In the past decade, the Department of Veterans Affairs has recouped more than $2 billion from veterans who received separation pay from the Defense Department and later filed for disability compensation, an effort that has resulted in financial hardship for some former service members.
According to data provided by the VA, the department has collected $2.44 billion from 112,834 veterans since 2013 under a law that department officials say prohibits it from paying disability compensation to those who received voluntary or involuntary separation pay or bonuses until the money has been recouped.
While the VA has been required to recover the money since the 1940s – and the Defense Department is required to inform transitioning service members of this potential transaction – veterans have been surprised when the recoupment letters arrive, in some cases decades after they received the money.
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Former Air Force officer Raymond Thomas received $30,000 in separation pay in 1990 and, following a series of government administrative missteps, was told earlier this year his monthly disability compensation, which he uses to cover his vehicle and living quarters, would be withheld completely until the money was returned.
Thomas reached a payment agreement with the VA after he told his story to Military.com, but he still feels like the problem…
