Military Officer - August 2007 - (Page 36)

washingtonscene Older, Disabled Vets Paid Too Much? Study cites income differentials. question, which is, “What should be the purpose of VA disability compensation?” The bottom line is that replacing lost earnings is a major element in that equation, but it’s not the only one. A perennial source of contention is the extent to which VA compensation also should recognize decreased quality of life (pain, suffering, loss of body function, etcetera). The CNA analysts said they found little evidence that that factor has played a major role in establishing VA disability payment rates. MOAA asserts that it certainly should and that this is a signiﬁcant factor for servicemembers who become severely disabled at later ages. MOAA agrees there is a need to ﬁnd ways to more fairly compensate severely disabled younger veterans who suffer signiﬁcantly greater losses in lifetime earnings. But that shouldn’t be done by “robbing Peter to pay Paul” through a process that inadequately recognizes disadvantages imposed on older disabled servicemembers — and MOAA doesn’t think Congress would support that approach. A Center for Naval Analysis (CNA) study sparked some controversy at a June 8 meeting of the Veterans’ Disability Beneﬁts Commission when CNA analysts told the commission VA disability compensation amounts are too low for younger severely disabled veterans but might be too high for those disabled later in life. To put these comments in perspective, the CNA study looked at how well VA disability beneﬁts succeeded in replacing lost earnings for disabled veterans compared to non-disabled veterans. The analysis highlighted that those who become severely disabled at younger ages face an additional ﬁnancial penalty because their earning careers are cut short, whereas those afﬂicted by severe disabilities later in life have had an opportunity to accumulate larger savings from military and post-service earnings. That means the earnings disparity with nondisabled veterans is less for older people than younger people. If you look at the overall average, according to the CNA, VA disability payments just about make up the earnings differential. But when you break it out by age, there are signiﬁcant differences. Although there was general acknowledgment among the commissioners of the particular inequity faced by younger disabled servicemembers, they reacted sharply to the idea that those whose disabilities worsen at later ages are overpaid. MOAA shares that concern, but the discussion at least helps focus on the real Retirees Will Die in Debt And DFAS will come after their survivors. Y ou know that spending a career in the military entails being monitored by the accountants until the day you die. But you probably never realized how literally that statement applies. Retired servicemembers should understand that one job of the auditors at the Defense Finance and Accounting Service (DFAS) is to make sure your retired paycheck terminates precisely when you do. And that can mean some unpleasant news for your survivor — especially if you’re [CONTINUES ON PAGE 38] 36 MILITARY OFFICER AUGUST 2007

Table of Contents Feed for the Digital Edition of Military Officer - August 2007

Military Officer - August 2007 Contents From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Cover Story: No Longer in Reserve A Different Path Weird Science Charge? Pages of History Faces of MOAA Member Books Information Exchange Advertising Index MOAA Calendar MOAA Scholarship Donors Sounding Taps MOAA Member Services Encore

Military Officer - August 2007

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