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Ending Recoupment of Veterans' Separation Pay from Disability Benefits

This act aims to stop deducting separation payments received by service members from their subsequent disability compensation paid by the Department of Veterans Affairs. It also introduces limits on how these payments can be recouped from military retirement pay, protecting veterans from undue financial hardship.
Key points
Veterans will no longer have their disability compensation reduced due to prior military separation payments.
Recoupment from military retirement pay will be limited to 25% of the monthly amount, unless the veteran requests a faster rate.
A 90-day notice period is required before starting deductions from retirement pay, with clear information provided.
The Secretary of Defense can waive deductions if they would cause financial hardship for the veteran.
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Additional Information
Print number: 118_HR_3489
Sponsor: Rep. Gallego, Ruben [D-AZ-3]
Process start date: 2023-05-18