Army Reserve Medical Retirement?

Hello,

1. As you probably know, if he received a DoD CH 61 retirement now, but has yet to meet the age requirement for reserve retirement, the following would occur:

The multiplier for disability retired pay is either:
  • 2.5 percent for each year of service, or
  • disability percentage assigned by the service at the time you retire
Either way, the multiplier is limited to 75 percent by law. If you are on the Temporary Disability Retired List, the minimum multiplier is 50 percent while on the TDRL.

Retired Pay Base
x Service Percent Multiplier
= Gross Retired Pay

2. His disability retired pay will be reduced by the amount of his VA compensation. In many cases, this results in zero retired pay remaining.

3. He will not be eligible for CRDP (a restoration of waived retired pay) until he meets the age requirement for reserve retirement.

4. He might be eligible for CRSC which replaces some or all of waived required pay for combat related disabilities.
See this collection of CRDC info ---> LINK, CRSC

Ron
Old conversation but I am new to this process. So, if I understand this correctly, you cannot receive your VA disability and medical retirement pay at the same time?

I am a TPU member with 33+ years, currently have 100% VA rating, beginning the MEB process.

I was under the impression if your VA rating was 50% or greater there was no recoupment of retired pay. I see now medical-retired pay looked at differently than ordinary retired pay.

I have re-read information on DFAS' webpage and the post I am replying to...this is what I think it says:

Reservist retiring under Chapt 61 (medical disability) is not eligible to receive both the immediate retired pay and VA disability compensation. Once the Reservist is eligible for retired pay (normally age 60) they will begin to receive both their retired pay and VA compensation, following the %50 or more rule. So the only financial benefit from medical disability retirement is the difference in retired pay over the VA payment, until reaching age 60...I think. So if my VA compensation is $3800 right now (100%) but my medical disability retired pay would be $5000, I would be getting an overall increase of $1200 per month.

Is military medical retired pay tax free? That could be another consideration.

Chris
 
Old conversation but I am new to this process. So, if I understand this correctly, you cannot receive your VA disability and medical retirement pay at the same time?

I am a TPU member with 33+ years, currently have 100% VA rating, beginning the MEB process.

I was under the impression if your VA rating was 50% or greater there was no recoupment of retired pay. I see now medical-retired pay looked at differently than ordinary retired pay.

I have re-read information on DFAS' webpage and the post I am replying to...this is what I think it says:

Reservist retiring under Chapt 61 (medical disability) is not eligible to receive both the immediate retired pay and VA disability compensation. Once the Reservist is eligible for retired pay (normally age 60) they will begin to receive both their retired pay and VA compensation, following the %50 or more rule. So the only financial benefit from medical disability retirement is the difference in retired pay over the VA payment, until reaching age 60...I think. So if my VA compensation is $3800 right now (100%) but my medical disability retired pay would be $5000, I would be getting an overall increase of $1200 per month.

Is military medical retired pay tax free? That could be another consideration.

Chris
Medical retirement is only tax free if one or more unfitting conditions is designated as combat related by the PEB. However, there is one more benefit. Chapter 61 retirees can qualify for CRSC which acts just like CRDP as it restores the VA offset with a bonus being CRSC is exempt from federal taxes. My wife was medically retired at 17 years AFS with just over 20 good years. She qualified for 80% CRSC and between the VA compensation, the remaining amount paid to her via chapter 61 pension & her CRSC she gets the same as if she was receiving CRDP. + her earned longevity non regular retirement (Reserver Retirement) She joined at age 17 so if it wasn't for CRSC she would have had to wait 20+ for CRDP to kick in to utilize her earned non regular retirement and CRDP instead of her Chapter 61 retirement.
 
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