Longevity Retirement once I reach 60

J

justamarty

Well-Known Member
PEB Forum Veteran
Registered Member
Hi,

I've been on the forum for awhile now. I should conclude my PEB in the next month or two. I'm expecting somewhere between 50 and 70% DoD rating by the time everything pans out (I was 70% VA going into the MEB with LODs in order). According to my MEB Legal rep, I'll likely be 60%, possibly 70%. I understand the disability med retirement from now until I'm 60 based on my high three. Being a reservist, I don't expect to have any VA offset waived/or have concurrent receipt because I don't have 20 active years (I have 20 y Guard retirement eligibility letter and 4400 points) and most of my conditions may have occurred in combat zones, but not in any conflict to speak of.

What I'm a little confused is my longevity retirement . With 4400 points, I'm eligible for about 30.5% of my high-three by my calculations plus VA comp at that point My question is what about the points I would have accumulated over the next 13 years (I just turned 47) before retirement. 70 points per year for 13 years would be an extra 910 points or just over 6% more retirement benefit. I'm usually 100 points/year, but I'm not concerned on that end. Does my longevity retirement at 60 end up giving me the benefit of the doubt that I would have stayed in until 60 (I would have since I'm a Title 32 technician) on the military side. I'm aware of the Title 32 process. I'm hoping I get a little extra benefit. I know, it's not that much of a difference, but I want to understand this as much as I can.

Thanks.
 
Hello @justamarty ,

1. You can apply for non-regular (reserve/NG) retirement as you near completion of the age requirement.
2. The multiplier you cited for the non-regular retirement appears to be correct. (4400/360 = 30.55%)
3. You will not accumulate points while being in a disability retirement status.
4. From the info you provided, and assuming a 50% or more VA rating, you will qualify for concurrent receipt during your approved non-regular retirement.

Ron

Those with reserve/NG experience are invited to add or correct my remarks. I had a regular retirement in 1991.
 
justamarty said:
Hi,

I've been on the forum for awhile now. I should conclude my PEB in the next month or two. I'm expecting somewhere between 50 and 70% DoD rating by the time everything pans out (I was 70% VA going into the MEB with LODs in order). According to my MEB Legal rep, I'll likely be 60%, possibly 70%. I understand the disability med retirement from now until I'm 60 based on my high three. Being a reservist, I don't expect to have any VA offset waived/or have concurrent receipt because I don't have 20 active years (I have 20 y Guard retirement eligibility letter and 4400 points) and most of my conditions may have occurred in combat zones, but not in any conflict to speak of.

What I'm a little confused is my longevity retirement . With 4400 points, I'm eligible for about 30.5% of my high-three by my calculations plus VA comp at that point My question is what about the points I would have accumulated over the next 13 years (I just turned 47) before retirement. 70 points per year for 13 years would be an extra 910 points or just over 6% more retirement benefit. I'm usually 100 points/year, but I'm not concerned on that end. Does my longevity retirement at 60 end up giving me the benefit of the doubt that I would have stayed in until 60 (I would have since I'm a Title 32 technician) on the military side. I'm aware of the Title 32 process. I'm hoping I get a little extra benefit. I know, it's not that much of a difference, but I want to understand this as much as I can.

Thanks.
Click to expand...
Excellent response by @RonG ! One thing to look into after being medically retired is to see if you can get CRSC. You apply to your branch once you are medically retired. My wife had 6000 points and 20 year letter in hand when medically retired. She was missing out on quite a bit compared to the sum of her longevity non regular retirement + VA compensation. She joined at age 17 and so was very young when medically retired. She would have had to wait 20+ years to apply for her non regular retirement to get CRDP.

She applied for CRSC and was approved for several presumptive conditions where all she needed was a service connected VA rating and proof she was in an eligible country such as Iraq, Iran Afghanistan etc. So the combination of her VA compensation, Chapter 61 retirement amount (after VA offset) + CRSC = the same max compensation she could get through longevity Reserve Pension + VA compensation.
 
Provis,

has something changed with regards to CRSC eligibility and it being presumptive? I’m medically retired and 100% PT for mostly myasthenia gravis and mental health but from my reading (admittedly years ago) I didn’t apply for CRSC through the Army because while I certainly did suffer from depression and other psych issues while deployed to Iraq, I did not mention anything at all in the post deployment medical screenings for fear about it effecting my Army officer career negatively. I was under the impression that I would have had to prove that it was due to War, and I was a Signal officer fobbit who rarely left the FOB, although we took weekly rockets and mortars…

anyway, I never thought I had a chance at CRSC, but I do have VA service connected conditions and I did spend a year in Iraq. What are your thoughts?
 
tony292 said:
Provis,

has something changed with regards to CRSC eligibility and it being presumptive? I’m medically retired and 100% PT for mostly myasthenia gravis and mental health but from my reading (admittedly years ago) I didn’t apply for CRSC through the Army because while I certainly did suffer from depression and other psych issues while deployed to Iraq, I did not mention anything at all in the post deployment medical screenings for fear about it effecting my Army officer career negatively. I was under the impression that I would have had to prove that it was due to War, and I was a Signal officer fobbit who rarely left the FOB, although we took weekly rockets and mortars…

anyway, I never thought I had a chance at CRSC, but I do have VA service connected conditions and I did spend a year in Iraq. What are your thoughts?
Click to expand...
Certain conditions are presumptive such as Asthma, Sinusitis, etc. Not all conditions. I would review. Also, it doesn't hurt to apply. There is some discretion especially for the Army. My wife got CRSC approved for some conditions that my wife didn't even apply for:)
 
Provis said:
My wife got CRSC approved for some conditions that my wife didn't even apply for:)
Click to expand...
Not sure at all if this is what happened with Provis' wife, but I have had several clients who applied for CRSC for conditions that were more directly combat-related and they were denied for those conditions but were granted CRSC for tinnitus (when they did not apply for that condition). That stuck me as odd, and then went back to the CRSC on appeal and got the more directly combat-related conditions added. I have no evidence or proof to show this, but I wondered if the CRSC board thought that giving a lower-rated condition might make the claimant give up and accept something instead of what they were entitled to receive.
 
My wife got approved for everything she claimed + 2 more conditions she didn't claim. I think they are trying to save themselves some time by not needing another application to add additional claims later on. It was a pleasant surprise!
 
I was medically retired (combat related) while on active orders with the Reserves. I have 34 years of service and my points equal 15.7 years of active service. I have a "20 year letter" from the reserves. I was medically retired with 80% DOD and 100% VA P&T. Currently, I'm awaiting CRDP approval (what a shit show of non-communication between HRC and DFAS). I know I am eligible for CRDP - just waiting for DFAS to acknowledge they have the packet that they say they didn't get from HRC; yet HRC says it was sent five months ago.

As stated, as of now I points that equal 15.7 years of active service. My high three base pay is approximately $ 8,200.
Currently I am receiving $ 6,150 DOD Retirement based on 75% of my base pay (medical retirement) less Survivor Benefit of $ 350 which leaves $ 5800.

Of that $ 5,800, the VA disability amount of $ 4,000 is deducted leaving me a DOD amount of $ 1,800.

Based upon this information, can you advise as to the total amount of pay I will receive when I do start receiving CRDP?

If any additional information is needed, please let me know.

Thank you.
 
Hickory7 said:
I was medically retired (combat related) while on active orders with the Reserves. I have 34 years of service and my points equal 15.7 years of active service. I have a "20 year letter" from the reserves. I was medically retired with 80% DOD and 100% VA P&T. Currently, I'm awaiting CRDP approval (what a shit show of non-communication between HRC and DFAS). I know I am eligible for CRDP - just waiting for DFAS to acknowledge they have the packet that they say they didn't get from HRC; yet HRC says it was sent five months ago.

As stated, as of now I points that equal 15.7 years of active service. My high three base pay is approximately $ 8,200.
Currently I am receiving $ 6,150 DOD Retirement based on 75% of my base pay (medical retirement) less Survivor Benefit of $ 350 which leaves $ 5800.

Of that $ 5,800, the VA disability amount of $ 4,000 is deducted leaving me a DOD amount of $ 1,800.

Based upon this information, can you advise as to the total amount of pay I will receive when I do start receiving CRDP?

If any additional information is needed, please let me know.

Thank you.
Click to expand...
Hello,

Your longevity multiplier is:
15.7 x 2.5% = longevity multiplier
(2% is used for blended retirement)
I assume 15.7 is the active duty equivalent shown on your retirement orders under DISABILITY RETIREMENT.

The Total amount paid by DFAS will not be more than high three x longevity multiplier.

You also will receive your VA comp. Have you met the age requirement for reserve retirement and if so, have you applied for it?

Ron
 
My final DOD rating was 80% so the max for pay purposes is 75% of my base pay which is $ 6,150.00.
Residual Retired Pay is $ 1,800 ($ 6,150 less $ 350 (SBP) less $ 4,000 (VA Offset)
DOD Disability Percentage 80%
VA Compensation: 100% plus SMC-K which equals $ 4,000 (Veteran with Spouse) (Actually $ 4,078 with 2024 COLA)
Active Duty Equivalent: 15.7 years
CRSC percentage: 70%
Blended Retirement: NO

Also, if I was retired medically due to "disability, combat related", will I pay taxes on my military retirement and or CRDP.

Thank you.
 
Sorry Ron. I just saw your last question. I have met the requirement for reserve retirement and have applied for it. The issue I'm having with my CRDP is that HRC says they have sent DFAS the appropriate paperwork but DFAS says they don't have it. Of course, that's depending on what day it is and who is answering my inquiry. Four months ago they stated they had my CRDP packet and it was being processed. Then three months ago, they said the date on my RPAM (Retirement Points Statement) didn't match my retirement date. This was remedied in a couple days and they said they received everything. I called three weeks ago and it was in it's final review at DFAS but today they stated they didn't ever get anything from HRC.
 
Hello,

When we discuss residual retired pay we are talking about the amount remaining after the VA offset. The SBP deduction comes from the residual of course.

Speaking of gross amounts:
1. Residual retired pay (if any) plus CRDP cannot exceed the longevity portion of retired pay. The longevity amount is the ceiling. DFAS pays residual retired pay and CRDP which is retired pay itself.

If the residual retired pay exceeds the longevity amount, then no CRDP is payable.

2. You will receive all your VA compensation from the VA.

3. Have you considered CRSC? It has similar limits in disability cases but it is non taxable.

Ron
 
Addendum: Taxes

TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.

VA Compensation Deduction: For most members who retired under a non-disability law, retired pay taxable income is simply reduced by the amount of any VA compensation received. For members who retired under the Temporary Disability Retired List or the Permanent Disability Retired List, retired pay taxable income is reduced by whichever of the following is greater:
  • The amount of VA compensation received or
  • A tax-exempt amount of gross pay determined by the following formula:
Step 1:
Military (not VA) disability percentage: %
x (times) Active Duty pay at the time of retirement:
= (equals) Initial amount of tax-exempt gross pay

Step 2:
Initial amount of tax-exempt gross pay:
x (times) applicable Cost-Of-Living-Adjustment (COLA): %
= (equals) Current tax-exempt gross pay

This information is reported by DFAS on your 1099-R.

Combat Related Special Compensation (CRSC): These payments are non-taxable.

Concurrent Retirement Disability Payments (CRDP): CRDP is a restoration of your retired pay, not a separate entitlement. Therefore, if your retired pay is taxable so is any CRDP payments you receive. If your retired pay is non-taxable, your CRDP is also non-taxable.
—

Ron
 
RonG said:
Addendum: Taxes

TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.

VA Compensation Deduction: For most members who retired under a non-disability law, retired pay taxable income is simply reduced by the amount of any VA compensation received. For members who retired under the Temporary Disability Retired List or the Permanent Disability Retired List, retired pay taxable income is reduced by whichever of the following is greater:
  • The amount of VA compensation received or
  • A tax-exempt amount of gross pay determined by the following formula:
Step 1:
Military (not VA) disability percentage: %
x (times) Active Duty pay at the time of retirement:
= (equals) Initial amount of tax-exempt gross pay

Step 2:
Initial amount of tax-exempt gross pay:
x (times) applicable Cost-Of-Living-Adjustment (COLA): %
= (equals) Current tax-exempt gross pay

This information is reported by DFAS on your 1099-R.

Combat Related Special Compensation (CRSC): These payments are non-taxable.

Concurrent Retirement Disability Payments (CRDP): CRDP is a restoration of your retired pay, not a separate entitlement. Therefore, if your retired pay is taxable so is any CRDP payments you receive. If your retired pay is non-taxable, your CRDP is also non-taxable.
—

Ron
Click to expand...
Great Information, Ron.
Thanks.
 
Hickory7 said:
Sorry Ron. I just saw your last question. I have met the requirement for reserve retirement and have applied for it. The issue I'm having with my CRDP is that HRC says they have sent DFAS the appropriate paperwork but DFAS says they don't have it. Of course, that's depending on what day it is and who is answering my inquiry. Four months ago they stated they had my CRDP packet and it was being processed. Then three months ago, they said the date on my RPAM (Retirement Points Statement) didn't match my retirement date. This was remedied in a couple days and they said they received everything. I called three weeks ago and it was in it's final review at DFAS but today they stated they didn't ever get anything from HRC.
Click to expand...
Getting this done and applied to get CRDP will max out your compensation. You can only get one or the other for CRSC and CRDP. If not maxed out on total compensation with CRSC then CRDP will get you all the way there. So I would focus on this and if you don't get anywhere consider contacting your congressman. My wife selected the threshold SBP option which is a low cost option and had the original paperwork showing that initial selection but DFAS was taking out max amount so instead of having $28 for SBP it was nearly $400. It took 3 months to fix and was a headache that involved talking to DFAS, her congressperson until it was resolved.
 
Provis said:
Getting this done and applied to get CRDP will max out your compensation. You can only get one or the other for CRSC and CRDP. If not maxed out on total compensation with CRSC then CRDP will get you all the way there. So I would focus on this and if you don't get anywhere consider contacting your congressman. My wife selected the threshold SBP option which is a low cost option and had the original paperwork showing that initial selection but DFAS was taking out max amount so instead of having $28 for SBP it was nearly $400. It took 3 months to fix and was a headache that involved talking to DFAS, her congressperson until it was resolved.
Click to expand...
Thank you, Ron. I've read on the forum when it's not uncommon for DFAS to say they don't have the paperwork when they actually do. Was told that many times the people at the help desk just don't fully know how to look up everything. Fingers crossed. Once again, thank you for the assistance.
 
Hello,

The most recent advice was provided by @Provis :)

Ron
 
Hickory7 said:
Thank you, Ron. I've read on the forum when it's not uncommon for DFAS to say they don't have the paperwork when they actually do. Was told that many times the people at the help desk just don't fully know how to look up everything. Fingers crossed. Once again, thank you for the assistance.
Click to expand...
Thank you, @Provis
 
Provis said:
Excellent response by @RonG ! One thing to look into after being medically retired is to see if you can get CRSC. You apply to your branch once you are medically retired. My wife had 6000 points and 20 year letter in hand when medically retired. She was missing out on quite a bit compared to the sum of her longevity non regular retirement + VA compensation. She joined at age 17 and so was very young when medically retired. She would have had to wait 20+ years to apply for her non regular retirement to get CRDP.

She applied for CRSC and was approved for several presumptive conditions where all she needed was a service connected VA rating and proof she was in an eligible country such as Iraq, Iran Afghanistan etc. So the combination of her VA compensation, Chapter 61 retirement amount (after VA offset) + CRSC = the same max compensation she could get through longevity Reserve Pension + VA compensation.
Click to expand...
Provis:
This situation is almost identical to mine with the exception of me being eligible for retirement (due to qualifying deployment periods in Iraq) when I was medically retired during a period of Active Duty. With my situation, it seems that there would be no difference between CRSC and CRDP since my medical retirement is non-taxable and I already qualify for non-regular retirement. As you stated, my Medical Retirement Amount (after VA offset) + CRDP would equal my Reserve Pension plus VA Compensation. Appreciate all the assistance you give everyone!
 
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