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Severance Pay at 0%

Erinponte

PEB Forum Regular Member
Registered Member
Hello, I just finished my last day of Separation leave yesterday and had two questions.
1. How soon do you normally receive your severance pay? I didn’t owe any debts and took all of my leave.
2. I was told by a lawyer on post that since the DoD side rated me 0%, I wouldn’t have to pay the severance back, has anyone gone through this? I have a friend in finance who says it’s true but I never trust the Army. Thanks in advance!
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hello, I just finished my last day of Separation leave yesterday and had two questions.
1. How soon do you normally receive your severance pay? I didn’t owe any debts and took all of my leave.
2. I was told by a lawyer on post that since the DoD side rated me 0%, I wouldn’t have to pay the severance back, has anyone gone through this? I have a friend in finance who says it’s true but I never trust the Army. Thanks in advance!
"Generally, 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. "

I interpret this to mean 0% DoD = zero recoupment of VA compensation

Same VA manual:
Examples: The table below contains examples of how to apply the policies set forth in this block.

If VA initially rated the severance-pay disability …
And VA subsequently …
Then VA continues to withhold from the Veteran’s monthly compensation …
20-percent disablingrates the same disability 30-percent disablingthe amount payable for a disability rated 20-percent disabling.
50-percent disablingassigns a temporary 100-percent rating to the same disability under 38 CFR 4.28, 4.29, or 4.30the amount payable for a disability rated 50-percent disabling.
0-percent disablingassigns a temporary 100-percent rating to the same disability under 38 CFR 4.28, 4.29, or 4.30nothing, until it assigns the disability a compensable rating.

Additionally:
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35

350506. Recoupment From VA Compensation The VA deducts disability severance compensation from any VA compensation for the same disability to which the member or member’s dependents become entitled. There are two exceptions:
A. No deduction will be made in the case of disability severance pay received by a member for a disability incurred in the line of duty in a CZ or incurred during performance of duty in combat-related operations (as designated by the SecDef); or
B. No deduction will be made from any death compensation to which a member’s dependents become entitled after the member’s death.

More from same regulation: 3505 DISABILITY SEVERANCE PAY 350501.
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35

Entitlement. A member separated from the military service for physical disability is entitled to severance pay, if qualified, as prescribed in personnel regulations of the military service concerned. When a member is entitled to disability severance pay, separation orders specify this entitlement. Academy cadets and midshipmen may be entitled to severance pay if it is determined that they have a qualifying disability, and they have separated as a result of that disability

Comment: While reviewing M21-1, I noticed that certain codes are applied to disability ratings and they are provided to the PEB/MEB process. I do not know if those codes would cause a recoupment. I have never seen a case where that was an issue.

Ron
 

Erinponte

PEB Forum Regular Member
Registered Member
Thanks for this! I was reading through regulations for a while and it just wasn’t translating well for me. I appreciate your help!
 

Erinponte

PEB Forum Regular Member
Registered Member
Hello, I just finished my last day of Separation leave yesterday and had two questions.
1. How soon do you normally receive your severance pay? I didn’t owe any debts and took all of my leave.
2. I was told by a lawyer on post that since the DoD side rated me 0%, I wouldn’t have to pay the severance back, has anyone gone through this? I have a friend in finance who says it’s true but I never trust the Army. Thanks in advance!
Severance pay update: 32 days later and still waiting in severance. So those getting out, it can take a while. I reached out to DFAS who said “your severance has not been processed at this time”. Making me think that they have received it but it just hasn’t been processed. I’ll post again once I receive it (if I ever do!)
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Severance pay update: 32 days later and still waiting in severance. So those getting out, it can take a while. I reached out to DFAS who said “your severance has not been processed at this time”. Making me think that they have received it but it just hasn’t been processed. I’ll post again once I receive it (if I ever do!)
Hello @Erinponte ,

Do your separation orders include information pertaining to disability severance pay?

"When a member is entitled to disability severance pay, separation orders specify this entitlement."
Ref: 3505 DISABILITY SEVERANCE PAY 350501.
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35

Rom
 

Rater81

PEB Forum Regular Member
PEB Forum Veteran
Registered Member
I have a question about this. I was awarded 0% DoD then immediately 30% VA for the same condition. I believe I remember paying back my severance pay. Does this chart indicate that if you receive 30% from the VA and 0% through DoD that you must repay severance? Thank you :)
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hello,

Recommend you review the entire section referenced below.

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.

My interpretation: If one has a zero rating from the DoD and the VA does not award a percentage of 10% or more to the same DoD rating, then no recoupment is warranted.
If one has a zero rating from the DoD and the VA does award a percentage of 10% or more to the same DoD rating, then recoupment is warranted.

When in doubt, contact the VA or a veterans service officer.

Ron
 

Erinponte

PEB Forum Regular Member
Registered Member
Hello @Erinponte ,

Do your separation orders include information pertaining to disability severance pay?

"When a member is entitled to disability severance pay, separation orders specify this entitlement."
Ref: 3505 DISABILITY SEVERANCE PAY 350501.
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35

Rom
Hello Ron,

Yes they do and it is also listed on my DD214. Thanks for responding.

Erin
 

cj90

PEB Forum Regular Member
Registered Member
I’m currently going through the MEB process, already knocking out my QTC exams, almost done with SFLTAP too. The VA and my PEBLO are certain I will only get severance pay from the army and not medically retired. My question is how do they figure out that last year youre currently serving? Do they give you credit for the next year or is it only that last full year you completed? For instance, my projected final out is September of 2021 which be 11 years and 7 months. Will I be bumped up
To 12 years for the (2 x base pay x years of service) equation? Or will they use 11 years?
 

Erinponte

PEB Forum Regular Member
Registered Member
I’m currently going through the MEB process, already knocking out my QTC exams, almost done with SFLTAP too. The VA and my PEBLO are certain I will only get severance pay from the army and not medically retired. My question is how do they figure out that last year youre currently serving? Do they give you credit for the next year or is it only that last full year you completed? For instance, my projected final out is September of 2021 which be 11 years and 7 months. Will I be bumped up
To 12 years for the (2 x base pay x years of service) equation? Or will they use 11 years?
So for me, they literally calculated it up to the exact day and month. Say you’re at 11 years 6 months 2 days. They calculated it at that. The lawyer I had told me they would bum it up to the next year depending how far into that year you were but mine was literally calculated to the day. Hope that helps
 

cj90

PEB Forum Regular Member
Registered Member
So for me, they literally calculated it up to the exact day and month. Say you’re at 11 years 6 months 2 days. They calculated it at that. The lawyer I had told me they would bum it up to the next year depending how far into that year you were but mine was literally calculated to the day. Hope that helps
Absolutely helps. I just wanted to get some information before they came back with their findings and sent me to JAG. Thank you.
 

Erinponte

PEB Forum Regular Member
Registered Member
Hello, I just finished my last day of Separation leave yesterday and had two questions.
1. How soon do you normally receive your severance pay? I didn’t owe any debts and took all of my leave.
2. I was told by a lawyer on post that since the DoD side rated me 0%, I wouldn’t have to pay the severance back, has anyone gone through this? I have a friend in finance who says it’s true but I never trust the Army. Thanks in advance!
Update - Today I called and my severance check has posted as of 12 March. Now I am waiting for it to be released. I’m not sure how long that takes. Anyone know how long it takes to release? Thanks!
 
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