Section F - Compensation Based on Individual Unemployability (IU) - Updated 12/16/11

Chapter 2 - Rating

Overview
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In this Section
 ·                        This section contains the following topics:   ''' '''
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24.   General Information on IU Claims
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Introduction
 ·                        This topic contains general information on individual unemployability (IU) claims, including
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 ·

 ·      establishing entitlement to increased compensation based on IU

 ·      unemployability vs. unemployed and unemployable, and

 ·      the definition of substantially gainful employment. 
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Change Date
 ·                        December 16, 2011 {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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a.   Establishing Entitlement to Increased Compensation Based on IU
 ·                        To establish entitlement to compensation as if 100 percent disabled based on individual unemployability (IU), a Veteran must be unable to secure or retain employment by reason of service-connected (SC) disability. The Veteran must be unemployable in fact by reason of SC disability and either
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 ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      meet the schedular requirements of 38 CFR 4.16, or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      have an extra-schedular evaluation approved by the Compensation Service (211B).

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      IU is also referred to as total disability based on individual unemployability (TDIU).

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      IU must be established on a factual basis. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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b.   Unemployability vs. Unemployed and Unemployable
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The term unemployability is not synonymous with the terms unemployed and unemployable for the purpose of determining entitlement to increased compensation. A Veteran may be unemployed or unemployable for a variety of reasons.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        A determination as to entitlement to a total evaluation based on unemployability is appropriate only when a Veteran’s unemployability is a result of SC disabilities. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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c.   Definition: Substantially Gainful Employment:
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Substantially gainful employment is defined as employment at which non-disabled individuals earn their livelihood with earnings comparable to the particular occupation in the community where the Veteran resides. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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25.   Evaluating Evidence to Establish Entitlement to IU
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains information on evaluating evidence to establish entitlement to increased compensation based on IU, including
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      general evidence requirements in IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      medical evidence requirements in IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      handling incomplete medical evidence

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      employment history requirements in IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      requesting employment information from employers

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      when to obtain

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     Social Security Administration (SSA) reports in IU claims, and

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     vocational rehabilitation records in IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      identifying reasonably raised claims of IU, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      processing reasonably raised claims of IU. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 15, 2011 {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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a.   General Evidence Requirements in IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        A decision concerning entitlement to an IU evaluation is based on a review of all available evidence, which should be sufficient to evaluate both the Veteran’s
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      current degree of disability, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      employment status.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Forward a VA Form 21-8940, Veteran’s Application for Increased Compensation based on Unemployability, to the Veteran if a request for IU is

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      expressly raised by the Veteran, or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      reasonably raised by the evidence of record.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Note:   Although a VA Form 21-8940 can be an important development tool, it is not required to render a decision in an IU claim.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Important:   A claim for IU may consist of any written communication indicating a Veteran is unable to work because of SC disability. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 25. Evaluating Evidence to Establish Entitlement to IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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b.   Medical Evidence Requirements in IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        A claim for IU must contain sufficient medical evidence to support a current evaluation of the extent of all the Veteran’s disabilities.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The evidence should reflect the Veteran’s condition within the past 12 months and include, but need not be limited to

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the results of VA examination(s)

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      hospital reports, and/or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      outpatient treatment records. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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c.   Handling Incomplete Medical Evidence
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        If the medical evidence of record is incomplete or inconsistent, schedule a medical examination.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Request special tests only when required for proper evaluation of the degree of severity of relevant disabilities.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on scheduling examinations, see M21-1MR, Part III, Subpart iv, 3.B. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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d.   VA Form 21-8940 Employment History Requirements
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        VA Form 21-8940 requires the Veteran to furnish an employment history for the
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      five-year period preceding the date on which the Veteran claims to have become too disabled to work, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      entire time after the date on which the Veteran claims to have become too disabled to work. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 25. Evaluating Evidence to Establish Entitlement to IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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e.   VA Form 21-4192 – Requesting   Employment Information From Employers
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Request each employer for whom the Veteran worked during the 12-month period prior to the date the Veteran last worked complete and return VA Form 21-4192, Request for Employment Information in Connection with Claim for Disability Benefits. At the same time, send a copy of VA Form 21-4192 to the Veteran.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        If VA Form 21-4192 is not received from the Veteran’s employer(s) within 30 days

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      send a follow-up request to the employer(s) for VA Form 21-4192, allowing an additional 10 days for response, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      notify the Veteran that

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     the employer has failed to respond to VA’s request, and

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     it is ultimately his/her responsibility to obtain this information.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Exception:   Do not send VA Form 21-4192 to the Veteran’s last employer if it has been more than five years since the Veteran last worked.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      If the information on VA Form 21-4192 only states that the Veteran retired, then request additional information as to whether the Veteran’s retirement was by reason of disability. If so, ask the employer to identify the nature of the disability for which the Veteran was retired.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Do not deny an IU claim solely because an employer failed to return a completed VA Form 21-4192. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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f.     When to Obtain SSA Reports in IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Obtain and consider complete copies of the Social Security Administration (SSA) decision (grants and denials) and any supporting medical records when
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      evidence of record is insufficient to award increased compensation based on IU, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran’s claims folder shows that the Veteran has been examined or awarded disability benefits by SSA.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Although decisions by SSA regarding a Veteran’s unemployability are not controlling for VA determinations (and vice versa), SSA’s record may indicate the level of impairment of the Veteran’s SC disability.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      When reviewing SSA records, pay close attention to what disability resulted in a grant of SSA benefits, and whether that disability is one for which service connection has been granted.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;mso-bidi-font-weight:bold;mso-bidi-font-style:italic"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        References:   For more information on

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      requesting information from SSA, see M21-1MR, Part III, Subpart iii, 3.A, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the effect of SSA decisions regarding unemployability on VA determinations, see Murincsak v. Derwinski, 2 Vet.App. 363 (1992). {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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g.     When to Obtain Vocational Rehabilitation Records in IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When a Veteran’s claims folder indicates that he/she was seen by the Vocational Rehabilitation and Employment Service (VR&E), obtain and evaluate any records related to this contact.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The VR&E records may

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      document the Veteran’s participation in a training program, or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      show that training was not feasible or was unsuccessful. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 25. Evaluating Evidence to Establish Entitlement to IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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h.   Identifying Reasonably Raised Claims of IU
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reasonably raised claims for IU may arise in a Veteran’s original claim or in a claim for an increased rating. The Department of Veterans Affairs (VA) must consider a claim for IU if
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran’s SC rating meets the minimum schedular criteria found in 38 CFR 4.16(a), and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      there is evidence of current SC unemployability in the Veteran’s claims folder or under VA control.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on reasonably raised claims for IU, see

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Norris v. West, 12 Vet.App. 413 (1999). {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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i.   Processing Reasonably Raised Claims of IU
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When a reasonably raised claim for IU is identified, and additional evidence is needed
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      rate all other claimed issues that can be decided

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      show the issue of potential IU entitlement as deferred in the rating decision

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      develop the reasonably raised IU issue under the existing end product, which will remain pending until a merits determination of IU entitlement is made, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      send the Veteran the section 5103 notice, enclosing VA Form 21-8940 for completion.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Do not send a Veteran VA Form 21-8940 to complete if

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     the schedular requirements of 38 CFR 4.16 are met, but

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     there is no evidence of SC unemployability.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      A subsequent formal rating decision will be required to dispose of the issue of entitlement to a total evaluation based on IU, even when the Veteran fails to return VA Form 21-8940.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on section 5103 notices, see M21-1MR, Part I, 1.A.2. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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26.   Evaluating Evidence of Self-Employment or Employment With a Tightly Held Corporation
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains information on evaluating evidence of self-employment or employment with a tightly held corporation, including
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      self-employment development

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      deciding whether self-employed individuals are unemployable due to a SC disability

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the definition of a tightly held corporation, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      evaluating evidence showing income from a tightly held corporation. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 8, 2009 {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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a.   Self-Employment Development
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Development to produce the evidence necessary to establish the degree to which SC disability has impaired the Veteran’s ability to engage in self-employment must generally be more extensive than development in cases in which the Veteran worked for others.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Request that the Veteran furnish a statement regarding the

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      types of work performed

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      number of hours worked per week, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      amount of time lost in the previous 12 months due to SC disabilities. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 26. Evaluating Evidence of Self-Employment or Employment With a Tightly Held Corporation, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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b.    Deciding Whether Self-Employed Individuals Are Unemployable Due To SC Disability
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When determining entitlement of self-employed individuals to increased compensation based on IU, consider the relationship between the frequency and the type of service performed by the Veteran for his/her business and the Veteran’s net and gross earnings for the past 12 months.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Consider facts of the case, such as

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      low gross earnings that support a finding of marginal employment, especially when the amount of time lost from work due to SC disablement is taken into account, or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      high gross earnings that indicate the Veteran is capable of engaging in a substantially gainful occupation.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Consider low net earnings in conjunction with gross income.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      The inability to make a profit is not always indicative of the inability to engage in substantially gainful employment. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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c.   Definition:   Tightly Held Corporation
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        A tightly held corporation (or closely held corporation) is usually a family corporation. A corporation bearing the Veteran’s name is usually indicative of a tightly held corporation. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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d.   Evaluating Evidence Showing Income From a Tightly Held Corporation
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Since the Veteran may control the amount of wages paid to himself/herself, do not make a finding of marginal employment solely on the basis of low wages.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Keep in mind that the issue for consideration is whether the frequency and type of service performed by the Veteran equates to substantially gainful employment. Therefore, consider evidence that the Veteran received, or was entitled to receive, other remuneration from the corporation, such as stock dividends or loans, in lieu of wages.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Note:   If the reported wages appear low for the work performed, request a field examination per M21-1MR, Part III, Subpart vi, 8.7, to determine the Veteran’s entitlement to the corporation and corporate earnings. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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27.   Preparing a Rating Decision Addressing the Issue of IU
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains information on preparing a rating decision addressing the issue of IU, including
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      considerations when deciding an IU claim

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the applicability of the concept of average impairment in earning capacity to IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      considering multiple disabilities in IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      entitlement to special monthly compensation (SMC) at the Housebound rate if the IU rating is based on one disability

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      determining the effect of SC disabilities on employability

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the definition of marginal employment

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      reasons for denying IU claims

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      formally denying IU, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the information to include in the rating decision. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 15, 2011 {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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a.   Considerations When Deciding an IU Claim
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When deciding an IU claim, the rating activity must take into account
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran’s current physical and mental condition

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran’s employment status, including

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     the nature of employment, and

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     the reason employment was terminated, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      whether

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     the disability requirements set forth in 38 CFR 4.16 are met, or

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     extra-schedular consideration under 38 CFR 3.321(b)(1) is warranted.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Important:   Do not defer a decision as to the schedular degree of disability pending receipt of evidence sufficient to adjudicate the issue of IU. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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b.   Applicability of the Concept of Average Impairment in Earning Capacity to IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Do not apply the concept of average impairment in earning capacity set forth in 38 CFR 4.1 to determinations regarding IU. This concept applies only to determinations of the percentage of disability for schedular evaluations. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 27. Preparing a Rating Decision Addressing the Issue of IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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c.   Considering Multiple Disabilities in IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Under certain circumstances, multiple disabilities may be considered one disability for the purpose of meeting the requirements of 38 CFR 4.16.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Example:   Consider multiple disabilities incurred while a prisoner of war (POW) and disabilities incurred in action prior to, or subsequent to, former POW status, as one disability.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Rationale:   POW status is a continuation of action against the enemy.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on rating claims involving former POWs, see M21-1MR, Part IV, Subpart ii, 2.E. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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d.   Entitlement to SMC at Housebound Rate if IU Rating Is Based on One Disability
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        A Veteran in receipt of IU benefits may be entitled to special monthly compensation (SMC) at the Housebound rate under 38 U.S.C. 1114(s) if the evidence shows that
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the unemployability is the result of one SC disability, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran has

<p class="BulletText2" style="mso-list:l1 level1 lfo5"> -     additional SC disability(ies) independently rated at least 60 percent disabling, or

<p class="BulletText2" style="mso-list:l1 level1 lfo5"> -     been determined to be permanently Housebound as a result of the SC disability that rendered the Veteran unemployable.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Example:   A Veteran would be entitled to SMC at the Housebound rate if

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      his/her total IU evaluation is based on a 70 percent SC rating for posttraumatic stress disorder, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran has additional SC evaluations for headaches and a back condition that combine to 60 percent.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When granting entitlement to IU, include in the rating decision a determination as to which specific SC disability(ies) render the Veteran unemployable. Do not put entitlement to SMC at issue, however, unless SMC benefits will be granted.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Important:   Entitlement to Housebound benefits under 38 U.S.C. 1114(s) cannot be established if the IU rating is based on multiple disabilities considered one disability under 38 CFR 4.16.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on entitlement to Housebound benefits when the IU rating is based on a single SC disability, see Bradley v. Peake, 22 Vet.App. 280 (2008). <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 27. Preparing a Rating Decision Addressing the Issue of IU, Continued {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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e.   Determining the Effect of SC Disabilities on Employability
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Determine whether the severity of the SC conditions precludes the Veteran from obtaining or retaining substantially gainful employment.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Identify and isolate the effects of extraneous factors, such as

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      age

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      nonservice-connected (NSC) disabilities

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      injuries occurring after military service

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      availability of work, or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      voluntary withdrawal from the labor market.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:   Include sufficient information in the Reasons for Decision section of the rating decision to

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      explain the reasoning behind the decision, either favorable or unfavorable, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      justify the conclusion. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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f.   Definition:    Marginal Employment
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Marginal employment exists
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      when a Veteran’s earned annual income does not exceed the amount established by the U.S. Department of Commerce, U.S. Census Bureau, as the poverty threshold for one person, and/or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      on a facts-found basis, and includes, but is not limited to, employment in a protected environment, such as a family business or sheltered workshop, when earned annual income exceeds the poverty threshold.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Note:   The U.S. Census Bureau revises the poverty thresholds annually. When the revised amounts are published, Veterans Benefits Administration (VBA) revises M21-1MR, Part IV, Subpart ii, 2.F.32.b.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Important:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Do not consider marginal employment as substantially gainful employment.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Do not consider amounts received from participation in the Veterans Health Administration’s (VHA’s) Compensated Work Therapy (CWT) Program as income for IU purposes.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on the poverty threshold, see M21-1MR, Part IV, Subpart ii, 2.F.32. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 27. Preparing a Rating Decision Addressing the Issue of IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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g.   Reasons for Denying IU Claims
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Deny IU claims or reduce compensation that is based on a finding of IU only if the facts demonstrate that the Veteran
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      is not precluded from obtaining gainful employment by reason of SC disability

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      has in fact obtained gainful employment, or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      has failed to cooperate with development, such as failing to return a competed VA Form 21-8940 when requested.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      The fact that a Veteran is participating in a program of rehabilitation does not preclude a finding of IU.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      The fact that a Veteran has completed a program of rehabilitation does not mandate a termination of IU unless sustained employment is also demonstrated.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      When IU is claimed following a completed program of rehabilitation, pay special attention to evidence of program results that indicate the Veteran's ability and willingness to engage in a substantially gainful occupation.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on continuing a total evaluation based on IU, see 38 CFR 3.343(c). <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 27. Preparing a Rating Decision Addressing the Issue of IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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h.   Formally Denying IU
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Formally code the rating decision to indicate denial of IU if
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the Veteran specifically claims entitlement to IU, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      any of the requirements for 38 CFR 4.16 are not met.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Note:   If the Veteran disagrees with the decision, the statement of the case (SOC) should cite the relevant portion of 38 CFR 4.16 as the authority of the denial. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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i.   Information to Include in the Rating Decision
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Use the information below to determine what information to include in the rating decision. <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 27. Preparing a Rating Decision Addressing the Issue of IU, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

<p class="MsoNormal"> <p class="MsoNormal"> <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''

28.   Special Considerations in IU Claims
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains information on special considerations in IU claims, including
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      handling claims requiring CO approval

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      monitoring changes in employability status

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      when monitoring changes in employability status is not required

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext;mso-bidi-font-style:italic"> ·      dispatch and control for the return of VA Form 21-4140, Employment Questionnaire

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext;mso-bidi-font-style:italic"> ·      the action taken

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     when Hines Information Technology Center (ITC) cannot issue VA Form 21-4140,

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     if VA Form 21-4140 or VA Form 21-4140-1 shows continued unemployability, or

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     by the Triage Team if VA Form 21-4140 indicates veteran may be employed

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      determining whether the Veteran has sustained gainful employment,

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      action taken if VA Form 21-4140 is not returned

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      action taken if the Veteran returns a signed VA Form 21-4140 during the due process period and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      failure to cooperate with a required field examination. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 15, 2011 {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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a.   Handling Claims Requiring CO Approval
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Submit any claim to CO (211B) for extra-schedular consideration if the schedular requirements of 38 CFR 4.16 are not met but the evidence of record supports a finding that the Veteran is unemployable by reason of SC disability.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The memorandum prepared to transmit claims folders to CO for review must provide the following:

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      a clear and succinct statement of the facts of the case, including medical and lay evidence of symptoms

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      a discussion of relevant laws and regulations, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      a statement of the issues to be resolved, as well as the recommended evaluation(s). <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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b.   Monitoring Changes in Employability Status
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Changes in the employability of Veterans for whom IU is established is monitored through the
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      annual release of VA Form 21-4140, Employment Questionnaire, via the Benefits Delivery Network (BDN), and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Income Verification Match (IVM).

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        References:   For more information on

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      dispatch and control for the return of VA Form 21-4140, see M21-1MR, Part IV, Subpart ii, 2.F.28.d, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the IVM as it relates to awards based on IU, see M21-1MR, Part X, 9.12. {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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c.   When Monitoring Changes in Employability Status Is Not Required
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Monitoring changes in employability status is not required when the Veteran
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      is 69 years of age or older

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      has been rated totally disabled due to unemployability for a period of 20 continuous years, which protects the evaluation from future reduction under 38 CFR 3.951(b), or

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      is assigned a 100-percent schedular evaluation. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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d.   Dispatch and Control for Return of VA Form 21-4140
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The table below shows the steps involved in the dispatch and control for return of VA Form 21-4140. <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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e.   Action Taken When Hines ITC Cannot Issue VA Form 21-4140
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When Hines ITC cannot issue VA Form 21-4140, the system generates a BDN writeout/VETSNET 800 Series Work Item showing that the employability letter was not sent.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Upon receipt of the BDN writeout/VETSNET 800 Series Work Item, immediately send the Veteran VA Form 21-4140-1, Employment Questionnaire.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        To control for the return of VA Form 21-4140-1, Hines ITC establishes a future diary under reason code 34 for four months from the month in which the writeout or Work Item was issued.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Note:   As a local option, a regional office (RO) may establish a future diary under end product (EP) 310 upon receipt of the BDN writeout/VETSNET 800 Series Work Item. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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f.   Action Taken if VA Form 21-4140 or VA Form 21-4140-1 Shows Continued Unemployability
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When reviewing the completed VA Form 21-4140 or VA Form 21-4140-1, if the Veteran has checked “NO,” indicating he or she has not been employed in the past 12 months (block 3) and signed the form, the Triage Team should
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      file the completed questionnaire in the claims folder, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      clear

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     EP 692, using the PCLR command, and

<p class="BulletText2" style="mso-list:l1 level1 lfo5;tab-stops:list .25in 27.35pt"> -     the future diary established under reason code 34, using the DIAR command.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Note:   Do not refer the claims folder to the rating activity. <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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g.   Action Taken by the Triage Team if VA Form 21-4140 Indicates Veteran May Be Employed
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The table below shows the action taken by the Triage Team if the Veteran checked “YES” for block 3 on VA Form 21-4140 (or VA Form 21-4140-1), or indicated employment during the past 12 months in “Section I - Employment Certification.” <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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h.   Determining Whether the Veteran Has Sustained Gainful Employment
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        When the future diary established under EP 310 matures, the authorization activity will develop to determine whether the Veteran has sustained gainful employment for 12 or more consecutive months.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The table below shows the action to take after development is completed. <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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i.   Action Taken if VA Form 21-4140 Is Not Returned
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The table below shows the action taken if VA Form 21-4140 is not returned.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Notes:

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      Before taking the action shown in the table below, it may be useful to telephone the Veteran and ask him/her to return a signed VA Form 21-4140 by mail, fax, or as an attachment to e-mail.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      If telephone contact is successful, and the Veteran agrees to return the form

<p class="BulletText2" style="mso-list:l1 level1 lfo5"> -     document that fact in the claims folder, and

<p class="BulletText2" style="mso-list:l1 level1 lfo5"> -     allow 10 days for receipt of the form before taking the action shown below.

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      The telephone call itself, however, even with a statement of unemployment from the Veteran, is not a substitute for receipt of VA Form 21-4140 with the Veteran’s signature. <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

<p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''

<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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j.   Action Taken if the Veteran Returns a Signed VA Form 21-4140 During the Due Process Period
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Use the table below to determine the action to take if the Veteran returns a signed VA Form 21-4140 during the due process period. <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 28. Special Considerations in IU Claims, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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k.   Failure to Cooperate With a Required Field Examination
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Follow the steps in the table below when the Veteran fails to participate in a required field examination. <p class="MsoNormal"> <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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29.   Exhibit 1:   Rating Decision Addressing a Veteran’s Failure to Complete a Field Examination
<p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains an example of a rating decision addressing a Veteran’s failure to complete a field examination. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 8, 2009 <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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a.   Rating Decision: Failure to Complete a Field Examination
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        An example of a rating decision addressing a Veteran’s failure to complete a field examination is below. <p class="MsoNormal"> <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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30.   Exhibit 2:   Rating Decision Addressing a Veteran’s   Failure to Respond to a Notice of Proposed Adverse Action After Failure to Complete a Field Examination
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains an example of a rating decision addressing a Veteran’s failure to respond to a notice of proposed adverse action after failure to complete a field examination. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 8, 2009 <p class="MsoNormal"> <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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31.   Exhibit 3:   Rating Decision Addressing the Subsequent Receipt of Evidence That Restores IU After Failure to Complete a Field Examination
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains an example of a rating decision addressing the subsequent receipt of evidence that restores IU after failure to complete a field examination. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 8, 2009 <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 31. Exhibit 3:   Rating Decision Addressing the Subsequent Receipt of Evidence That Restores IU After Failure to Complete a Field Examination, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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a.   Rating Decision: Subsequent Receipt of Evidence That Restores IU
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        An example of a rating decision addressing the subsequent receipt of evidence that restores IU after failure to complete a field examination is below. <p class="MsoNormal"> <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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32.   Exhibit 4:   Poverty Threshold Information
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Introduction
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        This topic contains information on the poverty threshold, including
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      marginal employment based on income below the poverty level, and

<p class="BulletText1" style="mso-list:l6 level1 lfo4"><span style="font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family:  Symbol;color:windowtext"> ·      the poverty threshold for one person. <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">
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Change Date
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        September 15, 2011 {| border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse:collapse;mso-table-layout-alt:fixed;mso-padding-alt: 0in 5.4pt 0in 5.4pt"
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a.   Marginal Employment Based on Income Below the Poverty Threshold
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        38 CFR 4.16(a) provides that marginal employment is generally deemed to exist when a Veteran’s earned income does not exceed the amount established by the U.S. Census Bureau as the average poverty threshold for one person.
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<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        Reference:   For more information on the U.S. Census Bureau’s poverty thresholds, see http://www.census.gov/hhes/www/poverty/data/historical/people.html.

<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> · <p class="ContinuedOnNextPa" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">Continued on next page '''<span style="font-size:16.0pt; mso-bidi-font-size:10.0pt;font-family:"Arial","sans-serif";mso-fareast-font-family: "Times New Roman";color:black;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"> '''
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<p class="MapTitleContinued"> 32. Exhibit 4:   Poverty Threshold Information, Continued <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt">

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b.   Poverty Threshold for One Person
<p class="MsoBlockText" style="margin-left:0in;text-indent:0in;mso-list:l13 level1 lfo2"> ·                        The table below lists the poverty threshold for one person by year. <p class="MsoNormal"> <p class="BlockLine" style="margin-left:0in;mso-border-between:.75pt solid windowtext; mso-padding-between:1.0pt"> <p class="MsoNormal">
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