General Information About Compensation
Eligibility - You may be entitled to VA disability compensation for any medical condition or injury that
was incurred in or aggravated by your military service if you were released from active military duty with an
other than dishonorable discharge. There is no time limit to apply for VA disability compensation. However, you
are encouraged to apply within one year of your release from active duty as entitlement is established
retroactively to the date of separation if your claim is filed within this period. The effective date of
eligibility for benefits will be based upon the date of your claim if you apply beyond the one-year period.
Other Benefits/Payments May Affect Your VA Compensation
Military Retired Pay - By law, the payment of VA compensation benefits is affected by the receipt of
military retired pay. If you receive military retirement, you may initiate a waiver of your retired pay to
receive the full amount of VA compensation. Until the waiver takes effect, your compensation will be adjusted
or withheld depending on the amount of military retired pay you are entitled to. The advantage of waiving military
retired pay for VA compensation is that VA benefits are not taxable.
Disability Severance Pay - By law, payment of VA compensation and military disability severance pay
for the same medical condition or disability is prohibited. VA compensation will be withheld on a monthly basis until
the total amount of military severance pay has been recovered.
Special Separation Benefit (SSB) - VA compensation will be withheld in full until the amount of the
SSB has been recovered.
Voluntary Separation Incentive (VSI) - Your annual VSI payment will be reduced by an amount
equal to the amount of VA compensation paid for the same period.
Selected Reserve and National Guard - By law, if you are an active member of the Selected
Reserve or National Guard, your VA compensation will be withheld at the rate of one day of pay for each drill period
served. Also, VA compensation is not payable while serving full-time on active duty.