Posted on Jan 8, 2016
Should QMP severance packages be counted against you for VA disability compensation?
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So...I found out yesterday, if someone gets QMP'ed out the Army, and they receive a severance package, then that person does not receive VA disability until the amount of VA disability is equal to the severance package.
I.E. I get QMP'ed and my severance package is $30,000, getting paid 5,000 a month, I won't start getting my VA disability for 6 months. I asked a VA rep and he confirmed this and stated "there is no free money", which I opinionated "please don't classify VA disability as free money....people that get that have more than paid for that."......anyways community...what do you feel about this?
I.E. I get QMP'ed and my severance package is $30,000, getting paid 5,000 a month, I won't start getting my VA disability for 6 months. I asked a VA rep and he confirmed this and stated "there is no free money", which I opinionated "please don't classify VA disability as free money....people that get that have more than paid for that."......anyways community...what do you feel about this?
Posted in these groups: 
Department of Veterans Affairs (VA)
QMP
Department of Veterans Affairs (VA) QMP
Posted 9 y ago
Responses: 10
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SSG (Join to see) Absolutely NOT! As was very well stated by MAJ Ken Landgren "Severance is earned. Disability is eared, so why do they offset by taking away what is earned?"
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Several discussions on this topic. Under this current rule, that is unfair in my opinion, a Soldier is given incentive to not QMP. Rather take the administrative separation, you would have been far better off going into the IDES process and receiving your DOD and VA rating prior to discharge.
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Been there and done that. I was medically separated in July of 2004 (I have discussed this very topic on RP). I got a severance, which at that time was based on the formula of 2 x base x number of years served. My severance was $36,014.40. After 28% taxation (yes, it's taxed), it came to $25,930. Yes, it is taxed.
Got out, went to the VA and was deemed to be 20% disabled. I did not see a penny of my VA money until 2013. I had to pay back all $36,014.40.
They call it double dipping. I am not sure how or why. DA/DoD and the VA have separate budgets and different accounting systems. That money doesn't come from the same pool.
Yet somehow, the current federal law says, "sorry we broke you beyond usefulness service member. Here is some money to assist your transition. By the way, it's just a loan. We will be getting it back."
Unfortunately, I didn't find out that it would be recouped until I had been out for 6 months and called the VA to ask why I had not started receiving benefits.
Got out, went to the VA and was deemed to be 20% disabled. I did not see a penny of my VA money until 2013. I had to pay back all $36,014.40.
They call it double dipping. I am not sure how or why. DA/DoD and the VA have separate budgets and different accounting systems. That money doesn't come from the same pool.
Yet somehow, the current federal law says, "sorry we broke you beyond usefulness service member. Here is some money to assist your transition. By the way, it's just a loan. We will be getting it back."
Unfortunately, I didn't find out that it would be recouped until I had been out for 6 months and called the VA to ask why I had not started receiving benefits.
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MCPO Roger Collins
Years ago I went with the VA. They tried to give me $100 per month. When I asked how that would effect my retirement pay their answer was vague so I went through the process to refuse the VA pay. Looks like it was a good idea.
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SGT Frank Yarum
Actually you would still get your retirement pay each month, but it would be 100.00 less, and you would get the 100.00 from VA Disability. Another words you would have actually be taking home more money because the 100.00 dollars they took from you retirement was being taxed and as disability it would not be.
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SGT Frank Yarum
SgtmcKinley, you can file a 1040X for each year that you should have received disability pay so you can get your tax money back. Unfortunately you can only submit a 1040X for the previous 5 tax years and since you started receiving your disability pay in 2013 and it is now 2015 tax season you can only submit one for 2013, 12, 11, and 10. You will lose the taxes you could have gotten back had you filed a 1040X for the previous year's tax season when you filed your regular taxes. You need to talk to a professional tax person. My separation pay was 37k and after taxes was about 25k. My first disability rating was 30% which after another 3 years and a letter of disagreement was increased to 50%. Long story short I got all my tax money back from uncle Sam but it took me 5 years of tax seasons to do it. Stupid thing is, is that after all of my appeals I ended up with 100% service connection. And everything that they approved was what was wrong with me the day I was discharged from the service on August 1, 1994. It took me 17 years of appeals and 1 Appeals Board. Had the Army treated me like a human being when they did my exit exam I would have been medically retired rather then separated. The military does not want to pay for that though, they would rather force people to either work injured or end up on the streets rather then take care of them before they release them from serving their country.
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