Chapter 61 Retirement, REDUX/CSB Involved--CRDP


PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Case: Accepted Career Status Bonus (CSB) and REDUX. 20 years active duty. Being considered for Chapter 61 disability retirement. (Info transferred from private message.)

Base Pay E7 w/20 years: $4946 (note: final base pay is not used in the formal computations. The total of the highest 36 months base pay divided by 36 is used for "high three.")

REDUX: The retired pay or retainer pay multiplier for a regular member with a DIEMS on or after August 1, 1986, but before January 1, 2018, who has accepted the CSB and who retires with less than 30 years of creditable service is:
a. The product of 2.5 percent times the member’s years of creditable service;
b. Minus 1 percentage point for each full year of creditable service less than 30; and
c. One twelfth of 1 percentage point for each full month of creditable service less than a full year.

So...with exactly 20 years active duty and have taken REDUX:
20 x 0.025 = 50%
10 years less than 30 x 1 = 10 percentage points reduction
50% minus 10% = 40% REDUX multiplier
If your high three was 4946 (it is not) x 0.40 = 1978.40 REDUX Retired pay
Note: CRDP (if applicable) will be computed using the REDUX formula.

Effective on the first day of the month following the member’s 62nd birthday, DFAS will recompute the retired pay of members who elected the CSB with REDUX to equal the amount of retired pay to which the member would have been entitled on that date if the member had not taken the CSB with REDUX retirement and had no reduction in their multiplier or COLA. Following the restoration discussed in the preceding sentence, DFAS will continue to apply the annual COLA reduction to the member’s retired pay each year throughout the member’s retirement. The annual COLA for the REDUX retirement method is reduced by one percentage point below the increase in the CPI.

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.

Waiver of CSB Recoupment The Secretary of the Military Department concerned may waive, in whole or in part, the required CSB refund if the Secretary determines that recovery would be against equity and good conscience or contrary to the best interests of the United States. A. The Secretary of the Military Department shall waive the required refund if the member:
1. dies, or
2. is separated or retired as a result of a physical disability under 10 U.S.C. Chapter 61,
3. is separated under a Service offer for early retirement (such as TERA (Temporary Early Retirement Authority)) or separation program. B. The Secretary of the Military Department concerned shall not waive repayment if the member's separation is due to misconduct or if waiver of repayment would be inconsistent with other prescribed law, regulation, or policy

Retirement under 10 U.S.C. Chapter 61

Most Chapter 61 disability retirees receive retired pay using the DoD disability multiplier, such as 60% as an example. The retired pay is reduced by the amount of VA compensation received.
If your average high three was 4946 and your DoD disability percentage was 60%, the following would apply if your VA comp was 100% and $3000:

1. 4946 x 0.60 = 2967.60 retired pay
2. Retired pay is reduced by amount of VA compensation. 2967.60 minus 3000 (example) = zero remaining retired pay
3. If qualified for CRDP (e.g., 20 years active duty), the waived retired pay in your case would be restored using the REDUX formula.
4. Your CRDP: If your high three was 4946 (it is not) x 0.40 = 1978.40 REDUX CRDP
5. In this example, the following would be paid:
VA = 3000
DFAS = 1978.40

data-matched-content-ui-type="image_stacked" data-matched-content-rows-num="3" data-matched-content-columns-num="1" data-ad-format="autorelaxed">