SEVERANCE PAY vs RETIREMENT PAY????????

Curious sarge

PEB Forum Regular Member
Registered Member
I have a soldier who is going through the PEB. (50% DOD/100%VA) are his current ratings. I understand that because he is receiving a rating of 30% or higher from the DOD he will be medically retired. The soldier has 14years of active service. His PEBLO has stated that because he does not have 20yrs of service he will receive a lump sum/payout from the army and monthly check from the VA. He will still have medical benefits as a retiree however. Is this true?
 
The PEBLO told him incorrectly. He will not get a severance check if he's retired. Severance check is only if separated.
 
The PEBLO told him incorrectly. He will not get a severance check if he's retired. Severance check is only if separated.

Thank you.... I wasn't sure she stated that he cannot receive two checks because he has less than 20yrs of service
 
Thank you.... I wasn't sure she stated that he cannot receive two checks because he has less than 20yrs of service

If your soldier has any condition(s) that are combat related, they should apply for CRSC to restore the offset from the VA
 
If your soldier has any condition(s) that are combat related, they should apply for CRSC to restore the offset from the VA
Once again she stated this morning he will receive a lump sum....check.... not a monthly check. But will recieve medical benefits as a retiree.
 
Once again she stated this morning he will receive a lump sum....check.... not a monthly check. But will recieve medical benefits as a retiree.

There is a conflict with this statement. Retiree's do not get a lump sum payment. Lump sum comes from severance, which is 0-10-20% rating. There are no retirement benefits that come from severance.

He could be eligible for VA medical benefits for the condition(s) that are service connected.
 
I agree there is a major conflict. As stated above, when he is medically retired he will recieve a lump sum pay out, he will still be officially medically retired but because he does not have 20 YOS he is in eligible to recieve both a retirement check and VA disability check monthly (all this according to the PEBLO). I was under the assumption that he would receive a monthly check based off his grade and TIS.
 
I agree there is a major conflict. As stated above, when he is medically retired he will recieve a lump sum pay out, he will still be officially medically retired but because he does not have 20 YOS he is in eligible to recieve both a retirement check and VA disability check monthly (all this according to the PEBLO). I was under the assumption that he would receive a monthly check based off his grade and TIS.

Nothing what you have stated is even remotely possible based upon regulations.

Medical retirement will never give you a lump sum payout.

Medical retirement will pay you a percentage of your "retired pay base" which is the average of the "top three" years of income earned. If you are retired at a 30% rating, you get 30% of your retired pay base, 40% rating, 40% of your retired pay base, 50% rating, 50% of your retired pay base. This pattern will be the same until 75%, which is the maximum retirement that you can earn.

Now as fas as collecting "two checks" is concerned, there are quite a few scenarios that come into play. Federal law prevents you from receiving both your VA C&P and a medical retirement concurrently, unless you qualify for "combat related special compensation" (CRSC). CRSC can restore all or some of the a VA offset of C&P.

I do not believe that an PEBLO would so erroneously give your soldier such misinformation, the rules have not changed in quite some time. This would leave me to believe that your soldier is either 1.) not paying any attention to what the PEBLO is telling them 2.) did not listen to a single word of the briefing that was performed by the office of the soldiers counsel (JAG) or 3.) is intentionally misleading you.
 
I agree there is a major conflict. As stated above, when he is medically retired he will recieve a lump sum pay out, he will still be officially medically retired but because he does not have 20 YOS he is in eligible to recieve both a retirement check and VA disability check monthly (all this according to the PEBLO). I was under the assumption that he would receive a monthly check based off his grade and TIS.

Your Soldier may be correct because I was medically retired out the Army (30%) and I'm currently receiving VA disability (100%). Yesterday I received a retiree account statement from DFAS saying that I will start receiving retirement payments along with my VA compensation effective Dec 1st. I thought it was a mistake so I called DFAS because I'm not trying to backpay any money. The DFAS representative explained to me that there are ongoing changes and as of now I'm eligible to receive both. The representative also told me to call back at the end of the month because they are processing backpay as well for information and clarification.
 
Your Soldier may be correct because I was medically retired out the Army (30%) and I'm currently receiving VA disability (100%). Yesterday I received a retiree account statement from DFAS saying that I will start receiving retirement payments along with my VA compensation effective Dec 1st. I thought it was a mistake so I called DFAS because I'm not trying to backpay any money. The DFAS representative explained to me that there are ongoing changes and as of now I'm eligible to receive both. The representative also told me to call back at the end of the month because they are processing backpay as well for information and clarification.
Thank you for that insight..... UPDATE..... the soldier spoke to the VA. Rep again today she explained to him that he would in fact recieve a monthly disability check.
 
Your Soldier may be correct because I was medically retired out the Army (30%) and I'm currently receiving VA disability (100%). Yesterday I received a retiree account statement from DFAS saying that I will start receiving retirement payments along with my VA compensation effective Dec 1st. I thought it was a mistake so I called DFAS because I'm not trying to backpay any money. The DFAS representative explained to me that there are ongoing changes and as of now I'm eligible to receive both. The representative also told me to call back at the end of the month because they are processing backpay as well for information and clarification.
Question Anthony Clay, how long did it take you to recieve your VA disability check. From my understanding you recieve a monthly check from the army until your. A kicks in at that point the Army washes its hands of you, it's almost as if it's better to get severance because at least you get some form payment for your service as well as your VA
 
Your Soldier may be correct because I was medically retired out the Army (30%) and I'm currently receiving VA disability (100%). Yesterday I received a retiree account statement from DFAS saying that I will start receiving retirement payments along with my VA compensation effective Dec 1st. I thought it was a mistake so I called DFAS because I'm not trying to backpay any money. The DFAS representative explained to me that there are ongoing changes and as of now I'm eligible to receive both. The representative also told me to call back at the end of the month because they are processing backpay as well for information and clarification.

If this goes through for you can you please come back and post up the circumstances which allows this concurrent receipt.
We have been waiting for years for legislation to get passed which will allows CRDP for those who are not "combat related". I am not aware of any legislation yet, but there may be some other rule that they are using.

Here is some information on the current proposed legislation: http://www1.moaa.org/MRNextCR/
 
Your Soldier may be correct because I was medically retired out the Army (30%) and I'm currently receiving VA disability (100%). Yesterday I received a retiree account statement from DFAS saying that I will start receiving retirement payments along with my VA compensation effective Dec 1st. I thought it was a mistake so I called DFAS because I'm not trying to backpay any money. The DFAS representative explained to me that there are ongoing changes and as of now I'm eligible to receive both. The representative also told me to call back at the end of the month because they are processing backpay as well for information and clarification.
Were you able to find out about your retiree pay getting ready to begin.
 
Your Soldier may be correct because I was medically retired out the Army (30%) and I'm currently receiving VA disability (100%). Yesterday I received a retiree account statement from DFAS saying that I will start receiving retirement payments along with my VA compensation effective Dec 1st. I thought it was a mistake so I called DFAS because I'm not trying to backpay any money. The DFAS representative explained to me that there are ongoing changes and as of now I'm eligible to receive both. The representative also told me to call back at the end of the month because they are processing backpay as well for information and clarification.
How many AD years do you have?
 
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