Compensation and Pension Benefits Claims Backlog

The Veterans Benefits Administration’s (VBA) compensation program provides tax free monthly payments to veterans for the effects of disabilities caused by diseases, events, or injuries incurred or aggravated during active military service. VBA also has a pension program designed to provide supplemental income to eligible wartime veterans and their survivors with financial need. In response to a backlog of claims for the compensation and pension programs, Congress directed the OIG to • report the status of the compensation and pension benefits claims backlog, • review the causes of VA’s backlog, and • analyze how an initiative to digitally scan all paper based military personnel files has helped address and resolve the backlog. Beginning in fiscal year 2020, VBA experienced an increased backlog due to pauses in in person medical exams to establish disabilities and levels of impairment from the COVID 19 pandemic. Additionally, because of the implementation of the PACT Act of 2022, VBA anticipates a further increase in the claims backlog during fiscal year 2023. VBA developed a multilevel action plan to address the anticipated increase in backlog: hiring, technology, and proactive scanning, and the initiative to digitally scan all personnel files appears to be working well.