M28C.V.B.6 M28C.V.B.6 Direct Reimbursement and Retroactive Induction

a. Authorization of Direct Reimbursement

(Change Date July 2, 2014)

Direct Reimbursement (DR) is appropriate when:

A facility bookstore does not carry required supplies.

A vendor does not accept the government purchase card.

Reimbursement to a claimant for the purchase of supplies or services must be a last resort option and must not be used unless there is no other way to obtain the supplies in a timely manner.

b. Approval Criteria for Direct Reimbursement

(Change Date July 2, 2014)

The Veteran Readiness and Employment (VR&E) case manager must determine the claimant needs the requested item to achieve a rehabilitation goal and should authorize the item before the claimant can obtain it.

To ensure timely delivery of the supplies, the VR&E case manager should receive all requests for reimbursement:

• Within the first two weeks of a course or term, and

In writing, to include email, from the claimant.

VA should not reimburse a claimant who buys supplies without prior VA authorization unless the case manager determines either of the conditions below exists:

The claimant was acting in good faith to obtain the required supplies.

The claimant is participating in an approved retroactive induction plan of services.

The case manager and claimant must discuss the reasons the claimant made the purchase without prior approval. The case manager must document the discussion and the final determination in an electronic case note.

1. Denial of Direct Reimbursement Request

If a request for Direct Reimbursement is denied, the case manager must provide the claimant notification using VR-58, Chapter 31 Adverse Decision Letter. The letter must include VA Form (VAF) 20-0998, Your Rights to Seek Further Review of our Decision.

2. Approval of Direct Reimbursement Request

If a request for Direct Reimbursement is approved, the case manager must follow the steps below for processing a direct reimbursement.

c. Processing a Direct Reimbursement

(Change Date June 18, 2024)

To approve a Direct Reimbursement, the case manager must take the following steps:

Obtain written request for goods and/or services from the claimant. An email or e-VA message satisfies this requirement.

Document justification for the Direct Reimbursement in electronic notes in the claimant’s VR&E record. The justification must explain:

Use of Direct Reimbursement in lieu of direct purchase from the school or bookstore and/or use of a government purchase card.

Purchase of items that were not listed in the claimant’s rehabilitation plan.

Purchase of incidental goods that are not required but are needed by the claimant to complete his or her rehabilitation program.

Generate and send VAF-1905m, Request for and Authorization for Supplies and Direct Reimbursement (Chapter 31 - Veteran Readiness and Employment) to the claimant to return after Sections 1, 2, 3, and 4 (if applicable) on VAF 28-1905m are completed and signed by the claimant. These sections include:

• Claimant’s Name and Address
• VA File Number
• Rehabilitation plan goal
• Name of Item and/or Services and the description, quantity, estimated cost (for government purchase card), actual cost (for direct reimbursement)
• Date the items and/or services received (for direct reimbursement)
• Name and Address of Training Facility or Employer and Training Facility or Employer’s Signature (if applicable)

Claimant’s signature and date.

When the case manager receives the completed VAF 28-1905m from the claimant and is proceeding to process the request the VR-64, Chapter 31 Positive Decision Letter must be sent to the claimant, unless VR-67, Positive Decision Letter-Plan Development was previously sent. The case manager must complete the items in section V of the VAF 28-1905m, which include the following:

• Station Number (Regional Office Number)
• Name of Item and/or services
• Actual amount to be reimbursed for each item or service
• Total amount to be reimbursed

In section VI the Authorizing Certifying Officer (VR&E Officer must concur for incidental goods or services exceeding $2,500 in a 12-month period). Note: The VRC may be the Authorized Certifying Official if cost limits are not exceeded.

Signature who is authorizing the direct reimbursement (Authorizing Certifying Officer)

Date

Section VII will be completed by Support Services Division (SSD).

Create a document file for each claimant in a PDF file.

Name the file using the last name, first name, Direct Reimbursement, date of submission to SSD. (Example: Einstein, Albert, DR, 01-01-20)

Include all supporting documentation in the document file listed below:

• Copy of the Claimant’s Written Request for Direct Reimbursement

Completed VAF 28-1905m (this includes confirmation of items/services received).

Receipts and/or Invoices

Other Supporting Documentation to Justify the Purchase

Send the PDF file to SSD electronically. The local SSD defines the specific method for electronic transmittal such as email, SharePoint, or shared drives.

Direct Reimbursements must be completed via the eMPWR-VA. All payment requests must be submitted electronically to SSD. The method for electronic submission is determined by each local SSD.

VR&E offices are not required to maintain copies of payment documentation, because SSD staff are responsible for uploading the documents to Veterans Benefits Management System (VBMS) after payment is processed.

6.02 Retroactive Induction Criteria and Limitations

(Change Date April 1, 2021)

A retroactive induction is an authorization of payment for tuition, fees, and other verifiable expenses paid by the claimant or by another VA educational program. The authorized benefits in a retroactive induction may include tuition and fees; books and supplies; and subsistence allowance.

a. Criteria for Retroactive Induction

(Change Date August 15, 2013)

In accordance with title 38 of the Code of Federal Regulations (CFR) section 21.282, a program of rehabilitation and assistance may be approved retroactively when all the following conditions are met:

The period for which retroactive induction is requested is within the claimant’s basic period of eligibility or extended eligibility as provided in 38 United States Code (U.S.C.) 3103 and 38 CFR 21.41 through 21.44.

The claimant is entitled to disability compensation during the period for which retroactive induction is requested, or likely would have been if not for active duty status during the previous period.

Upon completion of the initial evaluation, the claimant is determined entitled to VR&E benefits and services.

The Vocational Rehabilitation Counselor (VRC) determines the claimant would have met the criteria of entitlement to VR&E benefits and services in effect for the requested previous period.

The VRC determines the claimant’s training and other rehabilitation services during the previous period were reasonably needed to achieve the goals and objectives identified for the claimant and may be included in the current rehabilitation plan.

A vocational goal is identified and an Individualized Written Rehabilitation Plan (IWRP) or combined IWRP/Individualized Employment Assistance Plan (IEAP) with a DOT code other than 999 is developed.

b. Limitations

(Change Date April 1, 2021)

Retroactive induction is prohibited in the following situations:

The claimant is not found entitled to Chapter 31 benefits and services.

For rehabilitation plans of service consisting solely of Independent Living (IL) services.

During periods of extended evaluation.

IWRP with a Deferred Vocational Goal.

The claimant’s case is in a closed status.

6.03 Retroactive Inductions for a Period Previously Completed via Self-Pay

(Change Date July 2, 2021)

The procedures in this section are applicable when a claimant self-paid for his or her previous education or training approved for retroactive induction.

a. Roles and Responsibilities

1. Claimant

(Change Date October 1, 2020)

The claimant must complete the following activities when requesting a retroactive induction:

Submit a written request that outlines the period for which retroactive induction is requested.

Submit a written justification and a completed VAF 28-1905m, for all goods for which reimbursement is requested.

Provide an itemized receipt with proof of purchase for all goods for which reimbursement is requested.

Provide a course syllabus documenting need of goods for which reimbursement is requested.

Submit a copy of transcripts for the retroactive period.

Provide a degree audit indicating the classes completed during the retroactive period will be accepted as part of the current educational program.

2. Vocational Rehabilitation Counselor

(Change Date May 7, 2021)

The VRC must complete the following activities when determining if a retroactive induction is appropriate:

(a) Verify that the claimant meets the criteria for retroactive induction, as outlined in section 6.02.a of this chapter.

(b) Review transcripts and the degree audit for the training the claimant is requesting retroactive induction to verify that the classes are consistent with and will apply to the claimant’s current vocational goal as indicated on the rehabilitation plan.

(c) Review each term individually with the claimant to determine if the term can be approved for retroactive processing. If, for example, a claimant fails all courses in a term, that term would not be approved for retroactive induction. If a claimant fails some courses, but receives passing grades for others, the entire term can be approved retroactively. If a claimant withdraws from some courses during the term, the standard withdraw procedures must be followed for calculating the subsistence allowance payments and entitlement charges.

(d) Obtain receipts, either directly from the claimant, vendor, or training facility. If receipts are not available, then obtain a letter from the facility or vendor, which identifies the cost of required items at the time training was completed.

(e) Prepare Appendix CX, VR&E Officer Concurrence – Chapter 31 Retroactive Induction, for review and approval by the VR&E Officer. Appendix CX must be included in the VR&E record.

3. VR&E Officer

(Change Date May 7, 2021)

The VR&E Officer must review and concur with or not concur with the retroactive induction request on Appendix CX. The VR&E Officer’s concurrence is required prior to the processing of payment.

b. Completing the Retroactive Induction

(Change Date May 7, 2021)

1. If the VR&E Officer does not concur with the retroactive induction request, the case manager must:

Upload Appendix CX to the claimant’s VR&E record.

Inform the claimant of the decision via VR-58, Chapter 31 Adverse Decision Letter. The letter must include VAF 20-0998.

Place a copy of VR-58 in the claimant’s VR&E record.

Consider any necessary re-evaluation or modifications to the proposed plan in coordination with the claimant.

2. If the VR&E Officer concurs with the retroactive induction request, the case manager must:

Upload Appendix CX to the claimant’s VR&E record.

Inform the claimant of the decision using VR-67, Positive Chapter 31 Decision Letter at Plan Development, or VR-64, Chapter 31 Positive Decision Letter. The letter must include VAF 20-0998.

Place a copy of the letter in the claimant’s VR&E record.

Develop or amend the rehabilitation plan to include an objective for retroactive induction, including the services provided.

Authorize services and assistance consistent with achievement of the claimant’s vocational goal.

For payment of tuition and fees, create an authorization in the Invoice Payment Processing System (IPPS) for the period of training for which the claimant has been approved for retroactive induction. It is important to note VA must be billed only for program costs after the application of:

Any waiver of, or reduction in, tuition and fees.

Any scholarship, or other Federal, State, institutional, or employer-based aid or assistance that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees, with the exception of loans and any funds provided under section 401(b) of the Higher Education Act of 1995 (20 U.S.C. 1070a), such as Pell Grant Funds.

For payment of subsistence allowance, establish subsistence allowance awards based on the Enrollment Manager certification for each of the semesters or terms in the Subsistence Allowance Module for the period covered by the approved retroactive induction plan.

Directly reimburse the claimant for all applicable expenses of books and supplies incurred during the retroactive period.

Refer to section 6.01 of this chapter for information on processing direct reimbursements.

6.04 Retroactive Inductions for a Period Previously Completed Under Chapter 33

(Change Date January 17, 2024)

Effective April 1, 2021, retroactive induction replaced retroactive reimbursement for previous periods of training completed under Chapter 33.

The procedures in this section are specific to retroactive inductions for a period previously completed under Chapter 33. The eligibility criteria and limitations addressed in section 6.02 of this chapter are applicable for these types of retroactive inductions.

A retroactive induction for a period previously completed under Chapter 33 does not require the recoupment of VA benefits that were previously paid in order to process Chapter 31 benefits for the approved retroactive time period. This means that an overpayment of Chapter 33 benefits is not created by VA Education for claimants who qualify for a retroactive induction, except for any kicker payments. Furthermore, a debt may be established for Edith Nourse Science Technology Engineering Math (STEM) Scholarship payments the claimant may have received in certain situations.

The Office of General Counsel (OGC) does not consider this a duplication of benefits if payments authorized under Chapter 31 only include any of the following:

Charges that were not previously paid under Chapter 33.

Charges that were not previously waived by the training facility.

Charges that were not previously paid by grant or scholarship.

To receive the difference in benefits under Chapter 31 and Chapter 33, the claimant must elect a start date for Chapter 31 coverage that includes the period when Chapter 33 benefits were paid.

a. Prior to Veteran Readiness and Employment Officer Approval

1. Claimant

(Change Date January 17, 2024)

The claimant must complete the following activities when requesting a retroactive induction:

Submit a signed copy of VAF 28-10286, Request for Retroactive Induction for a Period Previously Completed Under Chapter 33.

Submit a written justification and a completed VAF 28-1905m, for all goods for which reimbursement is requested.

Provide an itemized receipt with proof of purchase, or an itemized list of items with bank or credit card statements to substantiate cost and proof of purchase for all goods for which reimbursement is requested. The bank or credit card account number must be redacted prior to submission to the VA.

Provide a course syllabus documenting need of goods for which reimbursement is requested.

Submit a copy of transcripts for the retroactive period.

Provide a degree audit indicating the classes completed during the retroactive period will be accepted as part of the current educational program.

2. Vocational Rehabilitation Counselor

(Change Date September 9, 2022)

The VRC may use Appendix CW, VRC Checklist – Retroactive Induction for a Period Previously Completed Under Chapter 33, as a reference to ensure all necessary steps are completed. Prior to the VR&E Officer approving the retroactive induction on Appendix CX, the VRC must follow the steps below.

Explain the benefits the claimant would receive under each program, as outlined in Appendix AX, Chapter 31 and Chapter 33 Benefits Comparison.

Advise the claimant that he or she must elect to use only one of the two benefits, as both cannot be used concurrently.

Verify that the claimant meets the criteria for retroactive induction, as outlined in section 6.02.a of this chapter.

Verify that the claimant is within his or her Chapter 33 delimiting date.

Review Long-Term Solution (LTS) to determine if claimant was receiving kicker payments. If so, the VRC must inform the claimant that Education Service (EDU) will create an overpayment for the retroactive period once the entitlement is moved from Chapter 33 to Chapter 31.

Review LTS to determine if the claimant received or is receiving the STEM Scholarship. If so, the VRC must inform the claimant that EDU may create an overpayment for the STEM funds used if the retroactive induction is pursued. An overpayment may be created when the retroactive induction includes STEM and Ch 33 usage. If the returned months of entitlement under Ch 33 based on the retroactive induction is not enough to offset the money received under STEM, then the claimant will incur a debt. The VRC can identify the approximate STEM overpayment that will be created by viewing the most recent STEM award in the “Work Product History” screen in LTS. Once in the award, the VRC should look at the STEM “funds remaining” listed and subtract this amount from $30,000 since $30,000 is the maximum amount that a claimant can receive under STEM. Claimants may receive up to $30,000 or 9 months of benefits, whichever comes first. If the claimant requests the details of the potential STEM debt, to include what portion of STEM was applied to tuition/fees, books/supplies, and housing allowance, the VRC must email the Buffalo RPO at the address mentioned in section 6.04.c of this chapter and request a STEM financial audit. The Buffalo RPO is the only RPO that handles STEM benefits.

Review VAF 28-10286 with the claimant to ensure that claimant understands that an overpayment for the kicker will be established and an overpayment for STEM may be established, if applicable. VAF 28-10286 must be uploaded to the claimant’s VR&E record once received.

Review LTS to determine if the claimant participated in the Yellow Ribbon program. If so, all procedures detailed in section 6.04.d of this chapter must be followed once the VR&E Officer approves the retroactive induction.

Review transcripts and the degree audit for the training the claimant is requesting retroactive induction to verify that the classes are consistent with and will apply to the claimant’s current vocational goal as indicated on the rehabilitation plan.

Review each term individually with the claimant to determine if the term can be approved by VR&E. If, for example, a claimant fails all courses in a term VR&E would not include that term in the retroactive induction. If a claimant fails some courses, but receives passing grades for others, the entire term can be approved retroactively regarding tuition/fees and allowance monies. If a claimant withdraws from some courses during the term, the standard withdraw procedures must be followed for calculating the subsistence allowance payments and entitlement.

Complete VAF 28-1905m with the claimant if reimbursement on books or supplies is requested.

Complete and send Appendix CX for VR&E Officer review and approval or denial. Approval of annual costs of services, including the retroactive induction, must also be obtained as specified in M28C.IV.C.2.03.b, if applicable.

b. Veteran Readiness and Employment Officer Concurrence of Retroactive Induction

1. Veteran Readiness and Employment Officer Does Not Concur

(Change Date September 9, 2022)

If the VR&E Officer does not concur with the retroactive induction request, the VRC must:

Consider any necessary re-evaluation or modifications to the proposed plan in coordination with the claimant.

Inform the claimant of the decision via VR-58. The letter must include VAF 20-0998.

Upload VR-58 in the claimant’s VR&E record.

Upload Appendix CX to the claimant’s VR&E record.

2. Veteran Readiness and Employment Officer Concurs

(Change Date January 17, 2024)

If the VR&E Officer concurs with the retroactive induction request, the case manager must proceed with the steps detailed below, as applicable:

Upload Appendix CX to the claimant’s VR&E record.

Develop or amend the rehabilitation plan to include an objective for retroactive induction, including services provided.

Use Appendix AH, Retroactive Induction Calculator, to calculate the amount of Chapter 31 entitlement (number of months and days) used during the retroactive period; and the difference in all training costs and monthly allowance benefits, as applicable.

If applicable, provide VAF 28-1905m, and receipts for concurrence.

If the claimant participated in the Yellow Ribbon program, the steps detailed in section 6.04.d of this chapter must also be followed.

If the retroactive induction includes enrollment periods completed under STEM, the case manager must send authorizations to the facility for those periods and pay all required tuition/fees once an invoice(s) is received since EDU may create an overpayment when the retroactive induction incorporates both STEM and Ch 33 usage. The SCO will not, however, terminate the STEM enrollment certifications in Enrollment Manager or recertify under Chapter 31 so the case manager must still obtain the enrollment period information in LTS and use Appendix AH to calculate any housing allowance reimbursements

If the retroactive period begins on or before December 31, 2017, the claimant will be eligible for the uncapped P911SA rate.

If the retroactive induction includes enrollment periods prior to August 1, 2011, VR&E does not have the authority to pay the P911SA rate for those periods. However, the claimant would be eligible for break pay between semesters or terms for all enrollment periods prior to August 1, 2011.

If after completing the calculations on Appendix AH, the results is only the CH31 entitlement will be moved to CH33 and no monetary transactions are required, VR&E Officer concurrence is not required and the case manager may complete the retroactive induction.

If the retroactive induction will include monetary transactions, VR&E Officer’s concurrence is required. Send Appendix AH and a copy of the LTS screens showing Chapter 33 benefits paid to the claimant for the period that is requested for retroactive induction to the VR&E Officer for concurrence.

If applicable, provide VAF 28-1905m and receipts for concurrence.

3. Obtain Veteran Readiness and Employment Officer Concurrence on Retroactive Induction Cost

(Change Date September 9, 2022)

Once the VR&E Officer concurs on the retroactive induction, he or she must then approve the costs associated with the retroactive induction via Appendix AH.

Once the VR&E Officer concurs on Appendix AH, the case manager must:

Notify the respective RPO of the approved retroactive induction, following the procedures detailed in section 6.04.c of this chapter.

Once the RPO sends a confirmation email, manually charge Chapter 31 entitlement used during the retroactive period by updating the GED, as outlined in Appendix DR, Manually Charging Entitlement.

If the claimant is due a reimbursement, follow procedures outlined in section 6.01.c of this chapter to send the payment request electronically to SSD. In addition to the supporting documentation mentioned in section 6.01.c, the payment request must also include the Summary Sheet from Appendix AH and LTS screens showing Chapter 33 benefits paid to the claimant for the period of the requested retroactive induction.

Send VR-64 or VR-67, to include VAF 20-0998, to the claimant.

c. Required Regional Processing Office Contact

(Change Date September 9, 2022)

When a claimant is using or has used another VA education benefit and he or she is now requesting to use Chapter 31 benefits, the RPO of jurisdiction must be notified. This is true regardless of whether a retroactive induction is being approved. The RPO of jurisdiction is associated with the primary address of the facility where the claimant last used his or her VA education benefits. Please see www.benefits.va.gov/gibill/regional_processing.asp for a list of states assigned to each RPO. The Buffalo RPO can be contacted at Ch31.VAVBABUF@va.gov and the Muskogee RPO can be contacted at EDU.VBAMUS@va.gov.

Prior to plan development, the VRC must follow the steps specified in M28C.IV.C.2.03.d for notifying the RPO. After these steps are completed and the retroactive induction has been approved, the case manager must contact the RPO of jurisdiction again via email. The email must contain the following information:

• Claimant’s name,
• VA File Number,
• Effective date for retroactive induction,
• Previous enrollment period(s) under Chapter 33 that are approved for retroactive induction indicated by start and end dates for each period, and

The case manager's contact information.

The email must be included in the claimant’s electronic file.

Based on the email request, the Veterans Claims Examiner (VCE) will:

Terminate each enrollment period included in the retroactive induction (termination of each enrollment period will appear as if debts have been created).

Debt letters for tuition/fees, books/supplies, and month housing allowance will be established in LTS, but will not be sent to the claimant or training facility unless STEM or kicker debts are established.

If a claimant previously received kicker payments:

A debt will be created using Benefits Delivery Network (BDN) and a debt letter will be sent to the claimant.

The authorizing VCE or Senior VCE will notify the case manager when the debt has been created and include a snapshot of the M01 screen showing the 73b debt within an encrypted email.

If a claimant received the STEM scholarship, an overpayment will also be created for these funds as specified in section 6.04.a.2 of this chapter.

d. Yellow Ribbon Program Participants

(Change Date July 2, 2021)

Once the VR&E Officer concurs on Appendix CX, if the claimant participated in the Yellow Ribbon Program, the facility must be reimbursed for the monies the facility contributed toward the cost of tuition and fees.

Authorizations must be sent to the facility in IPPS:

• The facility must only bill VR&E for the portion of the Yellow Ribbon Program that they contributed, and

Any tuition/fees that the claimant contributed beyond the Chapter 33 tuition and fees cap.

Refer to section 6.03.b.2 of this chapter for more information on what VR&E can and cannot pay pertaining to tuition/fees.

The case manager must use Appendix AH to calculate entitlement (number of months and days) for the retroactive period, the difference between allowance monies, books/supplies and equipment, as applicable and then follow the procedures as outlined in sections 6.04.b.2 and 6.04.b.3 of this chapter.

6.05 Retroactive Induction for a Period Previously Completed Under Chapters 30, 35, and 1606

(Change Date September 23, 2022)

Claimants who previously used Chapters 30, 35, and 1606 can also have a retroactive induction approved if the eligibility criteria detailed in 38 CFR 21.282(c) and section 6.02.a of this chapter are met. The specific situation in which a claimant could have used Chapter 35 and have a retroactive induction approved to bring the previous Chapter 35 enrollment period(s) into Chapter 31 is when a claimant is both a dependent and a Veteran.

For example, a claimant used Chapter 35 specialized vocational training since she is the spouse of a Veteran with a 100% SCD rating. However, she also served in the Army and has a SCD rating herself, which makes her eligible to apply for Chapter 31. In this situation, the claimant may have her previously used Chapter 35 enrollment periods approved for a retroactive induction to Chapter 31 if the eligibility criteria in 38 CFR 21.282(c) are met and it is determined that having used Chapter 31 for the previous enrollment periods as opposed to Chapter 35 would be advantageous for the claimant.

a. Important Items to be Aware of When Processing a Retroactive Induction Involving Chapters 30, 35, and 1606

(Change Date September 23, 2022)

Local VR&E staff must be mindful of the items listed below when processing retroactive inductions involving previous periods under Chapters 30, 35, and 1606.

Retroactive inductions involving Chapters 30, 35, and 1606 are processed in the system and do not involve Appendix AH, Retroactive Induction Calculator. Education Service (EDU) will create a debt for the educational allowance received under the other VA education program, which will largely be offset by the retroactive Chapter 31 subsistence allowance award(s) once entered. The key is to have the Chapter 31 subsistence allowance award(s) for the retroactive period(s) be applied to the EDU debt.

To accomplish this, the procedures detailed below must be followed and open communication between the case manager, local Support Services Division (SSD), and the respective Regional Processing Office (RPO) must be maintained. Local VR&E staff must contact their assigned VR&E Service Field Liaison for any assistance needed with these procedures.

Due to an Office of Financial Management system’s limitation that will be addressed in an upcoming system’s update, it is currently only possible to process a retroactive induction for a period previously completed under Chapters 30, 35, or 1606 when there is at least one Chapter 31 subsistence allowance award already in the Subsistence Allowance Module (SAM). Therefore, if a claimant has not previously used Chapter 31 and he or she is also being approved for a current or future enrollment period(s) under Chapter 31, the Chapter 31 subsistence allowance award must be entered for the current or future enrollment period(s) before any of the retroactive induction enrollment periods can be processed. If the claimant does not have a previous Chapter 31 award in the system and he or she is not being approved for any current or future enrollment period(s), however, the processing of the retroactive induction cannot occur until the system update is complete. VR&E Service will notify local VR&E staff once the system is updated.

Local VR&E staff must refresh the AutoGED for the claimant’s record prior to entering any subsistence allowance award(s) associated with the retroactive induction. If this is not done, an error message will be received in CWINRS and the award(s) will not be processed.

If the case is already in Job Ready (JR) status at the time the retroactive induction is approved, the following steps must be taken to have the case temporarily moved back to Rehabilitation to Employment (RTE) status so that the retroactive subsistence allowance awards can be entered:

Send an e-mail message to CWINRS mailbox: VAVBAWAS/CO/CORP WINRS TICKETS providing the claimant’s name/file number and requesting that an RTE status be added to the case effective the date of the email.

Once the request has been received, Central Office staff will move the case to RTE on a temporary basis effective the date of the email and the case manager will be able to process the retroactive induction subsistence allowance award(s) in SAM.

After the retroactive award(s) has been added to SAM, the case manager must send another email to the CWINRS mailbox requesting that the case be moved back to JR status and the original data restored.

b. Prior to the VR&E Officer's Approval of the Retroactive Induction Involving Chapters 30, 35, and 1606

(Change Date September 23, 2022)

The VRC and claimant must follow the steps outlined in section 6.03.a of this chapter prior to the VR&E Officer approving the retroactive induction on Appendix CX. However, it should be noted that the following appendices, which are separate from those used for retroactive inductions involving Chapter 33, have been developed and must be used to ensure that the specific issues associated with retroactive inductions involving Chapters 30, 35, and 1606 are addressed:

Appendix EF, Chapters 30, 31, 35, and 1606 Benefits Comparison, must be used to assist the claimant in understanding the differences between the Chapter 30, 31, 35, and 1606 programs.

Appendix EE, Claimant Checklist – Retroactive Induction for a Period Previously Completed Under Chapter 30, 35, and 1606, must be used to allow the claimant to officially request a retroactive induction.

Appendix EG, VRC Checklist – Retroactive Induction for a Period Previously Completed Under Chapter 30, 35, and 1606, may be used by VRCs as a resource in completing the retroactive induction process.

When exploring the possibility of a retroactive induction with the claimant, the case manager may email the respective RPO, as specified in section 6.04.c of this chapter, and ask for the amount of debt that would be created if the retroactive induction is approved. This will help the claimant make an informed decision about whether to pursue the retroactive induction. The email to the RPO must include the following information:

• Claimant’s name,
• VA File Number,
• Effective Date for the proposed retroactive induction,
• Specify what previously used VA education benefit VR&E would request for the proposed retroactive induction,
• Previous enrollment periods under the other VA education benefit that would be approved indicated by start and end dates for each period,
• The case manager’s contact information, and

A clear and bolded annotation in the email that this is a proposed retroactive induction that has not been approved yet, and therefore, the previous education benefit must not be terminated until further notice.

If the VR&E Officer approves the retroactive induction on Appendix CX, the case manager must proceed with the steps below. If the VR&E Officer does not approve the retroactive induction, the steps in section 6.04.b.1 of this chapter must be followed.

c. After the VR&E Officer's Approval of the Retroactive Induction Involving Chapters 30, 35, and 1606

(Change Date September 23, 2022)

The following steps must be taken after the retroactive induction involving Chapters 30, 35, or 1606 has been approved by the VR&E Officer on Appendix CX.

Develop or amend the rehabilitation plan to include an objective for the retroactive induction and the services provided.

Send VR-64, Chapter 31 Positive Decision Letter, or VR-67, Positive Decision Letter – Plan Development, to include VAF 20-0998.

Arrange for the termination of any other VA education benefit that was used during the retroactive period by emailing the respective RPO using the address listed in section 6.04.c of this chapter. The email to the RPO must contain the following information:

• Claimant’s name,
• VA File Number,
• Effective Date for retroactive induction,
• Specify what previously used VA education benefit VR&E is requesting for the retroactive induction,
• Previous enrollment periods under the other VA education benefit that are approved for retroactive induction indicated by start and end dates for each period, and

The case manager’s contact information.

Based on this information from the case manager, the RPO’s EDU Service staff will process a termination (STOP) in BDN to establish a debt for the applicable award period(s), resulting in a debt being created for the EDU program. EDU will take the newly created debt in BDN and change it from collection code status “1” to collection code status “2” non-collectible on the M01 screen with a CORR command to prevent the Debt Management Center (DMC) from collecting the debt. The RPO must inform the case manager via email of the debt information once it is established in BDN, to include a BDN screenshot of the M01 screen which shows the amount of debt, collection code, and the date it was created. In addition to emailing the case manager, the RPO must also email the DMC at DMC_TEEMgmt@va.gov with the debt information and request that the DMC not send debt letters pertaining to this debt. The debt letters are not necessary at this time and could cause confusion to the claimant since the Chapter 31 subsistence allowance payments associated with the retroactive induction will be applied to the debt as stated in a step below.

After this occurs, the case manager must:

Email the School Certifying Official (SCO) informing the facility of the claimant’s approved retroactive induction and switch to Chapter 31.

The email must inform the SCO to not terminate any past enrollment certifications from the other EDU program(s) or recertify under Chapter 31 for the retroactive period.

Inform the local SSD of the BDN debt information provided by the RPO, including the claimant’s file number, debt type, debt amount, collection code, and the RPO of jurisdiction point of contact that created the debt.

Contact the assigned VR&E Service Field Liaison to access past enrollment certifications in Enrollment Manager and enter the Chapter 31 award(s) in SAM. The VR&E Field Liaison must be provided the following information: claimant’s file number, approved enrollment periods for the retroactive induction, and the facility code(s) of the facility/facilities associated with the retroactive induction (if possible). While most EDU facilities use Enrollment Manager, there are a few that do not. If there are no past enrollment certifications in Enrollment Manager, the VR&E Service field liaison must contact the RPO of jurisdiction to request the certifications.

If a debt remains after the Chapter 31 subsistence allowance awards are processed and applied to the debt, the RPO SSD will place the debt back in “collectible” status and notify the DMC at DMC_TEEMgmt@va.gov to start the collection process. The DMC will subsequently release the debt letters to the claimant once the debt is no longer in suspense. If the case manager needs to know the amount of debt that remains after the Chapter 31 subsistence allowance awards have been applied, he or she may ask local SSD to determine the “remaining deduction” by going into the DMC system. The claimant will ultimately be responsible for working with the DMC to set-up a payment arrangement.

Authorize services and assistance consistent with the achievement of the claimant’s vocational goal, which may include tuition/fees and books/supplies.

For payment of tuition and fees, create an authorization in the Invoice Payment Processing System for the period of training for which the claimant has been approved for retroactive induction. The case manager and claimant will need to work with the facility to ensure the facility reimburses the claimant for any overages for tuition/fees. It is important to note VA must be billed only for program costs after the application of:

Any waiver of, or reduction in, tuition and fees.

Any scholarship, or other Federal, State, institutional, or employer-based aid or assistance that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees, with the exception of loans and any funds provided under section 401(b) of the Higher Education Act of 1995 (20 U.S.C. 1070a), such as Pell Grant Funds.

For payment of subsistence allowance, establish subsistence allowance awards, based on the Enrollment Manager certification for each of the enrollment periods, in the Subsistence Allowance Module (SAM) for the period covered by the approved retroactive induction plan.

Directly reimburse the claimant for all applicable out-of-pocket expenses he or she incurred during the retroactive period that were required for the program, as applicable, if the claimant submits a completed VAF 28-1905m and provides itemized receipts.

Enter reimbursement information correctly in CWINRS. This information must reflect the requested dates for retroactive induction and invoice information. Refer to the CWINRS User Guide, Chapter 7.5.2, for instructions on entering direct reimbursement information in the Add/Edit/View Direct Reimbursement Payment screen.

Send all documentation related to the direct reimbursement, to include VAF 28-1905m and receipts to the Regional Office (RO) SSD for processing, as outlined in sections 6.01.c.5 and 6.01.c.6 of this chapter.

6.06 Impact of the New Interpretation of the 48-Month Rule on Chapter 31 Claims

(Change Date July 2, 2021)

Due to Education Service's changes in the interpretation of the 48-month rule, a retroactive induction may now be advantageous to the claimant. As such, the new interpretation of the 48-month rule may impact open claims. Therefore, it is necessary to review open claims to determine if the claimant can benefit from the new interpretation.

a. Open Chapter 31 Cases

(Change Date September 23, 2022)

If retroactive processing was not previously completed and the case is currently in Evaluation and Planning (EP), Rehabilitation To the point of Employability (RTE), Interrupted (INT), or Job Ready (JR) status, the case manager must review the case to determine whether the claimant meets the criteria for a retroactive induction, as outlined in section 6.02.a of this chapter. If the claimant meets the criteria, all procedures in section 6.04 of this chapter must be followed for retroactive inductions involving previous periods under Chapter 33 and the procedures in section 6.05 of this chapter must be followed for retroactive inductions involving previous periods under Chapters 30, 35, and 1606.

b. Open Chapter 31 Cases Where a Retroactive Reimbursement Was Previously Completed for Only One Term

(Change Date July 2, 2021)

If the claimant was previously provided a retroactive reimbursement for only one-term, but the case is still in an active status, including EP, RTE, JR, or INT, the following steps must be taken:

Maintain the current case status unless it is appropriate for the status to be changed.

Schedule a meeting with the claimant to determine if the claimant meets the criteria in section 6.02.a of this chapter to have additional terms be retroactively approved.

If additional terms can be approved, follow all applicable procedures in section 6.04 of this chapter.

If additional terms cannot be approved, follow the procedures in section 6.07 of this chapter.

c. Open Case Where the Claimant Has an Updated Certification of Eligibility Reflecting Chapter 33 Entitlement

(Change Date July 29, 2022)

Due to the changes in the interpretation of the 48-month rule, a claimant may now have an updated Certificate of Eligibility (COE) showing months of entitlement under Chapter 33. If a clamant has an updated COE and his or her case is in EP, RTE, INT, or JR, the case manager must:

Review the claimant’s VR&E record to determine if the claimant was paid the Chapter 31 SA rate.

Evaluate the case to determine if the claimant meets criteria for retroactive induction as outlined in section 6.02.a of this chapter.

Follow all applicable procedures in sections 6.04 of this chapter.

If the claimant does not meet the criteria for retroactive induction, follow procedures outlined in section 6.04.b.1 of this chapter.

d. Cases Closed Between April 1, 2021 and March 11, 2022

(Change Date June 6, 2022)

Refer to Appendix ED, Retroactive Induction for Cases Closed Between 4/1/21 and 3/11/22, for procedures on how to process these cases.

e. Cases Where Retroactive Induction Was Determined Beneficial and the Claimant Does Not Pursue Prior to Closure

(Change Date January 17, 2024)

For all cases that are in an open status on or after April 1, 2021, where there is documentation in the VR&E record that a retroactive induction was determined beneficial to the claimant but the claimant did not pursue the retroactive induction by completing and returning VAF 28-10286 or Appendix EE, depending on which VA education benefit was previously used, within 60 calendar days, the claimant may later pursue the retroactive induction during the course of their program, as long as it is prior to case closure. However, if the claimant's case is closed, either via discontinuance or rehabilitation, and the claimant reapplies, he or she must meet entitlement criteria at the time of reapplication prior to the consideration of a retroactive induction.

A claimant may not initiate a new claim or request a closed claim to be reopened solely for the purpose of retroactive induction.

VR&E does not have the authority to allow retroactive induction for closed cases; therefore, the only time it is permissible to process a retroactive induction for a closed case, meaning a case in Rehabilitation (REH) or Discontinued (DIS) status is when:

• There is documented proof that the claimant completed and returned VAF 28-10286 or Appendix EE while he or she was actively participating in a Chapter 31 rehabilitation plan, and

VR&E did not process the retroactive induction.

If the claimant later wants to pursue a retroactive induction after his or case is closed and the criteria above are met, the case manager must schedule an appointment with the claimant. During the appointment, the case manager must determine if the claimant meets the eligibility criteria for retroactive induction detailed in section 6.02.a of this chapter. In this situation, the claimant does not need to currently meet entitlement criteria to VR&E but must meet all other eligibility criteria for a retroactive induction.

If the claimant is eligible for a retroactive induction, the following steps must be taken:

Follow all applicable procedures in section 6.04 or section 6.05 of this chapter depending on which VA education benefit was previously used.

Reactivate the case, but the case must remain in the REH or DIS status while the retroactive approval is processed.

The rehabilitation plan must not be redeveloped.

Document all retroactive services that have been approved in an electronic case note.

Inform the claimant via VR-64, to include VAF 20-0998.

If the claimant is determined not eligible for a retroactive induction, the following steps must be taken:

Send VR-58 to include VAF 20-0998.

Document reason for the denial in an electronic case note.

6.07 Movement of Entitlement for Previously Completed Retroactive Reimbursements

(Change Date September 24, 2021)

The case manager must identify cases where a retroactive reimbursement was previously completed. The claimant may initiate this action or the case manager may identify cases based on a number of resources, as outlined below:

RO of jurisdiction kept a list of claimants who received a retroactive reimbursement.

Review of the Retro-Reimbursements by District Spreadsheet which is a list of retroactive reimbursements that were completed during Fiscal Year (FY) 2015 through FY 2019 that were reported to VR&E Central Office.

Review of 06A Payments-by-District Spreadsheet which is a list of out-of-system reimbursements completed from January 1, 2019 to September 14, 2021.

For claimants who previously received a retroactive reimbursement, the following actions must be completed to properly move entitlement from Chapter 33 to Chapter 31. This will allow Chapter 33 entitlement to be returned to the claimant.

a. Factors to Consider Prior to Moving Entitlement

(Change Date September 24, 2021)

The case manager must consider the following when reviewing all cases where a retroactive reimbursement was previously completed:

Determine if the claimant is within his or her delimitating date for Chapter 33. If not, there is no need to move the entitlement since the claimant will not be able to use it.

If the claimant is determined to only have an Employment Handicap, the total period for which a claimant may receive a program of rehabilitation under CH31 alone may not exceed 48 months.

If the claimant received kicker payments, the case manager must reach out to the claimant to determine if he or she wants entitlement moved because an overpayment will be created for the amount of the kicker for the retroactive period.

The claimant must provide confirmation in writing (email preferred) or an Electronic Virtual Assistant (e-VA) correspondence, regarding the claimant’s decision on whether or not to move his or her entitlement and that he or she understands an overpayment will be created for kicker payments, if applicable. This confirmation must be uploaded to the claimant’s electronic case file.

For closed cases, reactivate the case but do not move the case from the current case status. Entitlement must only be moved for the periods previously completed retroactive reimbursements.

b. Calculating Entitlement for a Previously Completed Retroactive Reimbursement

(Change Date September 9, 2022)

To calculate the entitlement the case manager must:

Determine the periods of enrollment covered under the previous retroactive reimbursement based on documentation in the VR&E electronic file.

Calculate the amount of Chapter 31 entitlement (number of months and days) used under the previous retroactive reimbursement using Appendix AH.

Obtain VR&E Officer concurrence on Appendix AH for the calculation of entitlement used for the previous retroactive reimbursement period.

Send an email to the RPO of jurisdiction to request that the retroactive period(s) previously approved be deducted from Chapter 33 if the claimant is within his or her Chapter 33 delimiting date. Follow the guidance in section 6.04.c of this chapter detailing how to contact an RPO. In this situation, the email must also specify that this is for a previously completed retroactive reimbursement.

Update the GED to manually add and then charge entitlement under Chapter 31, as outlined section 6.04.b.3 of this chapter.

Send VR-76, Movement of Entitlement Notification, to the claimant, to include VAF 20-0998.

The email to the RPO; Appendix AH; and VR-76 must be uploaded to the claimant’s electronic record.