Can You Collect Military Retirement and VA Disability?
For many military veterans, the question of whether they can collect both military retirement pay and VA disability benefits is a pressing one. The answer is not a simple yes or no, but rather depends on a complex set of factors. In this article, we’ll break down the rules and regulations surrounding this issue to help you understand your rights and options.
DoD and VA Rules on Concurrent Receipt
The Department of Defense (DoD) and the Department of Veterans Affairs (VA) have specific rules governing concurrent receipt of military retirement pay and VA disability benefits. Under the Uniformed Services Former Spouses’ Protection Act (USFSPA), military retirement pay is exempt from garnishment for alimony and child support payments. This means that if a veteran is receiving military retirement pay, it cannot be used to pay alimony or child support.
Section 8337 of Title 10, United States Code
The DoD has a rule, outlined in Section 8337 of Title 10, United States Code, which states that military retirees are eligible to receive VA disability compensation without offsetting their military retirement pay. This means that a veteran can receive both military retirement pay and VA disability benefits without having their military retirement pay reduced by the amount of their VA disability compensation.
The New Law: The Veterans’ Benefits Act of 2016
In 2016, Congress passed the Veterans’ Benefits Act, which eliminated the offset of VA disability compensation against military retirement pay for veterans with a Combat-Related Special Compensation (CRSC) award. This change allowed veterans with CRSC awards to receive both military retirement pay and VA disability benefits without reduction.
Who is Eligible for Concurrent Receipt?
To be eligible for concurrent receipt of military retirement pay and VA disability benefits, a veteran must meet the following criteria:
• Be receiving military retirement pay: The veteran must be receiving military retirement pay from the DoD.
• Be receiving VA disability compensation: The veteran must be receiving VA disability compensation for a service-connected disability.
• Have a Combat-Related Special Compensation (CRSC) award: The veteran must have a CRSC award, which is a special type of compensation awarded to veterans with a combat-related injury or disability.
How to Apply for Concurrent Receipt
To apply for concurrent receipt of military retirement pay and VA disability benefits, a veteran must submit a claim to the VA. The VA will then review the claim and make a determination on whether the veteran is eligible for concurrent receipt.
Benefits and Drawbacks of Concurrent Receipt
There are both benefits and drawbacks to receiving both military retirement pay and VA disability benefits. Some benefits include:
• Increased income: Receiving both military retirement pay and VA disability benefits can increase a veteran’s overall income.
• Financial security: Having a stable income can provide financial security for veterans and their families.
However, there are also some drawbacks to consider:
• Tax implications: Receiving both military retirement pay and VA disability benefits can have tax implications, as both types of income are taxable.
• Increased complexity: Receiving both military retirement pay and VA disability benefits can add complexity to a veteran’s financial situation, making it more difficult to manage their finances.
Table: Comparison of Military Retirement Pay and VA Disability Benefits
Military Retirement Pay | VA Disability Benefits | |
---|---|---|
Purpose | To provide financial support to veterans after retirement | To provide financial support to veterans with service-connected disabilities |
Eligibility | Must be a military retiree with at least 20 years of service | Must be a veteran with a service-connected disability |
Amount | Varies based on length of service and rank | Varies based on severity of disability |
Taxability | Taxable | Taxable |
Impact on Other Benefits | May impact other benefits, such as Social Security | May impact other benefits, such as Medicaid |
Conclusion
In conclusion, the answer to the question "Can you collect military retirement and VA disability?" is complex and depends on a variety of factors. Veterans who meet the eligibility criteria and are receiving both military retirement pay and VA disability benefits may be able to receive their full benefits without reduction. However, it’s important for veterans to carefully consider the tax implications and potential drawbacks of receiving both types of benefits. By understanding the rules and regulations surrounding concurrent receipt, veterans can make informed decisions about their financial future.