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How long does it take for VA to process my backpay

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watkinsd45

Question

I retired on 10/31/2015, and that is when I submitted my VA claim they finally made a decision on 05/05/2016.

My question is how long does it take until I receive my back pay?  my monthly VA compensation started on June 1st

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I hate to be the bearer of bad news, but you probably already received it. The VA pays out all retro pay immediately, with the exception of CRSC/CRDP, Separation Pay and Severance Pay.

If you received separation pay or severance pay the VA will almost always recoup that. Since you already received a payment then you probably did not have either of them. However there are exceptions to every rule.

A good thing to know is how retired pay and comp benefits pay out. For example; If you get $1100.00 a month in retirement pay and $500.00 a month in compensation benefits, then you will receive $600.00 a month that is taxable and $500.00 a month that is tax free for a total of $1100.00. Using the same scenario, if you received $1200.00 a month in compensation benefits then you would receive all $1200.00 tax free and no retirement pay.

For some Veterans you can receive both your retired pay and comp benefits, but that decision is made by the Department of Defense, not the VA. Unfortunately, the processing time for the release of those funds originally held by the VA can be lengthy. Go to this website from DFAS that explains how this works and how you need to apply to receive dual benefits. http://www.dfas.mil/retiredmilitary/disability/comparison.html

Edited by Kgosi
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