So I’m going under a ldes board currently for major depression and anxiety and I was looking at my possible benefits from the navy’s side and heard that people were getting severance pay so if I do qualify for that how is it determined I keep finding different answers and it seems like it’s multiple the amount of years you were in but I’ve only been in for 10 months so how would mine be calculated as well any help is appreciated
Confused about severance pay
- Thread starter liam7873
- Start date
Hello @liam7873 ,
If you are medically discharged/separated at less than 30%...
DFAS: 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.
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35 * October 2018
LINK <----
350503. Computation
B. Years of Service. The member’s separation orders will specify the total combined years of active service and inactive duty points to be counted in computing severance pay. Round this total to the nearest whole year, with 6 months or more rounded up. The maximum number of years of service for computing the disability severance pay will be 19 years. The minimum number of years for computation purposes will be: 1. Six years in the case of a member separated from the Armed Forces for a disability incurred in the line of duty in a CZ (as designated by the SecDef) or incurred during the performance of duty in combat-related operations as (designated by the SecDef); or 2. Three years in the case of any other member.
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Your case based on the info you provided:
1. Disability incurred in line of duty in a combat zone. total of 2 months basic pay x 6 years = disability severance pay
OR
2. Disability incurred outside of combat zone. total of 2 months basic pay x 3 years = disability severance pay
Note for minimum: All medically separated service members receive a single lump-sum severance payment for their DoD Disability. This payment is equal to 2 months of basic pay for each year of military service he gave. The minimum number of years is 6 for computation involving CZ and 3 for outside CZ, so even if he only served for 2 years, his payment would be calculated as though he had served for the years cited.
Ron
If you are medically discharged/separated at less than 30%...
DFAS: 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.
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35 * October 2018
LINK <----
350503. Computation
B. Years of Service. The member’s separation orders will specify the total combined years of active service and inactive duty points to be counted in computing severance pay. Round this total to the nearest whole year, with 6 months or more rounded up. The maximum number of years of service for computing the disability severance pay will be 19 years. The minimum number of years for computation purposes will be: 1. Six years in the case of a member separated from the Armed Forces for a disability incurred in the line of duty in a CZ (as designated by the SecDef) or incurred during the performance of duty in combat-related operations as (designated by the SecDef); or 2. Three years in the case of any other member.
===============
Your case based on the info you provided:
1. Disability incurred in line of duty in a combat zone. total of 2 months basic pay x 6 years = disability severance pay
OR
2. Disability incurred outside of combat zone. total of 2 months basic pay x 3 years = disability severance pay
Note for minimum: All medically separated service members receive a single lump-sum severance payment for their DoD Disability. This payment is equal to 2 months of basic pay for each year of military service he gave. The minimum number of years is 6 for computation involving CZ and 3 for outside CZ, so even if he only served for 2 years, his payment would be calculated as though he had served for the years cited.
Ron
Hello I have a question I just got a call today about my findings and i got 10% DOD and VA 100 I’m confused about what that means. I know I will be getting medically separated with severance pay but what does 100 VA mean? Also I’m in the Navy if that matters
it means that the VA rated you with 100% disability and if you choose not to take the navys severance pay then you will be collecting 100% disability right away when you leave the service
Hello liam7873,
cc: @Stijerina
Unfortunately, that is not entirely accurate.
10% DoD disability rating = severance pay
The VA will recoup (collect) each month only the amount associated with both the VA compensation and the DoD unfitting conditions. One normally does not lose all their VA compensation due to recoupment of severance pay.
VA compensation @ 100% is more than 3000 a month. See 2020 Veterans disability compensation rates | Veterans Affairs <---LINK
Ref: M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits
--->LINK
| III.v.4.B.3.b. General Policies Regarding Withholdings to Recoup Disability Severance Pay | Generally, if a Veteran received disability severance pay, VA must withhold from his/her monthly compensation an amount equal to the monthly compensation payable for the disability(ies) for which the Veteran received disability severance pay. VA continues to withhold this amount until it has recouped the amount specified in M21-1, Part III, Subpart v, 4.B.2.d. Important:
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Ron
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Hello @MaliceReturns ,
Reference: Defense Finance and Accounting Service > RetiredMilitary > plan > separation payments > disability severance pay <---LINK
You must meet all of the following requirements to be eligible for military disability severance pay:
- be found unfit for duty,
- have less than 20 years of service,
- and have a DoD disability rating of less than 30%. [Note: That rating is singular and combines all the DoD ratings that pertain to unfitness for continued service.]
--DoD disability rating of 30% or more (total % and shown in retirement orders) = DoD disability retired pay and zero disability severance pay
--DoD disability rating of less than 30% (total % and shown in separation orders) = DoD disability severance pay and zero disability retired pay
Your orders upon separation should include a comment about disability severance pay IF you are entitled to it.
Ron