What You Need to Know About Veterans Disability Settlement The VA program compensates for disability on the basis of loss of earning capacity. This system is different from the workers' compensation programs. Jim received a lump sum settlement of $100,000. The VA will annually increase the lump sum over a period of one year. This will reduce his Pension benefit. He will not be able to reapply for his Pension benefit after the annualized amount is returned to him. Compensation Veterans and their families could be eligible for compensation from the government for injuries they sustained while serving in the military. These benefits can be in the form of a pension or disability payment. There are a few key things to keep in mind when considering a personal injury lawsuit or settlement for disabled veterans. If a veteran with disabilities receives a settlement or a jury award against the person who is at fault for their injuries, and also has an VA disability claim and the amount of the settlement or award may be garnished off the VA payments. This kind of garnishment comes with certain restrictions. First the court must have filed a petition seeking apportionment of the disability pay. Then, only a portion of the monthly pay can be garnished, usually between 20-50%. Another thing to keep in mind is that the compensation is dependent on a percentage of the veteran's disability and not on actual earnings earned from an employment. The higher the veteran's disability rating the more compensation they will receive. Surviving spouses and children of a disabled veteran who passed away of service connected illness or injuries are eligible for a special benefit called Dependency Indemnity Compensation (DIC). There are many myths about the impact that benefits from veterans' retirement, disability pay and other compensations from the Department of Veterans Affairs have on divorce money issues. These misconceptions can make a divorce even more difficult for veterans and their family members. Pension Veterans Disability Pension is a tax-free monetary benefit that is paid to veterans with disabilities that have been incurred or aggravated during military service. It is also available to the surviving spouses and dependent children. The pension rate is set by Congress and based on the amount of disability, the extent of disability, as well as if there are dependents. The VA has specific regulations regarding how assets are calculated to determine eligibility for the pension benefit. The VA will not take into consideration the veteran's home, vehicle and personal possessions. However the remaining assets that are not exempted by the veteran must be less than $80.000 to prove financial need. There is a common misconception that courts can garnish VA disability payments in order to fulfill court-ordered child and support obligations for spouses. It is important to note that this isn't the case. The courts are only able to garnish the pension of a veteran when they have waived their military retirement pay to be compensated for disability. 38 U.S.C. The SS5301 (a) is the statute that governs this. This does not apply to CRSC and TDSC These programs were specifically designed to provide a greater amount of income to disabled veterans. It is important to note that a veteran's personal injury settlement can affect their eligibility for aid and attendance. SSI Veterans with an irreparable disability and who have no income may be eligible for Supplemental Security Intake (SSI). This is a need-based program. A person must have low income and assets to be eligible for SSI. Some people are also eligible for a monthly pension benefit from the VA. The amount is contingent on their service and wartime period, as well as a disability rating. The majority of veterans are not eligible to receive both Compensation and Pension benefits simultaneously. If someone receives a disability payment and a pension from the VA, it will not provide a Supplemental Security income benefit. The VA is required to send your monthly report of military retirement, CRDP or CRSC to the Social Security Administration (SSA). This will almost always result in an increase in your SSI benefit. The SSA can also determine your SSI income using VA waiver benefits. If a judge requires the veteran to pay support ordered by the court, the court can go directly to the VA and have the military retirement garnished to pay for this reason. This can occur in divorce proceedings when the retiree waives his military retired pay for VA disability payments. The U.S. Supreme Court ruled recently in the case Howell that such a practice violated federal laws. Medicaid A veteran with a disability that is related to service could be eligible for Medicare and Medicaid benefits. He must prove that he fulfilled the five-year lookback period. He must also provide documents to prove his citizenship. He cannot transfer assets without the fair market value, but he can still keep his primary residence and a vehicle. You can also keep up to $1,500 cash or the face value of the life insurance policy. In divorce the judge could decide that the veteran's VA disability payments can be considered income for the purposes of formulating post-divorce child care and maintenance. This is due to numerous court rulings that have confirmed the right of family courts to utilize these payments as income in support calculations. These include rulings from Florida, Mississippi (Steiner v. Steiner), Wisconsin (In the case of the marriage of Wojcik) and other states. The VA disability compensation is based on the severity of the condition. It is based on an algorithm that ranks the severity of the condition. It can be between 10 percent to 100 percent. Higher ratings will yield more money. It is also possible for a veteran to receive additional compensation for attendance and aid expenses, or a special monthly compensation, which is not based on a calendar but upon the degree of the disability.