VA to Reevaluate Bonuses After $11M Misstep: IG Report Prompts Broad Review
The Veterans Affairs Department (VA) is reexamining its bonus awards following a critical report from its inspector general (IG). This scrutiny comes after the IG discovered that the VA improperly awarded $10.8 million in “critical skill incentives” (CSIs) to 182 Senior Executive Service (SES) employees. The review is part of an effort to address broader concerns about the administration of these bonuses.
Background on the PACT Act and New Bonus Authorities
In 2022, President Biden signed the PACT Act into law, expanding VA healthcare and benefits to millions of veterans exposed to toxic substances. The legislation aimed to enhance the recruitment and retention of VA employees by introducing CSIs for positions requiring high-demand or understaffed skills. These incentives can be as much as 25% of an employee’s base pay.
Improper Awarding of Bonuses
The issue began when the Veterans Health Administration (VHA) and Veterans Benefits Administration (VBA) awarded these substantial bonuses to nearly all their senior executives. The VA later acknowledged a “policy error,” admitting the application of this new authority was overly broad. Consequently, VA Secretary Denis McDonough requested the IG to investigate.
Findings of the Inspector General
The IG’s report identified several missteps in the process. It pointed out that including SES employees at VA headquarters was an “improper and overzealous application” of the PACT Act’s provisions. The report highlighted that decisions made by VA Undersecretary for Health Shereef Elnahal and Undersecretary for Benefits Joshua Jacobs were inconsistent with policy and lacked proper retention needs consideration. Additionally, the VA’s Office of General Counsel and financial management team failed to adequately scrutinize the bonus allocations.
Leadership Responses and Legislative Reactions
McDonough was credited for his early questioning of these bonuses, though communication issues reportedly prevented his office from being fully informed about the headquarters payouts. Rep. Mike Bost (R-Ill.) condemned the payments as deliberate rather than accidental, emphasizing the need for rigorous oversight. Sen. Jerry Moran (R-Kan.), the top Republican on the Senate VA Committee, acknowledged McDonough’s swift action but stressed that the systemic issues identified by the IG report are persistent.
Steps Toward Rectification
The VA has agreed to implement all IG recommendations, including issuing clearer guidance on CSI usage and requiring more justification for such incentives. The department will extend its review to bonuses awarded to executives in the field and other non-executive employees to ensure compliance with proper procedures. The revocation of headquarters bonuses has impacted employee morale, with some employees experiencing financial hardships.
Potential Disciplinary Actions and Future Oversight
McDonough has committed to evaluating whether any disciplinary actions are warranted against VA leaders involved in the bonus missteps. An ethics review of the CSI process will be conducted to eliminate conflicts of interest and clarify responsibilities in bonus allocations.
“VA appreciates and acknowledges the OIG draft report’s findings that better documentation and stronger governance should have been applied to the implementation of these important new incentive authorities,” McDonough stated.
Impact on VA Workforce and Moving Forward
Despite the controversy, the CSIs and other authorities under the PACT Act have positively impacted VA’s workforce. The department reported historically low quit rates and improved retention. In fiscal 2023, the VHA hired 61,000 employees, growing its workforce by 7%. The recruitment success has even prompted plans to reduce the workforce by 10,000 employees.
Frequently Asked Questions (FAQs)
What are Critical Skill Incentives (CSIs)?
CSIs are bonuses given to VA employees or applicants with high-demand or understaffed skills, authorized under the PACT Act to improve recruitment and retention.
Why were the bonuses to VA senior executives considered improper?
The bonuses were deemed improper because they did not align with the PACT Act’s intent, which was to address specific retention needs for challenging positions, not to broadly increase senior executive salaries.
What actions is the VA taking to address the bonus missteps?
The VA is reviewing all awarded CSIs, implementing stricter guidelines, and conducting an ethics review to prevent conflicts of interest in the bonus allocation process.
How has the VA workforce been affected by the PACT Act incentives?
The incentives have resulted in historically low quit rates and higher retention, with significant increases in hiring within the VHA, demonstrating improved workforce stability.
What are the potential consequences for VA leaders involved in the bonus issue?
VA leaders may face disciplinary or non-disciplinary actions based on further review, and steps will be taken to ensure better governance and accountability in future bonus distributions.
Didnt they do something about the bonus problem several years back? Seems like they did not fix it after all. (?)
Fine when a Veteran makes a error in a claim or a claim is reviewed years after it was all approved including GI Education benefits ” of which I am a victim” the VA simply debits your bank account and takes their money back, no recourse here. So is the VA going to reclaim the $10.8 million dollars from these 182 executives and
replace the monies illegally spent, I TRULY DOUBT THAT WILL EVER HAPPEN BUT WHY NOT!
This is a curious paragraph: “McDonough was credited for his early questioning of these bonuses, though communication issues reportedly prevented his office from being fully informed about the headquarters payouts. Rep. Mike Bost (R-Ill.) condemned the payments as deliberate rather than accidental, emphasizing the need for rigorous oversight. Sen. Jerry Moran (R-Kan.), the top Republican on the Senate VA Committee, acknowledged McDonough’s swift action but stressed that the systemic issues identified by the IG report are persistent.”
Why is there nothing whatsoever reported about those so-called “communication issues?” Is investigating any question begging for an answer illegal? Whom amongst US cannot now see that “the systemic issues” are throughout the swamp that was once, perhaps, a more or less effective government? Why are so few of US willing to call out the kleptocracy for what it actually is, except for ‘observers’ so obtuse they cannot see the obvious?
If those or any other members of either party, or either the members of the House or the Senate, actually cared about corruption, then why do they not ever talk about the slush funds they collect when the lobbyists come around and swap campaign donations for what is effectively legislative bribery? Why are there so few US “reporters” who are willing to call this out for what it is?
The for profit corporations (billionaires; multi-millionaires and their so-called non-profits that also chime into the same legislative-ownership choruses) are the drivers of this, and the Congress, both houses, both parties, are the very most devious obfuscation artists. Why are there so few reporters willing to look into it and call it out?
When corruption becomes so obvious that even the highest “political” appointee has to call it out, one might wonder where the so-called “Congressional Oversight” of either the Senate or the House have been snoozing on the job. Instead, when they get caught red-handed, they squirm & point fingers, much like the pre-schoolers every parent gets to observe if they choose. This, too, apparently remains not investigated.
This also implies that there is no adequate over-sight either inside or outside any other department of the US “Government,” which has now reduced itself for a vast tax-money-laundering scam, so very disgusting and despicable, a vast majority of US call them swamp rats, and for excellent reason. “Actions speak louder than words.”
Actions speak louder than words, indeed. No wonder no one even wants to know what goes on in that vast swamp, including all three rotten, corrupt, branches of what supposedly used to have been a Constitutional regime. Where is the Congressional concern with Congressional systemic corruption, that gets free passes from SCOTUS as well as from the so-called “oversight” committees and commissions, every single one of them which is effectively industry-owned-and-operated, per “political” appointments?
And, of course, it is also absolutely no help that the US no longer respects or tolerates actually investigative news reports. Investigation is the very last thing on any so-called “news” organization, unless it has been banished to the underground of social media, and in which cases, as has this spring and last winter become obvious with the rise of one particularly critical social media platform that these official professional sleaze peddlers love using and also insist must be owned by “American” investors.
When the corruption is so deep that only the very most corrupt of Americans can be “trusted” to control social media speech, whom amongst US doesn’t know the whole swamp and every purportedly living creature therein is slumbering from excessive consumption and extreme moral abstinance? Meanwhile, the numbers of homeless grows year after year, the stock market climbs steadily along with inflation, and what used to be a middle class sinks into poverty.
While the billionaires rake in more billion$ with every piece of funding legislation that gets passed.
Please, go figure.