SEVERANCE PAY INFO

Disability Severance Pay
All branches have the authority to separate a service member on the Temporary Disability Retirement List (TDRL). Separation may occur with entitlement to disability severance pay or without.

You must meet all of the following requirements to be eligible:

  • be found unfit for duty,
  • have less than 20 years of service,
  • and have a disability rating of less than 30%.
Prior to January 28, 2008 members were required to have at least 6 months of service to qualify for discharge with severance pay. This rule no longer applies.

If you were discharged with severance pay, you cannot go back on active duty or choose to apply for retirement later. However, you may be eligible to apply for monthly disability compensation from the Department of Veterans Affairs (VA) if the VA determines your disability is service-connected.

Calculation and Payment
Disability severance pay is a one-time lump sum payment. The amount equals 2 months of basic pay for each year of service which includes active service and inactive duty points, but the total service years cannot exceed 19 years. Additionally, the minimum number of years required for computation purposes is six years for a disability incurred in the line of duty in a combat zone, or 3 years in the case of any other member. Prior to January 28, 2008, a maximum of 12 years and minimum of three years creditable service was used (a maximum of 24 months basic pay).

"NOW", The percentage of disability awarded has no bearing on the amount of severance pay you are entitled to receive. Severance pay is computed using years of service and base pay--for those who entered service after 8 September 1980, pay is based on the high 3 average.
Severance pay is computed in two ways:
(1) Members being discharged for non-combat related conditions: multiply years of service (minimum of 3 years and not more than 19 years) times twice the amount of monthly base pay (based on the high 3 average).

(2) Members being discharged for combat related conditions: multiply years of service (minimum of 6 years and not more than 19 years) times twice the amount of monthly base pay (based on the high 3 average). Count as a whole year service of six months or more; disregard service of less than 6 months. For each computation, if the member has less than the minimum number of years of service (3 or 6) they will be paid as if they have the minimum years of service (3 or 6).

Also, you have 3 years from the time you file the income tax form for the severance, ie 2017 in your case to file a 1040x and get back the taxes you paid on the severance that the VA has taken away.
 
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Can you explain the 'High 3 rule'? I'm not really sure what that means. But this is all great information thank you!
 
rocky8289 said:
"High-3" means the average of your 3 highest yearly salaries.
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So since I picked up Sgt in January, they'll average my last 2 years as a Cpl with my Sgt's pay from this year if I get my severance within this year?
 
How soon after you signed you DA 199 you get paid? Also If I want to change my mind about taking this lump sum I be able to to denied and appeal?
 
Rocky8289,

Where did you find this because I've been told the pay is calculated on the grade you were when you got assigned to the TDRL or discharged? Doesn't make any sense. I just got my discharge from the TDRL and am awaiting my severance check. I was a Sergeant from 2010 to 2013 but then got busted down to Corporal in 2013 until my discharge and assignment to the TDRL in March of 2015. It would be AMAZING to get paid for my time as a Sergeant but my PEB Lawyer told me it was for the grade you were when you got out.

I'd really like to know what the source of this info is and where I can find it please.
 
marioa said:
Rocky8289,

Where did you find this because I've been told the pay is calculated on the grade you were when you got assigned to the TDRL or discharged? Doesn't make any sense. I just got my discharge from the TDRL and am awaiting my severance check. I was a Sergeant from 2010 to 2013 but then got busted down to Corporal in 2013 until my discharge and assignment to the TDRL in March of 2015. It would be AMAZING to get paid for my time as a Sergeant but my PEB Lawyer told me it was for the grade you were when you got out.

I'd really like to know what the source of this info is and where I can find it please.
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Severance pay uses the highest monthly salary satisfactorily served.

Disability Severance Pay is a one-time, lump sum payment and is computed as follows:

  • 2 x basic pay for applicable grade x years of service (subject to minimum 3 or 6 years) not to exceed 19 years.
  • Applicable grade is the highest of the following:
    • Current grade.
    • Highest grade satisfactorily served.
    • Grade to which the Soldier would have been promoted had it not been for the disability for which he is being separated. This is colloquially referred to as, "promotion list grade."
  • Soldiers are credited with a minimum of 3 years of service as computed under 10 USC 1208 unless they qualify for the minimum 6 years of service.
  • To qualify for the minimum 6 years, the disability must be incurred in line of duty in a combat zone as designated by the Secretary of Defense OR incurred during the performance of duty in combat-related operations as designated by the Secretary of Defense. DoD policy for the "combat related operations" determination is that the disability must be incurred as a result of armed conflict as set forth in DoD Instruction 1332.38, paragraph E3.P5.1.2.

 
E5 in 2013 (I'll use five years as a baseline) is $2529.90

E4 in 2015 (I'll use six years) is $2451.60

Therefore they will use your E5 pay of approximately $2529.90 to compute your severance. Here is the 2013 pay chart in case you had more or less than 5 years. You do not need the 2015 pay chart for E4 as you were maxed out in pay.

upload_2017-9-24_7-5-40.png
 
2 times E5 @ 10 years x 13 years of service when assigned to TDRL?

2 x $ = $3045.60 = $6,091.20 x 13 = $79,185.60 +/- based on High 3...?

?!?!?
 
marioa said:
2 times E5 @ 10 years x 13 years of service when assigned to TDRL?

2 x $ = $3045.60 = $6,091.20 x 13 = $79,185.60 +/- based on High 3...?

?!?!?
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It is not based on the high 3 for severance. Just the highest grade you satisfactorily served. High 3 only pertains to retirement.
 
I have a strange disability severance pay question.

1. I will have 14 years of Active Duty and 399 days of points from my reserve time. I spent many years on IRR. My current base pay is at the "24 year rate", even though my Active Duty time is much lower due to the IRR and some Reserve time served.

2. I thought my DSP would be calculated at: "14 year rate" base pay X 2 X 15 years of service

3. I've read the DoD FMR 7a-35 and this seems correct but I get confused because my current base pay is so much higher with that 24 year rate.

Any help is GREATLY appreciated as the difference in compenstaion is obviously huge. Thank you in advance.
 
AFGDustoff said:
I have a strange disability severance pay question.

1. I will have 14 years of Active Duty and 399 days of points from my reserve time. I spent many years on IRR. My current base pay is at the "24 year rate", even though my Active Duty time is much lower due to the IRR and some Reserve time served.

2. I thought my DSP would be calculated at: "14 year rate" base pay X 2 X 15 years of service

3. I've read the DoD FMR 7a-35 and this seems correct but I get confused because my current base pay is so much higher with that 24 year rate.

Any help is GREATLY appreciated as the difference in compenstaion is obviously huge. Thank you in advance.
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I hit you up on PM.
 
Permanent Disability Retired List
If your disability is found to be permanent and is rated at 30 percent or greater, or you have 20 or more years of service, you will be placed on the Permanent Disability Retired List (PDRL).

Your retired pay will be computed using one of two methods.

  • Your disability percentage, referred to as Method A.
  • Your years of active service, referred to as Method B.
Your pay will be computed based on whichever method is more beneficial for you.

If you have been transferred from the TDRL to the PDRL, your retired pay will be recalculated using your most current disability rating.
 
NJOnguard said:
Permanent Disability Retired List
If your disability is found to be permanent and is rated at 30 percent or greater, or you have 20 or more years of service, you will be placed on the Permanent Disability Retired List (PDRL).

Your retired pay will be computed using one of two methods.

  • Your disability percentage, referred to as Method A.
  • Your years of active service, referred to as Method B.
Your pay will be computed based on whichever method is more beneficial for you.
If you have been transferred from the TDRL to the PDRL, your retired pay will be recalculated using your most current disability rating.
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Hello,

Your info is correct.

However, the subject in this thread is not retired pay, but Disability Severance Pay. Additionally, you have replied to a post that was made in January 2018 and he has not been seen since March 2018.

The motive for my post is to suggest that you probably will not receive a reply from other contributors in this thread.

Regards,
Ron
 
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