FERS--Credit for Military Service--Retired Pay--CRSC (Odds & Ends)

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RonG

RonG

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General information (note, this section does not address CRSC. CRSC is NOT retired pay; it is a special compensation. Conversely, CRDP is retired pay (restored).)

Retirement Services FERS INFORMATION​


Reference: Military Retired Pay <---LINK

Crediting Military Service for FERS When You Are Receiving Military Retired Pay​

You cannot receive credit for any military service in your FERS retirement computation, if you are receiving military retired pay, unless you were awarded the retired pay:
  • Due to a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war, or
  • Under the provisions of Chapter 1223, Title 10, U.S.C. (pertaining to retirement from a reserve component of the Armed Forces).
However, you can elect to waive the retired pay and have the military service added to your civilian service in computing your FERS annuity. In addition to waiving your military retired pay you MUST pay a deposit for your post 1956 military deposit prior to separating from your agency in order for it to be creditable in your FERS retirement case.

How to Waive Your Military Retired Pay​

If you want to waive your military retired pay to receive credit for military service in the computation of your FERS or CSRS benefit, you should write the Retired Pay Operations Center at least 60 days before your planned retirement. Send your waiver to:
Defense Finance and Accounting Service
U.S. Military Retirement Pay
8899 E 56th Street
Indianapolis, IN 46249-1200
Click to expand...
You can "fax" your request to 1 (800) 469-6559.
Suggested wording for your request is as follows:
"I (Full Name and Military Serial Number) hereby waive my military retired pay for Civil Service Retirement or Federal Employees Retirement System purposes effective (The day before your annuity begins). I hereby authorize the U.S. Office of Personnel management to withhold from my (CSRS or FERS) annuity any amount of military retired pay granted beyond the effective date of this waiver due to any delay in receiving or processing this request."
Click to expand...
[end of FERS quotation]
---------------------------------------------------
CRSC Info:

DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63

30403. Entitled to Retired Pay
A. A member must be entitled to retired pay, notwithstanding that such retired pay may be reduced due to receipt of VA disability compensation. A reservist who has not reached the requisite age to receive retired pay (generally age 60) is not eligible to receive CRSC payments. See Chapter 1, subparagraph 010308.F, for when the eligibility age of a reservist will be reduced below 60 years of age and become eligible for retired pay.
B. A member who waives retired pay in order to credit military service for the purposes of establishing eligibility for a civil service retirement, or for any reason other than to receive disability compensation from the VA, is not eligible to receive CRSC payments. A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC if the member is still eligible to receive military retired pay. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility.

[end of CRSC info]

Ron
(not a FERS expert)
 
Last edited:
RonG said:
General information (note, this section does not address CRSC. CRSC is NOT retired pay; it is a special compensation. Conversely, CRDP is retired pay (restored).)

Retirement Services FERS INFORMATION​


Reference: Military Retired Pay <---LINK

Crediting Military Service for FERS When You Are Receiving Military Retired Pay​

You cannot receive credit for any military service in your FERS retirement computation, if you are receiving military retired pay, unless you were awarded the retired pay:
  • Due to a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war, or
  • Under the provisions of Chapter 1223, Title 10, U.S.C. (pertaining to retirement from a reserve component of the Armed Forces).
However, you can elect to waive the retired pay and have the military service added to your civilian service in computing your FERS annuity. In addition to waiving your military retired pay you MUST pay a deposit for your post 1956 military deposit prior to separating from your agency in order for it to be creditable in your FERS retirement case.

How to Waive Your Military Retired Pay​

If you want to waive your military retired pay to receive credit for military service in the computation of your FERS or CSRS benefit, you should write the Retired Pay Operations Center at least 60 days before your planned retirement. Send your waiver to:

You can "fax" your request to 1 (800) 469-6559.
Suggested wording for your request is as follows:

[end of FERS quotation]
---------------------------------------------------
CRSC Info:

DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63

30403. Entitled to Retired Pay
A. A member must be entitled to retired pay, notwithstanding that such retired pay may be reduced due to receipt of VA disability compensation. A reservist who has not reached the requisite age to receive retired pay (generally age 60) is not eligible to receive CRSC payments. See Chapter 1, subparagraph 010308.F, for when the eligibility age of a reservist will be reduced below 60 years of age and become eligible for retired pay.
B. A member who waives retired pay in order to credit military service for the purposes of establishing eligibility for a civil service retirement, or for any reason other than to receive disability compensation from the VA, is not eligible to receive CRSC payments. A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC if the member is still eligible to receive military retired pay. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility.

[end of CRSC info]

Ron
(not a FERS expert)
Click to expand...
RonG,

So, if I "bought back my years of active duty" when I was working as a civil servant, am I to understand that means I cannot draw my military retirement pay when I turn 60? I'm so confused by this wording. Thanks for taking the time to help us poor veterans out.

RebelSam
 
Hello @RebelSam

Bottom line up front: When a military retiree waives his/her retired pay in order to receive VA compensation, they are not still receiving it (obviously). I agree that this is confusing: "A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC if the member is still eligible to receive military retired pay." DFAS has replied to a couple of inquiries about this issue and per anecdotal evidence, if a retiree who uses his/her military time to enhance their civil service retirement, they are NOT eligible for CRSC.

Retired & Annuitant Pay Customer Service Local Phone Number is Changing ​

The local phone number to reach Retired & Annuitant Pay Customer Service is changing. The new number is available to use NOW: 317-212-0551.
The 216-522-5955 local phone number will NOT be available to use after July 1, 2022.
The DSN number to reach Retired & Annuitant Pay Customer Service will also change. The new DSN number is 699-0551.
This change does NOT affect the toll-free number (1-800-321-1080). The toll-free number will remain the same.

1. In order to receive VA compensation, a retiree must waive (lose) retired pay dollar for dollar in the amount of VA compensation.
2. Most disability retirees do not qualify for CRDP, which is a restoration of waived retired pay. If a disability retiree qualifies for another military retirement besides the disability retirement, they might qualify for CRDP.
3. CRSC replaces some or all of waived retired pay. See item 4 for info pertaining to CRSC and waiver of retired pay in order to credit military service for establishing eligibility for civil service retirement.
4. DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63

30403. Entitled to Retired Pay
A. A member must be entitled to retired pay, notwithstanding that such retired pay may be reduced due to receipt of VA disability compensation. A reservist who has not reached the requisite age to receive retired pay (generally age 60) is not eligible to receive CRSC payments. See Chapter 1, subparagraph 010308.F, for when the eligibility age of a reservist will be reduced below 60 years of age and become eligible for retired pay.
B. A member who waives retired pay in order to credit military service for the purposes of establishing eligibility for a civil service retirement, or for any reason other than to receive disability compensation from the VA, is not eligible to receive CRSC payments. A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC if the member is still eligible to receive military retired pay. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility.

5. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility. They can also discuss CRSC matters with DFAS, Retired Pay.


------------
Ron
(NOT a FERS expert)
 
RonG said:
Hello @RebelSam

Bottom line up front: When a military retiree waives his/her retired pay in order to receive VA compensation, they are not still receiving it (obviously). I agree that this is confusing: "A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC if the member is still eligible to receive military retired pay." DFAS has replied to a couple of inquiries about this issue and per anecdotal evidence, if a retiree who uses his/her military time to enhance their civil service retirement, they are NOT eligible for CRSC.

Retired & Annuitant Pay Customer Service Local Phone Number is Changing ​

The local phone number to reach Retired & Annuitant Pay Customer Service is changing. The new number is available to use NOW: 317-212-0551.
The 216-522-5955 local phone number will NOT be available to use after July 1, 2022.
The DSN number to reach Retired & Annuitant Pay Customer Service will also change. The new DSN number is 699-0551.
This change does NOT affect the toll-free number (1-800-321-1080). The toll-free number will remain the same.

1. In order to receive VA compensation, a retiree must waive (lose) retired pay dollar for dollar in the amount of VA compensation.
2. Most disability retirees do not qualify for CRDP, which is a restoration of waived retired pay. If a disability retiree qualifies for another military retirement besides the disability retirement, they might qualify for CRDP.
3. CRSC replaces some or all of waived retired pay. See item 4 for info pertaining to CRSC and waiver of retired pay in order to credit military service for establishing eligibility for civil service retirement.
4. DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63

30403. Entitled to Retired Pay
A. A member must be entitled to retired pay, notwithstanding that such retired pay may be reduced due to receipt of VA disability compensation. A reservist who has not reached the requisite age to receive retired pay (generally age 60) is not eligible to receive CRSC payments. See Chapter 1, subparagraph 010308.F, for when the eligibility age of a reservist will be reduced below 60 years of age and become eligible for retired pay.
B. A member who waives retired pay in order to credit military service for the purposes of establishing eligibility for a civil service retirement, or for any reason other than to receive disability compensation from the VA, is not eligible to receive CRSC payments. A member who combines his military time with his civil service time for the sole purpose of enhancing his civil service retirement may be eligible for CRSC if the member is still eligible to receive military retired pay. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility.

5. Members should consult the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) Handbook for Personnel and Payroll Offices for further information on eligibility. They can also discuss CRSC matters with DFAS, Retired Pay.


------------
Ron
(NOT a FERS expert)
Click to expand...
Thank you so much for helping me out by pointing me in the right direction! You guys are awesome in my book!

RebelSam
(used up old ROMAD)
 
You might want to check back later today (its 0230 Hrs as I write this). I have sent a message to a retiree who seems to have solved this problem and asked for his comments.

Ron
 
@RebelSam


I can explain my situation concerning FERS. I am a Chapter 61 retiree with my referred conditions being classified as a direct result of armed conflict/combat-related injury. The attachment is the excerpt from my PDRL orders. These two lines on my orders are what the regulation statements in the first post are referring to (The last paragraph in this post hopefully explains the wording of the regulation). For your military time to count in your FERS without having to waive retired pay, your TDRL/PDRL orders have to have at least one of these two lines say "Yes". In my situation, due to my disability being caused by an armed conflict/combat-related AS DETERMINED BY THE PEB (not CRSC), all my active duty time was used to calculate my leave accrual date/rate, and in the case of FERS retirement, I did not have to waive my retired pay (the dollar for dollar reduced amount) and received my VA compensation and my CRSC.

If your TDRL/PDRL orders have a "No" on both lines, then you will have to waive retired pay in order to be eligible to receive a FERS retirement AND have to pay a deposit on those years (see creditable service page link). You will get your VA compensation because it is not retired pay.

The deposit is calculated by DFAS based upon your military earnings. I think my deposit was about $30k if I wanted my 15.5 years of service to count towards a FERS retirement. I only worked one year as a GS and did not pay the deposit because I knew I was not going to work for the government until retirement age. You can get the estimate from DFAS by submitting all the required documents on the DFAS webpage (see link below). You do not have to pay the deposit immediately, you have up to 3 years to make it interest-free once you start a federal job, and after the three years, you have to pay a small interest penalty to make the deposit. You can make the deposit at any time in your FERS career, it may just have interest charged if you make it later.

So to recap:
You cannot receive credit for any military service in your FERS retirement computation if you are receiving military retired pay unless you were awarded the retired pay: Due to a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentality of war and incurred in the line of duty during a period of war,------This is what the YES in either line on your TDRL/PDRL orders are referring to. AND CRSC does not qualify you because of the words "awarded the retired pay"--CRSC is not retired pay.

I cannot honestly answer your question about drawing your retired pay when you turn 60. I do not have any experience with Guard/Reserve retirements.

FERS Computation Formula:
www.opm.gov

Computation

Welcome to opm.gov
www.opm.gov www.opm.gov

FERS Creditable Service Page:
www.opm.gov

Creditable Service

Welcome to opm.gov
www.opm.gov www.opm.gov

DFAS Service Deposit Page:

1657128686340.png

The OPM regulations are very confusing about the specifics of these types of situations. It took me almost a month to get the Human Resources at the CPAC to understand my situation by having to point out where in OPM regulations it states all these points. They then had to send it up to whoever is higher than the CPAC to get verified because no one at the CPAC had any experience with my situation.

Also remember that a FERS retirement based on three things:
FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). So based on the FERS computation on how much your High 3 is for your federal job will determine how much you receive from it (1.0 or 1.1 percent of your high-3 average salary for each year of service).

Welcome to Benefits.gov | Benefits.gov

www.benefits.gov www.benefits.gov
 
@FmrArmyAvatr

Thank you for sharing your experience in this matter.

Ron

Added: Those with other questions of this type should begin a new thread. This one is closed.
 
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