Hello
@Bill Wall ,
Your retired pay situation is complex and I only have a few minutes now. I'll return in the morning to complete come of the computations.
Factors:
1. Your DoD disability pay will be 5955 (your figure) x 75% (maximum percentage) = DoD disability retired pay
2. Your DoD disability retired pay will be reduced by the amount of your VA compensation. Your VA comp is 3375 + 111.74 per the info you provided.
So...thus far: 5955 X 75% (which is higher than longevity percentage) = 4466.25 Ch61 retired pay, minus (3375 + 111.74) VA Comp amt = 979.51 residual retired pay you keep
3. Based on the information you provided you are entitled to CRDP which restores waived retired pay; however, those who accepted the REDUX/CSB have their CRDP computed using the REDUX formula.
4. CSB REDUX Retired Pay Calculation for CRDP
The percent multiplier reduced is by:
- 1 percent for each full year of creditable service less than 30, and
- 1/12th of 1 percent for each full month of creditable service less than a full year.
This will also affect your retired pay by reducing the cost of living adjustments (COLA) by one percent.
This reduction remains in effect up to the age of 62. Once you reach age 62, your retired pay will be restored to the same amount paid under the High-3 System. Full COLA rates will be applied to your new computation, but the COLA will continue to be applied at the reduced rate each year following.
Disability Retirees and Reserve/Guard members retiring at age 60 (or younger in some cases) are exempt from all provisions of the CSB/REDUX provisions except the 1 percent COLA reduction. HOWEVER, The CRDP computation uses the REDUX formula. (DFAS determination will be provided later).
5. The CRDP discussed above when added to the residual retired pay shown at item 2 cannot exceed the longevity portion of retired pay using the REDUX formula.
6. Basically, when considering CRDP in your case, you will receive:
a. VA compensation = 3375 + 111.74 per the info you provided
b. DFAS residual residual retired pay and CRDP = an amount equal to the longevity portion of your retired pay using REDUX formula.
7. Determination by DFAS in 2017:
Question:
A recurring question that I see on various veteran websites concerns how CRDP is calculated when a veteran with more than 20 years service has been retired under Chapter 61 but previously opted for the REDUX system.
When the VA disability compensation exceeds the chapter 61 retirement amount, is the amount restored by CRDP calculated at the reduced REDUX retirement factor or at the 2.5% per year of service rate used for Chapter 61 purposes?
For example, a retiree has 20 years service and DOD disability finding of 30% disability. The retiree is retired at 50% based on 2.5% per year of service IAW chapter 61. All of his retirement is offset by his VA compensation. His REDUX retirement would be 40%. Is CRDP dollar amount based on the 40% or the 50% factor?
Answer:
The CRDP dollar amount is based on the 40% REDUX retirement. If you would like an audit of your account or have any further questions they may be directed in writing to:
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Ron
edited to add: My remarks do not address CRSC which will have similar limitations.