Chapter 61 (26+ years) – Does CRSC restore only the remaining VA waiver?

[CGAR909]

Subject: Chapter 61 (26+ years) – Does CRSC restore only the remaining VA waiver?

I'm a Chapter 61 Active-Duty Army retiree with 26 years 3 months active duty, retired under 26 USC §104 (combat-related, tax-free retired pay).

I have been advised by many to apply for CRSC but I am not sure, not trying to be greedy but if it could potentially restore the VA Waiver of $1,122 a month that would be something.

My current RAS shows: Picture of actual RAS below.

• Gross retired pay: $8,588
• VA compensation: $4,298.04 (100% P&T VA) MEB/PEB DOD(Army) Rated 90% (70% PTSD and 60% Pulmonary Sarcoidosis) Combat Coded V1/V3
• VA waiver: $1,122
• CRDP entitlement (RAS remarks): $3,176.04
• SBP: $558.26

I'm applying for CRSC. Rated 60% for Pulmonary Sarcoidosis (PACT Act condition - 5 deployments on burn pit registry) and 70% for PTSD by PEB, coded as direct combat related, I know Army HRC might not agree.

My question: Since CRDP already appears to restore $3,176.04 of my VA offset, would an approved CRSC election:

1. Replace the existing $3,176.04 CRDP payment, or
2. Restore the remaining $1,122 VA waiver that is still reducing my retired pay?
   3. My intuition is that my CRSC max benefit would be $1,122 effectively eliminating the VA Waiver.

Has anyone with a similar 26+ year Chapter 61 retirement seen how DFAS actually calculates this?

Here is my RAS and Remarks. No PII included.

 

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Subject: Chapter 61 (26+ years) – Does CRSC restore only the remaining VA waiver?

I'm in a similar boat and have the exact same question with slightly different amouns.

Good luck getting an answer. There are so few of us (active duty, 20+YOS, CH61 with more retirement pay based on YOS not DOD disability pay, 100% VA pay with CRDP restoration offset, and wanting to understand the impact of CRSC on the taxable portion remaining.) that you will probably not find someone that can give you a straight answer. If you find an answer, please post it back here.

 

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[iamthewalrus016]

I’m in a similar situation. Chapter 61 with 21 years. DOD gave me 70 percent. I had a waiver on CRDP. I switched to CRSC which is still the same amount as CRDP I just don’t have any taxes taken out. CRSC is going to be limited to what CRDP pays in almost every situation you just won’t be paying taxes on it. In that scenario CRDP is most likely already tax free due to your PEB results. This makes CRSC moot unless you are divorced or about to get divorced or will be divorced.

The only way you will get the amount of retirement pay based on your DOD disability percentage is if they change the law. Even the Richard Star Act may not change this. There is the possibility that law may allow chapter 61 retirees with over 20 years of service to revive the disability percentage pay instead of longevity. Highly unlikely though.

 

[CGAR909]

I'm in a similar boat and have the exact same question with slightly different amouns.

Good luck getting an answer. There are so few of us (active duty, 20+YOS, CH61 with more retirement pay based on YOS not DOD disability pay, 100% VA pay with CRDP restoration offset, and wanting to understand the impact of CRSC on the taxable portion remaining.) that you will probably not find someone that can give you a straight answer. If you find an answer, please post it back here.View attachment 12823

I think the only way for me to truly find out is to apply. Even if it does not change the numbers, it would be good to have CRSC approval for potential future legislation, I also think CRSC approved disabilities might have more protection than just service-connected disabilities. I am close to submitting my CRSC application, I will report back in 6 months or so. Thanks for your reply and sharing.

 

[CGAR909]

I’m in a similar situation. Chapter 61 with 21 years. DOD gave me 70 percent. I had a waiver on CRDP. I switched to CRSC which is still the same amount as CRDP I just don’t have any taxes taken out. CRSC is going to be limited to what CRDP pays in almost every situation you just won’t be paying taxes on it. In that scenario CRDP is most likely already tax free due to your PEB results. This makes CRSC moot unless you are divorced or about to get divorced or will be divorced.

The only way you will get the amount of retirement pay based on your DOD disability percentage is if they change the law. Even the Richard Star Act may not change this. There is the possibility that law may allow chapter 61 retirees with over 20 years of service to revive the disability percentage pay instead of longevity. Highly unlikely though.

I really appreciate your insightful reply. I will submit my application for the very reasons you stated about future legislation. I also think CRSC approved disabilities could have more protections that just service connected.