Initial Release Date:  May 17, 2011                                            SUBJ:  Processing Claims Releasing Retroactive Benefits to Beneficiaries under Fiduciary Supervision                                 Purpose                          This fast letter clarifies policies and procedures concerning the processing of claims resulting in retroactive benefits paid to beneficiaries under fiduciary supervision.  There has been no change in current regulations or policies for the processing of claims releasing retroactive benefits to beneficiaries under fiduciary supervision.  Additionally, the provisions of Fast Letter 09-41 remain in effect.  However, it is imperative that regional offices (ROs) are aware of and follow the established guidelines when adjudicating these claims.  This letter specifically addresses the processing of claims releasing retroactive benefits of less than $25,000, as well as benefits of $25,000 or greater, to beneficiaries under fiduciary supervision.  This information is provided to promote RO awareness and consistency in the processing of these claims.                                                   Background                                      The purpose of the Department of Veterans Affairs (VA) Fiduciary Program is to protect the benefits paid to Veterans and beneficiaries who are unable to manage their financial affairs.                                                                 To ensure proper oversight, M21-1MR, III.v.9.C.9.f requires that a copy of all correspondence or authorization actions related to the processing of awards for beneficiaries under fiduciary supervision be provided to the Fiduciary and Field Examination (F&FE) Activity for review.                                                                     Additionally, VA regulations also provide that the supervisor of the F&FE Activity perform a review prior to the authorization of fiduciary awards for retroactive benefits of $25,000 or greater to beneficiaries under fiduciary supervision.  This practice is consistent with M21-1MR, XI.4.C.12.d.  Lastly, M21-1, V.9.01.b requires three signatures on all awards where the retroactive payment of benefits exceeds $25,000.                                 Accounting Requirements               Accountings are required when benefits are paid to a federal fiduciary and any of the conditions listed below apply:

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