• Retired Pay
• VA Compensation
• Concurrent Retirement and Disability Pay (CRDP) 

RETIRED PAY

Retired Pay is the pension you receive after retiring from the military. There are a variety of retirement plans which have different methods of determining monthly pay. To find out more about them in detail, visit here. No matter which retirement program you are enrolled in, your Retired Pay is considered taxable income. 

The Veterans Administration provides benefits separate from Retired Pay.

VA COMPENSATION

VA Compensation is a tax-free payment separate from your pension. The Veterans Administration provides benefits to most Veterans (or their dependents) with service-related disabilities. (Veterans with dishonorable discharges are ineligible for the benefits.) VA benefits for Veterans generally fall under one of two categories:

• Disability Compensation
• Special Monthly Compensation (SMC)

DISABILITY COMPENSATION

Disability compensation is a tax-free benefit paid to retirees who suffered injuries or illness during their military service. They are designed to compensate Veterans for a resulting lack of employment or diminished working time. They are paid to:

• Veterans with disabilities resulting from a disease or injury sustained or aggravated during active military service.
• Veterans with post-service disabilities that are considered related or secondary to disabilities occurring in service and for disabilities presumed to be related to circumstances of military service, even if they may develop after service.
• Certain Veterans disabled from VA health care.

Regional offices are currently closed due to the coronavirus pandemic, but you can apply online for VA disability compensation here. The standard wait is four months to hear back about a claim. However, there are ways in which you may expedite a claim.

SPECIAL MONTHLY COMPENSATION (SMC)

SMC is a benefit that can be paid to Veterans, Veteran spouses, surviving spouses, and Veteran parents. The amount of the SMC is determined by the circumstances of the recipient.

Veterans may receive a higher rate of compensation due to special circumstances such as the need of aid and attendance by another person or a specific disability (e.g. the loss of a limb).

Spouses and surviving spouses may receive compensation based upon the need to aid and attendance by another person. This benefit is often referred to as “aid and attendance.” 

CONCURRENT RETIREMENT AND DISABILITY PAY (CRDP)

CRDP allows military retirees to receive both retired pay and Veterans Affairs (VA) compensation at the same time. It’s designed to offset VA disability payments. This option was prohibited for many years and was completely phased in during 2014. It is provided by the Defense Finance and Accounting Service (DFAS). 

There are specific requirements needed to be met for eligibility. You may be eligible for CRDP is you are a:

• Regular retiree with a VA disability rating of 50% or higher.
• Reserve retiree with 20 qualifying years of service, with a VA disability rating of 50% or higher, who has reached the set retirement age for your specific service.  
• Retired under the Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.
• Disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and you have a VA disability rating of 50% or higher. You might become eligible for CRDP at the time you would have become eligible for retired pay.

However, you do not need to enroll in CRDP. If you are eligible, you will be automatically enrolled. 

In some cases, such as if the VA determines that your disability makes you unemployable, then you may receive not just offset payment, but full payment of retired pay and VA compensation at the same time.

If you have any questions regarding your CRDP payments, call DFAS at: 800-321-1080

CONCLUSION

For all applications, regardless of category, you will be asked to provide documentation regarding the disability. The VA requires a clear connection between a condition and a service-related injury. If the application seems overwhelming, you are entitled to FREE representation through an accredited claims agent or a Veteran Service Organization (VSO) to help you prepare and submit your claim for benefits. 

Contact Us

Have a question about your Veteran benefits? You can email us today! If you are within one-year pre to post-military separation, you can enroll in our FREE program by setting up a call with one of our transition coaches.

One of the best ways we can feel connected to our local communities and to the world around us is through engagement. This can take many different forms, including doing some volunteer work and making donations or other charitable contributions to causes which matter to us. Spending the time, energy, and funds to do these things truly helps us stay linked to others, but often we get tied up in our own daily lives and lose sight of that fact.

This often happens with military Veterans. Many Veterans constituents who’ve transitioned out of the military face unique social challenges. Studies have shown they are at risk of experiencing isolation and disconnection from the “civilian world” at times. This can lead to undesirable effects on their personal morale and welfare, even leading in some cases to depression. So it’s especially important for Veterans to take part in giving efforts, but how can you engage and inspire them to do so?

Doing great things such as giving back to others has a positive effect on our well being, so one way to inspire others to give is to demonstrate that effect! If there is a charity or cause you’d like to raise participation in, advertise it through flyers, emails, and social media. Explain the problem and the impact that donations have on funding solutions to address it. Show infographics or, when possible, videos featuring the people or places which derive benefit from the help given.

Veterans are highly trained in following procedures and processes. They feel most at ease when they have an understanding of how things work and what the end goal is. So if you’re seeking their involvement in a charitable project, it’s important to take the time to explain clearly what’s going on.

The fastest way to make a Veteran lose interest is to leave details hazy. The U.S. Equal Employment Opportunity Commission recognized this fact when they wrote their Veterans and the Americans with Disabilities Act (ADA): A Guide for Employers. In it, they specify how “breaking complex assignments into smaller, separate tasks” can assist with comprehension in many cases.

So—do that. Walk them through the mission phases of giving:

who it’s for;
what it’s about;
where the impact will be;
when things will change or improve (or whatever is the objective);
why to do it;
how exactly to do it.

Let’s take a look at an example. Say you want your Veteran constituents to consider giving to a local branch of Habitat for Humanity. You might want to start by talking about Veterans Build, which is one of their initiatives tailored specifically towards helping Veterans, service members, their families. That’s the “who.”

Next, explain “what” Habitat for Humanity does for such persons, such as building “safe, decent, affordable housing” as well as repairing existing homes.

If there’s a specific home or area being focused on, tell “where” that’ll be so they know the impact location. Then give a timeline of “when” things will occur, from start to projected finish.

After that, explain “why” the Veteran’s help is needed and then close with a Call to Action telling them “how” they can get involved right away!

Contact Us

Have a question about your Veteran benefits? You can email us today! If you are within one-year pre to post-military separation, you can enroll in our FREE program by setting up a call with one of our transition coaches.

Life holds many major decision points for each of us Veterans. For military members, one of the biggest was the choice to join the service in the first place. Just as significant is the choice to get out. It’s one of the toughest decisions you’ll ever have to make! But once you do, you need to be ready because transitioning back into the civilian world involves much more than just finding a job.

Here’s a few tips to help Veterans thrive during your military transition and long after your separation from service!

During the Transition

House Hunting – Hopefully you know well in advance where you plan to settle down after getting out of the military. If not, it’s something you’ll need to pin down as soon as possible.

Each branch of service offers permissive House Hunting Trip days to help transitioning service members scout around. Don’t let these go to waste. Use them to travel to different towns, perhaps different states, until you pick your dream spot!

Home Buying – Related to house hunting is the decision to buy or not. And depending on many factors, it may or may not be the right time to buy. For example, you’ve decided to move out of state but you haven’t been picked up for a new job there yet. Getting tied to a home mortgage could be a mistake, unless you can ensure you’ll have the income stream to make the payments.

You don’t want to start your post-separation civilian life struggling with an economic hardship. Buying a new home usually comes with many unexpected costs. But if the time is right, we recommend looking into the VA Home Loan program! And don’t forget to check out our free webinar The Art of Military House Hacking.

Medical Disability Claims – Your branch of service should host a mandatory Transition Assistance Program (TAP) or other similar course designed to help you plan ahead. Often, a representative from Veterans Affairs will offer a briefing during this course to help you understand how the VA disability claims process works. Pay close attention and then follow-up with action.

If you don’t get this briefing, contact your personnel section to help put you in touch with a local rep, or contact us to learn about your options. As Veterans, we also tend to suffer from chronic disabilities related to our service. Unfortunately, we also often fail to realize that we should be receiving compensation and benefits from the VA. Test your knowledge about VA benefits with SAVI’s short VA Benefits 101 Survey.

Post-Separation

Stay Fit – Life in the military keeps us in good physical condition, if for no other reason than the fact that we have to pass an annual fitness test. Once that accountability is gone post-separation, don’t just throw away your running shoes and start to skip the gym.

Staying physically active is critical for maintaining a healthy lifestyle. It also helps us remain positive through stressful situations (like starting a new civilian life!). There are plenty of fun ways to maintain your fitness level, even if it means switching up your old routine. Maybe get a new workout buddy to motivate you? Whatever works to keep yourself moving and healthy is worth it!

Stay Engaged – Once you’re a Veteran, you’re a Veteran for life! Keeping up friendships can be a challenge when you’re on the go. The great thing about Veteran life is that it’s easy to snap into a new community of prior service members. The trick is actually doing it.

If you find yourself feeling a little disconnected from the civilian world, you may just miss the camaraderie from your time in the military. That’s okay – that camaraderie is still out there! You just have to be proactive and find the Vets in your area. You might start your search with the VA’s Directory of Veterans Service Organizations.

Final Thoughts

Post-separation, you’re in charge of your own transition and your life after the military. Apply the diligence and perseverance you learned in the service to educate yourself and plan for the future. Never settle for less! Because when you take control and steer your own ship, you’ll get where you want to go versus letting the currents whisk you around randomly.

For more great tips, visit our website to learn how SAVI provides the emotional, physical, and mental support you need in your military transition to civilian life. We also offer four comprehensive planning tracks—Education, Employment, Entrepreneurship, and Retirement. And best of all? Enrollment in each of them is absolutely free!