Any help with CRSC??

JTLChristian42

New Member
Registered Member
I was medically retired after 20 years active duty for TBI and PTSD at 70% TDRL and 100% VA in 2016! Just received my new 199 and orders and was moved from TDRL to PDRL at 100% and the notes on my orders and 199 state instrument of war, combat, etc! Now I already get CRDP and have since being place on TDRL in 2016! I guess the question is there any benefit to apply for CRSC?? My DD-214, my VA, my 199, and my PDRL orders all rate at 100% as a result of combat, and instrument of war? I retired as an e-8! Thanks in advance for any assistance! I asked my AW2 and he said I would be just wasting my time, but I read an article from some lawyers where they said always apply for CRSC? Thanks
 

RonG

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I was medically retired after 20 years active duty for TBI and PTSD at 70% TDRL and 100% VA in 2016! Just received my new 199 and orders and was moved from TDRL to PDRL at 100% and the notes on my orders and 199 state instrument of war, combat, etc! Now I already get CRDP and have since being place on TDRL in 2016! I guess the question is there any benefit to apply for CRSC?? My DD-214, my VA, my 199, and my PDRL orders all rate at 100% as a result of combat, and instrument of war? I retired as an e-8! Thanks in advance for any assistance! I asked my AW2 and he said I would be just wasting my time, but I read an article from some lawyers where they said always apply for CRSC? Thanks
1. CRSC is nontaxable.

2. CRDP is normally taxable. Retired pay that is nontaxable results in associated CRDP as being nontaxable as well.

3. Your current retired pay appears to be 75% x high three (for PDRL) As a medical retiree, your retired pay will be reduced by the amount of VA compensation received. CRDP restores up to the longevity portion of retired pay.

4. Your CRDP is based on the dollar amount of the longevity portion of retired pay.

5. CRSC limit would be the amount of waived retired pay or the longevity portion of retired pay UNLESS the CRSC approved rate (using VA comp tables) is less.

6. Opinion: If the CRSC approved percentage results in a payment less than the longevity portion of retired pay, select CRDP. DFAS will automatically implement whichever benefit pays more. You will be given the option to change it if you wish to receive less.

7. The computation of CRSC is somewhat complex in certain scenarios...I did not address every possibility.

Good luck,
Ron

Added:

CRSCCRDP
Qualified Injurycombat-linked disabilitiesservice-connected disabilities
ClassificationSpecial Compensation (not subject to rules and regulations governing military retired pay)Military retired pay (subject to rules and regulations governing military retired pay)
Full Concurrent Receipt?Yes - Retirees can receive either part or all of both their military retirement pay and VA disability compensationNo - Restoration of pay is phased in over 10 years (from 2004 to 2014)
Claim ProcessMust apply through Branch of ServiceAutomatic
EligibilityEligible claimants:
  • Are entitled to and/or receiving military retired pay
  • Are rated at least 10% by the Department of Veteran’s Affairs (VA)
  • Are least 60 years old or retired under Temporary Early Retirement Authority (TERA) if they are a reservist
  • Have waived their VA pay from their retired pay
Eligible claimants:
  • Are retired with 20 years Active or Reserve Duty
  • Are receiving retired pay (that is offset by VA payments)
  • Have a 50% + VA disability rating
  • Reservists and national guardsmen must be eligible to retire based on service, normally 60 years old
Retroactive EntitlementMay go back to June 1, 2003, for any month in which all eligibility requirements are satisfied but may be limited to retirement date.

Disability retirees with less than 20 years will be automatically limited to a retroactive date of January 1, 2008 as required by legislation passed by Congress effective 2008.
May go back to January 1, 2004, for any month in which all eligibility requirements are satisfied, but may be limited to retirement date.

CRDP is not payable before January 1, 2004.
Federal TaxationNon-taxableTaxable, according to your current retired pay Federal Income Tax Withholding (FITW) tax rate
Issue of PaymentCRSC payments are deposited to the same account where you receive your retired pay. If your VA disability compensation offset exceeds your retired pay, your CRSC payment will be deposited into the account most recently designated as your current checking address.CRDP is not a new payment, but rather an increase in your retired pay. CRDP decreases your VA waiver so that you receive more of your gross retired pay. Your new pay amount will continue to be deposited into the same account and will not affect your compensation from the VA.
Subject to Division with a Former SpouseNo*Yes
Subject to Collection / GarnishmentYesYes
SBP (Survivor Benefit Plan) Premiums DeductedYesYes
 

JTLChristian42

New Member
Registered Member
Thanks for the reply Ron! I can imagine how busy your are!
I take home $2100 from DFAS and have a $1100 offset for the VA waiver! All my DFAS or CRDP pay is tax free and has been since I was placed on CDRP! I was just curious if it’s even worth it to see if CRSC would be better in the long run if I got Approved?? I have all the documentation and if I got approved at the 100% rate would that change anything financially or be better than the compensation I’m getting for CDRP! I believe my pay amounts to the 50% rate! It is very confusing and I just don’t know if applying for it and dealing with the hassle could even make a difference? Again thanks for your assistance! It’s greatly appreciated!
 

RonG

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Staff Member
PEB Forum Veteran
Registered Member
Thanks for the reply Ron! I can imagine how busy your are!
I take home $2100 from DFAS and have a $1100 offset for the VA waiver! All my DFAS or CRDP pay is tax free and has been since I was placed on CDRP! I was just curious if it’s even worth it to see if CRSC would be better in the long run if I got Approved?? I have all the documentation and if I got approved at the 100% rate would that change anything financially or be better than the compensation I’m getting for CDRP! I believe my pay amounts to the 50% rate! It is very confusing and I just don’t know if applying for it and dealing with the hassle could even make a difference? Again thanks for your assistance! It’s greatly appreciated!
Re: "I have all the documentation and if I got approved at the 100% rate..."

You situation is not unique, but somewhat uncommon on this board since you have a CH 61 retirement but also qualify for a regular retirement (i.e., 20+ years AD). You qualify for CRDP by having a VA rating of 50% or more.

You have stated that none of your retired pay/CRDP is taxable.

In your particular case, there seems to be no benefit to change to CRSC EXCEPT CRSC is not Subject to Division with a Former Spouse. See the DFAS chart at post 2.

General. CRDP can be more than CRSC, but CRSC can never be more than CRDP for those eligible for both (i.e., the retiree has a choice). CRDP and CRSC can be the same gross amount (as in your case).

----------------------

CRSC: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017

630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees

"Members retired for disability under 10 U.S.C., Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2)"

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CRDP: DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 64 * October 2018

"640401. Special Rule for Disability Retirement Members retired for disability under 10 U.S.C., Chapter 61, §§ 1201 through 1222 remain subject to the offset required under 38 U.S.C. §§ 5304 and 5305 for any retired pay they receive that is in excess of the amount of retired pay to which they would be entitled under any other provision of law based on service in the Uniformed Services, had they not retired for disability. Since retired pay in excess of the amount calculated for years in service is still subject to offset under the CRDP program, a member with an amount of retired pay remaining after offset of VA disability compensation, that is greater than the amount calculated for years of service, is not eligible for any increase in payment of retired pay under the CRDP program."

Interpretation: Restricted basically in the same manner as CRSC.



Ron
 

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Registered Member
Spum,

Re: "CRSC claim approved but entitled to $0.00"


Based on the info you provided, it [DFAS'] appears to be correct. You have a significant amount of residual retired pay that limits the amount of CRSC payable (zero in your case).

The documentation you provided shows your "Service Gross Pay Amount" as $533. The Service Gross Pay Amount is the longevity portion of your retired pay.
--Active duty years x 2.5% = longevity multiplier
--High-three average base pay x 2.5% = dollar amount of longevity portion of retired pay (CRSC cannot exceed this amount)
--Your residual retired pay (after VA offset) = $1245.29
-- The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed $533. You receive zero CRSC since $1245.29 far exceeds the maximum CRSC of $533. See the excerpt from DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 below.

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DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017

630805. CRSC Payment Reduction for 10 U.S.C., Chapter 61 Disability Retirees
B2

“Members retired for disability under 10 U.S.C., Chapter 61, with less than 20 years of creditable service computed under 10 U.S.C. § 1208, and who are qualified for CRSC, on or after January 1, 2013, will have the maximum CRSC payment restrictions. The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed the amount that is equal to 21⁄2 percent of the member’s years of creditable service multiplied by the member’s retired pay base under 10 U.S.C. § 1406(b)(1) or 10 U.S.C. § 1407, whichever is applicable to the member.”

Ron
 
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