Opinion: Which is better outcome, PDRL or discharge w/ severance?

I just received my TDRL first 18-month re-eval determination, "Permanent Retirement (PDRL)" with a 30 compensable percentage. Currently the VA has rated me at 50% w/spouse and one dependent. I was an E-6 with 9.5 yrs TIS at time of TDRL separation. At this time, monthly, I receive $345 from the AF (offset by VA disability compensation) and $899 from the VA.

In figuring out my retired pay once I accept the IPEB decision, if I can use the 2010 Military Pay Table, my AF retirement pay will go to $915.30 ($3051.00 * .30). My VA disability will remain at $899.00. Because I am not eligible for concurrent receipt or CRSC, the offset will make my AF retired pay go to $16.30/mo.

If the IPEB decision fell under 30%, I would have received separation, w/severance. That amount would have come to $57,969.00 before taxes ($3051 * 2 months * 9.5 yrs of service). I would not receive VA compensation until it "paid back" the severance, which would, theoretically, be 64 months (five years); give or take a month.

My question is, aside from all other military retirement benefits (BX/Commissary, "TRYCARE", Class Six), from a financial standpoint, which is the better outcome? If the severance was the outcome, I would receive almost $60k right off the bat, then in six years my VA disability kicks back in. If PDRL is the outcome, I receive $16 a month from the AF for life and VA disability now.

I'd like to start my own business and the severance is looking like the better outcome. But, I know most people in my situation would prefer the PDRL and probably think I'm being irrational or greedy. I'm just trying to figure out what would be best for me and my family.

BTW, does anyone know of a good retirement calculator on the WWW for military disability retirement? I didn't have time to wait on hold with DFAS Retirement Division for 1+ hrs. and the OSD website has every retirement calculator imaginable EXCEPT for one that figures out disability retirement pay. <http://militarypay.defense.gov/retirement/index.html>

I digress.

Thanks, everyone!
 
Click to expand...
I would prefer the permenent retirement based soley on the Tricare alone. Look into private healthcare for your family and I bet you can't get anwhere close to 470.00 a year for you and your family. If you are trying to start a bussiness I would look up the benefits that the government is offering right now for small bussiness start ups

Military Veteran Small Business Resources

Small bussiness loans are good way to start up. I think in the long run you will see the benies. just my 2 cents
 
A very good question...it all depends on your situation.

First, let me clarify that you would not lose all of your VA disability if you received severance pay. You would only lose the portion that was rated as service connected from the Air Force or 30% with dependents. Therefore, your VA pay would be $446 a month with $453 (30% disability pay with spouse and one child) a month going to pay back your severance pay or approximately 128 months to pay it back.

However, if you received the severance, they would take 28% off the top for taxes and you have to spend at least 6 months (it happened to me) to prove that you are going to get VA disability to get that 28% refunded to you. So upfront you will only receive $41,738 with the remaining $16,231 only coming back to you after you ask for it back.

Ultimately, it depends on you and your family siuation. You say you need the money to start a business now...but I am in agreement with Allty that Tricare alone is worth it...as a matter of fact I was a 20% disability severance case who fought hard with the PDBR to get my retirement solely for the Tricare benefits because I am 80% disabled with the VA. I gurantee that if you try to get insurance for your family it will be more like $460 a month vice $460 a year!

In my personal opinion, take the retirement it is a gurantee.

Send me a private message if you have any other questions or concerns, I was in your position only 18 months ago.

Obie
 
Take the PDRL, you should have had TAP classes or DTAP where the VA told you about small business loans for vets. 25k and no business plan needed. You do have to pay it back though. Tricare is going to be invaluable if you are self employed.
 
Thanks for everyone's opinion. I partially had TAP but I really didn't find the information that helpful. It might be because I usually go out and find information better on my own. Also, in my experience, the people at the base seem to be annoyed or find it a chore to help with transition stuff. Probably because they are being paid for a job and they can't get fired. That's a whole 'nother thread, though. I would like to find out about the $25k no questions asked if you could just let me know the name of that program, I'll look it up myself.

It's a tough situation but I went ahead and accepted the PDRL. I'm just afraid I'll get in a TOO comfortable situation where I am with military retirement (to include military health care) and VA disability working as a GS-12 with the DoD. My sole existence depends on the Federal Government. It's a scary thought if you have the mentality that I do. The last thing I want is to turn into a drone of the "Entitlement Generation" that has taken over the country. At least the government doesn't pay my mortgage, I guess. This was one of the reasons I wanted to start my own business and free myself from dependence. Sorry, kind of went off on a tangent there, but those are my thoughts at the moment.

Thanks again for everyone's input. PDRL it is.
 
You must log in or register to reply here.
Top