Jan 05 2010
Agent Orange, Stop-Loss Payments, and Retired Pay Updates
Agent Orange. You may be aware that the VA recently added (October 2009) new illnesses to the list of Agent Orange Service-connected diseases. If not, check out my Post from 14 Oct 09 here.
We’ve come to find out the announcement was a bit premature. While the diseases have been added to the list, the claims processes, rating factors and systems are not ready to handle the claims. The VA has told Veteran Service Offices to process claims as normal however, the claims decision will be “deferred.” This means your claim will be held until the bureacracy catches up and then the claim will be processed. Filing a claim, even when deferred, gets your claim date in the system so any retro payments will be based on the claim date.
Stop-Loss. Another delay in the works as the Services determine the impact of a provision in the law overlooked previously. If you were stop-lossed and later re-upped/accepted a reenlistment-retention bonus, you are not eligible for stop-loss pay. There won’t be a recoupment of money if you have been paid (so few have been paid in total). The intent is to pay members extended beyond their term of service and who were getting out of the Service. The intent wasn’t to pay people who were staying in. Now there is more paperwork to be reviewed to determine who is eligible and who isn’t. Here’s more info.
Retired Pay. Noticed a change in your retired pay? Here’s the deal… Last February as part of an economic stimulus program, your tax withholding was reduced to put more money in your pocket. The stimulus was not continued into 2010 so the tax withholding rates went back up and your retired pay went down. Usually the difference is around $17. If you don’t like the amount received or paid in taxes, just fill out a new IRS W-4 form and sent to DFAS or your pay agent. You can also go to the DFAS “My Pay” web site to change your tax withholding.
This comment concerns your above retired pay item.
Last year, with the change in withholding, my taxes dropped nearly $67.00 per month. To preclude a larger than normal tax bill at the end of the year, I immediately set up an additional FITW of $65.00. Therefore, my total FITW was about the same.
The most recent RAS showed an increase of almost $17.00 in FITW. However, the “normal” FITW is still $51.00 less than what was being withheld before the nearly $67.00 “windfall.”
There have not been any changes in my W4 status.
Because the current total tax being withheld is still below the amount that was being withheld prior to the change last May, I have opted not to change the additional FITW.
Your description of the Agent Orange decision isn’t exactly correct. The Secretary has announced his decision to add additional diseases to the presumptive service-connection list, but they are not “on the list” as you state because the Agent Orange statute requires VA to publish regulations in the Federal Register before that can happen. That Federal rulemaking process is underway, but it takes some time to complete. The law provides that after the Secretary’s decision VA will publish a proposed rule, which invites the public time to submit their comments. Once that process is completed, the law requires that VA publish the final rule, responding to any public comments submitted and modifying the proposed rule, if necessary. Once the final rule is published, the new regulations can take effect and are “added to the list” in the Code of Federal Regulations.
I want to change my withholding tax using a W-4 form. I am trying to access ..”MY PAY” website. I do not have a pin number. How do I obtain one? Thank you..C.W.Hagert CWO3 USCG (ret)
RE: Retired Pay. Here’s the ugly thing about the tax withholding changes. A lot of people probably don’t realize the tax rates didn’t go down when the withholding did. So if you like to cut it close to the wire and not give Uncle Sam extra monthly money through the year, you’re liable to get an unpleasant surprise come tax filing time.
You may want to also mention to your Vietnam veteran readers that it is worthwhile to get any sort of tremor evaluated, even if it is presently more annoying than impairing. If it is diagnosed as Parkinsonism VA may rate you at zero disability. But that is still worthwhile. If the condition worsens with age you will have already established that you have this incurable condition and not have to hassle with that aspect in making your claim for increased rating. R. Douville, CDR, USCG(Ret)
Sir:
I thought your comments about VA be unable to “handle the claims” generated by the latest round of additions to the Agent Orange presumptive list misleading. It seems to intentionally perpetuate negative publicity on VA.
Yes, these new presumptives will significantly add to the Veterans Benefits Adiministration claims backlog and processing times, but you fail to mention that the regulatory process is the current source of delay in granting benefits.
As you should be aware, VA must first write a proposed rule, publish it in the Federal Register, assign a public comment period of undetermined duration (usually 60-120 days), analyse the comments and then publish a final rule in the Federal Register. Only then will VA be legally authorized to promulgate decisions. VA bureaucracy will not have to “catch up.”
Addendum: VA is required by law to process claims by date received and no priority is likely to be given to Parkinson’s, b-cell leukemia or ischemic heart disease claims. Claims processing may be advanced only on the bases of advanced age (75 or older), terminal illness or extreme financial hardship (risk of homelessnes due to eviction or foreclosure). All other claims are processed in turn.
My husband filed over 3 years ago and has a straight-forward presumptive case for agent orange benefits. I know these cases were held for a while during a lawsuit, but how far behind are they on processing these?