Dual Compensation of VA Benefits and Army National Guard Retirement

J

Jenningsjs

PEB Forum Regular Member
Registered Member
Can someone please explain the rules of dual compensation to me like I’m 5 years old?

I took a medical discharge from the Army National Guard with 30 years and 6 months of total service. I was 48 years old at the time and am currently 54 years old.

My Army disability rating was 70%.

I simultaneously received VA disability at the same rate of 70%.

Since this time, my Army disability retirement has been offset by the amount of my VA disability.

I have been told by several people I should not have an offset because my VA rating was over 50%.

I recently contacted DFAS and they stated that at the time of my Army retirement they calculated my retirement payment using 2 different methods. One was based on years of service and the other was based upon my Army disability rating of 70%. They further stated they paid me the higher of the two retirements which was that calculated using my Army disability rating. Due to this, they claimed, my Army retirement would be offset by the amount of my VA disability payment, also 70% at the time, until I was age 60.

Is this correct?

This just became a more urgent matter as my last VA appeal upgraded me from 70% to 90% and backdated it to the date of retirement.

This means I will receive a backpay payment from the VA for the 80 months I was paid at 70% instead of 90%.

If the offset is correct, I assume I will have a large DFAS debt to pay back the extra that should have been withheld from my Army retirement.

This would be fine, except that the VSO that assisted with my appeals filed paperwork with the VA to automatically receive 20% of the backpay. This will leave me with a DFAS debt of about $8,000.00 to pay out of my pocket.

However, if the Army offset in the amount of my VA payment has been incorrect, then I will be in the clear.

I hope this post makes sense. I’m basically trying to figure out why my Army retirement is being offset by my VA payment. If I can explain that to the VSO that assisted me, maybe he will refund the 20%, or at least reduce it.

Thanks for any assistance!!
 
If I am not mistaken...an expert here can correct me... Reserve retirement CMRP will be based off ones earned reserver retirement numbers. For the guard this amount is found on your NGB 23a points form.

The DoD payment will be the amount you would have been paid for your earned reserve retirement had you not earned Chapter 61 medical retirement. And separately you would be paid the total amount of your earned VA pay. This would all take place at reserve retirement age of 60 or earlier if one has deployment time that reduces this number.

Which would be greater is the answer---

VA pay minus Chapter 61 less any residual pay w/ possible crsc

or

Full Reserve Retirement and full VA (CMRP)


There has been some mixed information about whether one has to apply or not at retirement age for reserve retirement while also receiving chapter 61. In a meeting with my RSO days ago he stated it would be automatic and they would pick whatever is financially more beneficial for the service member. And yet on the websites it states "generally" it is automatic. While in other areas it states one must apply. Regardless, about 1 year out from retirement age I would reach out to defas and check in on the process. In my case, I plan to decline applying as it is financially more beneficial for me to remain on chapter 61.
 
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Jenningsjs said:
Can someone please explain the rules of dual compensation to me like I’m 5 years old?

I took a medical discharge from the Army National Guard with 30 years and 6 months of total service. I was 48 years old at the time and am currently 54 years old.

My Army disability rating was 70%.

I simultaneously received VA disability at the same rate of 70%.

Since this time, my Army disability retirement has been offset by the amount of my VA disability.

I have been told by several people I should not have an offset because my VA rating was over 50%.

I recently contacted DFAS and they stated that at the time of my Army retirement they calculated my retirement payment using 2 different methods. One was based on years of service and the other was based upon my Army disability rating of 70%. They further stated they paid me the higher of the two retirements which was that calculated using my Army disability rating. Due to this, they claimed, my Army retirement would be offset by the amount of my VA disability payment, also 70% at the time, until I was age 60.

Is this correct?

This just became a more urgent matter as my last VA appeal upgraded me from 70% to 90% and backdated it to the date of retirement.

This means I will receive a backpay payment from the VA for the 80 months I was paid at 70% instead of 90%.

If the offset is correct, I assume I will have a large DFAS debt to pay back the extra that should have been withheld from my Army retirement.

This would be fine, except that the VSO that assisted with my appeals filed paperwork with the VA to automatically receive 20% of the backpay. This will leave me with a DFAS debt of about $8,000.00 to pay out of my pocket.

However, if the Army offset in the amount of my VA payment has been incorrect, then I will be in the clear.

I hope this post makes sense. I’m basically trying to figure out why my Army retirement is being offset by my VA payment. If I can explain that to the VSO that assisted me, maybe he will refund the 20%, or at least reduce it.

Thanks for any assistance!!
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So basically until you qualify and apply for your earned non regular retirement at age 60 or less if reduced by qualified deployments any VA compensation received will offset your chapter 61 medical retirement. That is the law.

There is a rule regarding 50% total VA rating but that is an additional requirement to get both earned longevity non regular retirement AND VA compensation. So the people stating you shouldn't have the offset due to having 50% or higher total VA rating are wrong. That is because you need to be eligible for your 20 year guard retirement AND receive total VA compensation of 50% or higher. Since you have not reach the age to receive your Guard retirmeent your chapter 61 medical retirement will continue to be offset by any VA compensation that you receive.

So everything is working as it should be except there are a lot of people out there that don't know how this all works. At 6 months before you reach eligible age for your Guard retirement you will want to apply for it. Then when you reach the age to get it you will get all of your VA compensation and all of your earned Guard pension. You can't get more than the combination of your earned guard pension + VA compensation with one rare exception.. Just a FYI because some people think they will get their chapter 61 medical pension and all of your VA compensation and this is not true. For that rare exception on getting more you would need your chapter 61 medical retirement to be higher than your earned longevity guard pension + VA compensation total. This typically happens when a high ranking officer in the guard or reserves medically retires with a high DOD% but with a low amount of points. If that's the case for you then you are already are the most compensation you can get.

So calculate your Guard pension and add that amount to your total VA compensation. That amount is the most you can get by law for 99% of the people. If your chapter 61 pension is higher than that amount you are already maxed out. If after subtracting your chapter 61 pension from the total of your earned guard pension + VA compensation that is how much you are losing due the VA offset. That is how much more you will get when you reach the age to receive your Guard pension.
 
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"For that rare exception on getting more you would need your chapter 61 medical retirement to be higher than your earned longevity guard pension + VA compensation total."

That is an interesting exception I was not familiar with. I'll need to double check my numbers, but I believe my chapter 61 is about is about even with my combination of guard pension and VA comp.
 
DaveK said:
To receive CMRP (formally CRDP) one must meet those standards regardless of the IDES process. Completing 20 yrs active service or 20 yrs reserve and meeting the reserve age requirement permit this.

And yes, it appears correct short of some more data. What are your total active years vs guard? What are your total points?

Defense Finance and Accounting Service > RetiredMilitary > disability > crdp
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A total of about 5 years active and 25 and a half National Guard. I’ll have to contact my state to see about points.
 
DaveK said:
If I am not mistaken...an expert here can correct me... Reserve retirement CMRP will be based off ones earned reserver retirement numbers. For the guard this amount is found on your NGB 23a points form.

The DoD payment will be the amount you would have been paid for your earned reserve retirement had you not earned Chapter 61 medical retirement. And separately you would be paid the total amount of your earned VA pay. This would all take place at reserve retirement age of 60 or earlier if one has deployment time that reduces this number.

Which would be greater is the answer---

VA pay minus Chapter 61 less any residual pay w/ possible crsc

or

Full Reserve Retirement and full VA (CMRP)


There has been some mixed information about whether one has to apply or not at retirement age for reserve retirement while also receiving chapter 61. In a meeting with my RSO days ago he stated it would be automatic and they would pick whatever is financially more beneficial for the service member. And yet on the websites it states "generally" it is automatic. While in other areas it states one must apply. Regardless, about 1 year out from retirement age I would reach out to defas and check in on the process. In my case, I plan to decline applying as it is financially more beneficial for me to remain on chapter 61.
Click to expand...
Thank you. I’ll have to contact my state to get a copy of my NGB 23a. My regular Guard retirement will definitely be way less than my Chapter 61 retirement so this could be a big loss at 60.
 
DaveK said:
"For that rare exception on getting more you would need your chapter 61 medical retirement to be higher than your earned longevity guard pension + VA compensation total."

That is an interesting exception I was not familiar with. I'll need to double check my numbers, but I believe my chapter 61 is about is about even with my combination of guard pension and VA comp.
Click to expand...
Ive never heard of this exception either and I feel that my totals will be close because I’m pretty sure my Chapter 61 retirement is much higher than my regular Guard retirement will be. This could be a huge income loss at age 60.
 
Provis said:
So basically until you qualify and apply for your earned non regular retirement at age 60 or less if reduced by qualified deployments any VA compensation received will offset your chapter 61 medical retirement. That is the law.

There is a rule regarding 50% total VA rating but that is an additional requirement to get both earned longevity non regular retirement AND VA compensation. So the people stating you shouldn't have the offset due to having 50% or higher total VA rating are wrong. That is because you need to be eligible for your 20 year guard retirement AND receive total VA compensation of 50% or higher. Since you have not reach the age to receive your Guard retirmeent your chapter 61 medical retirement will continue to be offset by any VA compensation that you receive.

So everything is working as it should be except there are a lot of people out there that don't know how this all works. At 6 months before you reach eligible age for your Guard retirement you will want to apply for it. Then when you reach the age to get it you will get all of your VA compensation and all of your earned Guard pension. You can't get more than the combination of your earned guard pension + VA compensation with one rare exception.. Just a FYI because some people think they will get their chapter 61 medical pension and all of your VA compensation and this is not true. For that rare exception on getting more you would need your chapter 61 medical retirement to be higher than your earned longevity guard pension + VA compensation total. This typically happens when a high ranking officer in the guard or reserves medically retires with a high DOD% but with a low amount of points. If that's the case for you then you are already are the most compensation you can get.

So calculate your Guard pension and add that amount to your total VA compensation. That amount is the most you can get by law for 99% of the people. If your chapter 61 pension is higher than that amount you are already maxed out. If after subtracting your chapter 61 pension from the total of your earned guard pension + VA compensation that is how much you are losing due the VA offset. That is how much more you will get when you reach the age to receive your Guard pension.
Click to expand...
Thank you. I definitely thought I would be drawing both my Chapter 61 retirement and VA with no offset at all at age 60. This is very disappointing. I will have to contact my state to get my NGB Form 23 to see about how much my regular retirement will be. Thanks for your response.
 
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