Retired Pay Tax Waiver

Eligible retired personnel may elect to waive all or part of their retired pay to receive VA compensation or pension or to credit active military service under the Civil Service Retirement Act. A member electing to receive disability compensation or pension from the VA may subsequently re-elect to receive military retired pay. However, if retired military pay is waived to establish eligibility for civilian retirement, payment of military retirement pay thereafter is prohibited.

Waiving military retired pay does not divest the retiree, his or her eligible family members, or survivors of privileges to which they are otherwise entitled. Continued use of ID and privilege cards is authorized.