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Severance Pay And Va Pay Confused

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mrb

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mrb,

I was involuntarily seperated from active duty (title 32) and received seperation pay. I also went to the VA for several claims. I am now rated for the claims, however will not recieve any money until my debt (severance pay) has been satisfied. So your answer is yes to both, however, you cannot collect both at the same time.

Hamslice

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Hamslice – In my case, I DID get both (and still do). I pay only a portion of my VA monthly to cover the debt(???) created by receiving severance. There is a formula (of course, shrouded in clouds) which the VA uses to calculate what portion of and for how long of your severance is collected back each month out of your VA benefits. I was a reservist (AGR) and was medically separated (19%). I received severance, applied to the VA, and was initially rated at 70%. The VA kept back a portion of what I receive each month based on the difference (again, some smoke and mirrors here) of my percentage of discharge disability and the total percentage received from the VA (I think... I contacted the debt center a few years ago, and they explained all this.). Short answer is, it depends on your individual situation. Apply, and then see what the VA comes back with.

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justrluk,

You are correct, I had forgot, in some instances they only take a percentage of your VA disability pay each month instead of all of it before you get a check as in my case. And if you have a hardship you can decrease the amount they take back each month:

http://www.dfas.mil/news/DFASRelease0410003.pdf

Hamslice

PS-as usual, doesn't apply to me.....

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http://www.law.cornell.edu/uscode/uscode10/usc_sup_01_10_10_A_20_II_30_61.html United States Code TITLE 10 > Subtitle A > PART II > CHAPTER 61

CHAPTER 61—RETIREMENT OR SEPARATION FOR PHYSICAL DISABILITY

  • <LI class=tocitem>
§ 1201. Regulars and members on active duty for more than 30 days: retirement <LI class=tocitem>§ 1202. Regulars and members on active duty for more than 30 days: temporary disability retired list <LI class=tocitem>§ 1203. Regulars and members on active duty for more than 30 days: separation <LI class=tocitem>§ 1204. Members on active duty for 30 days or less or on inactive-duty training: retirement <LI class=tocitem>§ 1205. Members on active duty for 30 days or less: temporary disability retired list <LI class=tocitem>§ 1206. Members on active duty for 30 days or less or on inactive-duty training: separation <LI class=tocitem>§ 1206a. Reserve component members unable to perform duties when ordered to active duty: disability system processing <LI class=tocitem>§ 1207. Disability from intentional misconduct or willful neglect: separation <LI class=tocitem>§ 1207a. Members with over eight years of active service: eligibility for disability retirement for pre-existing conditions <LI class=tocitem>§ 1208. Computation of service <LI class=tocitem>§ 1209. Transfer to inactive status list instead of separation <LI class=tocitem>§ 1210. Members on temporary disability retired list: periodic physical examination; final determination of status <LI class=tocitem>§ 1211. Members on temporary disability retired list: return to active duty; promotion <LI class=tocitem>§ 1212. Disability severance pay <LI class=tocitem>§ 1213. Effect of separation on benefits and claims <LI class=tocitem>§ 1214. Right to full and fair hearing <LI class=tocitem>§ 1215. Members other than Regulars: applicability of laws <LI class=tocitem>§ 1216. Secretaries: powers, functions, and duties <LI class=tocitem>§ 1216a. Determinations of disability: requirements and limitations on determinations <LI class=tocitem>§ 1217. Academy cadets and midshipmen: applicability of chapter <LI class=tocitem>§ 1218. Discharge or release from active duty: claims for compensation, pension, or hospitalization <LI class=tocitem>§ 1218a. Discharge or release from active duty: transition assistance for reserve component members injured while on active duty <LI class=tocitem>§ 1219. Statement of origin of disease or injury: limitations <LI class=tocitem>[§ 1220. Repealed.] <LI class=tocitem>§ 1221. Effective date of retirement or placement of name on temporary disability retired list § 1222. Physical evaluation boards

IN BRIEF: Disability retirement

Permanent disability. This is one of two types of disability retirement available through the Defense Department. Service members officially rated at least 30 percent permanently disabled, according to guidelines, are entitled to disability retirement pay from the Defense Department. To qualify, they must have spent at least eight years in the military or the disability must have been incurred in the line of duty. If one of the requirements is met, retirees can receive retired pay based on the larger of two formulas: multiplying the retired pay base either by the percentage of the disability rating or by 2.5 percent of the number of years of service, up to a 75 percent ceiling. The retired pay base is final basic pay for those who entered service before Sept. 8, 1980, and average basic pay over the three highest-earning years for those who entered service on or after that date.

The Defense Department and VA disability retirement systems have had important differences, chief among them the fact that the services assign ratings only to medical conditions deemed “physically unfitting,” with the intent of compensating for the loss of a military career. VA may rate any service-connected condition to compensate for the loss of civilian employability. Also, military disability retirement ratings are final upon disposition, and VA ratings can vary over time, depending on how the condition progresses.Finally, military disability compensation varies not only by the percentage disability rating, but also by a member’s years of service and basic pay; VA payments are based on the percentage rating of the disability and the veteran’s family status.

Temporary disability. This is a second form of disability retirement available through the Defense Department. Some service members have medical problems that prevent them from carrying out their military duties but may not be permanent. They are placed on the temporary disability retirement list [TDRL] maintained by each service and Defense Department paymasters. The amount of monthly pay for those on the temporary retired list is determined by different rules from those that govern permanent disability. The minimum payment is 50 percent of the last amount of basic pay before the member was taken off duty; the maximum is 75 percent. Those who receive temporary disability retirement pay must undergo medical exams every 18 months to determine the status of their disability. Within five years, doctors must determine whether the disability is permanent. At that point, they can be returned to duty, given a disability rating that qualifies them for either permanent disability retirement pay or disability severance pay, or separated with no benefits. Military disability retirement pay is usually taxable; however, military disability retirement pay that is based on a combat-related disability is tax-free.

Disability severance. This is paid to members with less than 20 years of service and disabilities rated less than 30 percent. The 2008 Defense Authorization Act changed the minimum and maximum levels of disability severance pay. Previously, the payment was equal to two months of basic pay for each year of service, up to 12 years (a maximum of 24 months of basic pay). The minimum severance pay is now 12 months of basic pay for troops separated for a disability incurred in a combat zone and six months of basic pay for all other members. In addition, the maximum severance pay has been increased from 24 months of basic pay to 38 months. This fully compensates members with as much as 19 years of service whose payments would have been capped at 12 years of service under the old formula. Service members who receive severance pay also may be eligible for monthly VA disability compensation if their disabilities are deemed service-connected. Generally, severance pay must be repaid before members can begin receiving VA disability compensation. However, the 2008 Defense Authorization Act has carved out an exception to that offset for members who receive severance pay for a disability incurred while serving in a combat zone. Severance pay for disabilities incurred outside a combat zone will remain subject to the VA disability compensation offset.

Service members with limited disabilities may be retained by their service, depending on individual circumstances.

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