Is Severance Pay is paid in 2 installments? And do the VA Rating in MEB defers after Final day of Seperation?

L

Lionel07

PEB Forum Regular Member
Registered Member
Hi, I received one payment on 15th July from D F A S after a month of seperation; but the amount is exactly half of the amount, I was supposed to get from sold leave days and Severance Pay! Is it paid in 2 installments; on 15th and 30th of the month, like in AD time? And since it is on visible in MyPay, how will I know how much final payment I will receive?

And;

On VA Ratings; I concurred/signed the initial rating of 80% and after few weeks of concurring the ratings; my surgery was granted by ME-Board members and it was done; but now after my final day of separation in June, my VA page showed claim is in 3rd step (Evidence Gathering phase). I am so confused as my counselor at my DD214 signing day told me I will get VA DIS amount for July in August but now in VA app it is in phase 3!

Has anyone faced similar situations?
If yes then will you please help me getting out of this confusion!
TIA.
 
Lionel07 said:
Hi, I received one payment on 15th July from D F A S after a month of separation; but the amount is exactly half of the amount, I was supposed to get from sold leave days and Severance Pay! Is it paid in 2 installments; on 15th and 30th of the month, like in AD time? And since it is on visible in MyPay, how will I know how much final payment I will receive?
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Per DFAS:

SEVERANCE PAY FOR DISABILITY

Calculation and Payment​

Disability severance pay is a one-time lump sum payment. The amount equals 2 months of basic pay for each year of service which includes active service and inactive duty points, but the total service years cannot exceed 19 years. Additionally, the minimum number of years required for computation purposes is six years for a disability incurred in the line of duty in a combat zone, or 3 years in the case of any other member. Prior to January 28, 2008, a maximum of 12 years and minimum of three years creditable service was used.

Disability severance pay is not combined with other categories of pay.

Are you speaking about disability severance pay OR just final pay?

Ron
 
Lionel07 said:
Thank you Mr. Ron for the reply.
I was talking about; DOD Severance Pay along with leave days sold.
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Hi,

What was your DoD disability percentage (not VA)? It must be 20% or less to qualify for DoD disability severance pay.

Also: Your DoD disability severance pay will not be lumped in with a leave accrual payment.

Dod disability severance pay is not paid incrementally.

Ron
 
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Lionel07 said:
20% DOD.
And thank you for other informations aswell.
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Please return and report how this plays out. It could be helpful to others.

Ron
 
Related, but does not discuss severance pay. From DFAS

Retired & Annuitant Pay Processing: How Long Does It Take?​

We work hard to process your requests accurately and promptly.

If all of the information needed is provided, we can process a typical request in 30 to 60 days.

However, when additional information, research or computation is required, it may take more time.

Please keep in mind that an unsigned or incomplete form or missing documentation will delay the processing of your request.

Below are typical time frames for the most common requests.


Typical Processing Time Frames​

Click on the type of processing request below to jump directly to the time frame information:

New Retirements
Retired Pay account changes
CRSC – First monthly payment
CRSC or CRDP - Retroactive computation
Condolence letter with SF 1174 and SBP startup forms
Arrears of Pay – Payment
Survivor Benefit Plan - First annuity payment


New Retirements​

Your first retired pay should be processed in 30 to 45 days after your retirement date. However, this can only happen if we receive a complete retirement package, including a correct DD Form 2656.

If you are a Gray Area Reservist turning 60 years of age, your first retired pay should be processed in 30 to 45 days after your retirement date. However, this can only happen if we receive a complete retirement package, including a correct DD Form 2656.

In some cases, additional information, research or computation is required. These cases require more time.

Retired Pay Account Changes (examples: address changes, bank account changes, changes to SBP coverage)​

Changes made via myPay: Your account will be updated in three to seven business days. Keep in mind that if you make a change in the latter part of a month, it may not take effect until the next payday.

Changes sent via mail or fax: It can take 30 to 60 days to process a paper form.

In some cases, additional information, research or computation is required. These cases require more time.


Combat-Related Special Compensation (CRSC) – First monthly payment​

Your first CRSC monthly payment should be processed in 30 to 45 days after we receive your approval letter from your Branch of Service.

In some cases, additional information, research or computation is required. These cases require more time.


CRSC or Concurrent Retirement and Disability Pay (CRDP) - Retroactive computation​

Retroactive computations require significant research and manual calculations. Our priority is to start your monthly payments, and then calculate and make any retroactive payment due. This may take 60 to 90 days after we receive all of the information.

In some cases, additional information, research or computation is required. These cases require more time.



Condolence Letter (with SF 1174 - Arrears of Pay form) and SBP Startup Forms​

Within 30 days after reporting the death of a retiree to DFAS, you should receive a letter containing the SF 1174 form to claim the retiree’s Arrears of Pay (AOP). If the retiree elected the Survivor Benefit Plan (SBP), you will also receive the forms to start SBP Annuity payments.


Arrears of Pay for Deceased Retiree – Payment​

Arrears of Pay (AOP) payments should be processed within 30-45 days of receiving the SF 1174 and supporting documentation.

In some cases, particularly when there is not a designated beneficiary or when there are multiple beneficiaries, additional information or research is required. These cases require more time.



Survivor Benefit Plan - First annuity payment​

Your first SBP monthly annuity payment should be processed within 30 days of receiving the DD Form 2656-7 and supporting documentation.

In some cases, additional information, research or computation is required. These cases require more time. It could take 45 days, or in complex cases, more than 45 days.
 
Was there any luck with your situation? I separated on June 29th, but I received my LES in late July with the corrections. However it shows that my DSP is split in half and even has the amount that is split after tax on my finalized VA decision letter. I understand it is one lump-sum but it just isn't sitting right with me that there isn't something showing my full entitlement besides my DD214 and the separations package I submitted prior to separating.
 
SamP98 said:
Was there any luck with your situation? I separated on June 29th, but I received my LES in late July with the corrections. However it shows that my DSP is split in half and even has the amount that is split after tax on my finalized VA decision letter. I understand it is one lump-sum but it just isn't sitting right with me that there isn't something showing my full entitlement besides my DD214 and the separations package I submitted prior to separating.
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Hi! My ETS was also June 29th and then I received half of the amount of final pay & DSP-Lumpsum on July 15th and then only in July 28th my final TWO LES appeared in mypay site and each LES showed the due amount of Final Payment and DSP to be received by me in remarks part of printed LES and it was the exact remaining final amout combing of final pay and DSP. But I did not receive final payment on July 31st, so I went to On Post Finance office and they said there was a technical error and by Aug 15th I will receive my remaining final payment. Rest, the total remaining amount of the final amount which we will receive is on "Pay Due at Separation" in Remarks of LES printout.
So DSP amount from DD214 and LES will be different as LES will have a total amount combining DSP & FP, which we will receive but DD214 it is only talking about DSP.
***Hope your final amount in LES will match in remarks section of both LES, if not then have to inform Finance Office as I think VA already has started to recoup amount from your DSP from VA payment.

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And if anyone is facing VA Dis stage like mine then it was finalized at the end of July and they did the rating which I signed in MEB process so there were no changes. That means they will post the VA letter with previously signed and concurred letter with no changes(they only do that, to make it official after DOD final payment was done; but in my case DOD payment had a technicall error but they fixed it and I am waiting now) and in Aug 1st received the VA amount with recoupment of DSP from VA Amount.
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Hope this information helps.
 
Lionel07 said:
Hi! My ETS was also June 29th and then I received half of the amount of final pay & DSP-Lumpsum on July 15th and then only in July 28th my final TWO LES appeared in mypay site and each LES showed the due amount of Final Payment and DSP to be received by me in remarks part of printed LES and it was the exact remaining final amout combing of final pay and DSP. But I did not receive final payment on July 31st, so I went to On Post Finance office and they said there was a technical error and by Aug 15th I will receive my remaining final payment. Rest, the total remaining amount of the final amount which we will receive is on "Pay Due at Separation" in Remarks of LES printout.
So DSP amount from DD214 and LES will be different as LES will have a total amount combining DSP & FP, which we will receive but DD214 it is only talking about DSP.
***Hope your final amount in LES will match in remarks section of both LES, if not then have to inform Finance Office as I think VA already has started to recoup amount from your DSP from VA payment.

#######
And if anyone is facing VA Dis stage like mine then it was finalized at the end of July and they did the rating which I signed in MEB process so there were no changes. That means they will post the VA letter with previously signed and concurred letter with no changes(they only do that, to make it official after DOD final payment was done; but in my case DOD payment had a technicall error but they fixed it and I am waiting now) and in Aug 1st received the VA amount with recoupment of DSP from VA Amount.
#######
Hope this information helps.
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Thank you for the update!

So it sounds like your payments came in 2 separate payments then? I have already received my final pay and leave sold and it is reflected in my both statements of June, but the only difference is when they took back a couple of dollars and gave me back some taxes for one day of pay. On both versions it is the same for DSP and the final pay so maybe I will end up seeing another LES coming my way for the other half? Either way, I am going to call DFAS tomorrow and see if I can get it figured out and I will update!
 
Yes payment is half and half. For VA Dis pay, VA started recouping before I received my DOD final payment (DSP+ Leaves days sold+ Final paycheck)due to technical issues in DFAS and VA thought I already received final pay from DFAS. But since it has been resolved I will receive remaining pay from DFAS soon, so I am not worried now and they also told me those 2 pages LES will be the final LES, I will be seeing. 1st LES had all payment in normal amount and in 2nd LES amounts had -(minus sign) infront of them in Entitlement Section (like in Base pay & BAS) but only "Pay Due at Separation" in Remarks & total amount in Summary section were same in both LES and that is the remaining final payment I will receive now. Then DFAS are done with me, that what office indicated.
But yeah do check with Finance once. It is better to have peace of mind after going there or talking to them. I was also in similar situation and now much relieved so I can relate to your situation of uncertainty. All the best.
 
So I finally have an update on my side. After calling DFAS and told that they wouldn’t deal with it, MNCC opened a case and pinged my clerk from my separations case. I called my previous yeoman and talked to them about it. Turns out that they miscalculated my DSP entirely and they were going to pay me out for half the amount. They sent an amendment to my case to fix it from both sides so hopefully they will have it fixed and paid out.
 
I Hope it will be fixed soon as fault was from their side. My apologies, as I do not know how ETS process is in the NAVY as I was in the ARMY, but at the end of the day, it is also a big responsibility of On-Post Finance Office and then DFAS to clear out the final payment to leaving Service Members as without completing Post Clearance form with all required criterias signed and cleared; we do not get DD214 but yet came to know many ETS'd service members are facing same problem like your's and mine when I drove back to post for 48 hrs!!! If I was not there in person I would have been in limbo but it got fixed as I received mine aswell. Sorry I am sharing my experience, but why it is always like; "I need to see it, to believe it", scenario inside the Service whether it is DA or DD or any kind of form, we need to see it in our hand to believe that it was processed though it will be transfered by orderly room or S1 or any on-post office to concerned department!!! Yes, Empathy is almost impossible to find nows world but atleast if it is verified from paperworks and records then why do those concerned offices loses the papers! Yes, nothing is perfect in this world and all staff members are not irresponsible only because of few, whole system gets blamed for but yet due to those few people everyday, one has to face this kind of uncertainty! Even me being from Logistic side helped HR from orderly room for his ETS process and DA forms!!! Do not know where are we heading!!! It is so frustrating. Don't know when one do not have to face such situation again inside the Service! In our case yes eventually, Finance will pay but the time which we have to go through in such uncertainty is so distressful. Anyways, all the best for your future endevours.
And few more thing; if you are medically retired then you might have DOD ID for post entrance, if not but 100% P&T from VA, then you will get one DOD ID for post entrance from your post's DEERS office upon appointment and approval with their verification process on all of your VA Benefits letters(which is posted in your VA account).
Also if you have not then do get enrolled into VA Health Care aswell and apply for VHIC too. VHIC also lets you enter Base upon registering it into Visitor Center office with some background check.
After medically separated, the Veteran is under 180 days of TRICARE TAMP and it will automatically changed to TRICARE SELECT TAMP so you have to call your side of TRICARE EAST OR WEST to switch it to TRICARE PRIME TAMP(180days) for you and your dependents.
Once again all the best. Take care. Peace and Eustress for all.
 
I tried finding it on here but I couldn't so if this has been talked about I apologize. I separated on 24MAR of this year. I got 20%VA/80%DOD and received severance pay. I was given a lump sum up front but then was told about something I could file afterwards to get the taxes back from my severance. Is anyone familiar with this process or how it works? Any info is greatly appreciated thanks!
 
burnsdylanj said:
I tried finding it on here but I couldn't so if this has been talked about I apologize. I separated on 24MAR of this year. I got 20%VA/80%DOD and received severance pay. I was given a lump sum up front but then was told about something I could file afterwards to get the taxes back from my severance. Is anyone familiar with this process or how it works? Any info is greatly appreciated thanks!
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Hope you will find this link helpful.
As for me I did not apply for the refund, so can not tell how it works but have seen info in dfas website so sharing that link.
 
Hello @burnsdylanj ,

From DFAS

Disability Severance Pay is not taxable or subject to federal income tax withholding for members meeting 1 or 2 below:

1. You have a combat related injury or illness as determined by your military service at separation that:

  • Resulted directly from armed conflict; or
  • Took place while you’re engaged in extra-hazardous service; or
  • Took place under conditions simulating war, including training exercises such as maneuvers; or
  • Was caused by an instrumentality of war.
2. You are receiving VA disability compensation or you have received notification from the VA approving such compensation.
In 1991, the United States District Court ruled that disability severance pay received for personal injury resulting from active service in the armed forces is excludable from taxable income for members who are awarded VA compensation for the same disability.

It is my understanding that most who were due a tax refund, received their disability severance pay several years ago.
From 2018: “The Defense Department has identified more than 130,000 veterans who may be eligible for a refund for taxes paid on their disability severance payment, a DoD tax expert said.”

Ron
 
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