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NJ SR111
NJ SR111Urges Congress to allow veterans to collect disability compensation without repaying separation payments.
summary
Introduced
09/19/2024
09/19/2024
In Committee
10/21/2024
10/21/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
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 government's 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.
AI Summary
This resolution urges the United States Congress to change current federal policy that prevents veterans from simultaneously receiving military separation payments and disability compensation. Under existing law, the Department of Veterans Affairs (VA) is prohibited from awarding disability compensation to veterans who have received separation payments from the Department of Defense until those initial payments are fully recouped, a practice known as preventing "double-dipping." This policy often creates unexpected financial hardship for veterans, who may not understand the recoupment rules until after applying for disability benefits. Between 2013 and 2020, the VA recouped approximately $1.6 billion from over 79,000 veterans, with an average of $32,800 taken back from each veteran. The resolution argues that separation pay and disability compensation serve different purposes and should not be subject to current double-dipping restrictions. By urging Congress to pass legislation eliminating the recoupment of separation pay, the resolution seeks to protect disabled veterans from sudden and significant financial challenges that can occur when their disability compensation is reduced or withheld to repay initial separation payments.
Committee Categories
Military Affairs and Security
Sponsors (2)
Last Action
Reported from Senate Committee, 2nd Reading (on 10/21/2024)
Official Document
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/SR111 |
Analysis - Statement SMV 10/21/24 | https://pub.njleg.gov/Bills/2024/SR/111_S1.PDF |
BillText | https://pub.njleg.gov/Bills/2024/SR/111_I1.HTM |
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