Retirement Pay

shadesan

Registered Member
OK so I know this is somewhere already and I just haven't found it. Hopefully someone can point me in the right direction. A little background, I was discharged from the USMC in 2003 with 20% and later got 60% from the VA. I received severance pay when I was discharged and consequently had to pay it back in the following years till it was paid in full. Fast forward 15 years later and I am now receiving my full VA pay. I submitted for the PDBR review in Oct 2016 and am still waiting for adjudication (Yup still waiting patiently for a decision). My question is, since that money was paid back in full will DFAS try to take the amount of the severance out of the backdated pay a second time? If someone cold help or point me in the right direction I would appreciate it.
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Re: "My question is, since that money was paid back in full will DFAS try to take the amount of the severance out of the backdated pay a second time? "

Your question asks if it is possible for DFAS to make an error. The answer is "yes," but that does not mean it will happen to you.

You can use the search feature on this board for experiences of that type. I would use the word, "recoupment".

Please note that your retired pay will be reduced by the amount of VA compensation you receive each month. This is separate from any severance recoupment.

Good luck ,
Ron
 

Perci75

PEB Forum Veteran
Registered Member
I can give you my scenario: I received severance pay in 2004 when I was med sep, was retired by the PDBR last year and owed 14.5 years of retirement back pay. Because I was retired, by law, I was no longer eligible for the severance pay I received. This means I can no longer look at this as a "severance pay", but as a cash advance on our VA disability pay which will offset any retirement back pay due to you. My severance pay was recouped entirely, pretax amount, from my retirement back pay. I was not entitled to CRCS/CRDP which could play a factor in these calcualtions
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
An addendum to Perci75's remarks.

Completely separate from a recoupment of severance pay situation. A Chapter 61 retiree with less than 20 years service will have their retired pay reduced by amount of VA compensation.

Example 1. Retired pay 3200; VA Compensation 3000 results in 3200 minus 3000 = 200 retired pay plus 3000 VA compensation for a total 3200 received each month.

Example 2. Retired pay 3000; VA Compensation 3200 results in 3000 minus 3200 = zero retired pay plus 3200 VA compensation for a total 3200 received rach month.

Ron
 
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