Severance not being recouped?

S

smiller461

PEB Forum Regular Member
Registered Member
Good evening everyone,
I just had a quick question and was hoping someone could give me some insight. I was separated at the end of Nov 2017 from the Marines with 10% DOD/80% VA. I received severance pay mid-December time. Jan 11 I received my first VA check for the month of December and just received my final official VA rating notification today. Going through the IDES process I have been told that if I receive severance, I will repay, in my case 10% until my severance is repaid. But on my notification, the VA letter states that they won't be withholding anything at this time? But "may" recoup at a later date. I called the VA and asked why and the lady could not tell me why. No, it was not combat related either. I will attach a picture of what the letter states. For now, I guess I will open a savings account and transfer my own 10% over because I know the VA will get theirs sooner than later.
 

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Basically, if they were to recoup the 10% (subtract) it would not change your combined rating. If you have a condition that decreases in the future, it could potentially change and then your referred condition could be recouped.

An example of this would be: 50%, 50%, 10%, 10%, 10%, 10% = 83.5975% rounds down to 80%

or 50%, 50%, 10%, 10%, 10%, 10% = 81.775% rounds down to 80%

Now lets say on of the 50% ratings drops to 10%, then the combined rating would drop to 70.4755% and you would be subject to a recoup.
 
gsfowler said:
Basically, if they were to recoup the 10% (subtract) it would not change your combined rating. If you have a condition that decreases in the future, it could potentially change and then your referred condition could be recouped.

An example of this would be: 50%, 50%, 10%, 10%, 10%, 10% = 83.5975% rounds down to 80%

or 50%, 50%, 10%, 10%, 10%, 10% = 81.775% rounds down to 80%

Now let's say on of the 50% ratings drops to 10%, then the combined rating would drop to 70.4755% and you would be subject to a recoup.
Click to expand...

This actually makes sense. Thanks. So let's say I apply for more disabilities and I get 90% would I be subject to recoupment at that point? If I am understanding you right, basically in their eyes its like just losing a 10% disability and if you're still above that threshold you still get that overall percentage?

That may sound confusing, I just didn't know how to word it. lol
 
smiller461 said:
This actually makes sense. Thanks. So let's say I apply for more disabilities and I get 90% would I be subject to recoupment at that point? If I am understanding you right, basically in their eyes its like just losing a 10% disability and if you're still above that threshold you still get that overall percentage?

That may sound confusing, I just didn't know how to word it. lol
Click to expand...

If your compensation goes up you get more money, it would have to be a pretty drastic reduction 50% dropping down to 20% or 10% for you to get recouped.
 
smiller461 said:
Good evening everyone,
I just had a quick question and was hoping someone could give me some insight. I was separated at the end of Nov 2017 from the Marines with 10% DOD/80% VA. I received severance pay mid-December time. Jan 11 I received my first VA check for the month of December and just received my final official VA rating notification today. Going through the IDES process I have been told that if I receive severance, I will repay, in my case 10% until my severance is repaid. But on my notification, the VA letter states that they won't be withholding anything at this time? But "may" recoup at a later date. I called the VA and asked why and the lady could not tell me why. No, it was not combat related either. I will attach a picture of what the letter states. For now, I guess I will open a savings account and transfer my own 10% over because I know the VA will get theirs sooner than later.
Click to expand...
So I am also being medically separated from the Marines I was 10%DOD/ 100%VA I was told by the PEBLO that they would take 10% of my va compensation until the severance was all paid back. Now I have a question for you I am getting out 26 Jan receiving my DD214 and EAS is 27 February how long did it take you to receive your VA award letter. I accepted my findings on 19 December 2017. Also was your severance pay taxed because the clerk at ipac told me it wouldn’t be.
 
marine87 said:
So I am also being medically separated from the Marines I was 10%DOD/ 100%VA I was told by the PEBLO that they would take 10% of my va compensation until the severance was all paid back. Now I have a question for you I am getting out 26 Jan receiving my DD214 and EAS is 27 February how long did it take you to receive your VA award letter. I accepted my findings on 19 December 2017. Also was your severance pay taxed because the clerk at ipac told me it wouldn’t be.
Click to expand...

Your experience may differ because it seems like I was told one thing and the complete opposite happened but I will tell you what happened for me. My actual last day receiving pay was Nov 29th. The VA then reopened my IDES dated November 30th and closed Jan 10th. I received the award letter on the 16th. On Jan 12th I received VA back pay for the month of December with no deduction for my severance as you can read about above.

For the tax part, my disability was not combat-related and I was told by the PEBLO and everyone else that I would be tax at first and then I could apply to get the taxes back once I received my award letter. Even given a paper with the directions on how to do it. This is what I was prepared for. But once again, not the case. I received the full amount, NOT taxed.
 
smiller461 said:
Good evening everyone,
I just had a quick question and was hoping someone could give me some insight. I was separated at the end of Nov 2017 from the Marines with 10% DOD/80% VA. I received severance pay mid-December time. Jan 11 I received my first VA check for the month of December and just received my final official VA rating notification today. Going through the IDES process I have been told that if I receive severance, I will repay, in my case 10% until my severance is repaid. But on my notification, the VA letter states that they won't be withholding anything at this time? But "may" recoup at a later date. I called the VA and asked why and the lady could not tell me why. No, it was not combat related either. I will attach a picture of what the letter states. For now, I guess I will open a savings account and transfer my own 10% over because I know the VA will get theirs sooner than later.
Click to expand...
smiller461 said:
Your experience may differ because it seems like I was told one thing and the complete opposite happened but I will tell you what happened for me. My actual last day receiving pay was Nov 29th. The VA then reopened my IDES dated November 30th and closed Jan 10th. I received the award letter on the 16th. On Jan 12th I received VA back pay for the month of December with no deduction for my severance as you can read about above.

For the tax part, my disability was not combat-related and I was told by the PEBLO and everyone else that I would be tax at first and then I could apply to get the taxes back once I received my award letter. Even given a paper with the directions on how to do it. This is what I was prepared for. But once again, not the case. I received the full amount, NOT taxed.
Click to expand...
thanks for the input yeah I guess I will just have to find out. This crap really sucks because I’m trying to purchase a house and I don’t know how they expect us to properly plan a good transition plan when all this stuff happens after we are out.
 
Have any of you received anymore information regarding recoupment? I was found to be unfit at 10% with severance pay after being on TDRL for 1.5 years. How likely is it that my VA compensation rating drops from my 100% P&T?
 
Bump. Curious if OP @smiller461 could confirm how VA calculated the recoupment. Thanks
 
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