Gallego, Bilirakis and DeSaulnier Introduce Legislation to Protect Veterans’ Disability Pay
The bipartisan Restore Veterans’ Compensation Act protects veterans who receive disability benefits from having to return separation pay
Washington, D.C.— Rep. Ruben Gallego (AZ-07), Rep. Gus Bilirakis (FL-12), and Rep. Mark DeSaulnier (CA-11) today introduced the Restore Veterans’ Compensation Act, legislation that protects veterans who receive disability benefits from the Department of Veterans Affairs (VA) from having to face the unfair and unwarranted recoupment of their separation pay.
“It is unconscionable that the federal government will cut a check to a veteran for their service but years later ask for the money back when the same veteran gets benefits from the VA,” said Rep. Ruben Gallego. “Veterans deserve more benefits, not less, and that is why I am proud to introduce the Restore Veterans’ Compensation Act to protect our veterans from the financial burdens of having to give back their separation pay. It is up to Congress to rectify this inequity, and I am looking forward to engaging my colleagues on both sides of the aisle on this important issue.”
Specifically, the Restore Veterans’ Compensation Act bill would:
- No longer allow for the recoupment of separation pay from veterans who later become eligible for VA disability benefits because the two compensate for different things—workplace injuries (disability benefits) versus time served (separation pay);
- Ensure veterans who later qualify for military retirement pay only have to repay the net amount of separation pay instead of the gross amount to prevent the federal government from recouping more than the veteran received; and,
- Change the recoupment rate for retired military veterans to 25 percent of those same veterans’ paycheck instead of the current 40 percent.
“The brave men and women who return from serving our country should be able to receive all of the benefits promised to them,” said Rep. Gus Bilirakis. “The issue of concurrent receipt remains an injustice that must be rectified for all Veterans. However, this important legislation will provide immediate relief for one group of Veterans who have been facing unreasonable financial penalties and unnecessary bureaucratic roadblocks when attempting to access the benefits they have earned.”
Currently, outdated policies prohibit veterans from receiving concurrent receipt of unrelated benefit payments. Therefore, veterans who receive separation pay who later qualify for VA disability benefits have their separation pay recouped.
“When men and women in uniform return to civilian life after serving our country, we must ensure they receive the full financial support they are owed for their sacrifice,” said Congressman DeSaulnier. “I am proud to lead the effort with Representative Gallego to end the shameful and predatory practice that causes tens of thousands of servicemembers who have been injured in the line of duty to be stripped of their disability payments. This effort will restore fairness and honor to the system and fully recognize the service and bravery of our nation’s servicemembers.”
Separation pay is given to many service members when they department the military. Pay is given, for example, when members of the Armed Forces with more than six years of service who meet reenlistment requirements but are not allowed to reenlist. Separation pay is also used to incentivize service members to depart the military when the Pentagon is working to downsize the force.
“Withholding a veteran’s VA disability compensation due to a non-related military separation benefit must end,” said Disabled American Veterans (DAV) National Service Director Jim Marszalek. “The Restore Veterans’ Compensation Act would afford justice for veterans and would allow them to keep their separation payments based on their service, which differs from VA disability compensation. We applaud Representative Gallego’s effort to correct this wrong and unfair practice.”
For a full copy of the bill text, click here.
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Rep. Ruben Gallego is a Marine Corps combat veteran who served in Iraq. He serves on the House Armed Services Committee, the House Natural Resources Committee, and the House Committee on Veterans’ Affairs.