Federal Benefits for Veterans and Dependents - CT.gov

Chapter 2 Veterans with Service-Connected Disabilities 19Chapter 2Service-Connected DisabilitiesDisability CompensationDisability compensation is a monetary benefit paid to veterans whoare disabled by an injury or illness that was incurred or aggravatedduring active military service. These disabilities are considered to beservice-connected. Disability compensation varies with the degreeof disability and the number of veteran’s dependents, and is paidmonthly. Veterans with certain severe disabilities may be eligible foradditional special monthly compensation. The benefits are not subjectto federal or state income tax.The payment of military retirement pay, disability severance pay andseparation incentive payments, known as SSB (Special SeparationBenefits) and VSI (Voluntary Separation Incentives) affects theamount of VA compensation paid to disabled veterans.To be eligible, the service of the veteran must have been terminatedthrough separation or discharge under conditions other than dishonorable.For additional details, visit the Web site at http://www.vba.va.gov/bln/21/.Receiving Disability Benefit PaymentsVA offers three disability benefit payment options. Most veteransreceive their payments by direct deposit to a bank, savings and loanor credit union account. In some areas, veterans who do not havea bank account can open a federally insured Electronic Transfer Account,which costs about $3 a month, provides a monthly statement,and allows for cash withdrawals. Other veterans may choose toreceive benefits by check. To choose or change a payment method,call toll-free 1-877-838-2778, Monday through Friday, 7:30 a.m. -4:50 p.m., CST.Presumptive Conditions for Disability CompensationAll veterans who develop Amyotrophic Lateral Sclerosis (ALS), alsoknown as Lou Gehrig’s Disease, at any time after separation fromservice may be eligible for compensation for that disability.Certain veterans are eligible for disability compensation based on the