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B-270349 1 (1996-12-17)

handle is hein.gao/gaocrptadyd0001 and id is 1 raw text is: oComptroller General of the United States Washington, D.C. 20548 Decision Matter of: Chief Hospital Corpsman, William R. Brown, USN (Ret.)--Waiver Request File: B-270349 Date: December 17, 1996 DIGEST A Navy member was separated due to physical disability and was paid severance pay. The Board for Correction of Naval Records later corrected his record to show that he had been placed on the Temporary Disability Retired List rather than separated. The Department of Veterans Affairs (VA) awarded the member VA compensation, but has withheld payment setting off such amounts against the separation pay under 10 U.S.C. § 1212, which requires repayment of the amount of disability severance pay if the member becomes entitled to VA compensation for the same disability. The correction board's action entitled the member to retired pay but also rendered the disability severance pay payment erroneous and subject to collection, but also subject to consideration for waiver. Considering the purpose of the correction board action and to prevent the inequity of placing him in debt in the new status, the net amount of the member's debt, after deduction for retroactive retired pay entitlements, is waived pursuant to 10 U.S.C. § 2774. Whether VA compensation payments also may be begun is a matter within VA's jurisdiction to decide. DECISION This is in response to the request of Chief Hospital Corpsman,William R. Brown, USN (Retired), for waiver of a debt for repayment of disability severance pay which arose when the Board for Correction of Naval Records (Board) corrected his records to state that he was retired from the United States Navy rather than separated due to a physical disability. His waiver request is granted for the net amount of his debt. BACKGROUND On July 17, 1992, Chief Brown was medically discharged with a 20 percent disability rating and thereupon received $45,525.60 in disability severance pay. Subsequently, he applied to the Board for Correction of his record to indicate that he was retired rather than discharged. The Board corrected his record to show that his name was placed on the Temporary Disability Retired List as of July 18, 1992, with a disability 1240122

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