Recoupment

bigroyce84

Member
Registered Member
I was informed that the VA never recouped my severance so my retirement would be deducted. To the best of my ability to remember 10 years ago my VA compensation was withheld from me; however, the VA says that I have been paid and that there had been no recoupment. I was under the impression that all severance was recouped if you receive VA compensation. The VA rep says that's not always the case. Can someone enlighten me as to what those reasons would be that the VA wouldn't recoup? The VA rep couldn't tell me.
 
VA wouldn't do a recoupment if the disability happened in a combat zone, but DFAS would still have to once you were changed to retirement. Or if they made a mistake, they do that sometimes.
 
I was informed that the VA never recouped my severance so my retirement would be deducted. To the best of my ability to remember 10 years ago my VA compensation was withheld from me; however, the VA says that I have been paid and that there had been no recoupment. I was under the impression that all severance was recouped if you receive VA compensation. The VA rep says that's not always the case. Can someone enlighten me as to what those reasons would be that the VA wouldn't recoup? The VA rep couldn't tell me.
Were you medically retired, NG/Reserve retired, TERA, or normal retirement?
 
I was informed that the VA never recouped my severance so my retirement would be deducted. To the best of my ability to remember 10 years ago my VA compensation was withheld from me; however, the VA says that I have been paid and that there had been no recoupment. I was under the impression that all severance was recouped if you receive VA compensation. The VA rep says that's not always the case. Can someone enlighten me as to what those reasons would be that the VA wouldn't recoup? The VA rep couldn't tell me.

The VA can recoup only the amount of what the disability that caused your separation. If you were separated with a knee condition and the VA rates it at 20% and you have other none separation disabilities that total you at 70%...then the VA can only recoup at the 20% rate. Its also recouped at the initial rating of 20% and does not increase. Now lets say the VA did not rate the disability that caused your separation then you get medical retirement the separating service will recoup the total amount of separation pay less taxes unless your disability was combat related then they will recoup nothing. Hope this helps
 
I was medically retired through the PDBR process in August of 2015. I got out in '05 but from my memory, whatever that's worth, I don't remember being paid for 6 or so months because they were withholding for my severance. And the only VA compensation I have received is what I was med boarded out on. And it wasn't combat related. I have them doing an audit now because I don't believe that they have it correct. I was discharged in Dec. of '05 and they said they started paying me in Jan. '06. Hardly possible considering they take 3 or more months to even make a decision. But I guess we will see what they say through the audit.
 
I received a severance when I was initially dropped to 20%, the VA started recouping that in 2012. To fast forward...I went through an PDBR and now officially retired. DFAS and VA I guess aren't communicating because now DFAS is recouping monies as well as VA. DFAS has my original balance showing on my retirement statement as if I never paid any back. DFAS stated that they need proof from VA that I've been paying it back. The problem that I have is that VA stated that they sent a letter to DFAS weeks ago showing proof (balance..etc). I tried to get VA to email it to me or fax they said their system wont allow them to... ;( I called DFAS today and again they keep telling me that they don't see anything. I feel like I'm stuck and need a contact who I can call directly to get this fixed. Any help would be greatly appreciated, thanks in advance.
 
I received a severance when I was initially dropped to 20%, the VA started recouping that in 2012. To fast forward...I went through an PDBR and now officially retired. DFAS and VA I guess aren't communicating because now DFAS is recouping monies as well as VA. DFAS has my original balance showing on my retirement statement as if I never paid any back. DFAS stated that they need proof from VA that I've been paying it back. The problem that I have is that VA stated that they sent a letter to DFAS weeks ago showing proof (balance..etc). I tried to get VA to email it to me or fax they said their system wont allow them to... ;( I called DFAS today and again they keep telling me that they don't see anything. I feel like I'm stuck and need a contact who I can call directly to get this fixed. Any help would be greatly appreciated, thanks in advance.
I am currently in the exact same boat. I used my Veterans Service Office to help me. We just sent off an official request to conduct an audit of my VA compensation and withholdings then will submit that to DFAS.

Ask the VA to mail you a copy of the letter and then mail a copy of it to DFAS yourself. Wait a week and then call and ask to speak with the retro pay department and ask to speak to a supervisor.
 
I received a severance when I was initially dropped to 20%, the VA started recouping that in 2012. To fast forward...I went through an PDBR and now officially retired. DFAS and VA I guess aren't communicating because now DFAS is recouping monies as well as VA. DFAS has my original balance showing on my retirement statement as if I never paid any back. DFAS stated that they need proof from VA that I've been paying it back. The problem that I have is that VA stated that they sent a letter to DFAS weeks ago showing proof (balance..etc). I tried to get VA to email it to me or fax they said their system wont allow them to... ;( I called DFAS today and again they keep telling me that they don't see anything. I feel like I'm stuck and need a contact who I can call directly to get this fixed. Any help would be greatly appreciated, thanks in advance.
Have you gotten anywhere with this since you last posted?
 
thanks...I called DFAS yesterday and they said my case was still open and "they" are still working it. I asked who is "they" and she said retirement archives dept. According to another ret. statement I received this week it looks like they fixed the recoupment part from DFAS I guess they got the letter from VA and when I spoke with a rep she explained that it appears that they are doing an audit. I requested an audit months ago with VA.
 
I was informed that the VA never recouped my severance so my retirement would be deducted. To the best of my ability to remember 10 years ago my VA compensation was withheld from me; however, the VA says that I have been paid and that there had been no recoupment. I was under the impression that all severance was recouped if you receive VA compensation. The VA rep says that's not always the case. Can someone enlighten me as to what those reasons would be that the VA wouldn't recoup? The VA rep couldn't tell me.
VA didn't start recouping from me until I placed a claim back in 2012. I had received the severance in 2008, so I was shocked so even though my claim was awarded they decreased over half of my benefits to pay back the recoupment and Im still paying it. So with that being said its possible it was missed. Now that Im dealing with DFAS and VA Im starting to see that there's a barrier in communication between the two.
 
I talked to someone at the VA and they said my severance was never recouped and they showed no withholdings from my early pay. I told them that was not accurate. I remember my pay being withheld for more than a year by at least $100 to recoup severance. I am hoping the audit finds it. Otherwise I am screwed.
 
I received a severance when I was initially dropped to 20%, the VA started recouping that in 2012. To fast forward...I went through an PDBR and now officially retired. DFAS and VA I guess aren't communicating because now DFAS is recouping monies as well as VA. DFAS has my original balance showing on my retirement statement as if I never paid any back. DFAS stated that they need proof from VA that I've been paying it back. The problem that I have is that VA stated that they sent a letter to DFAS weeks ago showing proof (balance..etc). I tried to get VA to email it to me or fax they said their system wont allow them to... ;( I called DFAS today and again they keep telling me that they don't see anything. I feel like I'm stuck and need a contact who I can call directly to get this fixed. Any help would be greatly appreciated, thanks in advance.
If I were you I would do to my local VA. They should have a record of your payment. In person us always better to me. You get better results.
 
Go to a Regional VA in person, ask to see a counselor, they will try to divert you to a WORTHLESS service organization...(DAV at the top of the heap) so when you check in tell them you do not want a service organization you want a Counselor.
When you get in, explain in layman terms that you were placed on PDRL and you need:
"VA Severance Pay Recoupment Audit spreadsheet to submit with your DD2656" they will look at you with a blank stare, say it again and explain its the spreadsheet that shows where i paid my severance back and I need the date of the final payment.
Hope this helps
 
Go to a Regional VA in person, ask to see a counselor, they will try to divert you to a WORTHLESS service organization...(DAV at the top of the heap) so when you check in tell them you do not want a service organization you want a Counselor.
When you get in, explain in layman terms that you were placed on PDRL and you need:
"VA Severance Pay Recoupment Audit spreadsheet to submit with your DD2656" they will look at you with a blank stare, say it again and explain its the spreadsheet that shows where i paid my severance back and I need the date of the final payment.
Hope this helps

Were you medically retired, NG/Reserve retired, TERA, or normal retirement?

The 'bail-in' is the set piece you can always count on, it is like they are posting payments in their budget and reporting same to congress that 'are' or 'were' made to you the veteran under the service-connected compensation or VA pension category; but then 'recoupment' money is not accounted for really except for some slush fund that further perpetuates the malpractices.
I get 'money' from my the VA every month on ebenefits profile but nothing goes into my account because I stood up to them for their fake audit and malfeasance, but they can't and refuse really to certify the debt to Treasury Dept as they are supposed to do, so I still get SSD not encumbered; and they claim I owe them thousands of dollars but nothing goes on my credit report?....ummm. all this not because of admin error, debt management center does a false audit mainly because they were not authorized to do in the first place according to the VA regional office in Portland OR, the regional offices must do that; so, long and short, unless you admit things and do it their way, you get really nothing; they tend to act as if you don't exist unless you can admit you were wrong, file a waiver, make a financial statement of your expenses so they can figure how 'little' they 'might' give you each month regardless of your real benefit rating which defaults on your part if you file waiver as a tacit admission of 'debt' real or imagined. For my 60% rating, and the printed benefit verification letter says gross paid and net paid the same amount, but in the payment section ofcourse nothing but goose eggs...with the VA it is never about the veteran period except when you do a google search looking for help, then it would appear that the VA has a program to help you no problem - the veteran problem is that he or she is a person of honor unlike the VA, so if you stand up for what is right, they just don't like you and your honorable service means nothing to them.
 
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