I was involuntarily separated and received “readjustment pay”. I knew that I would have to pay back (satisfy the advance) before I would receive my reserve retirement at age 60. Since then, I was given a 40% rating by the VA. Again, I know that I will not receive money from the VA until I pay back (satisfy the advance, less taxes this time). My question is that when I read the DFAS Press Release 0410-003, and I read Section 1174(h) of the code, I think that I would fall under the maximum recoupment rate of 40%. Or is this not related because the VA is recouping my “readjustment pay” and not the retirement department? And, does any one know where I can find the “amended” sections 1174(h) and 1175(e) of Title 10 that the press release talks about?

Thanks for all the help