Will applying for Voluntary Separation Pay impact your career if denied?

2014-09-03T11:53:33-04:00

I never had the opportunity to apply for this on Active Duty, but know many close friends that applied for VSP and have been denied. Do you think applying for VSP adversely impacts your career progression in the future? Why or why not. I'm curious to know how the community generally feels about this issue facing many of our members.

Response by PO1 Private RallyPoint Member made Sep 3 at 2014 11:57 AM

2014-09-03T11:57:47-04:00

It's a decoy incentive! The DoD know what they're doing. Money talks too. I think overall you'll be at a loss individually.

Response by TSgt Angela Allmon made Sep 3 at 2014 12:48 PM

2014-09-03T12:48:34-04:00

I'm not sure about it negatively impacting your career because it's there to assist those who are not financially prepared for transitioning to civilian life.
However, if you are awarded VSP and later receive a VA compensation there is a schedule for recoupment of the VSP. It can be found at M21-1MR Part III, Subpart v, Chap 4, Section B...or do a search on va.gov

Response by MSG Wade Huffman made Sep 3 at 2014 12:54 PM

2014-09-03T12:54:22-04:00

I can only see it impacting local promotions, if that. I'm not sure exactly how AF promotion boards work, but on the Army side, I'm not sure how a centralized board would have any visibility of the action. I may be seeing this through 'rose colored glasses' though.
In the end, I would still encourage the service member to follow their instincts, knowing that the buy out is peanuts compared to a retirement (assuming normal life expectancy).

Response by TSgt Joshua Copeland made Sep 3 at 2014 5:16 PM

2014-09-03T17:16:03-04:00

I have heard quite a few Chief's and Commander's talk about what they would do with officers and SNCO's that applied for VSP/TERA and did not get approved. Most of it was not good.

If a CC has to rack and stack his Officers or SNCO's even NCO's (which he will have to do with the new EPR system), where is he going to give his very limited (10%) of Definitely Promotes to the SNCO/NCO that already showed they have the desire for one foot out the door? Especially when that DP holds a huge amount of weight for promotion points?

Who are they going to vector and groom more? The Officer/SNCO/NCO that is there getting the job done and did not apply or the person that tried to leave and got denied?

Right or wrong, there will be the perception that the person who applied for VSP/TERA has one foot out the door.

Response by Maj Private RallyPoint Member made Oct 3 at 2014 5:58 PM

2014-10-03T17:58:29-04:00

Most certainly it would. If I was a SQ/CC and someone put in to leave and then didn't, they'd be far from my first choice for anything. Simply the truth and we all know it.

Response by SSG Robert ORourke JR made Oct 16 at 2022 10:14 AM

2022-10-16T10:14:49-04:00

As far as Army goes, if you get meb or mmrb, you are told any monies awarded by the army IS GOING TO BE TAKEN BACK BY VA! They worded it as VA being separate entity than Army, so if you were given 25,000 meb money & took it, then thought you just file for VA later, wrong. If after you took $, filed for VA % & say got 70%, unknown number of 1,000 monthly. You would be subject to recoupment & no VA paid until that $25,000 was repaid to Army.
I also found that I took the 30,000 redux at my 15 year mark. Lose 5% of your pension percentage in exchange for cash payment. I was in combat zone so got 30g tax free! Now here it is 2022 & 11 yearz have gone by of my retirement. Catch is your pension stays at retirement rate. All COLA increases, pay raises, etc, dont get any due to redux! All part of the huge contract book they give you upon signature. Also have finance personell ensure you understand YOU CAN NEVER GET MORE BY USING REDUX!!!

JUST HEADS UP...
NO FREE MONEY...