Disability check coming from retirement?

TSgt Mark Vaughn — Thu, 17 Jul 2014 11:57:03 -0400

I understand that the money I receive for disability is tax exempt money, however what sense does it make to steal money from my small retirement check and then disguise it as a disability payment? I just don't get it.

Response by SSG Private RallyPoint Member made Oct 11 at 2014 4:28 AM

SSG Private RallyPoint Member — Sat, 11 Oct 2014 04:28:12 -0400

It definitely sucks for that to happen. I would hope they eventually make it so we can receive both regardless of the ratings. If your ratings are less than 50% then the payment will be taken out of retirement pay. The only benefit to that is, as you stated, disability is tax free.

Let's say your retirement pay is $1500 per month. Your going to be taxed for that full $1500. Now let's say your disability payment is $400. Your total compensation will still be $1500 but now you will receive $400 tax free and you will be taxed on only $1100. It's not much but it's a little bit more money in your pocket.

Response by MAJ Robert (Bob) Petrarca made Oct 11 at 2014 5:58 AM

MAJ Robert (Bob) Petrarca — Sat, 11 Oct 2014 05:58:22 -0400

It's the government. None of us are supposed to get it.

Response by PO1 Private RallyPoint Member made Oct 11 at 2014 8:52 AM

PO1 Private RallyPoint Member — Sat, 11 Oct 2014 08:52:41 -0400

TSgt Mark Vaughn I feel your pain. If you're only receiving disability compensation for say...10% from the VA it really doesn't make a lot of sense. However, should you receive disability compensation for say... 50% then you will find that you receive both the disability payment (still tax free) AND the regular retirement payment (but now you will pay full taxes on the retirement). The problem will be going through enough pain and irritation to get that 50% rating from the VA.

Response by SFC William Swartz Jr made Oct 11 at 2014 8:54 AM

SFC William Swartz Jr — Sat, 11 Oct 2014 08:54:33 -0400

Unfortunately unless your disability rating is less than 50%, then that portion will only come as a tax exempt portion of your retirement. I dealt with this until my rating was changed from 10% to 60% this past August when the VA finally approved the sleep apnea I was diagnosed with and treated for prior to retirement. Like the good MAJ said though, "it is the government....."

Response by SGT Private RallyPoint Member made Oct 11 at 2014 5:37 PM

SGT Private RallyPoint Member — Sat, 11 Oct 2014 17:37:46 -0400

Agreed it does not make sense. There has to be a way to change that. We need to take charge and stand up for what we have earned. I personally joined the VFW and American legion so I can assist and be another voice for us. I am greatful for our past veterans such as WW2 Korean and Vietnam veterans. We need to start stepping up to the plate with these organizations and learning from the older more experienced vets. If we don't these organizations are going to die off with our older brothers and sisters.

Response by SFC Mark Merino made Oct 11 at 2014 9:35 PM

SFC Mark Merino — Sat, 11 Oct 2014 21:35:16 -0400

I'm 100% disabled and was retired at 50% longevity/disability Army. My take home pay is a couple dollare more than If I was a day 1 PVT with 6 months in instead of an E-7 over 20. How does this make sense? I wouldn't change one thing about my Army career but it seems very one sided and unfair.

Response by CW5 Private RallyPoint Member made Oct 11 at 2014 9:49 PM

CW5 Private RallyPoint Member — Sat, 11 Oct 2014 21:49:53 -0400

You make a good point, TSgt Mark Vaughn. I think "we" as a military community are so used to doing business like this that we take it for granted, but it really doesn't make sense. I guess I think that the right thing to do would be to receive disability pay on top of anything else, such as retirement pay. I'm sure there's a law that says it can't be that way, but that would certainly make much more sense. (And I say that, acutely aware of the entitlement mentality question.)

Response by MAJ Private RallyPoint Member made Oct 11 at 2014 11:12 PM

MAJ Private RallyPoint Member — Sat, 11 Oct 2014 23:12:40 -0400

It's amazing how the government will go to lengths to save money by pilfering money earned from retirement pay (which is a separate issue from any disability - both were earned separately and not related) and go to great lengths to blow money left and right for other people who have contributed absolutely nothing.

Response by SFC Dr. Joseph Finck, BS, MA, DSS made Oct 12 at 2014 8:46 AM

SFC Dr. Joseph Finck, BS, MA, DSS — Sun, 12 Oct 2014 08:46:16 -0400

My opinion only, but we need concurrent receipt for all Veterans who rate a disability payment from the VA and a retirement check from DFAS. No percentage, no adjustment, no calculations, just payment.

I am a Chapter 61 retiree and respect the income I receive, but it would be nice if my income was greater. I am forced to continue working in spite of pain, difficulties standing and walking, and just not feeling well. If I had concurrent receipt, I might be able to stay home and still care for my family. This avoids me feeling like a waste of human DNA.

Thank you,

Response by MSgt Ronald Hays made May 13 at 2015 2:22 PM

MSgt Ronald Hays — Wed, 13 May 2015 14:22:49 -0400

Mark, you're absolutely right. There is a house bill circulating that will remove that prohibition but if approved, we won't get the back pay. Also if you don't know, veterans with 50% disability or higher receive FREE medicine from the VA, whether service related or not. We are being discriminated against.

Response by TSgt Kenneth Ellis made Jun 15 at 2015 1:44 AM

TSgt Kenneth Ellis — Mon, 15 Jun 2015 01:44:44 -0400

I agree with you. You won't get a separate check until you are 50 percent disabled.

Response by MAJ Ken Landgren made Dec 6 at 2015 12:56 PM

MAJ Ken Landgren — Sun, 06 Dec 2015 12:56:29 -0500

It's my understanding they want to max your tax free disability pay.

Response by 1stSgt Eugene Harless made Mar 13 at 2016 6:33 PM

1stSgt Eugene Harless — Sun, 13 Mar 2016 18:33:23 -0400

It happens up to a certain percentage, and it could be changing as we speak. If you receive 50% VA disability compensation or higher your retirement is NOT affected, it runs concurrent. Anything under 50% and the ammount of the VA Pension is deducted from your retirement, The sole advantage is that VA Pensions are not Taxed. The ammount you come out ahead is neglible,
Also if your pension/disability is combat related, it is to be paid concurrent, regardless of the percentage.

Response by SSG Trevor S. made Mar 13 at 2016 7:10 PM

SSG Trevor S. — Sun, 13 Mar 2016 19:10:25 -0400

I'm at 10% myself, with a ton on appeal. I should run for McCain's Senate seat for a term then retire again. Way better deal.