M21-1 Manual  /  Part X, Subpart ii, Chapter 5, Section B

Severance of Service Connection (SC)

M21-1, Part X, Subpart ii, Chapter 5, Section B

Overview

In This Section

This section contains the following topics:
TopicTopic Name
1General Information on Severance of SC
2Handling Severance of SC
3Handling Increased Evaluation or Secondary SC Associated With Severance Decisions

1. General Information on Severance of SC

Introduction

This topic contains general information about severance of SC, such as
  • applying 38 CFR 3.105(a) and 38 CFR 3.105(d)
  • due to diagnosis change, and
  • severance of clearly illegal grants of SC.

Change Date

May 13, 2026

X.ii.5.B.1.a. Applying 38 CFR 3.105(a) and 38 CFR 3.105(d)

The concept of severance of final and binding service connection (SC) determinations derives from 38 U.S.C. 5109A and is implemented in 38 CFR 3.105.Exception: When the Department of Veterans Affairs (VA) determines that there is no legal entitlement for a previous award of VA benefits (when SC is clearly illegal), the Department of Veterans Affairs (VA) is not required to establish that the original decision was clearly and unmistakably erroneous per 38 CFR 3.105(d) in order to sever SC.Important: The severance standards of 38 CFR 3.105(d) require VA to show that SC cannot be granted or maintained under any theory of entitlement, whether raised by the claimant or reasonably raised by the record, in order for severance of SC to be proper. References: For more information on
  • the ten-year protection even when SC is erroneous, see M21-1, Part X, Subpart ii, 1.B.2
  • due process to sever SC when legal entitlement does not exist, see M21-1, Part X, Subpart ii, 5.B.1.c
  • evidence developed subsequent to an award of SC, see
    • Stallworth v. Nicholson, 20 Vet.App. 482 (2006), and
    • Daniels v. Gober, 10 Vet.App. 474 (1997)
  • severance of SC when there is no legal entitlement for a previous award of VA benefits, see Allen and Key v. Nicholson, 21 Vet. App. 54 (2007), and
  • addressing alternative theories of entitlement before severing SC, including whether SC could be maintained based on an unresolved theory of SC, see McCauley v. McDonough, 37 Vet.App. 188 (2024).

X.ii.5.B.1.b. Severing SC Due to Diagnosis Change

A change in diagnosis may be accepted as a basis for severance if there is certification that the diagnosis on which SC was based was clearly erroneous under 38 CFR 3.105(d).

X.ii.5.B.1.c. Severance of Clearly Illegal Grants of SC

When an award of SC was clearly illegal (when there is no legal entitlement)Example: Sever SC as clearly illegal when the beneficiary had no qualifying active duty to establish basic eligibility to VA benefits.Reference: For more information on lack of legal entitlement, see
  • Allen and Key v. Nicholson, 21 Vet.App. 54 (2007), and
  • Valiao v. Principi, 17 Vet.App. 229 (2003).

2. Handling Severance of SC

Introduction

This topic contains procedures for handling severance of SC, such as
  • the process for severance of SC
  • handling multiple issues in cases involving severance of SC
  • preparing the final rating decision Narrative in cases involving severance of SC
  • preparing the final rating decision Codesheet in cases involving severance of SC
  • handling severance proposals upon the Veteran’s death, and
  • severing SC for a psychosis.

Change Date

May 13, 2026

X.ii.5.B.2.a. Process for Severance of SC

The table below describes the process to sever SC.
StageWho Is ResponsibleDescription
1Rating Activity
2Designated ReviewerIs the rating approved?
  • If yes,
    • approves the rating via DRA functionality, and
    • returns the rating to the rating activity for finalization.
  • If no,
    • documents any disagreement via DRA functionality, and
    • returns the rating to the rating activity for correction.
3Rating ActivityWas the rating approved by the designated reviewer?
  • If yes, finalizes the approved rating.
  • If no,
    • revises the rating as required, to reflect the current evaluation of all service-connected (SC) disabilities, disposing of all other matters at issue, and
    • returns the rating to the designated reviewer (Stage 2).
4Authorization ActivityProcesses the rating decision and adds the Clear and Unmistakable Error corporate flash as applicable in VBMS.
References: For more information on

X.ii.5.B.2.b. Handling Multiple Issues in Cases Involving Severance of SC

If a decision involves both severance and reduced evaluations, prepare a single rating decision identifying both issues.Notify the Veteran concerning both the reduction and the proposed severance.Reference: For more information on notifying the Veteran of severance of SC, see M21-1, Part X, Subpart ii, 5.C.

X.ii.5.B.2.c. Preparing the Final Rating Decision Narrative in Cases Involving Severance of SC

A long-form rating decision Narrative is required in final severance decisions. As noted in M21-1, Part X, Subpart ii, 3.D.1.b, if the facts contained in the proposed rating decision were sufficiently discussed and no additional evidence was received, they do not need to be repeated in the final rating decision Narrative.While regulations require that the claimant be notified of the effective dates of entitlement and payment adjustments in running awards, there is no requirement that the rating decision Narrative identify or discuss the effective date for final severance of an SC disability.This guidance differs from the requirements for
  • proposed rating decisions, and
  • final decision notices.
Example: A rating decision proposed to sever SC for migraines based on CUE. The Veteran did not submit any additional evidence, and the due process period expired. In the final rating decision Narrative, the DECISION field reads: Service connection for migraines is severed. Neither the date of the erroneous grant nor the date of the future reduction in payment should be
  • reflected in the decisional issue, or
  • cited/discussed as the effective date of the final severance.
Notes:
  • If VBMS-R prompts for entry of an effective date when completing a final severance decision, manually delete the effective date from the DECISION field in the ISSUE MANAGEMENT tab.
  • When completing a rating decision addressing final severance of SC, the Narrative must address any findings that were favorable to the claimant as detailed in M21-1, Part V, Subpart iv, 1.A.5.f.
  • Ensure that the final rating decision discontinues any and all previously established ancillary benefits derived from the Veteran’s entitlement to SC for the erroneously granted disability (provided the Veteran was properly notified in the proposed rating decision). If the proposed rating decision failed to propose the discontinuance, follow the procedures in M21-1, Part X, Subpart ii, 3.D.
References: For more information on

X.ii.5.B.2.d. Preparing the Final Rating Decision Codesheet in Cases Involving Severance of SC

Generally, and with only limited, noted exceptions, when severing SC due to CUE, update the Codesheet so that it reads how it should have read had no error been made.
  • Include in the combined SC evaluation only those evaluations for disabilities that remain SC.
  • The severed condition should be shown on the Codesheet as an issue for which SC has been denied (if that is the determination that would have been made had the error resulting in severance not occurred).
  • The master record may require manual adjustment to
    • reflect the severed condition’s classification as non-service-connected, and
    • suppress/remove the entry in the TO DATE field associated with the condition’s severance.
These measures will ensure that no retroactive increase or benefit attributable to the severed disability will be awarded after basic entitlement is terminated.Exceptions: Use the table below to properly update the Codesheet when the
  • circumstances of the case involve the specific conditions identified in the table, and
  • resultant overpayment will be attributed to administrative error.
If the necessary rating action involves a ...Then ...
  • complete severance of SC resulting in the discontinuation of all compensation (meaning no SC disabilities or only noncompensable SC disabilities remain), or
  • change in effective date of initial entitlement to SC to a later date (meaning an existing original award line would no longer have a corresponding rating effective date)
for each impacted issue, apply the Clear and Unmistakable Error special issue in VBMS-R with the Non-Recoupable special issue basis to generate a Codesheet that
  • prevents recoupment of any resultant overpayment, and
  • continues payment at the existing rate until the appropriate effective date specified in 38 CFR 3.105(d).
Note: If the authorization activity subsequently disapproves a formal determination of administrative error, the rating activity must process a correction to change the special issue basis from Non-Recoupable to Recoupable.
change in the effective date of initial entitlement to SC to a later date along with a corresponding or subsequent reduction in overall combined evaluationfollow the interim procedures provided in the document titled SOP for CUE Severance Award Processing.
Note: A change in effective date of initial entitlement to SC to a later date is not technically severance of SC, but it is functionally equivalent to severing SC for a finite period of time. Accordingly, the same types of Codesheet procedures are applicable for these scenarios to ensure accurate award processing.References: For more information on

X.ii.5.B.2.e. Handling Severance Proposals Upon the Veteran’s Death

Upon the Veteran’s death, discontinue all action on severance proposals not finalized, unless the severance would affect death benefits.Proposals initiated but not finalized prior to notice of the Veteran’s death will be reconsidered upon receipt of a claim for death benefits. Take into consideration all available new evidence, such as medical reports of last illness, death certificate, and autopsy report, if indicated.When a claim for death benefits is received
  • make a proposal to sever SC, and
  • notify the death benefits claimant of the severance proposal and provide 60 days to submit further evidence, even though the Veteran was given a prior 60-day notice.

X.ii.5.B.2.f. Severing SC for a Psychosis

If SC is severed for a psychosis, make a determination of entitlement under 38 U.S.C. 1702.Reference: For more information on ratings of SC for treatment purposes under 38 U.S.C. 1702, see M21-1, Part XIII, Subpart i, 3.C.


3. Handling Increased Evaluation or Secondary SC Associated With Severance Decisions

Introduction

This topic contains guidance on handling decisions for increased evaluation and/or secondary SC with a co-existing severance determination, such as handling
  • increase and secondary claims for conditions found to require severance, and
  • increases in compensation in cases involving severance of SC.

Change Date

May 13, 2026

X.ii.5.B.3.a. Handling Increase and Secondary Claims for Conditions Found to Require Severance

If review of a claim and the associated evidentiary record reveals that an SC disability was granted in error, so as to require severance under 38 CFR 3.105(d), do not award (for any period of entitlement, and regardless of whether the evidence otherwise supports a favorable decision)
  • an increase in the evaluation of the erroneously granted disability
  • secondary SC for a disability that is the result of, or would not have occurred but for, the erroneously granted disability, or
  • ancillary benefits derived from the Veteran’s entitlement to SC for the erroneously granted disability.
Awarding additional benefits premised on a grant of SC that was fundamentally erroneous at its origin only serves to compound the nature of the underlying error. Under these circumstances, follow the steps in the table below to arrive at a decision.
StepAction
1Ensure that existing development actions are sufficient to support a decision on the issue of increased evaluation, secondary SC, or ancillary benefit entitlement, irrespective of the proposed severance’s final outcome.
2
  • Prepare a rating decision proposing severance of SC in accordance with M21-1, Part X, Subpart ii, 5.B.2.a, and
  • defer a decision on entitlement to
    • increased evaluation, pending the proposed severance’s final outcome
    • secondary SC, or
    • ancillary benefit entitlement.
Note: Ensure that the rating decision proposing severance of SC also proposes discontinuance of any and all previously established ancillary benefits derived from the Veteran’s entitlement to SC for the erroneously granted disability.
3Once the 60-day proposal period has expired, does a review of the evidence indicate that the proposed severance of SC is warranted?
  • If yes, then prepare a final rating decision that
    • severs SC, and
    • denies entitlement to increased evaluation, secondary SC, or ancillary benefit entitlement.
  • If no, then prepare a final rating decision that
    • communicates reconsideration of the previous proposal to sever, and
    • addresses entitlement to increased evaluation, secondary SC, or ancillary benefit entitlement, as substantiated by the facts of record.

X.ii.5.B.3.b. Handling Increases in Compensation in Cases Involving Severance of SC

Award increased compensation if severance of SC is proposed for one or more disabilities but one or more other disabilities have increased in severity.Notify the Veteran concerning
  • the proposed severance action
  • the increased evaluation, and
  • any reduction that will result from the severance action.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part X, Subpart ii, Chapter 5, Section B (U.S. government work, reproduced for reference). Browse all sections →