Confused by Military Retired Pay reduction if VA compensation is awarded

[JCGallawa]

My 91 year old wartime vet father receives a monthly annuity, which is a combination of his Navy retirement and civil service retirement (he receives no disability compensation). Under Part V (Military Retired/Severance Pay) on the 21-526 application form, it says "If you are awarded military retired pay prior to compensation, we will reduce your retired pay by the amount of any compensation that you are awarded." This doesn't make sense to me. If receiving the VA A & A benefit results in a reduction in his existing Navy retirement pay, why bother apply at all? It would seem that one would just cancel out the other, or am I hopefully just misunderstanding this part? Can someone please clear this up for me? How should we fill out this section of the application?

[JCGallawa]

I may have figured out the answer to my question. We are applying for pension benefits not compensation benefits. Part V (MILITARY RETIRED/SEVERANCE PAY) of the 21-526 for seems to have to do with only compensation benefits and not pension benefits. I would greatly appreciate it if someone could verify that this is correct. And, if so, should I check Box 25 that says "NO, I DO NOT WANT VA COMPENSATION IN LIEU OF MILITARY RETIRED PAY"? Or, does this section simply not apply at all since we are seeking pension benefits rather than compensation benefits?

Our sincere thanks to this excellent forum and for all the help, advice and experiences provided by all.

[vetadmin]

You are correct in your assumption.  You are not filing for compensation.  You are filing for Pension.  On the section you question, put N/A.