To amend title 10, United States Code, to eliminate the recoupment of separation pay, special separation benefits, and voluntary separation incentive payments from members of the Armed Forces who subsequently receive disability compensation under laws administered by the Department of Veterans Affairs and to impose limitations on the authority of the Secretary of Defense to recoup such pay from members who subsequently receive military retired or retainer pay.
To amend title 10, United States Code, to eliminate the recoupment of separation pay, special separation benefits, and voluntary separation incentive payments from members of the Armed Forces who subsequently receive disability compensation under laws administered by the Department of Veterans Affairs and to impose limitations on the authority of the Secretary of Defense to recoup such pay from members who subsequently receive military retired or retainer pay.
Plain Language Summary
# Summary of HR 7027 **What the bill would do:** This bill would change how the military handles payments given to service members when they leave the Armed Forces. Currently, if a departing service member later receives disability benefits from the VA or military retirement pay, the Department of Defense can take back (or "recoup") the separation payments they originally received. HR 7027 would eliminate this recoupment entirely for service members who receive VA disability compensation, and would limit the military's ability to recoup these payments from those who receive military retirement or retainer pay. **Who it affects:** The bill primarily affects military service members who receive separation pay, special separation benefits, or voluntary separation incentive payments when leaving active duty. This includes both those who later become disabled and qualify for VA benefits and those who qualify for military retirement pay.
Veterans' advocacy groups have long argued this policy is unfair, as service members effectively lose money they were promised. **Current status:** HR 7027 is currently in committee, meaning it has been introduced but has not yet been voted on by the full House of Representatives. It was sponsored by Rep. Gus Bilirakis (R-FL) in the 119th Congress.
Latest Action
Referred to the Committee on Armed Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.