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HRD-85-38 1 (1985-05-29)

handle is hein.gao/gaobabfca0001 and id is 1 raw text is: )l BY THE US. GENERAL ACCOUNTING OFFICE Report To The Secretary Of Defense And The Administrator Of Veterans Affairs VA Can Reduce Excess Disability Payments By Improving Pay Data Exchange With The Military Services Federal law requires that the Veterans Administration (VA) withhold disability benefits whenever a veteran reenlists in the active military service. GAO found that disabled veterans do not always notify VA when they reenter active service, and VA has no effective controls to identify veterans who do not notify it. Consequently, VA paid in excess of $1 million in both 1982 and 1983 for disability compensation benefits to veterans on active duty. Also, the military services make lump-sum separation payments to members who are involuntarily discharged for disability and nondis- ability reasons. Federal law requires that VA withhold disability payments until an amount equal to the full separation payment has been recouped. GAO found, however, that the Department of Defense (DOD) and VA lack adequate controls to ensure that all separation pay data are provided and that VA withholds disability payments. Based on GAO's review of DOD separation payments for 1983, VA had not withheld the appropriate monthly disability payments on an estimated $1.6 million in total lump-sum separation pay made by the military services in 1983. This report recommends a number of actions that VA and DOD should implement so that veterans do not receive disability benefits to which they are not entitled. VA and DOD generally agreed with GAO's findings and recommendations. \ o i lI ll l lll 1111 J IJ I l ll 127050 rn U z 2 z -4 ,/GAO/HRD-5-38 1~c~o ~ 03L/72MAY 29.,1985

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