Can I Lose My VA Disability Benefits?

A veteran can lose their disability benefits under certain situations. It is incumbent upon the veteran to know what these situations are so they do not inadvertently commit an act that will cause them to lose the benefits they are otherwise eligible to receive.

Circumstances Under Which Benefits May Be Forfeited

A veteran may choose to no longer receive the benefits to which they are entitled. To do this, you must submit a written and signed statement that you’d like to discontinue your benefits. The veteran may reapply for the same benefit by submitting a new application that will be treated as an original claim. Using a VA disability calculator will give you an estimate of the amount of benefits you can expect.

Why You Could Lose Your Benefits

A few common circumstances under which a veteran may involuntarily lose their VA disability benefits include the following:

• Fraud
• Treasonable acts
• Subversive activity

There are due process rights when the VA is proposing the severance of a veteran’s disability compensation. The notice that the VA is proposing to stop service-related benefits must be given to the veteran for the opportunity to argue against the proposal. If a forfeiture occurs, lost benefits may still be paid to you or your dependents.

Other Ways of Losing Benefits Already Paid by the VA

Benefits may be lost for reasons other than overt acts by the veteran. The VA may determine that overpayments were made. This determination may take place for reasons such as the following:

• Failure by the veteran to notify the VA of the death of a dependent
• Failure to report income
• Failure to report changes in educational programs
• Failure to notify the VA of a divorce
• Failure to notify the VA of incarceration
• When a veteran is a fugitive fleeing a felony conviction or charge

In each of these situations, the veteran will owe the VA for the overpayments. The VA can garnish part or all the veteran’s monthly disability payment to pay back the debt. The veteran may challenge that the overpayment was a mistake or that they are not able to pay the debt.

The veteran can dispute the overpayment or request a waiver on the basis of financial hardship or that the overpayment was the fault of the VA.

Veterans who receive severance or separation pay upon discharge from the service and later start receiving disability benefits will have to pay the severance/separation back. In addition, disability payments cannot be combined with other payments, such as:

• Readjustment pay — a lump-sum payment eligible for recoupment
• Non-disability severance pay
• Statutory disability severance pay
• Separation pay
• Special Separation Benefit
• Voluntary Separation Pay
• Reservists’ Involuntary Separation Pay

The VA can withhold some or all the monthly amount to recoup the above benefits. The only event that will keep the VA from recouping separation benefits is if the condition of disability happened after the period of service to which the separation benefits attach.

Does the VA Re-Evaluate Disability Cases?

Medical re-examinations may be required by the VA after the veteran has been separated from service for six months and again between two and five years later. If it is determined that the severity of the disability has changed and there has been improvement that is causing the current rating to be incorrect, the VA may re-evaluate the disability and assign a rating that will lower your benefits.

Usually, disability benefits are available to vets as long as the veteran is disabled and until their death. The VA may decide that you are no longer disabled, which would also lower or eliminate your benefits. .

Finally, veterans whose benefits were forfeited are eligible to apply for a pardon from the President of the United States through the Department of Justice (DOJ).