Extent of VA deductions against separation pay

[aoneinsun]

I was involuntarily separated from active Air Force in the Reduction In Force measures undertaken last year. I received a separation payout last year (reduced by taxes of course). I've heard that the full gross amount of the separation payout will be recouped. Thus, VA payments for a disability (which I am in the process of being rated for) will be withheld until the separations payout is fully recouped.

My question is, does the VA withhold disability benefit payments for the full separation amount (the gross amount), or do they withhold payments for the full separation amount less taxes that had already been withheld at the time of the payout? If it is indeed the full gross amount, then I could be waiting quite a long time to see any payment from the VA. Note, in my case this was a involuntary "full separation pay" and not a disability type retirement situation (if that makes a difference). Any clarification much appreciated!

[Carl the Engineer]

I too was involuntarily seperated, in 2008.  I did have to pay back my seperation pay, which was withheld from my disability pay from the VA.  However, you do not have to pay back the gross amount, only the net after taxes.  

Now, if I was unable to get a VA disability, my sep pay would have been withheld from my reserve retirement at the gross amount, at age 60, but thats a different story.

It took me four years until I recieved my first comp check (deposit).

If you call Betty, she will tell you when you will recieve your first deposit (or portion of), month and year, etc.

I kept upping my VA comp rate, which would shorten the timeframe.  It was going to be 7 or so years at first.

Hope this helps,

Hamslice

[aoneinsun]

Wow, that is extremely helpful. I'd heard some chatter, but didn't know for sure how how much they really recoup. Thanks much for relating your experience.