VA Offset and Questions

S

seminole72

PEB Forum Regular Member
PEB Forum Veteran
I am sort of confused on VA offset. With this scenario of a newly retired member of the PDBR what should happen to the disability severance pay?

February 2003 - member is discharged with 10% disability and 49,820 severance pay.

July 2003 - Member is given a total VA rating for all disabilites of 80%.

June 2010 - Member is now retired retroactive to February 2003 as a result of the PDBR findings.

Retired pay is around 717.00 a month but is offset by VA Compensation.

Should the service calculate retired pay from Feb 2003 to June 2010 and then subtract the severance pay that was paid out?

How does the VA offset play in this since the members VA Compensation has always been more than what retired pay would be?

Should the member get their severance pay back that was withheld from the VA now or should the VA continue to deduct it?

(This is not a combat related disability severance pay).

Very confusing to me. Any input is highly and greatly appreciated.
 
Well i am in the same situation. I was told that the severance pay would turn into a out of service debt an that DFAS would collect the debt. At the present time I am paying DFAS directly and the VA is also still collecting it, so i am in a situation right now making double payments, and did a protest to audit with DFAS to see who will be collecting the debt because only one can collect. So if DFAS is going to collect then i was told that VA should refund you your money or put it towards your debt with DFAS. So make sure you have all your paperwork together and get ready for a long process. Don't know how they will handle yours since it has been almost seven years for you.
 
I am curious about this too. My severence pay was combat related and the V.A. didn't recoup a dime and I have recieved my full V.A. disability from day 1. (50%) If I get retirenment from the PDRB, will I get 3 years of back retirement pay?? Or will they withhold my $50,000+ severence pay from my retirement??
 
rangerchuck,

According to the NDAA 2008, if your injuries are combat related and you fall under the date the act went into affect, you shouldn't have to payback the severance pay. As far as permanent retirement, you should get back dated to your discharge date. DFAS awarded me back pay to my discharge date when i got put on the TDRL list and i was almost out a year then later to permanent retirement. i copied and paste a portion of the act, you can do more research when you have time. Research is the key!!!!!

To amend title 10, United States Code, to expand the authorized concurrent receipt of disability severance pay from the Department of Defense and compensation for the same disability under any law administered by the Department of Veterans Affairs to cover all veterans who have a combat-related disability, as defined under section 1413a of such title.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1.. CONCURRENT RECEIPT OF DISABILITY SEVERANCE PAY FROM THE DEPARTMENT OF DEFENSE AND COMPENSATION FOR THE SAME DISABILITY UNDER LAWS ADMINISTERED BY THE DEPARTMENT OF VETERANS AFFAIRS.
(a) No Deduction- Section 1212(d)(2) of title 10, United States Code, is amended by striking ‘disability incurred in line of duty in a combat zone or incurred during performance of duty in combat-related operations as designated by the Secretary of Defense.’ and inserting ‘combat-related disability (as defined in section 1413a of this title).’.
(b) Retroactive Application of Amendment- The amendment made by subsection (a) shall take effect as of January 28, 2008, as if included in section 1646 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat. 472), as enacted.
 
Rangerchuck,

Thanks for your service. Like Don said, you will keep your severance pay and never have to pay it back. What i don't know is, if you're retired will your VA Comp offset your retirement?

If so, how would they go backwards to figure up all the amounts. That is where my dilemma is, i have been retired retro to Feb 3rd, 2003. I haven't seen a dime from the military nor the VA just a bill of 1440.00 for SBP which i am not taking.

I certainly wished the PDBR had addressed all this when they stood up the board.
 
seminole72,

As long as you get 50% or more from the VA you will be eligible to receive both your retirement and VA compensation. If you are not receiving both and you have a 50% or more from the VA you have to file for Concurrent Retirement and Disability Pay (CRDP)

Concurrent Receipt means to receive both military retirement benefits and VA disability compensation, and up until 2004 this was forbidden by law.
 
ALCON,

CRPD is for service members who have served over 20 years and have a service connected disablity, correct? CRSC is for service members who have less than 20 years of AFS and incurred a combat-related injury, right? Here is a link that may be able to answer some of the questions regarding CRPD and CRSC.
https://www.hrc.army.mil/site/CRSC/CRSCvCRDP.html

I have to ask this question again, regarding repayment of severance (combat-related), receipt of retirement pay, and VA compensation pay. I am under the impression that once a service member is considered medically retired the service member has to pay back severance regardless if the injury is combat related or not? There are still too many questions that may not have been thoroughly examined. If someone has any insight on what is right, please let me know, so I can plan accordingly. Thanks in advance.

VR,
Frank
 
I believe your understanding is correct regarding repayment of severance. Prior to the NDAA of 2008, a combat-related injury meant your severance was tax-free, but VA would still recoup the amount from your VA compensation. I was once told that the government viewed severance "as an advance of VA pay". Supposedly if you received a VA award for the injury, the veteran was entitled to have any withheld taxes returned. I sent my request to DFAS for those withholdings six years ago and have never received a response. There are no records of it on my W-2, so I was unable to address the issue with the IRS. I guess I was screwed out of $8k.
 
brnt said:
I believe your understanding is correct regarding repayment of severance. Prior to the NDAA of 2008, a combat-related injury meant your severance was tax-free, but VA would still recoup the amount from your VA compensation. I was once told that the government viewed severance "as an advance of VA pay". Supposedly if you received a VA award for the injury, the veteran was entitled to have any withheld taxes returned. I sent my request to DFAS for those withholdings six years ago and have never received a response. There are no records of it on my W-2, so I was unable to address the issue with the IRS. I guess I was screwed out of $8k.
Click to expand...

Sorry to hear of your dilemma. That is just plain wrong of DFAS. Maybe one of the courts can make a ruling on this issue. It's just not clear and there are so many variables. I don't really know of any attorneys other than Jason who are experienced in this sort of thing. We are in uncharted waters and it feels like we are on our own. It's really depressing and has totally affected my life and service connected disabilites -insominia, anxiety. The VA Community Based Outpatient Clinic where i live is full and i can't even be seen there. I am 80% total. I have to travel 75 miles to the another VA facility. I really don't know what to think, I am just burned out. The USCG has made me feel like a scumbag and even jacked up my retirement orders. I haven't had them fixed because right now, i don't really care, i want to sort out the other stuff first.

V/R

Dale R.
 
Brnt,

Thank you for the response. Did you receive any paperwork form your PEBLO, such as a packet stating how you can recoup your taxes. If not, I have a copy that my PEBLO gave me and if you need it, I can scan it and send it to you along with other information. You should have been paid back for the taxes withheld. Let me know via PM.

Seminole,

DO NOT give up. If you have to travel to another VA facility, keep and document how far and when you are going. This might serve valuable later in your fight. As for the USCG, they can only make you feel that way. You know that what they claim is not true and that you will have to continue to fight for what is yours, do it. Who are they? Anyone else in your situation would do the same thing. Keep your head up, you are not alone. Put your issues into priority and knock them out. You'll get it. Good luck.

VR,
Frank
 
Thanks Franky for the encouragement.

I wonder, it is possible to request an audit of your retired pay account with your branch of service?
 
Is the USCG a member of DFAS? If so, you can inquire with DFAS through MYPAY. Good luck.

Frank,
 
franky said:
Brnt,

Thank you for the response. Did you receive any paperwork form your PEBLO, such as a packet stating how you can recoup your taxes. If not, I have a copy that my PEBLO gave me and if you need it, I can scan it and send it to you along with other information. You should have been paid back for the taxes withheld. Let me know via PM.

Seminole,

DO NOT give up. If you have to travel to another VA facility, keep and document how far and when you are going. This might serve valuable later in your fight. As for the USCG, they can only make you feel that way. You know that what they claim is not true and that you will have to continue to fight for what is yours, do it. Who are they? Anyone else in your situation would do the same thing. Keep your head up, you are not alone. Put your issues into priority and knock them out. You'll get it. Good luck.

VR,
Frank
Click to expand...

Have you gone to the travel pay department of the VA facility? I know that they do pay for mileage but I believe you have to actaully go ask they about when you are there for your appointment. They pay for anything over 40 or 50 miles and according to my husband it was cash on the spot. He said he went to the cashier if that helps any. Not sure it is going to cover any of your prior appointments but you can always ask them.
 
The VA should compensate for travel if service connected and only to closest VA that offer that treatment. A claim is good for 30 days at the travel office of your local VA. If they dont have a travel pay office ask to fill out travel pay form when you check out of your appt. and they will mail to you.
 
I received a letter in the mail today from the VA about my request for a Decision Review Officer, I have to now fill it out.

I assume I should state that, I am retired dated to 2003 per the PDBR so the "discharge with severance pay" has been superseded by this fact and I want my severance pay back?

That it has now become lost compensation wrongfully withheld due to the retirement action?

Hopefully i will get something satisfactory as in, my money back! :cool:
 
You must log in or register to reply here.
Top