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Separation pay

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Tucker

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Question for the forum, I’ve been receiving VA compensation for about 3 years after retiring 20 years active/reserve. I did 10 years active got out on HYT in 1996 came back in 2009 as a reservist and did more active than reserve time so I retired on active duty. After my first 10 years I was involuntary separated due to HYT and received a $16,000 separation pay. I received my determination yesterday on my rate increase and received 100% P@T but in the package it mentioned the 16,000 separation pay from 1996 and they will be with holding benefits. So with that does it mean I won’t receive any compensation till the 16,000 is payed back or will I get time to prepare or will they take a percentage of my benefits. Unfortunately I had to resign from my job 2 weeks ago due to my disabilities and our only income is my retirement pay and va compensation so this will put us in a very tough situation financially. If anyone has any insight or guidance it would be greatly appreciated, thank you.

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Here’s more than you want to know. I can’t explain it, though, I don’t work in finance or pension mgt. 

 

https://www.benefits.va.gov/warms/docs/admin21/m21_1/mr/part3/subptv/ch04/m21-1mriii_v_4_secb.doc#_c.__Determining

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This is a complicated one. That to be honest I don't know much about. Maybe other hear my have more knowledge about it the me. 

Were you medically retired in 1996? 

Hear an example. Say you are medically retied the Army offers to give you $XXXX dollars a mo. for 20% Than you apply for VA benefits and the VA gives you 100%. Unless you will be given a choice to waver taking the Army Medical retirement and take only the VA disability pay. ( Depending on your rank at the time of your medical retirement the VA disability will always be more.)

I guess what I don't understand is what exactly was the $16,000 for? it bearing in 1996 it seams like to much time has passed.

If you can could you take a sharpie and block out your info in the letter and post it hear? Sometimes others including my self have more experience reading them. We will focus on stuff you miss because you are looking at the wrong thing.

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Your right about the above brokensoldier244th TMI (To much information) I converted it to a PDF and posted it below.

Recoupment of Separation Benefits.pdf

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1 hour ago, Tucker said:

After my first 10 years I was involuntary separated due to HYT and received a $16,000 separation pay.

I would say don’t let the letter upset you. $16,000 is a lot of money but compared to being paid at the 100% rating it is not that much. If you think about it, if your claim was pending for at least one full year, your back pay will/would recoup (repay) that $16,000 in just six (6) months. It also depends on what your rating was prior to this new award. Have you checked your bank account?

What was your rating prior to your 100%?

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