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Questions On Seperation Pay And Compensation

Guest joem


I was awarded 10% SC for Severe Lower back sprain during active duty (USN 1984-1992)

I was Denied 2nd re-enlistment due to Overfat status and given Seperation pay of about 6,700.00

Va states that I have to pay the seperation pay back then I will receive full benefits.

I was honrably discharged with Medical code 3T

This does not make sense to me I was denied re-enlistment for Overfat status not back injury

But Back injury did ultimately cause me to be overwieght as I could not perform as best I could

but passed the Yearly PT test

Anyone encountered this situation

Thanks for any advice ,


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  • HadIt.com Elder


I have no reply to why you were denied reenlistment, but you are required to pay back the seperation pay to the VA before they will pay you.

Have you thought about or filed for an increase with the VA?

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Yes I have thought about an increase, as 10% for my back condition just gets worse as I age

Thanks for your replyand I was just awarded the 10% a couple of days ago


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  • HadIt.com Elder

my brother in law ran into the same problem his back was hurt and his knee in a tank over the cliff accident in Germany back in the early 80's he took a large seperation pay, about 20,000, they took back every penny before he could begin drawing his VA compensation, then he had to file and amended tax return to get back the tax money he paid on the seperation pay as they taxed it, then the VA still collected it all back including the taxes he had paid out years earlier. Many vets over look that fact, once you have to pay it back you should get your taxes that you paid on it back and no they don;'t pay interest.

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