Military Services and VA Can Reduce Benefit Overpayments by Improving Exchange of Pay Data

AFMD-83-39: Published: Jul 12, 1983. Publicly Released: Jul 12, 1983.

Additional Materials:

Contact:

John F. Simonette
(202) 275-1581
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO reviewed ways for the military services and the Veterans Administration (VA) to prevent overpayments to military retirees and survivors.

GAO found overpayments totaling $6.6 million and underpayments totaling $151,000 to both military retirees and survivors. Further, GAO found another $1 million in overpayments by reviewing cases the services had not examined. Under the present system, VA provides the military services with the names of only those recipients of VA benefits who are identified as military retirees or survivors. About $5 million of the $6.6 million in overpayments occurred because VA did not inform the military that it had awarded compensation to retirees and survivors. Consequently, the services continued making full payment to these individuals. GAO stated that an automated control system would have eliminated, if properly implemented, $5 million of the $6.6 million in overpayments detected in the 1981 reconciliation. The military services must use the results of the annual reconciliation of Defense and VA pay data more effectively to make sure these payments will be corrected.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense and the Administrator of Veterans Affairs should establish joint procedures requiring VA to notify the services of all VA compensation initiated or changed that would be subject to reductions in military retirement benefits, regardless of whether VA records show the recipient to be a military retiree or survivor. The services will computer match VA input against military retired pay record and make needed benefits adjustments.

    Agency Affected: Veterans Administration

  2. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense and the Administrator of Veterans Affairs should establish joint procedures requiring VA to notify the services of all VA compensation initiated or changed that would be subject to reductions in military retirement benefits, regardless of whether VA records show the recipient to be a military retiree or survivor. The services will computer match VA input against military retired pay record and make needed benefits adjustments.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense and the Administrator of Veterans Affairs should continue the annual reconciliation of the discrepancies identified.

    Agency Affected: Department of Defense

  4. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense and the Administrator of Veterans Affairs should continue the annual reconciliation of the discrepancies identified.

    Agency Affected: Veterans Administration

 

Explore the full database of GAO's Open Recommendations »

Sep 20, 2016

Sep 19, 2016

Sep 16, 2016

Jul 29, 2016

Jul 28, 2016

Jun 27, 2016

Jun 6, 2016

May 11, 2016

Apr 28, 2016

Mar 21, 2016

Looking for more? Browse all our products here