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The PACT Act Has Complicated Determining When Veterans’ Benefits Payments Should Take Effect

Report Information

Issue Date
Report Number
24-01153-52
VA Office
Veterans Benefits Administration (VBA)
Report Author
Office of Audits and Evaluations
Report Type
Review
Report Topic
PACT Act
Major Management Challenges
Benefits for Veterans
Recommendations
6
Questioned Costs
$20,400,000
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary

The VA Office of Inspector General (OIG) conducted this review to determine whether claims processors are properly assigning effective dates when considering PACT Act–related claims. After reviewing a statistical sample of 100 PACT Act–related claims completed from August 10, 2022, through August 9, 2023, the OIG estimated that incorrect effective dates were assigned for about 31,400 of 131,000 (24 percent). In an estimated 26,100 of those claims, the assigned effective date was incorrect, resulting in at least $6.8 million in improper payments. At least 2,300 additional claims had date errors, but the review team could not determine their monetary impact, as claims processors prematurely decided them without enough evidence to definitively establish correct dates.

Although determining correct effective dates for PACT Act–related claims is inherently complicated for claims processors—requiring mastery of numerous sections of the United States Code, the Code of Federal Regulations, and VBA guidance—VBA failed to effectively prepare them. VBA did not provide detailed guidance in its PACT Act–related standard operating procedure, its two automated tools were unreliable for determining effective dates, and it did not initially provide the necessary training.

When granting benefits, claims processors must determine and apply the most advantageous effective date allowed by law for each claim or benefit awarded. The proper assignment of effective dates for disability compensation benefits is vital because an incorrect effective date can have a substantial financial effect on veterans.

The OIG recommended the under secretary for benefits create a job aid for claims processors on how to determine the correct effective date for PACT Act–related claims, remove the older tool and update the newer one, assess training effectiveness by monitoring the results to assess its effectiveness, and correct all errors on cases identified by the review team.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Open Recommendation Image, Square
to Veterans Benefits Administration (VBA)

Create a job aid for claims processors on how to determine the correct effective date for PACT Act–related claims.

No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Closure Date: 6/18/2025

Remove the outdated effective date builder from the Veterans Benefits Administration’s internal job aids page.

No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Closure Date: 8/12/2025

Continue updating the Veterans Benefits Management System-Rating system’s effective date builder to add functionality that applies liberalizing laws on claims when the Veterans Benefits Administration receives an intent to file.

No. 4
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Closure Date: 8/12/2025

Update the Veterans Benefits Management System-Rating system’s effective date builder to add functionality that applies liberalizing laws on claims when a veteran’s service connection is based on a toxic exposure risk activity.

No. 5
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
Closure Date: 8/12/2025

Evaluate PACT Act refresher training by monitoring the results to assess the effectiveness of the training.

No. 6
Open Recommendation Image, Square
to Veterans Benefits Administration (VBA)

Correct all processing errors on cases identified by the review team and report the results to the Office of Inspector General.

Total Monetary Impact of All Recommendations
Open: $ 20,400,000.00
Closed: $ 0.00