CRSC AND VA WAIVERS

paulfl

PEB Forum Regular Member
Registered Member
Hello RonG! Thanks for all of your HELP, you ROCK considering how much help and advice you give to the forum! Please continue your work and service. Thanks for all you do!

I am 100 P&T from the VA and 100% P&T for the U.S. Army.
I am also unemployable per VA so I'm receiving $3887.00.
I am rated 100% for my TBI and 30% for Post Concussion Syndrome; these are the 2 injuries that I can be approved for CRSC for.

1st Question: My question is, is it worth for me to apply seeing that I will have to waive my VA pay to receive the CRSC pay. I'm thinking I will get approved but will receive no monetary benefit based off of the forums. Below I have included some information that may help.


Estimated Retired Pay: $2832.53
Date placed on retired list: 17 October 2018
Retired grade of rank: E-6
Percentage of disability: 100% DOB:
Retirement type and allotment code: Permanent/12
Component: USAR Authority: AR 635-40 Statute authorizing retirement: 1204
Other eligible laws: Not Applicable
Disability retirement: 08 Year(s), 04 Month(s), 08 Day(s)
Basic Pay: 13 Year(s), 05 Month(s), 20 Day(s)
Completed over 4 years of active service as Enl or WO: N/A
Disability is based on injury or disease received in LOD as a direct result of Armed Conflict or caused by an instrumentality of war and incurred in the LOD during a war period as defined by law: NO
Member of an armed force on 24 Sep 75: NO
Disability resulted from a combat related injury as defined in 26 USC 104: YES
Number of Dependents: 4

THANK YOU SO MUCH RONG FOR ALL YOUR EXCELLENT HELP! I'M SURE YOU GET MILLIONS OF QUESTIONS. HOPE YOU FIND THE TIME FOR THIS ONE!
 
Preliminary Statement.

You do not waive your VA compensation to receive CRSC. No one does.

Your retired pay is reduced (waived) by the amount of VA compensation you receive. If you are currently receiving VA compensation , you agreed to that waiver (which is smart in my opinion).

I will provide an estimate in a few minutes.

Ron
 
Hello,

Case.

—unemployable per VA so I'm receiving $3887.00.
—Estimated Retired Pay: $2832.53
—Percentage of disability: 100%
—Disability retirement: 08 Year(s), 04 Month(s)

Estimate.

You guessed at your gross retirement pay. If that figure is incorrect, this estimate will be inaccurate.
Your gross retired pay is shown on your DFAS RAS on MyPay. At least one is produced each year for those whose entire retirement pay is waived.

1. 2832.53/0.75 = 3776.71 high three
2. 8 years 4 mo is 8.333 AD years x 0.025 = 20.83% longevity multiplier
3. 3776.71 x 0.2083 = 786.69 longevity portion of retired pay
4. Your CRSC will be the lesser of 786.69
OR
the amount associated with the approved CRSC percentage approved by your service. The amounts are found in the VA compensation tables at Veterans Compensation Benefits Rate Tables - Effective 12/1/18 - Compensation <—-LINK

Note: $786.69 is likely the lesser.
You also continue to receive VA compensation.

Good luck,


Ron
 
I just applied for CRSC but received the attached letter in the mail regarding it. What exactly is the VA Waiver then they are requesting suppose to waive sir?
 

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I just applied for CRSC but received the attached letter in the mail regarding it. What exactly is the VA Waiver then they are requesting suppose to waive sir?
Hello again,

Earlier you said, “unemployable per VA so I'm receiving $3887.00.” That statement indicated to me that you are receiving 3887.00 from the VA .

The VA would not pay VA compensation unless you waived your retired pay, although I suppose they are capable of making an error.

Are you receiving your retired pay from DFAS and also VA compensation @ 3887.00?

Ron
 
No sir...I am not receiving any retired pay from DFAS, only VA compensation to include Unemployability pay for a total of 3887.00
 
Would it be more beneficial for me to waive the retirement pay to continue receiving the VA compensation. Then reapply for CRSC. Thanks for your direction...I'm understanding the situation clearer now that you are explaining it.
 
This is an odd case. You took the appropriate action by agreeing to accept VA compensation in lieu of DFAS retired pay (just as I and thousands of others have done).

The VA would not pay VA comp without the waiver. Going on a tangent here, in most cases the DFAS does not receive a hard copy of the waiver document; the VA electronically shows DFAS whether a waiver is in place. Somehow, the records do not accurately show that you did elect to receive VA comp OR the CRSC board has misinterpreted the info.

BLUF: You are being paid correctly based on the info you shared.

You said, “Would it be more beneficial for me to waive the retirement pay to continue receiving the VA compensation. Then reapply for CRSC. Thanks for your direction...I'm understanding the situation clearer now that you are explaining it.” Answer: YES. Complete the form and return it to your VA Regional Office per their instructions. Keep a copy of everything. You might want to ask a veterans service officer (with VFW, American Legion, DAV, county) to help you.

After they have receive the document resubmit your CRSC application packet if that is part of the instructions.

I have been doing this for ~10 years and never saw a case exactly like yours (waiver was actually in place, but ignored).

Please return with updates.

Ron
 
Note: The forms can be confusing. Recommend you ensure you agree to accept VA compensation. That results in the waiver.

Good luck,
Ron
 
Your first claim for VA compensation would have the waiver included in one section of the claim form.

I believe this is the current version used [excerpt]
25. RETIRED STATUS
RETIRED PERMANENT DISABILITY RETIRED LIST TEMPORARY DISABILITY RETIRED LIST

IMPORTANT INFORMATION ON MILITARY RETIRED PAY (Includes all Uniformed Services Retired Pay):
Submission of this application constitutes a waiver of military retired pay in an amount equal to VA compensation awarded, if you are entitled to both benefits. Your retired pay may be reduced by the amount of VA compensation awarded. Receipt of the full amount of military retired pay and VA compensation at the same time may result in an overpayment, which may be subject to collection. If you qualify for concurrent receipt of VA compensation and military retired pay, the waiver of retired pay will not apply. If you do not want to waive any retired pay to receive VA compensation, you should check the box in Item 26. Note that if you check the box in Item 26, you will not receive VA compensation, if granted. If you are currently in receipt of VA compensation and you check the box in Item 26, your VA compensation will be terminated, if you are also eligible for military retired pay.
IMPORTANT: VA COMPENSATION PAY IS NON-TAXABLE. THEREFORE, VA COMPENSATION PAY MAY BE THE GREATER BENEFIT.
[box is here]26. Do NOT pay me VA compensation. I do NOT want to receive VA compensation in lieu of retired pay.

The correct action for those who want VA compensation is to NOT CHECK box 26.

Ron
 
Hello @paulfl ,

Congratulations on your CRSC award. I think we last discussed this matter during September 2019. I would prefer to provide the estimate in this forum rather than reply to an email.

If you would like an estimate of what your current CRSC will be, please provide the info shown below (example provided).

Example of information necessary for a CRSC estimate:
--My average high 3 base pay is $3872. ( Note: The gross retired pay from the DFAS RAS could have been provided; it is preferred because it includes COLA increases. Please mention which source you are using.)
--I was approved for 50% DOD for my medical retirement.
-- I have 18 years and 4 months and 15 days of active duty. (Note: Active duty equivalent is necessary for reservists/NG.)
--I receive 100% VA which is $3799.00 and it includes . I have a wife and 5 kids who are under 18 years. (Note: All this info is necessary.)
--Approved 60% CRSC-- wife and 5 kids who are under 18 years.
--I don’t qualify for any other retirement and I did not transition to the Blended Retirement System.
--I did not receive a REDUX payment.

Again, the estimate will only show is due for a current month.

Regards,
Ron
 
Okay please see below. Thank you for your help.

High 3: $3776.70

Estimated Retired Pay: $2757.00 (Retrieved from DFAS RAS)Screenshots_2021-04-05-23-44-49.png

DOD Medical Retirement: 100%

Retired grade of rank: E-6

Percentage of disability: 100%

VA Pay & Rating: $3964.00, 100% including unemployability, 3 kids under 18 and 1 spouse

Number of Dependents: 4

CRSC Approval: 100%

Disability retirement: 8 Years, 4 Months, 8 Days

Basic Pay: 13 Years, 5 Months, 20 Days

Reserve Retirement Points: 3067

I don’t qualify for any other retirement and I did not transition to the Blended Retirement System.

I did not receive a REDUX payment
 

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Okay please see below. Thank you for your help.

High 3: $3776.70

Estimated Retired Pay: $2757.00 (Retrieved from DFAS RAS)View attachment 6577
DOD Medical Retirement: 100%
Retired grade of rank: E-6
Percentage of disability: 100%
VA Pay & Rating: $3964.00, 100% including unemployability, 3 kids under 18 and 1 spouse
Number of Dependents: 4
CRSC Approval: 100%
Disability retirement: 8 Years, 4 Months, 8 Days
Basic Pay: 13 Years, 5 Months, 20 Days
Reserve Retirement Points: 3067
I don’t qualify for any other retirement and I did not transition to the Blended Retirement System.
I did not receive a REDUX payment
Hello @paulfl

1. 2757/75% = 3676 high three
2. Retired pay 2757 minus 4000.09 VA comp = zero remaining retired pay
3. 8.333 AD years x 2.5% = 20.83% Longevity multiplier
4. 3676 x 20.83% = 765.71 longevity portion of retired pay and also the maximum current CRSC.
5. The 765.71 will increase only through COLA increases.

Comment about prior years: The CRSC for the years when the approved CRSC percentage equated to an amount less than 765.71 that amount would become the CRSC for that period. Each would have to be computed separately (by CRSC% approved and using that percentage found in the VA comp tables for that era. Also, the high three would be less in those years since a COLA increase usually occurs 1 October in most years. That affects the longevity amount.

Past rates for VA compensation (and CRSC percentage amounts) are at the bottom of this link:
2021 Veterans disability compensation rates | Veterans Affairs <---LINK

Ron
 
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Okay so it is spot on with the estimate you gave from before that's awesome. Thank you for your help! It is greatly appreciated!
 
Okay so it is spot on with the estimate you gave from before that's awesome. Thank you for your help! It is greatly appreciated!
I was happy to learn your overall case was approved.

Take care,
Ron
 
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