VA Severance Pay Deduction

stanggolfer

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I’ve been medically separated from Air Force after 10 years of AD. My condition is considered unfitting, but I received 0% DOD and now 80% VA. I got discharged with severance pay. VA has been taking money out of my monthly check stating that they have to recoupe for the severance pay cause I can’t be compensated for the same condition from both. Does this sound right since I got 0%, I figured the severance would be mine to keep unless 10% or more from DOD? What, where is the documentation stating who’s correct? Thanks for the time and help.
 

RonG

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M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits
discusses the recoupment of severance pay from VA compensation

See --->this LINK

I did not review it this morning; however, I seem to remember 0% is discussed in the text.

Good luck,
Ron
 

RonG

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Full disclosure: I am not as familiar with this subject as I might be with others.

The following seems to address your situation:

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.

My interpretation: If an individual is rated at 0%, there is at least one disability that has been approved as disabling by the DoD for severance pay, although it is without a percentage higher than 0%. If the VA also rates the single disability for VA compensation purposes, then a recoupment should ensue (unless it is for a combat related disability.)

You might consider contacting the VA or a VSO concerning this matter.

Good luck,
Ron
 

stanggolfer

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Full disclosure: I am not as familiar with this subject as I might be with others.

The following seems to address your situation:

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.
My interpretation: If an individual is rated at 0%, there is at least one disability that has been approved as disabling by the DoD for severance pay, although it is without a percentage higher than 0%. If the VA also rates the single disability for VA compensation purposes, then a recoupment should ensue (unless it is for a combat related disability.)


You might consider contacting the VA or a VSO concerning this matter.

Good luck,
Ron

Ron,

Thanks for the info.

David
 

RonG

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Reference:
2. Determining the Amount to Recoup and Withhold From Monthly Payments

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


---->3. Instructions Unique to the Recoupment of Disability Severance Pay <----




END

Notes:
1. There are different types of separation payments. Ensure you review the Disability Severance Pay material.
2. The references cited are lengthy; it is impractical to paste into this post everything that pertains to Disability Severance Pay.

Ron
 

Stealthmanx2

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I know this is an old thread and I am in no way an expert. I had a guy that was starting to go through this and the way he was explaining was the severance was more like a interest free loan from the government. Once he was discharged a percentage of his paycheck would be garnished until that amount was paid back. I thought that was BS since that is the opposite of a severance.
 

RonG

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I know this is an old thread and I am in no way an expert. I had a guy that was starting to go through this and the way he was explaining was the severance was more like a interest free loan from the government. Once he was discharged a percentage of his paycheck would be garnished until that amount was paid back. I thought that was BS since that is the opposite of a severance.
Hello,

Recommend you review the other posts in this thread. 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. "

Ron
 

MilitaryBlake

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PEB Forum Veteran
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I, in the last several months, also made several threads regarding severance pay recoupment. I have had a military lawyer, several finance specialists, and a well-known VSO all come back and state that VA should NOT recoup $$ that was not double-paid. VA should ONLY recoup when a condition as been paid both on VA and DoD side. In my situation, I was 20% on DoD and well-over 100% for the VA. I know that does not make sense much, but when DoD conditions are taken away I still reach 100% VA. In my case (still AD awaiting separation) my severance should NOT be recovered (per all the references I gave) and I believe neither should yours.
 

RonG

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The law is at: LINK <---

VA M 21-1
III.v.4.B.3.h. Example: VA Assigns a 100-Percent Disability Rating to a Non-Severance-Pay Disability
Scenario: In a decision on a Veteran’s original claim for benefits, VA awards SC for
  • a severance-pay disability rated 50-percent disabling, and
  • a non-severance-pay disability rated 100-percent disabling.
Result: VA may not withhold any compensation to recoup the Veteran’s disability severance pay while the non-severance-pay disability is rated 100-percent disabling.

Note: The result in this example is the same, regardless of whether or not VA assigned the 100-percent rating on a temporary basis under 38 CFR 4.28, 4.29, or 4.30.

Ron
 
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