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How Will Back Pay Be Applied When My Claim Is Approved?

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I am currently pending a claim for PTSD due to MST. I'm pretty sure I am going to get it approved this time. I am currently service connected for back pain at 50%. Depending on how much they award me for PTSD I could be looking at 70% to 100% combined. I'm not concerned about the rating or the amount of back pay. My concern is this; for the last 7 years I have been on a non service connected pension. Recently there came a question as to whether or not I was entitled to it and due to really bad help with my S.O. who didn't file my paperwork in the time required, my income was reduced down to my compensation rate of 50%. I am appealing that due to being entitled to the pension and have sent in the required documents and am pending a hearing to have my pension reinstated. So, my question is this, if my PTSD claim is approved, how will they determine my back pay since I am pending a hearing for my pension to reinstate the pension and remove the overpayment of $45,000? Will I get a payment since the overpayment is pending a hearing or will I lose all of my back pay and have to wait until the hearing is held and a determination is made? I am a single mom trying to raise a toddler on $890/mon. My stress levels are through the roof. Any help you can provide me would help me make some decisions for myself and my son. Thank you in advance.

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  • HadIt.com Elder

Any back pay will be offset by any pension amount they have paid to you. If the back pay is more than the $45k you owe, you will receive the difference between the back pay and what you owe. If you win at the hearing, they pay it back to you. You are wise to fight the pension issue. If you receive any HUD, Section 8 or food stamp funding, that is usually not recovered.

If you aren't receiving SSDI, I would file for it, tomorrow. Most back issues require that you be able to lie down frequently, throughout the day, and most employers won't put up with that. Then add the PTSD and you are disabled. jmo


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Thank you for your response Phillip. My pension has been reinstated reducing the overpayment to 20k. I did apply for a waiver and the waiver is still pending. I just had my comp and pen exam last week and am currently waiting for a decision via DRO review. They supposedly are expediting my claim, even though I have been waiting 3 years for a decision on this.... I was told that if I filed for a waiver that the VA could not withhold any payments until the waiver had been processed and I was given 30 days to respond to the decision on that. Depending on the decision for the PTSD the backpay could potentially pay back the overpayment. I was hoping to get some back pay and I am wondering if the VA decides in my favor if I can request a payment plan for part of the overpayment so I can get part of the back pay to pay some debts and fix my car. I'm not sure if you would know the answer to that question or not.

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  • HadIt.com Elder

When I won my 100% SC for PTSD, 10yrs retro, they deducted the pension payments, since they had been paying me pension during my appeal period. I still came out of it w/a little under a $100k, retro. You can request they allow you to pay back the pension via time payments and they "may" allow it depending on how much your award and retro are/is. It'll be their decision. jmo


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