SENATE MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

SENATE RESOLUTION No. 111

STATE OF NEW JERSEY

DATED:  OCTOBER 21, 2024

      The Senate Military and Veterans' Affairs Committee reports favorably Senate Resolution No. 111.

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 $1.6 billion in total from over 79,000 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.