In order to further improve the lines of communication and to respond to the concerns between the National VA Council and you our members, I have established a National VA Council Briefing. This NVAC Briefing will bring you the latest news and developments within DVA and provide you with the current status of issues this Council is currently addressing. I believe that this NVAC Briefing will greatly enhance the way in which we communicate and the way in which we share new information, keeping you better informed. Alma L. Lee National VA Council, President

In This Briefing: Physician Pay and Retirement Update

1. From now thru 1/7/2006, special pay continues to be administered under the same rules as have been in place since July 1991. That is, in order to have special pay included in annuity computations, physicians and dentists must complete at least 15 years of service as VHA physicians or dentists. Individuals who have not completed these 15 years of service will have -0- special pay included in their high-3 computation, except in cases of death or disability requirement.

2. For individuals who have had breaks in service and have not been continuously employed with VA, there is a second requirement for 8 full years of service since July 1991. If physicians and dentists have less than 8 years of post-1991 service, the amount of special pay is prorated in 25% increments for every 2 years of service.

3. For dentists, there is a separate phase-in requirement. The law in November 2000 increased many components of special pay. The increased amounts of tenure pay are not immediately vested in annuity computations -- the difference between the old and higher amounts of tenure pay are included in annuity computations in 25% increments for every 2 years of service post-2000.

As we understand it, these requirements go away effective 1/8/06. Retirements on or after that date will have special pay fully vested for annuity computations, regardless of years of service or when that service took place. I hope this is helpful to you.