What is the back-pay entitlement when the VA states they made an error on my claim?

SSgt Gregory Johnson — Thu, 14 Feb 2019 21:53:13 -0500

I should have been paid 20% since April 2004, but only recieved 10% since then to present, I filed for an increase and have since been told I will be at 50% as of 1 Nov 2018. Now I am retired from the Air Force and understand the concurrent pay is only for the 50%. So the is 10% for 14.5 years that they owe me some sort of back pay since I was taxed on 90 of my military retirement instead of 80%. Even if it's like $20 a month that could be a significant amount

Response by CAPT Kevin B. made Feb 15 at 2019 12:30 AM

CAPT Kevin B. — Fri, 15 Feb 2019 00:30:28 -0500

I'm trying to remember my situation as there's some similarity. Don't know what your retirement date was but it calculates differently pre and post retirement. Pre retirement, they take the delta at the rate for each year. That's what they'll owe you. Post retirement, there is an offset of retirement pay up to 40% in that they reduce the pay by the amount they give you. Only benefit is the tax write off. Whenever the 50% date applies, you get 50% with no retirement pay reduction. That 50% threshold is important as VA does everything they can to push people down to 40%. Presuming you retired before NOV 18, then they'll owe you a differential there too and a restoration of some retired pay. Unless there's a different structure since they ran my numbers, I think that's correct.