Denial of Benefits and Delayed Justice for Federal Personnel and Military Service Members

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Federal and Military Employees Face Challenges to Retirement Benefits and Constitutional Rights Amid Policy Shifts

In August 2025, the U.S. Air Force rescinded previously approved Temporary Early Retirement Authority (TERA) benefits for service members with 15 to 18 years of service. While this action has largely affected transgender personnel, it signals broader administrative discretion that could impact retirement and benefits decisions for a wider group of federal and military employees.

Executive Order 14183, signed in January 2025, reinstated restrictions on transgender military service, citing unit cohesion and readiness concerns. The Supreme Court allowed enforcement of this order in May 2025, and the Department of Defense has since issued guidance to proceed with separations. These shifts, coupled with administrative backlogs caused by the government shutdown, have created uncertainty for many service members who rely on timely processing of retirement and benefits applications.

Constitutional and Legal Implications

The rescission of benefits raises serious constitutional concerns. Under the Equal Protection Clause, policies that discriminate based on characteristics such as gender identity or sexual orientation must meet strict scrutiny. Additionally, abrupt denial of earned benefits implicates the Due Process Clause, as service members and federal employees may be deprived of property without meaningful opportunity for review.

Legal challenges are ongoing, including lawsuits such as Talbott v. USA, where advocacy organizations are contesting the constitutionality of the transgender service restrictions. These cases may set important precedents affecting the broader federal workforce.

Impact on the Broader LGBTQ+ Workforce

While policy changes have specifically targeted transgender service members, gay, bisexual, and other LGBTQ+ military and federal employees are also affected. Administrative delays, reduced government operations, and shifting policy interpretations create uncertainty for all personnel relying on earned benefits and retirement eligibility. Even those not directly targeted may face obstacles in planning their careers, navigating appeals, or securing timely access to benefits. This environment underscores the importance of strong legal protections and oversight to ensure that all LGBTQ+ service members and federal employees receive fair treatment and due process.

Government Shutdown Complications

The ongoing government shutdown further complicates the situation. Limited operations in military and federal offices slow the processing of appeals, retirement applications, and administrative remedies. Federal courts, operating with reduced staffing, are also experiencing delays, slowing the adjudication of constitutional and administrative claims. This combination of policy reversals and shutdown-related delays increases the risk that personnel may be separated or denied benefits before their claims can be fully reviewed.

Legal Remedies and Next Steps

Affected service members and federal employees may pursue several avenues:

  1. Administrative Appeals: Filing appeals within the Department of Defense or relevant federal agency.
  2. Judicial Review: Seeking federal court adjudication on constitutional and administrative law grounds.
  3. Class Action Litigation: Addressing systemic effects when multiple personnel are impacted.

Engaging experienced counsel specializing in military and federal employment law is essential to protect rights and benefits.

Recent News Articles and Resources

Disclaimer:
This update is for informational purposes and does not constitute legal advice. Service members and federal employees should consult an attorney specializing in military or federal employment law for guidance.

About the Law Offices of David P. Sheldon, PLLC:
The Law Offices of David P. Sheldon, PLLC, based in Washington, D.C., provides expert legal representation to military service members and federal employees facing legal challenges. Specializing in military justice, veterans’ rights, and federal employment law, the firm is committed to protecting the rights, benefits, and careers of those who serve our nation.

 

 

Securing Medical Retirement: Navigating MEB, Disability Ratings, and the Fight for Full Benefits

When a service member or federal employee is forced to medically retire, the battle is often just beginning. What should be a medically supported transition can quickly turn into an administrative nightmare—especially when the disability rating assigned by the Medical Evaluation Board (MEB) or Physical Evaluation Board (PEB) doesn’t reflect the full extent of their service-connected conditions.

The 30% and 50% Thresholds: More Than Just Numbers

For military personnel, a disability rating below 30% at separation can mean being cut off from full military retirement and healthcare benefits—even while the Department of Veterans Affairs (VA) may assign a much higher rating for the same condition.

Even more critically, those medically retiring after 20 years of service need a minimum VA disability rating of 50% to receive Concurrent Retirement and Disability Pay (CRDP)—the ability to collect both retirement and disability benefits in full. Anything less results in an offset that significantly reduces long-term financial security.

“For service members approaching medical retirement, achieving a 50% VA rating is absolutely crucial if they want to access concurrent retirement and disability benefits,” says Annie Morgan, Senior Military Defense Counsel at the Law Offices of David P. Sheldon. “That rating threshold can mean the difference between a full pension and a lifetime of lost entitlements.”

Morgan emphasizes the importance of including all physical and mental health conditions in one’s VA claim, along with detailed, service-connected documentation and the use of specific language that aligns with VA criteria.

The Fallout of an Inaccurate Rating

Too often, service members are rushed out of service with a DOD disability rating that doesn’t align with the medical evidence or the VA’s later determination. A recent Stars and Stripes report revealed widespread inconsistencies in how the Department of Defense and the VA assign disability ratings, particularly for combat-wounded veterans:

“A review of cases by The Associated Press found that some combat-injured troops received low DOD ratings despite severe conditions later rated at 70% or higher by the VA.”

Stars and Stripes, March 21, 2025
Read full article

These discrepancies leave veterans without the retirement they earned and push them into lengthy appeals or corrections through the Board for Correction of Military Records (BCMR).

Legal Support Can Make the Difference

This is where the Law Offices of David P. Sheldon can make a critical difference. As one of the nation’s premier military defense and administrative law firms, the firm has extensive experience representing service members and federal employees at every stage of the medical retirement process.

Whether you’re:

  • Challenging a low disability rating from the MEB or PEB
  • Filing a VA disability appeal to maximize your rating
  • Requesting a correction through the BCMR to secure retirement pay retroactively
  • Protecting your security clearance while undergoing medical retirement
  • Or seeking medical retirement as a federal civilian employee

The Law Offices of David P. Sheldon brings decades of experience to your side. The firm has secured life-changing results for clients who were improperly separated or mis-rated, restoring retirement benefits, back pay, and dignity.

Steps You Can Take Right Now

  1. Document Every Condition. Make sure all medical issues—especially mental health—are recorded in your military or federal medical file.
  2. File a Detailed VA Claim. Include every diagnosis, symptom, and its impact on your ability to work or perform daily tasks. Use specific language tied to VA rating criteria.
  3. Don’t Rush Retirement. If you’re close to hitting 20 years, make every effort to reach that threshold. It significantly changes your eligibility for benefits.
  4. Push Back Against Low Ratings. Appeal decisions from both the VA and the DOD if they do not reflect your medical reality. You have legal rights to challenge those outcomes.
  5. Seek Experienced Legal Counsel. Navigating the MEB, VA system, and BCMR is incredibly complex—having a team that specializes in these areas can maximize your outcome.

Final Thoughts

Medical retirement is more than a paperwork process—it’s the final chapter in your military or federal career, and it deserves the full weight of accuracy, fairness, and advocacy. If your service has come at the cost of your health, don’t settle for less than the benefits you earned. Get the right support, fight for the correct rating, and ensure your retirement reflects your sacrifice.

Key Resources

  • VA Disability Compensation Overview
  • Concurrent Retirement and Disability Pay (CRDP)
  • DoD Disability Evaluation System (DES) Guide
  • Board for Correction of Military Records (BCMR) Process

📎 Learn more: https://www.militarydefense.com
📞 Schedule a consultation: 202-546-9575

Disclaimer:

The information provided in this article is for general educational and informational purposes only and does not constitute legal advice or legal representation. Service members facing legal or administrative challenges should consult with a qualified attorney who is experienced in military law to receive guidance tailored to their specific circumstances.

Dylan Thayer to Argue Before D.C. Circuit in Major Coleman’s Case Against the U.S. Air Force

Dylan Thayer to Argue Before D.C. Circuit in Major Coleman’s Case Against the U.S. Air Force

Washington, D.C. – February 20, 2025 – Attorney Dylan Thayer will present oral arguments before the United States Court of Appeals for the District of Columbia Circuit on February 21, 2025, at 9:30 A.M., advocating for Major Thomas G. Coleman (ret.), USAF, in his case against Secretary of the Air Force Frank Kendall, III.

Major Coleman seeks to rectify a bureaucratic error that has unjustly prevented him from completing his 18-year safe harbor period for military retirement. The Air Force Board for the Correction of Military Records (AFBCMR) acknowledged the error but has failed to fully remedy its consequences. At issue is whether a military correction board, upon identifying an injustice, is required under the law of the D.C. Circuit to fully correct that injustice. Thayer will argue that the answer is unequivocally yes.

In his appeal, Major Coleman is requesting 49 days of constructive service credit to compensate for the eight to 14 months of service time he was wrongfully deprived due to Air Force administrative failures in processing his waiver and transfer request between 2012 and 2013. Despite meeting all requirements to make the year count toward his retirement, the Air Force’s error prevented him from earning the necessary 50 points for a complete year. While the AFBCMR has previously made minor adjustments, it has never fully corrected the injustice, leaving Major Coleman without the retirement protections he rightfully earned.

Thayer will emphasize that when a military correction board acknowledges an error, it is legally obligated to restore the service member to the position they would have been in but for the mistake. This case carries significant implications for service members who rely on correction boards to ensure fairness in military records and retirement eligibility.

Oral arguments will take place at the United States Court of Appeals for the District of Columbia Circuit and is listed on the court’s website: www.cadc.uscourts.gov.

Disclaimer:

The information provided in this press release is for general educational and informational purposes only and does not constitute legal advice or legal representation. Service members facing legal or administrative challenges should consult with a qualified attorney who is experienced in military law to receive guidance tailored to their specific circumstances.

Law Offices of David P. Sheldon Advocates for Amendment to SB93 to Expand Tax Benefits for Uniformed Services Retirees

Law Offices of David P. Sheldon Advocates for Fair Tax Treatment of All Uniformed Service Retirees in Montana

Washington, D.C. – The Law Offices of David P. Sheldon, a leading firm in military and veteran legal advocacy, is actively supporting an amendment to Montana Senate Bill 93 (SB93) to ensure that all uniformed service retirees, including those from the U.S. Public Health Service (USPHS) and the National Oceanic and Atmospheric Administration (NOAA) Corps, receive equitable tax benefits.

Currently, SB93 provides a partial tax exemption on retirement income for military retirees who meet specific residency requirements. However, the bill excludes retired members of the USPHS and NOAA Corps, despite their official classification as part of the United States Uniformed Services under 10 U.S.C. 101.

Proposed Amendment to SB93

The Law Offices of David P. Sheldon is advocating for a critical amendment to:

Expand eligibility to include all uniformed services as defined by federal law.

Modify SB93’s language to reflect the full scope of eligible retirees, including USPHS and NOAA Corps personnel.

Remove the five-year limitation and extend the benefits permanently beyond 2033.

Why This Matters

The U.S. Public Health Service Commissioned Corps (USPHS) has served Montana and the nation for over a century, leading public health initiatives, emergency responses, and critical healthcare services—especially in underserved communities. Despite this, USPHS retirees remain excluded from Montana’s proposed tax relief, even though they receive the same pay and benefits as their military counterparts.

Montana residents can take action now by urging their legislators to support the amendment. A one-page fact sheet with key details about SB93’s requested changes is available.

How You Can Help

✔ Contact Montana state legislators and request their support for the SB93 amendment.
✔ Use our pre-drafted email template to easily reach out to your representatives [insert link].
✔ Spread the word on social media using #SB93 and tagging relevant policymakers.

About the Law Offices of David P. Sheldon

The Law Offices of David P. Sheldon is a nationally recognized firm specializing in military law, veterans’ rights, and administrative advocacy. With decades of experience fighting for service members and their families, our firm remains committed to securing justice and fair treatment for those who have served.

For media inquiries or legal assistance, please contact:

Law Offices of David P. Sheldon, PLLC
MilitaryDefense.com
202-546-9575

Disclaimer:

The information provided in this press release is for general educational and informational purposes only and does not constitute legal advice or legal representation. Service members facing legal or administrative challenges should consult with a qualified attorney who is experienced in military law to receive guidance tailored to their specific circumstances.