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vet101

Help Me Understand This Letter About Recoupment Pay

Question

I changed my status from married to single. When I got the letter saying my compensation has been adjusted for being single, this was in bold letters after that.

A review of your file revealed that recoupment of your disability severeance pay should have stopped when you were granted a disability rating of 100%. This matter will be adressed in another letter.

I was discharged for my wrist at 10% but now Im 100% due to wrist, ptsd, and a disk disease. Does this mean they want me to pay back the 20k or so in a lump sum? I've only been 100% for a year and a half or so.

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“A review of your file revealed that recoupment of your disability severeance pay should have stopped when you were granted a disability rating of 100%. This matter will be adressed in another letter. “

I have a different take on that....maybe VA owes YOU money.

We have had similar questions here at hadit, Check this whole thread out:

Ih part:

'jvretiredvet', on 19 Mar 2012 - 10:48 AM, said:snapback.png

This isn't about recoupment of the disability severance pay given to you, but rather recoupment of the income taxes that were withheld. If you have already amended your 2009 returns to recoup the taxes paid, you don't need read any further.


OK, you separated from service with disability severance pay in 2009; disability severance pay was a lump sum, with Federal (and state, if applicable) taxes withheld. As I recall, the standard withholding for FIT in this situation is 25%. This disability severance pay was reported on a W2.


When you filed your Federal and state tax returns for 2009, the disability severance pay should have been included in income. When you received the VA determination letter, according to Page 54 of the 2009 IRS Pub 17
,


If you receive a lump-sum disability sever-

ance payment and are later awarded VA disabil-

ity benefits, exclude 100% of the severance

benefit from your income. However, you must

include in your income any lump-sum readjust-

ment or other nondisability severance payment ·

you received on release from active duty, even if

you are later given a retroactive disability rating

by the VA. " (from above link)

I received a similar type of letter some years ago.

I received DIC as a widow,starting 20 years ago , on paper, but all of it was recouped every month by VA..

VA had to recoup my FTCA settlement from my DIC. I didnt see a DIC check for many many years.

When I reopened my SC death claim,in 2003 , the RO had to check something regarding my FTCA case with Regional Counsel and then the RC ordered them to stop the recoupment immediately and pay me what they had illegally withheld. (I had questioned the recoupment myself but the VA said their recoupment was legal----and I didnt fight that, but they were wrong)

When the VARO fulfilled the RC order, the recouped DIC they owed me totaled up to the tune of 40 thousand bucks in retro they had to pay me.

“recoupment of your disability severeance pay should have stopped when you were granted a disability rating of 100%”

The 'should have stopped' part means to me they will stop the deduction and might possibly owe you some retro back to your 100% EED.

I googled disability severance recoupment and 100% SC and other hadit posts popped up here too.

Are you a CRSC or CRDP vet? That could impact on what I stated above,but in any event I interpret that statement in your letter as so similar to my case that I do believe VA must stop the recoupment and possibly award you retro due to overpayment of the recoupment,since they awarded SC at 100%.

Hopefully others will chime in because we have had vets with similar situations too.

Edited by Berta

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Maybe this will help too:

Snakeman in that post link got his recoupment stopped too when he hit 100%.

More info here too

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I made an assumption here and might be wrong...if the recouped pay involved the same disability that you get SC at 100% for now , maybe this will link and BVA case will help:

Where the disability or disabilities 
found to be service connected are the 
same as those upon which disability 
severance pay is granted, an award of 
compensation will be made subject to 
recoupment of the disability severance 
pay.  Prior to the initial determination 
of the degree of disability, recoupment 
will be at the full monthly compensation 
rate payable for the disability or 
disabilities for which severance pay was 
granted.  Following initial determination 
of the degree of disability, recoupment 
shall not be at a monthly rate in excess 
of the monthly compensation payable for 
that degree of disability.  For this 
purpose the term "initial determination 
of the degree of disability" means the 
first regular schedular compensable 
rating in accordance with the provisions 
of 38 C.F.R. §§ 4.40 et seq. and does not 
mean a rating based in whole or in part 
on a need for hospitalization or a period 
of convalescence.  There is no 
prohibition against payment of 
compensation where the veteran received 
nondisability severance pay or where the 
disability severance pay was based upon 
some other disability.  Compensation 
payable for service-connected disability 
other than the disability for which 
disability severance pay was granted will 
not be reduced for the purpose of 
recouping disability severance pay.  

38 C.F.R. § 3.700 (a)(3) (1996).

http://www.index.va.gov/search/va/view.jsp?FV=http://www.va.gov/vetapp97/files3/9726050.txt

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Did that letter have any legal citations in it regarding the statement VA made?

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From personal experience i was released from the Army in 2007 with severance the va originally started recouping my severance pay for 4 years until I was awarded 90% the va stopped recouping the severance so it sounds like the VA is saying that they forgot to stop with holding for severance recoupment then to me i would think the va is saying they are going to do an audit on his account to verify there findings and then they will contact about any money owed to vet

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