VA is committed to supporting wartime Veterans and their survivors, particularly those of low income, by providing pension payments based on self-reported income levels. To ensure the accuracy of these payments, VA employs data matching techniques to verify self-reported incomes.
However, between 2011 and 2022, challenges in data matching resulted in an inability to reliably verify the self-reported Social Security income for Veterans and survivors receiving a VA pension.
Upon resuming income verification in June 2022, VA discovered that over 9,900 beneficiaries had higher incomes than reported, leading to overpayments in some instances over many years. As required by law, VA established debts for these Veterans and survivors and contacted them to recoup overpayments. Upon further review, it was also discovered that an additional 30,000 Veterans and survivors might also have pension debts that have yet to be established.
In November 2023, recognizing the hardship such debts may impose on this vulnerable group, VA halted the collection of all established pension debts and the formation of new debts while exploring all possible relief options.
However, as VA continues to process other claim types, such as dependency claims or medical expense reports, VA conducts an income match and may identify additional debts. During the period between Nov. 2023 and now, VA has determined that more than 12,000 pension beneficiaries (up from the initial estimate of 9,900) had higher incomes than reported. Some of those were initially part of the 30,000 that had not yet been processed. VA anticipates this number will continue to increase as additional claims are processed. Currently, VA has more than 27,000 individual claims related to the SSA match to review.
Based on the VA Secretary’s December 2023 guidance, VA has decided to not collect pension debts associated with the June 2022 SSA income verification match and will contact the 12,000-plus affected individuals directly to inform them of the resolution process. Additionally, we are refunding beneficiaries for any payments already made as a result of this income verification match. VA is also reviewing the causes of the data quality issue to prevent future occurrences.
We sincerely apologize to the beneficiaries impacted by these pension debt notifications and assure them that relief efforts are underway.
Following is a summary of the recent developments and the current status of this issue:
Recent Developments:
- Effective November 2, 2023, VA suspended the creation of new debts and the collection of existing debts related to this issue.
- On December 22, 2023, the VA Secretary issued guidance to not collect any debts arising from the June 2022 SSA income match and to refund any collections already made.
- January through early March 2024, VA worked with the Debt Management Center (DMC) and Veterans Benefits Administration’s Office of Financial Management on mechanisms to stop collection of debts for beneficiaries.
Current Status:
- VA continues to run this match quarterly since June 2022 to further identify beneficiaries and identify income discrepancies earlier.
- VA will inform the 12,000-plus affected beneficiaries about adjustments to their pension debt balances.
- Beneficiaries will be notified of their updated debt balances and the reduction in debt amounts.
- Beneficiaries who have made payments based on prior notifications will be informed of the refunds.
- VA is developing updated procedural guidance for claims processors related to the additional 27,000 beneficiaries identified in the June 2022 SSA income match. VA anticipates resuming claims processing by May 2024.
Actions for Beneficiaries:
Affected beneficiaries will receive a letter from the DMC. No further action is required if the current debt balance is $0.00. For those with existing debt balances, VA is ready to assist in managing these debts. We encourage beneficiaries with additional questions to visit our debt management website, va.gov/manage-va-debt, or contact us at 800-827-0648.
Veterans and survivors may also use the following resources for their questions or for additional assistance:
- For details about a debt, contact the DMC at 1-800-827-0648, available from 6:30am to 6pm CT, Monday through Friday.
- Translation services are offered in over 200 languages and dialects.
- Use Ask VA (AVA) at ask.va.gov for secure messaging—choose “Veterans Affairs – Debt” for proper routing.
- Visit the Debt Portal at va.gov/manage-va-debt for account information.
- For details on why a pension debt was issued, contact the VA benefits hotline at 1-800-827-1000 or the National Pension Call Center at 1-877-294-6380.
You are not alone!
If you need immediate support — or just someone to talk to who understands — there are lifelines available 24/7 * Veterans Crisis Line 988 (Press 1) or TEXT the Crisis Line at 838255 * Vet Center Call Center at 877-WAR-VETS (927-8387) * Military Helpline 1-888-457-4838
