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Severance Pay - Retro Pay - And Disability Increase?


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Question

I separated from the Army due to a service connected disability. When I was discharged, I was paid severance pay. The VA requires that severance pay be paid back, therefore they have garnished my VA disability pay since separation ($100 per month).

My question is this:

My disability rating is about to be increased and I will be owed retro pay. Will the VA keep all of my retro pay to pay off my severance debt? OR will I actually receive the funds?

I was thinking they may take a percentage of it.

Have any of you experienced this issue?

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  • HadIt.com Elder

If the retro is enough to cover it they will most likely recoup it from that.

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  • HadIt.com Elder

If you have any kind of an agreement on the recovery, I believe they will follow thru with that. I believe most govt agencies recover at a rate of about 15%-30%, of your income amount, as they need to leave you with enough to survive on. However, this is just an educated guess. You should call the service center manager and ask.

pr

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If the increase is due to the reason that you were discharged (and received severance pay), they will keep the retro pay.....unless you have more retro then you currently owe them, then you will get the difference.

If you increase is due to another sc issue that you were not discharged for, then you shold get the full retro.

I am in a similar boat. I received approx $34,000 in severance in 1999. I was rated at 20% from the VA and they have been keeping my VA compensation since the beginning. Hell, I still owe them $5000 :)

Travis

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