Veterans Compensation:

Offset of DOD Separation Pay and VA Disability Compensation

NSIAD-95-123: Published: Apr 3, 1995. Publicly Released: Apr 12, 1995.

Additional Materials:

Contact:

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

Pursuant to a legislative requirement, GAO examined the offset of Department of Defense (DOD) separation pay and Department of Veterans Affairs (VA) disability compensation, focusing on: (1) the purpose of separation pay programs; (2) the justification for offsetting pay; (3) the federal government's cost of repealing certain offsets; and (4) whether these offsets have discouraged DOD personnel from separating voluntarily.

GAO found that: (1) DOD uses separation pay as an incentive to people to serve in the military despite the risk of involuntary separation; (2) Congress authorized special separation pay to minimize the use of involuntary separations in the ongoing force drawdown; (3) pay offsets prevent service members from receiving dual compensation for a single period of service; (4) repealing offsets for separation and disability pay would cost the federal government an estimated $435 million (in 1994 dollars) for those service members who separated from fiscal years (FY) 1995 to 1999; (5) a repeal would cost about $799 million if it was made retroactive to FY 1992, when the special separation pay program began; (6) separation and disability pay offsets have not significantly undermined the voluntary separation incentive; (7) according to DOD, the bulk of the drawdown since FY 1992 has been accomplished through voluntary separations; and (8) DOD requires the services to inform separating service members of the existence of the offset.

Oct 19, 2017

Oct 12, 2017

Sep 29, 2017

Sep 22, 2017

Sep 19, 2017

Sep 13, 2017

Sep 12, 2017

Sep 6, 2017

Sep 5, 2017

Jul 20, 2017

Looking for more? Browse all our products here