Definition and Example. Imagine that you are walking along the sidewalk of a busy road with a group of friends. It's a hot, humid, and sunny day. Everyone is wearing shorts and loose clothing to battle the heat. You look to your left and see a man in a long fur coat and a tall pair of winter boots.
A waiver is the voluntary relinquishment or surrender of some known right or privilege. Regulatory agencies or governments may issue waivers to exempt companies from certain regulations. For example, a United States law restricted the size of banks, but when banks exceeded these sizes, they obtained waivers.
Waiver of Retired Pay. Under certain circumstances a military retiree may choose to waive part or all of their military retirement pay. A waiver is the relinquishment of all or a portion of one benefit to qualify for another benefit. Veterans frequently waive only so much of their retired pay as is equal to the amount of VA disability compensation to which they are entitled.