Back Pay Eligible?

jessylynn

PEB Forum Veteran
Registered Member
#1
I retired January 30th with 40% DoD and 80% proposed from the VA. The VA finally approved my ratings and sent the notification out yesterday. However I am a little confused. In speaking with the VA today they said my ‘pay’ (unsure if they mean backpay or monthly pay) would be held possibly for months so they could deconflict with DFAS regarding my retirement. The guy couldn’t give me any more information and I get that because I was retired the VA and DFAS are going to need to communicate but does this mean no back pay until that’s done or no pay at all? Furthermore should I expect backpay or does that not happen because of my retirement? I got nothing in February and a retirement check first of March. This is all just very confusing.
 

chaplaincharlie

PEB Forum Veteran
Registered Member
#2
If your retired on January 30th; you are eligible for VA pay in February but will not see that check until March+. If you are a 20+ year retiree DFAS will examine what you have been paid vice what you should have been paid.
 

RonG

PEB Forum Veteran
Registered Member
#3
Re: " I got nothing in February and a retirement check first of March."

I agree with chaplaincharlie.

VA Compensation and DFAS retired pay are disbursed after they accrue. A payment received on 1 March 2018 would have been for the period 1-28 February 2018.

Your VA award/decision letter you received in the mail should address any retroactive VA comp that might be paid. Within the letter, usually on page one, will be info such as effective date; rate; amount paid; amount withheld. For military retirees, the amounts withheld x number of months involved for each line is the potential VA retro.

Retro VA compensation for retirees usually requires an audit by DFAS to ensure that both the VA and DFAS are making the correct payments. I have experienced that reconciliation several times.
 

Jayd31313

Registered Member
#4
On an average, how long does it take once the audit is complete by DFAS (their portion of the funds have been deposited into my account) for the VA to process their portion and release the RETRO pay funds?
 

RonG

PEB Forum Veteran
Registered Member
#5
On an average, how long does it take once the audit is complete by DFAS (their portion of the funds have been deposited into my account) for the VA to process their portion and release the RETRO pay funds?
The processing times vary per info I see elsewhere. The DFAS sends audit results to the VA only once a month and that is around the 5th. If the audit misses the ~5th, then it would be submitted to the VA the next month on the 5th.

Upon receipt of the audit, the VA usually pays the retiree retro VA comp within a range of 2 weeks to 2 months. The processing times vary by VARO.

Ron
Note: It has become better over the years. Some of my wait times:
12 months
24 months
30 months (this one was the fault of DFAS)
 

Jayd31313

Registered Member
#6
Good to know info......thanks. I've been told via DFAS that my paperwork (as of the beginning of this month) is now in the hands of the VA. Keeping my fingers crossed.
 
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