Recently retired Army (MEB/20+ yrs). I'm 90%DOD(TDRL)/100%VA(P&T). I noticed my military retiree pension pay is equal to 75% of my base pay and not my longevity (50%+). Is this a temporary increase in pay because I'm TDRL or is my military pension going to be permanently calculated as a result of my 90%TDRL/DOD rating (likely will not change if/when changed to PDRL in a few months when reassessed). Thanks for any advice or insight!
Calculations
- Thread starter AnotherArmyGuy
- Start date
Your retired pay will always be the higher of the DoD percentage or the longevity portion.
Your CRDP cannot exceed the longevity amount and if CRSC is a consideration, it has the same limitation plus others.
Ron
Thanks for the reply!
@AnotherArmyGuy- are you saying that you you’re getting 75% of base pay for retired pay and the VA compensation 100% rate (~$3800)?
IF his 20+ is active duty, he would immediately qualify for CRDP since his VA comp is 50% or more.
His 75% retired pay would be reduced by the amount of his VA comp. Any residual (left over) retired pay he would keep
CRDP would restore the longevity amount of waived retired pay.
The combination of CRDP and residual retired pay cannot exceed the longevity amount.
These comments apply if he has 20 years AD now.
Ron
Edited to add:
I recently added the following to my signature block:
7. IF YOU USE THE TERM “20 YEARS SERVICE,” PLEASE CLARIFY THE CATEGORY OF THE 20 YEARS SERVICE.
EXAMPLES:
—20 Good years
—20 years for Basic Pay
—20 Years Active Duty
—20 Years Active Duty Equivalent (generally, creditable reservist points divided by 360)
Thank you RonG! Still a bit confused on the math of what a member could estimate in retired pay and VA Comp.
In a hypothetical scenario: medically retiring service member, non-BRS, with 22 yrs AD with ratings of (80% DOD/ 100% VA). No CRSC ratings.
Avg Base pay: $8000
DOD disability retired pay: 75% x $8000 = $6000
Longevity retired pay: 55% x $8000 = $4400
VA Compensation: $4000
Residual retired pay: $6000- $4000 = $2000 (DOD disability retired pay - VA compensation) *is this amount federally taxed?
Waived retired pay: $4000 (equal to the amount of VA Compensation?)
CRDP: $4000 (restore waived retired pay)
Combination of CRDP and residual retired pay: $4000 + $2000 = $6000 *if this cannot exceed the $4400 longevity retired pay, would CRDP be reduced to $2400? Because the residual retired pay is kept.
Any feedback or questions for this scenario would be appreciated. Thanks!
Re: “Combination of CRDP and residual retired pay: $4000 + $2000 = $6000 *if this cannot exceed the $4400 longevity retired pay, would CRDP be reduced to $2400? Because the residual retired pay is kept.”
Residual retired pay reduces the amount of CRDP.
CRDP = is retired pay
residual retired pay = is retired pay
Ron
Residual retired pay reduces the amount of CRDP.
CRDP = is retired pay
residual retired pay = is retired pay
Ron
CRDP and residual retired pay are normally taxed.
However, see:
Defense Finance and Accounting Service > RetiredMilitary > manage > taxes > isittaxable <—-LINK
RON