Two new bills recently introduced in the US Senate would potentially address a problem that veterans have been forced to deal with for decades: namely, that their separation pay is taken out of their disability benefits. As a result, many veterans wind up getting less from their benefits than they otherwise thought they would. The new bills would potentially remedy this issue, effectively increasing the amount of money they receive by potentially hundreds or thousands of dollars.
How Separation Pay Is Counted Against Disability Benefits
Many veterans receive separation pay after leaving the military, usually if they were forced to leave due to downsizing or other factors beyond their control. Veterans are also typically only eligible for this pay if they served continuously for six years or longer.
Unfortunately, if someone who receives separation pay later applies for disability benefits, the amount they received will be deducted from their benefits. This can result in their disability payments being reduced or withheld entirely, at least until the total amount of their separation pay is recouped.
New Bills Tackle Problem of Separation Pay
The two new bills introduced in the Senate would seek to address this problem by limiting how much separation pay the military could withhold from their paycheck. One version of the bills would limit the total amount that could be withheld, while another version would stop separation pay from being deducted entirely. This could substantially increase the take-home pay for veterans who lost substantial amounts of the benefits they would otherwise be entitled to.
Why This Matters
Disabled veterans often struggle to pay their bills, even with help from things like VA disability benefits and separation pay. This state of affairs, where receiving one type of pay negatively impacts the other, can serve to exacerbate these problems. By allowing veterans to keep separation pay as well as benefits, they would be able to return to civilian life with far less hardship.
What You Should Do
If you are a veteran struggling with a disability, you may be entitled to receive benefits through the Department of Veterans Affairs. However, the only way to know for sure is to speak to a lawyer with experience handling veterans disability claims. They can review the circumstances of your case, and get you the benefits you rightly deserve.
The attorneys of Sullivan & Kehoe place a special focus on assisting disabled veterans. Our veterans’ disability lawyers are still available for remote consultation on your legal issues. Call our office at (800) 395-7830 to schedule a consultation in our New York City, Garden City, Kings Park, Riverhead, or White Plains office, or visit our contact page.
