Estimate Calculation Request

N

Newguy5

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PEB Forum Veteran
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Thank you in advance @RonG

1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) :The total of my highest 36 months of pay divided by 36 is $3955

1a.--Did you receive a DoD disability retirement? YES


2.--DoD disability percentage: My DOD disability retirement percentage was 70%.


3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360): My active duty equivalent shown on my retirement orders was 12 years and 4 months

4. --VA compensation (All of the following):
a. percentage; My VA Compensation percentage is 100%
b. amount; The amount of my VA compensation is $3838
c. dependents by category and ages of dependent children.; My dependents for VA compensation are spouse and 3 children under 18.

d. Also provide information pertaining to any SMCs you receive. NONE

5.--Projected or approved CRSC percentage by your service.: My projected 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: NONE

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. NONE

8.--Did you accept the Blended Retirement program option? NO
 
Hello @Newguy5

The new info changes the computation provided three weeks ago.

a. High three 3955 x 70% = 2768.50 gross retired pay
b. 2768.50 minus 3000-plus VA comp = zero retired pay remaining
c. 12.25 yrs AD x 2.5% = 30.63% longevity multiplier
d. 3955 x 30.63% = 1211.42 longevity portion of retired pay and a CRSC ceiling
e. 70% CRSC using VA comp tables = a rate higher than 1211.42
f. Based on the info you provided, your CRSC will be 1211.42

Ron
 
Glad to help.

Ron
 
Thank you in advance @RonG! This is my final calculation after receiving my TDRL Orders. I believe my high 3 is correct.

1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) :The total of my highest 36 months of pay divided by 36 is $3955

1a.--Did you receive a DoD disability retirement? YES


2.--DoD disability percentage: My DOD disability retirement percentage was 70%.


3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360): My active duty equivalent shown on my retirement orders was 12 years, 3 months, and 18 days

4. --VA compensation (All of the following):
a. percentage; My VA Compensation percentage is 100%
b. amount; The amount of my VA compensation is $3946
c. dependents by category and ages of dependent children.; My dependents for VA compensation are spouse and 3 children under 18.

d. Also provide information pertaining to any SMCs you receive. NONE

5.--Projected or approved CRSC percentage by your service.: My projected 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: NONE

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. NONE

8.--Did you accept the Blended Retirement program option? NO
 
Newguy5 said:
Thank you in advance @RonG! This is my final calculation after receiving my TDRL Orders. I believe my high 3 is correct.
1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) :The total of my highest 36 months of pay divided by 36 is $3955
1a.--Did you receive a DoD disability retirement? YES
2.--DoD disability percentage: My DOD disability retirement percentage was 70%.
3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360): My active duty equivalent shown on my retirement orders was 12 years, 3 months, and 18 days
4. --VA compensation (All of the following):
a. percentage; My VA Compensation percentage is 100%
b. amount; The amount of my VA compensation is $3946
c. dependents by category and ages of dependent children.; My dependents for VA compensation are spouse and 3 children under 18.
d. Also provide information pertaining to any SMCs you receive. NONE
5.--Projected or approved CRSC percentage by your service.: My projected 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: NONE
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. NONE
8.--Did you accept the Blended Retirement program option? NO
Click to expand...
Estimate 22 February 2022.


a. High three 3955 x 70% = 2768.50 gross retired pay
b. 2768.50 minus 3000-plus VA comp = zero retired pay remaining
c. 12.25 yrs AD x 2.5% = 30.63% longevity multiplier
d. 3955 x 30.63% = 1211.42 longevity portion of retired pay and a CRSC ceiling
e. 70% CRSC using VA comp tables = a rate higher than 1211.42
f. Based on the info you provided, your CRSC will be 1211.42

No change since the 2nd estimate.

Ron
 
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RonG said:
Estimate 22 February 2022.


a. High three 3955 x 70% = 2768.50 gross retired pay
b. 2768.50 minus 3000-plus VA comp = zero retired pay remaining
c. 12.25 yrs AD x 2.5% = 30.63% longevity multiplier
d. 3955 x 30.63% = 1211.42 longevity portion of retired pay and a CRSC ceiling
e. 70% CRSC using VA comp tables = a rate higher than 1211.42
f. Based on the info you provided, your CRSC will be 1211.42

No change since the 2nd estimate.

Ron
Click to expand...
Sir,

Using your calculation model could you calculate (using this basic information) two ways? 20 years active duty and 19 years active duty (pro rated portion of redux bonus waived). I'm curious to see how the redux affects someone who actually reached 20 years active duty vs someone in the same situation that only completes 19 years of service. I believe the answer may be interesting.

Thank you in advance. The basic information for computation is listed below (only changing active duty years from 19 to 20)



1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) :The total of my highest 36 months of pay divided by 36 is $3955

1a.--Did you receive a DoD disability retirement? YES


2.--DoD disability percentage: My DOD disability retirement percentage was 50%.


3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360): My active duty equivalent shown on my retirement orders was 20 years

4. --VA compensation (All of the following):
a. percentage; My VA Compensation percentage is 100%
b. amount; The amount of my VA compensation is $3946
c. dependents by category and ages of dependent children.; My dependents for VA compensation are spouse and 3 children under 18.

d. Also provide information pertaining to any SMCs you receive. NONE

5.--CRSC: 100%

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: NONE

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. YES

8.--Did you accept the Blended Retirement program option? NO
 
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jayb said:
Sir,

Using your calculation model could you calculate (using this basic information) two ways? 20 years active duty and 19 years active duty (pro rated portion of redux bonus waived). I'm curious to see how the redux affects someone who actually reached 20 years active duty vs someone in the same situation that only completes 19 years of service. I believe the answer may be interesting.

Thank you in advance. The basic information for computation is listed below (only changing active duty years from 19 to 20)



1.--Average high three for basic pay (total of the highest 36 months of pay divided by 36) :The total of my highest 36 months of pay divided by 36 is $3955

1a.--Did you receive a DoD disability retirement? YES


2.--DoD disability percentage: My DOD disability retirement percentage was 50%.


3. --Active duty years and months (or active duty equivalent for RC members which is total creditable points divided by 360): My active duty equivalent shown on my retirement orders was 20 years

4. --VA compensation (All of the following):
a. percentage; My VA Compensation percentage is 100%
b. amount; The amount of my VA compensation is $3946
c. dependents by category and ages of dependent children.; My dependents for VA compensation are spouse and 3 children under 18.

d. Also provide information pertaining to any SMCs you receive. NONE

5.--CRSC: 100%

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: NONE

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. YES

8.--Did you accept the Blended Retirement program option? NO
Click to expand...
Hello @jb89

I will be happy to assist you Thursday. REDUX is a more complicated computation than what is normally done here. I’ve probably a dozen or so of those computations in the past.

Also, “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. YES”

I don’t see the info from page one of your DFAS RAS. Please furnish that information.

Ron
 
RonG,

Thank you in advance for your time.

The numbers are simply an example. The crux of the inquiry is an attempt to determine if two members (one at 20 years and one at 19 years) both took the redux and later received a disability retirement at 50% (everything else being equal), would the member serving only 19 years actually be calculated at a higher percentage (years of service x 2.5%) of retirement pay (when calculated through CRSC).

If it's true that someone at 19 years would have their disability retirement (years of service x 2.5% when calculated through CRSC) at 47.5% and someone at 20 years would have their disability retirement calculated at 40% (years of service x 2.5%, less the redux reduction), then that is absurd and must be addressed.

I hope you can understand my question as I'm not certain how clear it's coming across...lol
 
jayb said:
RonG,

Thank you in advance for your time.

The numbers are simply an example. The crux of the inquiry is an attempt to determine if two members (one at 20 years and one at 19 years) both took the redux and later received a disability retirement at 50% (everything else being equal), would the member serving only 19 years actually be calculated at a higher percentage (years of service x 2.5%) of retirement pay (when calculated through CRSC).

If it's true that someone at 19 years would have their disability retirement (years of service x 2.5% when calculated through CRSC) at 47.5% and someone at 20 years would have their disability retirement calculated at 40% (years of service x 2.5%, less the redux reduction), then that is absurd and must be addressed.

I hope you can understand my question as I'm not certain how clear it's coming across...lol
Click to expand...
Hello @jayb

1. With 20 years active duty and a 50% VA RATING or higher, you would be eligible for CRDP, albeit the computation for CRDP would use the REDUX formula. A colleague asked DFAS for a determination a few years ago for that scenario. With less than 20 years AD or equivalent = no CRDP.

2. The amount of CRSC payable for disability retirees is usually the lesser of
—longevity portion of retired pay (I suspect DFAS will use the REDUX formula)
OR
—the amount found in the VA comp tables for the CRSC percentage approved by your service.

Ron

Edited to add:
Oct 10, 2015#1
My understanding on Concurrent receipt, as it applies to CSB/REDUX retirees who have been medically retired, is that the amount paid by either CRSC or CRDP is calculated based on the reduced REDUX multiplier calculation in order to comply with the concurrent receipt restriction found in 10 USC 1414 (b)(1). The premise for the 1414(b)(1) restriction is that any military medical retired pay which is in excess of that earned for years of service is de facto payment for the disability and duplicative of the VA payment for disability.

For those readers not familiar. Redux directs a reduction of 1% in the result of the 2.5% x years of service calculation for each year that the retirement is less than 30 years of service. This results in 40% of base pay at 20 years of service, 57 ½ % at 25 years of service, but the full 75% at 30 and 100% for 40 years of service. After retirement, the annual COLA is also reduced by 1% each year but, there is a recomputation at age 62 when both the multiplier and COLA are adjusted to equal the “High Three” system.

The amount of the military medical disability retirement is calculated, under Method B, using the 2.5% x years of service multiplier without regard for the REDUX provisions as the law governing medical retirements directs this calculation. Method A uses the percentage disability assigned to unfitting conditions to calculate medical retirement. The member gets the higher of the two methods.

Consider a medical retiree who did not opt in to CSB/REDUX and has 20 years of service who is medically retired at 70% of base pay based on Method A. His CRDP is restricted to no more than his longevity retirement - 50% of retirement base . An identical retiree who took REDUX, would also be restricted to no more than his longevity retirement - which is 40% of retirement base .

I would not be surprised if DFAS calculated it differently than I beleive was intended under 1414 but the language and intent of the code is as clear as code gets.

I addressed this issue to DFAS and the response from DFAS, received in October 2015, was:

Question:
A recurring question that I see on various veteran websites concerns how CRDP is calculated when a veteran with more than 20 years service has been retired under Chapter 61 but previously opted for the REDUX system.

When the VA disablity compensation exceeds the chapter 61 retirement amount, is the amount restored by CRDP calculated at the reduced REDUX retirement factor or at the 2.5% per year of service rate used for Chapter 61 purposes?

For example, a retiree has 20 years service and DOD disability finding of 30% disability. The retiree is retired at 50% based on 2.5% per year of service IAW chapter 61. All of his retirement is offset by his VA compensation. His REDUX retirement would be 40%. Is CRDP dollar amount based on the 40% or the 50% factor?

Answer:
The CRDP dollar amount is based on the 40% REDUX retirement. If you would like an audit of your account or have any further questions they may be directed in writing to:


Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis IN 46249-1200
 
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jayb said:
RonG,

Thank you in advance for your time.

The numbers are simply an example. The crux of the inquiry is an attempt to determine if two members (one at 20 years and one at 19 years) both took the redux and later received a disability retirement at 50% (everything else being equal), would the member serving only 19 years actually be calculated at a higher percentage (years of service x 2.5%) of retirement pay (when calculated through CRSC).

If it's true that someone at 19 years would have their disability retirement (years of service x 2.5% when calculated through CRSC) at 47.5% and someone at 20 years would have their disability retirement calculated at 40% (years of service x 2.5%, less the redux reduction), then that is absurd and must be addressed.

I hope you can understand my question as I'm not certain how clear it's coming across...lol
Click to expand...
Hello @jayb

Some answers were provided earlier.

You said, “If it's true that someone at 19 years would have their disability retirement (years of service x 2.5% when calculated through CRSC) at 47.5% and someone at 20 years would have their disability retirement calculated at 40% (years of service x 2.5%, less the redux reduction), then that is absurd and must be addressed.”

1. I infer both cases involve REDUX and a subsequent disability retirement.

2. Disability retired pay for both categories will be the the higher of
—DoD disability percentage x average high three OR the longevity multiplier (without reduction for redux) x average high three base pay

3. The retired pay will be reduced dollar for dollar in the amount of VA compensation received.

4. The 20 year AD case would include payment of CRDP (if VA comp is 50% or more) and that computation would involve the REDUX formula as explained earlier. If CRSC was chosen after its approval, one of the ceilings is the longevity amount. In this case,the REDUX formula would be used To determine the longevity multiplier.

5. The 19 AD case would NOT include CRDP. If CRSC was approved, one of the ceilings is the longevity amount. In this case, the REDUX formula would be used To determine the longevity multiplier.

Ron
 
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