Congressman Earl L. “Buddy” Carter’s (R-Ga.) legislation to protect American veterans from military service deposit errors was passed unanimously by the United States Senate this week and it is now heading to President Donald Trump to be signed into law.
Carter’s legislation, 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 bill will soon become law,” said Carter. “I have heard firsthand from veterans who, after serving our nation, move on to work for federal agencies and these agencies are miscalculating their pensions, accruing thousands of dollars in interest without the veteran ever even knowing about it. Our current system requires these veterans to repay sometimes tens of thousands of dollars in interest due to no fault of their own. Once President Trump signs this bill into law, federal agencies, not our brave veterans, will be able to pay the interest payments when the federal government is responsible for the miscalculation.”
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.
The legislation passed unanimously in the United States House of Representatives and the United States Senate. The legislation is now heading to President Donald Trump to be signed into law. gg