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.

[cavscout1967]

Update: As got a letter stating they are still doing the withholding because I received separation pay and the never recouped it. HOWEVER, I did repay it as evidenced by the letters dated 1997 award 10% to be withheld until paid back. I placed a call to the VA and they have asked the RO to contact me within 5 days. What a crock of crap. The entire issue is this EXCEPTION (listed below) and the people who are working at the VA and just  clicking buttons and are not knowing about it and of course you have no way of actually talking to anyone who can actually fix the problem. I paid it all back PRIOR to this conversion and the first payment I got didn't even start until 2008 almost TEN years after the award. What a bunch of BS

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.

 

If a Veteran had a master record in BDN, claims processors may view data from the record by clicking on the PRECONVSN MASTER RCD button in Share.  Claims processors may not rely on data displayed on the STATUS (M11) screen, however, to determine whether VA finished recouping a Veteran’s separation benefit.  Instead, claims processors must review entries in the Offset – Recoupment section of BDN award prints in the claims folder to make this determination.

 

Notes: 

• If VA began recoupment of a Veteran’s separation benefit in BDN and continued recoupment after conversion to VETSNET, the balance of the separation benefit that was pending recoupment at the time of conversion will appear in the ORIGINAL BALANCE field on the
  • SEPARATION PAY tab, or
  • DISABILITY PAY tab (if the separation benefit is disability severance pay).
• The SEPARATION PAY tab and DISABILITY PAY tab are located on the AWARD ADJUSTMENTS screen in VBMS-A.

Important:  If a determination cannot be made as to whether VA has recouped a separation benefit, ask the local finance activity to assist in making the determination by performing a financial audit. 

References:  For more information on using

• Share, see the Share User Guide, and
• VBMS-A, see the VBMS Awards User Guide.

[Carl the Engineer]

I was/had to repay my involuntary separation pay before receiving any money from, basically, the defense department budget.  In a sense, VA and Army retirement, etc.

So, when I got out in '08, they gave me $64,000, after tax, $48,000.  In '09 I filed VA claims and won and my VA comp was withheld until 2014, when my after tax was satisficed.  I never received an official letter stating the debt was satisficed, but did have the letter from the VA showing my payments and when I started to actually get money in my account.

Now, in March, I will receive my non-regular military (Reserve) retirement.  I applied 3 months ago, and, I submitted two handwritten notes I found in my C-file, that indicated that my separation pay had been recouped.  One has a two hole punch mark on top like the slips that are in one's 201 file from back in the day, and the other one is labeled "VETSNET COMENSATION AND PENSION AWARD".  The retirement services excepted and approved my retirement.

Without the notes from C-file, not to sure how or if they contact each other directly, etc.

So, for you, I would peruse your C-file and see if it has documentation showing your sep pay was recouped.

If you don't have your C-file, go to your CVSO, County Veterans Service Officer's, office at the County Court House and have them look for a note saying you were recouped.  Heck, as long as you are there, tell them you issue.  That's what they are there for...

My story,

Hamslice

 

Edited December 17, 2020 by Hamslice
cause I can

[Carl the Engineer]

Also,  you could contact DFAS, Defense Finance Accounting Service, as that is where my retirement money is coming from.  They would have a record of your recoupment.  

Just sayin,

Hamslice