Transitionnews 12/16/13

Transitionnews for Monday, December 16th 2013:

Good news story of the day

A dedication for those who sacrifice  (The News Virginian)  Just over a month ago, one local student saw his hard work pay off at Wayne Hills Center. Isaac Edwards, a 13-year-old eighth grader at Kate Collins Middle School, spent his Veterans Day morning at Wayne Hills as a 40-foot flagpole was erected as part of his Eagle Scout project. Edwards raised almost $3,700 for his project through donations.

Transition

Making a smooth transition to a post-military career  (The Oconee Enterprise)  Leaving the military is like leaving home for the first time. Upon discharge, service members are faced with the question of: “What’s next?”

Goodwill programs help veterans transition into workforce  (Pittsburgh Post-Gazette)  Jerry Jones spent 16 years maintaining multimillion-dollar equipment at U.S. Air Force bases around the world.

CivilianJobs.com’s Resume Matching Process Reinforces 2014 Military Job Fair Schedule  (Virtual-Strategy.com)  CivilianJobs.com matches transitioning military job seeker resumes to open positions for companies attending job fairs.

New order defines separation rules  (Military Times)  The Corps has overhauled its manual governing how Marines retire or are separated from the service, with broad changes that cover everything from transition assistance requirements and involuntary separation protections for career officers to drug use and sexual ­assault.

Businesses step up their efforts to hire veterans  (The Columbus Dispatch)  It took Francisco “Frank” Miranda, a veteran of the war in Afghanistan, about three years to find a job in the civilian world that was a good fit.

Welsh: Budget deal doesn’t end need for force cuts  (Air Force Times)  The proposed budget deal for the next two years would not change the need to issue force management guidelines, Chief of Staff Gen. Mark Welsh told reporters Friday.

Job Front: Sacramento State center offers support to veterans  (The Sacramento Bee)  For returning veterans, coming home can be a tough transition. Readjusting to the civilian world, looking for work, going back to school – all pose unique challenges.

Veterans

Veterans vow to fight order to remove cross overlooking San Diego  (CBS News)  A veterans association that built a massive cross overlooking San Diego as part of a war memorial plans to fight a federal judge’s order to tear it down, a lawyer for the group said on Friday.

Veterans disappointed in lack of legislation for 2013  (Stars and Stripes)  The House wrapped up its legislative work for 2013 on Thursday without finalizing any major veterans initiatives, a disheartening footnote for some advocates pushing issues they thought had bipartisan support.

Veterans force IRS to retreat from invasive requirements  (U.S. Finance Post)  Once again America’s veterans have showed the rest of the public that standing up can make a difference, this time against one of the most feared agencies in the country, the Internal Revenue Service.

The war next door: Can a vet with PTSD come home?  (Stars and Stripes)  The man in the grainy surveillance footage strides through the sleepy cul-de-sac with purpose, like someone in command of his own destiny.

Instructor’s work benefits students, vets  (The Grand Island Independent)  For Grand Island Senior High students who are part of the Career Pathways Institute program at the Central Community College-Grand Island Campus class work involves learning how to perform specific kinds of welds with expertise.

Veterans Affairs

Over time, new computer system put dent in VA benefits backlog  (The Berkshire Eagle)  Far fewer veterans are facing long waits for disability compensation after the Department of Veterans Affairs spent the past six months focusing on the backlog, including mandating case worker overtime and rolling out a new computer system.

Worth VA director understands veterans’ needs  (GlobeGazette.com)  Brett Schmidt, a retired career veteran of the Iowa National Guard, is using his military experience to help veterans in Worth County receive benefits and services to which they are entitled.

VA program works to find homes for heroes  (Courier-Journal.com)  Valerie Bridges’ orderly life seemed to be coming apart.

Washington veteran struggles after leaving the service  (Observer-Reporter.com)  “Join the Navy and see the world” has long been a recruiter’s enticement, but it doesn’t always lead to exotic lands.

Two years later, Hot Springs is still fighting to keep its VA hospital  (Rapid City Journal)  Attending one of the recent weekly meetings of the Save the VA group, the same word comes up over and over.

New Rule Could Aid Veterans’ Access to Health Care for Some Traumatic Injuries  (The New York Times)  The Department of Veterans Affairs has approved new regulations to make it easier for veterans to receive health care and compensation for certain illnesses, including Parkinsonism, dementia, and depression, which have been linked to traumatic brain injury.

Benefits

‘Pension poachers’ profit off benefits meant for elderly veterans, widows  (Cronkite News)  Business is booming in a multibillion-dollar government program that offers modest pensions to America’s neediest elderly war-time veterans – and that’s not necessarily a good thing.

Cutting military benefits a poor decision  (The News Viginian)  You don’t balance a budget on the backs of military veterans.

Ryan Defends Reduction to Cost-of-Living Adjustments for Early Military Retirees  (The Weekly Standard)  The two-year budget deal crafted by Republican congressman Paul Ryan and Democratic senator Patty Murray sailed through the House of Representatives on a 332-94 vote last Thursday, just two days after it was introduced.

Republican Senators Battle Budget Cuts Targeting Military Retirees  (National Journal)  A handful of Senate Republicans are balking at a provision in the budget deal that would cut benefits to military retirees.

Trim military commissaries? Them’s fightin’ words  (Omaha.com)  No matter where in the world the Air Force took them, Kim Livingston and her daughter, Shannon, always knew they could count on one familiar thing: a modern commissary well stocked with low-cost American groceries.

Military retirees: Hands off our checks  (Union-Tribune)  Ann Wade, wife of a retired Camp Pendleton Marine officer, watched with alarm as the congressional budget deal was unveiled this week.

Armed Services panel to review retirement changes in budget deal  (The Hill)  Senate Armed Services Committee Chairman Carl Levin (D-Mich.) said Friday his committee would review the changes to military retirement benefits included in the budget deal before they fully take effect.

Republican Senators Battle Budget Cuts Targeting Military Retirees  (National Journal)  A handful of Senate Republicans are balking at a provision in the budget deal that would cut benefits to military retirees.

Military Retirees Up in Arms over Congressional Plan to Reduce Pensions  (MintPress News)  A bipartisan congressional vote on Thursday cut pay raises for active troops and military retiree pension plans for those who aren’t disabled and under 62.

Ayotte meeting with NH veterans over cuts to military retiree benefits  (The Republic)  New Hampshire Sen. Kelly Ayotte is meeting with leaders from veterans’ service groups over cuts to military retiree benefits in a pending congressional budget.

‘Modest’ tag on military pension cuts is disputed  (Omaha.com)  Military veterans associations charged into the fray this week after what they described as a surprise attack on retirement benefits for those in uniform.

Sen. Ayotte joins veterans in opposing cuts to military retirees’ benefits  (New Hampshire Union Leader)  Sen. Kelly Ayotte, R-NH, will appear in Merrimack today with leaders from several state veterans service organizations, calling for cuts to military retiree benefits to be removed from a budget deal currently before the U.S. Senate.

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Transitionnews 12/13/13

Transitionnews for Friday, December 13th 2013:

Good news story of the day

SERVPRO OF PLYMOUTH/WAREHAM: Give-back program donates thousands to area veterans  (WickedLocal.com)  When he decided last fall to give back to veterans, Kenneth Matejek estimated he would donate at least $10,000 to help fellow servicemen and women through hard times.

Transition

Air Force to cut 900 civilian jobs, thousands of service members  (Federal News Radio)  Although the proposed budget deal restores some spending to the Defense Department, it still won’t be enough for forces to maintain their current programs and workforce.

Syracuse Career Transition Program Now Includes Spouses  (Defense.gov)  The Institute for Veterans and Military Families at Syracuse University in New York has expanded eligibility to enroll in its Veterans Career Transition Program to spouses of eligible veterans and active duty service members.

Workshop to Help Veterans Find Work Comes to Bridgeport   (WDTV.com)  Right now, members from the armed forces are coming back from overseas, young and old. That means they’re going to be looking for jobs, or if you’re a veteran out there who already has a job, you’re probably trying to find a better one.

TAP inspires a new beginning  (Offut Airbase News)  In response to rising unemployment rates, especially among veterans returning from service in Iraq and Afghanistan, President Barack Obama signed the Veterans Opportunity to Work to Hire Heroes Act on Nov. 21, 2011.

TEMECULA: Pechanga reaching out to hire veterans  (The Press-Enterprise)  Dozens of unemployed military veterans were given one-on-one interviews Wednesday during a unique job fair/open house hosted by the Pechanga Resort & Casino, one of the county’s largest employers

Rules clarified on health exams for other-than-honorable discharges  (Military Times)  The fiscal 2014 compromise defense authorization bill would change part of a law that has allowed the services to skirt a requirement to provide mental health and medical exams to all combat troops facing an other-than-honorable discharge.

Resources For Student Vets  (KeloLand.com)  If you find yourself in the basement of South Dakota State University’s Student Union, you’ll find the new Veterans Resource Center lined with veterans and current service members.

Veterans

Veteran’s actions should be inspiring  (The Advertiser-Tribune)  The story of a good Samaritan who helped pull motorists out of a ditch Sunday night after they slid off an icy road is more than uplifting.

Arizona jail housing veterans together  (USA Today)  Veterans in the custody of the Maricopa County Sheriff’s Office are now being housed under one roof.

Marines who suffered brain injuries doubled risk of PTSD, study finds  (Los Angeles Times)  Up to a fifth of U.S. service members who served in Iraq and Afghanistan have come home with a blast-related concussion or post-traumatic stress disorder — or both.

Shari Duval Pairs Dogs with Veterans Suffering From PTSD  (People)  After two wartime tours of Iraq, Alex Brown couldn’t shut off his alert switch.

Treatment courts take root with vets mentoring vets  (Marine Corps Times)  Richard Sandoval joined the Marine Corps in 2003 to flee a childhood on the Miracle Mile in Tucson, Ariz., a violent strip of seedy motels, topless bars and dingy street corners where his father pedaled drugs for a cartel.

Combat veterans included for Tribute At Sea  (Lehigh Acres Citizen)  A boat club based in Cape Coral came up with a new twist to help celebrate Wreaths Across America to honor military veterans as it participates in the ceremony for the third year Saturday, Dec. 14, in the Gulf of Mexico.

Iraq war vet-turned-congressman gets show on MSNBC  (Stars and Stripes)  Patrick Murphy was the first Iraq war veteran in Congress. Now, he’s the first to get his own news network show.

Group offers support for homeless veterans  (The Tuscaloosa News)  Family Endeavors, a nonprofit organization based in Texas, has moved into Alabama with a goal of helping more than 1,000 veterans in this state with housing needs within the next year.

Army veteran gets mortgage-free house in Goddard  (The Wichita Eagle)  Wells Fargo on Thursday donated a foreclosed house in Goddard to an Army veteran.

Veterans Affairs

VA on pace to clear benefits backlog by 2015, official tells Senate panel  (Fierce Government)  The Veterans Affairs Department disability backlog of about 400,000 benefits claims will continue to decline in 2014 and should be eliminated in 2015, a VA official told the Senate Veterans Affairs Committee Wednesday.

Dept. of Veterans Affairs: South Korea offers gift to Korean War veterans  (WisPolitics.com)  South Korea Offers Gift to Korean War Veterans Free commemorative book now available

VA official talks challenges, successes  (Wyoming Tribune Eagle)  A high-level official in the Department of Veterans Affairs paid a visit to the VA Medical Center here on Tuesday as part of a whistle-stop tour of facilities around the country.

Senator Questions Stats on Accuracy of VA Claims  (Military.com) Since pressure was applied by veteran service organizations last year, the Department of Veterans Affairs has claimed that it is not only shrinking the backlog numbers but has raised the accuracy rate of the compensation claims it has completed, to where it’s now at 97 percent.

Benefits

Military retirees: You betrayed us, Congress  (CNN Money)  Military retirees are outraged that Congress will start voting Thursday on a budget deal that trims military pensions, calling the move “an egregious breach of faith.”

Report: Budget Plan Could Cost Service Members $124,000 in Retirement Pay  (The Washington Free Beacon)  Military retirees could face as much as $124,000 in lost retirement income if the bipartisan budget agreement is enacted, according to the Military Officers Association of America (MOAA).

Female veterans battle for benefits at home  (Florida Courier)  When Xatavia Hughes, the granddaughter of a military man, went to serve in Iraq, she was prepared to prove herself to the male soldiers.

Tricare users soon must fill long-term prescriptions via mail  (Military Times)  Military retirees and family members who use Tricare For Life will be required to start filling long-term prescriptions by mail starting Feb. 14, 2014.

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What’s next for military pay and benefits?

My last post was about the impending — and expected — drawdown of the military.  The United States is following the path of many other western nations as they shed soldiers and sailors in an effort to curtail the expense of national treasure and return their armed forces to the size they deem more appropriate for a post-war world.

It does make sense.  After all, standing armies, navies, and air forces are extremely expensive and tough to justify in times of peace (or at least of times of non-war, which seems to be a more apropos description of the 21st century age in which we live).  It has all happened before, and it will surely happen again.

For those who remain in uniform, however, things may well be changing as well.  The Department of Defense is considering pretty much any idea or option that comes to the table in terms of reigning in the costs of personnel, consume about a quarter of the DOD budget.  Various studies and commissions have examined the issue of military and military retiree compensation, and with the austerity brought on by the economy and sequestration such benefits come under greater scrutiny.

One of the latest efforts is the Military Compensation and Retirement Modernization Commission, a congressionally mandated effort to determine the “long term viability” of  military compensation (for more information, read today’s Stars and Stripes coverage of the commission here).  All things considered, looking under the hood of the military compensation machine is not in and of itself a bad thing.  It happens after every war, but this time the scalpels are sharp and the desire to perform some cost cutting surgery is possibly stronger than ever.

Efforts to change pension benefits, pay structures for serving personnel, medical coverage for retirees, and countless other benefits have been in the news lately and the new congressional panel is yet another bureaucratic mechanic crowded under the hood of the machine trying to dismantle what they can.

As I wrote earlier, a reasonable review is perfectly appropriate as the wars draw to a close.  The moral imperative of meeting the obligations of the nation to those who serve it, however, should be paramount in any discussion about tinkering with or cutting compensation.

I sincerely hope that the commission keeps that in mind.

Here it comes: the big drawdown

It seems that every day brings news about the future of the military, and today was certainly no exception.  The Army, according to a Thomas Ricks’ post in Foreign Policy, is about to start separating officers from the service.  (Click here to read it)

There has been a lot of howling about how sequestration is causing the downfall of the military, and that the danger of a hollow force is only a manpower cuts away, but in all practical reality the end of the wars in Iraq and Afghanistan make a smaller military inevitable.  It happens after every major conflict; the US Army numbered under 400,000 active and national guard troops in 1939, but by the end of the Second World War it had swollen to over 8,000,000. At the start of the Korean War some five years later the army was down to 630,000.

One of the principal reasons that the drawdown in the near future is different from those from prior wars is the composition of the force.  There are no draftees in today’s military.  Each and every Soldier, Sailor, Airman, and Marine volunteered to serve his or her country, and as a result more of them are likely to want to stay in the military than their predecessors.  At the end of the First and Second World Wars the armed forces (which were filled with draftees and wartime volunteers) shrunk naturally as people headed back to the lives they interrupted to go to war.  The same can be said for Korea and Vietnam to certain extent, as draftees were critical to expanding the armed forces to the size needed to fight those wars.

Today, though, we have no draftees.  Instead, we have a highly trained force of military professionals who have dedicated themselves to a career in the military.  Sure, the majority of first term enlistees serve one hitch and get out, but a significantly larger percentage want to stay.

Therein lies the rub.  As the military inevitably shrinks, the number of job slots that military folks can fill will decrease.  For the enlisted component of the armed forces, the length and terms of the enlistment contract can be used to decrease the size of the force; the military branches can make it more restrictive and difficult to reenlist. It is an effective manpower shaping tool.

For officers, however, the rules are very different.  Generally speaking, junior officers (ensigns and lieutenants) serve an initial contracted period (during which they are considered “reserve” officers), which is very similar to the enlisted side.  If they want to stay in, however, instead of reenlisting they compete for transition to from “reserve” to “regular” status.  Once an officer becomes a regular, his contract disappears and his term of service becomes “indefinite”.  This means that they are in until they 1) retire 2) quit 3) fail to get promoted or 4) die.  There is no enlistment contract to use as a force shaping tool.

During stable periods this is no big deal.  The services have staffing models that pretty accurately predict the size that the force needs to be, and they can manage the number of officers based on the number they are allowed to have by law, natural attrition, and accession of new officers.  During unstable times, though, like right now as we finish up a couple of wars, the models come apart like a trailer in a tornado.

The military had to significantly change its shape and size to fight the protracted counterinsurgent wars.  Many more boots on the ground were needed, which means that privates and second lieutenants were getting hired at the rapid rate (meaning much were donning the uniform than usual), and as time went on they got promoted to become sergeants and captains.  Enough time, in fact, that many of the officers became regulars.

Now that becomes a problem.

The enlisted side can be shaped using enlistment contracts, but the regular officers are immune from that shaping tool.  Instead, to reduce the number of officers (which is necessary to retain the proper shape of the force) the branches must figure out a way to get them to leave.  There are a lot of programs that are used to entice officers to leave (early retirement, “getting out” bonuses, etc), but when those do not get enough officers to leave the axe comes out.

In the Marine Corps the axe is the Selected Early Retirement Board (SERB).  Colonels and Lieutenant Colonels who fit a particular set of conditions are considered for retention or retirement.  Even though they can, by law, serve until their service limitations of 30 and 28 years respectively, the Marine Corps does not need them around for that long.  If they are selected for early retirement by the SERB, then they have about seven months to transition out to retirement.  The reason that such senior officers are targeted in the Marine Corps is that by lopping off people at the top it frees those below them to move up.

The Army is apparently about to do the same thing, except for a much junior set of folks: captains and majors. From Ricks’ blog post (a portion of letter sent from a senior officer to his or her juniors):

“You may already know, but there are going to be Officer Separation Boards (OSB) and Enhanced Selective Early Retirement Boards (E-SERBs) for Army Competitive Category Captains in Year Groups 2006-2008 and Majors in Year Groups 1999-2003 beginning in March 2014.

Initial word is that the OSBs and E-SERBs will select less than 10% of the considered majors and captains in year group 2008 and less than 20% of the captains considered in year groups 2006 and 2007.

I am meeting with the officers in the battalion affected that are physically at Ft. [DELETED] to discuss their Professional Development and future officer actions and will provide them an assessment of their potential for future service and potential risk of being selected for involuntary separation, and will help prepare their files for the boards. Additionally they are contacting their HRC Branch Representatives for an assessment. I recommend you find a trusted senior officer to do the same.”

The writing is on the wall.  Despite the promise of an exciting career in uniform, many officers are going to get the axe.  Is it good?  Is it bad?  I dunno.  In the mafia, they say that “it’s just business”.  The military needs to shrink, and it is not sequestration’s fault.  How the shrinking is done, however, says a lot about the moral contract between the institution of the military and those who serve within it.

Food for thought.

So the government “partially” shuts down. What does that mean to veterans and those still in uniform?

Well, it is October 1st and as Halloween decorations are going up the government is shutting down.  Partially, anyhow.  But what does a “partial” government shutdown mean to those steely eyed killers walking on patrol in Afghanistan and the not-so-steely eyed veterans who are now reliant on the VA for healthcare, disability payments, and/or pensions?

Great question!  In an effort to help provide some clarity in the murky waters that surround the shutdown I have done some sleuthing around to find some answers.  So, in no particular order, here are the things that I discovered:

1.  If you are serving in the military, then you have little to fear.  The congress passed a bill, which the president signed, that guaranteed paychecks for active duty and reserve status military personnel (along with some government employees and contractors).  For more information go here.

2.  If you are retired and receiving a military pension, then you can rest easy.  Since pensions are considered an entitlement and are not funded by annual appropriations they are safe from the shutdown.  If, however, the government hits the debt ceiling then they may be affected.  For more information go here.

3.  VA health care, pension, and disability payments.  There is good news and bad news regarding the VA.  The good news is that they are lightly impacted by furloughs and medical services will be unaffected, but the bad news is that they will likely run out of funds to pay all of their pension and disability payments if the shutdown lasts more than a few weeks.  Other programs, such as the GI Bill and others, will also be hit if the shutdown is prolonged.  For information on what is and is not impacted at the VA go here.  For information on the testimony that the VA provided congress about the impact of the shutdown (and how it will affect future payments) go here.

I hope this helps you get the information you need to understand the effect of the shutdown on you and your family.  Let’s just hope that the government of the nation that we swore to support and defend can get its act together and start moving forward again.

A quick way to determine your disability compensation amount

Determining how much your disability compensation amount should be is about as easy to figure out as a differential calculus equation.  After spending a considerable amount of time researching how disability percentages are determined and then what those percentages mean in terms of a disability check I was happy to find a much easier way to figure it out than the old fashioned way of plowing through tables and graphs.

The great guys at the Vietnam Veterans of America’s Arizona State Council have taken out all of the guesswork by creating a fantastic online calculator that will tell you just how much your disability check should be each month. Follow this link to their website — you will be pleasantly surprised at how easy it is to use.  The calculator uses your disability rating percentage, marital status, and number of children to ascertain what your monthly compensation amount should be.

In case you have multiple ratings (for example, a 10% rating for tinnitus and a 20% rating for back problems) you can use another nifty calculator to determine what your aggregate rating percentage is.  Follow this link to their website’s multiple rating calculator.

Give them a shot- you will find them to be very easy to use, and it will save you from the consternation that comes from trying to nug it out with a stubby pencil and a calculator…

Finally settling your VA claim, part 2: what it means to your bank account

My VA claim was finally settled a month ago after about two years of waiting.  I know it was settled because the VA sent me a very nice letter saying that it was, and along with my final disability rating came a brief paragraph that indicated that I would be receiving a settlement check from both the Defense Finance and Accounting Service (DFAS) as well as the VA.  Intriguing, thought I.  What exactly did that mean, and more importantly for my bank account, how much money were we talking about?

The way that the system is supposed to work is that you receive any compensation related to your disability rating beginning the day after you leave the military.  That payment is supposed to come directly from the VA, and DFAS should have nothing to do with it.  Except for a couple of cases…

…like mine.

In my case, I received no VA compensation until my case was partially adjudicated some ten months after the claim was filed.  During that time I was receiving my full military pension.

On the tenth month of the life of my disability claim the VA made a partial determination in my case.  They rated me at a low level for a few conditions, but they needed to conduct more examinations to determine if I was eligible for a higher rating.  The bottom line was that now I was eligible to receive some compensation from the VA.

Great!

The devil is always in the details, however, and instead of receiving a check on top of my pension the military deducted the amount of my VA compensation from my pension.  The VA then did send me a check, but for the same amount that was deducted from my pension.  Pretty much a zero sum game, except that the VA compensation is tax free.  Here is an explanation of how it works from a previous post:

Let’s say that you receive a disability rating that results in a payment from the VA of $100.  That $100 is not added to your check for a total of $1600.  Instead, $100 of the $1500 that was paid by the Defense Finance and Accounting Service (DFAS) is now paid by the VA, so the total pension amount stays the same.  What changes is how the taxes are computed.

Now you have $1400 that is taxable, which results in a slightly lower tax bill.  Here is the math:

$1400 x 20% = $280 in taxes.

$1400 (from DFAS) + $100 (from the VA) = $1500 (which is your pension amount).

$1500 (pension + VA Disability) – $280 (taxes) = $1220.

Sooooo…..as a retiree you get an extra twenty bucks in your monthly check.  If you are not a retiree, however, you get the full $100.

In my case, I received the partial claim amount until my claim was settled a whole year later.  Now I became eligible for not only the full VA compensation amount, but also a check that amounts to all of the compensation that I would have been paid had my claim been settled the day I left active duty.  In other words, the VA would write me a check for the full amount of compensation I was eligible for, minus the money that I had already received.  Here is an example of how that works (following the previous example):

To keep things simple, I will use $100 as the partial claim compensation amount and $200 as the final compensation amount.  My claim took 22 months to complete, with a partial settlement issued at month ten.  The math looks like this:

Total amount of VA compensation that the veteran should receive in this case is computed by multiplying the number of months eligible times the final compensation amount, as follows: $200 x 22 = $4400.

The amount of VA compensation that the veteran has received to this point is computed by subtracting the number of months he or she received compensation from the total months eligible, and then multiplying that number by the partial settlement compensation amount, as follows:  22 – 10 = 12 months: 12 x $100 = $1200.

Now that we know how much the total amount of compensation the veteran is eligible for ($4400) and the amount of compensation that he or she has already received ($1000), we can determine the settlement amount from the VA by subtracting the amount received from the total amount:  $4400 – $1200 = $3200.

So the veteran will receive a tax free check for $3200.  Sweet!

But wait, there’s more…

For those veterans who are retired from the military, they are owed the same back pay as shown above, but in addition DFAS is required to pay back the taxes collected on the back pay.  For every month that you should have received a payment from the VA but didn’t, that amount was taxed.  Since VA compensation is tax free, you are due the taxes that you paid.  It is calculated as follows:

From the problem above, you are about to receive a check for $3200 from the VA.  DFAS has already deducted the taxes for the first $1200, but has not done so for the remaining $3200.  In effect, you have been paid that amount and been taxed on it, so DFAS needs to cut you a check for the taxes (assuming a 20% tax rate as used in the problem above): $3200 x 20% = $640.  Unfortunately, since you are retired and not simply out of the service you don’t get $3200.  You get $640.  Not as sweet, but still a nice chunk of change. 

But wait, there is still more!

In cases where your disability compensation rating is 50% or more, you are eligible for Concurrent Receipt of VA Compensation and Retired Pay through a program known as CRDP (Concurrent Retirement and Disability Pay — to learn more about the nuts and bolts of the program follow this link).  Concurrent receipt means that you receive checks from both DFAS and the VA, and that you are entitled to the full amount of eligibility from both.  Now the numbers are quite different when you calculate them using the numbers above:

Since you are eligible to receive both checks, you will receive your full settlement check from the VA as well as back pay for the pension amount that was deducted and replaced by the monthly VA claim amount, less taxes on that amount.  Sounds complicated, but it really isn’t. The math looks like this:  (Full VA settlement amount) $3200 + (Pension amount deducted and replaced by the VA) $1200 – (taxes on the pension amount deducted and replaced by the VA) $640 = $3760.

If your brain hurts, that’s ok.  The bottom line is that the DFAS and the VA are sending you a check that will cover the cost of whole lot of aspirin.

Another “plan” to reduce retired veteran benefits

I wrote about not long ago about the government’s strong desire to reduce the health insurance benefit for military retirees.  The subject has reared its ugly head again with a renewed attack on retirees who are enrolled in TRICARE, the health care system for military members, their families, and retirees.

As reported in the Marine Corps Times yesterday (you can read the whole article here), Chuck Hagel, the Secretary of Defense, proposed that “working age” retirees should not be able to utilize TRICARE as their primary health care system but instead should be required to use their employer’s plan instead.  TRICARE would only be used as a secondary or backup plan.

Although the proposal is a long way from being written into legislation, it is a strong indicator that veterans are choice targets in the DOD’s battle of the budget.  Should it become law, though, it will be a significant blow to the 1.6 million veteran retirees who are currently enrolled in TRICARE but have not yet reached age 65.

Interestingly, the issue is one that impacts the Department of Defense and not the Department of Veterans Affairs, which is why the SecDef is pushing for the change.  Most benefits for veterans are covered by the VA, but in the case of retirees it is the DOD that pays the bills.  A retiree’s pension comes from the same place that it did when he or she was still in uniform: the Defense Finance and Accounting Service.  TRICARE, the military and retiree health plan, is also covered by the DOD’s budget.

And Chuck Hagel doesn’t like that very much.

The DOD continues to bang the drum of readiness, and as happens at the end of every war the organization focuses inwards to guard as much of the fiscal pie as possible from those who demand that the post-war military machine shrink in response to the wars no longer being fought.

I find that to be as normal as dawn follows darkness, but I also find the scapegoating of retirees to be a bit insulting.  It is OK for the military to squander $34 million on a useless headquarters in Afghanistan that the military commanders on the ground didn’t even want, but it is not OK for the Department of Defense to honor its commitment to those who dedicate decades of their lives to the defense of the nation.  Instead of conducting a thorough and critical review of the hundreds of billions of dollars spent (and often squandered) on defense equipment and service contracts Hagel finds it easier to go after those who actually went into harm’s way than the connected and powerful  who never left the comfort of their own living rooms.

It is an example of the oddly twisted thinking that pervades governmental agencies, and in my opinion it is just as hypocritical as the administration pushing to subsidize healthcare costs for members of congress and their staffs while ignoring small business’s pleas for relief from the costly requirements.

Anyhow, if having my promised access to health care is cut as an expedient to allow the DOD to keep squandering the taxpayer’s dollar, then so be it.

All I ask is for every military recruiter from every branch of service to explain to every prospective recruit and officer candidate that the benefits that they are being promised in exchange for the opportunity to risk their lives are not really promises.

They’re just part of the honorless practice of bait and switch.  I had always thought that we, as a nation, were better than that.

Sadly, I guess not.

The things you don’t expect: life out of uniform is not as easy as you might think!

This morning I literally ran into a friend of mine as I was out pounding the pavement on my daily jog.  He was returning from his morning run and I was just heading out on mine, so we stopped for a few minutes and catch up on things.

We chatted about this and that, and before long we were comparing life in uniform to life after you hang your uniform up.  In addition to the obvious differences, like being able to sleep late, grow your hair, and go for a run without wearing an obnoxiously annoying reflective belt, there are some that become apparent only when you need to get something done.

One of the tremendous strengths of the military is that many of the mundane, yet annoying, aspects of life are taken care of for you.  Things like food (which sits waiting for you to start eating at chowhalls on every base) and clothes (with uniforms being issued and a clothing allowance to help defray the cost to replace them) and administration (with clerks waiting to solve any problems you may have with your pay and allowances).  These things are taken care of so that warfighters can devote their time and efforts on the mission of preparing for and fighting our nation’s battles and winning our country’s wars.

Not so much in the civilian world.  Those things get done by one person.

You.

Although it may seem obvious that you will need to take care of all of these things (and more) yourself, it is not so simple.  What I was not really prepared for was the amount of time that I had to dedicate to taking care of all of those mundane little ankle biting tasks that civilians have been dealing with their whole lives.  Where before things like pay problems and meals seemed to take care of themselves I now found myself spending hours at the bank and the grocery store because otherwise my family and I would be broke and hungry.  Suddenly there was nobody around to deal with those things but me.

Civilians are used to it.  They cook their own meals because there are no chowhalls in suburbia.  They go shopping and buy their own clothes, which can be quite daunting when you consider that military folks have been wearing the same shoes and combat boots and dress uniforms for decades. When they have a problem with their paychecks or vacation days they get to go deal with it themselves because there is no First Sergeant or Sergeant Major or Chief Petty Officer hanging around the office to deal with such matters.

One of the things that comes with hanging up your uniform is freedom.  Freedom from people in different uniforms (or no uniforms at all) shooting at you as well as from people in your own uniform yelling at you and waking you up in the middle of the night.  With that freedom, however, comes responsibility for yourself in a way that has not been a critical part of your life since you first swore to support and defend the Constitution of the United States of America.

Now you have to do all of those little annoying ankle-biting things that everybody else in the civilian world does.  And let me tell you, it takes some getting used to because everything takes a lot longer than you think it should and there is nobody there to tell you the right or wrong way to do things.  Just like you once learned how to become a successful Soldier, Sailor, Airman, or Marine you must now learn how to become a successful civilian.

This time, though, you don’ t have a Drill Instructor “mentoring” you along.  You also don’t have a platoon of bald and nervous friends learning the ropes with you.  This time you get to figure it all out on your own.  But, all things considered, it isn’t bad.  It’s just a little surprising.

And really annoying.

Good luck!

So your VA disability claim is settled. Now what?

As I wrote a few weeks ago my VA disability claim was finally settled.  Suddenly, after nearly two years of pushing the rope up the hill, I found myself with one less windmill at which to tilt.

Although I can now put down my lance and put my trusty steed back in the barn, I still find the whole process to be pretty confusing.  In particular, figuring out just what being identified as a disabled veteran means in real terms — meaning just what impact does my rating have on a retiree’s bank account?

It turns out that if you have incurred an injury while serving in uniform, and that injury is determined to be disabling, then you are entitled to compensation from the Veterans Administration.  That compensation is paid directly to the veteran by the VA, which is nice.  It is also tax free, which is nicer.

But, as usual, things are not as simple as they seem.  Particularly for retirees who receive a pension for their 20+ years of service to the nation.  Like me.

In that case, any remuneration that you receive from the VA is offset by an equal deduction from your pension, with the only really difference in your retirement check being the portion from the VA that is tax free.  For example (and this example is in round numbers to keep things easy), if your pension is $1500 per month, you receive a check for $1500 minus any taxes (let’s say 20%, which is $300), or $1200.

Now, let’s say that you receive a disability rating that results in a payment from the VA of $100.  That $100 is not added to your check for a total of $1600.  Instead, $100 of the $1500 that was paid by the Defense Finance and Accounting Service (DFAS) is now paid by the VA, so the total pension amount stays the same.  What changes is how the taxes are computed.

Now you have $1400 that is taxable, which results in a slightly lower tax bill.  Here is the math:

$1400 x 20% = $280 in taxes.

$1400 (from DFAS) + $100 (from the VA) = $1500 (which is your pension amount).

$1500 (pension + VA Disability) – $280 (taxes) = $1220.

Sooooo…..as a retiree you get an extra twenty bucks in your monthly check.  If you are not a retiree, however, you get the full $100.

That seems really odd.  But wait, there’s more!

The reduction of your pension by the disability payment changes at the 50% disability threshold.  If you are rated as having a disability rating of 50% or more, then the bizarre math problem that we just performed goes away.  In that case, you receive your entire pension as well as the complete VA disability amount.

Sounds bizarre, eh?  I’m not making this stuff up!  Really!

It is known as Concurrent Receipt of VA Compensation and Retired Pay.  For a more in depth explanation of the math problems above, you can read all about how it all works by following this link.

For those of you who were wondering how pensions are affected by VA disability benefits, well, now you know.  For those of you to whom this does not apply, thanks for reading anyway!