The Retirement Pay Offset: Current Law vs. Star Act

Example: E-7, 15 years of service, 70% VA disability rating

Current Law

Offset reduces retirement pay

DoD Retirement Pay $1,912/mo
$1,912
VA Disability (70%) $1,808/mo
$1,808
VA Offset (waiver) -$1,808/mo
-$1,808
Total Monthly Pay $1,912/mo

Under Star Act

Offset eliminated — receive both

DoD Retirement Pay $1,912/mo
$1,912
VA Disability (70%) $1,808/mo
$1,808
VA Offset $0
Total Monthly Pay $3,720/mo
Potential Monthly Increase
+$1,808/mo
That's $21,696 more per year
DoD Retirement Pay
VA Disability (tax-free)
Offset (money lost)

Based on 2026 rates. E-7 High-36 average ~$5,100/mo × 37.5% = $1,912/mo. VA 70% rate = $1,808.45/mo (no dependents).