Good Morning Everyone! I should be receiving my PEB findings/ updated EAS around my 7 year TIS. I brought this up to my lawyer concerning my severance pay (I am expecting a 10% DOD rating, not fighting for retirement) and she said the way severance pay works is that it is rounded up. So if I hit my 7 year TIS, my severance pay will get calculated at 8 years TIS. Sounds too good to be true. Can anyone confirm if this is true or not?
Severance Pay TIS Question
- Thread starter izzwizz
- Start date
I believe your lawyer is incorrect. From my understanding of the regulation, it is only rounded up if it's more than half the year (7.5). The DoD Financial Management Regulation, DoD 7000.14-R, Volume 7A, Chapter 35, Para 5.3.2 (Disability Severance Pay Computation Years of Service) states the following:
The member’s separation orders will specify the total combined years of active service and inactive-duty points to be counted in computing severance pay. Round this total to the nearest whole year, with 6 months or more rounded up.
Sadly, it doesn't really matter how much your severance pay is because every dollar will be recouped from your VA pay.
The member’s separation orders will specify the total combined years of active service and inactive-duty points to be counted in computing severance pay. Round this total to the nearest whole year, with 6 months or more rounded up.
Sadly, it doesn't really matter how much your severance pay is because every dollar will be recouped from your VA pay.
Severance pay has exceptions to the VA recoupment for simulated combat and combat zones. Additionally, if you remove your DOD rating from your purposed VA disability and are still 100%, you also don’t have to worry about recoupment from the VA since you are not getting dual payments for the same thing.
Additionally, you can submit a ticket to DFAs and make your severance check tax-free. Why does this, you ask? In the worst-case scenario, the VA recoups your money because you don’t meet one of the caveats. It takes years for them to recoup all of the money at 0% interest, and you can invest your money in a high-yield savings account and guaranteed to make money.
Search “dfas” on this official air force website and it will explain the process. A friend just did this a few weeks back.
www.myairforcebenefits.us.af.mil
Search “dfas” on this official air force website and it will explain the process. A friend just did this a few weeks back.
DoD Disability Severance Pay
The Secretary of the Air Force may separate, versus retire, a Service member who is found physically unfit to perform their duties due to a disability.