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A New Webpage Explains the VA Waiver, Retired Pay, CRDP and CRSC (Info Provided by DFAS) 2019-03-22

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RonG

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RonG submitted a new resource:

A New Webpage Explains the VA Waiver, Retired Pay, CRDP and CRSC - The new webpage provides an overview of how the VA waiver works. It also summarizes the two programs

Many military retirees who are eligible for DoD retired pay are also eligible for VA disability pay. The laws and regulations that apply when a retiree is eligible for both types of pay are complex and can be confusing, so we created a new webpage that explains the basics of the VA waiver, and the relationship between VA disability pay, retired pay, Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC).

The law requires that a military retiree waive...
Read more about this resource...
 

RonG

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Thanks Ron!
I am glad DFAS established the new webpage.

There are many aspects of those two programs that are not addressed on the webpage (e.g., REDUX, reserve retirements, Chapter 61-specific rules); but, it does provide answers to some frequently asked questions.

Regards,
Ron
 

chaplaincharlie

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I just saw this linked in the retirees newsletter. Was thinking about adding it, but its already done. Thanks Ron
 

Former MiTT Team Leader

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Interesting Article: however, although admitting a significant "time-lag" between the US DVA and DFAS, does not mention how are going to attempt to fix this? In general the US DVA is more often than not is the root cause of most DFAS pay issues. Furthermore, after 120-days debits are transferred US Dept. Treasury- is this so Secret Service, as believe falls under US Dept. of Treasury, can be/ get involved in debt collection?

Also, due budget cuts many retirees no longer can receive a RAS hard copy in the mail to help keep a record, as some were possibly taught in the US Military- is this going to change any time soon?

Finally, in some folks active duty experience DFAS was in general pretty darn good, however after active duty nothing but issues, and dealing with folks, in some cases much less than ideal and not capable of doing basic arithmetic- is there not some sort of test one must take prior to working at DFAS and other US Federal accounting-finance agencies agencies????

Thanks and good article indeed- but believe some issues still need rectifying.....especially time-lag, and other issues between DFAS and the mighty Department of US Veterans Affairs...could be wrong and appreciate any correction?
 

oddpedestrian

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DFAS treats Chapter 61 just like regular retirees so I don't ever listen to there jibberish I was able to fix many of my issues with them on the VA side and I'm fortunate I don't have to deal with them anymore.
 

TKay

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Can anyone answer/clarify this?
I am eligible for CRDP Concurrent DoD Disability Pay and VA Compensation, which means I will not lose retirement pay in lieu of VA benefit offset.

I have 21yrs AD service, IPEB resulted 60% Combined Total for Permanent/Total... and VA 100%

What will my pay be calculated off of?

The guidance found thus far states I will have to waive the 60% rate of disability pay and be limited to time in service calculated retired pay for 21yrs in order to receive my full VA benefit without penalty/offset?
 

RonG

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1. Your retired pay will be computed at the higher of:
--DoD disability percentage x high three
Or
longevity multipler, (2.5% x AD years ) x high three
It appears your 60% DoD disabilty percentage will be higher

2. Your retired pay will be reduced by the amount of VA compensation.

3. CRDP will restore some of the waived retired pay... emphasis on "some".

4. Your CRDP plus any residual retired pay from the process at item 2 cannot exceed the dollar amount of the longevity portion of retirement pay. CRDP does not restore the disability portion of retirement pay.

Ron
 

TKay

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1. Your retired pay will be computed at the higher of:
--DoD disability percentage x high three
Or
longevity multipler, (2.5% x AD years ) x high three
It appears your 60% DoD disabilty percentage will be higher

2. Your retired pay will be reduced by the amount of VA compensation.

3. CRDP will restore some of the waived retired pay... emphasis on "some".

4. Your CRDP plus any residual retired pay from the process at item 2 cannot exceed the dollar amount of the longevity portion of retirement pay. CRDP does not restore the disability portion of retirement pay.

Ron
Thank you, so even with a higher DoD disability rating, it would be capped at longevity making the rating obsolete for anyone with 20< years of service if they want to collect VA concurrently right? Just trying to make sure I understand this confusing algorithm?
 

RonG

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Yes, there is a ceiling as I explained earlier.

Having a higher DoD increases the likihood of having left over retired pay (residual), but the combination of residual retired pay and CRDP cannot exceed the dollar amount of the longevity portion of retirement pay.

After i retired in 1991 (regular 20 yrs AD) my 50% VA at that time reduced my retired pay by same amount and CRDP did not exist until circa 2003. Things are better now...

Ron

Added...Re: "with 20< years" CRDP would not be a considerstion in this case if you had less than 20 years (i.e., <20 years). It usually requires >=20 years.
 
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