Waiving DOD pay for VA pay

Butterzftw

Member
Registered Member
Good morning,

Ive tried reaching out to finance and my VA rep on an answer for this but I can’t seem to get a straight answer.
I medically retire from the Army on the 28th of July. I’m rated 40% DOD and 100% VA. I uploaded my DD214 member 4 copy to VA.Gov and im wondering how I waive the DOD pay to only take the VA pay instead.
I was told that I have to call finance and ask if my retirement account has been setup yet and then fill out a form to waive the DOD pay. Does anyone know what the right steps to take to do this is? Thank you all for your help!
 
@Butterzftw


That process is normally done as part of the claim for VA compensation. One cannot receive VA comp unless they agree to waive retired pay dollar for dollar in the amount of VA comp received.

VA Form 526EZ Sep 2019

IMPORTANT INFORMATION ON MILITARY RETIRED PAY (Includes all Uniformed Services Retired Pay): Submission of this application constitutes a waiver of military retired pay in an amount equal to VA compensation awarded, if you are entitled to both benefits. Your retired pay may be reduced by the amount of VA compensation awarded. Receipt of the full amount of military retired pay and VA compensation at the same time mayresult in an overpayment, which maybe subject to collection. If you qualify for concurrent receipt of VA compensation and military retired pay, the waiver of retired pay will not apply. If you do not want to waive any retired pay to receive VA compensation, you should check the box in Item 26. Note that if you check the box in Item 26, you will not receive VA compensation, if granted. If you are currently in receipt of VA compensation and you check the box in Item 26, your VA compensation will be terminated, if you are also eligible for military retired pay. IMPORTANT: VA COMPENSATION PAY IS NON-TAXABLE. THEREFORE, VA COMPENSATION PAY MAY BE THE GREATER BENEFIT.

If you had inadvertently checked block 26, then there is another VA form to correct it. It is at https://www.vba.va.gov/pubs/forms/VBA-21-651-ARE.pdf <---LINK
 
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You only "lose" retired pay in the amount of the VA compensation. If the VA comp is less than the retired pay, you get to keep the residual (left over) retired pay.

Ron
 
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