Pay after retirement

[CoyoteSwapped]

My wife was medically retired in February 2024 after 6 years of service. 100% VA and 100% DoD rating. On the first of October, she received a rather large check from DFAS, they claimed it was retirement back pay from 1MAR24 to 30SEP24, and nothing to do with VA compensation. We called DFAS with the understanding she can NOT receive VA pay and retirement pay due to her not doing 20 years of service. Today, we got in the mail a letter from DFAS breaking down her retirement pay from here on out, to be paid simultaneously with her VA compensation. DFAS also said the large check she received will NOT be taken back, and that once the VA see’s that she’s getting retirement pay, they will send DFAS a notification to suspend the retirement pay due to her not completing 20 years.

Has anyone else seen this or believe this to be true? The references I’ve researched don’t have definitive evidence stating she should be receiving the retirement pay, but DFAS is most definitely saying that money is hers. Of course we will not be spending the money, but any and all help is greatly appreciated!

 

[Provis]

My wife was medically retired in February 2024 after 6 years of service. 100% VA and 100% DoD rating. On the first of October, she received a rather large check from DFAS, they claimed it was retirement back pay from 1MAR24 to 30SEP24, and nothing to do with VA compensation. We called DFAS with the understanding she can NOT receive VA pay and retirement pay due to her not doing 20 years of service. Today, we got in the mail a letter from DFAS breaking down her retirement pay from here on out, to be paid simultaneously with her VA compensation. DFAS also said the large check she received will NOT be taken back, and that once the VA see’s that she’s getting retirement pay, they will send DFAS a notification to suspend the retirement pay due to her not completing 20 years.

Has anyone else seen this or believe this to be true? The references I’ve researched don’t have definitive evidence stating she should be receiving the retirement pay, but DFAS is most definitely saying that money is hers. Of course we will not be spending the money, but any and all help is greatly appreciated!

Just park the money in a money market account in the meantime. When DFAS screws things up it generally takes months to get it figured out and its quite often that you may need to contact your local congressperson for help. You are correct in your assumption. If she was in for only 6 years all of that money would be offset by VA compensation since her VA compensation would be a much larger amount than her chapter 61 pension.

Also, you probably want to get this fixed before applying for CRSC if she believes she qualifies.

Submit a ticket with DFAS even though its probably a waste of time. Then reach out to your local congressperson for help. They typically have a liaison that deals with DFAS/VA etc. and they can help put some pressure on people to try to get it fixed. Its called a congressional inquiry. My wife was medically retired and DFAS was withholding 100% coverage for SBP even though she selected and I signed off in front of a notary to choose the low cost threshold SBP option instead. So for months she was having $360 a month taken out of her pension check when the amount deducted should have been $24. Even with the form filled out correctly it took 5 months for it to get fixed and for her to get a refund for the excess money deducted.

 

[CoyoteSwapped]

Just park the money in a money market account in the meantime. When DFAS screws things up it generally takes months to get it figured out and its quite often that you may need to contact your local congressperson for help. You are correct in your assumption. If she was in for only 6 years all of that money would be offset by VA compensation since her VA compensation would be a much larger amount than her chapter 61 pension.

Also, you probably want to get this fixed before applying for CRSC if she believes she qualifies.

Submit a ticket with DFAS even though its probably a waste of time. Then reach out to your local congressperson for help. They typically have a liaison that deals with DFAS/VA etc. and they can help put some pressure on people to try to get it fixed. Its called a congressional inquiry. My wife was medically retired and DFAS was withholding 100% coverage for SBP even though she selected and I signed off in front of a notary to choose the low cost threshold SBP option instead. So for months she was having $360 a month taken out of her pension check when the amount deducted should have been $24. Even with the form filled out correctly it took 5 months for it to get fixed and for her to get a refund for the excess money deducted.

Thank you. We will look into that! Every time on the phone with DFAS they just kept saying it’s retroactive retirement pay. Also VA said that she was automatically enrolled into CRDP but couldn’t speak on her eligibility criteria which I found in this photo below.

She does meet the second bullet of having at least one rated condition of at least 50%. (She has 2 conditions rated at 100%)

The first bullet is very vague, saying to be entitled for any month to receive both payments. That’s where the VA could not confirm it. (Knowing she isn’t eligible via chapter 61). We can’t seem to find if there are other ways to be eligible. So thanks again! Maybe a congressional inquiry is our best or only option at this point.

 

[Provis]

Thank you. We will look into that! Every time on the phone with DFAS they just kept saying it’s retroactive retirement pay. Also VA said that she was automatically enrolled into CRDP but couldn’t speak on her eligibility criteria which I found in this photo below.

She does meet the second bullet of having at least one rated condition of at least 50%. (She has 2 conditions rated at 100%)

The first bullet is very vague, saying to be entitled for any month to receive both payments. That’s where the VA could not confirm it. (Knowing she isn’t eligible via chapter 61). We can’t seem to find if there are other ways to be eligible. So thanks again! Maybe a congressional inquiry is our best or only option at this point.

This is 100% an error. Definitely put the money in a high yield interest account that gets you at least 4%. Its not much but since you are going to waste a lot of time with this at least you can be compensated by getting a little interest until you can get this fixed. Make sure that subsequent checks are deposited into the same account. You should probably create a high yield savings account that only this misappropriated money goes into so that you are properly tracking the amount you will owe and that prevents you from accidentally or on purpose spending any of it.

 

[Provis]

Thank you. We will look into that! Every time on the phone with DFAS they just kept saying it’s retroactive retirement pay. Also VA said that she was automatically enrolled into CRDP but couldn’t speak on her eligibility criteria which I found in this photo below.

She does meet the second bullet of having at least one rated condition of at least 50%. (She has 2 conditions rated at 100%)

The first bullet is very vague, saying to be entitled for any month to receive both payments. That’s where the VA could not confirm it. (Knowing she isn’t eligible via chapter 61). We can’t seem to find if there are other ways to be eligible. So thanks again! Maybe a congressional inquiry is our best or only option at this point.

Its possible to get retro retirement if she wasn't receiving VA compensation for that same period of time. Double check your records and if she was paid for VA and pension for same period of time then its a problem.

 

[CoyoteSwapped]

Its possible to get retro retirement if she wasn't receiving VA compensation for that same period of time. Double check your records and if she was paid for VA and pension for same period of time then its a problem.

She’s been getting VA since April 1st. DFAS is saying once they do the next audit, it’ll be known she got retirement pay and they will stop it. Still not going to spend any of it lol. But thanks for the help!