When a service member is medically retired through the Integrated Disability Evaluation System (IDES), two separate systems pay out, and they are not simply added together. DFAS pays military retired pay based on your retirement calculation (either the disability percentage assigned by the military, or years of service/High-3, whichever method applies), while the VA pays disability compensation based on your VA combined rating. Under 38 U.S.C. § 5305, a military retiree cannot receive full retired pay and full VA compensation at the same time unless they qualify for an exception. For most medical retirees with fewer than 20 years of service, this means retired pay is offset (reduced) dollar-for-dollar by the amount of VA compensation received, a process often called the "VA waiver." The retiree waives a portion of military retired pay equal to the VA payment, because military retired pay is taxable while VA compensation is not, so most people choose to take the VA portion.
Concurrent Receipt programs that allow full retired pay plus full VA pay without offset are Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC). CRDP generally requires at least 20 years of service (or qualifying combat-related conditions under certain rules) and a VA rating of 50% or higher, so most short-service medical retirees do not qualify. CRSC requires that the disabilities be combat-related or specifically tied to combat, training for combat, hazardous duty, or an instrumentality of war, and requires a separate application through your branch of service, not the VA.
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →First payments after retirement are often irregular because DFAS has to reconcile the retroactive start date, prorate the first month, and apply the VA offset once the VA start date and award amount are confirmed, which can take weeks after the VA payment begins. Discrepancies in the first one or two checks are common and do not necessarily indicate an error, but they should still be verified.
The concrete next step is to request a retired pay statement (an RAS) through myPay or by calling DFAS directly, compare it line by line against your VA award letter showing the effective date and monthly amount, and if the offset or waiver amount doesn't match, file a pay inquiry with DFAS retiree pay services rather than relying on command or PEBLO staff, who do not control pay calculations.
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