SSB recoupment – Is Retirement the same thing as disability. : Veterans

Former high ranking service members who voluntary left the service during Presidents Clintons military reduction program were offered a Special Separation Bonus (SSB). The purpose was to reduce the predicted retirement burden for the government.

Many veterans have encountered a problem when being awarded a disability, whereas the SSB amount must be recouped before payment of their disability.

The VA has been challenged with veterans who claim the recoupment is improper and has no bases. Senator Mark Warner from Virginia agrees with this statement.

https://www.warner.senate.gov/public/index.cfm/2015/10/sen-warner-presses-va-dod-on-rules-for-payback-of-military-separation-pay

The agreement signed by veterans stated:

“If, by virtue of my reserve service or otherwise, I later become eligible for retired or retainer pay under title 10 or title 14, U.S.C., based in part on active duty for which I received SSB, I will have an amount deducted from each payment of that retired or retainer pay until the amount deducted equals the total amount of SSB received.”

This paragraph does not apply to disabilities unless you consider retirement the same thing as disability.

Have any of you had experience with this and how was it handled?