VA RETRO PAY PROJECT UPDATE - May 1, 2008
Posted by Service Officer on April 30th, 2008
In OCT 06, the Defense Finance and Accounting Service (DFAS) and the Department of Veteran’s Affairs (VA) initiated the process of providing retroactive compensation for more than 133,000 disabled recipients of either Combat Related Special Compensation (CRSC) or Concurrent Retired Disability Payment (CRDP) and VA compensation. Since then, more than 85,000 additional retirees have been identified by the VA as potentially eligible for retroactive payment. As of April 20, DFAS reported that nearly 179,000 accounts have been processed, with approximately 39,000 remaining. Of those, more than 16,000 are new cases. But about 23,000 of the most complicated cases from the originally identified group are still being worked. The joint process gives priority to the original cases, but those remaining require multiple laborious computations. In many cases, these can only be done by hand, because the individuals have had several VA rating changes and have switched back and forth between CRDP and CRSC payments with annual changes in the relative value of the two programs - due to the rating changes or the ramp-up of CRDP payments, or both.
DFAS has reported that by 31 MAY, it will complete its review of the initial 133,000 files of disabled retirees The number of contractors hired and trained to work the files has climbed to 233 from 51 since DEC 07. So far, DFAS and the Department of Veterans Affairs have paid a combined $308 million in back payments to disabled military retirees. Both continue to identify new retirees that may be eligible for retroactive compensation and are working to developing automated changes that will expedite that process. On a separate topic, medical retirees with less than 20 years of service will soon be able to have their CRSC applications adjudicated for disabilities incurred as a result of combat or combat related events. DoD expects to release guidance to the military services by the end of this month or in early May. MOAA will keep you informed as soon as the guidance is published. [Source: NAUS Weekly Update & MOAA Leg Up 25 Apr 08 ++]
