VA pay vs. DoD retirement

Wally3430

Wally3430

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Help me out here guys....after about 2 years on this forum I'm still confused.

Just received word from my PEBLO today that the PEB recommends TDRL for "PTSD (Combat Zone, Not Combat related) 50% and Reactive Airway Disease/Asthma; DVA rated as asthma" 30% for a combined compensable percentage of 70%. VA combined ratings came in a 90%. I will be appealing the "not combat related" statement...but that's another topic.

VA packet listing my ratings also projected my monthly VA compensation will be $1,743.48 (derived from single, no dependents). I actually have a spouse and 3 kids, so I project this number will actually be $2139.48. Now, as an E-8 at 18 YOS, I project my high-3 to be $4597. So 70% of that should be $3217. My current understanding is that I have to select either VA pay or DoD retirement. Even being fully taxed, I would choose $3217 if that's the case. (am I off track?)

Question #1--Assuming I take the military retirement, am I still eligible to apply for CRSC? (assuming I get the "not combat related" PEB recommendation on my form 356 changed)

Question #2--I've heard if your unfitting conditions are found "combat related", DoD does not tax the percentage of pay the disability was rated at. In my case, 50% for PTSD. Is that true?

Question #3--On DFAS retirement calculator I put in high 3=$4597, YOS=18, spouse=yes, no parents, 3 kids under age 18, 0 kids over 18, Military Service Disability Percentage=70, CRSC=0, VA percentage=90,
Results were: Expected monthly VA payment----$2139.48
Retired pay-----------------------------$1077.52
CRSC Entitlement---------------------$0
Total Projected Benefit-------------$3217.00

So, I'm confused. This calculator says I receive both retired pay and military pay....but my PEBLO is saying I only receive one or the other since I'm under 20 YOS. Nevermind me being on TDRL; I understand that's different. This question is assuming eventual PDRL. Can someone confirm what I'd actually receive based on this and which way is best assuming I have to choose VA or DoD pay? Adding in a 60% CRSC rating increases it $990, so I'll be fighting for that. I'm in my 10 day appeal window, so quick assistance is appreciated.
 
Ask for permanent limited duty to complete your 20 years and you get both. With 18 you will get VA pay tax free as a portion of your retirement chack, the rest you will get from DOD to make up the rest for your retirement pay 3217 so you will get two checks just not the full amount. I am not sure how CRSC works but I would definitely try to get it combat related. If you get PLD and complete 20 you will get both checks but your DOD retirement check would be limited to 50% based on your years of service. Uncle Sam will keep the extra 20%
 
THolleyH46 said:
Ask for permanent limited duty to complete your 20 years and you get both. With 18 you will get VA pay tax free as a portion of your retirement chack, the rest you will get from DOD to make up the rest for your retirement pay 3217 so you will get two checks just not the full amount. I am not sure how CRSC works but I would definitely try to get it combat related. If you get PLD and complete 20 you will get both checks but your DOD retirement check would be limited to 50% based on your years of service. Uncle Sam will keep the extra 20%
Click to expand...

I may explore the LD option. My PEBLO mentioned in 30+ years she has only seen one approved. So assuming I don't take that option or it is denied, are you saying there is no way I'll get the combined VA/DoD amount that the calculator indicates (assuming CRSC is denied)?
 
I think you will still get the combined amount. I got approved for PLD and I was at 18 years too and was also 70% DOD TDRL.
 
Your PEBLO is correct. You are under 20Y so you do not get concurrent receipt. As of right now, your DoD retirement is not taxable (combat zone) and your VA C&P is not taxable (nor is is considered income).

You will get your VA C&P payable at 90% and that will be subtracted from (offset) from your DoD retirement at 70% of your retired pay base (average of top three).

DoD retirement at 70% = $3217 - VA C&P $2139.48 = $1077.52 (non-taxable income)
VA C&P $2139.48 (not income, not taxable)
Total entitlement = $3217.00
 
Ok, lets say I went the limited duty route and retired at 20 as an E-8 ($5009 in todays dollars). I'd retire at 50%, $2504, and I'd add the entire VA $2139.48 for a total monthly benefit of $4643...yes? Now, if I just went PDRL at 18 years for a total entitlement of $3217...I would add in a 60% CRSC rating (if approved) which would be $990. So then $3217 plus $990 (crsc) would equal $4206 total---sound correct? (my math is worthy of a second look). I should also note, my 70% DoD rating.....only 50% of it was combat...so I suppose 30% of the DoD retirement will be taxed.
 
Oh ya, just read in my guide that those retired under TDRL are not eligible for the Limited Duty Assignment status. So, unless I can get that changed to PDRL on the appeal, further discussion of the pay benefits of staying until 20 are irrelevant.
 
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