0% DoD/90% VA (Recoupment?)

AWO2Hawaii

Registered Member
So I'll make this simple. I was found unfit and accepted the findings at 0% DoD and 90% VA. Seperation with Severance. This was through the IDES program offered up during my MEB/PEB. My single unfitting condition was rated both 0% DoD/VA (Non-Combat Related).

So the question is, will I be required to pay VA Recoupment of my Severence Pay prior to recieving my VA Benefits? Or are they excluded because I'm being separated 0% DoD?

On a side note, I know I can request back the taxes they take out of my severance package. I also know there is some kind of waiver I can apply for if they do require recoupment. I would be very obliged if someone could push me in the right direction.

Another side note, am I able to apply for SSDI now before I seperate?

EDIT: Wasn't sure where to post this thread, if this is the wrong area please let me know.
 

usarmy68e

PEB Forum Veteran
Registered Member
I am not totally positive however my interpretation of the law is the reason we have to pay back the money to the VA is because of the double dipping, if the VA is not paying you for the disability because it is 0% then you should not have to pay back your severance, however if that rating changes in the future you could be subject to recoupment if not mistaken..
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Substantial editing to add references

Ref:
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35 * October 2018
VOLUME 7A, CHAPTER 35: “SEPARATION PAYMENTS”

350506. Recoupment From VA Compensation
The VA deducts disability severance compensation from any VA compensation for the same disability to which the member or member’s dependents become entitled. There are two exceptions:
A. No deduction will be made in the case of disability severance pay received by a member for a disability incurred in the line of duty in a CZ or incurred during performance of duty in combat-related operations (as designated by the SecDef); or
B. No deduction will be made from any death compensation to which a member’s dependents become entitled after the member’s death.
——
--------------------
Ref: M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits (Recommend reading Topic 3)

LINK to VA recoupment procedures <-----

Excerpt:
3. Instructions Unique to the Recoupment of Disability Severance Pay
"Before recouping disability severance pay, it is necessary to identify the disability(ies) for which the Veteran received this benefit. The best source for this information is the Veteran’s Physical Evaluation Board (PEB) report, which is normally included in his/her service treatment records (STRs).
If the PEB report is not included in the Veteran’s STRs, it might be located in his/her service personnel records. Use the table below to determine how to submit a request for the PEB report."

Another selected excerpt:
"Generally, if a Veteran received disability severance pay, VA must withhold from his/her monthly compensation an amount equal to the monthly compensation payable for the disability(ies) for which the Veteran received disability severance pay. VA continues to withhold this amount until it has recouped the amount specified in M21-1, Part III, Subpart v, 4.B.2.d.
Important:

  • The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies).

  • If a Veteran has multiple, severance-pay disabilities, each rated 0-percent disabling, and VA assigns a 10-percent disability rating to them under 38 CFR 3.324, no withholding is necessary for these disabilities until VA assigns a compensable rating to one or more of them, individually."
Ron
 

AWO2Hawaii

Registered Member
If a Veteran has multiple, severance-pay disabilities, each rated 0-percent disabling, and VA assigns a 10-percent disability rating to them under 38 CFR 3.324, no withholding is necessary for these disabilities until VA assigns a compensable rating to one or more of them, individually."
Ron
I'm assuming this says it's all. I'm also reading my Seperation letter and it states:

"If you recieve severance pay from the Services Department, you monthly VA compensation may be reduced by the amount of disability severance pay for the percentage(s) of the unfitting disabilities only. (IN MY CASE: One Unfitting disability at 0%)"
 

usarmy68e

PEB Forum Veteran
Registered Member
I'm assuming this says it's all. I'm also reading my Seperation letter and it states:

"If you recieve severance pay from the Services Department, you monthly VA compensation may be reduced by the amount of disability severance pay for the percentage(s) of the unfitting disabilities only. (IN MY CASE: One Unfitting disability at 0%)"
correct which means they should not be withholding anything in its own way due to the fact that it is rated at 0%, therefore the VA does not compensate you for this condition so they would not be withholding from you.
 
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