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 disabling | rates the same disability 30-percent disabling | the amount payable for a disability rated 20-percent disabling. |
50-percent disabling | assigns a temporary 100-percent rating to the same disability under 38 CFR 4.28, 4.29, or 4.30 | the amount payable for a disability rated 50-percent disabling. |
0-percent disabling | assigns a temporary 100-percent rating to the same disability under 38 CFR 4.28, 4.29, or 4.30 | nothing, 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