Confused about Receiving both VA Disability & Medical Retirement

Chief Brumfield

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Registered Member
Anthony,
The only way you would receive both VA pay and Military retirement are if you have 20+ years in, eligible for retirement under TERA, or injuries are combat related. You mentioned the injuries not being sustained in a combat zone. It sounds likely you will not be entitled to any type of concurrent receipt. Therefore, you would receive the higher of the two; receive VA or DoD. DFAS will automatically pay you the higher of the two. Keep in mind you need to do a dependency claim with the VA for your family members.

If you are unemployable file for Social Security(SSDI) for both you and your children. This should bring in a large extra chunk of change. Also, you can apply for TDIU through the VA to be compensated at the 100% level even if rated lower.
So does the VA rating percent bring down the taxes from the medical retirement?
 

RonG

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So does the VA rating percent bring down the taxes from the medical retirement?
The post you quoted was made in 2012. In any case, there are some cases where the required waiver of retired pay/VA Offset does not cause a total loss of retired pay and the retiree can keep the residual.

Here is an example (less than 20 yrs AD and does not qualify for reserve retirement if a reservist) using rates not taken from the VA compensation tables. His/her taxable income is also shown.


1. Disability retirement: $3000
2. VA compensation: $2000
3. Disability retirement $3000 - $2000 VA offset = $1000 residual retired pay (kept by retiree)
4. Taxable income if an exclusion does not apply = $1000
Note: If CRSC was approved later, the amount of CRSC would be reduced by the amount of residual retired pay.

The example above applies to a disability retiree who does not qualify for CRDP.

Ron
 

Chief Brumfield

New Member
Registered Member
The post you quoted was made in 2012. In any case, there are some cases where the required waiver of retired pay/VA Offset does not cause a total loss of retired pay and the retiree can keep the residual.

Here is an example (less than 20 yrs AD and does not qualify for reserve retirement if a reservist) using rates not taken from the VA compensation tables. His/her taxable income is also shown.


1. Disability retirement: $3000
2. VA compensation: $2000
3. Disability retirement $3000 - $2000 VA offset = $1000 residual retired pay (kept by retiree)
4. Taxable income if an exclusion does not apply = $1000
Note: If CRSC was approved later, the amount of CRSC would be reduced by the amount of residual retired pay.

The example above applies to a disability retiree who does not qualify for CRDP.

Ron
Thanks Ron. That makes sense. I have 19 years for retirement but 26 for pay. I’m 100% VA and may get 70% from the PEB. As a Warrant that would be about $4600 a month. So with 100% VA being $3k I’ll only get taxed on $1600?
 

RonG

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Thanks Ron. That makes sense. I have 19 years for retirement but 26 for pay. I’m 100% VA and may get 70% from the PEB. As a Warrant that would be about $4600 a month. So with 100% VA being $3k I’ll only get taxed on $1600?
1. 4600/0.70= ~6571 (If your high three average base pay is around 6571, then your medical retired pay @ 70% = ~4600)
2. Using your figure of $3000 for VA comp...4600 ret pay minus 3000 VA Offset = residual retired pay of 1600 which is taxable unless it is excluded by law.
3. High-3: If you entered active or reserve military service after September 7, 1980, your retired pay base is the average of the highest 36 months of basic pay. If you served less than three years, your base will be the average monthly active duty basic pay during your period of service.

Ron
 

Natej9986

PEB Forum Regular Member
Registered Member
Hello all, thank you for taking the time to read this long posting. I could use your help!

A little summary: I am on orders to Fort Belvoir's WTU right now -- reporting on 30JUL2012.
Joined Army July 2003. One tour to Iraq in 2005-2006, injury was not sustained there.

I have a permanent profile (333111) for multiple issues, with the main issues being chronic neck pain/cervicalgia, C5-C6 radiculopathy and severe numbness/tingling and loss of strength in right hand/arm. ROM has also decreased significantly in my neck/wrist/arm/shoulder as well, and I am also now starting to experience similar symptoms on my left side.

I had ACDF surgery to repair the C5-C6 area in my neck as the nerves were being impinged causing me to lose nearly all functioning/strength and movement of my right arm/hand. I had this surgery on January 19, 2011. The issues with my neck/arm have been going on about 8 months longer than that however.

Also on the profile are many limitations (essentially it is a dead-man's profile), and then also notations such as "no overhead reaching or repetitive bending or lifting anything greater than 10 pounds" (even though anything over 5 pounds with my right side/arm feels like 500 pounds). No prolonged sitting or standing. May walk at own pace/distance as tolerated.

My questions are the following:

I am under the impression that I will be going to the WTU and processing my MEB paperwork that will make its way to the PEB and I'll be deemed unfit for continued military service. I am okay with that. I have been dealing with these injuries for a long while now without any improvement (with some regression--thanks to not having the best physical/occupational therapy available to me in Area 1 of Korea as they sent me here 5 weeks after my neck surgery!)--that's another story!

So, once I complete the combined VA/DOD physical to get my ROM measurements and to document all the minor and major disability claims, I assume I will just be waiting on the letter from the VA stating what disability rating I will receive for one. And then separately I will be awaiting the DOD/Army to come back to me and offer their disability rating (and if it is 30% or greater I will receive medical retirement)....Correct? I get the whole 30-50% is 50% of your high-3 base pay as the medical pension from the Army.

Now if the VA gives me say an 80% rating and that is somewhere around $1700/month...won't I get the $1700 plus the Army's medical retirement pension payment also? So if that is $1500 and the VA is $1700, won't I be getting $3,200/month in disability payments? Please correct me if I am not understanding this correctly.

Also, I wanted to list some things that the VA would rate me on, as some of them I couldn't find the code/%'s for, and was hoping you all could help with that and the math on the VA possible disability rate.

Sleep Apnea (use CPAP) - 50%
Ulnar Nerve Issues (8516) - 50%
Chronic Pain Disorder (9422) - 30%
Neurolgia (8710) - 20%
Chronic Kidney dysfunction (kidney stones 7502) - ?%
Allergic Rhinitis with nasal polyps (6522) - 30%
Dysuria/Nocturia (section 4.115a) - 20%
Cubittal tunnel syndrome right elbow - ?%
ROM shoulder - 10%
ROM wrist - 10%
ROM neck - ?%
High blood pressure - ?%
Irritable Bowel Syndrome - moderate - 10%
Frost bite on toes (7122) -- have numbness, discoloration -- 20%
Chronic PTSD (9411) - 10%
Tinnitus - ?%
Insomnia - ?%

So yes, I know there are a ton of things listed there. And I don't even think I listed the issues with my arm/hand/neck/nerve issues properly there. So I don't know exactly how that all will add up. But I cannot lift anything without a lot of neck pain, can't bend down and pick something up, can't run or jerk my head side-side quickly, and have been told that I should not be driving.

So please help me out and let me know what you all think, and please help me understand the whole getting VA disability money and DOD/Army medical retirement pension money. I am under the impression I would be eligible for both. Now that I am so close to getting out, I need to start doing some financial planning/forecasting so my family (wife and 2 kids under 18) and I can figure out our game plan going forward.


Thank you for reading this long thread.

Regards,
Anthony
How did you get the 30% for sinusitis/rhinitis? I thought for sure I would get 30-50%, since I had mine removed several times, along with having to have my septum fixed twice because the polyps deviated it. They rated me at 0%.
 

Dani2920

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PEB Forum Veteran
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How did you get the 30% for sinusitis/rhinitis? I thought for sure I would get 30-50%, since I had mine removed several times, along with having to have my septum fixed twice because the polyps deviated it. They rated me at 0%.
I believe that was Anthony's estimate, as he said what the VA "would rate me on."
 
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