Retirement Benefits

November 2009 Navy

by LCDR David M. Bradley, USN (Ret)

Do you know what benefits to which you are entitled? Most are aware of the unlimited commissary and exchange privileges, medical (be sure and sign up for Part B when you become eligible for Medicare to continue your TRICARE coverage), 5% Veteran’s preference (10% if rated disabled) with almost all Federal, State, and local governmental agencies, but were you aware of the many forms of disability retirement, forms of disability pay, death benefits, life insurance, retirement, and long term or nursing homes, home loans, and Space-A travel?

Disability Retirement

Disability retirement comes in two flavors, military and VA. Military disability retirement before the completion of 20 years of service is referred to as retired with a disability. Retirement after 20 years of service and a permanent military disability rating of 30% or more means entitled to disability retirement pay. Some military personnel may have temporary disabilities that prevent them from performing their military duties and are placed on the Temporary Disability Retired List and have their case review every 18 months. Determination must be made within five years as to the permanency of the disability.

VA disability generally results with the discovery of disabling factors discovered subsequent to normal retirement. The disability must be incurred or aggravated during active service. Compensation received from the VA reduces the military retirement (offset) by a like amount, but it is tax free. Veterans not qualifying for military retirement may qualify for VA disability and vice versa. The offset is in the process of changing with the disability percentage being reduced over the coming years. There is no offset for those rated 100%. The specifics of Concurrent Retirement and Disability Pay and the Combat-Related Special Compensation are involved, and I’ll addresses them in a later article.

Death Benefits

The Department of Veterans Affairs is the primary POC, and the civilian funeral director usually handles the forms and contacts. The VA provides an American flag to all honorably discharged veterans and will provide up to $300 for a plot and up to $300 for burial expenses for nonservice related deaths. Service-related deaths also receive $2000 if the death occurred after 9/11/01. If the death is service connected and the burial is in a VA national cemetery, some or all of the transportation costs may be covered. There is no time limit on reimbursement claims for service-related death and a two-year limit on non-service.

Funeral honors are normally handled by the funeral director, and honor guards may be supplied (as a courtesy) by the nearest military installation. As an aside, Reservists may receive drill credit for performing this service. Proof of service is required to receive honors. Headstones or grave markers are provided by the VA for all internments.

Any military retiree and members who served 20 or more years and were eligible for retired pay may be buried in any of the VA or National Park Service-operated cemeteries if space is available, and no costs are involved. Eligible family members may also be buried at the same site and may be interred first should they die before the retiree.

Any veteran or retiree with a disability rated at 30% or more, discharged before 10/01/49, may be buried at Arlington National Cemetery. Also eligible are those who die on active duty, Guard and Reserve retirees after age 60, former POWs, Purple Heart recipients, and any holder of the top combat decorations (MOH, DSC, AFC, NC, DSM, and Silver Star). Arlington, as with most national cemeteries, also provides vaults with niches for urns containing ashes of the deceased.

A certificate, signed by the President, honoring the member and thanking the family for the veteran’s service is also provided by the VA.

Next month – life insurance, retirement, and long term or nursing homes, home loans, and Space-A travel. Take care.