DI 52130.015 Military Disability Benefits
A Federal public disability benefit (PDB) includes a military disability benefit or a military retirement pension based on disability. It does not include benefits paid by the Department of Veterans Affairs under Title 38 U.S.C., which are specifically excluded from offset by law. Disabled military personnel may receive military disability benefits from the branch of service in which they served.
A. Military service (MS) before 1957
Anyone who served in the military before 1957 is over 65 years of age and not subject to offset.
B. Military service (MS) after 1956
Effective 01/01/1957, military service is covered service under section 210 of the Social Security Act. Do not offset the military disability benefit if the worker only has MS after 1956.
C. Verifying correct application of military PDB offset
Although cases involving MS PDB offset will be rare, it may be necessary to verify that offset was applied correctly. MS PDB caused offset of disability insurance benefits (DIB) only when more than 15 percent of the military service was in non-covered military employment.
1. Determining correct application of offset
To determine if offset was applied correctly, verify the period of MS involved by reviewing all of the available electronic records and, if necessary, the folder. If there is not enough evidence of MS to support the previous MS PDB determination, redevelop the proof. Follow the guidelines for obtaining evidence of MS in RS 01701.005.
2. Period of MS verified
When the period of military service is verified, follow the chart below:
If MS Involved Is:
All after 1956
All before 01/01/1957
Offset applies to the military disability benefit.
Caution: Consider administrative finality before imposing or re-imposing offset. See Administrative Finality and WC/PDB, GN 04030.080.
Before 1957 and after 1956
Follow the rules for covered service exception in DI 52130.001 to determine if the correct determination was made.
D. Failure to remove military disability offset
If offset was correctly applied but the offset was not removed when the individual reached age 65, remove offset retroactive to the month of attainment of age 65, before December 19, 2015.
NOTE: Effective December 19, 2015 or later, WC/PDB offset termination is extended from age 65 to full retirement age (FRA). See 2015 amendment in DI 52101.005.
DI 52101.005 Social Security Amendments with Workers’ Compensation/Public Disability Benefits (WC/PDB) Offset Provisions