Last year, the Department of Veterans Affairs gave its senior executives a $10.8 million incentive bonus. This is while keeping some employees in critically understaffed assignments. However, the backlash is that the department is now facing consequences in recouping the money, according to the department’s top watchdog. The amount involved is $1 million more than the agreed upon last September. Secretary Denis McDonough mentioned that 170 senior executives at the Central Office in Washington, D.C., received $9.7 million bonuses. The Veterans Pact Act authorized it under the retention bonus program.
One report from the department inspector general mentioned that 182 senior executives have received nearly $11 million in bonuses. This includes $39,000 to more than $100,000 for each of the seven executives in the Veterans Health Administration.
Investigations About the Pact Act for Veterans
In a report, the department’s human resources officers and other staff warned the undersecretaries about health and benefits. Yet, they proceeded to award bonuses which created issues with the Veterans Pact Act bill.
Michael Missal, the VA Inspector General, discovered that Dr. Shereef Elnahal, the Under Secretary for Health, had failed to report the bonuses to McDonough. At the same time, payments to field employees were kept apprised. Further, Under Secretary Joshua Jacobs at the Veterans Benefits Administration has provided McDonough with a heads-up about the planned bonuses-also known as critical skills incentives, or CSIs. Elnahal further approved 148 bonuses, while Jacobs only signed off on 34.
The Veterans Pact Act was signed in August 2022. It aims to expand the benefits and health care for millions of sick Vets who have been exposed to burn pits and various environmental pollutants while in service to support U.S. operations.
The legislation gave the VA authorization to provide incentives and hire employees in posts that are difficult to fill. This includes: information technology, human resources, housekeeping, and law enforcement. The need for personnel ensures that the department has enough manpower to support the increasing number of Veterans eligible for health care and benefits.
With the legislative provisions, the VA, under the Veterans Pact Act bill, has paid over $20 million in incentives to employees. About half going to the senior executives. McDonough was unaware of the incentives received by nearly all the VHA executives at the headquarters. It was not until September 13 that Jon Rychalski, the VA’s chief financial officer, informed him about the issue. A week later, the secretary announced that they would cancel the payments to recoup the money. Plus, the inspector general will conduct a further investigation.
Reclaiming the Money of the Veterans Pact Act Bill
VA Press Secretary Terrence Hayes mentioned that the department plans to recoup the executives’ money and will provide repayment schedules to avoid economic hardship.
Despite these efforts and teamwork, Missal mentioned that clawing back the money might be difficult since some has been spent. The exchange of emails between Under Secretary for Benefits Mike Frueh and Chief of Staff Kimberly Jackson showed frustration and despair from the senior executives. One even mentions that the recoupment will result in massive debt. Another senior executive noted that the bonus under the Veterans Pact Act had been a blessing to cover medical expenses. Now it turns out to be a curse.
Missal made eight suggestions to officials. They are calling for McDonough to take action against the personnel involved in the bonuses of the Veterans Pact Act bill.
VA officials disagreed with the report’s language but agreed with the recommendations. The Office of Accountability and Whistleblower Protection is planning to work with the Office of General Counsel Ethics Specialty Team to decide whether a nondisciplinary or disciplinary action is necessary.
The VA will also assign new officials to examine critical skills incentive payments and the department’s need for employees. It also plans to update its policies regarding bonuses. This is so that these will be awarded appropriately in the future and will have no issue under the Veterans Pact Act.
In a statement, VA officials mentioned that Rychalski was leaving the department. The reason for his departure was not disclosed, although he is moving to a different federal position. Also, Matt Quinn announced that he would leave on May 23 after three years of working to spend more time with his family.
Read next:
- Hazardous and Toxic Materials PACT Act Expansion Starts March 5, 2024
- The Ongoing Fight for PACT Act Benefits