MEB or VA?

I got a dilemma, I could possibly get med-boarded OR I could move forward and probably get VA 90% (maybe). I'm wondering is it better to get med boarded and take home the smaller monthly payment (TERA) or join the reserves and claim the VA90% to get the higher payment and cheaper medical.

I hear its hard to get accepted into the Reserves with such a high VA but I also know people who did their VA claims after they were approved to transfer to the Reserves and got both. I only ask because I have been told that MEB is the way to go, but after crunching numbers, it seems the reserves is because ill be able to keep more of my VA.. IF it all works out, just wondering any one has every gone through this or has any other insight.

I know I'm covered with the VA medically for life if I have 50% disability and have deployed before, but my family needs medical. That's why I am so desperate for the reserves. More money and cheaper health coverage.

Just seeing if anyone else encountered this type of decision making... have a good day
 
If you retired TERA wouldn't you be able to receive CRDP? Meaning you would receive both your military (TERA) retirement as well as your VA. Have you already been approved for TERA? Eligibility, you are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater. As per DFAS.mil
 
Re: “I'm wondering is it better to get med boarded and take home the smaller monthly payment (TERA) or join the reserves and claim the VA90% to get the higher payment and cheaper medical. ” In another thread, you mentioned, “Anyway, how long does the process take and if they start a MEB process and my enlistment is gonna end in 8 months...”

1. A medical retirement (Chapter 61) is unrelated to a TERA retirement.

2. Temporary Early Retirement Authority (TERA) authorized members with over 15, but less than 20 years of total active duty service to apply for early retirement. The opportunity to retire under this TERA program was/is not available to all. It is a downsizing
tool for the services. It is my understanding that the program is no longer being used by at least one service.

3. One can receive a disability retirement and also receive VA compensation. The disability retirement pay is reduced by the amount of VA compensation received. Approved Combat Related Special Compensation could replace some of the lost retirement pay.

4. Your disability retired pay would be either the percentage approved by your service (30% or more) x the average of the highest 36 months basic pay OR your active duty years x 2.5% x the average of the highest 36 months basic pay.

5. See Tricare Benefits for disability retirees at https://tricare.mil/LifeEvents/Retiring/MedicalRetirement <——TRICARE LINK

6. A couple of final points:
---Accepting VA compensation (which reduces retired pay) does not negate your disability retirement status (and you continue to be eligible for TRICARE)
-- As I have mentioned several times elsewhere, I cannot think of one good reason to decline VA compensation. It is not an "either or" proposition. It simply reduces the amount of retired pay by the amount of VA compensation. Occasionally, there is remaining retired pay that is retained by the retiree.

Ron
 
Re: “I'm wondering is it better to get med boarded and take home the smaller monthly payment (TERA) or join the reserves and claim the VA90% to get the higher payment and cheaper medical. ” In another thread, you mentioned, “Anyway, how long does the process take and if they start a MEB process and my enlistment is gonna end in 8 months...”

1. A medical retirement (Chapter 61) is unrelated to a TERA retirement.

2. Temporary Early Retirement Authority (TERA) authorized members with over 15, but less than 20 years of total active duty service to apply for early retirement. The opportunity to retire under this TERA program was/is not available to all. It is a downsizing
tool for the services. It is my understanding that the program is no longer being used by at least one service.

3. One can receive a disability retirement and also receive VA compensation. The disability retirement pay is reduced by the amount of VA compensation received. Approved Combat Related Special Compensation could replace some of the lost retirement pay.

4. Your disability retired pay would be either the percentage approved by your service (30% or more) x the average of the highest 36 months basic pay OR your active duty years x 2.5% x the average of the highest 36 months basic pay.

5. See Tricare Benefits for disability retirees at Medical Retirement | TRICARE <——TRICARE LINK

6. A couple of final points:
---Accepting VA compensation (which reduces retired pay) does not negate your disability retirement status (and you continue to be eligible for TRICARE)
-- As I have mentioned several times elsewhere, I cannot think of one good reason to decline VA compensation. It is not an "either or" proposition. It simply reduces the amount of retired pay by the amount of VA compensation. Occasionally, there is remaining retired pay that is retained by the retiree.

Ron
So in a way, the higher my VA disability percentage, the less money I make since till be more money that is being subtracted correct? so it wouldn't make sense to try and get 100% VA, its better to compare percentages for each percent VA/DOD and see which one has the most money left over.

I also read somewhere that I may be able to choose one over the other, is that true? For instance, turn down my medical retirement pay if it is less than my VA income?

It seems the best route is to keep my VA % at 75% since that is the max % of my AF base bay I can get for med disability. And keep my VA at 80% so I can max out the base pay % and keep the VA as low as possible so its less that is deducted.

As I learn more about the process, it seems that the MedBoard thing brings in less and less money. Just wondering if I'm missing something because it doesn't seem like that good a route beside the medical...which I can receive form the VA anyway. Thoughts?
 
1. For CH 61 retirees, the DOD retirement pay is reduced by the amount of VA Compensation received. Example: 3100 retired pay and VA compensation 3000 =
3100 - 3000; results in 3000 VA Compensation and 100 residual retired pay.

2. Occasionally, not all the DoD Retired Pay is lost due to the reduction via receipt of VA compensation.

3. The retiree will keep the left over residual (left over) Retired Pay.

4. Choosing one or the other: That is an oversimplification. Agreeing to waive retired pay and receive VA comp results in the actions at items 1-3. If one declines VA Comp (which is non-taxable) only the taxable DoD Retirement Pay is received. I can think of no beneficial reason to decline VA compensation.

5. You said: “...medical...which I can receive form the VA anyway. Thoughts?”
a. If you receive a DoD medical retirement, you are eligible for TRICARE even if all your retirement pay is waived.
PLUS
b. You are eligible for VA medical care due to your service and service connected disabilities.

Ron
 
So is there a way that I can waive my full DoD retired pay and just collect my VA pay? Or is subtracting them the only way that I can get anything out of them?
 
So is there a way that I can waive my full DoD retired pay and just collect my VA pay? Or is subtracting them the only way that I can get anything out of them?
  1. Your VA compensation can be declined, but in my opinion that would be a major mistake.
  2. You must waive retired pay in the amount of VA compensation. You get to keep any excess.
  3. Many CH 61 retirees end up waiving all their retired pay because the VA compensation causes a total waiver.
  4. Why would you not want to receive the residual retired pay if any? You would receive all your VA comp + residual retired pat.
A. I think this is missing the essence of the situation: "Or is subtracting them the only way that I can get anything out of them? "
--You will receive all your VA compensation UNLESS you decline to accept it, which is unfathomable to me.
--Per law, your retired pay must be reduced by the amount of VA compensation. I explained the residual aspect.
--If you have a claim for Combat Related Special Compensation and it is approved, some or all of the waived retired pay could be replaced by CRSC.

B. Summary:
--Most CH 61 retirees agree to waive retired pay in order to receive VA compensation. If you do not agree to accept VA compensation, all you will receive is your military retired pay...period.
--By agreeing to accept VA compensation, you might have left over retired pay to keep PLUS the VA compensation. You also might have the opportunity to receive CRSC.

Ron
 
Applebird,

Example:

Situation-- Retired pay $3000; VA compensation about $2,098 (90% with spouse & one child)

$3000 retired pay - $2098 VA comp = $902 residual retired pay
Each month the retiree receives: 2098 VA comp + 902 residual ret pay = $3000

Another example:

Situation-- Retired pay $2000; VA compensation about $2,098 (90% with spouse & one child)

$2000 retired pay - 2098 VA comp = zero retired pay
Each month the retiree receives 2098 VA compensation

These examples do not address CRSC scenarios.

Ron
 
Holy crap. I got it, Thank you, I was confused thinking that the VA got cancelled out when they offset the DoD pay. So you still get the VA pay but just the DoD pay is offset. Perfect, now it all makes sense.
 
I am glad we could help.

Ron
 
Decline VA compensation? I am currently receiving VA comp, and waiting on first retirement pay on 1 Jun. (retired 1 Apr)

When or where do folks make this decision to Waive VA pay or not? I do NOT want to do this as Ron G. eludes is not financially smart, but I do not recall ever seeing anything or being 'briefed' on this topic? I want to ensure I didn't do this?!
 
Decline VA compensation? I am currently receiving VA comp, and waiting on first retirement pay on 1 Jun. (retired 1 Apr)

When or where do folks make this decision to Waive VA pay or not? I do NOT want to do this as Ron G. eludes is not financially smart, but I do not recall ever seeing anything or being 'briefed' on this topic? I want to ensure I didn't do this?!
That is an excellent question.

When you accept VA compensation, you are agreeing to having your retired pay reduced (waived) by the amount of the VA compensation.

Any left over retired pay is kept by the retiree (plus receipt of the VA compensation). I cannot understand why anyone would just choose retired pay and decline VA compensation.
—-
The VA claim form will have info similar to the following:

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 may result in an overpayment, which may be 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.

26. Do NOT pay me VA compensation. I do NOT want to receive VA compensation in lieu of retired pay.
[Do NOT check this box...my opinion]

Ron
Edited to add:
This is one version of the VA claim form; I did not search to determine if it is the most recent. VA Claim Form <— LINK
 
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