20% DoD/100% VA, should I appeal? (100k severance pay)

Just got my ratings and I am at 20% DoD/100% VA. My severance pay will be around 95-100k and there should be no recoupment as I would still be 100% VA without my 20% DoD condition(if I understand this correctly?). I have a family of 4 (two kids under age 2) so I am trying to make the best decision when it comes to deciding whether to appeal with the PEB to add an additional disqualfying condition or not.

As far as I see, the big difference between 20% and 30%+ would be that I would get tricare instead of ChampVA, and I would miss out on 95-100k (which is a significant $ amount long-term as I would invest all of this into index funds). Does it make sense for me to appeal, is tricare for life that much more worth it than ChampVA that I should give up 100k? Any help would be greatly apperciated as I have to respond to my legal team tomorrow. Thank you!

 

[RonG]

Hello @bragg2022


Recoupment is required ONLY when the DoD and the VA BOTH provide a rating or ratings for the same disability or disabilities. This explains the rate of collection/recoupment.


From VA Regulation M21-1 :

III.v.4.B.3.b. General Policies Regarding Withholdings to Recoup Disability Severance Pay

Generally, if a Veteran received disability severance pay, VA must withhold from his/her monthly compensation an amount equal to the monthly compensation payable for the disability(ies) for which the Veteran received disability severance pay. VA continues to withhold this amount until it has recouped the amount specified in M21-1, Part III, Subpart v, 4.B.2.d. Important: The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies). If a Veteran has multiple, severance-pay disabilities, each rated 0-percent disabling, and VA assigns a 10-percent disability rating to them under 38 CFR 3.324, no withholding is necessary for these disabilities until VA assigns a compensable rating to one or more of them, individually. Withhold the additional benefits payable because of application of the bilateral factor if the initial, compensable rating included application of the bilateral factor, and entitlement to the bilateral factor was based exclusively on severance-pay disabilities.

Ron

added:
The VA is required by law to withhold disability compensation payments for servicemembers who received a disability severance payment when they separated from the military (Chapter 61), if the VA disability compensation is for the same disability. This is to prevent a veteran from receiving duplicate benefits.

Exception: The VA will not deduct compensation pay if the military disability severance pay was received for disabilities incurred in line of duty in a combat zone or incurred during performance of duty in combat-related operations as designated by the Department of Defense (DoD).

 

[RonG]

EXCERPT​

​

10 U.S. Code § 1212 - Disability severance pay​

(d)(1)The amount of disability severance pay received under this section shall be deducted from any compensation for the same disability to which the former member of the armed forces or his dependents become entitled under any law administered by the Department of Veterans Affairs.(2)No deduction may be made under paragraph (1) in the case of disability severance pay received by a member for a 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.(3)No deduction may be made under paragraph (1) from any death compensation to which a member’s dependents become entitled after the member’s death.

—
Ron

 

[PicoBaloney]

Just got my ratings and I am at 20% DoD/100% VA. My severance pay will be around 95-100k and there should be no recoupment as I would still be 100% VA without my 20% DoD condition(if I understand this correctly?). I have a family of 4 (two kids under age 2) so I am trying to make the best decision when it comes to deciding whether to appeal with the PEB to add an additional disqualfying condition or not.

As far as I see, the big difference between 20% and 30%+ would be that I would get tricare instead of ChampVA, and I would miss out on 95-100k (which is a significant $ amount long-term as I would invest all of this into index funds). Does it make sense for me to appeal, is tricare for life that much more worth it than ChampVA that I should give up 100k? Any help would be greatly apperciated as I have to respond to my legal team tomorrow. Thank you!

What’d you decide and why? I’m in similar boat

 

[zx6_1985]

What’d you decide and why? I’m in similar boat

What did you find out? I am in the same vote. 100 VA/20 DOD. I'm sure I will have to repay not being combat related (Still 100 even removing referred condition). I just don't know how it'll be recouped. I keep getting told it'll be the 100 rate minus the 20% monthly rate until it's recouped. Ex. $4200-$338. Any help is appreciated, thanks!