You're welcome. I am amazed that the VA customer service folks could not provide the background for "this is the way we do it."
Good luck,
Ron
VA Effective Date vs Payment Start Date
- Thread starter AaronB
- Start date
Good luck,
Ron
I know this thread is almost two years old, but it's still helping people. Thanks to both you and AaronB for having the conversation. I'm in the exact same boat.
I've researched, studied, and prepared for retirement and my VA claim for well over a year. What an overwhelming transition! But in all that time, all I ever heard was that VA pays a month behind. File a BDD and your claim will be effective as of your retirement date.
Well, I just retired, last day was Nov 30th, retirement effective date Dec 1, 2023. I filed a BDD claim months ago and received a decision Jan 8th stating my effective date was Dec 1, and Payment Start Date was Jan 1. The letter said if I'm due a payment, I would receive it in 7-10 days. It's been three weeks so I decided to call and just check the status.
The woman I spoke with was like talking to a recording on repeat. Just like Aaron said, all she kept saying was, "This is the way the VA pays benefits."
I said I didn't understand, and if I was "eligible for the entire month of December, why wouldn't I receive compensation for that month?" She said my eligibility date isn't the same as my payment start date. And payments are sent the 1st of the month following your payment start date. I'm like, cool...basically on repeat, with no real explanation. She never provided a reference or any further explanation. She kept repeating the same thing, then saying, "Is there anything else I can help you with today?" I'm like, anything ELSE? Nope, just help me with the thing you haven't helped with yet.
I think the best explanation is not to look at active duty retirements. Since we (always?) have to retire on the last day of the month, our effective date is the 1st of the following month. But others that file claims might submit well over a year after separation/retirement, and could be any day of the month. So if someone submits a claim, or intent to file, on say, January 18th, once they are awarded a percentage it would be effective Jan 18th, payment start date (**accrual** start date) would be Feb 1, and they should receive their first payment Mar 1.
To me, it makes a little more sense in that context. Basically just anyone with an effective date on the 1st of the month kind of gets screwed out of a whole month. Which...whatever. It is what it is. I just wish in all my prep and research I would have seen that somewhere, or that someone would have spelled that out better. Or that the VA Compensation help desk people would have a better way to explain it and maybe provide reference to the law.
Anyway, thanks again. Not thrilled with the answer, but at least I have a better understanding of it.
38 CFR § 3.31 - Commencement of the period of payment.
This is being completely misread and misinterpreted. Nowhere does it say benefits can't be accrued. It says you can't get paid until the 1st of the month following the start of entitlement. Apparently, someone at the VA, some lawyer, or some politician misinterpreted this or just isn't very good at English. This is just another example of our politicians not caring enough to fight to make sure our veterans are properly being taken care of.
Hello,
What the law clearly states is that one cannot be paid for any PERIOD prior to the first day of the calendar month following the month in which the award becomes effective.
Example: VA comp is effective 15 March 2024, benefit begins to accrue on 1 April 2024 and the first payment is generated on/ about 1 May 2024 for 1-30 April 2024.
——-
§ 3.31 Commencement of the period of payment.
Regardless of VA regulations concerning effective dates of awards, and except as provided in paragraph (c) of this section, payment of monetary benefits based on original, supplemental, or increased awards of compensation, pension, dependency and indemnity compensation, or a monetary allowance under 38 U.S.C. chapter 18 for an individual who is a child of a Vietnam veteran or a child of a veteran with covered service in Korea may not be made for any period prior to the first day of the calendar month following the month in which the award became effective. However, beneficiaries will be deemed to be in receipt of monetary benefits during the period between the effective date of the award and the date payment commences for the purpose of all laws administered by the Department of Veterans Affairs except that nothing in this section will be construed as preventing the receipt of retired or retirement pay prior to the effective date of waiver of such pay in accordance with 38 U.S.C. 5305.
—-
Ron
cc: @Jason Perry
What the law clearly states is that one cannot be paid for any PERIOD prior to the first day of the calendar month following the month in which the award becomes effective.
Example: VA comp is effective 15 March 2024, benefit begins to accrue on 1 April 2024 and the first payment is generated on/ about 1 May 2024 for 1-30 April 2024.
——-
§ 3.31 Commencement of the period of payment.
Regardless of VA regulations concerning effective dates of awards, and except as provided in paragraph (c) of this section, payment of monetary benefits based on original, supplemental, or increased awards of compensation, pension, dependency and indemnity compensation, or a monetary allowance under 38 U.S.C. chapter 18 for an individual who is a child of a Vietnam veteran or a child of a veteran with covered service in Korea may not be made for any period prior to the first day of the calendar month following the month in which the award became effective. However, beneficiaries will be deemed to be in receipt of monetary benefits during the period between the effective date of the award and the date payment commences for the purpose of all laws administered by the Department of Veterans Affairs except that nothing in this section will be construed as preventing the receipt of retired or retirement pay prior to the effective date of waiver of such pay in accordance with 38 U.S.C. 5305.
—-
Ron
cc: @Jason Perry
@RonG It’s all about how you say it and which word you emphasize. It doesn’t say you can’t get paid for that period. It says you can’t receive payment before the 1st of the next month, as that is when benefits are paid. Some common sense and better English should apply here. Effective means being in effect, thus your benefits and pay are in effect. So, you should get paid starting your effective date and receive it the 1st of the next month. Just because you write your own example to how you interpret it doesn’t make it right. It is clearly being done wrong.
Hello @joenatehunt ,
Ref: “Just because you write your own example to how you interpret it doesn’t make it right. It is clearly being done wrong.”
My interpretation is in agreement with multiple VA raters I know on another board and the the VA itself.
Recommend you share your unique interpretation with your elected representatives.
Good luck,
Ron
cc: @Jason Perry
Ref: “Just because you write your own example to how you interpret it doesn’t make it right. It is clearly being done wrong.”
My interpretation is in agreement with multiple VA raters I know on another board and the the VA itself.
Recommend you share your unique interpretation with your elected representatives.
Good luck,
Ron
cc: @Jason Perry
"may not be made for any period"
You can't make a payment for that period.
I don't know how much more clear it could be.
Aaron G.
The VA website is correct. The effective date and payment start date are two different dates. They can't be in the same month. The CFRs and M21-1 should follow provisions as stated in the law. If not, you can appeal or fight in court. The M21-1 is not a federal regulation; therefore, VA sometimes overstep its boundaries and limit Veterans compensation.
For example if a Veteran files a claim June 1st, the effective date can be June 1st, but the payment start date will be July 1st with a payout date of August 1st. If the same Veteran had filed for benefits one day earlier, May 31st, the effective date can be May31st with a payment start date of June 1st and a payout date July 1st. This is why it is very important to file at the end of the month versus the 1st of the month because you can lose a month of benefits. Here is the law. Read 38 USC 5111 LINK below which covers payment start dates. You can google 38 USC 5110 which covers effective dates. You will notice the different dates.You can easily research the law at the Office of the Law Revision Counsel (OLRC) or Cornell Law. The OLRC updates laws faster than most sites because that is their full time job and responsibility.
The VA website is correct. The effective date and payment start date are two different dates. They can't be in the same month. The CFRs and M21-1 should follow provisions as stated in the law. If not, you can appeal or fight in court. The M21-1 is not a federal regulation; therefore, VA sometimes overstep its boundaries and limit Veterans compensation.
For example if a Veteran files a claim June 1st, the effective date can be June 1st, but the payment start date will be July 1st with a payout date of August 1st. If the same Veteran had filed for benefits one day earlier, May 31st, the effective date can be May31st with a payment start date of June 1st and a payout date July 1st. This is why it is very important to file at the end of the month versus the 1st of the month because you can lose a month of benefits. Here is the law. Read 38 USC 5111 LINK below which covers payment start dates. You can google 38 USC 5110 which covers effective dates. You will notice the different dates.You can easily research the law at the Office of the Law Revision Counsel (OLRC) or Cornell Law. The OLRC updates laws faster than most sites because that is their full time job and responsibility.
Hey Ron,
Does this law apply to being medically retired as well?
My first day out after being medically retired was September 18th. So does that mean I’ll get my first paycheck November 1st or December 1st?
Mej 9023
Please read 38 USC 5111
If your injury or sickness is catastrophic, you could have a case for the effective date and payment start date being the same. Most service members do not fall under this category. November 1st will be your first payment for the month of October.
Please read 38 USC 5111
If your injury or sickness is catastrophic, you could have a case for the effective date and payment start date being the same. Most service members do not fall under this category. November 1st will be your first payment for the month of October.
Basically there is no proration for VA benefits. The first full months count. So if September 18th is the last day in then October is the first whole month you will be a veteran. Since payment is in the arrears your first payment should be November 1st. I know I am repeating @RonG but sometimes it helps to get the same answer slightly worded by 2 people
The law is very clear as written. The 38 CFR establishes the payment cycle. If the VA has applied the 38 CFR 3.400 and determined your eligibility date, then you can assume that they also apply the 38 CFR 3.31 to your commencement of pay start date in your letter. So if your effective day is 1 March 2025 and you begin to accrue pay on that day, you cannot be paid during the month of March because the pay cycle will start not earlier than the 1st day of the following month. So you should receive first payment on the date in your letter as the law has already been applied. However, current "interpretation" is that you start to accrue pay on 1 April ,which is counter to the 2nd portion of the law stating the effective date of disability is the start of earning (accruing) pay. The commencement (or pay start, meaning you get paid) is the date on your letter, commencement is the action of paying you. They are interpreting a law that has already been applied to your case in your disability letter. There is not an extra zero month. Not sure why we need to be sparky and tell Veterans to get a lawyer to get the benefit they earned.
The second half of 38 CFR S. 3.31 would seem to clarify the confusion on this issue:
"However, beneficiaries will be deemed to be in receipt of monetary benefits during the period between the effective date of the award and the date payment commences."
So as others have pointed out, even if you can't be paid UNTIL the clock starts subsequent to the payment start date, you are eventually entitled to the accrual of benefits which took place between your effective date and your payment start date.
I agree that the first sentence is certainly poorly worded, which is probably why they included the subsequent one. You can't read the first one in isolation.
The VA is definitely misinterpreting the law here. I am contacting my rep about this and will let you know what happens.
Ironically, the VA's own website says, "The effective date is the day you can start getting your disability benefits." Apparently not...
"However, beneficiaries will be deemed to be in receipt of monetary benefits during the period between the effective date of the award and the date payment commences."
So as others have pointed out, even if you can't be paid UNTIL the clock starts subsequent to the payment start date, you are eventually entitled to the accrual of benefits which took place between your effective date and your payment start date.
I agree that the first sentence is certainly poorly worded, which is probably why they included the subsequent one. You can't read the first one in isolation.
The VA is definitely misinterpreting the law here. I am contacting my rep about this and will let you know what happens.
Ironically, the VA's own website says, "The effective date is the day you can start getting your disability benefits." Apparently not...