Paying back Severance Pay?

J

JohnDoeUSMC

PEB Forum Regular Member
Registered Member
I received my findings and got 100% VA/20% DOD. I will be separated with Severance.

I spoke to my lawyer and VA MSC yesterday and they stated that I will receive severance, but I won't have to pay it back.

They said that this is because my other referring conditions (excluding my DOD condition) still put me above 100% and because of that, I would not have to pay back my severance. They said it was written in some VA regulation that they would not take a portion of my VA disability check because of this.

It was my understanding that you only did not have to pay back severance if it was combat related... but now I am hearing this.

Anyone know anything about this? Is it true?
 
JohnDoeUSMC said:
I received my findings and got 100% VA/20% DOD. I will be separated with Severance.

I spoke to my lawyer and VA MSC yesterday and they stated that I will receive severance, but I won't have to pay it back.

They said that this is because my other referring conditions (excluding my DOD condition) still put me above 100% and because of that, I would not have to pay back my severance. They said it was written in some VA regulation that they would not take a portion of my VA disability check because of this.

It was my understanding that you only did not have to pay back severance if it was combat related... but now I am hearing this.

Anyone know anything about this? Is it true?
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If you can get to 100% VA without needing the unfitting condition's % then yes. No recoupment of Severance. The reason for recoupment is that by law you can't get paid twice. So if you needed the % for the unfitting condition to get 100% VA then you are getting paid 2 times. Once via severance and another time by getting VA compensation for that condition.

So you are good to go! You will get your severance and all of your VA compensation for being 100% VA.
 
Provis said:
If you can get to 100% VA without needing the unfitting condition's % then yes. No recoupment of Severance. The reason for recoupment is that by law you can't get paid twice. So if you needed the % for the unfitting condition to get 100% VA then you are getting paid 2 times. Once via severance and another time by getting VA compensation for that condition.

So you are good to go! You will get your severance and all of your VA compensation for being 100% VA.
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As always, you are incredibly helpful. Thank you. This is great news for me.
 
Provis said:
If you can get to 100% VA without needing the unfitting condition's % then yes. No recoupment of Severance. The reason for recoupment is that by law you can't get paid twice. So if you needed the % for the unfitting condition to get 100% VA then you are getting paid 2 times. Once via severance and another time by getting VA compensation for that condition.

So you are good to go! You will get your severance and all of your VA compensation for being 100% VA.
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But will he be able to medically retire (P&T) if he receives severance?
 
Rich008 said:
But will he be able to medically retire (P&T) if he receives severance?
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P&T is decided by the VA and one does not have any influence over the other. If you have 100VA rating and all ratings that combine to make 100% are marked as static by the VA you will be P&T.

So whether severance or medical retirement that has absolutely no bearing on the VA's ratings and total combined ratings to include P&T.
 
Provis said:
P&T is decided by the VA and one does not have any influence over the other. If you have 100VA rating and all ratings that combine to make 100% are marked as static by the VA you will be P&T.

So whether severance or medical retirement that has absolutely no bearing on the VA's ratings and total combined ratings to include P&T.
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Thanks fot that. My wife is in a similar situation. She’s on medboard with 10% DOD, but we keep getting conflicting answers that she will get severance and have to pay it back. I tried to look up an instruction online, but I cannot find it. And yes, if they deduct her DOD to her VA rating, it would still equal 100.
 
Rich008 said:
Thanks fot that. My wife is in a similar situation. She’s on medboard with 10% DOD, but we keep getting conflicting answers that she will get severance and have to pay it back. I tried to look up an instruction online, but I cannot find it. And yes, if they deduct her DOD to her VA rating, it would still equal 100.
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If she has 100% rating without needing that 10% for which severance is being paid she will not need to pay it back. The issue you are having is that most people have no clue all of the ins and outs of this process.
 
Provis said:
If she has 100% rating without needing that 10% for which severance is being paid she will not need to pay it back. The issue you are having is that most people have no clue all of the ins and outs of this process.
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i agree. I appreciate it
 
Rich008 said:
Thanks fot that. My wife is in a similar situation. She’s on medboard with 10% DOD, but we keep getting conflicting answers that she will get severance and have to pay it back. I tried to look up an instruction online, but I cannot find it. And yes, if they deduct her DOD to her VA rating, it would still equal 100.
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Give this a read...

"
7. Instructions Unique to the Recoupment of Disability Severance Pay, Continued


VA may not withhold any compensation to recoup the Veteran’s disability severance pay while the nonseverance-pay disability is rated 100- percent disabling.

 
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