Privacy Act of 1974; System of Records

DEPARTMENT OF VETERANS AFFAIRS

[Docket No. VA-2025-VACO-0001]

Privacy Act of 1974; System of Records

AGENCY:

Veterans Benefits Administration (VBA), Department of Veterans Affairs (VA).

ACTION:

Notice of a modified system of records.

SUMMARY:

Pursuant to the Privacy Act of 1974, notice is hereby given that VA is modifying a system of records in its inventory titled, Beneficiary Fiduciary Field System (BFFS)-VA (37VA27). This system contains records used for the administration of benefits regarding beneficiaries who VA or a court has deemed unable to manage their financial affairs.

DATES:

Comments on this modified system of records must be received no later than 30 days after the date of publication in the

Federal Register

. If no public comment is received during the period allowed for comment or unless otherwise published in the

Federal Register

by VA, the modified system of records will become effective a minimum of 30 days after date of publication in the

Federal Register

. If VA receives public comments, VA shall review the comments to determine whether any changes to the notice are necessary.

ADDRESSES:

Comments may be submitted through

www.regulations.gov

under docket number VA-2025-VACO-0001 or mailed to VA Privacy Service (005X6F), 810 Vermont Avenue NW, Washington, DC 20420. Comments must indicate that they are submitted in response to Supervised Fiduciary/Beneficiary and General Investigative Records—VA (37VA27). Comments received will be available at

www.regulations.gov

for public viewing, inspection, or copies.

FOR FURTHER INFORMATION CONTACT:

Mr. Seamus Welch, Analyst, Pension and Fiduciary Service, VA, 810 Vermont Avenue NW, Washington, DC 20420,

Seamus.Welch@va.gov,

or by telephone at 202-461-9759. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION:

VA is modifying this system of records by revising the system name; routine uses; policies and practices for storage of records; policies and practices for retrieval of records; policies and practices for retention and disposal of records; record access procedures; contesting records procedures; and notification procedures. VA is republishing the system notice in its entirety.

VA is modifying:

• The name of the system of records from BFFS-VA (37VA27) to Supervised Fiduciary/Beneficiary and General Investigative Records—VA (37VA27).

• Routine use numbers 1-23 to reflect new language.

• The Policies and Practices for Storage of Records section to state, “VA maintains records at the VA fiduciary hub that has jurisdiction over the geographical area in which the VA beneficiary resides, and the Corporate Franchise Data Center in Austin, Texas. Non-fiduciary program investigations and related information are maintained stored at the fiduciary hubs and at VA Central Office SharePoint websites.”

• The Policies and Practices for Retrieval of Records section to state, “Records in this system are retrieved by the name of the individual and VA file number.”

• The Policies and Practices for Retention and Disposal of Records section is being modified to state, “Records in this system are retained and disposed of in accordance with the schedule approved by the Archivist of the United States, VBA Records Control Schedule VB-1, Part 1, Section VI, Item Numbers: 06-016.000 through 06-025.000.”

• The Record Access Procedures section to state, “Individuals seeking information on the existence and content of records in this system pertaining to them should contact the system manager in writing as indicated above or may write or visit the VA facility location where they normally receive their care. A request for access to records must contain the requester's full name, address, telephone number, be signed by the requester, and describe the records sought in sufficient detail to enable VA personnel to locate them with a reasonable amount of effort.”

• The Contesting Records Procedures section to state, “Individuals seeking to contest or amend records in this system pertaining to them should contact the

system manager in writing as indicated above or may write or visit the VA facility location where they normally receive their care. A request to contest or amend records must state clearly and concisely what record is being contested, the reasons for contesting it, and the proposed amendment to the record.”

• The Notification Procedures section to state, “Generalized notice is provided by the publication of this notice. For specific notice, see Record Access Procedure, above.”

VA is proposing to update this system of records notice to include authority to disclose the necessary fiduciary information to surety bond companies when there has been a misuse determination. Pursuant to 38 CFR 14.709(a), “It is the policy of the Department of Veterans Affairs to require, where possible under State laws and rules of the court, corporate surety bonds in all court-appointed fiduciary cases where the fiduciary is an individual and the estate is sufficient to justify the expense of procuring a corporate surety bond. Corporate bonds may be required of corporate fiduciaries in accordance with State laws.” In addition, 38 CFR 13.230(a) requires a VA-appointed fiduciary to “furnish to the fiduciary hub with jurisdiction a corporate surety bond that is conditioned upon faithful discharge of all of the responsibilities of a fiduciary prescribed in § 13.140 and meets the requirements of [§ 13.230(d)], if the VA benefit funds that are due and to be paid for the beneficiary will exceed $25,000 at the time of appointment.” A corporate surety bond is not required when a VA-appointed fiduciary is (i) a trust company or a bank with trust powers organized under the laws of the United States or a state; (ii) the beneficiary's spouse; (iii) located in Puerto Rico, Guam, or the Philippines and has entered into a restricted withdrawal agreement in lieu of a surety bond; (iv) a fiduciary that is also appointed by a court and has obtained a state-court bond that is sufficient to cover VA and non-VA funds; or (v) a fiduciary that is also a state agency with existing state-mandated liability insurance or a blanket bond sufficient to cover VA and non-VA funds.

VA requires surety bonds for court-appointed fiduciaries to be in an amount commensurate with the value of the personal estate derived from VA benefits plus the anticipated net income from VA benefits received during the ensuing accounting period. See 38 CFR 14.709(c). VA requires surety bonds for VA-appointed fiduciaries to be “in an amount sufficient to cover the value of the VA benefit funds under management by the fiduciary for the beneficiary” and requires fiduciaries, after furnishing the prescribed bond to the fiduciary hub, to “adjust the bond amount to account for any increase or decrease of more than 20 percent in the VA benefit funds under management by the fiduciary for the beneficiary.” 38 CFR 13.230.

The new Routine Use 24 will authorize VBA fiduciary hubs to provide the surety bond companies with the following documentation: (1) unredacted copies of the misuse determination, (2) all documentation the principal provided to VA relative to the time period for which the principal acted as fiduciary of the beneficiary, (3) all accounting and banking records for the veteran for the relevant time period, (4) the identity and contact information of the beneficiary's successor fiduciary, (5) any investigative reports or records completed by VA., and (6) any additional information in VA's possession related to its claim on the surety bond.

The Report of Intent to Amend a System of Record Notice and an advance copy of the system notice was sent to the appropriate Congressional Committees and to the Office of Management and Budget (OMB) as required by 5 U.S.C. 552a(r) (Privacy Act) and guidelines issued by OMB (81 FR 94424), December 23, 2016.

Signing Authority

The Senior Agency Official for Privacy, or designee, approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. Eddie Pool, Deputy Chief Information Officer, Performing the Delegable Duties of the Assistant Secretary for Information and Technology and Chief Information Officer, Department of Veterans Affairs approved this document on September 12, 2025 for publication.

Dated: July 7, 2026.

Saurav Devkota,

Government Information Specialist, VA Privacy Service, Office of Information and Technology, Department of Veterans Affairs.

SYSTEM NAME AND NUMBER:

Supervised Fiduciary/Beneficiary and General Investigative Records—VA (37VA27).

SECURITY CLASSIFICATION:

Unclassified.

SYSTEM LOCATION:

Records are maintained at the VA fiduciary hub that has jurisdiction over the geographical area in which the VA beneficiary resides, and the Corporate Franchise Data Center in Austin, Texas. The supervised fiduciary/beneficiary and general investigative records and associated electronic records are maintained at a private Federal hosting facility. The addresses of VA fiduciary hubs and the data processing center are listed in VA Appendix 1.

SYSTEM MANAGER(S):

Mr. Seamus Welch, Analyst, Pension and Fiduciary Service, Veterans Benefits Administration Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420. Mr. Welch may be reached at

Seamus.Welch@va.gov,

or 202-461-9759. (This is not a toll-free number.)

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

38 U.S.C. 55, 501(a)-(b).

PURPOSE(S) OF THE SYSTEM:

VA's fiduciary system protects vulnerable VA beneficiaries who cannot manage their benefits due to injury, disease, or age. VA qualifies individuals for service as a fiduciary and provides oversight of fiduciaries. VA collects and maintains records to enable it to administer these benefit programs.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

The following categories of individuals are covered by this system:

1. VA beneficiaries (such as a veteran or a non-veteran adult who receives VA monetary benefits, lacks the mental capacity to manage their own financial affairs regarding disbursement of funds without limitation, and is either rated incapable of managing their financial affairs or adjudged to be under legal disability by a court of competent jurisdiction; or a child who has not reached majority under state law and receives VA monetary benefits).

2. Current, former, and prospective VA-appointed fiduciaries (such as a VA Federal fiduciary appointed by VA to serve as fiduciary of VA monetary benefits for a VA beneficiary determined unable to manage their financial affairs; or a person or legal entity appointed by a state or foreign court to supervise the person and/or payee of a VA beneficiary adjudged to be under a legal disability). The statutory title of a court appointed fiduciary may vary from state to state.

3. A chief officer of a hospital, domiciliary, institution, or nursing home care facility where a beneficiary, who VA has determined is unable to

manage their financial affairs, is receiving care and who has contracted to use the veteran's VA funds in a specific manner.

4. Supervised Direct Payment (such as an adult beneficiary in the fiduciary program who manages their VA benefits with limited and temporary supervision based upon a field examination and subsequent to determination by the hub manager pertaining to benefits eligibility and other issues; or, to develop evidence for further investigations of potential criminal issues).

5. Physicians named in treatment records and financial managers or attorneys who help disperse funds for VA beneficiaries deemed unable to manage those funds.

CATEGORIES OF RECORDS IN THE SYSTEM:

The records in the electronic fiduciary folder are the primary records in this system. These records may contain the following types of information:

1. Field examination reports (such as the VA Form 27-4716a or 27-3190, Field Examination Request and Report, which contains a VA beneficiary's name, address, Social Security number (SSN), VA file number, an assessment of the beneficiary's ability to handle VA and non-VA funds, description of family relationships, economic and social adjustment information, information on the beneficiary's activities, and the name, address, and assessment of the performance of a VA-appointed fiduciary).

2. Correspondence from and to a VA beneficiary, a VA appointed fiduciary, and other interested third parties.

3. Medical records (such as medical and social work reports generated in VA, state, local, or private medical treatment facilities or private physicians' offices indicating the medical history of a VA beneficiary, including diagnosis, treatment and nature of any physical or mental disability).

4. Financial records (such as accountings regarding a fiduciary's management of a beneficiary's income, investments, and accumulated funds, monthly benefit amount received, amounts charged for fees by the fiduciary, certificates of balance on accounts from financial institutions, and withdrawal agreements between VA, financial institutions, and the fiduciary).

5. Court documents (such as petitions, court orders, letters of guardianship, Inventories of assets, and depositions).

6. Agreements to serve as a VA Federal fiduciary.

7. Information pertaining to individuals, including companies and other entities, who previously served as a VA appointed fiduciary.

8. Information related to the qualification and appointment of individuals, including companies and other entities, considered by VA for appointment as a fiduciary.

9. Photographs of people (beneficiaries who VA has determined are unable to manage their financial affairs, fiduciaries, and other persons who are the subject of a VA investigation), places, and things that are related to the subject of a VA investigation as part of VA's oversight duties.

10. Fingerprint records.

11. SSA records containing information about the type and amount of SSA benefits paid to beneficiaries who are eligible to receive benefits under VA and SSA eligibility criteria, records containing information developed by SSA about SSA beneficiaries who need representative payees, accountings provided to SSA, and records containing information about SSA representative payees. These records are reports of field examinations or investigations performed at the request of any organizational element of VA about any subject under the jurisdiction of VA other than a fiduciary issue. In addition to copies of the reports, records may include copies of exhibits or attachments such as photographs of people, places, and things; sworn statements; legal documents involving loan guaranty transactions, bankruptcy, and debts owed to VA; accident reports; birth, death, and divorce records; certification of search for vital statistics documents; beneficiary's financial statements and tax records; immigration information; and newspaper clippings.

RECORD SOURCE CATEGORIES:

VA beneficiary, VA beneficiary's dependents, VA-appointed fiduciaries, individuals who were previously VA-appointed fiduciaries; individuals who VA considered for service as a VA appointed fiduciary but were not selected; field examiners; legal instrument examiners; fiduciary program personnel; third parties (medical care and service providers, friends, relatives); other Federal, state, and local agencies (public assistance offices, courts, benefit providers); and VA records.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:

1.

Congress:

To a Member of Congress or staff acting upon the Member's behalf when the Member or staff requests the information on behalf of, and at the request of, the individual who is the subject of the record.

2.

Data Breach Response and Remediation for VA:

To appropriate agencies, entities, and persons when (a) VA suspects or has confirmed that there has been a breach of the system of records, (b) VA has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, VA (including its information systems, programs, and operations), the Federal Government, or national security, and (c) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with VA's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.

3.

Data Breach Response and Remediation for Another Federal Agency:

To another Federal agency or Federal entity, when VA determines that the information from this system of records is reasonably necessary to assist the recipient agency or entity in (a) responding to a suspected or confirmed breach or (b) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.

4.

Law Enforcement:

To a Federal, state, local, territorial, tribal, or foreign law enforcement authority or other appropriate entity charged with the responsibility of investigating or prosecuting a violation or potential violation of law, whether civil, criminal, or regulatory in nature, or charged with enforcing or implementing such law, provided that the disclosure is limited to information that, either alone or in conjunction with other information, indicates such a violation or potential violation. The disclosure of the names and addresses of veterans and their dependents from VA records under this routine use also must comply with the provisions of 38 U.S.C. 5701.

5.

Department of Justice (DOJ), Litigation, Administrative Proceeding:

To DOJ, or in a proceeding before a court, adjudicative body, or other administrative body before which VA is authorized to appear, when (a) VA or any component thereof, (b) Any VA employee in their official capacity, (c) any VA employee in their individual capacity where DOJ has agreed to represent the employee, or (d) the United States, where VA determines that litigation is likely to affect the agency or any of its components, is a

party to such proceedings or has an interest in such proceedings, and VA determines that use of such records is relevant and necessary to the proceedings.

6.

Contractors:

To contractors, grantees, experts, consultants, students, and others performing or working on a contract, service, grant, cooperative agreement, or other assignment for VA, when reasonably necessary to accomplish an agency function related to the records.

7.

National Archives and Records Administration (NARA):

To NARA in records management inspections conducted under 44 U.S.C. 2904 and § 2906, or other functions authorized by laws and policies governing NARA operations and VA records management responsibilities.

8.

Governmental Agencies, Health Organizations for Claimants' Benefits:

To Federal, state, and local government agencies as reasonably necessary to assist in the development of programs that will be beneficial to claimants, to further protect their rights under law, and ensure that they are receiving all benefits to which they are entitled.

9.

SSA for Fiduciaries:

To a representative of the SSA to the extent necessary for the operation of a VA program, name, address, SSN, VA file number, medical records, financial records, and field examination reports of a VA beneficiary who is in receipt of VA and SSA benefits concurrently, and the name, address, and information regarding the activities of a VA supervised fiduciary serving in that role.

10.

Federal and State Agencies for Benefits:

To a Federal agency, upon its official request, the name and address of a VA beneficiary, the VA rating that indicates the beneficiary is unable to manage their financial affairs, and the field examination report upon which the rating was based may be disclosed in order for that agency to make decisions on such matters as competency and dependency in connection with eligibility for that agency's benefits. This information also may be disclosed to a state or local agency, upon its official request, in order for that agency to make decisions on such matters as competency and dependency in connection with eligibility for that agency's benefits, if the information pertains to a VA beneficiary who is not a veteran, or if the name and address of the veteran is provided beforehand.

11.

Guardians, Courts for Guardianship:

To a court, magistrate, or administrative tribunal in matters of guardianship, inquests, and commitments, and to probation and parole officers in connection with court required duties; medical records, financial records, field examination reports, correspondence, and court documents may be disclosed in the course of presenting evidence.

12.

Third Parties for VA Investigations:

To a third party who may have information regarding a VA investigation, including information in VA records obtained from the SSA, and the name and address of a VA beneficiary, fiduciary, or other person under investigation.

13.

Proposed Fiduciary:

To a proposed fiduciary, VA beneficiary information contained in this system in order for the fiduciary to make an informed decision with regard to accepting fiduciary responsibility for a VA beneficiary.

14.

Guardian Ad Litem for Representation:

To a fiduciary or guardian ad litem in relation to his or her representation of a claimant in any legal proceeding as relevant and necessary to fulfil the duties of the fiduciary or guardian ad litem.

15.

Federal, State Agencies for Debts Owed:

To other Federal agencies, state probate courts, state driver's license bureaus, state automobile title and license bureaus, any available identifying information regarding the debtor, such as the name of the debtor, last known address of the debtor, name of debtor's spouse, SSN, VA insurance number, VA file number, place of birth and date of birth of debtor, name and address of debtor's employer or firm, and dates of employment may be disclosed to obtain current address, locator, and credit report assistance in the collection of unpaid financial obligations owed the United States in accordance with the Federal Claims Collection Act of 1966 and 38 U.S.C. 5701(b)(6).

16.

Lenders for Loan Guarantee:

To a lender or prospective lender participating in the VA Loan Guaranty Program who is extending credit or proposing to extend credit on behalf of a veteran, any information in this system relating to the adjudication of a VA beneficiary's ability to manage their VA benefits, either by a court of competent jurisdiction or by VA, may be disclosed.

17.

VA Beneficiary for VA Fiduciary Appointment:

To the beneficiary or their accredited representative or court appointed guardian for the purpose of notifying the beneficiary of the reasons for selection or non-selection of the individual.

18.

VA Beneficiary for Fiduciary Misuse Notification:

To the beneficiary or their accredited representative or court appointed guardian for the purpose of notifying the beneficiary of the reasons for VA's decision regarding misuse.

19.

Surety Bond Companies:

To attorneys, insurance companies, third parties liable or potentially liable under surety bond contracts, and courts, boards, or commissions, to the extent necessary to aid VA in the preparation, presentation, and prosecution of claims authorized under Federal, state, or local laws, and regulations promulgated thereunder.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:

VA maintains records at the VA fiduciary hub that has jurisdiction over the geographical area in which VA beneficiary resides, and the Corporate Franchise Data Center in Austin, Texas. Non-fiduciary program investigations and related information are maintained at the fiduciary hubs and at VA Central Office SharePoint websites.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:

Records in this system are retrieved by the name of the individual and the VA file number.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:

Records in this system are retained and disposed of in accordance with the schedule approved by the archivist of the United States, VBA Records Control Schedule VB-1, Part 1, Section VI, Item Numbers: 06-016.000 through 06-025.000.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:

1. Physical Security:

a. Access to working spaces and claims folder file storage areas in VA regional offices and centers is restricted to VA employees on a need-to-know basis. Generally, file areas are locked after normal duty hours, and the offices and centers are protected from outside access by the Federal Protective Service or other security personnel. Employee claims file records and claims file records of public figures are stored in separate locked files. Strict control measures are enforced to ensure that access to and disclosure from these claims file records are limited to a need-to-know basis. Duplicate paper copies after imaging are stored in NARA-compliant facilities, pending destruction.

b. Veterans Benefits Management System access is protected by the usage of “login” identification passwords and authorized function passwords. The passwords are changed periodically.

These same protections apply to remote access users.

RECORD ACCESS PROCEDURES:

Individuals seeking information on the existence and content of records in this system pertaining to them may contact the system manager in writing as indicated herein or may write or visit the VA facility location where they normally receive their care. A request for access to records must contain the requester's full name, address, telephone number, be signed by the requester, and describe the records sought in sufficient detail to enable VA personnel to locate them with a reasonable amount of effort.

CONTESTING RECORD PROCEDURES:

Individuals seeking to contest or amend records in this system pertaining to them should contact the system manager in writing as indicated herein or may write or visit the VA facility location where they normally receive their care. A request to contest or amend records must state clearly and concisely what record is being contested, the reasons for contesting it, and the proposed amendment to the record.

NOTIFICATION PROCEDURES:

Generalized notice is provided by the publication of this notice. For specific notice, see the Record Access Procedure section herein.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:

None.

HISTORY:

79 FR 41744 (July 17, 2014).

Appendix 1: VA Regional Offices With Fiduciary Activity

Please send address and telephone number corrections to Department of Veterans Affairs, Pension and Fiduciary Service (21PF), 810 Vermont Avenue NW, Washington, DC 20420.

• Columbia Fiduciary Hub

○ Jurisdiction for Florida, Georgia, North Carolina, South Carolina; Office/Mail: 6437 Garners Ferry Road, Columbia, SC 29209; Phone: 1-888-407-0144; press # 1

• Indianapolis Fiduciary Hub

○ Jurisdiction for Asia, Australia, Canada, Connecticut, Delaware, Europe, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont; Office/Mail: 575 North Pennsylvania Street, Indianapolis, IN 46204; Phone: 1-888-407-0144; press # 2

• Lincoln Fiduciary Hub

○ Jurisdiction for Central America, Kansas, Mexico, Nebraska, North Dakota, Oklahoma, South America, South Dakota, Texas; Office: 3800 Village Drive, Lincoln, NE 68501; Mail: P.O. Box 5444, Lincoln, NE 68505; Phone:1-888-407-0144; press # 3

• Louisville Fiduciary Hub

○ Jurisdiction for Alabama, Kentucky, Mississippi, Tennessee, Puerto Rico, Virginia, Washington, DC, West Virginia; Office: 321 West Main Street, Ste 390, Louisville, KY 40202; Mail: P.O. Box 3487, Louisville, KY,40201; Phone:1-888-407-0144; press # 4

• Manila Regional Office

○ Jurisdiction for Philippines; Office: U.S. Embassy, 1501 Roxas Boulevard, Pasay City, Philippines,1302; Mail: PSC 501, DPO AP 96515

• Milwaukee Fiduciary Hub

○ Jurisdiction for Arkansas, Illinois, Iowa, Louisiana, Minnesota, Missouri, Wisconsin; Office: 5400 West National Avenue, Milwaukee, WI 53214; Mail: P.O. Box 14975, Milwaukee, WI 53214; Phone:1-888-407 0144; press # 5

• Salt Lake City Fiduciary Hub

○ Jurisdiction for Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, Wyoming; Office: 500 Foothill Drive, Salt Lake City, UT 84158; Mail: P.O. Box 58086, Salt Lake City, UT 84158; Phone:1-888-407-0144; press # 6

[FR Doc. 2026-13846 Filed 7-8-26; 8:45 am]

BILLING CODE 8320-01-P