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This bill amends federal law to eliminate the recoupment (clawback) of separation pay, special separation benefits, and voluntary separation incentive payments from service members who subsequently receive disability compensation from the Department of Veterans Affairs. For service members who receive military retired or retainer pay, the bill limits recoupment to the net amount of separation pay (after federal income tax withholding), caps monthly deductions at 25 percent unless the member requests acceleration, requires 90 days' notice before deductions begin, and allows the Secretary of Defense to waive deductions if they would cause financial hardship.
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