More than 120,000 disabled veterans are forced to return payouts over little-known law
SUMMARY
The Department of Veterans Affairs (VA) is demanding that over 120,000 disabled veterans repay lump-sum special separation payments received over the past 12 years. This issue arises from a law prohibiting veterans from receiving both disability compensation and special separation pay simultaneously. The VA has initiated "recoupment" actions, leading to financial hardship for many veterans who now face repayment demands of tens of thousands of dollars. For instance, Vernon Reffitt is asked to return $30,000, while Daphne Young must repay $15,000. The situation has caused significant distress, with some veterans forced to cut expenses or seek additional income to meet these demands. Despite the VA's claims of a standard process, critics argue that many were unaware of the repayment obligation. The VA reported that the number of recoupments fluctuated, with about 2.3 million disability claims filed this past year, reflecting a rise in disability claims.
