Petition Closed
Petitioning Senator Sheldon Whitehouse

White House and Veterans Administration: I want to expose and abolish CFR38-"Re-couping" Veterans Severance Pay

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Change For Veterans CFR38

 

Reference US Code CFR38-Veterans Severance Pay
This law/code allows the Veterans Military Branch of Service to "award" "severance pay" to a "medically separated" war time Veteran, based on their length of service, military rank, and % of medical disability. Prior to "medical separation" the wounded Veteran receives their monthly awarded pension in 2 separate payments, from their Brand of Military Service AND the 2nd portion from the Veterans Administration, equivalent to 100% of the amount the Veteran is awarded. Upon medical separation, the Veteran receives the lump sum severance pay from the Army, Navy, Air Force, Marines. The portion of their monthly pension from their branch of service is stopped. SOUNDS FAIR.....so far!
Upon receiving the "severance pay", the US Government begins withholding approximately 50% of the VA portion of the monthly benefits, each month, until the US Government has "re-couped" the "severance pay"
As an example, my Son was awarded approximately $22,000.00 before taxes.  After federal taxes were deducted, he received approximately $16,000.00.  After receiving his "severance pay", the US Government began withholding approximately 50% of his monthly VA portion of his medical disability. When he was medically discharged from the Army, he received his monthly pension 40/60 from the Army and the VA. His Monthly pension was approximately $1000.00, total. He lost his Army pension, which decreased his monthly pension to 60%. The US Government  then stepped in and began withholding approximately 50% of his VA PENSION until May 2016. His monthly pension went from $1000.00, down to $256.00 a month, until May 2016, at which time the US Government will have "re-couped" 100% of his severance pay. He has been living in poverty status. You probably know a medically separated Veteran who is affected by this outlandish law/code. PLEASE SIGN THIS PETITION AND JOIN ME IN EXPOSING AND ABOLISHING CFR38-Medical Severance Pay

​(3) Severance pay. Where the disability or disabilities found to be service-connected are the same as those upon which disability severance pay is granted, or where entitlement to disability compensation was established on or after September 15, 1981, an award of compensation will be made subject to recoupment of the disability severance pay. Prior to the initial determination of the degree of disability recoupment will be at the full monthly compensation rate payable for the disability or disabilities for which severance pay was granted. Following initial determination of the degree of disability recoupment shall not be at a monthly rate in excess of the monthly compensation payable for that degree of disability. For this purpose the term “initial determination of the degree of disability” means the first regular schedular compensable rating in accordance with the provisions of Subpart B, Part 4 of this chapter and does not mean a rating based in whole or in part on a need for hospitalization or a period of convalescence. Where entitlement to disability compensation was established prior to September 15, 1981, compensation payable for service-connected disability other than the disability for which disability severance pay was granted will not be reduced for the purpose of recouping disability severance pay. Where entitlement to disability compensation was established on or after September 15, 1981, a veteran may receive disability compensation for disability incurred or aggravated by service prior to the date of receipt of the severance pay, but VA must recoup from that disability compensation an amount equal to the severance pay. Where payment of severance pay was made on or before September 30, 1996, VA will recoup from disability compensation an amount equal to the total amount of the severance pay. Where payment of severance pay was made after September 30, 1996, VA will recoup from disability compensation an amount equal to the total amount of the severance pay less the amount of Federal income tax withheld from such pay. For members of the Armed Forces who separated under Chapter 61 of title 10, United States Code, on or after January 28, 2008, no recoupment of severance pay will be made for disabilities incurred in line of duty in a combat zone or incurred during performance of duty in combat-related operations as designated by the Department of Defense. (Authority: 10 U.S.C. 1174(h)(2) and 1212(d))

Letter to
Senator Sheldon Whitehouse
I want to expose and abolish CFR38-"Re-couping" Veterans Severance Pay and immediately terminate the government withholding "RECOUPMENT funds" from Medically Separated Veterans Pay, retroactive to the laws origination date, thus owing Veterans every penny that has been withheld from their monthly military pension. Upon termination of US CODE CFR38, the government would begin reimbursing each Veteran affected by this preposterous US CODE.