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VA/Military Pay Dual Compensation

VA/Military Pay Dual Compensation. IT’S THE LAW. Active or inactive duty training pay cannot legally be paid concurrently with Department of Veterans Affairs (VA) disability compensation or pension benefits 10 USC 12316 38 USC 5304(c). 10 USC 12316.

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VA/Military Pay Dual Compensation

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  1. VA/Military PayDual Compensation

  2. IT’S THE LAW • Active or inactive duty training pay cannot legally be paid concurrently with Department of Veterans Affairs (VA) disability compensation or pension benefits • 10 USC 12316 • 38 USC 5304(c)

  3. 10 USC 12316 • TITLE 10 > Subtitle E > PART II > CHAPTER 1209> § 12316. Payment of certain Reserves while on duty (a) Except as provided by subsection (b), a Reserve of the Army, Navy, Air Force, Marine Corps, or Coast Guard who because of his earlier military service is entitled to a pension, retired or retainer pay, or disability compensation, and who performs duty for which he is entitled to compensation, may elect to receive for that duty either— (1) the payments to which he is entitled because of his earlier military service; or (2) if he specifically waives those payments, the pay and allowances authorized by law for the duty that he is performing. (b) Unless the payments because of his earlier military service are greater than the compensation prescribed by subsection (a)(2), a Reserve of the Army, Navy, Air Force, Marine Corps, or Coast Guard who because of his earlier military service is entitled to a pension, retired or retainer pay, or disability compensation, and who upon being ordered to active duty for a period of more than 30 days in time of war or national emergency is found physically qualified to perform that duty, ceases to be entitled to the payments because of his earlier military service until the period of active duty ends. While on that active duty, he is entitled to the compensation prescribed by subsection (a)(2). Other rights and benefits of the member or his dependents are unaffected by this subsection.

  4. 38 USC 5304(c) • TITLE 38 > PART IV > CHAPTER 53 > § 5304. Prohibition against duplication of benefits (a)(1) Except to the extent that retirement pay is waived under other provisions of law, not more than one award of pension, compensation, emergency officers’, regular, or reserve retirement pay, or initial award of naval pension granted after July 13, 1943, shall be made concurrently to any person based on such person’s own service or concurrently to any person based on the service of any other person. (2) Notwithstanding the provisions of paragraph (1) of this subsection and of section 5305 of this title, pension under section 1521 or 1541 of this title may be paid to a person entitled to receive retired or retirement pay described in section 5305 of this title concurrently with such person’s receipt of such retired or retirement pay if the annual amount of such retired or retirement pay is counted as annual income for the purposes of chapter 15 of this title. (b)(1) Except as provided in paragraphs (2) and (3) of this subsection and in section 1521(i) of this title, the receipt of pension, compensation, or dependency and indemnity compensation by a surviving spouse, child, or parent on account of the death of any person, or receipt by any person of pension or compensation on account of such person’s own service, shall not bar the payment of pension, compensation, or dependency and indemnity compensation on account of the death or disability of any other person. (2) Benefits other than insurance under laws administered by the Secretary may not be paid or furnished to or on account of any child by reason of the death of more than one parent in the same parental line; however, the child may elect one or more times to receive benefits by reason of the death of any one of such parents. (3) Benefits other than insurance under laws administered by the Secretary may not be paid to any person by reason of the death of more than one person to whom such person was married; however, the person may elect one or more times to receive benefits by reason of the death of any one spouse. (c) Pension, compensation, or retirement pay on account of any person’s own service shall not be paid to such person for any period for which such person receives active service pay.

  5. Most NG members paid for 63 training days per Fiscal Year • 48 Unit Training Assemblies (UTA) • Traditional Drill Weekend, Sat. & Sun. = 4 UTA’s or 4 days of military pay • 15 days of Annual Training (AT)

  6. Choices • Waive VA benefits for number of days military training was accomplished -or- • Waive military pay and allowances for number of training days • This option will give most veterans LESS money Waiver must be completed annually on a VA Form 21-8951

  7. VA Form 21-8951 – Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances VA should send to veteran in the first quarter of CY for last FY Take to unit for completion and correction and commanders signature Sign, copy for Unit records, copy for your records and return to VA within 60 days

  8. Indebtedness to the Federal Government • In most instances, the VA will not recoup monies already paid, but will withhold from future compensation payments. • If at all possible, do not budget with it. If you must, be prepared to do without a VA comp payment for a minimum of 2 ½ months each year.

  9. Examples 1 Unit Training Assembly (UTA) = 1 day military pay MUTA 4 = 4 days military pay (Saturday & Sunday drill)

  10. SPC JD, single, no children, 4 years in NG, OIF veteran, 30% VA disability 30% VA disability = $348/month $348 ÷ 30 (days/mo) = $11.60/day VA comp 1 UTA = $64.53 military pay SPC JD can waive (or pay back) non-taxable VA compensation of $730.80 for 1 year (63 UTAs x $11.60) or he can waive (pay back) $4093.11 in taxable military pay ($64.53 x 63 UTAs)

  11. SFC Q., married, 2 children, 12 years in the NG, OEF veteran, 50% VA disability 50% VA disability W/spouse & 2 children = $867/month $867 ÷ 30 (days/mo) = $28.90/day VA comp 1 UTA = $114.77 military pay SFC Q. can waive non-taxable VA compensation of $1820.70 for 1 year (63 UTAs x $28.90) or she can waive $7230.51 in taxable military pay ($114.77 x 63 UTAs)

  12. CPT A., single, 1 child, 15 years in the NG, DS/DS veteran, 40% VA disability 40% VA disability W/1 child = $538/month $538 ÷ 30 (days/mo) = $17.94/day VA comp 1 UTA = $184.78 military pay CPT A. can waive non-taxable VA compensation of $1130.22 for 1 year (63 UTAs x $17.36) or he can waive $11641.14 in taxable military pay ($184.78 x 63)

  13. Why do I have to pay it back?I didn’t know........Nobody told me.....

  14. VA Form 21-8764 When you received your VA Disability Rating Decision, a VA Form 21-8764 – Disability Compensation Award Attachment, Important Information – was attached. It states that your payments may be affected by receipt of active duty or drill pay as a reservist or as a member of the Federally recognized National Guard.

  15. Things to Remember • VA compensation is non-taxable • Additional military duty is reportable (e.g. RMAs, ADT, ADSW, ADOS, etc.) • If you choose to waive military pay, automatic payments from your drill pay will have to be paid by other methods. (e.g. SGLI, TRS, TSP, UCCI, CFC, etc.) • If you return to active duty (mobilization or AGR hire), you must suspend VA comp as you will be drawing military pay 24/7 and will incur a huge debt to the government.

  16. Questions? Contact your Transition Assistance Advisor At (TAA telephone #) (TAA email address)

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