M21-1 Manual  /  Part VI, Subpart ii, Chapter 4, Section C

Coordinating Military Retired Pay (MRP) Cases With Retired Pay Centers (RPCs) and Service Departments

M21-1, Part VI, Subpart ii, Chapter 4, Section C

Overview

In This Section

This section contains the following topics:
TopicTopic Name
1MRP Coordinator
2Obtaining MRP Information from Defense Finance and Accounting Service (DFAS)
3Exchange of Information Between the Department of Veterans Affairs (VA) and RPCs
4Handling Legislative Increases in Compensation
5Handling Errors and Discrepancies Involving the Payment of VA Benefits to Veterans That Are Eligible for MRP


1. MRP Coordinator

Introduction

This topic contains information on the MRP coordinator, including information on
  • appointing an MRP coordinator, and
  • MRP coordinator’s responsibilities.

Change Date

March 12, 2018

VI.ii.4.C.1.a. Appointing an MRP Coordinator

Regional offices (ROs) should appoint someone to act as Military Retired Pay (MRP) Coordinator and serve as the authorization activity’s single point of contact (POC) for telephone inquiries to the Defense Finance and Accounting Service (DFAS). Notes:
  • DFAS handles most MRP accounts.
  • The same employee that serves as an RO’s Military Records Specialist may also serve as the RO’s MRP Coordinator.
Reference: For more information on retired pay centers (RPCs), see M21-1, Part VI, Subpart ii, 4.C.2.f.

VI.ii.4.C.1.b. MRP Coordinator Responsibilities

MRP Coordinators are responsible for handling MRP inquiries for which a satisfactory response cannot be obtained through normal development procedures with a single phone call.

2. Obtaining MRP Information from DFAS

Introduction

This topic contains information on obtaining retired pay information from DFAS, including
  • using the Veterans Information Solution (VIS) as a source for MRP information
  • contacting DFAS
  • documenting contact with DFAS
  • contacting DFAS about non-routine and Survivor Benefit Plan (SBP) cases
  • POC for SBP entitlement issues, and
  • RPCs by service department.

Change Date

May 27, 2026

VI.ii.4.C.2.a. Using VIS as a Source for MRP Information

Use the Veterans Information Solution (VIS) to obtain information about a Veteran’s MRP. This information is located in the RETIRED PAY INFORMATION section on the DFAS/CG PAYMENTS tab in VIS. Document the information obtained from VIS by
  • downloading the document titled Veteran DFAS Payments, which is accessible on the REPORTS tab in VIS, and
  • uploading the same document into the Veteran’s electronic claims folder (eFolder).
Reference: For more information on accessing and using VIS, see the VIP VIS - Veterans Information Portal (VIP) VIS Access Procedure and User Guide.

VI.ii.4.C.2.b. Contacting DFAS

The phone number for contacting DFAS for questions regarding the military annuity of any claimant, whether living or deceased, is 1-866-622-4602, option 2. Notes:
  • Hours of operation for the DFAS Agency Assistance Line are Monday through Friday, from 8:30 a.m. to 4:30 p.m., Eastern Standard Time.
  • This line is busiest on Mondays and the first days of the month.

VI.ii.4.C.2.c. Documenting Contact With DFAS

For each attempt made to secure information from DFAS by telephone, RO personnel must prepare a VA Form 27-0820, Report of General Information, listing the
  • date
  • time
  • contact person, and
  • results of the call.
Note: For security purposes, in order to confirm the identity of the caller, DFAS personnel may, at times, choose to return a call rather than answer questions directly.

VI.ii.4.C.2.d. Contacting DFAS About Non-Routine and SBP Cases

Upon receipt of an inquiry from an RO regarding a non-routine case, such as a break in Survivor Benefit Plan (SBP) entitlement due to remarriage, the DFAS call center forwards the inquiry to its Operations Department, which should respond to the RO within three working days. Important: Be prepared to provide DFAS with the following information when inquiring about an SBP case:
  • the name and Social Security number (SSN) of the
    • deceased Veteran, and
    • widow/widower, and
  • the award period(s) and rate(s).

VI.ii.4.C.2.e. POC for SBP Entitlement Issues

RO personnel should contact the local finance activity’s SBP Issues POC when encountering unresolvable SBP entitlement issues.Reference: For a list of SBP Issues POCs by RO, see the VBA Field Station Points of Contact webpage.

VI.ii.4.C.2.f. RPCs by Service Department

Use the table below to determine which RPC handles the MRP accounts for each service department.
Service DepartmentRPC
  • Army
  • Navy
  • Air Force
  • Space Force, and
  • Marine Corps
Defense Finance and Accounting ServiceU.S. Military Retired Pay8899 E 56th StIndianapolis IN 46249-1200Telephone number: (866) 622-4602, option 2Fax number: (800) 469-6559
  • Coast Guard
  • National Oceanic and Atmospheric Administration, and
  • Public Health Service
Commanding Officer (RAS)U. S. Coast GuardPersonnel Service Center444 SE Quincy StTopeka KS 66683-3591 Telephone number: (866) 772-8724Fax number: (785) 339-3770

3. Exchange of Information Between VA and the RPCs

Introduction

This topic contains information on the exchange of information between VA and the RPCs, including
  • automatic transmission of VA award-adjustment data to RPCs, and
  • how RPCs notify ROs of necessary award adjustments.

Change Date

March 12, 2018

VI.ii.4.C.3.a. Automatic Transmission of VA Award-Adjustment Data to RPCs

Whenever an RO adjusts an award, Department of Veterans Affairs (VA) computer systems automatically transmit data regarding the award adjustment to the appropriate RPC, regardless of the number of prior periods on the award.Reference: For more information on identifying an award requiring a waiver of MRP, see M21-1, Part VI, Subpart ii, 4.B.1.a.

VI.ii.4.C.3.b. How RPCs Notify ROs of Necessary Award Adjustments

RPCs use letters and forms to advise ROs of any necessary award adjustments. Note: RPCs do not return copies of VA Form 21-651,Election of Compensation in Lieu of Retired Pay or Waiver of Retired Pay to Secure Compensation From Department of Veterans Affairs (38 U.S.C. 5304(a)-5305).

4. Handling Legislative Increases in Compensation

Introduction

This topic contains information on handling legislative increases in compensation, including
  • service department responsibility with regard to a legislative increase in compensation
  • how RPCs are notified of award adjustments necessitated by a legislative increase in compensation
  • determining who has responsibility for recouping an overpayment resulting from a legislative increase
  • handling cases that appear on the NRPS VA Legislative Increase Nonreceipt Report
  • actions to take when VA has awarded compensation without obtaining a waiver, and
  • determining the effective date for an award adjustment that is necessitated by a legislative increase in compensation.

Change Date

November 15, 2021

VI.ii.4.C.4.a. Service Department Responsibility With Regard to a Legislative Increase in Compensation

Service departments
  • are on notice as to legislative increases in compensation rates, and
  • have no authority to pay a Veteran an amount that exceeds the amount of MRP minus the new amount of compensation payable to the Veteran based on the legislative increase.
Note: This restriction applies to traditional payments of MRP. Concurrent Retirement and Disability Payments (CRDP) and Combat-Related Special Compensation (CRSC) are paid under separate laws. References: For additional information on

VI.ii.4.C.4.b. How RPCs Are Notified of Award Adjustments Necessitated by a Legislative Increase in Compensation

Most award adjustments that are necessitated by a legislative increase in VA benefits occur automatically. When such adjustments occur, VA’s computer systems transmit data concerning the adjustment to the appropriate RPC. Upon receipt of the data, RPCs update records and make any adjustments to MRP that are necessitated by the increase in VA benefits.

VI.ii.4.C.4.c. Determining Who Has Responsibility for Recouping an Overpayment Resulting From a Legislative Increase

To avoid overpayments by either a service department or VA, ROs must make every effort to process the respective cost-of-living adjustment end product (EP) when it appears in inventory. Use the table below to determine who is responsible for recouping an overpayment resulting from a legislative increase.
If VA notifies the RPC of the rate change …Then the responsibility for recouping any overpayment falls on …
within 90 days or less of the date the legislation is signedthe RPC.
more than 90 days after the date the legislation is signedVA.
Note: An Office of General Counsel (OGC) memorandum for file, dated September 18, 1972, determined that 38 U.S.C. 3104(a) (now 38 U.S.C. 5304(a)), prohibiting concurrent payment of VA benefits and MRP, does not preclude the application of 38 U.S.C. 3012(b)(10) (now 38 U.S.C. 5112(b)(10)), which permits a reduction of VA benefits effective the first of the month following the month for which VA last paid the Veteran if the previous payment was solely VA error. That OGC memorandum was found to be consistent with the decision in VAOPGCPREC 2-1990.

VI.ii.4.C.4.d. Handling Cases That Appear on the NRPS VA Legislative Increase Nonreceipt Report

Forty-five days after automatic award adjustments to reflect a legislative increase in VA benefits should have taken place, RPCs generate an NRPS VA Legislative Increase Nonreceipt Report.
  • The report identifies Veterans on an RPC’s retirement pay rolls for whom the RPC received no notice (through the data exchange described in M21-1, Part VI, Subpart ii, 4.C.4.b or through other means) of an award adjustment based on a legislative increase in benefits.
  • RPCs route the reports to the station of origination (SOO) through Compensation Service (212).
Upon receipt of an NRPS VA Legislative Increase Nonreceipt Report,
  • compare the data it contains against the corporate record and eFolder, if necessary, to determine whether
    • a proper award adjustment (automatic or otherwise) was made to reflect the legislative increase in benefits, and
    • a waiver of MRP is of record, and
  • follow the instructions in the table below.
If ...Then ...
no waiver of MRP is of recordfollow the instructions in M21-1, Part VI, Subpart ii, 4.C.4.e.
  • a waiver of MRP is of record
  • the retired pay indicator has not been activated in the corporate record, and
  • an award adjustment to reflect the legislative increase in benefits
    • has already been made, or
    • is not necessary.
    • Note: An award adjustment to reflect a legislative increase in benefits is not necessary if, for example, the only benefits a Veteran is receiving are benefits under a static, statutory “q” award for arrested tuberculosis.
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.B.1.c for activating the retired pay indicator, and
  • process an award that repeats existing award lines for the purpose of electronically notifying the Veteran’s RPC of the award adjustment.
  • a waiver of MRP is of record
  • the retired pay indicator has not been activated in the corporate record, and
  • a legislative increase in benefits is in order but no corresponding award adjustment has been made
  • follow the instructions in M21-1, Part VI, Subpart ii, 4.B.1.c for activating the retired pay indicator, and
  • adjust the Veteran’s award to reflect the legislative increase in benefits.
Note: The generation of EP 692 – COLA Adjustment should have already alerted the SOO that automatic adjustment of the Veteran’s award had failed. Reference: Follow the instructions in M21-1, Part VI, Subpart ii, 4.C.4.f for determining the proper effective date for the increase in benefits.
  • the retired pay indicator has been activated in the corporate record, and
  • a legislative increase in benefits is in order but no corresponding award adjustment has been made
adjust the Veteran’s award to reflect the legislative increase in benefits. Note: The generation of EP 692 – COLA Adjustment should have already alerted the SOO that automatic adjustment of the Veteran’s award had failed. Reference: Follow the instructions in M21-1, Part VI, Subpart ii, 4.C.4.f for determining the proper effective date for the increase in benefits.
  • the retired pay indicator has been activated in the corporate record, and
  • an adjustment to effect the legislative increase was authorized before the retired pay cutoff date/time of the second month following the month of the legislative increase
Example: An award authorized before the February 1st cutoff date/time for a preceding December 1st legislative increase.
  • prepare another award repeating existing award lines for the purpose of electronically notifying the Veteran’s RPC of the award adjustment, and
  • check to make sure the Veteran’s SSN, as recorded in the corporate record, is correct.
the Veteran’s award has been discontinued
  • notify the Veteran’s RPC of the discontinuance and the reason for it, and
  • furnish the Veteran’s SSN with the notification.
Note: If the Veteran’s award was discontinued due to the Veteran’s death, and a copy of the corresponding death certificate is of record, send a copy to the Veteran’s RPC.

VI.ii.4.C.4.e. Actions to Take When VA Has Awarded Compensation Without Obtaining a Waiver

Occasionally, review of the NRPS VA Legislative Increase Nonreceipt Report referenced in M21-1, Part VI, Subpart ii, 4.C.4.d, will reveal a case in which VA awarded compensation to a Veteran without first obtaining a waiver. When this occurs,Upon receipt of the signed VA Form 21-651 or expiration of the 65-day response period,
  • adjust or discontinue the Veteran’s award, as appropriate, and
  • notify the RPC of the action taken.
Important:
  • If the Veteran did not complete and return VA Form 21-651, notify the RPC of this fact, as well.
  • Per 38 CFR 3.750(c), a Veteran’s application for VA benefits on any of the following forms constitutes an election of VA benefits or a waiver of MRP in the absence of a specific statement to the contrary:
  • VA discontinued the use of VA Form 21-526 on February 19, 2019, and VA Form 21-526c on May 1, 2019. Waivers/elections Veterans made on forms prior to the date of discontinuance remain valid.
  • A waiver of MRP is valid even if the Veteran signed it before beginning receipt of MRP.
Reference: For more information on discontinued forms, see M21-1, Part II, Subpart i, 2.B.4.e.

VI.ii.4.C.4.f. Determining the Effective Date for an Award Adjustment That Is Necessitated by a Legislative Increase in Compensation

Use the table below to determine the effective date for an award adjustment that is necessitated by a legislative increase in benefits.
If the adjusted award is authorized …Then the effective date of the adjustment is …
before the retired pay cutoff date/time of the second month after the month of the legislative increase Example: An award that is authorized before the February retired pay cutoff date/time for a preceding December 1st legislative increase. the date of the legislative increase.Note: There would be no need to establish a withholding for MRP in this situation.
after the retired pay cutoff date/time of the second month after the month of the legislative increase Example: An award authorized after the February retired pay cutoff date/time for a preceding December 1st legislative increase. determined under the provisions of M21-1, Part VI, Subpart ii, 4.B.2.
Examples: The retired pay cutoff date for February 2014, as shown on Compensation Service’s online calendar, was February 12, 2014. (Compensation Service added cutoff times to the calendar starting March 2016.)
  • If an award promulgating the December 1, 2013, legislative increase is authorized on February 8, 2014, the proper effective date for the increase would be December 1, 2013.
  • If an award promulgating the December 1, 2013, legislative increase is authorized February 19, 2014, the proper effective date of the increase would be March 1, 2014. (It would also be necessary, in this case, to establish a withholding for MRP for the period December 1, 2013, to March 1, 2014.)
Reference: For more information on determining the cutoff date/time for authorizing awards affected by a Veteran’s receipt of MRP, see M21-1, Part VI, Subpart ii, 4.B.2.

5. Handling Errors and Discrepancies Involving the Payment of VA Benefits to Veterans That Are Eligible for MRP


Introduction

This topic contains instructions for handling errors and discrepancies involving the payment of VA benefits to Veterans that are eligible for MRP, including
  • how RPCs handle a VA error in the assignment of an effective date
  • actions to take upon receipt of notice from an RPC of a VA error in the assignment of an effective date, and
  • RO action upon discovery of an error in the assignment of an effective date.

Change Date

May 27, 2026

VI.ii.4.C.5.a. How RPCs Handle a VA Error in the Assignment of an Effective Date

If an RPC identifies a VA award action with an effective date of payment or increase other than the date authorized under M21-1, Part VI, Subpart ii, 4.B.2., the RPC
  • effects an offset from
    • the first day of the current month if the award action was authorized prior to the retired pay cut-off date/time posted on Compensation Service’s online calendar, or
    • the first day of the following month if the award action was authorized after the retired pay cut-off date/time posted on Compensation Service’s online calendar, and
    • notifies the SOO by letter.

VI.ii.4.C.5.b. Actions to Take Upon Receipt of Notice From an RPC of a VA Error in the Assignment of an Effective Date

SOOs must take the actions described in the table below upon receipt of the notice from an RPC that is referenced in M21-1, Part VI, Subpart ii, 4.C.5.a.
StepAction
1Contact the RPC to confirm the date of the offset referenced in M21-1, Part VI, Subpart ii, 4.C.5.a.
2Follow the instructions in the table below.
If the effective date of the payment or increase was …Then …
the same date as the date of the offset of MRP (as confirmed in Step 1)no further action is needed.
after the date of the offset of MRPtake award action to correct the effective date of the payment or increase so that it matches the date of the offset of MRP.
  • notify the Veteran that VA proposes to correct the effective date of the payment or increase so that it matches the date of the offset of MRP, and
  • unless the Veteran responds to the notice of proposed adverse action within 65 days by providing evidence showing the proposed action should not be taken, take award action to correct the effective date as proposed.
Reference: For more information on issuing notice of a proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.
contact Compensation Service’s Military Pay Staff by email (MILPAY.VBACO@VA.GOV) for guidance.

VI.ii.4.C.5.c. RO Action Upon Discovery of an Error in the Assignment of an Effective Date

If an RO discovers an award action with an effective date of payment or increase other than the date authorized under M21-1, Part VI, Subpart ii, 4.B.2, the RO must follow the instructions in M21-1, Part VI, Subpart ii, 4.C.5.b.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part VI, Subpart ii, Chapter 4, Section C (U.S. government work, reproduced for reference). Browse all sections →