Compensation prior to September N/A None readjustment pay 15, 1981 under former 10 U.S.C. 3814a, or on or after on or before September pre-tax amount September 15, 1981 30, 1996 non-disability severance pay after September 30, 1996 after-tax amount readjustment pay under prior to September N/A 75 percent of former 10 U.S.C. 687 15, 1981 pre-tax amount on or after on or before September pre-tax amount September 15, 1981 30, 1996 after September 30, 1996 after-tax amount SSB N/A provides for after-tax amount PL 105-178 recoupment of the amount of SSB a Veteran receives, regardless of the date of receipt. N/A on or before September pre-tax amount separation pay under 30, 1996 VSP after September 30, 1996 after-tax amount RISP disability severance pay N/A on or before September pre-tax amount for a disability VA 30, 1996 initially rated at least 10 after September 30, 1996 after-tax amount percent disabling For exceptions to the policies described in the table above, see Exceptions: M21-1, Part III, Subpart v, 4.B.2.e. For more information about References: calculating the after-tax amount of separation benefits, see M21-1, Part III, Subpart v, 4.B.2.g , and the recoupment of separation benefits, in general, see , and disability severance pay, see M21-1, Part III, Subpart v, 4.B.3. Follow the instructions in the table below when all four conditions apply e. Handling Separation Benefits When a Veteran who received separation benefits that have not yet been entirely Compensation recouped Becomes the Veteran is receiving pension Greater Than entitlement to compensation is established and compensation would be the Pension benefit, and greater the amount of compensation payable to the Veteran is actually than the less amount of pension payable because VA must withhold all or part of the compensation in order to recoup the separation benefits. Veteran’s Step Action
Compensation readjustment pay under former 10 U.S.C. 3814a, or non-disability severance pay prior to September 15, 1981 N/A None on or after September 15, 1981 on or before September 30, 1996 pre-tax amount after September 30, 1996 after-tax amount readjustment pay under former 10 U.S.C. 687 prior to September 15, 1981 N/A 75 percent of pre-tax amount on or after September 15, 1981 on or before September 30, 1996 pre-tax amount after September 30, 1996 after-tax amount SSB N/A PL 105-178 provides for recoupment of the amount of SSB a Veteran receives, regardless of the date of receipt. after-tax amount separation pay under VSP RISP N/A on or before September 30, 1996 pre-tax amount after September 30, 1996 after-tax amount disability severance pay for a disability VA initially rated at least 10 percent disabling N/A on or before September 30, 1996 pre-tax amount after September 30, 1996 after-tax amount Exceptions: For exceptions to the policies described in the table above, see M21-1, Part III, Subpart v, 4.B.2.e. References: For more information about calculating the after-tax amount of separation benefits, see M21-1, Part III, Subpart v, 4.B.2.g , and the recoupment of separation benefits, in general, see , and disability severance pay, see M21-1, Part III, Subpart v, 4.B.3. e. Handling Separation Benefits When Compensation Becomes Greater Than Pension Follow the instructions in the table below when all four conditions apply a Veteran who received separation benefits that have not yet been entirely recouped the Veteran is receiving pension entitlement to compensation is established and compensation would be the greater benefit, and the amount of compensation payable to the Veteran is actually less than the amount of pension payable because VA must withhold all or part of the Veteran’s compensation in order to recoup the separation benefits. Step Action
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