Do you pick between VA or DoD pay for MEB?

LittleGuy131

PEB Forum Regular Member
Registered Member
Hey all, I am sorry and this might be a dumb question, but I am currently an O4 w/ 14yrs active time. Finished my MEB and pick up my dd214 on Monday and official retirement date is 27 NOV 2024. I was awarded 50% DOD (Permanent) rating and 100% VA (P&T) rating. Most of my DoD ratings were combat coded V1/V3 but not all of them. However, what I am wondering is with my DoD rating against my base pay, its higher than my VA compensation for Married with two kids. So I am not sure if i have to select something, if its automatically going to award whichever is higher, or whats going on. Just do not want to miss something if I need to select one before my actual retirement date. Thanks for any information.
 
On the 526 ez you made or didn't make an election to waive retirement pay in lieu of.
 
Ah ok, well that is really unfortunate since I signed that in the very beginning and was told by my PEBLO and legal rep to not check that box since I do not have 20 years of service and it wouldnt apply. Thank you
 
If you have some combat rated disabilities though, you may want to look at crsc. I'm not the expert on that one though. There is a forum member here who is and they should chime in soon.
 
Hey all, I am sorry and this might be a dumb question, but I am currently an O4 w/ 14yrs active time. Finished my MEB and pick up my dd214 on Monday and official retirement date is 27 NOV 2024. I was awarded 50% DOD (Permanent) rating and 100% VA (P&T) rating. Most of my DoD ratings were combat coded V1/V3 but not all of them. However, what I am wondering is with my DoD rating against my base pay, its higher than my VA compensation for Married with two kids. So I am not sure if i have to select something, if it’s automatically going to award whichever is higher, or whats going on. Just do not want to miss something if I need to select one before my actual retirement date. Thanks for any information.
Hello @LittleGuy131 ,

It is not an “either or” situation.

In order to receive VA compensation, one has to agree to waive retired pay dollar for dollar in the amount of VA compensation received . You waive only the amount of the VA compensation which might be less than the total retired pay.

The waiver of retired pay is accomplished on the VA compensation application form by NOT checking block 26.

1. Normally, an application for VA compensation is on VA Form 21-526ez and that form contains the BLOCK 26 discussed here.

2. https://www.vba.va.gov/pubs/forms/VBA-21-526EZ-ARE.pdf <—LINK -21-526ez form several pages deep at this link

3. For most people, they DO NOT check block 26 and as a result they DO RECEIVE VA COMP

Ron

Edited to add:
Contemporary CRSC Information--Also See Update at Bottom of this Resource Page <—-CRSC INFORMATION LINK
 
If you have some combat rated disabilities though, you may want to look at crsc. I'm not the expert on that one though. There is a forum member here who is and they should chime in soon.
Hello @KDawgie ,

@RetiredColonel-MikeT is a certified CRSC ambassador. He frequently communicates with the CRSC boards.

There are several on this forum who compute CRSC estimates when provided certain info by a retiree.

Ron
 
Hello @LittleGuy131 ,

It is not an “either or” situation.

In order to receive VA compensation, one has to agree to waive retired pay dollar for dollar in the amount of VA compensation received . You waive only the amount of the VA compensation which might be less than the total retired pay.

The waiver of retired pay is accomplished on the VA compensation application form by NOT checking block 26.

1. Normally, an application for VA compensation is on VA Form 21-526ez and that form contains the BLOCK 26 discussed here.

2. https://www.vba.va.gov/pubs/forms/VBA-21-526EZ-ARE.pdf <—LINK -21-526ez form several pages deep at this link

3. For most people, they DO NOT check block 26 and as a result they DO RECEIVE VA COMP

Ron

Edited to add:
Contemporary CRSC Information--Also See Update at Bottom of this Resource Page <—-CRSC INFORMATION LINK
Thank you Ron, that is helpful. I too did NOT check box 26 on my form, which is fine. It might not even matter honestly, was just told by my Care Coalition rep that as a Senior Major with 14yrs in, my Base Pay at my 50% and combat coded would exceed the VA compensation amount, so it would be better to take that option.

As for CRSC, I am working on all the required documents now and compiling the medical records to coincide with the injuries I will be claiming for it. I am on terminal leave for 3 months, so I have some time before I can submit it, but will definitely be submitting for it.
 
Hello @LittleGuy131 ,

Reference: “It might not even matter honestly, was just told by my Care Coalition rep that as a Senior Major with 14yrs in, my Base Pay at my 50% and combat coded would exceed the VA compensation amount, so it would be better to take that option.”

Just to ensure you understand how it works..
Example retired pay: 5000
Example VA comp: 4000 (if you agreed to waive retired pay)
Example offset: 5000 minus 4000 = 1000 residual retired pay (disbursed by DFAS) PLUS all your 4000 VA comp.

Your case is not one involving
Concurrent Military Retirement Pay and DVA Disability Compensation which
has replaced the term, “CRDP”.

Ron
Added: From DFAS
TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.
 
Thank you Ron, that is helpful. I too did NOT check box 26 on my form, which is fine. It might not even matter honestly, was just told by my Care Coalition rep that as a Senior Major with 14yrs in, my Base Pay at my 50% and combat coded would exceed the VA compensation amount, so it would be better to take that option.

As for CRSC, I am working on all the required documents now and compiling the medical records to coincide with the injuries I will be claiming for it. I am on terminal leave for 3 months, so I have some time before I can submit it, but will definitely be submitting for it.
Chapter 61 Disability Retirees, CRSC
Each CH 61 case involves these ceilings and other factors:

—Must be entitled to retired pay
—Agrees to waive retired pay in the amount of VA compensation received.
—CRSC cannot exceed the amount of the waived retired pay.
—CRSC cannot exceed the amount of the approved CRSC percentage (amt in VA Comp tables).
—CRSC cannot exceed the dollar amount of the longevity portion of retired pay.
—CRSC when combined with residual retired pay cannot exceed the longevity amount.

As one can see, more than one of the ceilings shown above could apply to the retiree. In those cases, the lesser amount is the CRSC amount.
 
Hello @LittleGuy131 ,

Reference: “It might not even matter honestly, was just told by my Care Coalition rep that as a Senior Major with 14yrs in, my Base Pay at my 50% and combat coded would exceed the VA compensation amount, so it would be better to take that option.”

Just to ensure you understand how it works..
Example retired pay: 5000
Example VA comp: 4000 (if you agreed to waive retired pay)
Example offset: 5000 minus 4000 = 1000 residual retired pay (disbursed by DFAS) PLUS all your 4000 VA comp.

Your case is not one involving
Concurrent Military Retirement Pay and DVA Disability Compensation which
has replaced the term, “CRDP”.

Ron
Added: From DFAS
TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.
Ron,

That makes sense to me, thank you. Now to wait for December and my official DFAS letter.
 
Ron,

That makes sense to me, thank you. Now to wait for December and my official DFAS letter.
Good luck!

Also keep in mind these features of CRSC for disability retirees :

Chapter 61 Disability Retirees, CRSC
Each CH 61 case involves these ceilings and other factors:

—Must be entitled to retired pay
—Agrees to waive retired pay in the amount of VA compensation received.
—CRSC cannot exceed the amount of the waived retired pay.
—CRSC cannot exceed the amount of the approved CRSC percentage (amt in VA Comp tables).
—CRSC cannot exceed the dollar amount of the longevity portion of retired pay.
—CRSC when combined with residual retired pay cannot exceed the longevity amount.

As one can see, more than one of the ceilings shown above could apply to the retiree. In those cases, the lesser amount is the CRSC amount.

Ron
 
Ron,

That makes sense to me, thank you. Now to wait for December and my official DFAS letter.
Sounds like you're set to be able to apply for CRSC, one thing is that it's not once you're out, it's once your VA compensation kicks in. As Ron said, if someone checks off Box 26, they forfeit the ability to put in for CRSC as there has to be a VA offset in place in order to claim CRSC. So one potentially could end up higher than their Ch 61 retirement but will not exceed what you would be able to get for a length of service retirement at your grade + VA compensation. Holler if you have any questions, if I'm tagged I get the alert and usually pop in soon after, just ask @RonG ;)
 
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