I received an exit bonus in 1992 during the military reduction phase. Do I have to pay it back?

2020-11-11T18:33:34-05:00

I filed for compensation for a shoulder injury incurred during active duty. I received a 10 percent compensation but have not received a dime because it is used to repay the bonus I received. Can someone clarify this for me?

Response by SSG Roger Ayscue made Nov 11 at 2020 6:39 PM

2020-11-11T18:39:54-05:00

Did you get the VSI or the SSB in '92?

Response by 1SG Brian Adams made Nov 12 at 2020 10:42 AM

2020-11-12T10:42:06-05:00

No, why should you?

Response by SSG Dale London made Nov 13 at 2020 12:12 AM

2020-11-13T00:12:03-05:00

The law governing veterans benefits specifies that separation pay must be recouped before any VA benefits can be paid. Depending on when the pay was received, the amount subject to recoupment may or may not be net of federal income tax.
It sucks but it's legal.
On the other hand, the new rules put in place last year means you can now shop at the PX and Commissary and use military MWR facilities since you have a service connected disability. Happy days!