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TREASURY TO BEGIN COLLECTING VA DEBTS FROM SOCIAL
SECURITY AND OTHER FEDERAL PAYMENTS
The Treasury Department has begun sending letters to approximately 243,000
veterans telling them that money allegedly owed to the Federal Government
can be taken from other federal checks to recoup the debt.
For the first time, portions of a monthly Social Security check can be witheld
by the Treasury to recover money the Department of Veteran Affairs claim is
owed to them.
Federal law now says that when veterans or their beneficiaries (surviving
spouses, dependent children, etc.) owe more than $25 to the VA and the debts
are more than 180 days overdue, VA officials will report that information
to the U.S. Treasury Department. The VA has already referred approximately
243,000 names to the Treasury Department, with the claim that more than $75
million is due to be recovered. This averages about $300 for each veteran.
Veterans affected by the withholding will have 15% of monthly checks over $750
witheld. This will come from from not only Social Security but other federal
payments as well.
VA officials state that the withholding can be avoided by voluntarily settling
the debts. While this sounds fine, many Catholic War Veterans Service Officers
have reported that some debts, particularly non-service connected disability
pensions to low income, disabled elderly veterans was caused by the work
backlog which is endemic at VA Regional Offices. Changes of income or
reportable medical expenses were properly reported but not timely entered into
the VA computer system. This resulted in over payments but was not the fault
of the veteran or other beneficiary. In many cases, elderly veterans are
confused when they are notified of the overpayment and do not take immediate
action to seek the assistance of a qualified VSO service officer. The VA then
takes the stand that they were properly notified but failed to respond. With
the rapidly aging veteran population, this problem will continue to grow.
Deductions will begin this spring. The Treaury Department will send 2 letters,
the first at 30 days and the second at at 60 days notifying them about the
pending deductions. The letters will include the name of the VA agency that
originated the claim and information about a point of contact where questions
about the debt will be responded to. It would be more prudent if affected
veterans immediately contact a qualified service officer, who can, in many
cases investigate to see if any mitigating circumstances exist that could be
used to seek a waiver of the debt.
Treasury Department will be searching for income tax refunds, federal retired
pay and Social Security payments. SSI payments will not be affected.
In the future Treasury will begin deductions from military and military retired
pay, Railroad Retirement benefits, Black Lung Program payments and other
federal payments made to individuals.
Any veteran or beneficiary who has been notified by the VA that they owe that
agency money and feel it is in error or was created due to slow response on
the part of the VA, should immediately contact a qualified Veteran Service
Organization (VSO) service officer. The Catholic War Veterans have service
officers at many VA Regional Offices and Medical Centers and stand ready to
assist in any way possible.
Copyright © 2001-2005 Catholic War Veterans of the U.S.A.
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Information placed on Web page: 24 March 2001
Updated 13 June 2005