DFAS
suspends VSI/SSB recoupment
INDIANAPOLIS, IN,
May 21, 2009
,
-- Recoupment of military retirees' Voluntary Separation
Incentive (VSI), Special Separation Benefit (SSB)and separation
payments by the Defense Finance and Accounting Service (DFAS) has
been temporarily suspended pending a formal policy and legal review
by the Department of Defense (DoD).
According to DFAS officials, the suspension of
recoupment actions is being taken for military retirees in an
active pay status effective for the May 2009 retired pay
entitlements. Military retired pay for these members received on
June 1, 2009, will not be reduced by any recoupment
amounts.
VSI, SSB and certain other separation payments, such
as severance pay, were offered to active duty military members in
an effort to reduce manpower in certain career fields, primarily
during the 1990s. Those receiving these payments were also required
to maintain an affiliation with the Ready Reserve of a military
Reserve component. Provisions of these programs also included
repayment should an individual remain with the Ready Reserve and
earn status as a military retiree
The federal statutes governing these programs do not
allow the Department of Defense or DFAS to alter repayment ratios
or provide alternative repayment plans for these military retirees
regardless of the financial hardships a retiree many be
experiencing.
The policy and legal review will allow DoD and DFAS
to determine what options, if any, may be available to allow DoD to
meet its statutory responsibilities while providing relief to
military retirees impacted by recoupment actions.
Letters to military retirees in a SSB, VSI and
Separation Payment recoupment status will soon be mailed advising
them of the suspension of recoupment payments. Upon completion of
the review, these members will receive a letter prior to
recommencement of repayment reductions to their retired pay
advising them of the review conclusions.
To view a sample of the letter being sent to
military retirees affected by this action, click here.
