Can You Receive VA Disability and Military Retirement Pay?
The answer is yes, but it depends on your individual circumstances and the compensation you receive. As a veteran, you may be eligible for both VA disability compensation and military retirement pay. In this article, we will break down the rules and guidelines to help you understand the process.
What is VA Disability Compensation?
VA disability compensation is a tax-free benefit paid to veterans with a service-connected disability that is rated 10% or more. The VA rates disabilities from 0% to 100% based on their severity and impact on the veteran’s daily life.
How Much Can You Expect to Receive?
VA disability compensation rates vary based on your disability rating, the type of disability, and whether you have dependents. Here is a breakdown of the 2022 disability compensation rates:
| Disability Rating | Monthly Compensation (Single Veteran) | Monthly Compensation (With 1 Dependent) | Monthly Compensation (With 2 Dependents) | Monthly Compensation (With 3 Dependents) |
|---|---|---|---|---|
| 0% | $0.00 | $0.00 | $0.00 | $0.00 |
| 10% | $146.41 | $166.41 | $186.41 | $206.41 |
| 30% | $346.41 | $376.41 | $406.41 | $436.41 |
| 50% | $541.41 | $571.41 | $601.41 | $631.41 |
| 70% | $761.41 | $791.41 | $821.41 | $851.41 |
| 80% | $871.41 | $901.41 | $931.41 | $961.41 |
| 90% | $961.41 | $991.41 | $1021.41 | $1051.41 |
| 100% | $1,114.38 | $1,114.38 | $1,114.38 | $1,114.38 |
What is Military Retirement Pay?
Military retirement pay is a benefit paid to eligible retirees based on their years of service and the rank at which they retire. The amount of military retirement pay varies based on the number of years of service and the retiree’s highest rank.
How is Military Retirement Pay Calculated?
Military retirement pay is calculated based on your years of service and final pay. For every year of service, you receive a certain amount of "retirement points." Your final pay, which includes your base pay and promotions, is multiplied by your retirement points to determine your monthly retirement pay.
Here is a table showing the 2022 military retirement pay rates for enlisted members:
| Years of Service | **Annual Retirement Pay (Basic) | Monthly Retirement Pay (Basic) | Annual Retirement Pay (Concurrent Receipt) | Monthly Retirement Pay (Concurrent Receipt) |
|---|---|---|---|---|
| 2 | $1,404.45 | $116.704 | $2,131.45 | $177.454 |
| 4 | $2,808.91 | $233.075 | $4,162.91 | $344.092 |
| 6 | $4,213.37 | $350.611 | $6,193.37 | $514.095 |
| 8 | $5,617.83 | $468.148 | $8,223.83 | $684.198 |
| 10 | $6,923.29 | $577.685 | $10,253.29 | $854.301 |
Can You Receive VA Disability and Military Retirement Pay?
In most cases, yes. The Veterans’ Benefits and Health Care Improvement Act of 2000 allows VA disability compensation to be concurrently received with military retirement pay. However, there are some important considerations:
• Combined Income Limit: The amount of VA disability compensation and military retirement pay you receive cannot exceed your combined income limit. The combined income limit is determined by adding your VA disability compensation, military retirement pay, and any other retirement pay received.
• Dependency Compensation: If you have dependents, the amount of VA disability compensation you receive may be adjusted to include dependency compensation.
Additional Considerations:
- Basic Allowance for Housing (BAH): As a retired veteran, you may continue to receive BAH while receiving military retirement pay and VA disability compensation.
- Education Benefits: As a disabled veteran, you may be eligible for education benefits such as the GI Bill, which may affect your eligibility for other benefits.
- Tax Implications: Military retirement pay is taxable, while VA disability compensation is tax-free. It is essential to understand the tax implications of combining these two benefits.
Conclusion
Receiving VA disability and military retirement pay is possible, but it requires an understanding of the rules and guidelines. The key takeaways are:
• Combined Income Limit: Ensure that your total income, including VA disability compensation, military retirement pay, and other retirement pay, does not exceed the combined income limit.
• Dependency Compensation: Factor in any dependency compensation if you have dependents.
• Additional Considerations: BAH, education benefits, and tax implications may also impact your combined benefits.
By understanding the rules and guidelines, you can optimize your benefits and ensure you receive the maximum compensation allowed.
