Who would take VA compensation over DoD?

[Gizzy]

My single question is: yes VA disability is tax free, BUT, if you’re a 100% or 100% P&T and the VA can reevaluate you to decrease your rating, why not take DoD knowing you can never be reduced?

 

[RonG]

My single question is: yes VA disability is tax free, BUT, if you’re a 100% or 100% P&T and the VA can reevaluate you to decrease your rating, why not take DoD knowing you can never be reduced?

Choosing DoD = one receives only the retirement pay and are not eligible for CRSC.

Choosing VA compensation = reduction of retired pay dollar for dollar in the amount of the VA comp. The retiree keeps the residual (left over) retired pay plus all the VA comp. They also might be eligible for CRSC .

From another thread:

Hey all, I am sorry and this might be a dumb question, but I am currently an O4 w/ 14yrs active time. Finished my MEB and pick up my dd214 on Monday and official retirement date is 27 NOV 2024. I was awarded 50% DOD (Permanent) rating and 100% VA (P&T) rating. Most of my DoD ratings were combat coded V1/V3 but not all of them. However, what I am wondering is with my DoD rating against my base pay, its higher than my VA compensation for Married with two kids. So I am not sure if i have to select something, if it’s automatically going to award whichever is higher, or whats going on. Just do not want to miss something if I need to select one before my actual retirement date. Thanks for any information.

Hello @LittleGuy131 ,

It is not an “either or” situation.

In order to receive VA compensation, one has to agree to waive retired pay dollar for dollar in the amount of VA compensation received . You waive only the amount of the VA compensation which might be less than the total retired pay.

The waiver of retired pay is accomplished on the VA compensation application form by NOT checking block 26.

1. Normally, an application for VA compensation is on VA Form 21-526ez and that form contains the BLOCK 26 discussed here.

2. https://www.vba.va.gov/pubs/forms/VBA-21-526EZ-ARE.pdf <—LINK -21-526ez form several pages deep at this link

3. For most people, they DO NOT check block 26 and as a result they DO RECEIVE VA COMP

Ron

Edited to add:
Contemporary CRSC Information--Also See Update at Bottom of this Resource Page <—-CRSC INFORMATION LINK