United States General Accounting Office

GAO Report to the Ranking Minority Member,

Committee on Veterans’ Affairs, U.S.

Senate

April 1995 VETERANS’

BENEFITS

VA Can Prevent

Millions in

Compensation and

Pension Overpayments

GAO/HEHS-95-88

GAO United States

General Accounting Office

Washington, D.C. 20548

Health, Education, and

Human Services Division

B-256747 

April 28, 1995

The Honorable John D. Rockefeller IV

Ranking Minority Member

Committee on Veterans’ Affairs

United States Senate

Dear Senator Rockefeller:

Over the past decade, the Department of Veterans Affairs (VA) detected

almost $3.1 billion in compensation and pension overpayments.

Overpayments occur when recipients receive benefits to which they are

not entitled as a result of changes in their income, dependency, or medical

status. These overpayments are debts owed the U.S. government and, if

not collected, result in taxpayers financing unwarranted program

expenses.

While VA detects overpayments after they occur and tries to collect them,

its collection rate has been about 30 percent.1

 Preventing overpayments

would help reduce collection problems and associated costs. Therefore,

you asked us to provide the status of VA’s compensation and pension

overpayments and assess VA’s efforts to prevent them from occurring.

Results in Brief Despite its responsibility to ensure accurate benefits payments, VA

continues to overpay veterans and their survivors hundreds of millions of

dollars in compensation and pension benefits each year. For example, in

1994, VA detected about $372 million in overpayments to its beneficiaries.

Based on our analysis of a survey of overpayments in May 1994, changes in

income accounted for a large portion of overpayments, and receipt of

Social Security benefits accounted for a significant share of

income-related overpayments.

VA has the capability to prevent millions of dollars in overpayments, but

has not done so because it has not focused on prevention. For example, VA

does not use available information, such as when beneficiaries will

become eligible for Social Security benefits, to prevent the overpayments

from occurring. Furthermore, VA does not systematically collect, analyze,

and use information on the specific causes of overpayments that will help

it target preventive efforts.

1

Our report entitled Debt Management: More Aggressive Actions Needed to Reduce Billions in

Overpayments (GAO/HRD-91-46, July 9, 1991) identified, among other things, problems with VA’s

collection of overpayments.

Page 1 GAO/HEHS-95-88 VA Overpayments
B-256747 

Background In 1994, VA paid over $16 billion in compensation and pension benefits to

about 3.3 million people. VA’s compensation program pays benefits to U.S.

military veterans who are disabled by injury or disease incurred during

active service in the line of duty. Its pension program pays benefits to

wartime veterans with limited income who become permanently and

totally disabled after active service.

In each program, benefit amounts can be affected by changes in the status

of the person receiving benefits. A beneficiary’s status can be affected by

various types of common events, such as changes in marital status,

physical condition, or income. For example, beneficiaries who receive VA

pension benefits up to an allowed level have their benefits reduced by $1

for each $1 received from Social Security or other sources such as military

retirement or wages. Beneficiaries receiving compensation benefits who

divorce may have their benefits reduced. Furthermore, under certain

circumstances, benefit amounts are reduced if a beneficiary is hospitalized

at a VA medical center.

VA relies heavily on beneficiaries to voluntarily report changes in status

accurately and promptly. VA also uses other means to determine changes

in status, such as annual eligibility verification reports, periodic status of

dependents questionnaires, and computer matches with other federal

agencies. These methods are generally directed at detecting overpayments

after they occur. Before VA can reduce benefits, it must give the

beneficiary an opportunity to respond to VA’s notification that benefits are

to be reduced.

VA’s Compensation and Pension Service within the Office of the Under

Secretary for Benefits is responsible for developing adequate procedures

for ensuring that payments made to beneficiaries are accurate. VA regional

offices (VARO) use these procedures when making adjustments to

beneficiaries’ compensation and pension payments. When overpayments

occur, VA’s Debt Management Center (DMC) is responsible for collecting

them.

Scope and

Methodology

We did our work at VA’s headquarters in Washington, D.C., at DMC in St.

Paul, Minnesota, and at five VAROs. As part of our work, we sent

questionnaires to 54 VAROs to get information about 600 stratified,

randomly sampled overpayment cases out of a universe of about 17,000

cases for the month of May 1994. We also interviewed agency officials

responsible for managing compensation and pension overpayments,

Page 2 GAO/HEHS-95-88 VA Overpayments
B-256747 

reviewed selected overpayment case files, and observed regional office

overpayment activities. We focused our work on providing examples of

potential solutions to preventing income-related pension overpayments,

which accounted for a large portion of the overpayments. We did our work

between March 1994 and February 1995 in accordance with generally

accepted government auditing standards.

See appendix I for more information on our scope and sampling

methodology. Appendix II contains the questionnaire used for the survey,

and appendix III contains a summary of the responses to our

questionnaire.

Status of

Compensation and

Pension

Overpayments

Each year, VA overpays hundreds of millions of dollars in compensation

and pension benefits. In 1994, VA detected about $372 million that it had

erroneously paid to compensation and pension beneficiaries. VA collects,

on average, about 30 percent of its outstanding overpayments. As a result,

VA’s outstanding overpayment balance increased from over $304 million in

1985 to about $618 million in 1994, as shown in figure 1. According to the

director of the DMC, collecting these overpayments is difficult because

many beneficiaries have limited incomes and are not able to repay the

debt.

Page 3 GAO/HEHS-95-88 VA Overpayments
B-256747 

Figure 1: VA’s Outstanding

Compensation and Pension

Overpayments, Fiscal Years 1985-94

Dollars in Millions

0

100

200

300

400

500

600

700

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

Fiscal Year

Source: VA’s DMC.

Reasons for these overpayments include changes in beneficiaries’ income,

dependency, or medical status. Our survey results showed that changes in

beneficiaries’ income accounted for a large portion (about 35 percent) of

overpayments in 1994, as shown in figure 2. We also found that

beneficiaries whose pensions were not adjusted after receiving Social

Security benefits accounted for a significant share (about 39 percent) of

income-related overpayments, as shown in figure 3.

Page 4 GAO/HEHS-95-88 VA Overpayments
B-256747 

Figure 2: Changes in Income

Accounted for a Large Portion of

Overpayments in May 1994

35% • Income

29% • Dependency

19%•

Other

•18%

Medical

Note: Percentages do not add to 100 because of rounding.

Page 5 GAO/HEHS-95-88 VA Overpayments
B-256747 

Figure 3: Social Security Accounted

for a Significant Share of

Income-Related Overpayments in

May 1994

39% • Social Security

26%•

Interest and Dividends

16%•

Wages From Employment

•19%

Other

Our survey results showed that, on average, VA learns about changes in

beneficiaries’ status about 5 months after they occur. We found that in half

the cases, VA learns about the changes within 1 month, and in about

13 percent of the cases, VA does not learn about the changes for a year or

more after they occur. For one case in our sample, VA did not learn about a

change in a beneficiary’s marital status for 9 years, resulting in a $5,103

overpayment. In another case, over 3 years passed before VA learned about

a change in a beneficiary’s financial status, resulting in a $19,969

overpayment.

Our survey results showed that VA takes an average of about 4 months to

terminate or reduce benefits after learning about changes in beneficiaries’

status. In half the cases, VA takes about 1-1/2 months, and in about

10 percent of the cases, VA takes 8 months or more, to terminate or reduce

benefits after it learns about the changes. For example, in one case, VA

took more than 15 months to reduce a veteran’s payments after learning

that he had been hospitalized at a VA Medical Center, resulting in a $17,477

Page 6 GAO/HEHS-95-88 VA Overpayments
B-256747 

overpayment. In another case, VA took almost 2 years to process a change

in a beneficiary’s marital status, resulting in a $2,605 overpayment.

Officials at VA’s Compensation and Pension Service and at the five VAROs

we visited agreed that months and even years pass before VA learns about

changes in beneficiaries’ status. They also agreed that VA contributes to

overpayments by not making appropriate adjustments to beneficiaries’

payments in a timely manner.

VA Can Prevent

Certain

Overpayments, but

Has Not

Although VA has the capability to prevent millions of dollars in

overpayments, it has not done so because it has not focused on

prevention. For example, VA does not use available information to take

action to avoid overpayments.

Adjudication officials at the five VAROs we visited told us that months may

pass before VA learns that beneficiaries are also receiving Social Security

benefits. Our survey results confirmed that, on average, more than 4

months passed before VA learned about VA pension recipients who had

begun receiving Social Security benefits. In half the cases, slightly more

than 1 month had passed, and in about 16 percent of the cases, a year or

more had passed. For example, in one pension case, VA did not learn that

the beneficiary was receiving Social Security benefits for over 15 months,

resulting in a $1,679 overpayment. In another case, VA did not learn that

the beneficiary had been receiving Social Security for almost 20 months,

resulting in a $2,745 overpayment.

None of the five VAROs we visited have procedures in place to alert

adjudicators when beneficiaries will become eligible for Social Security

benefits. This knowledge would allow VA to make timely adjustments to

pension benefit payments and avoid overpayments. VA could use

beneficiaries’ age—information that VA has—to anticipate when they will

become eligible for Social Security benefits. VA could send beneficiaries a

letter prior to their becoming eligible to inform them of their responsibility

to report their Social Security benefits. Given that most people know in

advance both the date they will begin receiving Social Security and the

amount they will receive, VA could request beneficiaries to return a copy of

their Social Security Administration (SSA) award letter to confirm this

information. VA could then adjust pension benefits the month beneficiaries

begin receiving Social Security, thus preventing months or even years of

overpayments. In cases in which beneficiaries do not respond to VA’s

request, VA could contact SSA to verify whether beneficiaries are receiving

Page 7 GAO/HEHS-95-88 VA Overpayments
B-256747 

these benefits. VA could then take the appropriate action to prevent the

overpayment.

Officials at VA’s Compensation and Pension Service and at the five VAROs

we visited agreed that VA could prevent these overpayments by

establishing procedures to alert adjudicators when beneficiaries will

become eligible for Social Security benefits. The director of VA’s Debt

Management Center said that May 1994, the month in which our sample

was taken, is typical in terms of the number and dollar value of

overpayment cases detected throughout the year. Therefore, we estimate

that VA could have prevented as much as 14 percent—or about

$52 million—of overpayments in 1994 by establishing such procedures.

These officials agreed that the potential savings that would occur by

preventing these overpayments would greatly exceed any costs associated

with implementing these procedures.

VA Lacks Detailed

Information to Target

Additional Prevention

Efforts

To effectively prevent compensation and pension overpayments, VA needs

to know their specific causes. However, VA officials at the five VAROs we

visited did not know the specific causes of overpayments, nor the extent

to which they occur, which would enable them to take preventive actions.

VARO officials did not know the causes because they do not routinely

gather and analyze this information. These officials added that VA’s

Compensation and Pension Service has not issued any guidance requiring

them to collect and analyze such data. Furthermore, none of the VAROs we

visited had conducted any studies to determine the specific causes of

overpayments.

Although VA maintains general information on overpayments, some of this

information is not specific enough. For example, while this information

shows that an overpayment is income related, it does not identify whether

the income is from interest and dividends, military retirement, Social

Security, wages from employment, or some other source. VA’s existing

system for coding changes in beneficiary status could be modified by

adding additional reason codes to capture more specific information.

Gathering and analyzing information on the specific causes of

overpayments is important so that VARO officials can use this information

to determine how best to prevent overpayments. VARO officials agreed that

information on the specific causes of overpayments would assist them in

targeting their efforts to prevent overpayments.

Page 8 GAO/HEHS-95-88 VA Overpayments
B-256747 

Conclusions Compensation and pension overpayments continue to be a significant

problem. VA continues to overpay hundreds of millions of dollars in

compensation and pension benefits each year and does not collect about

70 percent of these overpayments. By taking a proactive role in preventing

overpayments, VA could save millions of dollars. VA could use available

information to prevent overpayments from occurring, and it could prevent

additional overpayments by collecting, analyzing, and using information

on the specific causes of overpayments, which would enable VA to target

preventive efforts.

Recommendations To better prevent compensation and pension overpayments, we

recommend that the Secretary of Veterans Affairs direct the Under

Secretary for Benefits to

• establish procedures that focus on preventing overpayments that include

identifying beneficiaries who will soon become eligible for Social Security

benefits and obtaining the necessary information to timely adjust their

benefit payments; and

• collect, analyze, and use information on the specific causes or contributing

factors of overpayments to develop strategies for targeting additional

preventive efforts.

Agency Comments As requested, we did not obtain official agency comments. However, we

discussed the report’s contents with responsible VA officials, who generally

agreed with its findings and recommendations, and incorporated their

comments where appropriate.

Page 9 GAO/HEHS-95-88 VA Overpayments
B-256747 

We are sending copies of this report to interested congressional

committees, the Secretary of Veterans Affairs, and other interested parties.

If you have any questions about this report, please contact me at

(202) 512-7101. Major contributors to this report are listed in appendix IV.

Sincerely yours,

David P. Baine

Director, Federal Health Care

 Delivery Issues

Page 10 GAO/HEHS-95-88 VA Overpayments
Page 11 GAO/HEHS-95-88 VA Overpayments
Contents

Letter 1

Appendix I 

Scope and

Methodology

14

Appendix II 

GAO’s Questionnaire

on Compensation and

Pension

Overpayments

17

Appendix III 

Summary of

Responses to GAO’S

Survey of VA

Compensation and

Pension

Overpayments

24

Appendix IV 

Major Contributors to

This Report

29

Tables Table I.1: VA Overpayment Cases, May 1994 14

Table I.2: Dollar Value of VA Overpayment Cases by Type of

Benefit, May 1994

15

Table I.3: Sampling Errors for Figures 2 and 3 15

Table III.1: Primary Causes of Overpayments 24

Table III.2: Specific Causes of Income-Related Overpayments 24

Table III.3: Specific Causes of Dependency-Related

Overpayments

25

Table III.4: Specific Causes of Medical-Related Overpayments 25

Table III.5: Specific Causes of Other-Related Overpayments 26

Page 12 GAO/HEHS-95-88 VA Overpayments
Contents

Table III.6: How VA Was First Made Aware of Overpayments 27

Table III.7: Responses as to Whether Waiver Had Been Requested

for Overpayment

28

Table III.8: Responses as to Whether Requested Waiver Had Been

Granted for an Overpayment

28

Table III.9: Days Elapsed Between Date Overpayment Occurred

and Date VA Learned About Overpayment

28

Table III.10: Days Elapsed Between Date VA Learned About

Overpayment and Date VA Informed the Veteran/Beneficiary That

VA Had Acted to Reduce or Terminate His or Her Benefit

28

Figures Figure 1: VA’s Outstanding Compensation and Pension

Overpayments, Fiscal Years 1985-94

4

Figure 2: Changes in Income Accounted for a Large Portion of

Overpayments in May 1994

5

Figure 3: Social Security Accounted for a Significant Share of

Income-Related Overpayments in May 1994

6

Abbreviations

DMC Debt Management Center

SSA Social Security Administration

VA Department of Veterans Affairs

VARO VA regional office

Page 13 GAO/HEHS-95-88 VA Overpayments
Appendix I 

Scope and Methodology

To learn about and understand the characteristics of compensation and

pension cases for which VA had paid veterans or their beneficiaries more

money than was appropriate, we analyzed a national random sample of

compensation and pension overpayment cases. We asked VA’s Debt

Management Center at Fort Snelling, Minnesota, to provide us with a list of

overpayment cases it discovered during May 1994. VA provided us a list

that contained 16,995 compensation and pension overpayment cases. This

list represented the universe of cases for our study.

After a case is identified as being in overpayment status, VA notifies the

veteran or the beneficiary of the fact. A case is “closed” when either the

veteran/beneficiary makes arrangements with VA to reimburse VA or VA

waives the overpayment. In either event, the length of time in which a case

is in overpayment status varies. A case may be closed quickly, or it may

take months to be resolved and remain open for an extended period of

time. Over two-fifths (42 percent, or 7,056) of the cases in our 1-month

universe were closed by VA within the month. We included in our sample

both open and closed cases. We selected a stratified, random sample of

600 of these cases from the following four groups: open compensation,

closed compensation, open pension, and closed pension cases.

For each case in our sample, we mailed a questionnaire to the VA regional

office (VARO) responsible for administering that case. VAROs were able to

complete the questionnaires for practically every overpayment case in our

sample. Fifteen questionnaires could not be completed because the

sampled cases were unavailable at the regional office at the time of our

request. VAROs completed and returned to us 98 percent of the

questionnaires we mailed (585 of 600). (A copy of the questionnaire is

included in app. II; app. III contains the responses to our survey for the

total sample and for each type of benefit.)

The following table summarizes the number of overpayments of our

universe and sample, and the number of completed questionnaires

returned to us.

Table I.1: VA Overpayment Cases,

May 1994 Type of benefit Universe Sample Response

Open compensation 3,633 200 193

Closed compensation 3,173 100 94

Open pension 6,306 200 199

Closed pension 3,883 100 99

Total 16,995 600 585

Page 14 GAO/HEHS-95-88 VA Overpayments
Appendix I 

Scope and Methodology

The actual total dollar value of the 16,995 pension and compensation

overpayment cases for May 1994 was $21,925,302. Table I.2 summarizes

the total, mean, and median dollar values for each stratum.

Table I.2: Dollar Value of VA

Overpayment Cases by Type of

Benefit, May 1994 Type of benefit

Total

overpayments Mean value

Median

value

Compensation (open and closed, combined) $9,443,508 $1,388 $324

Open compensation 6,938,760 1,910 392

Closed compensation 2,504,749 789 284

Pension (open and closed, combined) 12,481,793 1,225 324

Open pension 10,682,690 1,694 510

Closed pension 1,799,104 463 155

Total $21,925,301 $1,290 $324

Because our samples are representative, the statistics we cite based on the

questionnaire are estimates relating to all 16,995 compensation and

pension overpayments for May 1994. We calculated sampling errors for

estimates from this survey at the 95-percent confidence level. This means

that the chances are about 19 out of 20 that the actual percentage being

estimated falls within the range defined by our estimate, plus or minus the

sampling error. The sampling errors for estimates used in this report

follow in table I.3 and subsequent paragraphs. Although our results pertain

to the month of May, VA officials told us that May was typical of any other

month of the year and it was reasonable to assume that it was

representative of VA overpayments throughout the year.

Table I.3: Sampling Errors for Figures

2 and 3 Figure Category Sampling error

2 Income 35%, +/- 10 percentage points

Dependency 29%, +/- 10 percentage points

Medical 18%, +/- 10 percentage points

Other 19%, +/- 8 percentage points

3 Social Security 39%, +/- 14 percentage points

Interest and dividends 26%, +/- 16 percentage points

Wages and employment 16%, +/- 12 percentage points

Other 19%, +/- 12 percentage points

Our sampling errors for the time period between an event that changed a

veteran’s status and when VA learned about the event are as follows: VA

learned about changes in beneficiaries’ status in 149 days, plus or minus 38

Page 15 GAO/HEHS-95-88 VA Overpayments
Appendix I 

Scope and Methodology

days, after they occurred. In half the cases, VA learned about the changes

in 26 days, plus or minus 19 days. VA did not learn about the changes for a

year or more in about 13 percent of the cases, plus or minus 3 percentage

points. (See p. 6.)

Our sampling errors for the time period between when VA learned about a

change in a veteran’s status and when VA terminated or reduced benefits

are as follows: It took VA, on average, 113 days, plus or minus 32 days, to

terminate or reduce benefits after learning about a change in status. In half

the cases, it took VA 50 days, plus or minus 10 days, to terminate or reduce

benefits. In 10 percent of the cases, plus or minus 3 percentage points, it

took VA 240 days or more to terminate or reduce benefits. (See p. 6.)

For changes in pension benefits, our sampling errors were as follows: An

average of 134 days, plus or minus 32 days, passed before VA learned that

pension recipients had begun receiving Social Security. In half the cases,

35 days, plus or minus 19 days, had passed. In 16 percent of the cases, plus

or minus 5 percentage points, a year or more had passed. (See p. 7.)

Our sampling errors for the percentage and dollar amount of

overpayments in 1994 VA could have prevented with procedures in place to

alert adjudicators that veterans were eligible for Social Security are as

follows: 14 percent, plus or minus 4 percentage points, or about

$52 million, plus or minus $15 million, in overpayments could have been

prevented. (See p. 8.)

Page 16 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

United States General Accounting Office

GAO Complete this questionnaire based on the information contained in

the folder for the VA file number and overpayment printed below:

VA file number: VA Discovery Date:

Total A/R Amount: $ Station Number (RO):

Benefit type:

1994 Questionnaire on

Compensation and

Pension

Overpayments

Page 17 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

U.S. General Accounting Office

Questionnaire on Compensation and Pension Overpayments

The U.S. General Accounting Office (GAO) has been asked by Congress to examine the causes of

compensation and pension overpayments made to veterans and their survivors.

The overpayment case identified on the label affixed to the cover of this questionnaire was selected

at random from a file that VA’s Debt Management Center provided to us. That file contained all

compensation and pension overpayment cases for which the Center assumed responsibility in May,

1994. Please answer the questions on the following pages based on information in the folders you

maintain for this overpayment case under the file number on the label. If you have any questions

concerning the information we are requesting, please call either Jeff Pounds or Charles Taylor at our

Atlanta Regional Office. Their telephone numbers are listed below.

Please complete this questionnaire within 2 weeks of receipt and return it

in the enclosed business reply envelope.

If the envelope has been misplaced, please return this questionnaire to:

Jeff Pounds

U.S. General Accounting Office

2635 Century Parkway, Suite 700

Atlanta, GA 30345

Questions? Call either Jeff Pounds at 404-679-2008 or Charles Taylor at 404-679-1892 in

our Atlanta Regional Office between 8 a.m. and 4 p.m., Eastern Time.

94.7.105732HEHS.MJO

Page 18 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

Before answering any questions, Please provide

the following information:

......................................

Name of person completing this questionnaire

......................................

Position title

......................................

Telephone number (with area code)

1. What type of compensation or pension benefit is

this overpayment related to? (Check one.)

1. Disability compensation

2. Disability pension

3. Dependency and indemnity

compensation (DIC)

4. Survivors pension

5. Other (Please specify): ...........

............................

2. Below are listed possible reasons why an

overpayment was made in this case. Please

check two boxes: (1) the primary reason an overpayment was

made by checking one of the boxes

numbered 1, 2, 3 or 4, then,

(2) within that primary reason, the specific reason by checking one of the boxes coded

with a letter.

1. INCOME related to (Check one box that contains the specific reason.):

a. Veteran’s social security

b. Spouse’s or dependent’s social security

c. U.S. civil service retirement

d. U.S. railroad retirement

e. Military retirement

f. Military survivor benefits

g. Black lung benefits

h. Wages from employment

i. Interest and dividends

j. Dependency income

k. Excessive net worth

l. Lottery/gambling winnings

m. Other (Describe): ............

.........................

2. DEPENDENCY related to (Check one box that contains the specific reason.):

a. Death of veteran

b. Apportionment

c. Dependency income

d. Dependency status not established

e. Child became 18

f. Child terminated school or

reached 23 years of age

g. Child over 18 entered school

h. Dependent added

i. Dependent terminated (divorce, death, etc.)

j. Other (Describe): ............

.........................

3. MEDICAL related to (Check one box that contains the specific reason.):

a. Veteran hospitalized

b. Veteran’s nursing home status

c. Prospective medical expenses

d. Other (Describe): ............

.........................

4. OTHER related to (Check one box that contains the specific reason.):

a. Incarceration

b. Concurrent benefits

c. VA error

d. Beneficiary’s failure to return required document(s) (Describe):

.........................

e. Other (Describe): ............

.........................

Page 19 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

3. On what date did the specific reason you selected in question 2 occur? (For example,

the date a veteran began receiving social security. Check the box if the date is

not contained in the file) ................................................... _____/_____/_____

month/ day/ year

Date not contained in the file

4. How was VA first made aware that this case might be an overpayment? (Check one)

1. Eligibility Verification Report (EVR)

2. SSA/VA Income Verification Match (IVM)

3. SSA/VA computer match other than IVM

4. IRS/VA Income Verification Match (IVM)

5. Computer match with some agency or organization other than SSA or IRS

6. Informed by a Veteran Benefit Counselor

7. Informed by a third party, other than Veteran Benefit Counselor

8. Informed by the veteran or the beneficiary

9. Status of Dependents Questionnaire

10. Automated Medical Information Exchange (AMIE)

11. VA Medical Center other than AMIE

12. VA Inspector General (IG) review/survey

13. Informed by a state welfare agency

14. Other (Describe): ................................................................

5. On what date was VA first notified of the potential overpayment by the source you

selected in question 4? .................................................... _____/_____/_____

month/ day/ year

6. What is the date on the letter VA mailed to the veteran/beneficiary first informing the

veteran/beneficiary that they might be in a possible overpayment status? (This letter is

often referred to as the "proposal," "due-process," or "notification" letter.) ................ _____/_____/_____

month/ day/ year

7. What is the date on the letter VA mailed to the veteran/beneficiary that told the veteran/beneficiary

that VA had taken action to reduce or terminate their benefit? (This letter is often referred to as

the "contemporaneous" letter.) ............................................... _____/_____/_____

month/ day/ year

8. What is the beginning date upon which the overpayment period was calculated? .......... _____/_____/_____

month/ day/ year

9. Has a waiver for this particular overpayment amount been requested? (Check one)

1. Yes--> If yes, continue to question 10.

2. No---> If no, go to question 11, page 3.

10. Has a waiver been granted? (Check one)

1. Waiver was granted.

2. Waiver was denied.

3. Decision on whether or not to grant a waiver is pending.

4. Other (Specify): .................................................................

Page 20 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

11. What additional information about this particular overpayment case, if any, do you believe is important for us to

know so that we have a better understanding about the circumstances in which VA had to process this case?

If none, check this box: -----> Please continue to question 12 on the next page.

Continue to question 12 on the next page---------->

Page 21 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

12. Consider this particular overpayment case. What actions, if any, do you believe VA could have taken that might

have prevented this particular case from becoming an overpayment?

If none, check this box: -----> Please continue to question 13 on the next page.

Continue to question 13 on the next page---------->

Page 22 GAO/HEHS-95-88 VA Overpayments
Appendix II 

GAO’s Questionnaire on Compensation and

Pension Overpayments

13. Again, consider this particular overpayment case. What actions, if any, do you believe VA could have taken that

might have shortened the amount of time it took VA to reduce or terminate this benefit?

If none, check this box: Thank you for completing this questionnaire.

Thank you for completing this questionnaire.

Page 23 GAO/HEHS-95-88 VA Overpayments
Appendix III 

Summary of Responses to GAO’S Survey of

VA Compensation and Pension

Overpayments

Table III.1: Primary Causes of

Overpayments (Question 2) 

Responses by type of benefit

Numbers in percent

Primary cause

Combined

responses Compensation Pension

Income-related 31 2 51

Dependency-related 53 84 32

Medical-related 6 5 7

Other-related 10 10 10

Total 100 100 a 100

aThe sum of the percentages exceeds 100 because of rounding.

Table III.2: Specific Causes of

Income-Related Overpayments

(Question 2, Part 1) Responses by type of benefit

Numbers in percent

Specific income-related

cause

Combined

responses Compensation Pension

Veteran’s social security 10 0 17

Spouse’s or dependent’s

social security 9 2 14

U.S. Civil Service a 0 1

U.S. railroad retirement 0 0 0

Military retirement 0 0 0

Military survivor benefits 0 0 0

Black lung benefits 0 0 0

Wages from employment 3 0 5

Interest and dividends 5 0 8

Dependency income a 0 1

Excess net worth a 0 a

Lottery/gambling winnings a 0 1

Other income-related 3 0 4

Total 31b 2 51

aResponse rate was less than 1 percent.

bThe sum of the combined responses does not equal the total because of rounding.

Page 24 GAO/HEHS-95-88 VA Overpayments
Appendix III 

Summary of Responses to GAO’S Survey of

VA Compensation and Pension

Overpayments

Table III.3: Specific Causes of

Dependency-Related Overpayments

(Question 2, Part 2) 

Responses by type of benefit

Numbers in percent

Specific

dependency-related

cause

Combined

responses Compensation Pension

Death of veteran 29 45 18

Apportionment 2 3 a

Dependency income 0 0 0

Dependency status not

established a 1 0

Child became 18 a 0 0

Child terminated school or

reached 23 years of age 5 11 1

Child over 18 entered

school a a 0

Dependent added a 0 a

Dependent terminated 12 17 9

Other dependency-related 5 6 4

Total 53 84b 32

aResponse rate was less than 1 percent.

bThe sum of the numbers does not add to the total because of rounding.

Table III.4: Specific Causes of

Medical-Related Overpayments

(Question 2, Part 3) Responses by type of benefit

Numbers in percent

Specific medical-related

causes

Combined

responses Compensation Pension

Veteran hospitalized 3 4 2

Veteran’s nursing home

status a 1 0

Prospective medical

expenses 2 a 4

Other medical-related 1 a 2

Total 6 5 7b

aResponse rate was less than 1 percent.

bThe sum of the percentages exceeds the total because of rounding.

Page 25 GAO/HEHS-95-88 VA Overpayments
Appendix III 

Summary of Responses to GAO’S Survey of

VA Compensation and Pension

Overpayments

Table III.5: Specific Causes of

Other-Related Overpayments

(Question 2, Part 4) Responses by type of benefit

Numbers in percent

Specific other-related

causes

Combined

responses Compensation Pension

Incarceration a 1 a

Concurrent benefits 0 0 0

VA error 3 3 3

Beneficiary’s failure to

return required

document(s) 3 1 5

Other other-related 4 5 2

Total 10 10 10

aResponse rate was less than 1 percent.

Page 26 GAO/HEHS-95-88 VA Overpayments
Appendix III 

Summary of Responses to GAO’S Survey of

VA Compensation and Pension

Overpayments

Table III.6: How VA Was First Made

Aware of Overpayments (Question 4) 

Responses by type of benefit

Numbers in percent

Way VA became aware

of overpayment

Combined

responses Compensation Pension

Eligibility Verification

Report (EVR) 18 2 29

SSA/VA Income

Verification Match (IVM) 1 0 2

SSA/VA computer match

other than IVM 9 6 11

IRS/VA Income Verification

Match (IVM) 2 0 4

Computer match with

some agency other than

SSA or IRS 0 0 0

Informed by a Veterans

Benefit Counselor 6 6 6

Informed by a third party,

other than Veterans

Benefit Counselor 19 27 14

Informed by the veteran or

the beneficiary 16 16 16

Status of Dependents

Questionnaire 2 5 a

Automated Medical

Information Exchange

(AMIE) 2 3 2

VA Medical Center other

than AMIE 3 5 2

VA Inspector General (IG)

review/survey a 0 a

Informed by a state

welfare agency 0 0 0

Other 20 30 13

Total 98b 100 99b

aResponse rate was less than 1 percent.

bSum of the percentages does not add to 100 because of rounding.

Page 27 GAO/HEHS-95-88 VA Overpayments
Appendix III 

Summary of Responses to GAO’S Survey of

VA Compensation and Pension

Overpayments

Table III.7: Responses as to Whether

Waiver Had Been Requested for

Overpayment (Question 9) Responses by type of benefit

Numbers in percent

Requested?

Combined

responses Compensation Pension

Yes 8 3 12

No 92 97 88

Total 100 100 100

Table III.8: Responses as to Whether

Requested Waiver Had Been Granted

for an Overpayment (Question 10) Responses by type of benefit

Numbers in percent

Waiver status

Combined

responses Compensation Pension

Granted 44 9 50

Denied 8 9 8

Decision still pending 29 55 24

Other 19 27 18

Total 100 100 100

Table III.9: Days Elapsed Between Date

Overpayment Occurred and Date VA

Learned About Overpayment

(Questions 3 and 5) Responses by type of benefit

Days

Combined

responses Compensation Pension

Mean 149 166 136

Median 26 17 35

Table III.10: Days Elapsed Between

Date VA Learned About Overpayment

and Date VA Informed the

Veteran/Beneficiary That VA Had Acted

to Reduce or Terminate His or Her

Benefit (Questions 5 and 7) 

Responses by type of benefit

Days

Combined

responses Compensation Pension

Mean 113 112 114

Median 50 32 54

Page 28 GAO/HEHS-95-88 VA Overpayments
Appendix IV 

Major Contributors to This Report

Irene Chu, Assistant Director, (202) 512-7102

Charles Taylor, Evaluator-in-Charge

Steve Morris

Michael O’Dell

Jeffrey Pounds

Pamela Scott

Joan Vogel

(105732) Page 29 GAO/HEHS-95-88 VA Overpayments
Ordering Information

The first copy of each GAO report and testimony is free.

Additional copies are $2 each. Orders should be sent to the

following address, accompanied by a check or money order

made out to the Superintendent of Documents, when

necessary. Orders for 100 or more copies to be mailed to a

single address are discounted 25 percent.

Orders by mail:

U.S. General Accounting Office

P.O. Box 6015

Gaithersburg, MD 20884-6015

or visit:

Room 1100

700 4th St. NW (corner of 4th and G Sts. NW)

U.S. General Accounting Office

Washington, DC

Orders may also be placed by calling (202) 512-6000 

or by using fax number (301) 258-4066, or TDD (301) 413-0006.

Each day, GAO issues a list of newly available reports and

testimony. To receive facsimile copies of the daily list or any

list from the past 30 days, please call (301) 258-4097 using a

touchtone phone. A recorded menu will provide information on

how to obtain these lists.

PRINTED ON RECYCLED PAPER
United States

General Accounting Office

Washington, D.C. 20548-0001

Official Business

Penalty for Private Use $300

Address Correction Requested

Bulk Mail

Postage & Fees Paid

GAO

Permit No. G100
GAO/HEHS-95-88 VA Overpayments