Military retirees to see pay increase

Air Force Link ^ | Jan. 28, 2004

[Ragtime Cowgirl]

Military retirees to see pay increase

1/28/2004 - ARLINGTON, Va. (AFPN) -- An estimated 150,000 military retirees will see an increase in their pay Feb. 2. The National Defense Authorization Act, enacted in November, significantly modified a long-standing law preventing retirees from receiving full retired pay if they also received disability pay from the Department of Veterans Affairs.

The new law allows concurrent receipt of military retired pay and VA disability pay for retirees with more than 20 years of service and a disability rating of 50 percent or more. This restored pay will be phased in over a 10-year period that began Jan. 1.

Retirees are not required to take any action to receive the additional pay. Defense Finance and Accounting Service officials have already identified eligible retirees and began making adjustments to their military retired pay.

The first payments are due Feb. 2 for the law change that was effective Jan. 1. The additional funds also will be paid Feb. 2 based on entitlement for Jan. 1 to 31. The restored pay is paid on the same schedule as current military retired pay. Recurring payments will be made on the first business day of each month based on entitlement for the month before.

For the majority of military retirees, the additional money is taxable income and subject to federal tax withholding.

One category of military retirees who are eligible for additional funds but will not be paid Feb. 2, are those who receive retired pay based on a disability percentage instead of years of service. Further guidance is needed from the Department of Defense to determine how the law will be applied in these cases. Once guidance is received, payments will be made retroactive to Jan. 1. An estimated 2,800 military retirees fall into this category.

For more details regarding who is eligible for the restored pay and how payments will be made, visit www.dfas.mil and see the topics under “Retired and Annuitant Pay,” or visit the myPay Web site at https://mypay.dfas.mil.

[Ragtime Cowgirl]

An estimated 150,000 military retirees will see an increase in their pay Feb. 2. The National Defense Authorization Act, enacted in November, significantly modified a long-standing law preventing retirees from receiving full retired pay if they also received disability pay from the Department of Veterans Affairs.

The new law allows concurrent receipt of military retired pay and VA disability pay for retirees with more than 20 years of service and a disability rating of 50 percent or more. This restored pay will be phased in over a 10-year period that began Jan. 1.

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[SAMWolf]

About time Bump. Now lets get active duty pay increased.

[StarCMC]

Got any vets you wanna ping to this one??

[Happy2BMe]

This is great news for all of our distinguished veterans.

Anybody have an idea in how instrumental Bush was in acquiring this for us?

[octobersky]

Great news but the 10-year phase-in period may preclude some deserving but aging vets of collecting the full amount owed.

[hattend]

So it takes 10 years to phase this in this but only a stroke of the pen to raise taxes and wipe out all the gains.

I hate politicians.

[arm958]

The new law allows concurrent receipt of military retired pay and VA disability pay for retirees with more than 20 years of service and a disability rating of 50 percent or more.

Great news. It's the 50% or more people who really need and deserve it. Although I have a disability rating, it's relatively minor, and I only made sure it was in my V.A. records if the situation gets worse and I need V.A. medical help (herniated disc). If you have a rating of 50% or more you are very banged up and limited in what you can do. I would not want to see those with 10%, 20% or 30% disabilities "milk" the system, because that's what it would be.

[dakine]

Active duty just received a nice pay raise, but more could always be authorized...

[SAMWolf]

Thanks for the info. IMHO, it still needs to be upped though

[mystery-ak]

By all means, this couldn't have been Bush's idea.

Kerry 04

[Happy2BMe]

Are you by any chance a member of the MOA (Military Officer's Association)?

[Vets_Husband_and_Wife]

Thanks, sent to my Vet friends!

[OneTimeLurker]

I just wish it didn't take 10 years to phase in.

[Alamo-Girl]

Bump!

[Lucy Lake]

"Are you by any chance a member of the MOA (Military Officer's Association)?"

I'm curious, are you?

[windchime]

Bump!

[Happy2BMe]

FYI: Bush denied CR up until the last quarter of '03.

Over 200 general-grade officers petitioned the president to reconsider in a single letter notifying the president that failure to support CR would result in their support being removed in the political process.

[Lucy Lake]

Over 200 general-grade officers petitioned the president to reconsider in a single letter notifying the president that failure to support CR would result in their support being removed in the political process.

I do not believe this statement. Please provide verification.

[Happy2BMe]

Do you believe the part that Bush was holding up CR and threatened to deny it altogether using the excuse it "costs too much?"