Recouping Separation Pay

[Dtomlinson]

I was wondering if anyone could tell me if the VA will finally recoup my separation pay. I was separated from the Army for severe knee pain and instabilty rated at 0%. The VA also rated my knee condition at 0%. I was awarded 70% for sleep apnea and major depression. I assumed that because both the Army and the VA rated me at 0% that they would not recoup my sep pay and they have not. I never really agreed with either the Army or the VA wih their 0% because my knee was messed up and has been ever since the very first sugery...but I went with it anyway...now my back is messed up and my knee has gotten worse. If I file for an increase for my knee and try to connect my back to my knee will the VA then recoup for my knee...I am also thinking about filing with the PDBR and try to get the Army to award a medical retirement instead of the 0%....I truly feel that I was low balled and that they rated my knee wrong...... (Two complete ACL Replacement surgery's and removal of my meniscus rated at 0%???)

[Dtomlinson]

Springfield....you?

Brother where you at in Missouri?

J

[Carl the Engineer]

Dtomlinson,

I could be wrong, but I hate to say it, your checks/deposits may stop. As I understand it and also in my case, you can not receive VA compensation or retirement moneys until your separation/severance/readjustment pay has been repaid.

The only exception is a hardship DFAS letter that came out last year where you can request exception and they will only recoup up to 40% of you monthly compensation until it is satisfied. However, I am not eligible.

Also, if you had multiple periods of service, i.e., you where in the service and you got out and "lets say" you claim and received 40% disability. Then later you returned to service for a period of time and then again separated and received an additional 20% disability for that time and also received separation pay the that later period, you would still receive your 40%, however you would not receive the 20% until you satisfied your separation pay for that second time in the service.

That said, they may have overlooked your debt.

You could call the 800 number and ask them if you have a dept. They will tell you. And you could hear a "Oh oh".

I really hope you are correct, but I don't see it. My comp start date was 8/2008. Don't see my first check/deposit until 1/2012.

Hamslice

[Dtomlinson]

Hamslice,

I know it is weird and I realy wondered about myself, until I found the information. In order for the VA to recoup severance pay then you must be receiving compensation for the disability that caused the severance. The Army specifically did not rate my other conditions because if they did then I wold have rated more than 30% and would have received a retirement vs separation. Then the Army not the VA would be paying me. The Army and the VA both rated my disability at 0%(the disabiity that caused the severance). I can not be compensated at 0% so there is nothing for them to recoup from at this time. Again when the VA determins the amount to recoup they can only recoup up to a max of no more than the total compensation for the disabilty being compensated for. The Army did not separate me for Sleap Apnea, major Depression , Hypertension, Shoulder Condition etc...Now, If I file for an increase from 0 to whatever for my knee then the VA will begin recoupment at that amount...but I will still receive Compensation for all of my other compensable disabilities...

Did you receive a rating for the disabilty that caused your severance? Do you have other disabilities that are or were rated?

David

Dtomlinson,

I could be wrong, but I hate to say it, your checks/deposits may stop. As I understand it and also in my case, you can not receive VA compensation or retirement moneys until your separation/severance/readjustment pay has been repaid.

The only exception is a hardship DFAS letter that came out last year where you can request exception and they will only recoup up to 40% of you monthly compensation until it is satisfied. However, I am not eligible.

Also, if you had multiple periods of service, i.e., you where in the service and you got out and "lets say" you claim and received 40% disability. Then later you returned to service for a period of time and then again separated and received an additional 20% disability for that time and also received separation pay the that later period, you would still receive your 40%, however you would not receive the 20% until you satisfied your separation pay for that second time in the service.

That said, they may have overlooked your debt.

You could call the 800 number and ask them if you have a dept. They will tell you. And you could hear a "Oh oh".

I really hope you are correct, but I don't see it. My comp start date was 8/2008. Don't see my first check/deposit until 1/2012.

Hamslice

[Dtomlinson]

Hamslice,

Did you have additional disabilities rated by the VA...other than the disability that caused your severance from service? If you did then the VA may have made a mistake when they determined your (monthly) recoupment amount. For Example:

Condition A (condition that caused the severance) = 20%

Condition B (not rated by your service)= 50%

Condition C(not rated by your service)=30%

Total Combined Compensation would equal 70%

The VA would then determine the compensation for your situation rate at 70% Lets say $1461

Then the VA would determine the compensation for your situation at 20% Lets say $300

1461-300 = $1161 this would be the amount you should receive monthly until your severance pay has been satisfied.

Note: The above amounts are not accurate from the compensatin table. Also, the recoupment amount will never exceed 20% even if the disability that caused your severance from service were to increase......

This is my understanding of how they determine the monthly recoupment amount...I will add that I did ask when my original award was granted about paying back the severance and I did not get an answer.....

David

Dtomlinson,

I could be wrong, but I hate to say it, your checks/deposits may stop. As I understand it and also in my case, you can not receive VA compensation or retirement moneys until your separation/severance/readjustment pay has been repaid.

The only exception is a hardship DFAS letter that came out last year where you can request exception and they will only recoup up to 40% of you monthly compensation until it is satisfied. However, I am not eligible.

Also, if you had multiple periods of service, i.e., you where in the service and you got out and "lets say" you claim and received 40% disability. Then later you returned to service for a period of time and then again separated and received an additional 20% disability for that time and also received separation pay the that later period, you would still receive your 40%, however you would not receive the 20% until you satisfied your separation pay for that second time in the service.

That said, they may have overlooked your debt.

You could call the 800 number and ask them if you have a dept. They will tell you. And you could hear a "Oh oh".

I really hope you are correct, but I don't see it. My comp start date was 8/2008. Don't see my first check/deposit until 1/2012.

Hamslice

[john999]

I believe I would try to get every bit of compensation I could get, and just keep my mouth shut about the severance pay unless the VA is tacking on interest. Let the VA discover their own error unless there is an interest penalty. If you have to pay it back then you have to pay it back, but don't let that stop you from trying for 100% if you can get it. You get compensation until you die. Your severance pay will be payed off pretty quick even though it hurts for a while. Sooner or later from what you say you will not be able to work. 70% is not even half of what you get if you get TDIU or 100%.

[carlie]

M21-1MR.

http://www.benefits.va.gov/warms/M21_1MR3.asp

Scroll down to : Chapter 4 - Elections, Waivers, and Recoupments

Click on:

Section B - Recoupment of Readjustment, Separation, and Severance Pay