Severance pay question.

Tomcat.USN said:
You are correct; your NOT able to refuse severance pay. There are other routes you can take though. When you receive your severance paycheck dont spend it. Take the money from the severance and give it back, that way you can collect your full VA percentage every month. Thats what I plan on doing. Also how it works is you have 2 options.

Lets say you receive 15,000 severance pay and your ratings are:
DOD 10%/VA 50%

You can either pay all 50% of your VA pay back toward the $15,000 until it is completley paid off, or pay 10% back towards the 50%.

If you choose the first option you wont receive a disability paycheck until you have paid off the $15,000.
If you choose the 2nd option you will receive only a 40% paycheck everymonth, then once the severance is paid back you will start collecting your full 50%.

I reccommend not touching the Severance, paying it back towards what you owe, and then option one to pay back whatever else you will owe due to them taking it in taxes.

You find out your severance pay with this formula:

Base Pay X 2 X Number of years in service.


*If you have less than 3 years in service you will put 3 for your years of service. I hope this helps. Good Luck.
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you are NOT able to simply hand the VA a check after you get severance pay. Here's why - When you report that you got a severance to the VA (and you should do so immediately when you get the payment because you can't report that until it happens), they have to do an audit on your account. There is no set timeline for this. How do I know? I have been in an audit for about a year and way past the deadline when it should have been completed. My status has been on "claimed received." It has not budged to "under review," which is the next step.

The result is going to vary from person to person. I have several disabilities that I have filed that got me 90% disability. This severance was for something that I got 10% for by the military, but given 70% from the VA. So as far as I am concerned, I won't be hurting a whole lot whether I spend the severance or not.

So for those of you in a similar situation as I am in, I believe your best bet at this time is to take some of that severance and invest it somewhere in the meantime. Put it about half or so in somewhere where you can make some money while the VA straightens themselves out.
 
galagaman said:
you are NOT able to simply hand the VA a check after you get severance pay. Here's why - When you report that you got a severance to the VA (and you should do so immediately when you get the payment because you can't report that until it happens), they have to do an audit on your account. There is no set timeline for this. How do I know? I have been in an audit for about a year and way past the deadline when it should have been completed. My status has been on "claimed received." It has not budged to "under review," which is the next step.

The result is going to vary from person to person. I have several disabilities that I have filed that got me 90% disability. This severance was for something that I got 10% for by the military, but given 70% from the VA. So as far as I am concerned, I won't be hurting a whole lot whether I spend the severance or not.

So for those of you in a similar situation as I am in, I believe your best bet at this time is to take some of that severance and invest it somewhere in the meantime. Put it about half or so in somewhere where you can make some money while the VA straightens themselves out.
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Ok, so let me ask you this....

The Army rated me 20% for my back and the VA rated me 20% for my back. However, with all of my other conditions my total VA rating is 100%. So I am getting a severance check from the Army for roughly 45,000. So the VA will recoup 20% of my monthly pay until I pay back 45000 dollars? If I take out the 20% for my back from the VA I'm still at 100% with all of my other problems. So then what happens? SO CONFUSED and cannot seem to get a straight answer.
 
jbar2525 said:
Ok, so let me ask you this....

The Army rated me 20% for my back and the VA rated me 20% for my back. However, with all of my other conditions my total VA rating is 100%. So I am getting a severance check from the Army for roughly 45,000. So the VA will recoup 20% of my monthly pay until I pay back 45000 dollars? If I take out the 20% for my back from the VA I'm still at 100% with all of my other problems. So then what happens? SO CONFUSED and cannot seem to get a straight answer.
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Let's just say that you don't have other problems that are rated just yet, and you are at 100% already (pending VA evaluation for your other medical problems). They will recoup the amount they rated you at for your back. In this case, you said the VA also rated you at 20% for it. They key here is what you got rated by the Army - so coincidently, you got the same rating by both, 20%. So if I remember the formula right, you are going to see 20% of your disability pay taken away from your 100% when things are all said and done when they are through auditing you.

I don't know how that all works when you have "other problems" that may still get you at 100%. You're best to speak to a VA rep about that one.
 
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