A CVCB payment may only be made if the beneficiary is due a Federal SVB payment in
any amount. CVCB overpayment should thus only occur when a beneficiary is issued a
CVCB payment for a month in which no Federal SVB payment is due, or when a veteran
receives CVCB in error for some other reason.
As noted in VB 02005.108, CVCB overpayments (State of California) and SVB (Federal portion) overpayments are
considered to be separate overpayments. Also, CVCB funds may not be used to recover
Federal portion SVB overpayments.
IMPORTANT: To preclude erroneous withholding of state funds to recover Federal overpayments
while providing for SVB overpayment recovery from current benefits: in CVCB overpayment
situations, even when the veteran agrees to monthly withholding at a rate greater
than 10% of the maximum possible SVB payment, monthly withholding from current SVB
payments should never exceed the FBR.