Retired Pension and 100% disability

[Jhettinger]

Normally if you get paid for a disability they reduce your pension by the disability amount.
So you end up with the same check every month.
So if I get $3,000 a month pension and $3,000 a month 100% disabled (ALS), is my final check for the month going to be $3,000, just different taxable income.? or will it be $6,000?

 

[Atsugi]

"Normally if you get paid for a disability they reduce your pension by the disability amount."

NO. NOT TRUE AT ALL.

Your military pension will continue as is.
Your disability payment will be nontaxable and will not affect your pension. You will get both.
Also, as your progression progresses, you will receive SMC and A&A compensation. These, too, are not taxable, and do not affect your pension.

Also, check for additional benefits at the state and county level.
I no longer pay property tax. In some states, license plates are free.

 

[BK2011]

Are you talking retirement pay or a "VA pension"? Retirement pay is not a "pension". If you are receiving retirement pay (20+ years of service) you earned your retirement pay and if you are disabled you get a disability pay. I get both.

A "VA pension" is a needs based payment for a veteran who has served in a war period, served over 90 days, is over 65, and has little or no income and minimal net worth, and has a non-service connected permanent disability. If you are getting a VA Pension, and then get ALS you'll get "disability compensation" but that is counted as income and you should get the higher of the two (probably the Disability compensation in the case of ALS) but not both.

Found this online:

Q. If the veteran is already receiving benefits for a service connected disability, can the veteran receive a non-service connected pension too?
A. You cannot receive service connected compensation and a non-service connected pension at the same time. However, if you apply for pension and are awarded the benefit, the DVA will pay whichever benefit is the greater amount.

 

[Atsugi]

Are you talking retirement pay or a "VA pension"? Retirement pay is not a "pension". If you are receiving retirement pay (20+ years of service) you earned your retirement pay and if you are disabled you get a disability pay. I get both....

In a previous post, JHET says he served 20, as did I. Thanks for contributing a well-informed post. We really need people who have the straight scoop.

 

[frankb]

military retirement pay and compensation for your 100% disability (resulting from ALS diagnosis) come out of different pockets. You should continue to receive full armed services retirement pay (which is taxable) and you should separately receive VA payment for your 100% service connected disability. You will receive an Armed Services W-2 for tax purposes but should not receive a W=2 from the VA. If you do, something is amiss. Have sent you a couple of private messages but perhaps they went astray. My email address was changed a month or so ago, so that could be a reason. Would like to share my experiences with the local VA if you are interested.

 

[Jhettinger]

OK Thanks for all the information. I have an issue with this because I have been getting a retirement (>20 yrs) for the past 20+ years, I also had a 10% disability. They paid me my retirement (-) the 10% and added the 10% back in the final amount. So I get 3,000 a month, they take out 300 and add back 10% (untaxable). I still get 3,000 a month (not real numbers)

I will probably need to wait until the end of December Payment and my w2 from DFAS to see if I have a problem.

thanks

 

[Nuts]

At 10%, the amount you receive from the VA is subtracted from your retirement pay. At 100%, you receive both. It's called concurrent receipt.

 

[chally]

I had been at 100% for combat wounds for many years and it was never taxable.
When ALS came along they said it was due to agent orange
And because it was effecting both my arms and legs I was now considered a quadrapledic in pwc full time.
They took my 100% combat rate away and then gave me an addition 100% for my arms and another 100% for my legs of which none is taxable. Also addional $ for my wife as my aide cause I am on trilogy . Don't know about the pensions or retiarment but service connected disability is not taxed. Good luck and I hope your getting all the va help that is availble, they don't usually come to you you have to be pro active with everything and go to them with your needs. Pwc, SAH grant, hiss a grant, van,etc,etc,

 

[Nuts]

If you don't have a PVA Rep (Paralyzed Veterans of America), get one quickly. They are very knowledgeable about the needs of PALS and the benefits available to you, and they will help insure that you receive this benefits.

 

[frankb]

The 10% disability and related deduction from DAFS should now be history since you should now be classified 100% disabled because of your ALS diagnosis. Mitch is our PVA representative here in Atlanta VA Regional area. He is very good and is very helpful but one needs to do a lot of follow up with him. Know what I mean? Bottom line: DAFS - taxable. 100% VA disability - Not taxable. This 100% VA disability is a great and generous thing. But then, you paid for it, specially you with your 20 years of dedicated service.

 

[Jhettinger]

Thanks to all

Roger I am using Mitch also, but as you know he is buried, so I just follow up

Peace

 

[Jhettinger]

Here is a good link that explains it all

https://www.dfas.mil/retiredmilitary/disability/crdp.html

 

[DaChief]

At 10%, the amount you receive from the VA is subtracted from your retirement pay. At 100%, you receive both. It's called concurrent receipt.

Pretty sure 50% is the magic number