CRDP calculations for Reserve/National Guard

T

Terry Hawn

PEB Forum Regular Member
Here is my situation and understanding for DRDP calculations. I have currently been approved for CRDP and awaiting word from DFAS (approval letter from HRC sent to DFAS 3 months ago) but there is a lot of confusion on the issue and how amounts are calculated. Here is what I figure based on my readings. Please give guidance and cite appropriate information papers and regulations (especially as to where exactly it states that Reserve/National Guard members who were medically retired under Chapter 61 are eligible for CRDP, and much, much more importantly how those calculations are performed and what is the limiting amount for CRDP.

My situation. Combat injury O-5.

Retired - Chaper 61 at 100%

O-5 with a 20 year Army Reserve letter

Retired pay = $6,649 (O-5 maxed out at 75% base pay)

CBO (based on lessor of retirement pay or VA payment) = $3,010.06

1) Net retirement pay =retired pay less va payment = $6649 - $3010.10 =$3,638.90

2) CRDP offset (based on 100% disability) = CBO-CRDP table amount = $3,010.06-$750=$2,260.06

3) CRDP phase in amount = CRDP offset x 100% (post 2014) = $2,260.06 x 100%= $2,260.06

4) CRDP Entitlement = CRDP phase in amount+ CRDP offset = $2,260.06 + $750= $3,010.06***

**********HOWEVER***********

As a reservist, I understand that my CRDP entitlement will be limited to what my reserve retirement would have been at age 60 (or earlier based on early reduction or retirement age).

*******This amount is $2,235.***** (calculated on DFAS website using 3645 points)

My understanding that this amount is what I should get total:

Net retirement = $3,638.90
VA payment = $3010.06
CRDP (limited by reserve amount of retirement) =$2,235.00*** (CRDP amount entitled was $3010.06
but reserve retirement would have
been only $2,235 therefore I am only
entitled to that maximum amount)***
__________ ***That is the big question

Total entitlement $8,883.96



Two questions:

First, did I calculate this correctly?

Second, where are the specific calculation regulations that cover crdp calculation for reservists?
(I have see many examples and inferences as to how it is calculation but need to know what to show DFAS if and when they do it wrong). I need to see where it is authorized and where is says I am limited to what I would have received in reserve retirement. Thanks.
 
There is one regulation for CRDP, FRM volume 7B chapter 64. There are no special rules for reservists, CRDP simply covers retired pay for length of service, regardless of the why you are eligible.

I am very confused by your calculations and cannot understand what led you down that path.

640401. Special Rule for Disability Retirement Members retired for disability under 10 U.S.C., Chapter 61, Sections 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.

Translation: You receive either chapter 61 money or you receive CRDP, not both. That is my understanding.

$6,649 should be your total compensation. You have one of the rare scenarios where chapter 61 is a better deal than CRDP. I'm not 100% confident, but pretty sure.
 
Everyone,
I have the same situation whom is Chapter 61 retiree with 100% VA and 100% Army rating with 17 1/2 years active duty and 39 years Army Reserve with 20 good year retirement letter. Can someone please answer the questions concerning our CRDP?



Terry Hawn said:
Here is my situation and understanding for DRDP calculations. I have currently been approved for CRDP and awaiting word from DFAS (approval letter from HRC sent to DFAS 3 months ago) but there is a lot of confusion on the issue and how amounts are calculated. Here is what I figure based on my readings. Please give guidance and cite appropriate information papers and regulations (especially as to where exactly it states that Reserve/National Guard members who were medically retired under Chapter 61 are eligible for CRDP, and much, much more importantly how those calculations are performed and what is the limiting amount for CRDP.

My situation. Combat injury O-5.

Retired - Chaper 61 at 100%

O-5 with a 20 year Army Reserve letter

Retired pay = $6,649 (O-5 maxed out at 75% base pay)

CBO (based on lessor of retirement pay or VA payment) = $3,010.06

1) Net retirement pay =retired pay less va payment = $6649 - $3010.10 =$3,638.90

2) CRDP offset (based on 100% disability) = CBO-CRDP table amount = $3,010.06-$750=$2,260.06

3) CRDP phase in amount = CRDP offset x 100% (post 2014) = $2,260.06 x 100%= $2,260.06

4) CRDP Entitlement = CRDP phase in amount+ CRDP offset = $2,260.06 + $750= $3,010.06***

**********HOWEVER***********

As a reservist, I understand that my CRDP entitlement will be limited to what my reserve retirement would have been at age 60 (or earlier based on early reduction or retirement age).

*******This amount is $2,235.***** (calculated on DFAS website using 3645 points)

My understanding that this amount is what I should get total:

Net retirement = $3,638.90
VA payment = $3010.06
CRDP (limited by reserve amount of retirement) =$2,235.00*** (CRDP amount entitled was $3010.06
but reserve retirement would have
been only $2,235 therefore I am only
entitled to that maximum amount)***
__________ ***That is the big question

Total entitlement $8,883.96



Two questions:

First, did I calculate this correctly?

Second, where are the specific calculation regulations that cover crdp calculation for reservists?
(I have see many examples and inferences as to how it is calculation but need to know what to show DFAS if and when they do it wrong). I need to see where it is authorized and where is says I am limited to what I would have received in reserve retirement. Thanks.
Click to expand...
 
I used the military .com site for CRDP calcul
scoutCC said:
There is one regulation for CRDP, FRM volume 7B chapter 64. There are no special rules for reservists, CRDP simply covers retired pay for length of service, regardless of the why you are eligible.

I am very confused by your calculations and cannot understand what led you down that path.

640401. Special Rule for Disability Retirement Members retired for disability under 10 U.S.C., Chapter 61, Sections 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.

Translation: You receive either chapter 61 money or you receive CRDP, not both. That is my understanding.

$6,649 should be your total compensation. You have one of the rare scenarios where chapter 61 is a better deal than CRDP. I'm not 100% confident, but pretty sure.
Click to expand...
a
scoutCC said:
There is one regulation for CRDP, FRM volume 7B chapter 64. There are no special rules for reservists, CRDP simply covers retired pay for length of service, regardless of the why you are eligible.

I am very confused by your calculations and cannot understand what led you down that path.

640401. Special Rule for Disability Retirement Members retired for disability under 10 U.S.C., Chapter 61, Sections 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.

Translation: You receive either chapter 61 money or you receive CRDP, not both. That is my understanding.

$6,649 should be your total compensation. You have one of the rare scenarios where chapter 61 is a better deal than CRDP. I'm not 100% confident, but pretty sure.
Click to expand...
 
I used the website Military.com to do their step by step CRDP calculations. I have already been told that I am eligible for CRDP. What I am trying to get a handle on is exactly how chapter 61 reservists figure out the CRDP calculations. My understanding is that reservist can receive a portion of their VA offset (up to their reserve retirement amount) back through CRDP but need a confirmation. Can't count of DFAS doing it correct as my experience with them has been that they will do things incorrectly and assume it is correct.
 
According to the regulation, CRDP kicks in for a reservist under chapter 61 with over 50% disability. Scoutcc, thanks for your input but based on what you said ANYONE who receives a disability rating of over 50% would be getting a better deal under chapter 61 retirement than what they would have gotten retiring under the reserve system (and therefore not eligible for CRDP)......so, why did they make you even eligible for a disability rating of over 50% if that same rating would then make you ineligible? I guess it just doesn't make sense to me. I have been told I am eligible, just trying to get the calculation. My understanding is that I can get concurrent receipt up to the amount I would have received under my reserve retirement. Also, I am very gunshy around DFAS as they always seem to make a definitive decision based on opinion and not fact (I have had two strange DFAS calculation errors overturned after months of going back and forth showing them and their decisions are not based of regulation-hard battle but I won both times....I just know that you can ask a thousand DFAS employees a question and get a thousand different answers).

Thanks again to everyone.
 
The military.com calculation is outdated, because the phase in period is done.

VA compensation reduces the amount of retirement pay you can receive. If that money being reduced was paid due to your 20+ years of service, CRDP will restore it. Dollar for dollar.

You can receive $2,235 from DFAS for your reserve retirement or 6649 for your chapter 61. Either way, the amount you receive will be reduced by the 3010.06 from the VA. CRDP allows the 2,235 from your reserve retirement to be restored. Reserve retirement gives you a total of 5245.06, chapter 61 allows 6649.

There is no need to take anyone's word for it though, FMR volume 7b chapter 64.

Terry Hawn said:
Scoutcc, thanks for your input but based on what you said ANYONE who receives a disability rating of over 50% would be getting a better deal under chapter 61 retirement than what they would have gotten retiring under the reserve system (and therefore not eligible for CRDP)
Click to expand...

Now imagine your chapter 61 was 50% instead of 100%. Now suddenly chapter 61 is worth ~4425. Now the CRDP is worth more. Plus not everyone retires at the O5 pay chart. The numbers change significantly in favor of CRDP on the enlisted pay scales.

Plus retiring under the reserve system is eligible for CRDP. Its based on 20 years of service, not based on chapter 61. The 50% requirement is for a 50% from the VA, not from DoD. CRDP is a huge boon for those not retired under chapter 61 and still have significant service connected disabilities.
 
first off I would like to thank PEB forum and all its members, you guys are better informed than most people who make a living at assisting soldiers! anyways I just completed my MB/PEB and I am searching for an answer again. if you are a Guard soldier and was MED Chap 61 retired and has a 20 year letter can you receive VA and MED retirement? (background includes 70% DOD, 80% VA, all injuries are combat related, placed on permanent disability list) any input helps
 
There are two answers: The clear answer is yes, apply for CRSC.

Unfortunately that simple answer can lead you to some wrong conclusions if you don't examine the numbers. The confusing answer is:

If you have 20 years of service you can pick between your retirement options, either the medical retirement or the length of service retirement. Active duty and reserve retirements are different for length of service, they are the same for medical. Only one can be applied.

Everyone who receives VA pay has their retirement pay reduced by the same amount. Medical retirement, active duty retirement, reserve retirement. If your retirement pay exceeds the VA pay, you will still receive that, the retirement pay isn't eliminated, just reduced.

The reduction can be restored in certain instances. If you have combat related injuries you can apply for CRSC and get some or all of that retirement pay restored. If you have a length of service retirement you can get that pay restored through CRDP.

So you 20 year letter means you can get your normal retirement pay at age 60(ish, possible to reduce age of eligibility) and the VA pay at the same time.

The combat related injuries and disability retirement means you can get the chapter 61 retirement and the VA pay at the same time once your CRSC is approved. CRSC may not restore the entire retirement, there are some caps to it.

The question of which is better, CRDP vs CRSC, chapter 61 vs reserve retirement, is a fairly complex question that hinges on the specifics of your scenario. My instincts say CRSC will be better for you. The nearest active duty base should have a retirement services office that can help you. FMR volume 7b covers all the rules if you want to know for yourself. This is about as good as I can explain it, and I readily admit its close to as clear as mud.
 
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