[Federal Register Volume 67, Number 208 (Monday, October 28, 2002)]
[Rules and Regulations]
[Pages 65707-65708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27407]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 3

RIN 2900-AH42


Evidence for Accrued Benefits

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
adjudication regulations dealing with accrued benefits, those benefits 
to which an individual was entitled under existing ratings or 
decisions, or those based on ``evidence in the file at date of death,'' 
which were due and unpaid at the time the individual died. ``Evidence 
in the file at date of death'' is now interpreted as evidence in VA's 
possession on or before the date of the beneficiary's death, even if 
such evidence was not physically located in the VA claims folder on or 
before the date of death. Further, ``evidence necessary to complete the 
application'' for accrued benefits is now interpreted as information 
necessary to establish that the claimant is within the category of 
eligible persons and that circumstances exist which make the claimant 
the specific person entitled to the accrued benefits. These amendments 
reflect our interpretation of the governing statute.

DATES: Effective Date: November 27, 2002.

FOR FURTHER INFORMATION CONTACT: John Bisset, Jr., Consultant, 
Regulations Staff, Compensation and Pension Service, Veterans Benefits 
Administration, 810 Vermont Avenue, NW, Washington, DC 20420, telephone 
(202) 273-7213. This is not a toll-free number.

SUPPLEMENTARY INFORMATION: On March 4, 2002, we published in the 
Federal Register (67 FR 9638-9640) a proposed rule to amend the 
adjudication regulations to define the terms ``evidence in the file at 
date of death'' and ``evidence necessary to complete the application'' 
for the purpose of accrued benefits.
    We are also correcting a technical error we made in the second 
amendatory language instruction of the proposed rule. We proposed to 
revise ``paragraph (d)(4) introductory text,'' (emphasis added) 67 FR 
9640, whereas we meant to revise paragraph (d)(4) in its entirety 
(emphasis added). Despite the error in the amendatory instruction, our 
intent was clearly indicated in the SUPPLEMENTARY INFORMATION 
discussion of the proposed rule. There, we explained that ``38 CFR 
3.1000(d)(4) purports to define `evidence in the file at date of 
death,''' but rather provides that VA may accept identifying, 
corroborating, or verifying information from certain evidence. 67 FR 
9639. Further, we stated that we proposed ``to revise Sec.  
3.1000(d)(4) to define `evidence in the file at the (sic) date of 
death.''' 67 FR 9639. Accordingly, in this final rule, we revise 
paragraph (d)(4) in its entirety to conform with the explanation given 
in the preamble to the proposed rule.
    We requested interested persons to submit comments on or before May 
3, 2002. We received no comments. Based on the rationale set forth in 
the proposed rule, we are adopting the proposed rule as a final rule 
without change.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector of 
$100 million or more in any given year. This final rule will have no 
consequential effect on State, local, or tribal governments.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3520).

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Regulatory Flexibility Act

    The Secretary certifies that the adoption of the final rule will 
not have

[[Page 65708]]

a significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-
612. This final rule does not directly affect any small entities. Only 
VA beneficiaries could be directly affected. Therefore, pursuant to 5 
U.S.C. 605(b), this amendment is exempt from the initial and final 
regulatory flexibility analysis requirements of sections 603 and 604.

Catalog of Federal Domestic Assistance Program Numbers

    The catalog of Federal Domestic Assistance program numbers for 
this final rule are 64.104, 64.105, 64.109, and 64.110.

List of Subjects in 38 CFR Part 3

    Administrative practice and procedure, Claims, Disability benefits, 
Health care, Pensions, Veterans, Vietnam.

    Approved: August 21, 2002.
Anthony J. Principi,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR part 3 is amended 
as follows:

PART 3--ADJUDICATION

Subpart A--Pension, Compensation, and Dependency and Indemnity 
Compensation

    1. The authority citation for part 3, subpart A continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), unless otherwise noted.


    2. Section 3.1000 is amended by revising the section heading, 
paragraph (c)(1), and paragraph (d)(4) , to read as follows:


Sec.  3.1000  Entitlement under 38 U.S.C. 5121 to benefits due and 
unpaid upon death of a beneficiary.

* * * * *
    (c) * * *
    (1) If an application for accrued benefits is incomplete because 
the claimant has not furnished information necessary to establish that 
he or she is within the category of eligible persons under the 
provisions of paragraphs (a)(1) through (a)(4) or paragraph (b) of this 
section and that circumstances exist which make the claimant the 
specific person entitled to payment of all or part of any benefits 
which may have accrued, VA shall notify the claimant:
    (i) Of the type of information required to complete the 
application;
    (ii) That VA will take no further action on the claim unless VA 
receives the required information; and
    (iii) That if VA does not receive the required information within 1 
year of the date of the original VA notification of information 
required, no benefits will be awarded on the basis of that application.
* * * * *
    (d) * * *
    (4) Evidence in the file at date of death means evidence in VA's 
possession on or before the date of the beneficiary's death, even if 
such evidence was not physically located in the VA claims folder on or 
before the date of death.
* * * * *
[FR Doc. 02-27407 Filed 10-25-02; 8:45 am]
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