Possibility of Severance

LBK

PEB Forum Regular Member
Registered Member
Hello,

Just sent in my response for the MEB findings. In the Narsum they only approved me unfit for my right shoulder (20% VA rating prior to MEB) so far, but I plan on doing a rebuttal for MH at the PEB level so I have time to gain letters/evidence to support my case and get a medical retirement instead of discharge. If my rebuttal does nothing and my shoulder comes back unfit at 20% I will be eligible for the severance pay, but I keep seeing conflicting wording on how they calculate the pay. I currently have 3 eligible years for the calculation, but my injury has an LOD from deployment in a combat zone so I am wondering if I meet requirements for the 6 year minimum for the severance pay. It was not a "combat-related injury" but "Incurred in line of duty in a combat zone". Anyone have insight if I get 3 or the 6 year payout?

From DFAS:

"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. Prior to January 28, 2008, a maximum of 12 years and minimum of three years creditable service was used."

From Myarmybenefits:

"To qualify for the minimum six years, the disability must be incurred in line of duty in a combat zone as designated by the Secretary of Defense OR incurred during the performance of duty in combat-related operations as designated by the Secretary of Defense. DoD policy for the "combat related operations" determination is that the disability must be incurred as a result of armed conflict."

Just trying to figure out what to expect since PEBLO and SMEBC both seem to say I will only get the 3 year payout, but the sources I've been reading are very conflicting from their answers.


Thank you for any help in answering this!
 
Hello @LBK --six years in the case you described.

Your Disability Severance Pay, if based on a disability incurred in the line of duty in a CZ (as designated by the SecDef) or incurred during the performance of duty in combat-related operations (as designated by the SecDef) WILL BE SIX YEARS.

From DoD Financial Management Regulation
LINK <---

5.3 Computation

5.3.1. Formula. To compute disability severance pay, multiply the sum of the highest applicable basic pay amount (described in paragraph 5.3.3) for 2 months by the number of combined years (but not over 19) of active service and inactive duty points. Do not include as basic pay the 25-percent increase prescribed under certain conditions for a Navy or Marine Corps member retained on active duty after enlistment expires.

5.3.2. Years of Service. The member’s separation orders will specify the total combined years of active service and inactive duty points to be counted in computing severance pay. Round this total to the nearest whole year, with 6 months or more rounded up. The maximum number of years of service for computing the disability severance pay will be 19 years. The minimum number of years for computation purposes will be:

5.3.2.1. Six years in the case of a member separated from the Armed Forces for a disability incurred in the line of duty in a CZ (as designated by the SecDef) or incurred during the performance of duty in combat-related operations (as designated by the SecDef); [added: if the member has less than six years, six years will be used for this catefory]

or 5.3.2.2. Three years in the case of any other member. [added: three years is the minimum for other cases]

5.3.3. Grade at Which Disability Severance Pay is Computed. Compute severance pay based on the basic pay of the following highest grade or rank described:

5.3.3.1. The grade or rank in which the member is serving on the date placed on the Temporary Disability Retired List (TDRL) or, if not applicable at separation;

5.3.3.2. A higher temporary or permanent grade or rank than that subparagraph 5.3.3.1 in which member served satisfactorily as determined by the Secretary of the Military Department concerned; or

5.3.3.3. For those selected for promotion to a permanent regular or reserve grade, if the disability for which the member was separated found during a physical examination, then the grade or rank to which the member would have been promoted if there was no disability. For those who would have been promoted to a temporary grade or rank had it not been for the discovery of the disability, then that temporary grade or rank if eligibility for promotion was required to be based on cumulative years of service or years in grade

Ron
 
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@RonG thank you for the response, I’m glad I’m not the only one interpreting the wordage this way. Now I just wait for the PEB findings to see if I even need to worry. Thanks again!
 
@RonG thank you for the response, I’m glad I’m not the only one interpreting the wordage this way. Now I just wait for the PEB findings to see if I even need to worry. Thanks again!
The reference is
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35 * July 2022

5.3 Computation

LINK <---


Ron
 
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