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?

[pacmanx1]

As you can see this is very complicated and it really depends on what and how VA is recouping your severance pay.  I understand that VA should be collecting a portion of your 100% minus any taxes. Yes, I understand that VA funds are not taxed but when I was given my severance pay I was taxed and had to inform VA not to collect the tax that I never received from my severance pay.  Not sure what your DSP was for, not sure what amount VA is collecting, not sure if you are considered a combat zone veteran. If you meet the combat zone veteran criteria, you may have a chance but believe me the government will try their best to get their money back. 

[Jake40]

On 5/13/2020 at 12:25 PM, deedub75 said:

It could be but that scenario is talking about an original claim in which there’s 50% severance pay disability and a 100% non-severance pay disability. 
 

An original claim would be the very first claim submitted and not any subsequent claims. 

 

On 5/13/2020 at 12:25 PM, deedub75 said:

It could be but that scenario is talking about an original claim in which there’s 50% severance pay disability and a 100% non-severance pay disability. 
 

An original claim would be the very first claim submitted and not any subsequent claims. 

I have this, 

 

On 5/13/2020 at 12:25 PM, deedub75 said:

It could be but that scenario is talking about an original claim in which there’s 50% severance pay disability and a 100% non-severance pay disability. 
 

An original claim would be the very first claim submitted and not any subsequent claims. 

I have this

[Jake40]

On 4/26/2020 at 6:34 AM, pacmanx1 said:

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/

 

I was injured in combat training doesn’t that mean I don’t have to pay it back.?

[Buck52]

I am thinking no you don't have to pay it back if your an injured combat veteran during a war/conflict operation  or injured during a combat training exercise. 

check this link out  : Source Strategic Veteran

https://strategicveteran.org/blog/do-you-owe-your-severance-pay-back-to-the-va/

 

[pacmanx1]

Not knowing the whole story of what you are service connected for and how you were service connected and what your rating decision says about your disability and the recoupment. If I were you I would be contacting either VA or DFAS to ensure I was getting the whole story. We can say this or that and it looks like something is off and you shouldn't have to pay but we don't have all the facts.

https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/DoD-Disability-Severance-Pay-?serv=122

https://www.dfas.mil/customerservice/

[Jake40]

On 4/27/2020 at 4:56 AM, HeatherW said:

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?

 

 

I didn’t sign a contract for a loan.

how can I owe thousands of dollars for a loan if they didn’t tell me I had to pay it back and I didn’t sign a contract for a loan?!