Military Update: Veterans’ disability panel rejects lump-sum option

Military Update: Veterans’ disability panel rejects lump-sum option

The Veterans’ Disability Benefits Commission has examined and rejected a proposal that the VA begin offering veterans with lower-rated disabilities a lump-sum payment instead of lifetime monthly compensation.

The 13-member commission reached its decision unanimously last week at a public meeting in Washington. It did so after being briefed on the pros and cons of lump-sum VA disability payments, and hearing arguments against the idea from veterans’ service organizations.

The commission, created by Congress in 2004, is conducting the first comprehensive review of veterans’ disability benefits in 50 years. Its recommendations are to be delivered to lawmakers next fall.

One idea the commission won’t embrace is lump-sum compensation, rather than monthly disability pay, for veterans rated 10 percent or 20 percent disabled by the Department of Veterans Affairs. Veterans with 10 percent and 20 percent ratings represent about three quarters of all disabled veterans.

Those with a 10 percent rating now receive $112 a month in disability compensation. Veterans rated 20 percent disabled get $218. The payments are adjusted annually to keep pace with inflation.

Under a lump-sum option, a 25-year-old veteran, newly rated as 10 percent disabled, might be offered $11,000.

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