Claim for Disability Retired Pay

GAO was asked to determine whether a correction of military records to reflect a service member's entitlement to disability retirement pay enables the member to receive retroactive pay or whether payment is barred on amounts that accrued more than 6 years prior to the date the claim was filed with GAO. The Army found that the claimant was permanently incapacitated. The cause of the incapacity originated while the member was an enlisted man. Under the administrative interpretation of the relevant law at that time, the claimant was not entitled to retired pay since his disability was considered incident to his enlisted service. He received an honorable discharge and was credited with active federal service for the time he was in the Army. Subsequently, the administrative interpretation of the applicable legislation was changed, and the claimant was then eligible for disability retired pay. The claimant was not aware of the change and did not file an application for correction of his military records. The Army concluded that the claimant was entitled to disability retirement benefits without the need for correction. However, GAO held that the claim to retired pay first accrued on the date the claimant became entitled to disability retired pay and not when the Army made its finding. Therefore, that portion of the claim for retired pay which accrued more than 6 years before the claim was received was barred.