Posted on Jul 21, 2020
How does disability effect your military retirement?
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How does receiving a disability effect your military retirement?
Disability
Retirement
Department of Veterans Affairs (VA)
Finance
Posted 4 y ago
Responses: 2
If you are 50% or more you receive both your military pension and disability pay. Anything under 50% your will receive your disability pay and they will deduct that from what ever your military pay is.
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COL David Turk
There’s a caveat to that. If you’re retiring under the reserve side (start collecting retired pay at 60), then you’ll start collecting your VA disability regardless of rating. If your rating is under 50%, then when you start collecting your military retired pay, the separate VA disability payment disappears. However, with respect to your military retired pay, the dollar amount you were getting from the VA is considered “non-taxable”.
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It all depends. My father retired from the Air Force with 21 years and change and has his full retirement. He later went through the VA and got rated at 40% due to serve related and what went on while he was serving. He got that disability in addition to his full military retirement with no drop.
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