Question On Separation And Severance Recoupment For 2 Seperate Periods

[j007bailey]

My question is

I was in the USMC from 1995-1999 and received a medical discharge and a 0% rating from the USMC for depression but was awarded a little over $10,000 in disability severance pay. Later on in 2004 I joined the Army National Guard with a medical waiver and later transitioned to AGR (Active Guard and Reserve) and was discharged form AGR with aprox $27,000 in Separation pay after 5 years of AGR duty.

I am aware that I will have to repay this separation pay in full before my VA disability payment kicks in. However will the initial $10,000 in disability severance pay be required to be repaid as well even if I was granted a waiver and returned to service and was only initially rated by the USMC at 0%?

Thanks for any info on this.

[carlie]

However will the initial $10,000 in disability severance pay be required to be repaid as well

even if I was granted a waiver and returned to service and was only initially rated by the USMC at 0%?

Welcome.

I believe the answer will be YES - this also will need to be re-paid.

JMHO

[Carl the Engineer]

My question is

I was in the USMC from 1995-1999 and received a medical discharge and a 0% rating from the USMC for depression but was awarded a little over $10,000 in disability severance pay. Later on in 2004 I joined the Army National Guard with a medical waiver and later transitioned to AGR (Active Guard and Reserve) and was discharged form AGR with aprox $27,000 in Separation pay after 5 years of AGR duty.

I am aware that I will have to repay this separation pay in full before my VA disability payment kicks in. However will the initial $10,000 in disability severance pay be required to be repaid as well even if I was granted a waiver and returned to service and was only initially rated by the USMC at 0%?

Thanks for any info on this.

There is some good news here though, you should only have to pay back the "after tax" amount, not "in full" as you stated. If the recoupment comes from retirement monies, then you have to pay all of it back, however, if the VA pays it back, you only pay the after tax amount. Thats the way it is working out for me.

Hamslice

[Carl the Engineer]

Here is where the information is:

M21-1MR, PART III, Subpart v, Chapter 4, Section B

Hamslice