Separation pay

[Jake40]

I was medboarded in 2013 and during the process we all worked with Peblos and received our va rating while still enlisted through out the medboard process. I received disability separation pay too also. I was 10% dod and 80% va. Now I’m 100%p&t from a recent increase. And now 7 years later they say I must pay it back. They never once told us we had to pay it back. Has anyone else dealt with this bs?

[HeatherW]

This is happening to me as we speak.  I was medically discharged in 1997 - got severance pay for depression.  I recently filed a claim in December and was awarded 70% for depression in April.  I knew they would recoup the severance pay because it's double dipping if the condition you got the pay for is exactly the same condition you get VA compensation for.  They gave me 3 months of backpay and then sent me a letter saying they will start recouping the money in August 2020 and complete the recoupment in April 2021.

 

Did your increase include a different diagnosis?  They only recoup if the diagnosis code is exactly the same as what you were given severance pay for.  Maybe the diagnostic code has been changed?

 

 

[ShrekTheTank]

Why are they saying they want you to pay back your disability pay?  I have seen mention of this before, but it typically does not hold water.  Can you post the letter but redact your personal information?

Disability pay is not something you have to pay back.  

[GBArmy]

Doesn't sound correct; post your letter as Shreknsuggests.

[pacmanx1]

Unfortunately it is the law but don't take my word for it.

Veterans Law

Separation Pay & VA Disability Compensation

July 14, 2017

 

I received a letter saying that separation pay will soon be deducted from my VA disability compensation. Can VA really do this?

Unfortunately, in most cases the answer is ‘yes.’ VA is legally required to withhold your disability compensation pay if you received separation pay when you separated from the military and then were later awarded disability compensation. This includes involuntary or voluntary separation pay, severance pay, and what was formerly called “readjustment pay” (now included under severance pay). There are some exceptions to this rule for Disability Severance Pay (“DSP”) (see questions below). VA uses the term recoupment to describe this process of deducting separation pay from other benefits (like disability compensation or retirement pay).

 

I served in a combat zone and got Disability Severance Pay. Will VA recoup my DSP?

It depends on when you were separated from service. Thanks to the passage of a Public Law on the issue, VA is not allowed to recoup disability severance pay from VA disability compensation if you…

• Separated from service on or after January 28, 2008, and
• Incurred the disability for which you received the disability severance pay in the line of duty in a combat zone or during combat-related operations.

Meeting the second requirement requires official recognition that you were in a combat zone and were harmed in an armed conflict. DoD (not VA) decides whether a disability was incurred in the line of duty in a combat zone or during combat-related operations. This information is usually included in the decision letter regarding your disability severance pay.

I have multiple service-connected disabilities, but I only received Disability Severance Pay for one? How much will VA recoup?

When you receive disability severance pay, DoD will specify which disability (or disabilities) the disability severance pay is intended to cover. If you are later granted service connection for disabilities that are not related to your disability severance pay, VA is not allowed to withhold more than the amount to which you are entitled based on the non-severance-pay disability/disabilities. Essentially, VA can’t recoup the disability severance pay from the money you get for disabilities that were service connected after separation.

Can I get a waiver for the recoupment (like I can with debt owed to VA)?

Unfortunately, VA debt is different from VA recoupment and VA will not consider waivers for separation pay recoupment.

https://cck-law.com/blog/separation-pay-va-disability-compensation/

 

Edited April 26, 2020 by pacmanx1

[deedub75]

It happens all of the time. 

[Buck52]

15 hours ago, Jake40 said:

I was medboarded in 2013 and during the process we all worked with Peblos and received our va rating while still enlisted through out the medboard process. I received disability separation pay too also. I was 10% dod and 80% va. Now I’m 100%p&t from a recent increase. And now 7 years later they say I must pay it back. They never once told us we had to pay it back. Has anyone else dealt with this bs?

I believe you can request this recoupment waiver based on the time limits that have occured 7 years late, they  over looked this time  and should have settle this within 2 years after seperation  and you can also mention it will be a hardship for you and your family to pay this back after7  years.

I read something like this a few years ago  but I can't remember where or what it was I read about it? but it was how to not have to pay recoupment pay after so many years have passed and your getting VA SC Disability... this means  that your disabled and they can't touch your disability pay  other than if they prove fraud or you shown improvement  but this is for the 1st  consecutive ten years  after that  that can't get your sc disability pay  other than they prove fraud against you.