Posted on Dec 31, 2015
Vets Who Accept Separation Pay Can’t Receive VA Compensation
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RP Members did you know this?
Under federal law, until veterans pay back their involuntary separation pay, they can have their VA disability compensation withheld.
After 31-year-old Marine veteran Tim Foster received a 50% disability rating from the Department of Veterans Affairs in January, he was shocked to discover the compensation benefits would be withheld until May 2016.
The reason, Foster explained to Task & Purpose, is that he received $30,000 in involuntary separation pay from the Marine Corps when he was forced out in August 2014, due to personnel cuts. Foster said he accepted the separation pay, not realizing he would have to pay it back if he filed for disability.
And he isn’t alone.
Under federal law, until veterans pay back their involuntary separation pay, they can have their VA disability compensation withheld.
After 31-year-old Marine veteran Tim Foster received a 50% disability rating from the Department of Veterans Affairs in January, he was shocked to discover the compensation benefits would be withheld until May 2016.
The reason, Foster explained to Task & Purpose, is that he received $30,000 in involuntary separation pay from the Marine Corps when he was forced out in August 2014, due to personnel cuts. Foster said he accepted the separation pay, not realizing he would have to pay it back if he filed for disability.
And he isn’t alone.
Vets Who Accept Separation Pay Can’t Receive VA Compensation
Posted from taskandpurpose.com
Fair Pay
Disability
Compensation
What Would You Do
Posted >1 y ago
Responses: 5
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Sir I've heard of this although it didn't apply to me. Like the VA, the services never loose. I was told during my board that had I taken anything other than what I was given, should the chance arise I could come back in, I'd have to pay it all back. There should be debt forgiveness in the regs in both of these cases. What happens if the service calls him back in? Does he get a load of no pay dues until a payment plan is enacted?
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SSG Warren Swan
SFC Eric Williams - Seriously when you have no clue as to why, finance makes you get a "permission slip" from the CO to go see them....about YOUR money issues. They really need to do debt forgiveness in cases like this. I was only told because my PUEBLO was a reserve PSG at Lee and had processed a lot of IDES cases. Otherwise I could've been just like these guys.
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I believe this unfair as it relates to separate things. Or someone please correct me if I'm wrong.
1. Separation pay is based off the fact that you no longer are given the option to retire. Therefore, it is small change on the dollar for lost retirement pay if you made it to 20.
2. VA disability pay is based off of a medical condition.
This policy currently gives incentive for soldiers to seek out medical profiles for every possible medical condition so that they can be medically separated rather separate administratively and then go to the VA.
1. Separation pay is based off the fact that you no longer are given the option to retire. Therefore, it is small change on the dollar for lost retirement pay if you made it to 20.
2. VA disability pay is based off of a medical condition.
This policy currently gives incentive for soldiers to seek out medical profiles for every possible medical condition so that they can be medically separated rather separate administratively and then go to the VA.
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I would recommend he get to the VA Office, consult with the RO from his area and see about a Board of Veterans Appeals review. There may be a case due to INvoluntary separation. There may be legal aspects to this and the RO can help direct this individual to some resources. At least file a Notice of Appeal (NOA) ASAP.
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