MEB, VA Pay, Severance PLEASE HELP

F

frequentlyinpain

PEB Forum Regular Member
Registered Member
Was sent through medical evaluation board
Given the ratings of 20 DOD and 90 VA
My dd214 says “disability severance pay, non combat related”. My question is will the VA take my whole monthly composition to recoup the severance or just a portion? Please help
 
frequentlyinpain said:
Was sent through medical evaluation board
Given the ratings of 20 DOD and 90 VA
My dd214 says “disability severance pay, non combat related”. My question is will the VA take my whole monthly composition to recoup the severance or just a portion? Please help
Click to expand...
The full amount of the Severance Pay will be recouped. I will post the rate in a few minutes.

Ron
 
Hello @frequentlyinpain

M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits
--->LINK


III.v.4.B.3.b. General Policies Regarding Withholdings to Recoup Disability Severance PayGenerally, 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.
  • Withhold the additional benefits payable because of application of the bilateral factor if
    • the initial, compensable rating included application of the bilateral factor, and
    • entitlement to the bilateral factor was based exclusively on severance-pay disabilities.
Ron
 
Thank you so much, great! So if I read that correctly, the VA will only deduct what the DOD and Army both rated me for (20% for my knee) from my monthly compensation? So like $280?
 
frequentlyinpain said:
Thank you so much, great! So if I read that correctly, the VA will only deduct what the DOD and Army both rated me for (20% for my knee) from my monthly compensation? So like $280?
Click to expand...
That is my interpretation as well.

The collection process will continue until the entire severance pay is repaid.

Ron
 
Also, since that condition is rated by the VA you don't have to pay income tax on the severance. If you can get DFAS to recognize that prior to taking it out, you'll get the full amount. If they take it out, you can get it back via tax refund (that's what i did). There is some other way to request it back via DFAS but I didn't know about that at the time and just filed for the refund during my tax filing.
 
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