Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
Co-Sponsored by:
Senator Cruz-Perez
SYNOPSIS
Urges Congress to allow veterans to collect disability compensation without repaying separation payments.
CURRENT VERSION OF TEXT
As introduced.
A Senate Resolution respectfully urging Congress to allow veterans to collect disability compensation without repaying separation payments.
Whereas, When U.S. military service members voluntarily or involuntary separate from the military, they can receive a separation payment in the form of a lump payment; and
Whereas, Some separated veterans later apply for disability compensation for injuries sustained during military service; and
Whereas, Federal law prohibits veterans from receiving more than one award of compensation, commonly referred to as double-dipping; and
Whereas, As a result, the Department of Veterans Affairs cannot award disability compensation to veterans who received separation payments from the Department of Defense until the full separation payment is recouped; and
Whereas, Recoupment can come as a surprise, because many veterans only learn about the federal governments policy against double-dipping after applying for disability benefits; and
Whereas, Veterans are often thrown into sudden financial hardship when the Department of Veterans Affairs attempts to recoup separation payments; and
Whereas, Some separated veterans are erroneously awarded disability compensation, and later learn their monthly compensation will be reduced or withheld after applying for a new disability rating; and
Whereas, The Department of Veterans Affairs recouped more than $1.6 billion in total from over 79,000 veterans between 2013 and 2020, with $32,800 recouped from each veteran on average; and
Whereas, Members of Congress have previously introduced legislation that would eliminate the recoupment of separation pay from veterans who subsequently receive disability compensation, arguing that Department of Defense separation pay and Department of Veterans Affairs disability compensation serve separate purposes and should not be subject to laws prohibiting double-dipping; and
Whereas, It is fitting and proper for this House to urge the passage of legislation by Congress to eliminate recoupment of separation pay to protect disabled veterans from financial hardship; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. This House respectfully urges Congress to allow veterans to collect disability compensation without repaying separation payments.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Majority and Minority Leaders of the United States Senate, to the Speaker and Minority Leader of the United States House of Representatives, and to each member of the United States Congress elected from this State.
STATEMENT
This resolution respectfully urges Congress to allow veterans to collect disability compensation without repaying separation payments.
Federal law prohibits veterans from receiving more than one award of compensation based on their service, commonly referred to as double-dipping. As a result, the Department of Veterans Affairs cannot award disability compensation to veterans who received separation payments from the Department of Defense after voluntarily or involuntarily separating from the U.S. military until the full separation payment is recouped. Recoupment can come as a surprise, because many veterans only learn about the federal governments policy on double-dipping after applying for disability benefits. Veterans are often thrown into sudden financial hardship when the Department of Veterans Affairs attempts to recoup separation payments. Some separated veterans are erroneously awarded disability compensation, and later learn their monthly compensation will be reduced or withheld after applying for a new disability rating. The Department of Veterans Affairs recouped more than $1.4 billion in total from over 72,000 veterans between 2013 and 2020.
Members of Congress have previously introduced legislation that would eliminate the recoupment of separation pay from veterans who subsequently receive disability compensation, arguing that Department of Defense separation pay and Department of Veterans Affairs disability compensation serve separate purposes and should not be subject to laws prohibiting double-dipping. This resolution respectfully urges the passage of that or similar legislation to eliminate recoupment of separation pay in order to protect disabled veterans from financial hardship.