Federal Benefits for Veterans, Dependents and Survivors
Chapter 2 Service-Connected Disabilities
Disability Compensation: Disability compensation is a monetary benefit paid to veterans who are disabled by an injury or illness that was incurred or aggravated during active military service. These disabilities are considered to be service-connected. Disability compensation varies with the degree of disability and the number of a veteran’s dependents, and is paid monthly. Veterans with certain severe disabilities may be eligible for additional special monthly compensation. The benefits are not subject to federal or state income tax.

The payment of military retirement pay, disability severance pay and separation incentive payments, known as SSB (Special Separation Benefits) and VSI (Voluntary Separation Incentives) affects the amount of VA compensation paid to disabled veterans. To be eligible, the service of the veteran must have been terminated through separation or discharge under conditions other than dishonorable. For additional details, visit the Web site at www.vba.va.gov/bln/21/.

Receiving Disability Benefit Payments: VA offers three disability benefit payment options. Most veterans receive their payments by direct deposit to a bank, savings and loan or credit union account. In some areas, veterans who do not have a bank account can open a federally insured Electronic Transfer Account, which costs about $3 a month, provides a monthly statement, and allows for cash withdrawals. Other veterans may choose to receive benefits by check. To choose or change a payment method, call toll-free 1-877-838-2778, Monday through Friday, 7:30 a.m. - 4:50 p.m., CST.

Presumptive Conditions for Disability Compensation: All veterans who develop Amyotrophic Lateral Sclerosis (ALS), also known as Lou Gehrig’s Disease, at any time after separation from service may be eligible for compensation for that disability.

Certain veterans are eligible for disability compensation based on the presumption that their disability is service-connected