Catherine A. Shephard v. Eric K. Shinseki, Opinion
Number 11-2074, decided February 27, 2013 involves VA overpayments of benefits.
The veteran was incarcerated from November 2002 until
November 2008. The VA discovered the
incarceration in September 2003 and proposed to reduce the rating in June 2004
to 10% pursuant to VA regulations concerning compensation to incarcerated
veterans. The VA notified the veteran of
an overpayment of $63,000 and when she was released from prison the veteran
sought reinstatement of her full compensation and to be paid for the benefits
that were reduced.
38 USC Section 5313(a)(1)) states that a veteran “shall not
be paid for such compensation … for the period of beginning on the sixty-first
day of such incarceration and ending on the day such incarceration ends.”
Veteran argued she should receive the accrued compensation
amount after release. The Court looked
at the plain language of the statute and legislative history and found that
the purpose was to prevent the incarcerated from drawing benefits.
The Court did remand as to reasons and bases for the whether
the $63,000 debt was properly created.
Decided by C.J. Kasold, and Judges Schoelen and Pietsch.
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