSR or SVSR who identifies a rating decision meeting the established criteria will

prepare the referral memorandum for the Veterans Service Center Manager (VSCM) to

request an administrative review by the C&P Service (see enclosed). The VSCM will

then review the decision and sign the memorandum if he or she agrees with the decision.

Signature responsibility may only be delegated to an individual serving as VSCM in an

acting capacity. For additional information on requesting an administrative review,

please refer to M21-1MR, Part III, Subpart vi, Chapter 1, Section A, Topic 3.

After completing the memorandum and attaching it to the file, the VSC will send the

claims folder via Federal Express to:

C&P Service (211B, Advisory Review)

810 Vermont Ave, NW

Washington, DC 20420

Reflect a temporary transfer of the claims folder in COVERS and update the suspense

accordingly. In addition, before the claims folder leaves the RO, add the claimant flash

“250K Retro Review” via the VETSNET Participant Profile application. The C&P

Service will review these cases and return them to the VSC by Federal Express within

five days of receipt.

If the C&P Service concurs with the VSC decision, the veteran’s representative (if

applicable) will then be allowed to review the decision prior to its promulgation.

These new procedures do not replace the three-signature requirement for awards

exceeding $25,000 (whether processed through BDN or VETSNET). The VSC must still

follow the three-signature award procedures as outlined in M21-1, Part V, 9.01(b).

If the C&P Service determines the decision is improper, it will provide specific corrective

action.

Page 3.

Director (00/21)

Ratings based on decisions by the Board of Veterans’ Appeals (BVA) or the U.S. Court

of Appeals for Veterans Claims (CAVC) will be excluded from the C&P Service review

only when BVA or CAVC assigns the effective date and/or the retroactive increased

evaluation. Otherwise, when processing decisions by BVA or CAVC, follow the

procedures outlined in this FL whenever the rating decision involves an effective date

retroactive eight or more years or the award results in a lump-sum payment of $250,000

or more.

Cases processed under the Nehmer v. U.S. Veterans’ Administration court order are

exempt from the provisions of this FL because these cases are already being reviewed by

the C&P Service.

Questions concerning this fast letter should be submitted to VAVBAWAS/CO/21Q&A.

/s/

Bradley G. Mayes

Director

Compensation and Pension Service

Enclosure: Sample Memorandum

Date:

From: Veterans Service Center Manager, _________ Regional Office

Subj: Administrative Review-Retroactive Effective Date/Lump-Sum Payment

File number: _________________

To: Director, Compensation and Pension Service

At issue in this case is whether the effective date and/or amount of payment are

appropriate.

Please see rating decision in claims folder dated ________.

We propose to .... (Propose a recommendation for each issue cited in the

first paragraph. Example: “We propose to pay $275,000.00 retroactive

benefits for the period 07/01/97 to 08/01/07.”) Your concurrence is

requested.