When you finally win, the VA owes you from the day you should have been paid, not the day they got around to agreeing.
Back pay, retroactive benefits, is the lump sum the VA owes you for the time between your effective date and the day they finally granted the claim. On long-fought appeals, it can be substantial.
It all comes down to the effective date
Your back pay is calculated from your effective date, usually the date you filed the claim (or the date entitlement arose). Win at the same percentage but with an earlier effective date, and the check can double.
Why appeals protect your date
When you stay in the appeal stream, supplemental claim, HLR, or Board appeal filed within the deadlines, you preserve your original effective date. Let a decision go final and file fresh, and you may lose years of back pay. This is exactly why we track every deadline on your file.
Effective-date and back-pay rules are governed by 38 CFR §3.400 and the procedural development standards in M21-1, Part III, Subpart iv, Chapter 7 (Effective Dates). Raters are required to review the entire claims file to identify the earliest date an informal or formal claim was received and the earliest date entitlement arose, whichever is later controls the effective date. Under Rice v. Shinseki, a claim for TDIU is part of the underlying disability claim, meaning the effective date for TDIU should trace back to the original filing when the evidence supports it. If the VA assigned an effective date later than the claim date without explanation, that is a clear factual error subject to challenge.