ETS’d (2024) active duty at E5 after 8 years and joined the reserves for a $15Kbonus plus $12k continuation pay from switching to BRS (2024).
Just got VA rating, and would like to keep disability pay but afraid of having to pay back bonus and continuation pay. Don’t mind paying back drill pay.
Please advise
Keep VA disability or Military Pay?
byu/Star_sixty_seven inMilitaryFinance
Posted by Star_sixty_seven
2 Comments
I was in a similar situation when I left active duty. What I did was keep the VA disability and just paid back drill pay. It was way easier and less stressful than dealing with the bonus payback. VA disability is tax-free and steady, so it’s a good foundation to have while you’re figuring out what’s next. You might want to chat with finance or VA just to make sure everything’s squared away.
Doesn’t it just suspend your VA pay while on active orders? If you received a bonus did you already spend it?
We have no idea about your financials so is collecting VA disability now outweigh the bonus and other pay you get.
You collect your rating payments when you leave the reserves anyway so I would weigh what you would earn in VA pay vs. what you would earn during your contract length and see which is greater.
You are also collecting points towards retirement which can be a greater benefit.