NATHAN.Y.OLIVAS --Question about Recoupment of Severance Pay (Reduction of VA Compensation)

[RonG]

@NATHAN.Y.OLIVAS @Guardguy11

Case: NATHAN.Y.OLIVAS
Well good news is an update. PEB board came back with an unfit finding with a 20% DoD and 90% Va. If I take the severance pay will it dramatically reduce the amount the va will give me monthly? I am E4 USMC, with 6 years 2 months active.

Comments.

Example of the process:
VA compensation at 100% $3100 (example amount)
Disability severance pay includes a 10% rating that is also part of the VA rating @100%. The amount of the dual payment is $120 (example figure).
The $3100 VA compensation will be reduced by $120 each month.

Recommend you review the posts in this thread -----> VA Severance Pay Deduction

If one receives severance pay and then receives VA compensation that includes the same disability, then that amount will be recouped each month from the VA compensation.

"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. "
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Long version:
Ref:
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 Pay

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. 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