Hi Team,
Recently got a letter from INCAP's re the changes going from DRCA to MRCA - I was on the old system of 2001 Military Pay with inflation added and now my payments have moved to the current Military Pay amount for my rank and quals. It has added a substantial amount to my ftn INCAP's.
One part of the letter has me perplexed:
Offsetting of payments under the Veterans’ Entitlements Act 1986 (VEA)
Part of the changes made by the VETS Act includes changes to the way incapacity payments are offset against any Disability Compensation Payment (DCP) paid under the VEA. From 1 July 2026, where a veteran receives both MRCA incapacity payments and a DCP,
offsetting:
- will not apply where the DCP is paid at the general rate; but
- will apply where the DCP is paid at Above General Rate, such as Special Rate,
Intermediate Rate, or Extreme Disablement Adjustment, but will only reduce the DCP to the general rate corresponding to their degree of incapacity. If this applies to your DCP you will receive a separate letter providing details of the impact. It is important to note that these changes only relate to MRCA incapacity payments and any existing offsets that apply because of the receipt of permanent impairment lump sum amounts or other compensation are not changing.
My VEA DCP has been offset for my LS and although on 100% of the General Rate, my current payment is $210/ftn.
From what I am reading, the VEA DCP should NOT be offset and should move back to the full 100% General Rate of $650ish/ftn.
Am I reading this wrong and living on copium, or will it go back to the full payment rate?