SEVERANCE PAY

rodsgurl87116

PEB Forum Regular Member
HELLO ALL. I HAVE A QUESTION ON MY SEVERANCE PAY? WHERE DOES THE SEVERANCE PAY COME FROM? IS THERE ANY KIND OF PAPERWORK THAT I HAVE TO FILL OUT TO ENSURE I GET MY SEVERANCE?

THE REASON I ASK IS THAT WHEN I OUTPROCESSED FINANCE I WAS GIVEN AN ESTIMATE OFF OF A CALCULATION DOCUMENT FROM FINANCE. I DON'T THINK THAT THE AIRMAN KNEW WHAT SHE WAS DOING BECAUSE THE WORKSHEET LOOKED TO BE FOR SOMETHING ELSE. I HAVE BEEN IN 9 YEARS, 5 MONTHS, 9 DAYS AT SEPARATION DATE AND SHE SAID THAT I WOULD ONLY GET 21,000. I HAVE BEEN TOLD THAT THE WAY TO CALCULATE IS YEARS IN SERVICE x BASE PAY x 2.

I WANT TO KNOW MORE BACKGROUND ON WHERE IT COMES FORM BECAUSE I AM AFRAID THAT IF MY FINANCE OFFICE IS INPUTTING THIS INFORMATION THAT IT WILL SURELY BE WRONG.

(PLEASE FORGIVE MY CAPS..MY CAPS LOCK KEY IS STUCK. I AM NOT YELLING :) )

CAN ANYONE GIVE ME ADVISE ON THIS ISSUE?

THANKS,
RODSGURL87116
 

Purple

PEB Forum Regular Member
PEB Forum Veteran
rodsgurl87116,

I will attach what I found from the AFPC website (scroll to item # 13 Disability Severance and/or Retirement Pay):

AFPC - Air Force Personnel Center


Severance Pay: The percentage of disability awarded has no bearing on the amount of severance pay you are entitled to receive. Severance pay is computed using years of service and base pay--for those who entered service after 8 September 1980, pay is based on the high 3 average. Severance pay is computed in two ways (1) Members being discharged for non-combat related conditions: multiply years of service (minimum of 3 years and not more than 19 years) times twice the amount of monthly base pay (based on the high 3 average). (2) Members being discharged for combat related conditions: multiply years of service (minimum of 6 years and not more than 19 years) times twice the amount of monthly base pay (based on the high 3 average). Count as a whole year service of six months or more; disregard service of less than 6 months. For each computation, if the member has less than the minimum number of years of service (3 or 6) they will be paid as if they have the minimum years of service (3 or 6).



You could call AFPC at COMM 1(210)565-5000, DSN 665-5000, and toll free # 1(800)616-3775 to inquiry.
 

rodsgurl87116

PEB Forum Regular Member
Purple,

Thanks for the reply. I appreciate the information. I have calculated using that method. I was looking for a calculator that is online but haven't found any that work.

I was told i could ask my PEBLO but unfortunately she is new to the process and doesn't know the answers to any of my questions. Thanks again!

rodsgurl87116
 

brianwl

PEB Forum Regular Member
PEB Forum Veteran
Just remember, don't spend it. You'll need it to live on when the VA finally completes your claim. VA is required by Law to recoup all severance before they start paying out your disability compensation.

Also, you have 3 years from the time you file the income tax form for the severance, ie 2012 in your case to file a 1040x and get back the taxes you paid on the severance that the VA has taken away.
 

rodsgurl87116

PEB Forum Regular Member
thanks for the advice. luckily, i am goign to be an air force dependent for the next 8 years after I get out and have already found a job on base. but i am sure if you are not careful the severance will go fast! :)
 

Purple

PEB Forum Regular Member
PEB Forum Veteran
That's great! Sounds like everything worked out well for you. Good luck with your new job on base. It's awesome that you can get treatment on base for the next eight years as a dependent.
 

14Karat

PEB Forum Regular Member
Hey folks, severance pay is recouped only when it is not combat related or instrumentally war training....i posted this under severance pay.

if it is not combat related it will be recouped....
 

agrist2

PEB Forum Regular Member
Registered Member
:confused: hello to all, I have a question. I received my 20 percent rating from the board today. it only took five months, but whos counting. My question is this, when i signed the paper work to go to the peb it had me down as having 9 years of service. I have 6 plus years of active duty and the rest is reserve time. today when i signed saying i agreed i saw it has 6.85 years of service. Now ive crunched some numbers and thats a lot of money im loosing! so is there any where that says that they count all time served or just active duty time? If all time is not counted then was that time a waste of my time or what? Ive had four back surg in the last year three fusions, i was a duputy before i came in and had planned on doing that when i got out but thats pretty much off the table now. I guess im a little confused I gave those years to my country, and it says well your gimp here is some money now go away. That doesnt seem right! Any thoughts?
 

carnelli53

Moderator
PEB Forum Veteran
Registered Member
Years spent in the Reserve do not count as full active duty years. They "pro-rate" your years in the reserve by a point system - google "converting reserve time to active duty" and you should get a much better explanation than I can give you on how that is computed.

Assuming their calculation is correct, with 6.85 years of service, they will give you 7 years of service for purposes of computing severance pay (base pay x 2 x 7) - they round up. Were your conditions deemed combat-related?

The formula for determining active time from reserve time is primarily intended for those who are attempting to retire after 20 "good" years so they can collect at age 60.
 

NACnomore

PEB Forum Regular Member
PEB Forum Veteran
It's really not money you're going to lose, when you get a VA rating what ever you're disability was that separated you will be recovered. Say for me it's my back, if that's 20% or 30% and everything else is maybe another 40% I'll get a monthly payment from the VA for that OTHER 40%, when they have recouped the severance my monthly payment will go up. I'm getting about 41k for 8 years, so if the back is 20% and say that's $200 a month, it's going to take about 16 years before I see the additional money.

So what ever you think you're losing, you'll just start getting that amount from the VA sooner.
 

geaux4breauxk

Member
Registered Member
Did you guys know that if your state laws permit it, you can get the withheld taxes back? After the VA give you your rating, if it matches or exceeds that of the service branch, you can submit copies of the VA paperwork with you military paperwork and IRS Form 1040X and get the lump sum taxes returned.

But I would rather get my full VA straight away. Does anyone know if you can turn down the monies?

Scott
 

agrist2

PEB Forum Regular Member
Registered Member
I wanted to thank you for getting back so quick. i'm not sure what i,m gonna do my wife is going to school full time and won't graduate until dec of this year. we have five boys, from 2 to 12 years old. i'm the bread winner for now, and thats a lot of money i could be loosing. I was a deputy sheriff while i was in the reserves and left there for AGR, and now i cant do that anymore becouse of my back and neck. So i have no clue what to do to support my family.no it wasn't combat related.I have 6.85 years active duty , well its AGR. and I have 5 years in the reserves. so i may get some money from the VA? Just not the full amount until i pay the severance back is that corect? Thanks again
 

badge4107

PEB Forum Regular Member
PEB Forum Veteran
Agrist

How did you, if you did, end your employment with the county? Are you POST certified. The reason I ask is the "unburned bridge" clause in USERRA.
 

agrist2

PEB Forum Regular Member
Registered Member
I graduated The Indiana Law Enforcement Academy in 2004, and I didn't burn any bridges, but I don't think physically i could do the job. Both my civilian specialist and the military doctor at Wright Pat said that I wouldn't be capable of the demands of Law Enforcement. The range in motion that I've lost is significant. I have a considerable amount of pain even doing minor day to day things. Its sad for my kids, they know that dad can't play with them like he could two years ago.
 

badge4107

PEB Forum Regular Member
PEB Forum Veteran
Protections do exist. The elements of USERRA are quite clear. I invite you to this link, Capt (RET) Sam Wrights' Reserve Officer Association Law Review. This law review item is similar to your situation, without the disability, however there are other protections for service members with an SC disability. I know this forum is mainly for MEB/PEB. But with MEB/PEB many USERRA issues arise. Reserve Officers Association: Law Review 0838
 

agrist2

PEB Forum Regular Member
Registered Member
Thank you, I've looked into it and your right I do fall under this. As much as I want to go back, and thats what I had planned to do. well at least find a department to work for. But with the amount of damage, and the three fusions to my back and neck, I wouldn't be able to perform the job.
 
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