I recently medically retired on 28 Sep 2012. VA 100%, AF 60%. I understood since I only had 18 years and 2 months in the Aiir Force, I will either receive military pay or VA pay which ever one is more. I received a certified letter today from DFAS saying welcome to retirement and broke down my disability retirement pay at 60%. I have already submitted my DD214 to received VA pay. My question is, am I suppose to receive both checks with less than 18 years service?
Retirement Pay and VA pay
- Thread starter Twinkie35
- Start date
From what I understand, if your DoD retired pay is higher than your VA pay, you will get two payments....one from the VA up to your maximum awarded VA pay, then the remainder of your DoD pay will come from the military. For example: lets say your DoD pay is 3000.00, and your VA pay is 2000.00. You will get the higher of the two (3000.00), the first 2000.00 will come from the VA (tax free) and the remainder, 1000.00 will come from the DoD taxable. This offset is one of the actions that the Defense Authorization Act is attempting to remove to allow vets to draw both pays, as DoD pay is designed to compensate a sm for a truncated career, whereas the VA pay is designed to compensate you for disability and reduced earning potential....two different things.
However, if you qualify for CRSC, you can draw two checks tax free.
However, if you qualify for CRSC, you can draw two checks tax free.
Thanks for your quick reply Aviator! I don't qualify for CRSC, however, the VA pay with dependents is around $3000 at 100%. The paperwork today concerning military retirement pay stated the pay would be $2000 and some change. I am a TSgt. So, what you're saying, I will receive two checks but when everything is offset, it will still average $3000? Ok, I think I understand...
Once your VA pay kicks in, DFAS automatically updates and implements it, you will no longer receive DoD pay, but just the $3000 VA pay tax free. Therefore just one check on the first of the month.
You are in the situation that your VA money is more than your DoD. Pitt is spot on.
OK, thanks Pittpan, because I was told that it would take the VA 30-60 days to process my claim. I told my VA representative that I still have bills. He said he was sorry but there was nothing he could do to speed up the process. I was thinking, dang 18 years active duty (plus my excellent credit score) can be scared because of "claims!" Thank you everyone for your input. All answers are appreciated!
It still will likely take 30-60 days for the VA compensation to trickle in, but in the meantime your DoD retirement pay will still come in. Just be prepared for a slight lag in pay. If you need to, look at an interest free loan from some of the military service lenders to get you through. Also, file for unemployment immediately if you are unemployed. There is usually a week waiting period.
Just another random thought if you have school loans......a 100% VA rating discharges many of them and there is no waiting period or penalty if you go back to school in the future. I would also contact your creditors and ask about disability clauses or forbearance, etc. Often creditors will work with you.