lower severance pay then what i expected

L

liam7873

PEB Forum Regular Member
Registered Member
So i was rated at 10% disability by the DOD and was given severance pay ive only been in the USN for about a year and from being on the forum i should have recieved a amount a bit lower then 12K but i just got my dd214 on nsips and they said "DISABILITY SEVERANCE PAY AUTHORIZED AND PAID IN THE AMOUNT OF $3,885.00, 10%." is this correct or am i just being under paid
 
liam7873 said:
So i was rated at 10% disability by the DOD and was given severance pay ive only been in the USN for about a year and from being on the forum i should have recieved a amount a bit lower then 12K but i just got my dd214 on nsips and they said "DISABILITY SEVERANCE PAY AUTHORIZED AND PAID IN THE AMOUNT OF $3,885.00, 10%." is this correct or am i just being under paid
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Hello @liam7873

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.

Your pay grade and pay rate were not mentioned.

If you were an E3, your pay would have been $2,043 gross.

2 months x 2043 = 4086

4086 x 3 years minimum = 12,258 severance pay gross

Using the information you provided (which was incomplete), I agree that the DD 214 amount is incorrect.

Ron
 
I’m currently on my way to talk to my YN2 right now but she dosent know much just from working with her and I talked to someone in my same situation who leaves the navy the same day and he said he received a amount of $9700 which is what I should have gotten she put in a request for them to look over my dd214 hopefully I hear something back soon as well I Had emails from my Peblo showing that the calculation is wrong as well
 
liam7873 said:
I’m currently on my way to talk to my YN2 right now but she dosent know much just from working with her and I talked to someone in my same situation who leaves the navy the same day and he said he received a amount of $9700 which is what I should have gotten she put in a request for them to look over my dd214 hopefully I hear something back soon as well I Had emails from my Peblo showing that the calculation is wrong as well
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The computation rules are in the first paragraph of my first reply to you. I copied it directly from the DFAS site. More importantly, it is the same info in the DoD Financial Regulation
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35
https://comptroller.defense.gov/Portals/45/documents/fmr/current/07a/07a_35.pdf <---LINK

The amounts usually used in Severance Pay discussions are Gross amounts, NOT Net amounts.

Ron
 
Added:

The Personnel Office does not compute Severance or other pays. DFAS is the responsible element through their agents (employees and military personnel).

Ron
20+ years AD, Army Finance Corps
 
how much is usually taxed buy going from 12000 to only 3800 that does not sound correct to me still
 
liam7873 said:
how much is usually taxed buy going from 12000 to only 3800 that does not sound correct to me still
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Separation and reenlistment bonuses were taxed at 20% when I was on AD 30 years ago.

It might be at 25% now...I did not look it up.

Ron
 
even still though i dont believe it is right for it to be that low even after tax hopefully i hear something back this week
 
it looks like they went into my dd214 because i saw a last updated at 11:30 today and had a serial number and a transaction letter under the remark statement that was just added
 
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