No disability pay until separations pay is recouped?

Yes, and of course I took it to soften the landing into the civilian life. If I had known it would get fucked on the back end I would have begged to not get it. The loss of expected pay, much less for two years really hurts my family.

That's rough. I wish I could do more, but I don't have the necessary knowledge base on this one. Have you tried contacting a near by Veteran's Center? Perhaps they have more resources you can tap.

http://www.va.gov/directory/guide/vetcenter.asp?isFlash=0

Correct SSG Genaro Negrete, but it applies to all service branches. It's covered under the DoD FMR(finance mgmt regualtion) and under the VA, 38 CFR(code of federal regulations). In a nutshell, it prevents double dipping. You can try to write your congressman but it''s congress who made it law.

Anytime a service member accepts severance pay it's based on several formulas. The moment a service member files for disability compensation claim with the VA, by law, that money must be recouped. However there are circumstances where it would not be recouped. Disability severance pay is excluded from recoupment by the VA when it is awarded for a disability incurred in a combat-zone or during the performance of duty in combat-related operations. This determination is made by the PEB as approved by USAPDA and is documented on the DA Form 199(PEB Proceedings).

Taxes will be withheld on active duty cases separating with severance pay. Procedures exist for the local servicing finance office to coordinate with DFAS-Indianapolis for refund of the taxes withheld. The request and required documentation must be received at DFAS by 31 December of the year in which the severance payment was received. In the alternative, the Soldier may seek a refund when filing their tax return.
(see IRS Publication 17 when looking to get a refund of your tax portion of your severance pay)

Thanks, I know you are usually pretty knowledgable. It wasn't a disability thing though. It was "thanks for totally qualified but we still aren't gonna keep ya".

I'm going through the MEB process right now. The level of bureaucracy involved in processing this is mind boggling. I tried to advocate for this type of thing to be briefed in a Leader Professional Development class. There are a million ins and outs for this. The biggest thing I've heard from my Physical Evaluation Board Liaison Officer (PEBLO) is that you can't compare cases. Each is adjudicated on it's own merit.

The problem is that team leaders, squad leaders, and platoon sergeants don't often have a solid grasp of the process. Even if you have a soldier going through the system, there isn't a working knowledge of what to expect and how to navigate the system. I've been hounding my PEBLO for updates, knocking on doors and making phone calls to try to wrap my head around what is expected of me and what to expect out of this system.

Sgt Jennifer Mohler , how does the Marine Corps handle processing it's marines out of service and coordination with the VA?

I don't know. I was denied reenlistment because of downsizing the service.