Didn't receive full severance pay.

Bullzr

Registered Member
Hello,
I was separated back in may 2018 for a service connected disability and according to my dd214 was supposed to receive severance pay in the amount of $56,000 along with my final monthly pay and 28 days of leave pay. I did receive $20,000 in Jun and figured the rest would be coming in another month or so. So I patiently waited. Nothing came and so I contacted the base that I separated from and they called around and said that they didn't do my sep paperwork they had to send it to Connecticut and they said the psd in con was looking into it and would get back to me. Well they didn't so a couple of weeks later I called again and they said that psd said they messed up and didn't know how to fix it but were working on submitting a claim to dfas. Now it's dec and still nothing. They said that they submitted a claim but no proof is available. Nobody knows where the claim is nobody is helping me. I guess I'm just asking if anybody knows the next step I should take. Any suggestions would be appreciated.
 

Mike.D.12345

Registered Member
I separated on 28 Dec 18 and received my severance on 31 December 18. However, I was supposed to receive 136k and my check was only for 90k. Has your issue been resolved? I am currently talking to DFAS to find out where the difference is.
 

usarmy68e

PEB Forum Veteran
Registered Member
I separated on 28 Dec 18 and received my severance on 31 December 18. However, I was supposed to receive 136k and my check was only for 90k. Has your issue been resolved? I am currently talking to DFAS to find out where the difference is.
did you ensure that was not the taxed portion that is missing, and did you file to receive your taxable portion back.

Disability Severance Pay
All branches of service have the authority to separate a soldier on the Temporary Disability Retirement List (TDRL). Separation may occur with entitlement to disability severance pay or without.

You must meet all of the following requirements to be eligible:
  • be found unfit for duty,
  • have less than 20 years of service,
  • and have a disability rating of less than 30%.
Prior to January 28, 2008 members were required to have at least 6 months of service to qualify for discharge with severance pay. This rule no longer applies.

If you were discharged with severance pay, you cannot go back on active duty or choose to apply for retirement later. However, you may be eligible to apply for monthly disability compensation from the Department of Veterans Affairs (VA) if the VA determines your disability is service-connected.
Calculation and Payment
Disability severance pay is a one-time lump sum payment. The amount equals 2 months of basic pay for each year of service which includes active service and inactive duty points, but the total service years cannot exceed 19 years. Additionally, the minimum number of years required for computation purposes is six years for a disability incurred in the line of duty in a combat zone, or 3 years in the case of any other member. Prior to January 28, 2008, a maximum of 12 years and minimum of three years creditable service was used.
 

Mike.D.12345

Registered Member
Hello,
I was separated back in may 2018 for a service connected disability and according to my dd214 was supposed to receive severance pay in the amount of $56,000 along with my final monthly pay and 28 days of leave pay. I did receive $20,000 in Jun and figured the rest would be coming in another month or so. So I patiently waited. Nothing came and so I contacted the base that I separated from and they called around and said that they didn't do my sep paperwork they had to send it to Connecticut and they said the psd in con was looking into it and would get back to me. Well they didn't so a couple of weeks later I called again and they said that psd said they messed up and didn't know how to fix it but were working on submitting a claim to dfas. Now it's dec and still nothing. They said that they submitted a claim but no proof is available. Nobody knows where the claim is nobody is helping me. I guess I'm just asking if anybody knows the next step I should take. Any suggestions would be appreciated.
I just spoke with DFAS. The amount are taxed and you must submit a form in the DFAS website in order to receive the rest on the amount that was withheld.
 

ChrisIsrael

Registered Member
Same Situation my psd just totally screwed up the paper work, anyone know how to contact DFAS Indianapolis? Supposedly they are the only ones who are processing my information and DFAS cleveland can't see what they are doing as per my PSD SMH.
 

lucky208

PEB Forum Veteran
Registered Member
@Mike.D.12345 Did DFAS indicate you would receive a full refund of taxes withheld/ meaning will you eventually receive the full $136k severance pay?. Thanks.
 

Sunnyd13

Registered Member
Ok question if you are over 30% TDRL is not an option does that reaukt in your oprion just being the VA disability versus what ever the branch’s disabilty % calculation is with no severance? There is so much to weigh thats it’s difficult to separate? For SA purposes AF has my retirement time or active duty time served wrong dec 2020 is their calculation and June 2019 is the accurate one ( trying to get fixed) and will be what im assuming will be my UFD reaponse from afpc tomorrow. Pebl emailed me at 1657, i called at 1703 with no answer but her email basically claimed today counted as my notice so i have six days from today ( i think thats also inaccurate since i didnt get the resuts and she was out of the office...right or wrong?)
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Hello Sunnyd13,

I am not sure I understand all your concerns, but I can address the >= 30% DoD issue, severance pay, and receipt of VA compensation. The following is based on my inference that you do not qualify for a retirement other than disability (potentially) .

1. If you are rated for a disability below 30% DoD, you will be entitled to severance pay.

2. If you are rated 30% or more DoD, you are entitled to disability retired pay. You will not have the option to choose severance pay instead.

3. I often see the phrase, “...choose VA compensation over retired pay“ or vice versa. Actually, it is not an either or situation.
What occurs when a retiree chooses to receive VA compensation, is that he/she agrees to waive retired pay dollar for dollar in the amount of VA compensation received. Occasionally, the VA offset leaves some retired pay unwaived and the retiree receives that amount plus VA compensation.

4. I can think of no situation where it would be desirable (better) to decline VA compensation.

5. If eligible and approved by one’s service, CRSC can replace some or all of the waived retired pay. An application is required.

Ron
 
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