WASHINGTON – The House Committee on Oversight and Government Reform today unanimously passed Congressman Earl L. “Buddy” Carter’s (R-Ga.) legislation to protect American veterans from military service deposit errors made by federal agencies. The Correcting Miscalculations in Veterans’ Pensions Act authorizes federal agencies that make a mistake in calculating military service deposits and pensions to pay the incorrectly accrued interest on behalf of veteran employees.
“I am thrilled this legislation was approved by the Oversight and Government Reform Committee today,” said Carter. “I introduced this legislation because I have heard firsthand from veterans that they are responsible for the errors of the federal government. These errors in calculating their pensions are costing veterans sometimes thousands of dollars. This is absolutely unacceptable and I am pleased this solution is one step closer to becoming reality. I hope to see this legislation brought to the House floor as soon as possible.”
Currently, American veterans working at a federal agency are required to pay a military service deposit in order to receive their military service pension while working for the federal agency. Due to a misclassification in the type of the employee’s status, the federal agency will therefore charge different interest rates on those military service deposits, often leading to miscalculations.
Once the federal agency becomes aware of the miscalculation, they will contact the veteran/employee and notify them of the need to pay back the balance with accrued interest. In some scenarios, that interest can be tens of thousands of dollars that the veteran would be required to pay.
Currently, there is no recourse for veterans to mediate that payment and there is no authority for the federal agency to wipe away the incorrectly accrued interest.
Carter’s legislation, the Correcting Miscalculations in Veterans’ Pensions Act, authorizes agencies that make a mistake in calculating military service deposits and pensions to pay the incorrectly accrued interest on behalf of the veterans.
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