Is the amount of money on your disability check subtracted from your retirement check?

Cpl Jeff Ruffing — Thu, 24 Mar 2016 12:24:40 -0400

This veteran states that the amount of his disability check is subtracted from his retirement check. Is this true? Anybody else experience the same thing?

Response by CSM Michael Poll made Mar 24 at 2016 12:39 PM

CSM Michael Poll — Thu, 24 Mar 2016 12:39:50 -0400

Your VA Disability check can be subtracted from you retirement, unless you are over 50% rated from the VA (I may be wrong on the percentage) If you are under the minimum you will have your retirement check reduced due to the disability check, if you are over the minimum percentage you will collect full retirement check as well as the full percentage of your VA disability.

Response by SFC William Adamek made Mar 24 at 2016 12:49 PM

SFC William Adamek — Thu, 24 Mar 2016 12:49:36 -0400

Currently, anyone that is retired with 20 years or more and has 40% disability or less has their retirement reduced by the amount of their disability payment. A retiree with 20 years or more and 50% or more disability has "Concurrent Receipt" come into play. This allows for the receipt of their full retirement as well as their full amount of disability monies.

Response by SSG Trevor S. made Mar 24 at 2016 12:54 PM

SSG Trevor S. — Thu, 24 Mar 2016 12:54:57 -0400

My retirement check is reduced by my disability payment rating, then the VA pays it back to me non-taxable. If my appeal changes the rating to beyond 50% it is my understanding that it will change to two separate payments.

Response by Sgt Aaron Kennedy, MS made Mar 24 at 2016 1:06 PM

Sgt Aaron Kennedy, MS — Thu, 24 Mar 2016 13:06:13 -0400

I have a friend who doesn't get a "retirement" check at all. She gets the disability check (100%) but because she served less than 20, she is/was not eligible for concurrent receipt. Her disability check is more than her retirement check and is tax exempt.

Response by SFC Dr. Joseph Finck, BS, MA, DSS made Mar 24 at 2016 1:31 PM

SFC Dr. Joseph Finck, BS, MA, DSS — Thu, 24 Mar 2016 13:31:21 -0400

Cpl Jeff Ruffing I am a Chapter 61 Retiree (Medical). My VA Disability is 100% and my US Army Disability rating is 70%. I have 14 years of active duty and 9 years of Reserve time. Because my Disability pay is greater than my retired pay, I receive no retired pay. I do receive Combat Related Special Compensation (CRSC) but do not receive Concurrent Retirement Disability Pay (CRDP) . There have been several bills proposed to provide CRDP for medical retirees, but each bill has recommended this benefit based on your Length of Service (LOS) retirement rate as opposed to the Disability percentage retirement rate. This is typically a significant difference and in most cases would result in a pay reduction.

In my opinion the system is not quite fair.

Response by SFC Russell Thompson made Mar 24 at 2016 3:41 PM

SFC Russell Thompson — Thu, 24 Mar 2016 15:41:58 -0400

That retired Vet should have his VA benefits reevaluated. Some Vets retire and never go back to the VA to get an update on the changes in pay. To my understanding if you're 50% or more retirement and VA disability are separate entity and concurrent receipt (CRDP)/(CRSC) takes affect. Those rules took effect several years ago and he should have gotten a letter explaining which catagory he should've qualified for. Just pay a visit to your nearest VA Regional Office or DAV office to have it explained to him by someone that does this for a living not just a discussion.

Response by MAJ Ken Landgren made Mar 24 at 2016 3:52 PM

MAJ Ken Landgren — Thu, 24 Mar 2016 15:52:11 -0400

Could it be he was a reservist?

Response by PO1 Kyle Crippen made Mar 24 at 2016 4:22 PM

PO1 Kyle Crippen — Thu, 24 Mar 2016 16:22:35 -0400

Yes my whopping 10% is, and then comes from the VA tax free.

Response by SSgt Chuck “Gunz” Gundlach USMC Ret., MBA made Mar 24 at 2016 8:49 PM

SSgt Chuck “Gunz” Gundlach USMC Ret., MBA — Thu, 24 Mar 2016 20:49:15 -0400

If you are not receiving 50% or more in disability, your retirement is reduced, and you receive two checks. I was rated at 50% at retirement, but with the VAs funny math, only received 40% disability, and this was reduced from my retirement check and I received two checks. The Retirement check was taxed, and the Disability check was not. I went back to have my back pain re-evaluated. Oddly enough, they did not up the percentage for my back portion, but instead have me 10% for a secondary problem derived from my initial back issues. This brought MD to 60% disabled, and again with the VAs funny math, I now receive 50% disability. But, I now get my full retirement check, which is also fully federally taxed, I moved from VA to KY, so State Tax was eliminated...and I receive as separate disability check. So overall, although not big money, I bettered my situation on a couple fronts.

Response by SCPO Private RallyPoint Member made Mar 24 at 2016 9:09 PM

SCPO Private RallyPoint Member — Thu, 24 Mar 2016 21:09:28 -0400

Yes, it is. But I also live in a state that still deducts federal income tax from retirement check, as well. Many states don't do that, which is financial plus to those military retirees that live in them.

Response by SCPO Private RallyPoint Member made Mar 24 at 2016 9:09 PM

SCPO Private RallyPoint Member — Thu, 24 Mar 2016 21:09:29 -0400

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Response by SCPO Private RallyPoint Member made Mar 24 at 2016 9:09 PM

SCPO Private RallyPoint Member — Thu, 24 Mar 2016 21:09:49 -0400

Yes, it is. But I also live in a state that still deducts federal income tax from military retirement checks, as well. Many states now don't do that, which is real financial plus to those military retirees that live in them.

Response by SCPO Private RallyPoint Member made Mar 24 at 2016 9:09 PM

SCPO Private RallyPoint Member — Thu, 24 Mar 2016 21:09:50 -0400

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Response by TSgt Renona Crowden made Mar 24 at 2016 9:55 PM

TSgt Renona Crowden — Thu, 24 Mar 2016 21:55:29 -0400

Only if you are rated below 50% if your rating is 50% or more you draw the all your retirement and your VA