Disability Severance Pay?

[JJAF16]

Posting in here instead of cluttering with new thread.

I was medically retired and placed on a TDRL list in 2023 with a DOD rating of 30% for one condition. In 2025 the DOD rating was reduced to 10% and I was told I would be receiving a severance pay. I am rated at 100% p&t per the VA. The condition that was reduced on the DOD side holds a rating of 30% on the VA side still. When my severance pay is issued, should I expect 10% or 30% to be withheld per the VA comp table front my monthly VA disability check? Thank you for any help. I asked the VA over the phone and they said it would all be kept until paid off, but I don’t believe the individual on the phone understood the question. Withholding the full monthly pay until paid off didn’t seem accurate based on what I have read. Thank you for any help. - Jo

 

[RetiredColonel-MikeT]

Posting in here instead of cluttering with new thread.

I was medically retired and placed on a TDRL list in 2023 with a DOD rating of 30% for one condition. In 2025 the DOD rating was reduced to 10% and I was told I would be receiving a severance pay. I am rated at 100% p&t per the VA. The condition that was reduced on the DOD side holds a rating of 30% on the VA side still. When my severance pay is issued, should I expect 10% or 30% to be withheld per the VA comp table front my monthly VA disability check? Thank you for any help. I asked the VA over the phone and they said it would all be kept until paid off, but I don’t believe the individual on the phone understood the question. Withholding the full monthly pay until paid off didn’t seem accurate based on what I have read. Thank you for any help. - Jo

You're right, the person you talked to didn't know. Definitely an interesting twist that you are the first person I've come across (in nearly 20 years of working APDES, IDES and post DD-214 realm) that had been reduced from retirement to severance pay, but I am certain you are not the first one out there to have it done. TBH, I do not know which one they would withhold: either 10 or 30% as they're usually the same rating. Obviously, worst case is 30%, however, look at your VA ratings and pull the 30% out of all of them, then do the VA math to see if you fall below 100%. If not, then there's nothing recouped. Also, was your referred condition due to a combat zone injury or something else? Because if it was a combat zone injury then it's non-recoupable per NDAA 2008. You can use the "VA Math Calculator" at ---> crsc calculator | crsc

 

[JJAF16]

You're right, the person you talked to didn't know. Definitely an interesting twist that you are the first person I've come across (in nearly 20 years of working APDES, IDES and post DD-214 realm) that had been reduced from retirement to severance pay, but I am certain you are not the first one out there to have it done. TBH, I do not know which one they would withhold: either 10 or 30% as they're usually the same rating. Obviously, worst case is 30%, however, look at your VA ratings and pull the 30% out of all of them, then do the VA math to see if you fall below 100%. If not, then there's nothing recouped. Also, was your referred condition due to a combat zone injury or something else? Because if it was a combat zone injury then it's non-recoupable per NDAA 2008. You can use the "VA Math Calculator" at ---> crsc calculator | crsc

I have found it to be interesting twist myself quite honestly. I will use the calculator and see though. Thank you for your help and the calculator.

 

[JJAF16]

Loaded everything into the calculator. Came out to 90% when subtracting the condition mentioned above. If anyone else has personal experience or knowledge of what they predict it will be (10% or 30%) taken out of my Va monthly pension, I would greatly appreciate the insight. - Jo

 

[Provis]

Loaded everything into the calculator. Came out to 90% when subtracting the condition mentioned above. If anyone else has personal experience or knowledge of what they predict it will be (10% or 30%) taken out of my Va monthly pension, I would greatly appreciate the insight. - Jo

Unfortunately it would be 30%. You see you can't get severance and VA pay for the same condition.

Why not appeal the TDRL to PDRL rating change? It would be much better for you to medically retire than get a big check and no tricare for life for you and your family + a reduction in VA compensation due to the recoupment of severance. That big check really just becomes an interest free loan. Do you agree with your military branch that you unfit condition is now 10%?

 

[JJAF16]

Unfortunately it would be 30%. You see you can't get severance and VA pay for the same condition.

Why not appeal the TDRL to PDRL rating change? It would be much better for you to medically retire than get a big check and no tricare for life for you and your family + a reduction in VA compensation due to the recoupment of severance. That big check really just becomes an interest free loan. Do you agree with your military branch that you unfit condition is now 10%?

Thank you for the response. It’s unfortunately too late for me to appeal. I already accepted the decision. I’ve been out a couple years now and really didn’t know much on the subject. Although I do agree that would have been the better option looking back. I wish I would have found this forum sooner. Last question for now at least. Is the 30% rate, the rate represented by the comp table for an individual rated at 30% or is it 30% pulled from the total lump sump seen. There’s a pretty large difference in the two with comp table being around $500-600 and the latter around $1200.

 

[RetiredColonel-MikeT]

Thank you for the response. It’s unfortunately too late for me to appeal. I already accepted the decision. I’ve been out a couple years now and really didn’t know much on the subject. Although I do agree that would have been the better option looking back. I wish I would have found this forum sooner. Last question for now at least. Is the 30% rate, the rate represented by the comp table for an individual rated at 30% or is it 30% pulled from the total lump sump seen. There’s a pretty large difference in the two with comp table being around $500-600 and the latter around $1200.

It'll be from the comp table w/dependents, if applicable.

 

[JJAF16]

It'll be from the comp table w/dependents, if applicable.

Thank you for clearing that up. Thank you to everyone that chimed in. This has helped me a lot to know what to expect and how to plan around it.

 

[jt987]

Posting in here instead of cluttering with new thread.

I was medically retired and placed on a TDRL list in 2023 with a DOD rating of 30% for one condition. In 2025 the DOD rating was reduced to 10% and I was told I would be receiving a severance pay. I am rated at 100% p&t per the VA. The condition that was reduced on the DOD side holds a rating of 30% on the VA side still. When my severance pay is issued, should I expect 10% or 30% to be withheld per the VA comp table front my monthly VA disability check? Thank you for any help. I asked the VA over the phone and they said it would all be kept until paid off, but I don’t believe the individual on the phone understood the question. Withholding the full monthly pay until paid off didn’t seem accurate based on what I have read. Thank you for any help. - Jo

I'm in the same situation, removed from TDRL with DSP. As others have said, it would be offside by the 30% unless your ratings without the qualifying conditions remain 100%. Have you received any updates on the timeline for when you'll receive your severance pay? I'm trying to gauge how long the process normally takes from final review to payout.

 

[Am2026]

I don't want to start new thread.

Few questions,
Firstly, I have VA 100% P&T and DOD 20%, if 20% Dod is deducted, I will be in 90% which put me in recoupment phase. My question, if I increase my ratings in some conditions that I was given 0% and it will still put me on 100% P&T even after the deduction of DOD 20%, will VA stop the monthly recoupment if it has already begins? And will they refund the few months already withheld or how does it work?

Secondly, if DFAS withheld my severance pay tax and I claim it back. Do I have to report it on my taxes I will file? And will they resend me a new final LES if one has been sent out before?