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FPCD-78-75 1 (1978-12-27)

handle is hein.gao/gaobaaykd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 frIMCNAL PIRSONNEL MO ( 4 COMPNHSATION DIVISION B-114859 DECEMBER 27,1978 The Honorable James T. McIntyre, Jr. Director, Office of Management and Budget Dear Mr. McIntyre: During the past 5 years, we have issued several reports 1/ on problems in the Veterans Administration's (VA) and the Department of Defense's (DOD) administration of interrelated pay items. Current laws and regulations require that a veteran who receives retirement, disability retirement, disability severance, or readjustment pay benefits from the services must offset, all or part of, disability compensation received from VA. The Defense Audit Service is working with the services and VA in reconciling nondisability and disability retire- ment accounts with VA accounts. Our analysis of the ad- ministration of Air Force and VA accounts for readjustment and disability severance payments 5isclosed that in more than half of the 88 cases revieweu where Air Force members received readjustment pay and subsequently awarded VA dis- ability compensation, offsets totaling $414,900 were not made or were made incorrectly. Although we analyzed only Air Force readjustment pay and disability severance pay, we believe that the other services may be experiencing similar errors. VA and the services should perform a full reconciliation of readjustment and disability severance payments to make sure that offsets were made correctly for members' subsequently awarded VA disability compensation. We were told that VA and the Defense Audit Service plan to reconcile these accounts in the second quarter of calendar year 1979. (See enc. for a detailed analysis.) 1/Letter reports to the Secretary of Defense on military disability retirement processing (FPCD-77-45, Apr. 18, 1977; FPCD-76-59, May 11, 1976; and B-168308, Mar. 19, 1973). S1082302969

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