When a veteran has prior military service that included eligibility for retired pay, the VA is required to check whether that veteran is also receiving military retirement pay before releasing disability compensation. This is because, under 38 U.S.C. § 5304 and the concept of concurrent receipt, veterans generally cannot receive both full military retired pay and full VA disability compensation for the same period without an offset, unless they qualify for an exception such as Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC). If VA records show a veteran had reserve or retirement-eligible service, the system may automatically flag the file to verify retirement status, which can temporarily hold or reduce a payment while the VA confirms whether an offset applies.
When the VSO or veteran files the initial claim (often using VA Form 21-526EZ), it helps to explicitly state whether the veteran is receiving military retirement pay, and if not, to say so clearly. If retirement pay was waived, was never received, or the veteran separated without qualifying for retired pay, providing a statement or Defense Finance and Accounting Service (DFAS) documentation confirming this can prevent an unnecessary hold. Because VA and DFAS records do not always sync in real time, mismatches are a fairly common source of delayed payments, even when no retirement pay is actually being received.
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 →Once the VA verifies that no offset applies, withheld funds are typically released, though the exact timeline varies from case to case and cannot be guaranteed. If a similar hold happens again in the future, veterans can speed resolution by proactively submitting a signed statement clarifying retirement pay status, along with any DD Form 214 or DFAS letter showing no retired pay was awarded.
Veterans who find themselves in this situation should contact their VSO or the VA directly to confirm exactly what information triggered the withholding, and submit clear documentation showing whether retirement pay was or was not received so the offset determination can be finalized without further delay.
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