DoD Medical Retirement Pay for BRS?

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RockyRoad

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Quick question regarding medical retirement pay if anyone has knowledge on this:

If you are medically retired and placed on PDRL, but are opted into the Blended Retirement System (BRS), how is your DoD monthly paycheck determined? I have seen for Final-Pay that it is your paycheck when you get out times your DoD disability percentage. And for High-3 it is the average of your three highest years of pay times your DoD disability percentage. Does BRS fall into one of these or does it have its own calculation? I used the below website for reference but it is unclear to me. Thanks in advance.

 
RockyRoad said:
Quick question regarding medical retirement pay if anyone has knowledge on this:

If you are medically retired and placed on PDRL, but are opted into the Blended Retirement System (BRS), how is your DoD monthly paycheck determined? I have seen for Final-Pay that it is your paycheck when you get out times your DoD disability percentage. And for High-3 it is the average of your three highest years of pay times your DoD disability percentage. Does BRS fall into one of these or does it have its own calculation? I used the below website for reference but it is unclear to me. Thanks in advance.

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How many active years where you in? What is your DOD%? Chances are your DOD% will be higher and so there won't be a difference in pay between BRS and High 3. Those are for calculation longevity and only come in to play if your have a higher longevity % than than your DOD%.
 
Provis said:
How many active years where you in? What is your DOD%? Chances are your DOD% will be higher and so there won't be a difference in pay between BRS and High 3. Those are for calculation longevity and only come in to play if your have a higher longevity % than than your DOD%.
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2 years in at the moment, coming up on 3 in May. O-2. 60% DoD.

I have an opportunity to go to FPEB to try and up my DoD to 75%. (my 2nd referred condition wasn't deemed unfitting but I have a good case to overturn it)

Just trying to figure out if it will be worth it. At 80% VA right now but will likely get it upped to 90% or 100% by the time I am out, whether I accept findings or not.
 
RockyRoad said:
2 years in at the moment, coming up on 3 in May. O-2. 60% DoD.

I have an opportunity to go to FPEB to try and up my DoD to 75%. (my 2nd referred condition wasn't deemed unfitting but I have a good case to overturn it)

Just trying to figure out if it will be worth it. At 80% VA right now but will likely get it upped to 90% or 100% by the time I am out, whether I accept findings or not.
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Yes its very worth it to get the highest DOD% you can get. Any VA compensation will offset your medical retirement but if the DOD% is higher than the VA compensation you get to keep the difference. The only way to claw back some of that offset is from getting approved for CRSC. However, with 2 years it will be very little. Also, VA compensation can go up and down. Your DOD% amount will never change once its PDRL. So you can rest on knowing that the lowest compensation you can receive will be that chapter 61 medical retirement amount regardless of how the VA rates you.
 
Provis said:
Yes its very worth it to get the highest DOD% you can get. Any VA compensation will offset your medical retirement but if the DOD% is higher than the VA compensation you get to keep the difference. The only way to claw back some of that offset is from getting approved for CRSC. However, with 2 years it will be very little. Also, VA compensation can go up and down. Your DOD% amount will never change once its PDRL. So you can rest on knowing that the lowest compensation you can receive will be that chapter 61 medical retirement amount regardless of how the VA rates you.
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So would my calculation be $5,497 (base pay for O-2 over 3 years) multiplied by 0.75 (assuming I get it increased)?

$5,497 * 0.75 = $4,123 DoD
100% VA = $3,622 (no dependents)
Offset = 4123 - 3622 = $501
Monthly Payment = $3,622 untaxed + $501 taxed

And if I accepted findings it would be (5497 * 0.6) = $3298
Which means no offset, so $500 a month (minus taxes) is left on the table.


Is this correct?
 
The offset is from the VA amount. If the VA amount is higher than your Chapter 61 amount you get nothing but the VA compensation.

So yes $500 is left if you don't get 75%. But remember that the VA rate isn't guaranteed. So $4,123 - $3,298 = $825 of a lower floor for pay for the rest of your life. Any VA compensation just replaces the pension with Tax free VA money. You are pretty good either way.

My wife maxed out 75% DOD and had one unfitting condition listed as combat related so the entire pension was already tax exempt. So the only reason she accepted VA compensation was because she had a high longevity earned towards her regular retirement pension and by accepting VA compensation she would be eligible to collect CRSC money if approved by her branch.
 
Someone can correct me if I'm wrong, but an 0-2 with 3 years of service I calculate your high 3 base would be around $4020 not $5497. that would put you at $3015 with 75% DOD
 
Jeffy said:
Someone can correct me if I'm wrong, but an 0-2 with 3 years of service I calculate your high 3 base would be around $4020 not $5497. that would put you at $3015 with 75% DOD
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I didn't run the numbers in his example. To calculate high 3 you take the last 36 months of pay and add it together and divide by 36. That is how it is calculated.
 
Provis said:
I didn't run the numbers in his example. To calculate high 3 you take the last 36 months of pay and add it together and divide by 36. That is how it is calculated.
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:)
 
Provis said:
I didn't run the numbers in his example. To calculate high 3 you take the last 36 months of pay and add it together and divide by 36. That is how it is calculated.
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Oh so it’s not whatever you’re being paid when you separate?
 
RockyRoad said:
Oh so it’s not whatever you’re being paid when you separate?
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Hello,

As Provis said; It will be the high three.

What is My Retired Pay Base?​

Final Pay: If you entered active or reserve military service before September 8, 1980, your retired pay will be based on your final basic pay.

High-3: If you entered active or reserve military service after September 7, 1980, your retired pay base is the average of the highest 36 months of basic pay. If you served less than three years, your base will be the average monthly active duty basic pay during your period of service.

Ron
 
Hello @RockyRoad

To compute your pay while you are still active, I need your high three average base pay. If you served less than three years, your base will be the average monthly active duty basic pay during your period of service.

Ron
 
I'm not saying not to trust @Provis and @RonG and others on this site (except me, definitely don't trust me), but you should *always* go to the source reference material and verify for yourself.

Hmmm....maybe I *did* learn something from the nukes after all....
 
PERS-95 said:
Absolutely not. You can look it up on the DFAS websites about retirement and disability retirement.
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Gotcha. I was just confused because the website made it seem like BRS had its own calculation. But apparently it is just High 3.
 
Hello @RockyRoad

I agree with @PERS-95 . I often check my work by reviewing the pertinent laws and regulations even though I spent 25 years m the Army finance corps and have worked hundreds of estimates. Of course, they all could be wrong.

R0n
 
RonG said:
Hello @RockyRoad

To compute your pay while you are still active, I need your high three average base pay. If you served less than three years, your base will be the average monthly active duty basic pay during your period of service.

Ron
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I am assuming I will hit the three year mark prior to the completion of my terminal leave. Assuming I am medically retired July 1st, my High Three average base pay is $3862.17
 
PERS-95 said:
I'm not saying not to trust @Provis and @RonG and others on this site (except me, definitely don't trust me), but you should *always* go to the source reference material and verify for yourself.

Hmmm....maybe I *did* learn something from the nukes after all....
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Noted. Haha
 
RockyRoad said:
So would my calculation be $5,497 (base pay for O-2 over 3 years) multiplied by 0.75 (assuming I get it increased)?

$5,497 * 0.75 = $4,123 DoD
100% VA = $3,622 (no dependents)
Offset = 4123 - 3622 = $501
Monthly Payment = $3,622 untaxed + $501 taxed

And if I accepted findings it would be (5497 * 0.6) = $3298
Which means no offset, so $500 a month (minus taxes) is left on the table.


Is this correct?
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Hello @RockyRoad

Using info you provided.

1. "... my High Three average base pay is $3862.17"
2. 3862.17 x 75% = 2896.63 disability pay (this assumes a DoD rating of 80% or higher)
3. 2896.63 minus 3622 VA (using your figures) = zero retired pay remaining
4. You would receive
--VA = 3622
--DoD = zero as it is all offset by the amount of VA compensation

Ron
 
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