One of the perks of choosing a career in the military is what comes after – retirement benefits. As a US Service member, you are eligible for pensions and medical benefits upon retirement, which will certainly come in handy in your post-military life. To retire from the military, you must have typically been in service for at least 20 years. However, there are certain instances where you can retire due to medical reasons. In this blog, we are going to look at some of the legal issues surrounding military retirement benefits.
1. Imprisonment
Being incarcerated could affect your VA benefits. If you are convicted of a crime and imprisoned for more than 60 days, your retirement benefits (including your pensions, disability compensation, and education benefits) may be stopped or reduced. The payments will typically be resumed upon your release.
However, this will depend on the type of crime you are charged with – whether it is a misdemeanor or a felony – and the type of benefit you were getting. In most cases, imprisonment will not have a major impact on your pension, unless of course your conviction involved criminal disloyalty to the US – for example, treason, espionage, sabotage, etc.
2. Divorce
Former spouses of service members may be eligible for certain benefits in the event of a divorce under the Uniformed Services Former Spouse Protection Act. These benefits may include a portion of the service member’s medical care and retirement pay. The ex-spouse can petition for direct payment of their share of the retirement pension from DFAS. The court may approve and grant a court order to enforce the petition on the grounds of:
- Alimony
- Child support
- Division of retirement pension as an asset if the couple was married for at least 10 years
Direct payments will stop in the event of:
- The retired service member’s death
- The former spouse’s death
- Complete fulfilment of the terms of the court order
Depending on how a Decree of Divorce and the accompanying Domestic Relations Order are drafted, a dependent of a servicemember may lose tens and even in some instances hundreds of thousands of dollars in accrued retirement benefits if not properly prepared. Hiring a firm with a depth of experience in this area can make all the difference to ensure benefits are not curtailed.
3. SGLI Beneficiary Disputes
Every service member is automatically awarded coverage referred to as Servicemembers’ Group Life Insurance (SGLI) when they join the military. This coverage also provides Traumatic Injury Protection (TSGLI), which offers financial assistance in the event of traumatic injuries during active duty, allowing the members to stay with their loved ones while recovering from their injuries. Payment from SGLI can be as much as $400,000, making it one of the most lucrative coverages in the military.
However, there are certain legal issues surrounding SGLI that have led to very expensive mistakes in the past. Usually, the coverage is paid out to the primary and secondary beneficiaries named in the policy upon the death of the service member – normally the spouse and children, respectively. In the event of a divorce, however, you may decide to choose another primary beneficiary for your SGLI (e.g. your parents, your children, or even a subsequent spouse). If you fail to change the name of the primary beneficiary before you die, the proceeds will go to your former spouse and there is very little that your survivors can do about it. Alternatively, Prudential Insurance Co. which services the SGLI policies may in some instances award the policy proceeds to heirs at law. The effect of which in some cases can be disheartening as the proceeds may go to individuals whom the servicemember would have never wanted to leave an interest to. Fortunately, in the event that an SGLI designation is not correct because it was not submitted or there were issues with the submitted form, in many cases our firm can assist with ensuring that the benefits are awarded to the intended beneficiaries.
It is always advisable to consult an attorney if you are unsure about the status of your military retirement benefits. As a general rule of thumb, be sure to regularly check and ascertain that your beneficiaries are clearly outlined. For any legal assistance, contact the Amsberry Law Firm now at (210) 354-2244.
Attorney Russell J.G. Amsberry
Attorney Russell J.G. Amsberry founded the Amsberry Law Firm in 1995 with the goal of providing clients with exceptional, focused representation on their issues. His success as a legal advocate has been reflected in the numerous professional honors he has received, such as speaking engagements and inclusion in Scene in SA magazine’s listing of the best lawyers in San Antonio, a Distinguished rating from Martindale-Hubble, and an amazing rating from Avvo. [ Attorney Bio ]
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Amsberry Law Firm
The Amsberry Law Firm, founded in 1995, has helped thousands of clients overcome their unique legal challenges.
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FAQs
Procedures of the Military Departments may suspend retired pays under authority of the head of the retired pay activity, if the retiree fails to take necessary administrative actions on time, or if the retiree declines further payments.
What are the conditions for military retirement? ›
Members who accumulate 20 or more years of active service are eligible for retirement. There are three non-disability retirement plans currently in effect for active duty retirees. These are Final Pay plan, High-36 Month Average plan, and Military Retirement Reform Act of 1986 (more commonly referred to as REDUX) plan.
WHO issues military retirement pay? ›
DFAS R&A Pay is primarily a payroll office. We establish and maintain military retired pay, annuity accounts, and issue monthly payments to both military retirees and their eligible survivors, including the following: Regular and Reserve Retirement payments. Temporary and Permanent Disability Retirement payments.
Can you lose your military pension if convicted of a felony after retirement? ›
Veterans in receipt of VA pension will have payments terminated effective the 61st day after imprisonment in a Federal, State, or local penal institution for conviction of a felony or misdemeanor. Payments may be resumed upon release from prison if the Veteran meets VA eligibility requirements.
Can a military pension be taken away? ›
Your pension will be terminated if you are incarcerated for more than two months for a conviction of a felony or misdemeanor. However, payments may resume after leaving prison if you meet the Veterans Affairs (VA) eligibility requirements.
Can military retirement pay be revoked? ›
Retired pay is a statutory right and, as such, cannot be waived except as authorized by law. These two laws authorize a member to waive entitlement to retired pay: 1. Title 38, United States Code (U.S.C.), section 5305 permits a member to receive compensation or pension from the Department of Veterans Affairs (VA).
Can you receive 100% VA disability and military retirement pay? ›
Concurrent Retirement and Disability Pay (CRDP) allows military retirees to receive both military retired pay and Veterans Affairs (VA) compensation. This was prohibited until the CRDP program began on January 1, 2004. CRDP is a "phase in" of benefits that gradually restores a retiree's VA disability offset.
Can the army kick you out after 18 years of service? ›
Except when discharged pursuant to the approved sentence of a court-martial or for physical disability, any Soldier who has completed 18 or more years of active federal service will not be involuntarily discharged or released from active duty without approval from HQDA.
What happens to military retirement? ›
Under the High-36 plan, someone who retires at 20 years will receive 50% of their base salary as a pension, but each additional year they stay in, they will receive a multiplier of 2.5% more toward their retirement. If they make it to 40 years, they'll receive their full base salary as a pension.
Is 20 years in the military worth it? ›
Service members are eligible for retirement after 20 or more years of active duty, and military retirement offers incredible benefits like a pension, health and life insurance, GI bill benefits, and more. Consider whether the transition to civilian life will be able to replicate those benefits for you.
Last active duty paychecks are often held for review of financial accounts, and sometimes the wait can be long. While most people get their pay within the month following retirement, significant delays are not uncommon.
What is the best state for military retirement? ›
Florida topped the ranking for best places to live for retired military families, followed by South Carolina and Virginia, driven by factors such as healthcare, favorable tax policies and a strong job market.
What can cause you to lose your VA benefits? ›
Only in cases where fraud can be proven or a serious mistake was made can your benefits be considered for termination. If you have not been receiving VA disability for ten or more years and VA determines that your injury or illness is not service-connected, your benefits may be threatened.
Is VA disability going away in 2024? ›
Under that phaseout, veterans whose gross household income was $170,000 or higher in calendar year 2023 and who would have received the average annual payment would no longer receive any disability compensation from VA in calendar year 2024.
Can the VA take away 100% permanent and total disability? ›
Disabilities can change over time and and the VA does actually have the power to reduce a disability rating for a variety of reasons. If you have a 100 percent Permanent and Total (P&T) rating, it is very unlikely you will be re-evaluated or have your rating reduced.
What can cause you to lose military benefits? ›
Only in cases where fraud can be proven or a serious mistake was made can your benefits be considered for termination. If you have not been receiving VA disability for ten or more years and VA determines that your injury or illness is not service-connected, your benefits may be threatened.
Does military retirement last forever? ›
Defined Benefit: Monthly retired pay for life after at least 20 years of service (so if you retire at 20 years of service, you will get 40% of your highest 36 months of base pay).
How long do military retirees live after retirement? ›
The largest birth cohort was born in the 1920s, and 87.9 % of the RMPs were born between 1910 and 1949. The majority of deaths (84.6 %) occurred between 1990 and 2012. The mean age at retirement was 46.48 ± 6.63 years (median 45.31), and the mean age at death was 69.40 ± 12.55 years (median 69.85).
Can a retired federal employee lose their pension? ›
How can federal employees lose their retirement benefits if fired? The exceptions to the safety of federal employees' retirement benefits involve criminal activity. Under 5 U.S.C. § 8312, you can lose your retirement benefits if you are convicted of a federal crime against the country's national security.
