Getting VA Disability Compensation as a Drilling Reservist: Your Responsibilities

You are a drilling reservist who has a VA compensation package in the system. You’re waiting for the VA to give you a decision. While you wait, some questions come to your mind. Will I get to more than 30%? How much more than 30% will I get? Once I receive my compensation or pension, do I have to give up my reservation salary? Or do I tell the VA that I can stay without VA compensation for the days that I am paid for by reservations?

Finally, you receive your VA packet in the mail. The VA’s decision has come. You are receiving monthly compensation. You are now one of the reservists receiving VA disability compensation and reserve pay.

But, if you do nothing else, you’ll get your full VA compensation and reserve check. The longer you wait for the VA to find out about your reservation payment, the more money you will have to pay back to the VA in the future.

You have to submit your intentions to the VA at the end of each fiscal year.

At the end of each fiscal year, you will complete a VA Form 21-8951-2. This is the “Notice of Exemption from VA Compensation or Pension to Receive Military Allowances and Payments” form. This form is a declaration form, stating what pay you will lose for the days you received training pay.

You can get this form from the VA or you can search for it online and download it. Once you have the form, fill it out completely.

It will ask for the address of your VA regional office. This is the address to which you will send your form. Write the address of your VA regional office in the “VA Regional Office” box.

It will then ask for the veteran’s name and address. Write his name and address in this box.

The form will ask for the following: VA file number, social security number, daytime phone number, and evening phone number. You’ll find your VA file number on the package VA sends you announcing your compensation or disability rate.

Below you will see a box for the fiscal year and another box for training days. A fiscal year runs from October 1 to September 30. Indicate the fiscal year in which you completed your training days in the fiscal year box. Under the training days, write the number of days that the reserve pays for you.

How do you know what days you were paid for?

Many reserve units list numbers, in their training schedules, right next to each scheduled weekend drill (assembly of battle). Many reserve units list “4” right next to a two-day training weekend. A three-day training weekend will have a “6” next to it. These units typically pay you for two days of training in one day.

Let’s say you get paid for two days of training for each day of drill you complete. Check with your unit and find out how many days of training you get paid for each day of the drill to get an exact number.

Their drill days are also known as IDT or Inactive Duty Training periods. You also have periods of active duty; You are paid one day of training for each day of active duty you perform. In the reserves, you have Active Training (AT), Active Duty for Training (ADT), and mobilization days.

Add up your IDT points (2 per day of training) and your AT points (1 per day of training), which you made during the fiscal year. Enter the total number of training days in the “training days” box.

Next, you will let the VA know which of your countries you are exempting.

The first option allows you to waive your VA benefits for the days you received training pay. The second option allows you to waive your military pay and assignments for the days you received training pay. The third option allows you to report to the VA if you did not receive any military training during the last tax year.

This is how each option works.

Let’s say you give up your VA benefits for the days you received training. Remember, each day of IDT counts as two days of training. If all you did, during the month, was 2 IDT days, then VA will recover a prorated amount from VA for that month.

Simply divide your monthly VA compensation rate by 30 days, then multiply it by the number of days you were paid for training. Depending on your rank and the amount of your disability compensation, your prorated amount may be less than your training pay.

In most cases, giving up your VA benefits for the days you received training pay results in more of your money being kept after deductions are taken.

Now, let’s say you choose to forgo your military pay and assignments for the days you received training pay. This amount is usually more, per day, than a prorated amount of VA payment. After you take all the deductions to get that money back, you’ll end up with less money.

So, do the math and compare what your daily prorated VA compensation is to the training pay you receive. In most cases, you will keep more of your money if you choose to forgo your VA benefits for the days you received paid training.

The third option is for those in the Individual Ready Reserves (IRR), Standby Reserves drilling for withdrawal points, or other reservists drilling for withdrawal points only. Simply tell the VA that you were not paid that tax year. This is the easiest option, as it does not require you to recover the payment for that tax year.

After completing that section, sign and date the form in the appropriate sections. Go to the bottom of the form and fill in the name and mailing address of your unit. Write/type in the phone number section of the unit. You must have access to your online records, which must list the number of training days you have. Print this to help your unit manager.

Take this form to your unit and have it verified and signed by the unit manager. After you sign it, make copies and mail a completed form to your regional office. This is something you will have to do, after each fiscal year, each year that you receive VA compensation while on the reserves.

Here are a couple of helpful tips.

Contact your regional VA office and ask if they will take this form sooner, even though you don’t have your decision yet. If they say yes, submit your form at the end of each fiscal year. Coordinate with them when you do this. This way, what you owe can be deducted from your down payment in the event you get a favorable decision.

Contact your VA regional office, or your reserve unit manager, for questions and details regarding this article. The procedures in the form you use take precedence over this article if there is a difference in information.