CRDP--23 years AD and Has Chapter 61 Retirement

R

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Case.
100% VA
$3684
Married, 1 child over 18, 1 child under 18.
PLUS
80% DOD
Active 23 yos at $5700 (high 3 yrs average base pay).
DOD percentage is taxed?
Click to expand...

Estimate.

1. 5700 x 0.75 = 4275 retired pay
2. 4275 minus 3684 = 591 residual retired pay
3. 23 years active duty x 0.025 = 57.5 % longevity multiplier
4. 5700 x 0.575 = 3277.50 longevity portion of retired pay
5. 3277.50 minus 591 residual = 2686.50 CRDP
6. DFAS will pay:
--591 residual
--2686.50 CRDP
Total: 3277.50

7. VA pays: 3684

This is based on your info, including an inference you qualify for a regular retirement and CRDP

Ron
 
USN_1997 said:
What is your actual rank?
Click to expand...
The case came from a private message; that is the reason a name is not shown.

My guess is that he is pay grade E-8, but that does not impact the formula. It does affect the average high three base pay.

I never ask for the rank when I compute retired pay or CRSC. Just the high three, active duty years, and other info shown in the computation is needed.

Regards,
Ron
 
USN_1997 said:
Oh, ok. Gotcha. As long as the formula stays the same...
Click to expand...
I thought that was the reason for your question (i.e. sameness)... It was a reasonable question to ask.

Regards,
Ron
 
Also, it is important to note that he qualified for CRDP due to having 20 years+ AD and a VA rating of 50% or more.

Ron
 
Yep, I'm actually at 23 YOS - that is why the post caught my attention. I'm sure I'll be well over 50% VA too...
 
Then the case posted is perfect for you.

I retired a lifetime ago with 22 years 9 months AD and 25 years for base pay purposes. Final pay was the standard then, not high-three.

Drafted in 1966.

Ron
 
I will be officially medically retired on 10 March 2020. 36 years of reserve service high 3 is 6200.00. VA%=80%. DOD%=50%. Not sure if you need my retirement points (4050 ) since disability will be higher.I'm married and all children are adults. Can you please break it down like the previous figures above. Thanks
 
Mattsman54 said:
I will be officially medically retired on 10 March 2020. 36 years of reserve service high 3 is 6200.00. VA%=80%. DOD%=50%. Not sure if you need my retirement points (4050 ) since disability will be higher.I'm married and all children are adults. Can you please break it down like the previous figures above. Thanks
Click to expand...
Hello,

It is important to note that the original case in this thread was for an individual who had completed 20 years active duty. The examples below use the DoD disability multiplier for the retired pay since the longevity multiplier would be 28.13%.

Based on the info you provided and assuming you meet the age requirement for reserve retirement and have 20 good years:

1. High three average base pay 6200 x 0.50 = 3100 DoD disability retired pay
2. VA compensation @ 80% with spouse = 1657.80
3. 3100 retired pay minus 1657.80 = 1442.20 residual retired pay
4. Your active duty equivalent was needed. 4050/360 = 11.25 active duty equivalent based on info available
5. 11.25 x 0.025 = 28.13% longevity multiplier
6. 6200 x 0.2813 = 1744.06 longevity portion of retired pay
7. If you currently meet the age requirement for reserve retirement, you are eligible for CRDP based on the info provided.
8. Maximum amount of CRDP: 1744.06 minus residual retired pay of 1442.20 = 301.86 CRDP
9. DFAS will pay the following if you are presently eligible for reserve retirement;
--1442.20 residual retired pay PLUS 301.86 CRDP = 1744.06
10. The VA will pay 1657.80

Conversely.

If you do not currently meet the age requirement for reserve retirement.
1. High three average base pay 6200 x 0.50 = 3100 DoD disability retired pay
2. VA compensation @ 80% with spouse = 1657.80
3. 3100 retired pay minus 1657.80 = 1442.20 residual retired pay
4. You will receive 1442.20 from DFAS
and
from the VA, 1657.80

Edited to Add, computation for reserve retirement in this case, using the longevity multiplier. This scenario would not occur until the reserve age requirement is met. There is not a Chapter 61 disability retirement in this scenario.

1. High three average base pay 6200 x 0.2813 = 1744.06 reserve retired pay
2. 1744.06 reserve retired pay minus 1657.80 VA comp amount = 86.26 residual retirement pay
3. VA compensation @ 80% with spouse = 1657.80
4. 1744.06 maximum CRDP minus 86.26 residual retired pay = 1657.80 CRDP
5. DFAS would pay: 86.26 + 1657.80 = 1744.06 which is the longevity amount
6. The VA would pay 1657.80

Note: The DFAS RAS might not show all these computations; however, the info provided above shows how the gross amounts payable are determined.
The computations are based on the info you provided.

Ron
 
I am glad we could help. Take care...

Ron
 
RonG said:
I am glad we could help. Take care...

Ron
Click to expand...
I see that all your computations are always long form and I assume that is so the users can see all the steps....

But my question is in short form, is there ever a reason to not just skip the "DoD rating" when you can not receive more than longevity pay? ie: why even bother with DoD rating and the residual equations when the end will result will be ---- longevity pay + VA pay ?

Is there a scenario where you could receive more than longevity pay therefore you always need to do the long fo
 
heathro1281 said:
I see that all your computations are always long form and I assume that is so the users can see all the steps....

But my question is in short form, is there ever a reason to not just skip the "DoD rating" when you can not receive more than longevity pay? ie: why even bother with DoD rating and the residual equations when the end will result will be ---- longevity pay + VA pay ?

Is there a scenario where you could receive more than longevity pay therefore you always need to do the long fo
Click to expand...
Hello,

Edited to add: Using the DoD rating often results in showing residual retired pay. The residual will impact the amount classified as CRDP or CRSC.

CRDP will never be more than the longevity portion of retired pay. The same is true for CRSC.

Two reasons for the long form:
--Show the retiree the steps/forumlas involved
--But..primarily, because I work them in real time. In other words, I am not using Excel to compute the estimates. They are being shown as developed.

The result is not always longevity pay plus VA compensation. It could be less in certain cases, although a CRDP comp would not include that type of case...just off the top of my head.. Longevity is a ceiling. And...when there is residual retired pay...the combination of residual pay plus CRDP cannot exceed the longevity portion of retired pay.

Additionally, I suspect some retirees are not familiar with the computation of longevity portion of retired pay.

Another thought, although not related to your questions, it is my opinion that many of the requests for estimates include incorrect base info for high three, active duty years, active duty equivalent years, etc. It is not done on purpose, but it happens often enough to mention it. Additionally, there are possibly other cases having faulty info that go undetected. The base info is provided by the retiree and there are few avenues to check it for accuracy.

Ron
 
So, basically, A chapter 61 retiree USAR/NG will lose retirement pay in order to collect CRDP?
The longevity pay is what I would receive in today times if I currently met the age 59 1/2 or 60.
 
Sullysull48 said:
So, basically, A chapter 61 retiree USAR/NG will lose retirement pay in order to collect CRDP?
The longevity pay is what I would receive in today times if I currently met the age 59 1/2 or 60.
Click to expand...

CRDP restores only the longevity portion of retire pay...none of the DoD disability portion.

Of course I know you, but I do not remember the specifics of your case.

An example:


A reservist can continue to be paid at the higher DoD disability percentage upon the approval of the Reserve Retirement. It is reduced by the amount of VA compensation.
Occasionally, there is residual retired pay (left over from the reduction) that the retiree keeps.

Example for CRDP, reservist having disability multiplier:
CH 61 multiplier retired pay= 3000
VA compensation= 2000
Reduction: (3000-2000) = 1000 residual retired pay
Longevity portion of retired pay = 1050
The combination of CRDP and residual retired pay cannot exceed the longevity portion of retired pay, 1050 in this example.
Maximum from DFAS = 1050
Maximum minus 1000 residual = 50 CRDP

DFAS in the quickly put together example would pay:
Residual = 1000
CRDP: 50
TOTAL = 1050 which is the longevity portion of retired pay in this example.

Ron
 
You must log in or register to reply here.
Top