PREC 7-01 Effective Date of Reduction of VA Compensation When Veteran Is Receiving Military Retired or Retirement Pay Citation: Vet. Aff. Op. Gen. Couns. Prec. 7-01, VAOPGCPREC 7-01, 2001 QUESTION PRESENTED: Whether a recipient of military retired or retirement pay whom VA has determined is entitled to compensation under title 38, United States Code, and who has submitted a waiver of entitlement to that pay is a payee for purposes of 38 U.S.C. § 3012(b)(6) (1964) (currently 38 U.S.C. § 5112(b)(6)). HELD: A. A "payee" for purposes of 38 U.S.C. § 3012(b)(6) (1964) (currently 38 U.S.C. § 5112(b)(6)) is a person who is in continuous receipt of VA compensation, dependency and indemnity compensation, or pension. The effective date of an award of VA compensation to a recipient of military pay or retirement pay who has submitted a waiver of entitlement to that pay is the date upon which the service department reduces such pay. B. Section 3012(b)(6) of title 38, United States Code (1964) (currently 38 U.S.C. § 5112(b)(6)), does not apply where there is no reduction in the amount of compensation being paid to a claimant. Therefore, if a veteran’s evaluation is reduced by VA while the veteran is receiving military retired or retirement pay during the period in which a service department is processing a waiver of such pay, section 3012(b)(6) is not applicable because, at the time of the reduction, the reduction decision does not result in the veteran getting any less retired or retirement pay than the veteran had been receiving before the decision was made. |
