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Do you ever have to REPAY RCP Army severance pay?
A friend of mine just retired Army and back 15 years ago he got out the first time on a RCP he was E4. he went back in a few years later and now he is retired Army E7 and with a VA disability and VA is telling him he has to repay the $20k he received when he got out back 15years ok... So the questions would be why would the VA disability take it away from his disability pay and why would he have to pay it back all these years later? What can he do if anything?
Michael: That's utterly insane and crazy, but the big questions is WHY??? Where in the regulations that says you have to pay back??? I will also let him know
2 Answers
- ?Lv 76 years ago
Update - Your question is, "Do you ever have to REPAY RCP Army severance pay?" in reference to VA Disability payments. The simple, direct answer is, "You ALWAYS have to repay any severance pay given by any service branch for any reason(s) before you can collect VA Disability."
Update 2: It is written, established policy whether or not it seems to make sense. There is no appealing, protesting or defying it. The VA can provide the reference when asked.
When you apply for and get VA Disability you cannot receive a penny of either back pay (from the date you applied until the date it was awarded) or regular monthly Disability pay until every penny of all severance pay you received for ANY reason is fully repaid.
I got my $25K severance pay in 1982 and it had nothing to do with disability or medical. When I got my Disability approved by the VA in 2012, THIRTY years later, they took every penny of back pay and withheld my Disability pay until every penny of my severance pay - PRE-tax - was repaid.
What he is being told is correct and standard procedure. There is no protest or appeal possible and it is NEVER waived. I spent a lot of wasted time researching that.
Read my "Source" and consider if I have first-hand experience.
Source(s): 100% Disabled Vietnam Veteran - Navy Airborne Electronic Warfare Officer