Protecting VA benefits

By Donald H. Mustard
Published: July 24, 2008

A number of area veterans or widows, who receive Veterans Administration pensions, got notification during the past year that their benefits would be stopped until an overpayment they received had been re-paid.

In nearly all cases, the VA decision was based on a change in family income, the loss of a dependent, or a change in net worth, which had not been reported to VA or had been reported late.
When any of these events occurs – or for that matter, any change in the status of dependents, income or net worth — the recipient is required to notify the VA promptly to prevent an overpayment — or possibly an underpayment.

Also inform the VA of changes, such as:
— Death of a spouse
— Adoption of child
— Address
— Marital status
— That the recipient meets medical criteria for housebound benefits or Aid & Attendance benefits

If you were receiving less than the amount you’re entitled to, the VA will adjust your benefits. The adjustment starts with the date they are notified of the change that results in your eligibility for additional compensation or pension.

When an overpayment occurs, the VA may reduce or stop your benefits until the amount has been recovered.

When the VA discovers that a veteran or a beneficiary has been overpaid, the VA notifies the recipient by letter. The letter states the amount and reason for overpayment. The VA gives the recipient 60 days in which to show why it should not make the proposed benefit adjustments.

How can you resolve an overpayment?

First, if you agree with the actions proposed by the VA, you should send a written statement expressing your agreement and requesting an immediate adjustment.

If you disagree, but want to avoid the possibility of being overpaid during the 60-day grace period, you can still submit a written statement requesting an immediate adjustment. If the second option is requested and the final review shows that the change should not be made, your payments will be reinstated from the date when the adjustments were made.

Do not — repeat do not — ignore VA correspondence advising you of an overpayment. If you don’t respond, the matter will be referred to the United States Attorney for legal action. You could be charged a one-time administrative fee plus, possibly, additional fees for U.S. Marshal Service, court costs and interest. 

You should also know the VA conducts computer checks with the Internal Revenue Service and Social Security in an effort to prevent overpayments. These checks are usually a couple of years behind, and an accumulation of a substantial overpayment can result before you receive notice. So be accurate in reporting your financial information to the VA.

You may also request the entire debt be waived. This normally occurs when the overpayment was not the fault of the recipient. The debt may also be waived when monthly expenses exceed monthly income, and are expected to continue to do so for the foreseeable future. Waiver may also be granted if it can be documented that repayment would result in extreme hardship.

Source:  “Federal Benefits for Veterans and Dependents.” 2008 edition.

For information
Contact the VA at (800) 827-1000 or the service officer for DAV Chapter 8 and VFW Post 8184 at (434) 316-0229. The service officer’s office, 2337 Lakeside Drive, Lynchburg, is open for walk-ins from 10 a.m. to 3 p.m. on Tuesdays and by appointment on Thursdays.