What happens to a Veteran's retired military pay if they receive VA compensation?

When a Veteran receives VA compensation, their retired military pay can be affected by the offset rules that apply. Specifically, if a Veteran is eligible for both retired pay and VA compensation, the law mandates that the retired pay is reduced by the amount of the awarded VA compensation. This is done to prevent the dual receipt of benefits for the same service, as both forms of payment are intended to compensate for different aspects of military service.

The offset exists to ensure that Veterans do not receive an undue financial advantage by combining these two compensation sources. Therefore, the correct answer reflects the adjustment made to the retired military pay in light of the VA compensation awarded. This mechanism is part of the regulations governing military retirement and VA benefits and helps to maintain the integrity of financial support systems for veterans.