The Department of Veterans Affairs headquarters building as seen in Washington, D.C., on July 6, 2022. (Carlos Bongioanni/Stars and Stripes) WASHINGTON — Roughly 100,000 veterans who received bonuses to separate from the military early have been forced to return the money in the last 10 years because they were also receiving disability benefits from the Department of Veterans Affairs, according to agency officials.
The bonuses collected by the VA total more than $2.5 billion and the numbers could increase drastically as more veterans apply for compensation through a law passed two years ago to provide benefits for those suffering from illnesses caused by toxic exposure, including burn pits.
“More veterans are filing new claims after many years,” said Marquis Barefield, assistant national legislative director of Disabled American Veterans. “I just heard from a 75-year-old disability veteran who filed a new claim. The VA went into his record and found they had never collected separation pay when he originally qualified for disability 30 years ago.”
A federal law stops the VA from paying monthly disability compensation to veterans who accepted separation benefits to exit the military voluntarily at a time when the military services drew down troop strength, agency officials said. The monthly disability compensation that a former service member was approved to receive is instead applied to repaying the bonus amount, which can be tens of thousands of dollars in some cases.
“The VA calls this double-dipping,” said 63-year-old former Army sergeant Vernon Reffitt, whose monthly VA disability compensation for a leg injury recently went from $171 per month to zero.
The VA and veterans advocacy groups said they are fielding more questions and complaints about the rule because of a recent spike in claims for disability by veterans is triggering a review of veterans’ records.
In fiscal 2023, the VA recouped separation pay from more than 9,200 veterans, compared to 6,600 in fiscal 2013, according to the VA.
The DAV and other veterans groups said they oppose the VA using a veteran’s disability compensation to pay down a special separation bonus. The lump-sum separation payment is not based on or due to disabilities incurred in […]
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