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Pension/disability VA penalties

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Junior Member
What is the name of your state? Massachusetts

Hello All,

My fiance is a veteran of the coast guard, he was in for 12 years and would have been a lifer if not for the desease that caused him to be honorably discharged. He receives or rather received a pension/disability from the VA which with cost of living increasing has not been enough to support his two daughters from a previous marriage and our family. He took a job to compensate and now his pension has been stopped completely until his case is reviewed. I was just curious as to what kind of penalties we will be subject to. Will we have to pay back on the pension for the months he worked? Will it just be withheld until what he owes is cleared? We havent been told much by the VA and are going seek legal aid. I would just like to know a little more going into this. I'd like to have a better understanding of the proccess. I've been all over the net trying to find information but haven't really found anything that seems to pertain to our situation.

Thank you so much to whom ever responds.

garrula lingua

Senior Member
You're describing a service-connected disability (caused the discharge);
he can earn as much as he wants with that type of disability (but he can't receive a pension based on service, as well) which is based on the percentage of his disability:
Previous Page Veterans with Service-Connected Disabilities
Disability Compensation
Disability compensation is a monetary benefit paid to veterans who are disabled by an injury or disease that was incurred or aggravated during active military service. These disabilities are considered to be service-connected. Disability compensation varies with the degree of disability and the number of dependents, and is paid monthly. The benefits are not subject to federal or state income tax.

The payment of military retirement pay, disability severance pay and separation incentive payments known as SSB and VSI (Special Separation Benefits and Voluntary Separation Incentives) affects the amount of VA compensation paid.

To be eligible, the service of the veteran must have been terminated through separation or discharge under conditions other than dishonorable. For details, visit: http://www.vba.va.gov/bln/21/.

2006 Disability Compensation Rates

Disability Monthly Rate
10 percent $112
20 percent $218
30 percent $337
40 percent $485
50 percent $690
60 percent $873
70 percent $1,099
80 percent $1,277
90 percent $1,436
100 percent $2,393
Veterans with disability ratings of at least 30 percent are eligible for additional allowances for dependents, including spouses, minor children, children between the ages of 18 and 23 who are attending school, children who are permanently incapable of self-support because of a disability arising before age 18, and dependent parents. The additional amount depends on the disability rating.

Veterans with certain severe disabilities may be eligible for additional special monthly compensation.
There is another type of VA pension which is based on low-income; that is not service-connected.
Go to the Veteran's Administration website and read further.
garrula lingua said:
You're describing a service-connected disability (caused the discharge);
he can earn as much as he wants with that type of disability (but he can't receive a pension based on service, as well) which is based on the percentage of his disability:

Not quite correct.

If he was receiving VA benefits based on permanent rating of less than 100%, but receiving 100% rating benefits based on being considered unemployable AND then goes to work at wages considered beyond part-time, his temporary rating & benefits of based on the 100% rating WILL be affected. Once re-adjudicated, he should still receive benefits based on the permanent rating, unless the medical condition upon which that was based has changed also.

Example - I have a brother who has a 70% rating based on ankle injuries & PTSD. Right now he is considered unemployable based on recent medical history and receives benefits based on a 100% rating. Were he to gain & hold full-time employment beyond a certain period, he would lose the 100% benefits & only keep getting the 70% rate. Another example-friend's husband had two heart attacks, other medical condition & was medically retired. Has a permanent (more or less) rating of 80% from VA, but draw 100% benefits as he is not cleared to work in the profession he had. If he can be successfully retrained & gain employment, he will only draw benefits based on his 80% rating.

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