Severance

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carrb96

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PEB Forum Veteran
Registered Member
my last day is on the 29th. Does anyone know how long it takes for the navy to pay out your severance?
 
All depends on whether TSC Norfolk properly set up your retired pay account with DFAS.
 
@PERS-95 my ratings was 20% DOD AND 100% VA. I was told by my lawyer that at 20% my VA was at 100% and would not have to do recoupment. My MSC is telling me that I have to wait 21 months to receive my 100% VA disability. Any insight on this?
 
carrb96 said:
@PERS-95 my ratings was 20% DOD AND 100% VA. I was told by my lawyer that at 20% my VA was at 100% and would not have to do recoupment. My MSC is telling me that I have to wait 21 months to receive my 100% VA disability. Any insight on this?
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Recoupment is required ONLY when the DoD and the VA BOTH provide a rating or ratings for the same disability or disabilities. This explains the rate of collection/recoupment.


From VA Regulation M21-1 :


III.v.4.B.3.b. General Policies Regarding Withholdings to Recoup Disability Severance PayGenerally, if a Veteran received disability severance pay, VA must withhold from his/her monthly compensation an amount equal to the monthly compensation payable for the disability(ies) for which the Veteran received disability severance pay. VA continues to withhold this amount until it has recouped the amount specified in M21-1, Part III, Subpart v, 4.B.2.d.

Important:
  • The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies).
  • If a Veteran has multiple, severance-pay disabilities, each rated 0-percent disabling, and VA assigns a 10-percent disability rating to them under 38 CFR 3.324, no withholding is necessary for these disabilities until VA assigns a compensable rating to one or more of them, individually.
  • Withhold the additional benefits payable because of application of the bilateral factor if
    • the initial, compensable rating included application of the bilateral factor, and
    • entitlement to the bilateral factor was based exclusively on severance-pay disabilities.

Ron

added:
The VA is required by law to withhold disability compensation payments for servicemembers who received a disability severance payment when they separated from the military (Chapter 61), if the VA disability compensation is for the same disability. This is to prevent a veteran from receiving duplicate benefits.

Exception: The VA will not deduct compensation pay if the military disability severance pay was received for disabilities incurred in line of duty in a combat zone or incurred during performance of duty in combat-related operations as designated by the Department of Defense (DoD).
 
So they shouldn’t withhold the entire amount? Just for what my referred conditions were? My shoulder was my referred condition and both VA and DOD rated it at 20% but even with that removed my VA was still at 100%.
 
carrb96 said:
So they shouldn’t withhold the entire amount? Just for what my referred conditions were? My shoulder was my referred condition and both VA and DOD rated it at 20% but even with that removed my VA was still at 100%.
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You will have to pay the entire amount of severance.

The rate of collection/recoupment=
  • The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies).
  • It appears they will collect the severance at the VA rate for 20%…until totally recouped.

  • Ron
 
RonG said:
You will have to pay the entire amount of severance.

The rate of collection/recoupment=
  • The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies).
  • It appears they will collect the severance at the VA rate for 20%…until totally recouped.

  • Ron
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He stated: My shoulder was my referred condition and both VA and DOD rated it at 20% but even with that removed my VA was still at 100%.

Shouldn't that mean he doesn't have recoupment since he can get severance and still obtain 100% VA rate without using that condition in the VA ratings?
 
Provis said:
He stated: My shoulder was my referred condition and both VA and DOD rated it at 20% but even with that removed my VA was still at 100%.

Shouldn't that mean he doesn't have recoupment since he can get severance and still obtain 100% VA rate without using that condition in the VA ratings?
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IF, he does not have ratings by both the VA and the DoD for the same disability, there will be no recoupment.

His comment was unclear, at least to me.

Ron
 
M21-1
@Provis

Vi.ii.2.3.h. Example: VA Assigns a 100-Percent DisabilityRating to a Non-Severance-PayDisability​

Scenario: In a decision on a Veteran’s original claim for benefits, VA awards SC for
  • a severance-pay disability rated 50-percent disabling, and
  • a non-severance-pay disability rated 100-percent disabling.
Result: VA may not withhold any compensation to recoup the Veteran’s disabilityseverance pay while the non-severance-pay disability is rated 100-percent disabling.

Note: The result in this example is the same, regardless of whether or not VA assigned the 100-percent rating on a temporary basis under 38 CFR 4.28, 4.29, or 4.30.
Ron
 
carrb96 said:
@PERS-95 my ratings was 20% DOD AND 100% VA. I was told by my lawyer that at 20% my VA was at 100% and would not have to do recoupment. My MSC is telling me that I have to wait 21 months to receive my 100% VA disability. Any insight on this?
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21 months seems....excessive. But I'm not DFAS. Whatever specific question you have about your repayment amount, timeline, etc - anything having to do with specific numbers for your specific case - can be answered best by DFAS at their customer service line.
 
PERS-95 said:
21 months seems....excessive. But I'm not DFAS. Whatever specific question you have about your repayment amount, timeline, etc - anything having to do with specific numbers for your specific case - can be answered best by DFAS at their customer service line.
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Not completely related but I called the VA hotline to ask where my case is they said “ready for decision”. I know all cases are different but would this mean someone is actively looking at my case? My peblo won’t tell me anything. I just want to know a general timeframe since I have a job waiting.
 
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