38 U.S.C. § 6107 — Reissuance of benefits
submitted 22 years ago by Pub. L. 108-454 to r/title-38-VETERANS-BENEFITS · 355 words · no verdicts yet
When a fiduciary misuses benefits, the Secretary must reissue the misused amount to the beneficiary or successor fiduciary and try to recover it. Special rules apply if the beneficiary dies, and total payments cannot exceed the amount misused.
(a)(1) If a fiduciary misuses all or part of a benefit paid to the fiduciary, the Secretary* must pay the same amount to the beneficiary or successor fiduciary. (2) If the Secretary reissues any amount, the Secretary must make a good-faith effort to recover it from the original fiduciary. (3) Recovered money not already paid under (1) must promptly be paid to the beneficiary or successor fiduciary. (b)(1) If the beneficiary dies before payment under (a), the Secretary must pay the amount, subject to (2), to the person or entity specified by section 5121. (2) The payment may not go to the fiduciary who misused the benefits. (c) Total payments under this section may not exceed the total benefit amount misused for that beneficiary. (d)(1) The Secretary must establish methods and timing for deciding whether misuse resulted from Secretary negligence. (2) A pending negligence decision may not delay reissuance under (a)(1). (3) The Secretary need not decide negligence separately for every misuse.
In any case in which a fiduciary misuses all or part of an individual’s benefit paid to such fiduciary, the Secretary* shall pay to the beneficiary or the beneficiary’s successor fiduciary an amount equal to the amount of such benefit so misused.
In any case in which the Secretary reissues a benefit payment (in whole or in part) under paragraph (1), the Secretary shall make a good faith effort to obtain recoupment from the fiduciary to whom the payment was originally made.
In any case in which the Secretary obtains recoupment from a fiduciary who has misused benefits, the Secretary shall promptly remit payment of the recouped amounts to the beneficiary or the beneficiary’s successor fiduciary, as the case may be, to the extent that such amounts have not been paid under paragraph (1).
If a beneficiary described in subsection (a)(1) predeceases a payment under such subsection, the Secretary shall pay such amount, subject to paragraph (2), to an individual or entity in accordance with section 5121 of this title.
The Secretary may not make a payment under this subsection to a fiduciary who misused benefits of the beneficiary.
The total of the amounts paid to a beneficiary or the beneficiary’s successor fiduciary under this section may not exceed the total benefit amount misused by the fiduciary with respect to that beneficiary.
The Secretary shall establish methods and timing with respect to determining whether an instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary, is the result of negligence by the Secretary.
The Secretary may not withhold the reissuing of a benefit payment under subsection (a)(1) by reason of a pending determination under paragraph (1).
The Secretary is not required to make a determination under paragraph (1) for each instance of misuse by a fiduciary, of all or part of an individual’s benefit paid to such fiduciary.
Source credit: (Added Pub. L. 108–454, title V, § 503(a)(1), Dec. 10, 2004, 118 Stat. 3619; amended Pub. L. 116–315, title VII, § 7005(a), Jan. 5, 2021, 134 Stat. 5059; Pub. L. 118–114, § 2, Nov. 25, 2024, 138 Stat. 1605; Pub. L. 119–56, § 2, Dec. 12, 2025, 139 Stat. 709.)
- 2004Enacted · Pub. L. 108-454 · 118 Stat. 3619
- 2021Amended · Pub. L. 116-315 · 134 Stat. 5059
- 2024Amended · Pub. L. 118-114 · 138 Stat. 1605
- 2025Amended · Pub. L. 119-56 · 139 Stat. 709
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-454 on 2004-12-10.
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