A veteran recently posted on a forum, sharing what they call a “loophole” in VA benefits. This post has sparked attention among veterans because it reveals a little-known benefit that could give back months of GI Bill time to those who have used it. The post revolves around something called “Retroactive Induction” within the Veteran Readiness and Employment (VR&E) program, formerly known as Vocational Rehabilitation and Employment.
Here is a breakdown of what this is all about and how it might help veterans get more out of their benefits.
What is retroactive induction and how does it work?
Retroactive Induction forms a section of the VR&E program which enables veterans to reclaim back the months they used from their GI bill provided that they were eligible for VR&E while using their GI bill. The logic behind this is that, if a veteran was qualified for VR&E but opted to use the Post -9/11 G. I. Bill instead, he/she can be compensated for those months spent on schooling.
In other words, veterans whose education expenses were covered by the GI Bill while they were in fact eligible for participation in the VR&E program, can expect to be reimbursed for the entire duration of those months spent pursuing the educational programs.
How does it work?
- If you were entitled to VR&E at the same time you used your GI Bill, the VA may “retroactively” move you over to VR&E.
- They will refund the months you used from your GI Bill.
- In some cases, they may also give you extra money if the housing allowance you received through the GI Bill was lower than what you would have received under VR&E.
Who qualifies for VR&E and retroactive induction?
Not every veteran will qualify for VR&E or Retroactive Induction, but here are some basic qualifications:
- VA disability rating: You need to have a service-connected disability rating of 10% or higher.
- Discharge status: Your discharge must be other than dishonorable.
- Employment handicap: VR&E also determines if you have an “Employment Handicap.” This means that your disability makes it harder for you to get or keep a job that matches your skills or education.
If you meet these criteria and are eligible for VR&E while using your GI Bill, you might be able to take advantage of Retroactive Induction.
Can I get my GI Bill benefits back?
Yes, it is possible. If you were entitled to VR&E and used your GI Bill instead, Retroactive Induction may refund all the months of GI Bill you used. Here is a step-by-step outline of how that works:
- Determine eligibility for VR&E: You need to be eligible for VR&E before you use your GI Bill.
- Apply for Retroactive Induction: Talk to a VR&E counselor who will review your case and determine if you qualify.
- Get reimbursed: If you are approved, the VA will refund your GI Bill months.
Will I get the money from my housing allowance back?
One of the things veterans are curious about is whether they can get back the housing allowance they received under the GI Bill. The answer is no. You will not have to pay back the housing allowance you already received, but there is an exception. If the housing allowance under VR&E was higher than what you received from the GI Bill, the VA might send you the difference.
What other benefits does VR&E offer to veterans?
VR&E offers several benefits to veterans who qualify, especially if you are 100% Permanent and Total (P&T) disabled. These benefits include:
- CHAMPVA health care: Veterans who are 100% P&T can get CHAMPVA, which is similar to Tricare, for their dependents.
- Chapter 35 benefits: Dependents of 100% P&T veterans can also receive Chapter 35 benefits, which provides financial help for education and training.
- Free state college tuition: Some states offer free college tuition to dependents of disabled veterans. Not all states provide this benefit, but it is worth looking into.
- Property tax reductions: Many states offer disabled veterans a reduction or complete exemption from property taxes.
How can I find out if I am eligible for VR&E?
The best way to find out if you are eligible is to speak with a VR&E counselor. You can also check your rating and benefits through the VA’s website. If you are unsure about your rating, you can consult the VA Schedule for Rating Disabilities (VASRD) which lists the conditions and percentages the VA uses to rate disabilities.
How long does the process take?
According to veterans who have gone through the process, it can take a couple of weeks to get approval for Retroactive Induction. Once approved, the VA usually sends the reimbursement within a few days.
If you are a veteran who has used your Post-9/11 GI Bill, you may have access to more benefits than you realize. Retroactive Induction through VR&E is one of those lesser-known opportunities. By taking advantage of this benefit, you could reclaim your GI Bill time and potentially receive extra money to cover the difference in housing allowance.
If you believe you may qualify, reach out to a VR&E counselor to explore your options.
