script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js">

VA Disability pay vs. Retired Military Pay

Five10

New Member
Registered Member
Very, very new to this board with apologies in advance for having no idea how these forums work! OK, for the quandary...

Retired from USAF after 22.5 years of AD in Oct 2020, and was found to have conditions resulting in 100% VA disability pay. How do I find out what my monthly pay will be? Meaning, do I only get my retired military pay, or do I get only the VA Disability pay (whichever is greater), or do I get both?

When I attended the transition assistance program briefings, all us attendees were under the impression that at there 100% rating, you would get both. Now the VA tells me I have to choose. Anyone else have this situation come up?

Thank you for any responses!
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Very, very new to this board with apologies in advance for having no idea how these forums work! OK, for the quandary...

Retired from USAF after 22.5 years of AD in Oct 2020, and was found to have conditions resulting in 100% VA disability pay. How do I find out what my monthly pay will be? Meaning, do I only get my retired military pay, or do I get only the VA Disability pay (whichever is greater), or do I get both?

When I attended the transition assistance program briefings, all us attendees were under the impression that at there 100% rating, you would get both. Now the VA tells me I have to choose. Anyone else have this situation come up?

Thank you for any responses!
Hello @Five10 ,

In order to receive VA compensation, one has to agree to waive their retired pay dollar for dollar in the amount of VA compensation received.
Regular retirements, such as what you have, qualify one for CRDP if their VA rating is 50% or more. CRDP allows for the current payment of retired pay and VA compensation.

Anyone have this situation come up? Thousands every year.

Your case.
You will receive all your DoD retired pay (some of which might be considered CRDP)
and
All your VA compensation (if you agree to waive retired pay as I stated). This has the amount for the approved percentage <----LINK


Ron

p,s,
Recommend always choose VA compensation. I have never seen a person lose money by choosing VA compensation. I have seen many over the years who did lose money by declining VA compensation.
 
Last edited:

Five10

New Member
Registered Member
Ron--

Thank you so much for your timely response; I appreciate the time you took in replying. Regarding taking VA compensation over retired pay -- totally agree, as VA pay is not taxed, if I understand correctly.

@Five10
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Ron--

Thank you so much for your timely response; I appreciate the time you took in replying. Regarding taking VA compensation over retired pay -- totally agree, as VA pay is not taxed, if I understand correctly.

@Five10
That is correct. Even in cases of disability retirement where most do not qualify for CRDP under current law, accepting VA compensation is the best option in my opinion.
EVEN, if the DoD retired pay is more than the VA comp. In those cases, the retiree gets to keep any retired pay in excess of the VA comp amount.

That provision applies to regular Army retirements too, but the combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay.

Ron
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
@Five10

This is an addendum to the previous information provided.

The election to receive VA comp is made on the VA claim form. Block 26 should NOT be checked, (If you do want VA comp.)

--------
VA Form 526EZ Sep 2019

IMPORTANT INFORMATION ON MILITARY RETIRED PAY (Includes all Uniformed Services Retired Pay): Submission of this application constitutes a waiver of military retired pay in an amount equal to VA compensation awarded, if you are entitled to both benefits. Your retired pay may be reduced by the amount of VA compensation awarded. Receipt of the full amount of military retired pay and VA compensation at the same time may result in an overpayment, which maybe subject to collection. If you qualify for concurrent receipt of VA compensation and military retired pay, the waiver of retired pay will not apply. If you do not want to waive any retired pay to receive VA compensation, you should check the box in Item 26. Note that if you check the box in Item 26, you will not receive VA compensation, if granted. If you are currently in receipt of VA compensation and you check the box in Item 26, your VA compensation will be terminated, if you are also eligible for military retired pay. IMPORTANT: VA COMPENSATION PAY IS NON-TAXABLE. THEREFORE, VA COMPENSATION PAY MAY BE THE GREATER BENEFIT.
-------

If one wants to receive VA compensation, Block 26 should NOT be checked.

Over several years, I have seen many cases where a veteran inadvertently checked block 26 even though their intention was to receive VA comp.


Ron
 
Top