Should QMP severance packages be counted against you for VA disability compensation?

SSG (Join to see) Absolutely NOT! As was very well stated by MAJ Ken Landgren "Severance is earned. Disability is eared, so why do they offset by taking away what is earned?"

Several discussions on this topic. Under this current rule, that is unfair in my opinion, a Soldier is given incentive to not QMP. Rather take the administrative separation, you would have been far better off going into the IDES process and receiving your DOD and VA rating prior to discharge.

Been there and done that. I was medically separated in July of 2004 (I have discussed this very topic on RP). I got a severance, which at that time was based on the formula of 2 x base x number of years served. My severance was $36,014.40. After 28% taxation (yes, it's taxed), it came to $25,930. Yes, it is taxed.
Got out, went to the VA and was deemed to be 20% disabled. I did not see a penny of my VA money until 2013. I had to pay back all $36,014.40.
They call it double dipping. I am not sure how or why. DA/DoD and the VA have separate budgets and different accounting systems. That money doesn't come from the same pool.
Yet somehow, the current federal law says, "sorry we broke you beyond usefulness service member. Here is some money to assist your transition. By the way, it's just a loan. We will be getting it back."
Unfortunately, I didn't find out that it would be recouped until I had been out for 6 months and called the VA to ask why I had not started receiving benefits.

Is this article about the same thing?
http://www.militarytimes.com/story/military/benefits/veterans/2015/10/18/separation-pay-payback/73925870/

I understand what you're going through. When I was 1 year from re enlisting I was offered an early out bonus if I ETSed at 14 years, or I could wait till my actual ETS date and get out with nothing, as I would not be allowed to re enlist do to the perm profile I had for Injuries sustained during service. Amazingly enough when they did my exit physical they said I was fine and did not qualify for a medical. Anyway I received 37k as a severance and when I got out filed for disability with the VA. After they approved 30% they told me I would not receive any pay until it balanced out against the severance pay. The problem is that the severance is taxable were as disability pay is not. In your case you said you get 5k a month so no disability pay for 6 months. It took 5 years for mine to balance out. It it a long drawn out story but I was able to get Uncle Sam to give back all the taxes he took from my severance by having it converted to disability pay. If you have a disability rating from VA already, they should be able to provide you with how much they would have paid you each month had you not received the 30k from military. If you need to talk, [login to see]

I haven't kept up with all various separation programs that are in effect now as compared to when we went through them in the 90s. I have an idea as to why this policy is the way it is, based on my experience running a software company after I retired. So I'm going to suggest a possible way the military/VA is looking at this, but if it is all screwed up and not applicable, please just disregard what follows.

Let's say I had an employee making $30k a year who had worked for us for many years. I decided I needed to downsize the company workforce. I want to soften the blow for the employee, so I offer severance pay. But what does that pay really represent? It doesn't actually represent anything earned for the years already worked. That's what his salary covered. Likewise, in the military, you do not "earn" severance pay; you were paid in full for your services as you worked them. So for my employee (and for a service member) severance pay represents a situation where you are continuing to recieve pay, even though you are no longer working. In the civilian world, often instead of having an employee hang around the company for a month knowing they will be fired in 30 days, we give them 30 days pay and have them leave. But in a way, they are still receiving their salary.

My guess is that the military looks at severance pay in a similar fashion. It is not pay due for services already rendered. It is in essence, a contiunation of salary for X amount of months, without any obligation to continue to work. Now, as to the disability pay, no soldier receives it while still on active duty receiving their salary. It doesn't kick in until the salary stops. So if you consider severance pay as a continuation of salary, then you can see why the disability pay wouldn't start until you quit receivng that salary. I think the VA and military look at severance pay as the equivalent of active duty salary, and therefore disability can't start until that is over. And it's considered over when the amount of the severance pay is covered by the amountof the disability pay withheld.

So that's my theory, but it's not based upon the reading of any military or VA regs, so it may be completely wrong. and the analogy may not be a great fit. But basically the military is saying that your are entitled to X amount of disability pay a month once you are out; but if you have received sevarance pay, that supercedes the disability pay. So you can't have it both ways. But given the way things work in the civilian world, I can see how they came up with this policy.

That is the rule it is a stupid rule but that is the rule.

You get paid by whatever agency is paying the most. There are other circumstances and programs that go in depth. So if the Army is paying you a severance that is more than what your VA disability rating is then your getting paid by Army. If your VA benefits are more than your severance, you will get the VA pay. You can't double dip from both. Of course there are other circumstances.

CDRP
CRSC
VA waiver just to name a few things.

I feel like we are not getting the full story. maybe that's just me.

That sounds bizarre SSG (Join to see). If you have service-connected disabilities you are entitled to VA disability status unless you are medically retired from the military.