DoD Severance pay & VA Disability pay?

SPC Private RallyPoint Member — Thu, 04 Nov 2021 18:37:47 -0400

I’m going through MEB right now, due to PTSD, MDD & Narcolepsy. I understand you can’t receive both VA & Severance pay at the same time and that Severance pay must be repaid in full before receiving VA benefits. My question is, can I just opt out of even getting Severance pay to begin with and just receive VA from the get-go? From my understanding 30% DOD is considered medical retirement. Anything under is your base pay x2 for the amount of years in service in one lump-some. My friend got 80% VA and 20% DOD, he said he’s getting $20k upfront but has to repay it by taking it out of his VA disability for x amount of years. Just wanted to verify and see if I can just opt out of receiving severance or not?

Response by SPC Private RallyPoint Member made Nov 4 at 2021 6:39 PM

SPC Private RallyPoint Member — Thu, 04 Nov 2021 18:39:23 -0400

Or option 2. If they do make me get severance, can I just pay it right back directly or what? Just planning ahead.

Response by Lt Col Charlie Brown made Nov 4 at 2021 6:43 PM

Lt Col Charlie Brown — Thu, 04 Nov 2021 18:43:10 -0400

Sgt Private RallyPoint Member thoughts?

Response by SSG Private RallyPoint Member made Nov 4 at 2021 6:46 PM

SSG Private RallyPoint Member — Thu, 04 Nov 2021 18:46:12 -0400

This would be a question for the PEBLO. According to DFAS: You must meet all of the following requirements to be eligible:

be found unfit for duty,
have less than 20 years of service,
and have a disability rating of less than 30%.

So if you are at 30%, I’m not sure if you qualify for severance pay. Once again, talk to your case manager.

Response by SFC Private RallyPoint Member made Nov 5 at 2021 12:26 PM

SFC Private RallyPoint Member — Fri, 05 Nov 2021 12:26:45 -0400

You don't know what your IDES rating will be so it's a little early to be planning on this. But if you do receive the medical separation, take the money. There is zero benefit to you not accepting the payment. Think of it as an upfront payment on your VA money, especially since it may be months before you receive your VA money if you did refuse to take the Separation pay.

Response by SSgt Christophe Murphy made Nov 8 at 2021 8:52 AM

SSgt Christophe Murphy — Mon, 08 Nov 2021 08:52:45 -0500

You are putting the cart before the horse. When your findings come back discuss everything with your PEBLO and make a decision then. You can ask them questions now if you want to but this is a big hypothetical