No recoupment of Disability Severance Pay?

[BrokenMedic]

Ok Air Force just finished my MEB and about to separate with severance pay. 100% VA and 10% DOD so ODC explained to me that recoupment would only be for my 10% “unfitting” condition which will be like $152ish a month or around there.

Now here is the kicker…I spoke with my VA rep and he said he had to do some more research but there was a bill that they were trying to pass that if you are 100% disabled then they would NOT recoup the severance pay. He said he had 3 members all 100% that just recently separated and all of them called him to tell him that they were not having recoupment being taken out if their pay.

Anyone know of new legislation that was passed about this? Very interested if this is true or not.

 

[RonG]

Hello @BrokenMedic

I am unaware of new legislation, but here is the current recoupment info.

Recoupment of Disability Severance Pay:
Here is some information from the VA regarding recoupment.
M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits

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

 

[BrokenMedic]

Hello @BrokenMedic

I am unaware of new legislation, but here is the current recoupment info.

Recoupment of Disability Severance Pay:
Here is some information from the VA regarding recoupment.
M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits

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

Thanks for the info. Really appreciate it.