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Strange Va Letter About Severance Pay Recoupment

VA Disability

I need a little advice from the crowd.

I am service rated at 80%, but received severance pay for degenerative joint disease at 20%. I have been repaying this pay at 20% of my monthy disability pay. Scheduled out to 2041 for repayment. This is to pay back the total of the severance pay minus Federal Tax withholding. But it now seems they are adding that into the mix now and wanting to repay the total??? I was under the impression this could not be done after Sep 30 1996(I was discharged in 2009).

I just received a letter stating….

“We are proposing to extend the withholding for your disability severance pay. Accordingly we propose to begin withholding all of your VA Compensation until your disability severance pay allowance is paid back.”

Yet below that statement in the “revised” comenstion payment chart of the letter it still has me receiving my benefits, minus the adjusted 20% withholding(guessing for the cost of living raise we got). Still all the way until 2041.

It appears from the statement that they are going to withhold ALL of my disabilty compensation, but the revised compensation chart does not reflect this in any way.

My question is this…….can they withhold ALL of my disability compensation or is there a percent they can go up to? Like the 20% it is now? If they can and are going to do this(I intend to call them), how can I fight it? We have been receiving this disability for nearly 3 years now and have came to depend on it. Thank you for any help you can provide!

Mav


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