CRSC Estimate and Election Benefit

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Papiseed

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I received a letter today that I was approved for 100% CRSC. I have not received any correspondence from DFAS, but after more reading more into CRSC, I am totally confused. Any help on my CRSC payment would be greatly appreciated.

- Retired AD Army in Jul 2018 with 27 years, 0 months
- Retired Grade was E-8
- HAVG Base Amt currently shows as $5535 on DFAS worksheet
- e-RAS Gross Retirement Pay is currently $4578 (before Fed and State Withholdings)
- CRDP is $3946
- VA Rated 100% T&P in Jul 2018
- Receiving VA SMC-K (1)
- No NG or Reserves time
- No REDUX
- No SBP
- Married, No children

What benefit will it be for me elect the rated 100% CRSC vs my current CRDP??

Thanks again for any assistance.

DFAS Worksheet pg 1.JPGDFAS Worksheet pg 2.JPG
 
The biggest benefit is a reduction in your tax burden up to the amount of what you're approved for, i.e., in your case, based on VA for Veteran + Spouse @ 100% = $4,044.91. Since your DOD portion of CRDP (now called CMRP), you will max out at $3946 now being non-taxable (you cannot go higher than what you are eligible for under length of service), + your VA comp = approx $8k, all non-taxable.
 
COL T (R),
Thanks for the quick reply and the detailed explanation of my estimated compensation. After re-reading the HRC webpage CRSC info, I saw that there could be a possibility for back pay. I've included a snip from the letter that I received yesterday. Based on those dates, what can I expect? Again, I appreciate you sharing your expertise and experience with our Veterans.


Capture.JPG
 
Papiseed said:
COL T (R),
Thanks for the quick reply and the detailed explanation of my estimated compensation. After re-reading the HRC webpage CRSC info, I saw that there could be a possibility for back pay. I've included a snip from the letter that I received yesterday. Based on those dates, what can I expect? Again, I appreciate you sharing your expertise and experience with our Veterans.


View attachment 11168
Click to expand...
The whole time you were getting your pension and VA compensation. There would be no backpay for CRSC. In fact, you can't gross more money from CRSC. CRSC when compared to earning a regular retirement + VA compensation is the same amount. The only way to get ahead on CRSC is the tax advantage. If you did go that route you would have to amend tax returns and you can only go back 3 years. That's a lot of work.

CRSC is a benefit for any retiree but it helps the most for chapter 61 Soldiers who have their pension offset by VA compensation. For people in your situation there may be a benefit but its much smaller. It can increase your income since CRSC is exempt from taxes. That benefit typically only works if your income is the same meaning your CRSC compensation matches your VA compensation. If you are in a high tax bracket maybe you can get ahead if your close such as taking CRSC with 10% less.

Since you are 100% for CRSC if that includes all the same SMC's if you have any or other VA income such as Aid & Attendance then it will benefit you. But like I said the pay will be the same. The difference is that CRSC is tax exempt. So it helps but its not a huge windfall. My wife has 17AFS and her pension as an O4 was offset by 4k+ due to VA compensation. Between her VA compensation, leftover amount after offset for her chapter 61 pension she was losing out on $1,600 a month. That is how much the combination of her earned longevity pension and VA compensation she was missing out on. CRSC made her whole by awarding her that $1,600.
 
You are in the exact situation I am in. Retired 8 less time in service. My pension is just tax free. You will have to go back and amend your own tax returns DFAS will not do it for you. Going forward if you elect CRSC you will potentially have more money overall from DFAS as you will no longer pay taxes on your pension. Again DFAS will not go back and give you the taxes you have paid on your concurrent receipt.

when I elected CRSC though they stopped my concurrent receipt and I didn’t get paid any pension while they audited my account. They ended up paying me a large chunk of money after the fact. I’m not sure if this is normal or not but it is something you should probably be aware of if you elect CRSC over concurrent receipt.
 
Papiseed said:
COL T (R),
Thanks for the quick reply and the detailed explanation of my estimated compensation. After re-reading the HRC webpage CRSC info, I saw that there could be a possibility for back pay. I've included a snip from the letter that I received yesterday. Based on those dates, what can I expect? Again, I appreciate you sharing your expertise and experience with our Veterans.


View attachment 11168
Click to expand...
@Provis nailed it, you can file amended tax returns under the Strictland Rule which goes back 3 years. So I guess you can consider that a "quasi" retro pay, albeit a LOT less!
 
Good day all, and happy new year (almost). I have studied alot of the available documents at DFAS and others. There doesn't seem to be simple answer to a question I often get. Please help with the following, I think, simple scenario (Hypothetical):
- Regular retired 20+ years (not medically) = $5000
- 100% VA Disability Rating: $4000
- 90% CRSC rated: $2215

Disregarding associated taxes (state, fica, etc.): I am assuming: $5000-$2215(CRSC)= $2785 Retirement remainder (taxable DFAS), $2215 from CRSC (non taxable DFAS) = $5000 DFAS paycheck, + VA Disability (100%) $4000 = $9000 total (roughly)

I appreciate the help.
 
vetatlegion110 said:
Good day all, and happy new year (almost). I have studied alot of the available documents at DFAS and others. There doesn't seem to be simple answer to a question I often get. Please help with the following, I think, simple scenario (Hypothetical):
- Regular retired 20+ years (not medically) = $5000
- 100% VA Disability Rating: $4000
- 90% CRSC rated: $2215

Disregarding associated taxes (state, fica, etc.): I am assuming: $5000-$2215(CRSC)= $2785 Retirement remainder (taxable DFAS), $2215 from CRSC (non taxable DFAS) = $5000 DFAS paycheck, + VA Disability (100%) $4000 = $9000 total (roughly)

I appreciate the help.
Click to expand...
What's your question though?
If you're asking if this situation is correct, it's better to run then numbers if you know:

Active duty YOS - 20 years
High 3 pay - $5,000
VA 100% - $4,000

if they did 20 years active duty and no medical retirement, they get CRDP
calculation is :
1. YOS X 2.5% X high 3
20 x2.5% x 5,000 = $ 2, 500 (would be their CRDP pay -taxed, other taxes)

If they want CRSC, they would need to "waive" their CRDP pay, and since their VA pay is ($4,000), their whole ($2,500) pay would be "waived"
Looking at the VA 2025 paychart, they would need a CRSC approval around 90% - 100% to get back the $2,500 because it’s MAXED out by your LOS (length of service ) pay.

Let's say they only got approved for 50% CRSC, which pays ($1,100)
LOS ( $2,500) - (crsc $1,100) = $1,400 (residual retired pay)

Since this person did 20 years active duty and qualify for CRDP, the checks they would see are
1. VA 100% pay - $4,000
2. CRSC pay - $1,100 (not taxed)
3. Residual retired pay - $1,400 ( this would be taxed, sbp taken out, can be divided in a divorce too)
 
teey said:
What's your question though?
If you're asking if this situation is correct, it's better to run then numbers if you know:

Active duty YOS - 20 years
High 3 pay - $5,000
VA 100% - $4,000

if they did 20 years active duty and no medical retirement, they get CRDP
calculation is :
1. YOS X 2.5% X high 3
20 x2.5% x 5,000 = $ 2, 500 (would be their CRDP pay -taxed, other taxes)

If they want CRSC, they would need to "waive" their CRDP pay, and since their VA pay is ($4,000), their whole ($2,500) pay would be "waived"
Looking at the VA 2025 paychart, they would need a CRSC approval around 90% - 100% to get back the $2,500 because it’s MAXED out by your LOS (length of service ) pay.

Let's say they only got approved for 50% CRSC, which pays ($1,100)
LOS ( $2,500) - (crsc $1,100) = $1,400 (residual retired pay)

Since this person did 20 years active duty and qualify for CRDP, the checks they would see are
1. VA 100% pay - $4,000
2. CRSC pay - $1,100 (not taxed)
3. Residual retired pay - $1,400 ( this would be taxed, sbp taken out, can be divided in a divorce too)
Click to expand...

Thank you very much. I was on the phone with a DFAS person and could not get straight answer (90 mins or so). Just to clarify: My main question was; even though a vet didn't get his 100% VA Disability pay approved as CRSC (received 90% approval = $2215), he would still get the remainder of his retired pay. Again:
- His current retired paycheck is $5000 from DFAS into the bank.
- His VA disability check is currently $4000.
- Total current pay (CRDP): $9000
---------------------------------------------------------------VS-------------------
- Being that 90% of his VA pay is approved for CRSC: $2215 (real number)
- He would get 3 checks: $5000 - 2215 = $2785 (taxable DFAS) + $2215 (non-taxable DFAS, CRSC) + $4000 VA Disability pay = ~$9250 (swaged tax recalculations.)

- In what scenario would you not take CRSC? Provided you have regular 20 LOS DOD retirement.

Very much appreciate your assistance.
 
There's no such thing as "90% of his VA approve for CRSC". They're two separate thing.
It's either
VA approve you for 90%
then you applied for CRSC and they give you 90%.

The question is what are your real #:
Active duty YOS - 20 years
High 3 pay - $
VA %:
CRSC% -


----------------------
Looking at that screenshot without running any numbers,
it says CRDP pay- $4,180.97
CRSC amount - $2,214.89
Since you CANNOT GET BOTH, it looks like CRDP is better ( you just need to account $4,180, - taxes, sbp, other deductions, is it STILL more than the $2,214). Since CRSC pay IS NOT TAX, you would still have deductions if you have any though
 
teey said:
There's no such thing as "90% of his VA approve for CRSC". They're two separate thing.
It's either
VA approve you for 90%
then you applied for CRSC and they give you 90%.

The question is what are your real #:
Active duty YOS - 20 years
High 3 pay - $
VA %:
CRSC% -


----------------------
Looking at that screenshot without running any numbers,
it says CRDP pay- $4,180.97
CRSC amount - $2,214.89
Since you CANNOT GET BOTH, it looks like CRDP is better ( you just need to account $4,180, - taxes, sbp, other deductions, is it STILL more than the $2,214). Since CRSC pay IS NOT TAX, you would still have deductions if you have any though
Click to expand...

This is correct. I am in this same position but with different numbers. I elect CRSC because numbers on my letter show the EXACT same amounts from CRDP and CRSC. When I elect CRSC more money overall goes into my account because I no longer have a tax burden on the amount. So if the individual you are referring to is already receiving 100 percent VA comp and he can’t get nearly close to what he gets for CRDP as CRSC he shouldn’t switch because he will lose a significant amount of money.
 
teey said:
There's no such thing as "90% of his VA approve for CRSC". They're two separate thing.
It's either
VA approve you for 90%
then you applied for CRSC and they give you 90%.

The question is what are your real #:
Active duty YOS - 20 years
High 3 pay - $
VA %:
CRSC% -


----------------------
Looking at that screenshot without running any numbers,
it says CRDP pay- $4,180.97
CRSC amount - $2,214.89
Since you CANNOT GET BOTH, it looks like CRDP is better ( you just need to account $4,180, - taxes, sbp, other deductions, is it STILL more than the $2,214). Since CRSC pay IS NOT TAX, you would still have deductions if you have any though
Click to expand...

I appreciate the information. The snap shot below are real numbers (100% VA Total and Perm, 100% CRSC, and retirement remainder). What I am trying to figure out, is if your CRSC is lower than 100%, is it worth switching to CRSC.
1735915783441.png
In addition to the above, $4180 is received from the VA.
 
I’m confused how he retired with 20 years. And isn’t receiving more of his retirement pay with CRDP.

What was this persons rank and years of service?
 
vetatlegion110 said:
I appreciate the information. The snap shot below are real numbers (100% VA Total and Perm, 100% CRSC, and retirement remainder). What I am trying to figure out, is if your CRSC is lower than 100%, is it worth switching to CRSC.
View attachment 11205
In addition to the above, $4180 is received from the VA.
Click to expand...

Just do me a favor just, respond to exactly what i'm asking and we will figure it out.

How many years of ACTIVE DUTY-
High 3 pay - $
VA %:
CRSC% -

--------------------------------
your response should be like this (example) here:

How many years of ACTIVE DUTY- 22 years or 8 years or 10 year active, 10 reserve
High 3 pay - $ 6,000
VA %: 100%
CRSC% - 90%

I can't help if the response is not like that.
 
OK. E9 Retired at 30 years Active Duty.
High 3 pay (actual pay check, gross): $6727
VA%: 100% $4180
Approved 90% CRSC: $2215 (not elected yet)
 
vetatlegion110 said:
OK. E9 Retired at 30 years Active Duty.
High 3 pay (actual pay check, gross): $6727
VA%: 100% $4180
Approved 90% CRSC: $2215 (not elected yet)
Click to expand...


okay great...Let's run the numbers with those facts and we'll see how things suppose to look
Active duty years - 30
High 3 years- $6727
VA-100% ( $4180)
CRSC- 90% ( $2215)

1. YOS X 2.5% X high 3
30 x2.5% x $6727 = $5,045.25 (this is your LOS max retirement, this is also the MAX crsc will pay)

$5,045.25 (would be their CRDP pay -taxed, other taxes)
So, If you just stay with CRDP and VA pay, the Checks you should get are
1. Retired Pay - $5,045.25 ( - taxes, -sbp, - allotments, -sitw, etc)
2. VA pay 100% - $4180 [ No taxes, no deductions)

Since you applied for CRSC, then you must "Waive" your retired Pay (5,045.25)....BUT because your retired pay is MORE than your VA pay, you get a residual.
Retired Pay ($5,045.25) - (VA pay- $4,180) = $865 (residual)
**remember, with CRSC, law states, CRSC pay + residual pay CANNOT BE MORE than LOS (LOS pay - $5,045.25)***
LOS ( $5,045.25) - $865 (Residual) = $4,180

So now, to get the $4,180 (which is being "waived" under CRSC), looking at the 2025 VA paychart. You would need 100% CRSC.
So the check you would receive is
1. VA 100% pay - $4,180
2. Dfas residual - $ 865
3. CRSC 100% pay - $4180 ( which would get you back to the $5,045 LOS)
 
Again, thank you for your time.
The scenario above is exactly my situation (3 checks).

My original question still remains; what if you changed the scenario from 100% CRSC, to 90% CRSC?
 
vetatlegion110 said:
Again, thank you for your time.
The scenario above is exactly my situation (3 checks).

My original question still remains; what if you changed the scenario from 100% CRSC, to 90% CRSC?
Click to expand...
Okay so, same situation but instead of 100% CRSC, it’s 90% CRSC. It would look like this


So now, to get the $4,180 (which is being "waived" under CRSC), looking at the 2025 VA paychart. You would need 100% CRSC.

If you got 90% CRSC, which pays ($2,297 for 2025 pay chart). You would get:
1. VA 100% pay - $4,180
2. Dfas residual - $ 865
3. CRSC 90% pay - $2,297

($5,045 LOS - $2,297 crsc pay) = $2,748 - $865 ( residual you already getting)= $1,883 . you would not get $1,883 & would just be “pending” until one day you get 100% crsc. If you don’t believe you will EVER get 100% crsc then you got a decision to make.
 
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