INCOME WITHHOLDING
CS
734P-3 Notice to Withhold, Veteran’s
Benefits
10/98
Revised 06/13/23 Training Completed 06/27/23 Last Reviewed 09/29/25
38 U.S.C. 3101; 42 U.S.C. 659; U.C.A.
26B-9-101 and 306;
R527-378
Introduction
Veteran’s Administration (VA) Disability Benefits are benefits
that are based on either the veteran’s disability and wartime service
(pension), or disability from service-connected injury or disease
(compensation). Pursuant to 42 U.S.C. Section 659, withholding from a veteran’s
benefits is permitted in certain circumstances.
Procedures
If you determine the noncustodial parent (NCP) is receiving
benefits through the Department of Veterans Affairs, take the steps listed
below.
1.
Generate the Request for Apportionment Review letter.
a.
Set aside the first page of the letter. This letter will be sent
to the Department of Veterans Affairs once the remaining documentation is
received from the custodial parent (CP).
b.
Inform the CP that you will be sending him/her documents that
he/she must complete as much as possible. Instruct the CP to complete his/her
portion, sign the documents, and inform the CP that his/her signature must be
witnessed by a Notary. Then send the following documents to the CP:
i.
The notarial certificate (second page of the Request for
Apportionment Review);
ii.
The Information Regarding Apportionment of Beneficiary’s Award (VA form 21-0788);
and,
iii.
The Financial Status Report (VA form 5655).
The VA Region Office will conduct
an apportionment review for the CP and/or the child(ren). Mail the notarized letter to the VA office
that is servicing the NCP’s benefits.
2.
Once the CP has
returned the notarial certificate and two VA forms, verify that they have been
signed. Then sign the first page of the Request for Apportionment Review letter
that was set aside. Mail the following documents to the VA Regional Office:
a.
Request for Apportionment
Revie letter;
b.
The notarial
certificate page;
c.
VA form 21-0788;
d.
VA form 5655;
e.
Notice to
Withhold Income for Child Support letter;
f.
A copy of the
current child support order; and,
g.
A copy of the arrears debt computation.
NOTE: If the CP does not return the
documentation listed in (1)(b) above, or the documentation is returned but is
incomplete, contact the CP. Explain to the CP that we need the documentation to
be complete as much as possible and returned to our office so that we can
forward it to the VA office in an effort to collect child support.
3.
When the VA Regional Office conducts the apportionment review, it
will contact the NCP and ask him/her to provide his/her income, assets and
monthly expenses. The NCP is given a minimum of 60 days due process.
a.
If the NCP chooses not to respond: The VA Regional Office will use
the most current information it has on the NCP to determine the amount to be
withheld.
b.
If the NCP responds: The VA Regional Office will determine the
amount to be withheld based on the information it receives from the NCP and CP.
If possible, the VA will direct the payments to the Office of Recovery Services
(ORS) once it receives the Notice to Withhold Income for Child Support:
Unearned letter. However, if the CP is already receiving an apportionment, the
benefits may not be redirected to ORS. In these cases
you will need to contact the CP to instruct him/her to forward the payments to:
Office
of Recovery Services
PO
Box 45011
Salt
Lake City, UT 84145-0011
NOTE: If the NCP is incarcerated
in prison on a felony conviction, s/he will receive only 10% of his/her
benefits. In this case 90% of the benefits could be subject to withholding.
If you receive information back from the VA indicating that the
NCP is not subject to withholding, document this information in the case
narrative.
If the NCP’s child is receiving VA benefits based on the NCP’s
disability, refer to CS 852P Child Receiving Benefits Based on the
Non-custodial Parent’s Social Security or Veterans Benefits.