Notice of Waiver of VA Compensation or Pension to Receive Military Pay and Allowances
You receive VA disability compensation and also participate in Reserve or National Guard drill and receive drill pay. VA will reduce your compensation for periods where you receive military pay unless you make a waiver election.
Gather before you start
Section I - Veteran Identification
Blocks 1-5Name, SSN, VA File Number, addressPII
Your identifying information. Include VA File Number so this waiver attaches to your compensation file.
(legal name, SSN, VA file number)
- Not filing until after receiving drill pay - VA may retroactively reduce compensation for periods where you received both.
Section II - Reserve/Guard Service
Blocks 6-10Reserve/Guard unit, drill schedule, and expected pay
Your Reserve or National Guard unit, scheduled drill periods (including annual training), and estimated drill pay for the year. Include any active-duty orders for training (ADT, ADOS, ADSW) that generate additional military pay.
e.g., 100th Training Division, Fort Knox KY; 48 drill days/year ($3,600 estimated drill pay); Annual Training 06/2026 ($800 estimated).
- Not including annual training periods - these often generate significant military pay that must be addressed.
- Not knowing that ADOS/ADSW orders for extended periods generate higher military pay that may be worth keeping over VA comp - calculate both before deciding.
Section III - Waiver Election
Block 11Which benefit do you elect to waive?
You must choose: (A) WAIVE DRILL/MILITARY PAY - keep full VA compensation, OR (B) WAIVE VA COMPENSATION - receive military pay instead. In most cases, VA compensation is higher and tax-free, making it more advantageous to keep VA comp and waive the drill pay. Calculate both before electing. If you elect to waive VA compensation, your monthly VA payment stops for the period covered.
e.g., I elect to WAIVE military drill pay and retain my full VA disability compensation for all drill periods.
- Waiving VA compensation without calculating the difference - VA compensation is tax-free; drill pay is taxable. Net benefit usually favors VA comp.
- Not knowing you can change your election - you can file a new 21-8951 each year; you are not locked in permanently.
Section IV - Certification
Blocks 12-13Veteran signature and datePII
Sign and date. File with your Regional Office.
(signature/date)
- Not filing before the drill year begins - retroactive waivers are more complicated.