ࡱ>  !bjbj>> :lTTYDD8L6k d~  !`$%`kkkkkkk$mkp*k|%!!|%|%*k 4?kP8.8.8.|%j  i 8.|%k8.8.Z6_ W!_s%`z\,ikHk\ItF'ItX6_6_It*` |%|%8.|%|%|%|%|%*k*k*F|%|%|%k|%|%|%|%It|%|%|%|%|%|%|%|%|%D d: Section D. Garnishment of Disability Compensation in Lieu of Military Retired Pay to Pay Alimony or Child Support Overview In This SectionThis section contains the following topics: TopicTopic Name1General Information About Garnishments2Processing a Garnishment Order 1. General Information About Garnishments  PRIVATE INFOTYPE="OTHER"  IntroductionThis topic contains general information about garnishments, including definition of garnishment, and legal authority for garnishing Department of Veterans Affairs (VA) benefits.  Change DateApril 10, 2015 a. Definition: Garnishment A garnishment is a legal procedure, authorized by a court order, by which a creditor can collect what a debtor owes by reaching the debtor's property when the debtor does not possess the property. b. Legal Authority for Garnishing VA BenefitsThere is no statutory prohibition against garnishment of military retired pay when the Veteran is in receipt of compensation. Under Public Law 95-30, a Veterans disability compensation may be garnished in order to pay alimony or child support pursuant to a court order only if the Veteran receives disability compensation in lieu of an equal amount of military retired pay, in accordance with a total or partial military retired pay waiver. In these cases, under HYPERLINK "http://www.ecfr.gov/cgi-bin/text-idx?SID=b17f07ac5568d5ce3449de92ec8025b7&node=se5.1.581_1103&rgn=div8"5 CFR 581.103, finance activity and the Veterans Service Center (VSC) withhold disability compensation, and make a payment in compliance with the garnishment order for certain categories of payees. Reference: For more information on the responsibilities of finance activity and the VSC see, M21-1, Part III, Subpart v, 3.D.2. 2. Processing a Garnishment Order IntroductionThis topic contains procedures for handling a garnishment when compensation is paid in lieu of military retired pay, including actions to take upon receipt of a garnishment order stages in the garnishment process responsibility for making delinquent and recurring payments and notifying the Veteran, and handling changes in the amount of disability compensation or military retired pay. Change DateApril 10, 2015 a. Actions to Take Upon the Receipt of a Garnishment OrderUpon receipt of any court garnishment order involving a Veteran who receives VA compensation in lieu of military retired pay, expeditiously deliver a copy of the court order to the local Finance Officer (FO). Take the additional steps described in the table below if the Veteran resides within the jurisdiction of another regional office (RO). StepAction1Download a copy of the garnishment order from the Veterans eFolder.2E-mail the garnishment order to the FO at the RO with jurisdiction over the Veterans place of residence.3Input a note into the claims-processing system indicating that the garnishment order has been received and forwarded to the FO referenced in Step 2. Note: The RO receiving the initial garnishment order should not request a transfer of the claims folder unless it is located at the Records Management Center (RMC), or a Federal Records Center (FRC). b. Stages in the Garnishment ProcessThe following table describes the stages in the garnishment process. StageWho Is ResponsibleDescription1FO Reviews the claims folder to determine initial withholding activity under HYPERLINK "http://www.ecfr.gov/cgi-bin/text-idx?SID=86e0f67212b3cb6744654ad1fbcc8d78&node=se5.1.581_1301&rgn=div8"5 CFR 581.301 refers the case to Regional Counsel notifies the Veteran of the pending garnishment action, and provides the Veteran with a copy of the garnishment order a description of the garnishment process monthly garnishment limitations, and rights to appeal.2Regional CounselAssumes jurisdiction of the court order prepares a brief memorandum explaining the legal basis for further action specifies the dollar amount to be awarded, and forwards the memorandum to the FO.3FO Confirms dollar amounts and effective dates in accordance with Regional Counsels memorandum takes the actions described in the table below, and works with Regional Counsel to resolve any questions that arise. If the garnishment order Then the FO involves a dependent on the Veterans award forwards the order to the VSC. does not involve a dependent on the Veterans award arranges withholding and payment from the Veterans award via the Veterans Service Network (VETSNET) Financial and Accounting System (FAS). 4Veterans Service Center Manager (VSCM) or designeeIf a VSCM or designee receives a garnishment order from an FO because the order involves a dependent on a Veterans award, the VSCM or designee confirms dollar amounts and effective dates in accordance with Regional Counsels memorandum, and processes the garnishment as an apportionment. Reference: For more information on processing apportionments in VETSNET, see the HYPERLINK "https://vaww.portal2.va.gov/sites/manualrewrite/MRchange/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2Fsites%2Fmanualrewrite%2FMRchange%2FShared%20Documents%2FPart%20III%2FIII%5Fv%2FM21%2D1MRIII%5Fv%5F3%5FSecB%2FChange%20Document"VETSNET Awards Handbook, and Veterans Benefits Management System (VBMS), see the  HYPERLINK "http://vbaw.vba.va.gov/VBMS/Resources_Technical_Information.asp" VBMS Awards User Guide. c. Responsibility for Making Delinquent and Recurring Payments and Notifying the VeteranIf the garnishment order mandates a specific amount be paid (a delinquent payment) with no recurring payments, the FO makes the delinquent payment, and notifies the Veteran, or recurring payments, the FO makes the delinquent payment awards recurring payments via VETSNET FAS, and notifies the Veteran. d. Handling Changes in the Amount of Disability Compensation or Military Retired PayIn the event of any change of disability compensation or military retired pay (other than a cost-of-living adjustment (COLA)), the VSCM or designee reviews the claims folder to determine if action to adjust the garnishment may be necessary. When adjustment appears necessary, apply the same instructions used to process an original garnishment: download relevant documentation from the Veterans eFolder, and e-mail the documentation to the local FO. Note: Complete all actions locally even if the original garnishment was processed elsewhere. 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