That Require Special VA completed recoupment of a separation benefits prior to the Veteran’s Handling conversion of his/her award to VETSNET, and a retroactive adjustment of the award from a date to prior Veteran’s completion of the recoupment is now necessary. If, while VA is withholding all of a compensation to recoup b. Adjusting an Veteran’s Award Based separation benefits he/she received, VA decides a decrease in the Veteran’s on a Reduction combined disability rating is in order, the provisions of still apply. in the Combined Even though the Veteran is receiving compensation, VA not must Disability Rating send notice of proposed adverse action to the Veteran, and allow the Veteran 60 days to provide evidence showing why VA shouldn’t take the proposed action. For more information about notifying a Veteran of proposed Reference: adverse action under , see M21-1, Part IV, Subpart ii, 3.A.3. When VA stops paying a Veteran compensation from which it had been c. Status of a Recoupment recouping separation benefits, any amount VA has not yet recouped Balance When VA Stops remains as a charge against any future award of compensation, and Paying subject to recoupment from any future award of compensation. is Compensation The principle set forth in this block does apply when the Exception: not Veteran dies before VA finishes recouping his/her separation benefit. The recoupment balance does remain as a charge against survivors benefits not VA subsequently pays based on the service. Veteran’s
That Require Special Handling VA completed recoupment of a Veteran’s separation benefits prior to the conversion of his/her award to VETSNET, and a retroactive adjustment of the Veteran’s award from a date prior to completion of the recoupment is now necessary. b. Adjusting an Award Based on a Reduction in the Combined Disability Rating If, while VA is withholding all of a Veteran’s compensation to recoup separation benefits he/she received, VA decides a decrease in the Veteran’s combined disability rating is in order, the provisions of still apply. Even though the Veteran is not receiving compensation, VA must send notice of proposed adverse action to the Veteran, and allow the Veteran 60 days to provide evidence showing why VA shouldn’t take the proposed action. Reference: For more information about notifying a Veteran of proposed adverse action under , see M21-1, Part IV, Subpart ii, 3.A.3. c. Status of a Recoupment Balance When VA Stops Paying Compensation When VA stops paying a Veteran compensation from which it had been recouping separation benefits, any amount VA has not yet recouped remains as a charge against any future award of compensation, and is subject to recoupment from any future award of compensation. Exception: The principle set forth in this block does not apply when the Veteran dies before VA finishes recouping his/her separation benefit. The recoupment balance does not remain as a charge against survivors benefits VA subsequently pays based on the Veteran’s service.
9-24-15_Key%20Changes-M21-1III_v_4_SecB.docx