Sanity check - accepting severance or request FPEB

Hi all,

I think I've reached a good decision to accept my IPEB findings, but wanted some feedback. I am using my legal/VA/wounded warrior resources as well.

BLUF: I'm a Navy O3 with 9 years of service. I had stage 3 and then stage 4 melanoma, now in remission for >6 months, have a bunch of residuals because of treatments, surgeries, etc. My IPEB came back with a proposed 100% P&T VA, 20% DoD - separation with severance. I think I want to accept the IPEB decision rather than push for a FPEB/retirement, as it would give me full healthcare at the VA, coverage for my husband under CHAMPVA, a good severance (>100K), and the ability to take a GS14 position that I expect an offer for in the next week without having to wait 180 days. I also just kind of want to be done, as this process and the related stress has been on my mind for at least 3 years.

Additional background:
I have 24 VA-rated conditions, 2 of which were referred. All are static and all service connected. None combat related.

1. 70% ***Referred for this but PEB said it wasn't unfitting
2. 40%
3. 30%
4. 20%
5. 20%
6. 20% ***This is the only referred condition the PEB found unfitting
7. 20%
8. 20%
9. 20%
10-18 10%
19-24 0%.

Is there anything I'm missing by not pushing for an FPEB to get to retirement? At first glance, some of my "resources" are saying I should be entitled for medical retirement. The way I see it, the only thing I would really gain is Tricare, and I'm already covered by the VA (plus the insurance I will have with employment). As a 100% P&T I would have access to many of the regular retiree benefits (Commissary, exchange, MWR, etc). I would also be giving up the severance, which is not chump change in my situation. My recoupment would only be on the one 20% unfitting condition.

An FPEB would drag out the process many months, who knows with the COVID-19 state of things. The next condition most likely to be unfitting is the 70%, which is Major Depression/Anxiety, and I'm concerned about being put on the TDRL and being re-evaluated because I know that can easily be reduced.

The GS14 job is actually my old billet that was converted to a civilian job... It's a pretty specialized knowledge set and I was in the job for >2 years, so I would be surprised if someone else was more qualified. Assuming I get it, I'd like to be able to accept without having to worry about a waiver or a 180-day wait.

Thanks in advance for any insight, and please let me know if additional information would be helpful. I tried to keep this (relatively) brief.
 
Recoupment of Disability Severance Pay.

Discussion at this LINK <----

Ron
 
Recoupment of Disability Severance Pay.

Discussion at this LINK <----

Ron

Hi Ron, thanks for the reply. I have read that thread and many others as I have been lurking on the board for quite a while. I believe I mis-stated the original post - I understand it's the monthly VA compensation that is reduced by the severance, not the other way around. In my case, my monthly compensation of $3300ish would be reduced by the amount VA compensates a 20% condition ($220ish) until the severance amount is recouped.

My primary question has to do with whether or not it makes any sense to push for an FPEB rather than taking the separation.

I'll see if I can edit my original post for clarity.
 
Hi Ron, thanks for the reply. I have read that thread and many others as I have been lurking on the board for quite a while. I believe I mis-stated the original post - I understand it's the monthly VA compensation that is reduced by the severance, not the other way around. In my case, my monthly compensation of $3300ish would be reduced by the amount VA compensates a 20% condition ($220ish) until the severance amount is recouped.

My primary question has to do with whether or not it makes any sense to push for an FPEB rather than taking the separation.

I'll see if I can edit my original post for clarity.

That recoupment situation is what my lawyer from the Warrior unit at Bethesda explained to me.
 
Re: "In my case, my monthly compensation of $3300ish would be reduced by the amount VA compensates a 20% condition ($220ish) until the severance amount is recouped. "

That is my understanding as well; however, no one ever returns (to my knowledge) to report their recoupment experience.

This is somewhat like a convenience store. "Stop...Shop...and Go." And...that is fine of course.

Ron

p.s.
I know little about IDES; my signature block includes the reason.
 
That recoupment situation is what my lawyer from the Warrior unit at Bethesda explained to me.

What does your DES attorney say? If you have a job offer and want to start right away, then accepting the severance may be the way you want to go. No one knows how long this COVID-19 sequester will last but you want a job before you get out.

Will your suspense date to decide pass before you get the offer? If so, I suggest requesting an FPEB. You can always withdraw that decision before the FPEB meets, once you get that firm offer. You should discuss this with your DES counsel.

Regarding severance vs. retirement, look at what you would receive over the long term for retirement and compare that with your proposed severance check and see which one works best for you. Don’t forget to factor in the costs of ChampVA into your comparison. When you are retired, you & your spouse get TriCare for Life and you won’t have a cost share premium (except for dental which does cost for your spouse).
 
Re: "Regarding severance vs. retirement, look at what you would receive over the long term for retirement and compare that with your proposed severance check and see which one works best for you. Don’t forget to factor in the costs of ChampVA into your comparison.

Tricare for Life has paid for (my):
--four cardiac pacemakers
--prostate cancer surgery
--associated treatments
--prescribed medicine (seven currently)
--treatment for diabetes II

It has provided coverage for two spouses:
--One who was married to me for 20 years of my military career and has Tricare for Life in her own right
--One to whom I remain married

I suspect Tricare has been worth more than $500,000 during the 29 years I have been retired and it might approach $1 million.

Ron
 
What is your job in the Navy? Apologies if you said already, I looked through the posts and may have missed it.
 
I would personally go for the retirement/tricare but if you have a solid GS job lined up you’ll probably have a good healthcare plan that way. I would not simply rely on the VA, they can be good or bad. In my case good for neurology, bad for mental health, sleep and Primary care, mostly because they either outright refuse medications (high blood pressure, cholesterol, sleep).

Your results with VA may vary. champva is good for family. The only issue is they have a higher cost of prescription copays than tricare but you can get around that by using champva meds by mail, same thing as expressscripts that tricare uses. My fathers widow was paying 285 a month copays for an expensive drug through champva and we switched her from a regular pharmacy to meds by mail and now she doesn’t pay any copay at all...
 
Just for closure, I did end up accepting the separation with severance and 100% VA disability (still pending finalization). All sources I've talked to (subject matter experts) have told me the recoupment from my monthly VA disability will be for the amount of my one unfitting condition, which was rated at 20%, equates to $280ish a month. I'll try to remember to come back and post an update when the payments actually start.

I'll post my timeline in the Navy forum as well.
 
Just for closure, I did end up accepting the separation with severance and 100% VA disability (still pending finalization). All sources I've talked to (subject matter experts) have told me the recoupment from my monthly VA disability will be for the amount of my one unfitting condition, which was rated at 20%, equates to $280ish a month. I'll try to remember to come back and post an update when the payments actually start.

I'll post my timeline in the Navy forum as well.
Ref:
M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits
--->LINK


III.v.4.B.3.b. General Policies Regarding Withholdings to Recoup Disability Severance PayGenerally, if a Veteran received disability severance pay, VA must withhold from his/her monthly compensation an amount equal to the monthly compensation payable for the disability(ies) for which the Veteran received disability severance pay. VA continues to withhold this amount until it has recouped the amount specified in M21-1, Part III, Subpart v, 4.B.2.d.

Important:
  • The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies).
  • If a Veteran has multiple, severance-pay disabilities, each rated 0-percent disabling, and VA assigns a 10-percent disability rating to them under 38 CFR 3.324, no withholding is necessary for these disabilities until VA assigns a compensable rating to one or more of them, individually.
  • Withhold the additional benefits payable because of application of the bilateral factor if
    • the initial, compensable rating included application of the bilateral factor, and
    • entitlement to the bilateral factor was based exclusively on severance-pay disabilities.
Ron
 
Just for closure, I did end up accepting the separation with severance and 100% VA disability (still pending finalization). All sources I've talked to (subject matter experts) have told me the recoupment from my monthly VA disability will be for the amount of my one unfitting condition, which was rated at 20%, equates to $280ish a month. I'll try to remember to come back and post an update when the payments actually start.

I'll post my timeline in the Navy forum as well.
How did recoupment work after you finished up?
 
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