The following disclaimer is included on your original 21-526. It's an automatic waiver of VA compensation for receipt of military retired pay. VA Compensation is offset dollar for dollar for military retired pay, with a few exceptions. You can opt out of VA compensation, and get service connected for your disabilities and receive full retired pay as well. The issue is, VA disability compensation is tax-exempt, retired pay is not UNLESS it is disability retired pay. So, for simplicity's sake, let's say $10,000 of your annual income entitlement is standard length of duty retired pay, but you're entitled to, and receive, $5,000 in VA compensation. You'll receive $5k from retired pay, and $5k from VA. Only the $5k in retirement pay is taxable. The $5k from VA is tax exempt.
"IMPORTANT: Submission of this application constitutes an election of VA compensation in lieu of military retired pay if it is determined you are entitled to both
benefits. If you are entitled to receive military retired pay, your retired pay may be reduced by the amount of any VA compensation that you are awarded. VA will
notify the Military Retired Pay Center of all benefit changes. Receipt of military retired pay or Voluntary Separation Incentive (VSI) and VA compensation at the same
time may result in an overpayment, which may be subject to collection. However, if you do not want to receive VA compensation in lieu of military retired pay, you
should check the box in Item 17. Please note that if you check the box in Item 17, you will not receive VA compensation, if granted."
Edited by Slow Drifter (06/18/15 06:10 PM)
"I have no idea what WW-III will be fought with, but WW-IV will be fought with sticks and stones."