CRSC approved; Ron please help calculate

Baioux66

Registered Member
Retired in 2014 under the CRDP.
20yrs AD Regular retirement @50%.
$5000×.50= $2500 monthly
VA 100%p/t with wife and child= $3300 monthly
Received CRSC rating @90% today.

Ron, what will my projected outcome be under the CRSC pay scale.

Thank You
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Retired in 2014 under the CRDP.
20yrs AD Regular retirement @50%.
$5000×.50= $2500 monthly
VA 100%p/t with wife and child= $3300 monthly
Received CRSC rating @90% today.
Ron, what will my projected outcome be under the CRSC pay scale.
The following pertains to a regular retirement (i.e., 20 years AD):

  1. With CRDP you receive all your retired pay + VA comp = 5800
  2. With CRSC, this occurs:
—2500 retired pay is all waived due to VA offset of 3300.
—CRSC @ 90% with spouse & child under 18 = $2,098.62
—2098.62 + 3300 = 5398.62 CRSC + VA comp TOTAL
—You lose 401.38 by accepting CRSC.

However, if you have other taxable income such as from employment, the tax benefit of taking CRSC, even though it is less,
might be advantageous to you. I did that for several years when I was @ 90% CRSC. You would have to perform your own tax computations to make that determination.

Ron
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Thank you so much....That is what i was thinking, but did not know if the remaining $400 was taxed.
CRDP is taxable; CRSC is non-taxable.

The ~400 not replaced by CRSC just disappears...it is not taxed because it does not exist. It was waived (lost) via VA offset.

Ron
 

Baioux66

Registered Member
Ok, good to know...the wife and i have to sit down with our financial advisor and see what is better for us. Currently paying about $8k in taxes yearly even after selecting the married with 0 tax option so this just might be the answer to future savings. Overall this is a good problem to have...again thanks for all you do to help us veterans. Happy Holidays.


v/r

Sam
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Ok, good to know...the wife and i have to sit down with our financial advisor and see what is better for us. Currently paying about $8k in taxes yearly even after selecting the married with 0 tax option so this just might be the answer to future savings. Overall this is a good problem to have...again thanks for all you do to help us veterans. Happy Holidays.
v/r
Sam
Obviously, your annual taxable income would be reduced by $30,000 at a cost of $4816.56 (loss of retired pay). Your overall tax situation very well might be improved by accepting CRSC since you are paying $8K for taxes at the end of each year. Visiting with your financial advisor is an excellent plan.

Good luck,
Ron
 
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navyguy_1993

Registered Member
Retired in 2014 under the CRDP.
20yrs AD Regular retirement @50%.
$5000×.50= $2500 monthly
VA 100%p/t with wife and child= $3300 monthly
Received CRSC rating @90% today.

Ron, what will my projected outcome be under the CRSC pay scale.

Thank You
Hello Baioux66,

If it is not too much to ask, what branch of service were you in? If it is Navy, on what date did you submit your application? I ask because I am retired Navy and I submitted my application via email about two weeks ago. I have since confirmed via telephone that CRSC Navy has indeed received my application package.

Thank you in advance for your response,

John
 

Baioux66

Registered Member
John, i am retired Army. I submitted for crsc back in May 2018 and was told it would take about 12 months....I guess I was lucky seeing my case was completed early December 2018.

Good Luck,

Sam
 

navyguy_1993

Registered Member
John, i am retired Army. I submitted for crsc back in May 2018 and was told it would take about 12 months....I guess I was lucky seeing my case was completed early December 2018.

Good Luck,

Sam
Thanks, Sam! Congratulations on making it to the CRSC finish line.
 

Alterword

Registered Member
Ron, I've been checking out these forums for awhile and would really appreciate some help estimating my CRSC.

Retired Army CPT - 7 yrs 8 months AD, Medical Retirement
High 3: $5793
VA Waiver: $2250
Married with 3 children under 18
70% DoD, 90% VA
CRSC Approved at 70%

Thanks in advance, Ron!
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Ron, I've been checking out these forums for awhile and would really appreciate some help estimating my CRSC.

Retired Army CPT - 7 yrs 8 months AD, Medical Retirement
High 3: $5793
VA Waiver: $2250
Married with 3 children under 18
70% DoD, 90% VA
CRSC Approved at 70%
Monthly Gross Pay is $3845
Thanks in advance, Ron!
1. H-3 5793 x 70% DoD = 4055.10 retired pay. You say 3845 gross DoD retired pay. 3845/ 0.70= 5492.86 high three. One of the figures you provided seems to be wrong. Please clarify.

2. I can go no further without a clarification; this affects the entire computation. Either your high three is 5793 or 5492.86 based on info provided. I suspect it is 5492.86 IF your gross retired pay is 3845.

3. Based on limited info, your CRSC will the amount of your longevity portion of retired pay reduced by any residual retired pay after waiver.

4. 7.67 years x 0.025 = 19.18% multiplier

5. High three x 0.1918 = dollar amount of longevity portion of retired pay

6. Item 5 result will be compared to CRSC @70% w/spouse & 3 children u/18 rate in VA comp tables. The lesser will be CRSC amount.

7. The CRSC amount determined (via comparison) at item 6 will be reduced by any residual retired pay.
Ron
 
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Alterword

Registered Member
Hey Ron thanks for getting back to me...

My RAS says Gross Pay is $3845, so let's go with $5492 High 3

Thanks,

Dan
 

Alterword

Registered Member
Hey Ron,

I followed the calculations using the H-3 of $5492, and came up with $1053 at item 6.

However, I don't quite understand item 6 being reduced by residual retirement pay.

Can you help me finish this off?

Thank you, Sir...

v/r

Dan
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Hey Ron,
I followed the calculations using the H-3 of $5492, and came up with $1053 at item 6.
However, I don't quite understand item 6 being reduced by residual retirement pay.
Can you help me finish this off?
Dan,

  1. 3845 gross DoD retired pay. 3845/ 0.70= ~5492.86 high three.
  2. 3845 gross retired pay minus 2250 VA comp = 1595 residual retired pay (this reduces CRSC)
  3. 7.67 years x 0.025 = 19.18% multiplier
  4. 5492 h-3 x 0.1918 = ~1053 dollar amount of longevity portion of retired pay
  5. CRSC @ 70% is more than longevity, so the lesser, 1053 is the computed CRSC amount
  6. Per current law, the CRSC plus residual retired pay cannot exceed the longevity portion--your residual retired itself is more than the longevity so there is no CRSC payable.1053 longevity portion of retired pay/CRSC minus 1595 residual retired pay = zero CRSC payable
Each month you should receive 2250 VA comp + 1595 residual retired pay = 3845


Ron
 

Alterword

Registered Member
Hey Ron,

Two follow-up questions for you, Sir:

1. Would there ever be a scenario for me where I will receive a positive amount for the CRSC, as opposed to my current No Pay Due situation? For instance, If my VA rating moves from 90% to 100%? Or can I just count on never receiving anything?

2. Will a "CRSC Pay Statement" still post to my MyPay account even though I will receive $0?

Thanks in advance

v/r

Dan
 

RonG

Staff Member
PEB Forum Veteran
Registered Member
Hey Ron,

Two follow-up questions for you, Sir:

1. Would there ever be a scenario for me where I will receive a positive amount for the CRSC, as opposed to my current No Pay Due situation? For instance, If my VA rating moves from 90% to 100%? Or can I just count on never receiving anything?

2. Will a "CRSC Pay Statement" still post to my MyPay account even though I will receive $0?

Thanks in advance

v/r

Dan
Actually, you are doing better than most, since you have a large amount of residual retired pay. Most do not have residual retired pay. Your residual retired pay is >$500 than CRSC.

For you (your case) to receive any CRSC, VA offset (amount of VA comp) would have to increase which also decreases residual retired pay. This would be tantamount to switching money from one hand to the other. Your VA comp would have to increase substantially for you to receive CRSC.

Your maximum CRSC is 1053 and you now receive 1595 residual retired pay. By law, residual retired pay reduces CRSC. IF all your retired pay was waived, you would receive 1053 CRSC + new VA amount. Now, you will receive 2250 VA comp + 1595 residual retired pay = 3845
————

Current computation:
  1. 3845 gross DoD retired pay. 3845/ 0.70= ~5492.86 high three.
  2. 3845 gross retired pay minus 2250 VA comp = 1595 residual retired pay (this reduces CRSC)
  3. 7.67 years x 0.025 = 19.18% multiplier
  4. 5492 h-3 x 0.1918 = ~1053 dollar amount of longevity portion of retired pay
  5. CRSC @ 70% is more than longevity, so the lesser, 1053 is the computed CRSC amount
  6. Per current law, the CRSC plus residual retired pay cannot exceed the longevity portion--your residual retired itself is more than the longevity so there is no CRSC payable.1053 longevity portion of retired pay/CRSC minus 1595 residual retired pay = zero CRSC payable
Each month you should receive 2250 VA comp + 1595 residual retired pay = 3845

Ron
added: You might have a CRSC statement to show the reduction via residual retired pay. Please let us know if that occurs.
 

Alterword

Registered Member
Ron,

Tracking all....and I will make sure to respond if a Pay Statement posts.

Thanks again, and Happy New Year!

v/r

Dan
 
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