http://www.navytimes.com/story.php?f=0-NAVYPAPER-2089257.php



Veterans soon could see back disability pay


By Gordon Lubold

Navy TimesStaff writer
18 September 2006 Issue


More than 100,000 veterans will begin to get retroactive disability pay as early as this month after the Defense Department and the Department of Veterans Affairs resolved a long-running issue on paying veterans who have been shortchanged. Veterans who were paid benefits for either Combat-Related Special Compensation or Concurrent Retirement and Disability Pay and were underpaid due to changes in federal law may begin to see retroactive payments right away.

However, it will take up to a year for all the payments to be made, and most of them won’t be made until after Jan. 1, according to a statement from the Defense Finance and Accounting System, which will oversee the payments. The issue stems from the two disability programs, Combat-Related Special Compensation and Concurrent Retirement and Disability Pay, which created administrative and budgetary headaches for the Defense Department and VA as the two agencies attempted to pay retirees under either program.

In 2003, the Pentagon and VA implemented a series of new laws that ended the ban on “concurrent receipt,” in which retirees receive both retirement and VA disability payments.
That meant veterans who should receive payments under both programs but who had been banned until then from receiving two sets of entitlements were due money. That triggered a yearlong struggle to figure out just who rated what and how much.

Now that the issue has been all but straightened out for future payments, accountants are going back to find and fix problems for payments that have already begun to retirees. More information from DFAS, which will oversee the payments, will be made available by late September, officials said. After budgetary issues were worked out between the two departments, officials then had to figure out how to make the payments to veterans. It proved no simple task.

“We have worked closely with [VA] to resolve logistical issues required to make the payments,” the DFAS statement said.Pentagon officials said they’re glad the problem is over and look forward to seeing the payments start going out to veterans soon.“We are pleased that DFAS and [VA] have developed procedures to address the payment of retroactive CRDP/CRSC entitlements and support their efforts to make them as expeditiously as possible,” said Maj. Stewart Upton, a Pentagon spokesman.

Upton referred queries to officials at DFAS, who weren’t immediately available.It’s not yet clear how much money will be paid to veterans, although it’s expected to be millions of dollars. No average payment was immediately available from officials at the finance and accounting agency, but some veterans are owed thousands of dollars.Those payments, however, won’t come quick.

Reviewing cases
In some cases, accountants may have to review individual cases by hand to ensure the retroactive payments are made properly, as systems are updated to support the thousands of payments to be issued. “Until the systems are enhanced, manual calculations are being made to determine the appropriate payment amounts for those retirees entitled to additional money from [the Defense Finance and Accounting System],” the statement read. According to the Military Officers Association of America, VA, which is paying for the retroactive payments, will have a full plate now as it attempts to refigure payment amounts for thousands of people.

“VA officials caution that, if any unexpected glitches crop up, the payments will be delayed until the second half of January,” the association said in an informational brief on its Web site. “That’s because they’ll have their hands full at the end of the year reprogramming and implementing new pay rates for 2007.”While it may take some time for everyone to get their payments, the fact that the Defense Department and VA finally reached agreement on the issue is a major step forward for veterans affected by the issue.

Military advocates who tracked the issue said veterans have long known they were owed money. The devil, however, was in the details. Now many of those details have been worked out in principle, said Steven Strobridge, a retired Air Force colonel who serves as the association’s government relations director. “People were going to get their money sooner or later,” Strobridge said. “The problem was it was a real tough nut to crack and it required a lot of tough negotiations about not only who is going to pay for it, but then how do you figure out who is owed how much and why.”
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Contributed,

YNCS Don Harribine, USN(ret)