M21-1 Manual / Part XI, Subpart i, Chapter 1, Section D

General Procedures for Non-Veteran Beneficiary Notice of Death (NOD) Processing

M21-1, Part XI, Subpart i, Chapter 1, Section D

Overview

In This Section

This section contains the topic, “General Information About Non-Veteran Beneficiary NOD Processing.”

1. General Information About Non-Veteran Beneficiary NOD Processing

Introduction

This topic contains general information on the proper procedures for processing a non-Veteran beneficiary NOD, including

criteria for an acceptable NOD
non-Veteran beneficiary NOD processing guidelines
notice requirements associated with NOD processing
language included in a locally generated notice
date of death unknown, and
processing an automated end product (EP) 130 based on a Social Security Administration (SSA) death master file (DMF) match.

Change Date

April 6, 2022

XI.i.1.D.1.a. Criteria for an Acceptable NOD

A notice of death (NOD) is acceptable if it

furnishes sufficient information about the beneficiary to allow a definite identification of the proper record, and
identifies the source of the report of the death.

There is norequirement that an NOD be in writing or originate with the next of kin. Examples:
An NOD may originate with a funeral home or other third party.
A report of contact based on a telephone call is acceptable if the report clearly identifies the deceased beneficiary and the caller.
Exception: If the NOD is a returned check indicating that the beneficiary is deceased, identification of the source of the report of death is not necessary.

XI.i.1.D.1.b. Non-Veteran Beneficiary NOD Processing Guidelines

Upon receipt of an acceptable NOD, follow the steps shown in the chart below.

Step	Action
1	Establish an end product (EP) 130 use the date of the source document as the date of claim, and select the claim label titled PMC Report of death of beneficiary.
2	Determine if there are proceeds on the account. Proceeds are displayed within the AWARD INFORMATION tab or in the RETURN PAYMENTS section of the PAYMENT HISTORY screen in Share. Do proceeds exist? If yes, go to Step 3. If no, go to Step 4.
3	Stop the beneficiary’s award effective the first day of the month of death. After award generation, determine if there is an amount in both proceeds and receivables in the AWARD INFORMATION tab in Corporate. The award generation should create an overpayment that matches the proceeds amount and the proceeds should be cleared upon authorization. If proceeds remain on the account after authorization, contact the finance activity to have the proceeds applied to the debt. Go to Step 5.
4	Stop the beneficiary’s award effective the first day of the month of death.
5	Clear any additional EPs that were pending for the deceased payee. *Exception: Do not clear EPs processed by the fiduciary hubs (hubs). Hub EPs are typically identified with the word Fiduciary* as the first word in the claim label name. The hub will clear these EPs upon completion of fiduciary oversight actions.
6	After authorization, update the deceased beneficiary’s date of death in Share or the Veterans Benefits Management System (VBMS).Note: The authorization activity must ensure that any power of attorney (POA) has been removed from the electronic records.

Note: When the exact date of death is unknown, retrieve information through VBMS using the Social Security Administration (SSA) INQUIRY command. References: For more information on

removing a POA from electronic records, see M21-1, Part I, Subpart i, 2.C.1.f
using the SSA INQUIRY command, see
- the VBMS Core User Guide
- the Share User Guide, and
- M21-1, Part III, Subpart ii, 1.B.3, and
fiduciary claim labels, see M21-4, Appendix C.

XI.i.1.D.1.c. Notice Requirements Associated With NOD Processing

In most cases, VA must issue notice of proposed adverse action (due process) to a beneficiary before reducing or discontinuing benefits. The discontinuation of benefits based on receipt of an acceptable NOD is one of the exceptions to this rule.Although notice of proposed adverse action is not required, contemporaneous notice of the action taken is required if the NOD was obtained

by way of telephone or personal interview
in writing from a third party, or
through computer matching with another Federal agency, such as SSA.

Notes:
Do not enclose VA Form 20-0998, Your Right to Seek Review of Our Decision, when sending a contemporaneous notice that benefits have been discontinued based on the reported death of the beneficiary.
Do not include a summary of laws and regulations.
If the claimant had a power of attorney (POA), the representation is automatically revoked upon the passing of the beneficiary. Do not notify the former POA.
If the claimant has a VA-appointed fiduciary at the time of death, issue the contemporaneous notice to the most recent mailing address of record.
Exception: If a death certificate for the deceased non-Veteran beneficiary is of record, no notification letter is required per 38 CFR 3.103(b)(3)(iii). However, if a probability of accrued benefits exists, VA is required to provide notice per 38 U.S.C. 6303. Such a probability could exist, but is not limited to, when there are withholdings for incompetency that were never released or payments returned for months prior to death.References: For more information on
contemporaneous notice, see M21-1, Part X, Subpart ii, 3.C, and
POA revocation, see
M21-1, Part I, Subpart i, 2.A.6, and
M21-1, Part I, Subpart i, 2.E.

XI.i.1.D.1.d. Language Included in a Locally Generated Notice

Include the language below when notifying a deceased beneficiary’s estate of benefits to which survivors and others may be entitled. You may be entitled to VA benefits. Visit this website for benefits fact sheets: https://benefits.va.gov/BENEFITS/factsheets.asp. You may also request a copy of the fact sheet by contacting us as outlined below.The fact sheets provide information about the following benefits:
Survivors Pension
Dependency and Indemnity Compensation (DIC)
educational benefits under 38 U.S.C. Chapter 35, and
accrued.
A person eligible to receive accrued benefits may be a substitute claimant for an original claimant to process the pending claim, higher-level review, or appeal to completion. You have one year from the date of death to file a claim for accrued benefits. For more information on accrued and substitution, you may visit our website at: http://www.benefits.va.gov/BENEFITS/factsheets/general/Accrued.pdf.Reference: For more information on the requirement to notify the Veteran’s dependents of potential benefits, see 38 U.S.C. 6303.

XI.i.1.D.1.e. Date of Death Unknown

If the fact of death is established, but the date of death is unknown

use the SUSPEND/RESUME button in VBMS
suspend the beneficiary’s award, to include any associated apportionment(s), effective the first of the month following the month for which VA last paid the beneficiary, and
initiate development for the date of death.

Note: Claims processors may use the SSA INQUIRY function in VBMS to obtain a beneficiary’s date of death. References: For more information on
suspending an award, see the VBMS-Awards User Guide, and
the SSA INQUIRY function, see M21-1, Part III, Subpart ii, 1.B.4.a.

XI.i.1.D.1.f. Processing an Automated EP 130 Based on an SSA DMF Match

When a Social Security death master file (DMF) identifies that a non-Veteran beneficiary is deceased, the system will automatically

establish an EP 130 with the claim label PMC-Social Security Match
suspend the award, and
send a notification letter to beneficiary.

Follow Steps 2 through 6 in M21-1, Part XI, Subpart i, 1.D.1.b to process the EP.Reference: For more information on processing a DMF match with SSA, see M21-1, Part, XIV, 2.B.

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