VA Form 21-8951
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.
- Who fills it
- reservist
- Journey phase
- Keeping Your Award Current
- Estimated time
- 20-30 minutes.
- When to file
- Annually or whenever drill/training pay is received. File before the beginning of the year for which drill pay applies.
Official VA form page: https://www.va.gov/find-forms/about-form-21-8951/
Gather before you start
- ▸VA File Number and current compensation rate
- ▸Reserve/Guard unit and drill schedule
- ▸Expected annual drill pay amount
- ▸Decision on which to waive (typically waive drill pay to keep VA comp)
Attach with the form
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)
Common mistakes
- ×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).
Common mistakes
- ×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.
Authority
- 38 CFR 3.700 - Election between VA compensation and military drill/training pay.
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.
Common mistakes
- ×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.
Authority
- 38 CFR 3.700 - Election between VA compensation and military drill/training pay.
- 38 USC 5304 - VA compensation and military drill/training pay for the same period cannot both be received; one must be waived.
Section IV - Certification
Blocks 12-13Veteran signature and datePII
Sign and date. File with your Regional Office.
(signature/date)
Common mistakes
- ×Not filing before the drill year begins - retroactive waivers are more complicated.
Statutory and regulatory authority
- 38 CFR 3.700 - Election between VA compensation and military drill/training pay.
- 38 USC 5304 - VA compensation and military drill/training pay for the same period cannot both be received; one must be waived.