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.