By Dr. Sidney Ordway, BVA National Treasurer
Editor’s Note: Dr. Ordway’s discussion is the first
in a series of Bulletin articles on the subject of VA claims.
He has compiled the information in an effort to dispel the ambiguity
and misconceptions that often accompany the process.
Description of Benefits
The VA compensation program provides you monthly benefits if
you are disabled because of an injury or disease incurred in or
aggravated during your military service, and for certain conditions
which may develop after your release from active duty. Benefits
are authorized on the basis of the severity of your claimed disability
or disabilities. If your service-connected disabilities are judged
to be 30 percent or more, you are entitled to additional allowances
for your dependents. Your eligible survivors may also be entitled
to benefits (Dependency and Indemnity Compensation, or DIC, will
be explained later in the series).
Military Retired Pay
By law, military retired pay affects payment of VA compensation
benefits. If you receive military retirement, you may initiate
a waiver of your retired pay to receive the full amount of VA
compensation. Until the waiver takes effect, your compensation
will be adjusted or withheld, depending on the amount of military
retired pay to which you are entitled. The advantage of waiving
military retired pay for VA compensation is that VA benefits are
not taxable.
You may be entitled to receive military retired pay and VA compensation
concurrently. Concurrent Receipt (CR) means that qualified military
retirees will be paid both their full military retirement pay
and VA disability compensation. This recently passed law phases
out the VA disability offset, which means that military retirees
with 20 or more years of service and a 50 percent (or higher)
VA-rated disability will no longer have their military retirement
reduced by the amount of their VA disability compensation. As
it presently stands, veterans eligible for CR receive a portion
of their pay, which will be increased yearly. By 2014 veterans
eligible for CR will receive their full retirement pay and VA
compensation benefits.
There is a second type of Concurrent Receipt, which is Combat
Related Special Compensation (CRSC). CRSC is based on battlefield-related
injuries but also includes conditions such as Agent Orange exposure.
CRSC started on the same progressive pay increase plan as CR.
At the end of 2004, however, individuals who were rated 100 percent
for service-connected disabilities due to battlefield injuries
were fast tracked to their full retirement pay. These individuals
retained their VA compensation at the same time.
Although Congress has the power to accelerate the pay schedule,
the remaining CRSC recipients are scheduled to receive full benefits
in 2014. Under CRSC, individuals with 10 percent service-connected
disabilities (provided they are battlefield related) are able
to apply for a portion of their retirement pay. CRSC, like VA
compensation, is tax-free. CR is not tax-free. CR is automatically
paid by the Department of Defense (DOD) while, conversely, the
veteran must apply for CRSC benefits. The application is completed
on a DD Form 2860, which is then submitted to the individual branch
of service (addresses are part of the form).
The aforementioned programs are run by DOD. They are not VA programs.
If you qualify for Concurrent Receipt, you should have automatically
received an increase in your military retirement starting in January
2004.
To qualify for Concurrent Receipt, you must 1) be a military
retiree with 20 or more years of service (this includes Chapter
61 Medical Retirees with 20 years or more, or National Guard and
Reserve with 20 or more good years), and 2) have a service-related
VA disability of 50 percent or higher (for CRSC, only 10 percent
disability is required, but the disability must be battlefield
related).
For more information, contact the Defense Finance and Accounting
Service (DFAS) at 800-321-1080.
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