VA Effective Date vs Payment Start Date

[AaronB]

Struggling to understand what the VA is telling me.

My VA Letter is dated 11 March 2022. The effective date of my claim and effective date dependents were added to my award is 1 March 2022.

My VA letter says my payment start date is 1 April 2022 and over the phone I was told my first VA payment would be issued 1 May 2022. Why is my payment start date different than my effective date? Aren't they supposed to be the same thing?

Does this mean I will not receive any disability compensation for the month of March? If yes, this doesn't make sense.

Am I wrong for thinking I should have received a disability payment for the month of March on 1 April?

VA.gov says:

"Disability compensation effective dates

When we decide we’ll pay a disability benefit based on a claim, we assign an effective date to that claim.
The effective date is the day you can start getting your disability benefits. This varies with the type of benefit you’re applying for and the nature of your claim." Disability compensation effective dates | Veterans Affairs

 

[SlytherinDMG]

Struggling to understand what the VA is telling me.

My VA Letter is dated 11 March 2022. The effective date of my claim and effective date dependents were added to my award is 1 March 2022.

My VA letter says my payment start date is 1 April 2022 and over the phone I was told my first VA payment would be issued 1 May 2022. Why is my payment start date different than my effective date? Aren't they supposed to be the same thing?

Does this mean I will not receive any disability compensation for the month of March? If yes, this doesn't make sense.

Am I wrong for thinking I should have received a disability payment for the month of March on 1 April?

VA.gov says:

"Disability compensation effective dates

When we decide we’ll pay a disability benefit based on a claim, we assign an effective date to that claim.
The effective date is the day you can start getting your disability benefits. This varies with the type of benefit you’re applying for and the nature of your claim." Disability compensation effective dates | Veterans Affairs

When was your last day in?

 

[AaronB]

28 Feb

 

[SlytherinDMG]

28 Feb

Yeah you should def receive first payment on 1APR since VA pays a month behind.

 

[AaronB]

Yeah you should def receive first payment on 1APR since VA pays a month behind.

That's definitely not what I'm being told when I call the VA. I didn't receive a payment on 1 April. The last VA person I spoke with said I didn't rate benefits for March because they didn't close my claim until 10 March. And said my payment start date is 1 April so I will get paid for the month of April on/about 1 May.

 

[SlytherinDMG]

That's definitely not what I'm being told when I call the VA. I didn't receive a payment on 1 April. The last VA person I spoke with said I didn't rate benefits for March because they didn't close my claim until 10 March. And said my payment start date is 1 April so I will get paid for the month of April on/about 1 May.

That’s some bs. They better back pay all the way to 1March

 

[AaronB]

That’s some bs. They better back pay all the way to 1March

I agree. I know the first few months can be funny with VA pay and that it takes time for CRDP to be worked out but being told I don't rate any benefits for March doesn't sound right.

 

[SlytherinDMG]

I agree. I know the first few months can be funny with VA pay and that it takes time for CRDP to be worked out but being told I don't rate any benefits for March doesn't sound right.

Agreed, you are entitled from your first day off active duty.

 

[RonG]

Unfortunately, much of the info above is in error.

The effective date for VA compensation is not the date the first day of payment.

VA compensation begins to accrue the first day of the month following the month having the effective date.

Your first day of VA comp accrual is 1 April and it will be paid on/about 1 May.

Here is one example:
My last day on active duty: 31 July 91
My first day in a retired status: 1 August 91
If my VA comp was approved 1 August, then the first month of accrual would be 1 September 91 and paid on/about 1 Oct.

VA comp is not paid "in arrears"; it is paid after it accrues.

Ron
cc: @SlytherinDMG @AaronB

 

[SlytherinDMG]

Reach out to your MSC but here’s how the VA letter breaks it down.

 

[RonG]

@SlytherinDMG

Perfect.

Item three is as I explained, although using different wording.

Here is another example, higher rate of VA comp after retirement.
1. Filed an Intent to Submit 24 Dec 2015
2. Approved at 100% effective 24 Dec 2015
3. The higher rate begin to accrue on 1 January 2016
4. Paid the higher rate (for 1-31 Jan) on 1 Feb 2016.

Actually, there was retro VA comp due in this case, but in real time, it would have been done as explained. I have gone up and down with my VA percentages for 25 years.

Ron

 

[AaronB]

Unfortunately, much of the info above is in error.

The effective date for VA compensation is not the date the first day of payment.

VA compensation begins to accrue the first day of the month following the month having the effective date.

Your first day of VA comp accrual is 1 April and it will be paid on/about 1 May.

Here is one example:
My last day on active duty: 31 July 91
My first day in a retired status: 1 August 91
If my VA como was approved 1 August, then the first month of accrual would be 1 September 91 and paid on/about 1 Oct.

VA comp is not paid "in arrears"; it is paid after it accrues.

Ron
cc: @SlytherinDMG @AaronB

Call me slow, but I don't understand how this is correct. What is the purpose of the effective date if my benefits don't begin to acrue until the following month? Why would I not accrue benefit for the month of March?

 

[RonG]

Call me slow, but I don't understand how this is correct. What is the purpose of the effective date if my benefits don't begin to acrue until the following month? Why would I not accrue benefit for the month of March?

You are not slow, and you are not the first person who has made that remark. There is a law that prescribed the procedure I mentioned. Why Congress wrote it that way is unknown to me. I will locate it and post it here. It is not new.

Ron

 

[AaronB]

What policy is this in:

"VA compensation begins to accrue the first day of the month following the month having the effective date."

I'm genuinely confused. The VA makes a point of explaining the significance of the effective date of a claim (and gives examples on their website) because the effective date impacts when a veteran becomes eligible for benefits. What does eligible for benefits mean if that isnt the day I begin accruing benefits?

There is zero information on VA.gov (or I can't find it) that talks about accrual date being the month following the month having the effective date.

 

[RonG]

It is not a policy; it is part of a law.​

​

38 CFR § 3.31 - Commencement of the period of payment.​

(b) General rule of applicability. The provisions of this section apply to all original, supplemental, or increased awards unless such awards provide only for continuity of entitlement with no increase in rate of payment.

38 CFR 3.31 LINK <---

Ron

 

[AaronB]

It is not a policy; it is part of a law.​

​

38 CFR § 3.31 - Commencement of the period of payment.​

(b) General rule of applicability. The provisions of this section apply to all original, supplemental, or increased awards unless such awards provide only for continuity of entitlement with no increase in rate of payment.

38 CFR 3.31 LINK <---

Ron

Thank you for sharing. This doesn't mesh with what the VA has on their website. Very frustrating and confusing.

 

[RonG]

Thank you for sharing. This doesn't mesh with what the VA has on their website. Very frustrating and confusing.

I agree; however, a law takes precedence over a regulation or manual.

The VA is going to pay you in accordance with current law.

Ron

 

[RonG]

M21-1, Part V, Subpart ii, Chapter 4, Section A - Effective Dates​

V.ii.4.A.1.f. Effective Date of Entitlement Versus Effective Date of Payment​

Under 38 CFR 3.31, VA may not pay monetary benefits based on an initial or supplemental award of compensation, pension, or Dependency and Indemnity Compensation (DIC) for any period prior to the first day of the calendar month following the month in which the beneficiary became entitled to the benefit. Reference: For more information on effective date of payment and exceptions to payment under 38 CFR 3.31, see M21-1, Part VI, Subpart i, 1.A.2.b.

---

Ron

 

[AaronB]

I agree; however, a law takes precedence over a regulation of manual.

The VA is going to pay you in accordance with current law.

Ron

I appreciate the explanation.

Nobody I spoke with from the VA was able to explain this beyond "this is how we do it" which was incredibly frustrating because the information on their webpage contradicts what you just explained to me.

Would be nice if the VA just named the references you shared and said something like

"VA may not pay monetary benefits based on an initial or supplemental award of compensation ... for any period prior to the first day of the calendar month following the month in which the beneficiary became entitled to the benefit."

Literally anything is better than being told I know what you're reading is confusing but we don't do it that way.

Also, this law should be changed.

 

[AaronB]

M21-1, Part V, Subpart ii, Chapter 4, Section A - Effective Dates​

V.ii.4.A.1.f. Effective Date of Entitlement Versus Effective Date of Payment​

Under 38 CFR 3.31, VA may not pay monetary benefits based on an initial or supplemental award of compensation, pension, or Dependency and Indemnity Compensation (DIC) for any period prior to the first day of the calendar month following the month in which the beneficiary became entitled to the benefit. Reference: For more information on effective date of payment and exceptions to payment under 38 CFR 3.31, see M21-1, Part VI, Subpart i, 1.A.2.b.

---

Ron

I sincerely appreciate you pointing me to a resource that clearly explains the answer to my question.