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Thursday, July 31, 2014

Enhanced Disability Severance Pay (EDSP)

OFF THE WIRE
Enhanced Disability Severance Pay (EDSP)
EDSP will be tax-free for combat wounded service members. EDSP is computed using the following mathematical formula:
2 x Monthly Basic Pay x Years of Active Service (not to exceed 19 years)
One of the advantages of EDSP is that 6 years will be the minimum number of years of active service used in the formula for those who qualify for the combat related provision and 3 years for all others despite their actual number of years in service. Additionally, those entitled to the combat related provision will NOT have the dollar amount of their EDSP deducted from their VA disability compensation. Please be reminded that these are estimates of payment and not guaranteed amounts.