In the past,
Voluntary Separation Incentive, Special Separation Benefit, and
other separation payments, were offered to Active Duty service
members to reduce a surplus of manpower in certain career fields.
If these service members later attained military retiree status and
began to receive Retired Pay, they had to pay back the VSI, SSB or
severance pay.
In May 2009, the
DoD announced recoupment of VSI, SSB and certain other separation
payments is temporarily suspended for military retirees in an
active pay status pending a formal policy and legal review.
Beginning June 1, 2009, these members' military retired pay was not
reduced by any recoupment amounts. The legal review is still in
progress. Members will be notified before any further action is
taken on their accounts.