Originally Posted by
KennHC130
Hi All, New to this so please bear with. I separated back in '99 after twice non-selection to O-4. Got severance pay upon separation. Returned to active duty post 9/11 and retired in May 09. I'm back on active through the RRORP, but got a letter from DFAS saying they are going to take back the severance pay (Now over 10 years later) once I retire again at the rate of 40% per month until it is repaid. Anyone else in this situation?? Any advice?? I asked the question before returning back in '02 and swear I was told I wouldn't have to pay it back, but like an idiot, I didn't get it in writing. Thanks.
What does your separation / severance pay paperwork say? Typically, anytime the military pays you to leave, they want it back if they bring you back to active duty and you gain a retirement. This is the same for those who recently received Voluntary Separation Pay (VSP). If they return to active duty and retire and/or gain a retirement through participating in the reserves, you must pay back in full the VSP. The only way you can make out on it is if you invested the money and you ended up with a profit.
If you believe you've been slighted, call your local representatives.