Re: PFL - Formula?

by Guest Wed 17 Oct 2018, 17:02

bigrex wrote:It is quite complicated, especially if you have received multiple disability awards, under the NVC, spread out over the last 13 years. But basically, what they will do, is calculate how much PFL pensions you would have received, if the NVC had used them instead, of the Lump sum. From that amount, they will subtract the money received as lump sums, to determine how much money you will need to pay back over your lifetime.

Example

IF a Veteran received 100% LSA of $250000 in Apr 2006, at the age of 25, plus $40000 from the top up. Their past PFL will be $1150 x 156 months = $179400. 290000 - 179400 = 110600. So with the current age of 38, the balance owing would be divided up, over however many months until they reach age 84( $110600/ 552 months = 200.36). Then that would be deducted from their future PFL payments. ($1150 - $200 = $950/month).

So the Veteran would either get $950 per month, plus COLA, for life, or possibly take a lump sum payment of $524400 ($950 x 552 months). I haven't seen anything that verifies the ability to take a one time payment of PFL, or what the calculations would be, so take that aspect with a grain of salt.

so from this ,is ot possible for a vet to have been so old already or received so much money that his new monthly payment would be 0? I mean if someone is 30 theres another 50 til 80, but if hes already 60 it's only 20. So if they are adding and subtracting based on life expectancy ,could a vet end up in the hole?

by Newfie Wed 17 Oct 2018, 16:38

Does this fall under pain and suffering compensation that the PFL is introducing in 2019?I saw under that fact sheet that there are 2 payment delivery options with and lump sum is listed there.

by Newfie Wed 17 Oct 2018, 16:30

Thank you bigrex

by **bigrex** Wed 17 Oct 2018, 16:23

It is quite complicated, especially if you have received multiple disability awards, under the NVC, spread out over the last 13 years. But basically, what they will do, is calculate how much PFL pensions you would have received, if the NVC had used them instead, of the Lump sum. From that amount, they will subtract the money received as lump sums, to determine how much money you will need to pay back over your lifetime.

Example

IF a Veteran received 100% LSA of $250000 in Apr 2006, at the age of 25, plus $40000 from the top up. Their past PFL will be $1150 x 156 months = $179400. 290000 - 179400 = 110600. So with the current age of 38, the balance owing would be divided up, over however many months until they reach age 84( $110600/ 552 months = 200.36). Then that would be deducted from their future PFL payments. ($1150 - $200 = $950/month).

So the Veteran would either get $950 per month, plus COLA, for life, or possibly take a lump sum payment of $524400 ($950 x 552 months). I haven't seen anything that verifies the ability to take a one time payment of PFL, or what the calculations would be, so take that aspect with a grain of salt.

by Newfie Wed 17 Oct 2018, 14:04

Awhile ago someone posted on here a formula used to determine if or any money we would receive with new PFL. Easiest way I can explain is you used your DA award years and $1150 and months to determine monthly award or take as lump sum. Sorry I cant remember much more that. Must be all that legal marijuana here on the Rock Thanks

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