Confusing outcome letter

[Ms4]

Hi all,


I med boarded at 21 years as an e8. Current CRDP is 3224. 100% VA


I got my CRSC decision letter today and I’m confused by the numbers. Why is is saying crdp will go down? Is there a seperate payment not included on this sheet that makes the crdp option higher?

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The Defense Finance and Accounting Service appreciates the opportunity to serve you. We were recently notified that you qualify for Combat Related Special Compensation (CRSC). While you also are eligible for Concurrent Retirement and Disability Pay (CRDP), you cannot receive both CRSC and CRDP. Therefore, we analyzed your account to determine which payment provides the greatest benefit to you.
Your CRDP entitlement is more beneficial than your CRSC entitlement, therefore we have selected CRDP due to your tax exempt status.


If you do not agree with the election that we have made for you, please complete the enclosed form and return it to us within 45 days of the date on this letter. Elections received after 45 days cannot be honored. If you do not return the election form, you will continue to receive CRDP payments until the next annual CRSC/CRDP Open Season.

Note: Amounts calculated on this form are used from the current Department of Veterans Affairs (VA) data. Any changes to VA data, which includes the loss of Individual Unemployability, may change the amounts displayed on this form.



Combat-Related Special Compensation (CRSC)
Section 1413a of the Title 10, United States Code, authorizes the payment of CRSC. CRSC is nontaxable and is not subject to the provisions of the Uniformed Services Former Spouse Protection Act. CRSC payments are subject to garnishments for alimony and child support.

I elect to receive CRSC in 2025. Current gross CRSC entitlement is $3,224.00


Concurrent Retirement and Disability Pay (CRDP)
Section 1414 of Title 10, United States Code, authorizes a phased concurrent receipt of retired pay and VA disability compensation beginning January 2004. CRDP payments are subject to tax withholding and are subject to the provisions of the Uniformed Services Former Spouse Protection Act and garnishments for alimony and child support.


I elect to receive CRDP in 2025. Current gross CRDP entitlement is $2,592.89




Even ai is confused..
Based on the contradiction identified in our last chat (CRSC's non-taxable gross pay appearing much higher in your net compensation), contacting DFAS is highly recommended before the 45-day deadline.

 

[RetiredColonel-MikeT]

Yeah, call DFAS tomorrow, preferably mid to late morning or mid-afternoon (most callers call first thing in the morning or during lunchtime). Your CMRP/CRDP should not drop one bit, the difference being that CMRP is a) taxed and b) SBP is usually taken out from it. Usually the notification letter shows the gross amount, however, check a previous eRAS to see if the numbers come close after withholding. Also, was your Ch 61 combat-related? If yes, then you would be non-taxable anyway. Either way, at least your CRSC is right on the money since it matches your original CMRP.

 

[Ms4]

Yeah, call DFAS tomorrow, preferably mid to late morning or mid-afternoon (most callers call first thing in the morning or during lunchtime). Your CMRP/CRDP should not drop one bit, the difference being that CMRP is a) taxed and b) SBP is usually taken out from it. Usually the notification letter shows the gross amount, however, check a previous eRAS to see if the numbers come close after withholding. Also, was your Ch 61 combat-related? If yes, then you would be non-taxable anyway. Either way, at least your CRSC is right on the money since it matches your original CMRP.

Ch61 was combat related.

Still not sure where the CRDP number is coming from and why it would be lower than I have now. My combat coded percentage was 80% I believe. I only say this because 80% of my current retirement is the number they are saying is the new crdp.

I’ll call tomorrow and report back.

 

[RetiredColonel-MikeT]

Understand something when it comes to DFAS: your initial pay would have been based on your 75% (max for Ch 61 retirements) x high-36. When you revert to your CMRP you will see an offset by the VA compensation of the difference between your 75% ($4,605.71) and your 52.5% longevity pay ($3224.00). Even with putting it down on paper, I still cannot see how they came up with the amount you mentioned above. If you look at your CRSC approval memo, you may see a bunch of gibberish that somewhere may have "HAVG" base pay, which is prob close to $6,140.95 (see image below). I don't understand why they do that as it ends up VERY confusing to the veteran, yet here we are. I still disagree with DFAS's assessment of my HAVG BASE AMT, yet that's a totally different issue lol