CRSC Pay discrepancy

M

Mayas003

PEB Forum Regular Member
Registered Member
I have so many questions. After six years of having applied for the CRSC, the ARMY finally approved my CRSC at 60%. I was medically retired from the Army in Jan, 2017, at 70% DOD. I am 100% with VA. I did 9 years active duty and have a high 3 of $5743.10.
After I did the calculation based on the formula I found in one of the older threads here, the award they gave me does not match. DFAS paid me a CRSC award of $343.85 this December. Can anyone tell me if this is correct? Also, if is not correct, what can I do to have DFAS correct it? Also, Is DFAS going to give me a retroactive? Also, how long does it take DFAS to pay a retroactive?
I want to thank you in advance for the answer.
 
Mayas003 said:
I have so many questions. After six years of having applied for the CRSC, the ARMY finally approved my CRSC at 60%. I was medically retired from the Army in Jan, 2017, at 70% DOD. I am 100% with VA. I did 9 years active duty and have a high 3 of $5743.10.
After I did the calculation based on the formula I found in one of the older threads here, the award they gave me does not match. DFAS paid me a CRSC award of $343.85 this December. Can anyone tell me if this is correct? Also, if is not correct, what can I do to have DFAS correct it? Also, Is DFAS going to give me a retroactive? Also, how long does it take DFAS to pay a retroactive?
I want to thank you in advance for the answer.
Click to expand...
We look forward to assisting you with a CRSC estimate. About 50% of those who request an estimate, do not provide adequate background information. We have tried to anticipate what info is needed for each scenario and the following outline is the result. We will not be able to provide an accurate estimate without this info. Added 29 December 2023: Two of the most important components of a CRSC estimate are the AVERAGE HIGH THREE and the ACTIVE DUTY EQUIVALENT.
The most accurate information regarding the High Three comes from the most recent DFAS RAS, specifically the GROSS RETIRED PAY on page one. That amount divided by the DoD Disability Percentage = contemporary Average High Three IF the info comes from a recent RAS.

Retiree Account Statement (RAS)​

Your Retiree Account Statement (RAS) is a two-page document issued by DFAS that summarizes your pay, benefits and deductions at a specific point in time. It is a description of what you can expect on the next pay date. Understanding your RAS is an important first step in managing your retirement pay.
eRASlogo.jpg

A monthly electronic Retiree Account Statement (RAS) is available to all military retirees currently receiving retirement payments. The RAS is available on myPay, the official online account management system for military members and DoD employees. The statements will be available by the first of each month and you will be able to access up to 12 months of statements. Please register an email address in your myPay account, so we can send you an email reminder each month when your statement is available.

In addition to the monthly RAS, all retirees receive a RAS whenever you make a change to your account and an annual RAS each December.

How to Get a RAS Copy​

The most convenient way to view, print and save your latest RAS is on myPay.
——-


ACTIVE DUTY EQUIVALENT:

That information can be found on the DoD Disability Retirement Orders under DISABILITY RETIREMENT.

=============

CRSC Estimate

The following is needed for someone to compute your CRSC:
Accurate information needed within one reply:

1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36)
Note: If you can access your IPERMS under CRSC application you can find your high 3 on page two of the computation sheet under HAVG BASE AMT. THIS DOES NOT WORK FOR RETIREMENTS THAT OCCURED YEARS AGO.
HIGHLY RECOMMEND PROVIDING THE GROSS (I.E., UNREDUCED) PAY AMOUNT ON MOST RECENT DFAS RAS.
Example reply: The Gross retired pay on my DFAS RAS is $2900.
Example Reply 2: The total of my highest 36 months of pay divided by 36 is $3600.


2.--DoD disability percentage
Example reply: My DOD disability retirement (Chapter 61) percentage shown in my retirement orders was 70%.

3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360). Your retirement orders will show your active duty equivalent on page one, about 3/4 down the first page as “Disability Retirement”.
Example reply: My active duty equivalent shown on my retirement orders was: 9 years and 8 months
Example reply 2: My total creditable points for retirement divided by 360 results in: 9 years and 8 months

4. --VA compensation (All of the following):
a. percentage; Example reply: My VA Compensation percentage is 80%.
b. amount; Example reply: The amount of my VA compensation is $1900.
c. dependents by category and ages of dependent children.; Example reply: My dependents for VA compensation are spouse and 2 children under 18.

d. Also provide information pertaining to any SMCs you receive.
Example reply: I receive SMC-K.

5.--Projected or approved CRSC percentage by your service.
Example reply: My approved CRSC percentage is 70%.

6.--Whether you qualify for another type of retirement . Cite the type of other retirement for which you qualify such as reserve component at age 60. Example reply: I also qualify for a reserve retirement.

7.--Did you receive a REDUX/CSB payment? If REDUX was received, then all the info (amounts and description) on page one of your DFAS RAS is needed in addition to other info requested. Please show a description for each item. Example reply: I did not receive REDUX/CSB.

8.--Did you accept the Blended Retirement program option? Example reply: Yes I was under the blended retirement program.
 
RonG said:
We look forward to assisting you with a CRSC estimate. About 50% of those who request an estimate, do not provide adequate background information. We have tried to anticipate what info is needed for each scenario and the following outline is the result. We will not be able to provide an accurate estimate without this info. Added 29 December 2023: Two of the most important components of a CRSC estimate are the AVERAGE HIGH THREE and the ACTIVE DUTY EQUIVALENT.
The most accurate information regarding the High Three comes from the most recent DFAS RAS, specifically the GROSS RETIRED PAY on page one. That amount divided by the DoD Disability Percentage = contemporary Average High Three IF the info comes from a recent RAS.

Retiree Account Statement (RAS)​

Your Retiree Account Statement (RAS) is a two-page document issued by DFAS that summarizes your pay, benefits and deductions at a specific point in time. It is a description of what you can expect on the next pay date. Understanding your RAS is an important first step in managing your retirement pay.
eRASlogo.jpg

A monthly electronic Retiree Account Statement (RAS) is available to all military retirees currently receiving retirement payments. The RAS is available on myPay, the official online account management system for military members and DoD employees. The statements will be available by the first of each month and you will be able to access up to 12 months of statements. Please register an email address in your myPay account, so we can send you an email reminder each month when your statement is available.

In addition to the monthly RAS, all retirees receive a RAS whenever you make a change to your account and an annual RAS each December.

How to Get a RAS Copy​

The most convenient way to view, print and save your latest RAS is on myPay.
——-


ACTIVE DUTY EQUIVALENT:

That information can be found on the DoD Disability Retirement Orders under DISABILITY RETIREMENT.

=============

CRSC Estimate

The following is needed for someone to compute your CRSC:
Accurate information needed within one reply:

1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36)
Note: If you can access your IPERMS under CRSC application you can find your high 3 on page two of the computation sheet under HAVG BASE AMT. THIS DOES NOT WORK FOR RETIREMENTS THAT OCCURED YEARS AGO.
HIGHLY RECOMMEND PROVIDING THE GROSS (I.E., UNREDUCED) PAY AMOUNT ON MOST RECENT DFAS RAS.
Example reply: The Gross retired pay on my DFAS RAS is $2900.
Example Reply 2: The total of my highest 36 months of pay divided by 36 is $3600.


2.--DoD disability percentage
Example reply: My DOD disability retirement (Chapter 61) percentage shown in my retirement orders was 70%.

3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360). Your retirement orders will show your active duty equivalent on page one, about 3/4 down the first page as “Disability Retirement”.
Example reply: My active duty equivalent shown on my retirement orders was: 9 years and 8 months
Example reply 2: My total creditable points for retirement divided by 360 results in: 9 years and 8 months

4. --VA compensation (All of the following):
a. percentage; Example reply: My VA Compensation percentage is 80%.
b. amount; Example reply: The amount of my VA compensation is $1900.
c. dependents by category and ages of dependent children.; Example reply: My dependents for VA compensation are spouse and 2 children under 18.

d. Also provide information pertaining to any SMCs you receive.
Example reply: I receive SMC-K.

5.--Projected or approved CRSC percentage by your service.
Example reply: My approved CRSC percentage is 70%.

6.--Whether you qualify for another type of retirement . Cite the type of other retirement for which you qualify such as reserve component at age 60. Example reply: I also qualify for a reserve retirement.

7.--Did you receive a REDUX/CSB payment? If REDUX was received, then all the info (amounts and description) on page one of your DFAS RAS is needed in addition to other info requested. Please show a description for each item. Example reply: I did not receive REDUX/CSB.

8.--Did you accept the Blended Retirement program option? Example reply: Yes I was under the blended retirement program.
Click to expand...
Hi, here are the answers to your questions.
1. Average high three = $4682.91, this number is the average high three of what I am making now as a retired person. My average high three from my salary when I retired back in 2017 was $5743.10
2. DOD disability %= 70%
3. Years of service = 9
4. a. VA % = 100%
b. now at $3737.80
c. no dependent
d. SMC = 0
5. CRSC %= 60%
6. none
7. no REDUX/CSB
8. No
 
Mayas003 said:
Hi, here are the answers to your questions.
1. Average high three = $4682.91, this number is the average high three of what I am making now as a retired person. My average high three from my salary when I retired back in 2017 was $5743.10
2. DOD disability %= 70%
3. Years of service = 9
4. a. VA % = 100%
b. now at $3737.80
c. no dependent
d. SMC = 0
5. CRSC %= 60%
6. none
7. no REDUX/CSB
8. No
Click to expand...
Hello ,

For the sake of accuracy, we prefer to have the Gross retired pay on the most recent DFAS RAS. That amount includes any COLA increases from previous years in a retired status.

1. 9 years active duty x 2.5% = 22.5% longevity multiplier
2. Stated high three = 4682.91 x 22.5% =1053.65 longevity portion of your retired pay
3. Based on your info, your CRSC will be the lesser of
—amount at item 2
OR
—amount in the VA compensation tables for veteran alone @60%

4. If you receive residual retired pay. that amount combined with CRSC cannot exceed the longevity amount. If your gross is 4682.91, there is residual retired pay.

5. A copy of Your most recent DFAS RAS (Dec 2023, annual) will be necessary for further comments.

Ron

edited to add: “DFAS paid me a CRSC award of $343.85 this December. Can anyone tell me if this is correct? Also, if is not correct, what can I do to have DFAS ”. The amount $343.85 is likely the amount of CRSC that can be paid when considering residual retired pay. Residual retired pay is the amount remaining after the VA offset. See item 4.
 
Thank You Ron. My gross pension pay after the VA offset is $1257.16. I still don't understand how the $343.85 comes from all these numbers. If I follow your numbers then I should get nothing.
 
You are definitely capped by longevity earned from regular pension + VA compensation. That is the most you can get. So basically since your DOD% was high you are not losing out as much as others because you are getting VA of $3,737.80 + Chapter 61 penson of (After VA offset) $1,257.16 = $4,995.40

Your earned longevity pension earned based on your high 3 and 22.5% longevity multiplier = $1,601.01 + VA compensation $3,737.80 =
$5,338.81 MAX COMPENSATION ALLOWED BY LAW
$5,338.81 - $4,995.40 (Total monies received from VA and Chapter 61 pension after offset) = $343.41 (highest amount eligible for CRSC)

So you are capped by total compensation rule on not getting more than the total combination of your earned longevity pension & VA compensation like I said. There are many caps for CRSC but this is the most common one.
 
Excellent explanation by @Provis . It provides the big picture , including VA compensation , which makes it easier for most to understand.

The actual limitation pertains to CRSC and residual retired pay per FMR Chapter 64, CRSC.

“8.5.2.2. Members retired for disability under 10 U.S.C., Chapter 61, with less than 20 years of creditable service computed under 10 U.S.C. § 1208, and who are qualified for CRSC, on or after January 1, 2013, will have the maximum CRSC payment restrictions. The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed the amount that is equal to 21⁄2 percent of the member’s years of creditable service multiplied by the member’s retired pay base under 10 U.S.C. § 1406(b)(1) or 10 U.S.C. § 1407, whichever is applicable to the member.”

VA compensation is not subject to the offset discussed here. The amount of VA compensation = VA offset reducing retired pay. However, it is a de facto addition to the overall summary of payments or big picture.

We are fortunate this board has @Provis as a moderator and major contributor.

Ron
 
Mayas003 said:
Thank You, Ron and Provis. I think they screw soldiers one way or another, but I am happy I am getting something.
Click to expand...
Hello,

Thank you.

With regard to CRSC, our elected representatives make the laws. The DFAS does the math, irrespective of the individuals involved.

I don’t agree with some of the current laws, but the Richard Starr Act, if enacted, will repair some of the perceived unfairness.

Good luck,
Ron
 
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