TIME LINE HELP!!! [severance pay & taxes]

mamoore555

PEB Forum Regular Member
Registered Member
Ok guys new member here but this place has helped tremendously. So Ill start with the basics.
-7 Years 7 Months Active Duty Marine (E-5) Sgt
-Got out of the Marines on TDRL
-Injuries Sustained in Afghanistan IED resulted in ( MTBI)
-Currently VA Rated 80% For combat injuries (Tinnitus, MTBI, Post Traumatic Headaches, Others)

Ok so my question is I recently went to my re-eval at Bethesda. I received a letter in the mail stating my disability was stable for rating at 10%. The med board all agreed that this injury happened in a combat zone and beside my disability it says (CZONE). This letter went on to say that I would be seperated from the TDRL and discharged on May 1 and will be receiving a severance. My questions are:

1. What is the expected time from TDRL discharge to actually receiving severance pay.
2. Since this injury was well documented it occured in a combat zone will I loose my VA disability pay?
3. is my math right on my severance computation 2x Basic Pay($2,856.60)x Years of service (8)=$45,705.60
4. Is there anything I need to be doing?
5. Any tips or pointers?
6. Valuable contacts for checking the status of all of this?

Thanks, guys I'm sorry for sounding so ignorant but I'm just so lost by all of this and really can't seem to track down the correct answers.
 
mamoore555,

A couple of answers.

Per DFAS:
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.

Taxation: Tax on Severance Pay LINK <—-

Ron
 
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).

Ref: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 4 * March 2018 4-8 040602. Recoupment of DSP
LINK to reference <----

Ron
 
Ok guys new member here but this place has helped tremendously. So Ill start with the basics.
-7 Years 7 Months Active Duty Marine (E-5) Sgt
-Got out of the Marines on TDRL
-Injuries Sustained in Afghanistan IED resulted in ( MTBI)
-Currently VA Rated 80% For combat injuries (Tinnitus, MTBI, Post Traumatic Headaches, Others)

Ok so my question is I recently went to my re-eval at Bethesda. I received a letter in the mail stating my disability was stable for rating at 10%. The med board all agreed that this injury happened in a combat zone and beside my disability it says (CZONE). This letter went on to say that I would be seperated from the TDRL and discharged on May 1 and will be receiving a severance. My questions are:

1. What is the expected time from TDRL discharge to actually receiving severance pay.
2. Since this injury was well documented it occured in a combat zone will I loose my VA disability pay?
3. is my math right on my severance computation 2x Basic Pay($2,856.60)x Years of service (8)=$45,705.60
4. Is there anything I need to be doing?
5. Any tips or pointers?
6. Valuable contacts for checking the status of all of this?

Thanks, guys I'm sorry for sounding so ignorant but I'm just so lost by all of this and really can't seem to track down the correct answers.

I came off of TDRL on April 1 and am still waiting for my severance payment. I received my separation orders on March 12. I have been told that it can take up to 60 days to receive payment.
 
[Edited to add: previously answered]

Hello,

Re: “3. is my math right on my severance computation 2x Basic Pay($2,856.60)x Years of service (8)?”

Yes.

To compute disability severance pay, multiply the sum of basic pay for 2 months by the number of combined years (but not over 19) of active service and inactive duty points. Round up if the “extra” months are six or more.

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).

Ref: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 4 * March 2018 4-8 040602. Recoupment of DSP
LINK to reference <----

Ron
 
Thank you RonG i just needed a sanity check on that one
[Edited to add: previously answered]

Hello,

Re: “3. is my math right on my severance computation 2x Basic Pay($2,856.60)x Years of service (8)?”

Yes.

To compute disability severance pay, multiply the sum of basic pay for 2 months by the number of combined years (but not over 19) of active service and inactive duty points. Round up if the “extra” months are six or more.

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).

Ref: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 4 * March 2018 4-8 040602. Recoupment of DSP
LINK to reference <----

Ron
Thanks! I just needed a sanity check on that one.
 
I came off of TDRL on April 1 and am still waiting for my severance payment. I received my separation orders on March 12. I have been told that it can take up to 60 days to receive payment.
Did they tell you that you need to be doing anything with DFAS or MMSR-4? Or just kinda sit around and wait?
 
Ok guys new update:
Apr 26 Received my discharge orders (Discharge Certificate and lapel pin)
May 2 called DFAS to verify they have received paperwork they said indeed they have received it and got it on the 22 of apr

My question is now how long is the waiting game before DFAS releases the severance pay?
 
Ok guys new update:
Apr 26 Received my discharge orders (Discharge Certificate and lapel pin)
May 2 called DFAS to verify they have received paperwork they said indeed they have received it and got it on the 22 of apr

My question is now how long is the waiting game before DFAS releases the severance pay?

I would love to hear when you get yours. I've been trying to find out the same answer, as I've attempted to speak to folks with DFAS, and can't seem to find the right Department. They have no record of my paperwork, and it's been over 75 days now.
What number do they have you calling, and what service Branch are you?
Very respectfully,
Jon Butler
 
I would love to hear when you get yours. I've been trying to find out the same answer, as I've attempted to speak to folks with DFAS, and can't seem to find the right Department. They have no record of my paperwork, and it's been over 75 days now.
What number do they have you calling, and what service Branch are you?
Very respectfully,
Jon Butler
I was in the Marines so, I called manpower (MMSR-4) 703-784-9308 / 9309 / 9321 and they pointed me in the direction of DFAS (800) 321-1080, I can't remember the option I chose but it was in the category of "retired pay" I just asked politely " I'm calling to check the status of my severance, I was processed off of TDRL with Severance". They then transferred me to a "Level 2" customer service rep who helped me. But a word of caution be prepared to wait, I was on hold for 30 minutes before speaking to someone.
 
Marine as well. I'm in the same boat. Came off TDRL May 1st. Called DFAS yesterday to make sure paperwork was received. They confirmed and told me that it could take up to 120 days. I still haven't received clarification on if 6 months of service rounds up to a year for calculating time in service. The PEB paperwork says it does but I haven't found many who have had this experience.
 

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Re: 6 months “ I still haven't received clarification on if 6 months of service rounds up to a year for calculating time in service.”

Reference: LINK to law <—

“For the purposes of subsection (a), a part of a year of active service that is six months or more is counted as a whole year, and a part of a year that is less than six months is disregarded.”

Ron
 
Thanks Ron! I've read varying experiences about the rounding up as well as which pay chart is used; the base pay of the year placed on TDRL or the year removed. I guess it's whatever they decide really.
 
Thanks Ron! I've read varying experiences about the rounding up as well as which pay chart is used; the base pay of the year placed on TDRL or the year removed. I guess it's whatever they decide really.
Formula for computing

Disability Severance Pay is a one-time, lump sum payment and is computed as follows:

  • 2 x basic pay for applicable grade x years of service not to exceed 19 years.
  • Applicable grade is the highest of the following:
    • Current grade.
    • Highest grade satisfactorily served.
    • Grade to which the Soldier would have been promoted had it not been for the disability for which he is being separated. This is colloquially referred to as, "promotion list grade."
LINK to a reference <——
Ron
 
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Somewhat same boat here...

Got out of the Marines on TDRL in feb 2017. Had my re-eval in Nov 2018.. Was told I was being taken off TDRL Dec 3, 2018 and orders came in Jan for a separation date of 2/1/2019. As of today I still have not received my severance pay, and on MyPay I still don't have an updated RAS. I've heard that the RAS updates with the date you receive severance before the severance even hits, kinda giving you a window for when it's coming. Mine still says Dec 3.

After talking to the "tier 2 service reps" all they can tell me is that severance is such a large lump sum, it has an extensive review process. Once the severance is verified and approved, it takes up to 30 days to receive it. Sadly this doesn't appear to be the case, as my severance was "approved" on Apr 8, meaning I should have gotten it by May 8, and my RAS has yet to update. Still no severance.

I hope that this works out better for y'all and I could be more help.. Just know it's a long waiting process.
 
Has anyone received their severance yet? Just checking in for an update!
 
Nope, Im actually on the phone with DFAS now lol with an estimated wait time of 2 hours.
 
That's insane. Can you let me know if you actually get an update and not a random person who has no idea what's going on?
 
So far I have been transferred twice to people who have no idea. But I'll keep you guys posted.
 
Ok so DFAS was no help but MMSR4 was ALOT of help. They were able to tell me my amount and that DFAS is atleast moving on it.
 
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