Senator introduces bill to stop VA from recouping military separation pay from disabled vets – Military Times

Senator introduces bill to stop VA from recouping military separation pay from disabled vets  Military Times

An Arizona senator introduced a bill that would prevent veterans from being surprised when the VA docks their disability payments to recoup separation pay. An Arizona lawmaker introduced a bill Thursday that would prevent veterans from being surprised when the Department of Veterans Affairs docks their disability payments to recoup military separation pay they received at the end of active duty. Sen. Ruben Gallego, D-Ariz., has proposed barring the VA from collecting voluntary or involuntary separation pay from veterans who are approved to receive disability compensation. The bill also would allow veterans who later qualify for military retirement pay to remit the net amount they received instead of the gross amount so they don’t end up paying more than they actually received after taxes.

Gallego, a former Marine and Iraq War veteran, and Rep. Gus Bilirakis, R-Fla, introduced a similar bill in the House when Gallego served in that chamber, but the legislation never made it out of committee. The senator said the legislation is needed because the money is paid out for separate reasons: disability payments are akin to workman’s compensation and separation pay reflects “time served” — an incentive tool used by the Defense Department to manage force strength and design. “It is ridiculous to claw back money from a veteran who has put life and limb on