Va Fl 10-46

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NOTE:

VA_Fast_Letter_10-46.pdf

 

DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

Washington, D.C. 20420

October 28, 2010

Director (00/21)

All VA Regional Offices and Centers

Fast Letter 10-46

 

SUBJ: Processing Awards Involving Voluntary Separation Pay

 

 

Purpose

 

This letter provides procedures for processing awards involving Voluntary Separation Pay (VSP).

 

 

Background

 

VSP, under 10 U.S.C. §1175(a), is paid to eligible members of the armed services who are voluntarily separated from active duty. To prevent concurrent receipt of benefits, the law requires the Department of Veterans Affairs (VA) to recoup from VA disability compensation benefits the amount of VSP paid to the Veteran (less the amount of federal income tax withheld). This recoupment applies to Veterans of all branches of the armed services who are separated with VSP and receive VA disability compensation benefits. (See Exceptions to Recoupment section.)