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VA OIG: Audit of VBA’s Compensation and Pension Benefit Payments to Incarcerated Veterans

June 1, 2016

Pursuit's Take

Federal law requires VBA to reduce C&P benefits for veterans incarcerated for more than 60 days in a Federal, state, or local penal institution. VA Regional Office (VARO) and Pension Management Center (PMC) staff did not consistently take action to adjust C&P benefits for veterans incarcerated in Federal penal institutions. Specifically, based on Federal incarceration data ranging from May 2008 through June 2015, VBA did not adjust veterans’ C&P benefits, as required, in an estimated 1,300 of 2,500 cases (53 percent), which resulted in improper payments totaling approximately $59.9 million. Without improvements, we estimated VBA could make additional improper benefits payments totaling about $41.8 million for Federal incarceration cases from fiscal year (FY) 2016 through FY 2020.

Media Coverage

Wall Street Journal: Veterans Affairs Often Fails to Reduce Benefits for Incarcerated Veterans, Report Says

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