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SGT. SHAFT: Recouping payment from a vet
Question of the Day
Dear Sgt. Shaft,
Here is good one for you since this repayment of separation pay was not well planned.
I received separation pay and then retired from the Army.
The VA has recouped my disability pay in accordance with the law.
The Army Finance Center has also recouped my retirement pay.
The problem is that both of these organizations do not know how much either one has recouped from me.
If the recoupment is taken out in September 2010, they owe me.
I have talked to both organizations and get nothing but the runaround.
If this goes on, then instead of collecting $8,400, they will collect $16,800 from me.
Those in the know at the VA tell me that the law prohibits duplication of benefits per 38 CFR 3.700. VA is responsible for recouping separation pay under Title 10 U.S.C 1174 from the veterans disability entitlement. Once the total amount is withheld, VA will release monthly entitlement.
VA policy provides guidance on handling recoupment of separation pay by both VA and the service department. The steps are as follows:
• VA will ask the service department to confirm if it is recouping separation pay. If the service department is recouping, VA will verify the amount, and give consideration only to the amount actually recouped.
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About the Author
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