Veterans’ Benefits: The Impact of Military Discharges on Basic Eligibility

Summary

The Department of Veterans Affairs (VA) offers a broad range of benefits to veterans of the U.S. Armed Forces and to certain members of their families; however, a claimant must meet the basic eligibility criteria. A benefit claimant must prove that he or she meets the statutory definition of a “veteran,” which includes (1) service in the active military (i.e., Army, Navy, Air Force, Marine Corps, Coast Guard) or commissioned officers of the Public Health Service (PHS), and National Oceanic and Atmospheric Administration (NOAA); (2) minimum length of service requirements; and (3) discharge or separation from military service under conditions “other than dishonorable.”

This report focuses on the discharge or separation requirement for veteran status or, more specifically, how the VA determines that a former servicemember’s military service can be characterized as under conditions other than dishonorable. The conditions surrounding a servicemember’s discharge from the military can have important implications for his or her ability to subsequently claim entitlement to a host of benefits provided through the VA. The VA may deny benefits to former servicemembers whose military separation is characterized as “other than honorable” (OTH) or if they have received a punitive discharge adjudicated by a court-martial. In addition, certain types of misconduct could create a legal bar to receiving veterans’ benefits.

The VA generally accepts discharges that are characterized as “honorable” or “general” (under honorable conditions) for purposes of veterans’ benefits. Such discharges generally do not disqualify a veteran for a wide range of VA benefits, including disability compensation and pension, health care services, educational assistance, vocational rehabilitation and employment services, home loan guaranty, and memorial and burial services. However, for purposes of the Montgomery GI Bill and the Post-9/11 GI Bill, a veteran must have received an honorable discharge. Furthermore, with certain exceptions, VA health care will be furnished for any disability incurred in or aggravated during a period of service terminated by a discharge under OTH conditions.

However, an adverse discharge may preclude a former servicemember from receiving one or more VA benefits based on a complex set of statutory and regulatory restrictions. In these instances, the VA must develop the character of service, through an assessment of facts and other evidence related to a claimant’s time in the military, to determine whether his or her military service meets the general statutory and regulatory criteria for entitlement to veterans’ benefits.

This report primarily focuses on the VA adjudication process for claimants who—as a result of an adverse discharge—are entitled to a character of service determination resulting in either a favorable finding of “other than dishonorable” service or an unfavorable finding of “dishonorable” service for the purposes of VA benefits. This report does not address Department of Defense (DOD) policy on military discharge procedures aside from descriptions of how military discharges impact the potential receipt of veterans’ benefits. Although a former servicemember may also exercise the right to seek redress through the Discharge Review Board (DRB) or the Board for Correction for Military/Naval Records (BCM/NV) of his or her military department, the VA has no involvement in DOD administrative remedies and therefore a discussion of DOD-related discharge issues is outside the scope of this report. Situations where policy or program overlap occurs between the VA and DOD are addressed where appropriate.