Crsc Help
- Thread starter mgreening
- Start date
Here is a collection of CRSC information that could be helpful:
Contemporary CRSC Information--Also See Update at Bottom of this Resource Page <—-LINK
Ron
Contemporary CRSC Information--Also See Update at Bottom of this Resource Page <—-LINK
Ron
Hello @mgreening
Also see : DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty <—-LINK
Explanation of retired pay and impact of VA compensation.
DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty
Each Chapter 61 disability retiree will receive two separate ratings.
--DoD rating for only those disabilities that make the member unfit for continued service. The DFAS and USCG pays military retired pay.
--VA rating for ALL service-connected disabilities. The VA pays VA compensation.
The retiree has an option to select VA compensation and waive retired pay in an amount equal to the amount of VA compensation. I have never seen one case where it was better to decline VA compensation, irrespective of the VA percentage being 10%, 20%, or 100% (using only a few examples). If the amount of VA compensation is less than the amount of the DoD retired pay, the retiree gets to keep the amount in excess of the VA compensation amount (known as residual retired pay) paid by DFAS or USCG, in addition to their VA compensation.
In no case is the amount of VA compensation reduced, in the context of this discussion, unless the retiree refuses to accept VA compensation.
The myth that the retiree receives the higher of VA compensation or DoD Retired Pay, is misleading since there is the possibility of residual retired pay. See the comment above pertaining to residual retired pay.
Here is one example of the computation of retired pay and VA compensation.
1. Using your info, your retired pay will be average high three base pay multiplied by 70% = DoD retired pay
2. Using your info, your VA compensation (100%) will be an amount in excess of $3000.
3. Your retired pay will be reduced dollar for dollar in the amount of VA compensation received.
4. If any retired pay is left over (i.e., residual retired pay), you get to keep it. You also are paid your VA compensation.
5. Most retirees having a similar situation end up with just the VA compensation as there is zero residual retired pay.
6. If eligible for CRSC and your application is approved by your service, some or all of the retired pay reduced/waived, can be replaced by CRSC.
Note: The example percentage at item 1 would be the DoD disability percentage. However, if the longevity multiplier was higher, it would be used instead.
Average High Three Base Pay: The total of the highest 36 months base pay divided by 36.
Multiplier Percentage: can be either. whichever is higher:
Average high three base pay x the higher multiplier =
Retired Pay
Note 2: that in both cases the multiplier is limited to 75% by law
This discussion does not include CRDP for which some retirees qualify.
===============
Ron
Also see : DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty <—-LINK
Explanation of retired pay and impact of VA compensation.
DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty
Each Chapter 61 disability retiree will receive two separate ratings.
--DoD rating for only those disabilities that make the member unfit for continued service. The DFAS and USCG pays military retired pay.
--VA rating for ALL service-connected disabilities. The VA pays VA compensation.
The retiree has an option to select VA compensation and waive retired pay in an amount equal to the amount of VA compensation. I have never seen one case where it was better to decline VA compensation, irrespective of the VA percentage being 10%, 20%, or 100% (using only a few examples). If the amount of VA compensation is less than the amount of the DoD retired pay, the retiree gets to keep the amount in excess of the VA compensation amount (known as residual retired pay) paid by DFAS or USCG, in addition to their VA compensation.
In no case is the amount of VA compensation reduced, in the context of this discussion, unless the retiree refuses to accept VA compensation.
The myth that the retiree receives the higher of VA compensation or DoD Retired Pay, is misleading since there is the possibility of residual retired pay. See the comment above pertaining to residual retired pay.
Here is one example of the computation of retired pay and VA compensation.
1. Using your info, your retired pay will be average high three base pay multiplied by 70% = DoD retired pay
2. Using your info, your VA compensation (100%) will be an amount in excess of $3000.
3. Your retired pay will be reduced dollar for dollar in the amount of VA compensation received.
4. If any retired pay is left over (i.e., residual retired pay), you get to keep it. You also are paid your VA compensation.
5. Most retirees having a similar situation end up with just the VA compensation as there is zero residual retired pay.
6. If eligible for CRSC and your application is approved by your service, some or all of the retired pay reduced/waived, can be replaced by CRSC.
Note: The example percentage at item 1 would be the DoD disability percentage. However, if the longevity multiplier was higher, it would be used instead.
Average High Three Base Pay: The total of the highest 36 months base pay divided by 36.
Multiplier Percentage: can be either. whichever is higher:
- Member’s percentage of disability determined by the military service (this is the DoD Disability Percentage). Example: 70%
- Years of creditable service times 2.5% or 2.0% (2.0% is for previous enrollment in the Blended Retirement System prior to the disability) Example: 12 years active duty x 2.5% = 30% longevity multiplier
Average high three base pay x the higher multiplier =
Retired Pay
Note 2: that in both cases the multiplier is limited to 75% by law
This discussion does not include CRDP for which some retirees qualify.
===============
Ron
Here are a few steps you can take to help make the process easier:
- Define your retirement goals.
- Assess your current financial situation.
- Create a retirement savings plan.
- Monitor and adjust your plan regularly.
RetiredColonel-MikeT
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True, however, I believe OP is asking about CRSC.
@mgreening - what branch were you or he or both? Also, did the service time end with a military retirement of ANY sort? To include, but not limited to Chapter 61, Length of Service, 20-year Letter, TERA, etc? Is there a VA rating of any percentage? Can any of the conditions show a causal relationship with a combat-related event or events? We need to start from there first before we can give you tailored info.
It was a long wait but my husband was approved for crsc at 90%. I was looking at mypay and they stopped the allotments for sbp and so now it has gross pay at 2228 and va waiver at the same amount and no taxes of course. net pay is 0. So what pay should amount should we expect for next month. I assume va amount won't change bc he is 100%p&t. Lord I feel dumb
It was a long wait but my husband was approved for crsc at 90%. I was looking at mypay and they stopped the allotments for sbp and so now it has gross pay at 2228 and va waiver at the same amount and no taxes of course. net pay is 0. So what pay should amount should we expect for next month. I assume va amount won't change bc he is 100%p&t. Lord I feel dumb
Hello,
On MyPay, is there a CRSC statement? If so, what amount is shown there? The CRSC statement is separate from the old RAS.
If you need a CRSC estimate and have less than 20 years active duty equivalent:
Chapter 61 CRSC estimate (less than 20 years AD)
Need:
1. Gross retired pay from DFAS RAS. This is an amount before the VA offset (amount of VA comp) and other deductions.
2. Residual retired pay. Amount of retired pay remaining after reduction in the amount of VA comp received.
3. DoD Disability percentage (found on retirement orders).
4. VA compensation:
a. Percentage
b. Amount including SMCs
c. Dependents by category and number in each
5. Active duty equivalent. This is found on the retirement orders under DISABILITY RETIREMENT .
6. Approved CRSC percentage .
7. Blended retirement program, YES or NO
Ron
Not yet
OK
I assume you do not want an estimate for CRSC since you did not provide:
If you need a CRSC estimate and have less than 20 years active duty equivalent:
Chapter 61 CRSC estimate (less than 20 years AD)
Need:
1. Gross retired pay from DFAS RAS. This is an amount before the VA offset (amount of VA comp) and other deductions.
2. Residual retired pay. Amount of retired pay remaining after reduction in the amount of VA comp received.
3. DoD Disability percentage (found on retirement orders).
4. VA compensation:
a. Percentage
b. Amount including SMCs
c. Dependents by category and number in each
5. Active duty equivalent. This is found on the retirement orders under DISABILITY RETIREMENT .
6. Approved CRSC percentage .
7. Blended retirement program, YES or NO
Ron
Hi Ron,
I'll take you up on that estimate please. I'm trying to figure out what difference, if any at all, CRSC will make in my financial situation. I'm getting mixed info that it will simply result in tax free residual pension after offset but not sure.
Here are the facts:
1. Gross retired pay from DFAS RAS. This is an amount before the VA offset (amount of VA comp) and other deductions.
Gross retired pay before VA offset is 6000. I'm 14.8 years medically retired 04.
2. Residual retired pay. Amount of retired pay remaining after reduction in the amount of VA comp received.
Residual retired pay is $1900 (VA is 4100)
3. DoD Disability percentage (found on retirement orders).
100%
4. VA compensation:
a. Percentage
100% + SMCS due to one injury at 100%
b. Amount including SMCs
4153
c. Dependents by category and number in each
0
5. Active duty equivalent. This is found on the retirement orders under DISABILITY RETIREMENT .
14 years 8 mo
6. Approved CRSC percentage
100%
7. Blended retirement program, YES or NO
No blended retirement
I'll take you up on that estimate please. I'm trying to figure out what difference, if any at all, CRSC will make in my financial situation. I'm getting mixed info that it will simply result in tax free residual pension after offset but not sure.
Here are the facts:
1. Gross retired pay from DFAS RAS. This is an amount before the VA offset (amount of VA comp) and other deductions.
Gross retired pay before VA offset is 6000. I'm 14.8 years medically retired 04.
2. Residual retired pay. Amount of retired pay remaining after reduction in the amount of VA comp received.
Residual retired pay is $1900 (VA is 4100)
3. DoD Disability percentage (found on retirement orders).
100%
4. VA compensation:
a. Percentage
100% + SMCS due to one injury at 100%
b. Amount including SMCs
4153
c. Dependents by category and number in each
0
5. Active duty equivalent. This is found on the retirement orders under DISABILITY RETIREMENT .
14 years 8 mo
6. Approved CRSC percentage
100%
7. Blended retirement program, YES or NO
No blended retirement
Hello,
Rough Estimate using your figures. Please note that you show 4100 for VA comp and 4153 VA comp with SMCs.
1. Gross pay 6000/75% DoD max = 8000 high three
2. 6000 minus 4153 = 1847 residual retired pay
3. 14 yr 8 mo (14.67) x 2.5% = 36.68% longevity multiplier
4. 8000 x 36.68 = 2934.40 longevity portion of retired pay
5. 2934.40 longevity minus 1847 residual = 1087.40 CRSC max
6. VA will pay all your VA comp
7. DFAS will pay:
1847 residual ret pay and 1087.40 CRSC = 2934.40
Ron
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1) 23 yrs regular retirement
2)gross retirement pay 2228
3) 100% va (spouse and 2 kids under 18)
4) crsc approval 90%
5) redux at 15yrs
Hello,
a. You have exactly 23 years active duty? If not, what are the years and months of active duty
b. What is the amount of your VA compensation presently?
c. Did you participate in the blended retirement program?
d. Since this is a REDUX case, a redacted copy of both pages of the DFAS would be helpful .
If not, please provide all the categories and amounts on pages 1-2. The computation of REDUX is quite different than regular retirements.
GENERAL: You should be receiving CRDP and the amount will be shown on page 2 of the RAS. If receiving CRDP, the CRSC could be the same amount but not more. If the CRSC amount found the VA comp tables for 90% with spouse and 2/c under 18, is less than the current CRDP, then you would lose money by accepting 90% CRSC instead of CRDP.
Ron
Yes it was exactly 23 years
Va compensation 4335.16
My apologies no he didn't do the blended retirement.
Yes he was receiving crdp bc we got his retirement pay and va. We decided to apply for crsc to see if it would be a benefit to us. Apparently it was already switched to crsc when we got approved for it. Now it has a total waiver of 2228$
Is there a CRSC pay statement on MyPay? It would be on a separate tab.
If $2228 is the CRDP amount, that would be the CRSC max too.
90% CRSC spouse and 2 kids under 18 = 2565.91 plus $93
Based on the info you provided, the gross CRSC will be $2228, and nontaxable
Ron
No crsc pay statement as of this morning when I checked. So the crdp is basically the gross retirement pay correct? If I am correct in saying that, we still get the 2228 but it will be crsc instead of "retirement" and then still get VA per usual
Based on the info you provide, I inferred your DFAS RAS includes the REDUX computation.
That amount is the max you can receive whether CRDP or CRSC.
Summary of payments based on your info:
VA = 4335.16 nontaxable
DFAS = 2228 CRSC nontaxable
Ron
added: The retired pay (paid in past) in your case appears to be all CRDP. You never provided the CRDP info; however, it is not needed now.
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