Reduce and Recoupment error. Already Paid It.

[cavscout1967]

Hello, I received a letter from the VA stating they propose to reduce my disability pay down to zero so that 12k in voluntary separation pay will be satisfied. However, I have already paid that. In 1997 I was awarded 10% and told in that award letter that the VA will withhold all payments until the 12k is satisfied. Lo and behold in 2008 I began receiving 10% checks. Now in 2020 I get this proposal because I never paid it according to them. I believe that this is related as to why. I am part of the EXCEPTION GROUP as I repaid prior to this software implementation. This is scaring the crap out of my wife and I and we rely on this money and it is now much higher than 10%. Has anyone seen this before? Advice?

III.v.4.B.1.d. Determining Whether VA Has Already Recouped Separation Benefits a Veteran Received

Before establishing a withholding to recoup a Veteran’s separation benefit, check the corporate record (by clicking on the MILITARY button in Share and selecting the MILITARY PAYMENTS tab) to ensure VA has not already completed recoupment.   If the corporate record shows recoupment is complete, claims processors must ensure the amount of benefits VA recouped matches the amount of the separation benefit the Veteran received.  If they do not match, treat the separation benefit currently at issue as unrecouped.   Exception:  If VA completed its recoupment of a Veteran’s separation benefit in the Benefits Delivery Network (BDN) (prior to conversion to VETSNET), such recoupment will not be evident in Share.

[Buck52]

I suggest you get a highly experienced VA Attorney WITH THIS EXPERTICE &, with access to the VBMS Also   you need to Request your C-file ASAP.

IF YOU HAVE PROFF YOU PAID ALL THIS BACK then nothing to worry about. (jmo)

[pacmanx1]

1 hour ago, cavscout1967 said:

Hello, I received a letter from the VA stating they propose to reduce my disability pay down to zero so that 12k in voluntary separation pay will be satisfied. However, I have already paid that. In 1997 I was awarded 10% and told in that award letter that the VA will withhold all payments until the 12k is satisfied. Lo and behold in 2008 I began receiving 10% checks. Now in 2020 I get this proposal because I never paid it according to them. I believe that this is related as to why. I am part of the EXCEPTION GROUP as I repaid prior to this software implementation. This is scaring the crap out of my wife and I and we rely on this money and it is now much higher than 10%. Has anyone seen this before? Advice?

Do not panic, file a NOD (NOTICE OF DISAGREEMENT). If you have the award letter you could submit that as proof. If you do not have a copy of the award letter you can call VA 1 (800) 827-1000 and ask them to mail, Email, or fax you a copy of that decision. You can ask for a hearing.  You could also ask the VA to do an audit of your payment history. When a veteran receives a letter of reduction, he/she has about sixty (60) days to file a NOD which should stop all recoupment until his/her hearing.

[pacmanx1]

VSI/SSB Recoupment

 

Waivers

This is not a debt, but rather a recoupment. We are required by law to recoup these separation payments; therefore, we cannot consider waivers.

Hardship

This is not a debt, but rather a recoupment. We are required by law to recoup these separation payments; therefore, we cannot consider waivers.

Defense Finance and Accounting Service > RetiredMilitary > plan > separation payments > vsi ssb recoupment (dfas.mil)

[broncovet]

Whoa, Hoss!  

    Consider posting the letter you received from VA, redacting name and address for clarification.  However: 

    1.  You can not file a NOD on a "Proposed Reduction".  (Nod's are filed on finally adjuticated decisions, you cant file a nod on a decision "in progress".)  

    2.  To hire an attorney, you need 1 or more denied benefits letters.  (There are some exceptions such as hiring an attorney to upgrade your discharge and the like.)  Source:  https://www.hillandponton.com/hire-attorney-represent-claim-va-benefits/

   Now, for what you CAN DO:

    1.  Write a letter to VA, send them your proof, along with an explanation letter.  Send it certified mail return receipt requested.  Your letter should be concise, and simply explain why this proposed reduction is inappropriate.  

    2.  ASK for a hearing if necessary.  A hearing will delay the Proposed Reduction.  (Optional)

    3.  Its ok to contact an attorney, or even a good idea, "Just in case" you need representation at your hearing.  (More likely:  If what you say can be documented, the VA will send another letter that your reduction wont go through, a month or so after you send in the letter.  Consider contacting the NVLSP:  https://www.nvlsp.org/

My opinion is they will suggest you write a letter, and perhaps ask for a hearing.  They may, however represent you at no charge.   

 

IN ANY CASE, read and understand the rules on reductions:

https://www.law.cornell.edu/cfr/text/38/3.344   AND:

https://www.law.cornell.edu/cfr/text/38/3.105

     If you have questions, post them here.  

Edited December 16, 2020 by broncovet

[cavscout1967]

I have an award letter from the VA dated 1997 that says we have made a decision on your claim and it goes on to say rate entitled $91.00, effective date July 1 1996, amount withheld $91.00.. On the second page it says "you received separation pay of $12,052.92 from the military. The law says we must hold back as many dollars in compensation pay as you received in separation pay. Once we've collected this amount you'll start receiving monthly payments".

Seems like this letter should be proof and when I look on ebenefits/VA.gov for pay it shows my very first payment was in 2008 for 10%. I will send that in and hopefully it is proof because I dont have any other.

Thanks for all the replies.

 

[pacmanx1]

This decision is your proof. Write a letter in response to your letter of reduction asking VA to stop your proposal and ask for a hearing.  Make sure you follow the direction of your proposal letter. Make sure you send a copy of this decision letter. 

Edited December 16, 2020 by pacmanx1