Help Understanding CRSC vs CRDP and VA Waiver.

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James4ta

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I need help understanding CRSC vs CRDP and VA Wiaver. I am currently getting CRDP under calculation Method A of $4,676. The calculation under Method B is $3,716, a difference of $960.

I am also getting VA disability of $4,566.10 for myself, spouse, one child under 18 and another college age child and I am 100% P&T. 70% of that is for a combat connected disability.

My questions are, would CRSC benefit me and my family in any way? It appears that my VA benefit may go down if I apply for CRSC to regain the $960 VA waiver but I can’t find any literature or calculators that can provide a comprehensive explanation of what would happen to my individual pays, or show me a calculated comparison.

Am I just stuck with the VA Waiver or is there a way to change that with DFAS without affecting my VA payout?
 
James4ta said:
I need help understanding CRSC vs CRDP and VA Wiaver. I am currently getting CRDP under calculation Method A of $4,676. The calculation under Method B is $3,716, a difference of $960.

I am also getting VA disability of $4,566.10 for myself, spouse, one child under 18 and another college age child and I am 100% P&T. 70% of that is for a combat connected disability.

My questions are, would CRSC benefit me and my family in any way? It appears that my VA benefit may go down if I apply for CRSC to regain the $960 VA waiver but I can’t find any literature or calculators that can provide a comprehensive explanation of what would happen to my individual pays, or show me a calculated comparison.

Am I just stuck with the VA Waiver or is there a way to change that with DFAS without affecting my VA payout?
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If you qualify for CRDP you are maxing out gross compensation. Most apply for CRSC because they don't qualify for CRDP. I think a lot of people don't understand that and are told to apply for CRSC when there is no financial benefit for them. CRSC is mostly for people that don't make it to 20 years. My wife needed CRSC to make her whole because she didn't hit 20 AFS and so even with 75% DOD she was losing out on $1,500 a month because her longevity pension earned at 17 years + VA compensation was $1,500 more than she was getting.
 
I guess that confirms one question. I didn’t think applying for CRSC would help.

Do you know if because the 70% is combat related, could that affect the VA Waiver under chapter 61 or am I just stuck with DFAS taking $960 out of my retirement?
 
James4ta said:
I guess that confirms one question. I didn’t think applying for CRSC would help.

Do you know if because the 70% is combat related, could that affect the VA Waiver under chapter 61 or am I just stuck with DFAS taking $960 out of my retirement?
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Hello @James4ta,

I interpreted your comments as showing you have a disability retirement, but also qualified for a regular (20 AD) retirement.

Entitlement Amount (for Retirees Who Are Entitled to Retired Pay Due to Retirement Under Chapter 61 for Disability):​

A military disability retiree with more than 20 years of creditable service for retirement must still waive retired pay in order to receive VA Disability Compensation. The waiver amount is the amount that the military disability retired pay exceeds the amount of military retired pay to which the member would have been entitled to receive if the member had hypothetically been retired under another law (such as the law that permits voluntarily retirement based on longevity/years of service). As a result, the amount of military disability retired pay that a disability retiree may receive concurrently with VA Disability Compensation may be limited. (Disability retirees who retired before December 31, 2013 were also subject to the phase-in described above).

Example: A regular component service member is retired under Chapter 61 for disability in 2020 after completing more than 20 years of creditable service under 10 U.S.C. § 1405. The member is also entitled to VA Disability Compensation based on a service-connected disability that is rated by VA as 50 percent disabling. This member may only receive concurrent military disability retired pay in an amount equal to what the member would have hypothetically received had the member retired for longevity/years of service. Any remaining amount of military disability retired pay is still subject to the waiver requirements of Title 38 United States Code (U.S.C.), sections 5304 and 5305.

If your CRSC was approved at 70% (if chosen over CRDP *old term*) you would lose money because the waiver requirement for CRSC is the full amount of the VA payment and only the 70% amount in the VA comp tables would be paid as CRSC in your case.

If otherwise eligible, one can receive CRSC or CRDP (old term), but not simultaneously. It is one or the other. See @Provis comments above.

Ron
 
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James4ta said:
Thanks Ron, that adds clarity. I guess when I was told I would get concurrent receipt, they didn’t explain the effect of chapter 61 and the VA waiver. This helps to understand.
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yeah, Like you already know, because you're Ch. 61 retiree, you "automatically" MUST have a WAIVER even if you're over 20 years active duty
The Way the waiver is Calculated is :

Example:
DOD% amount, in this case is $3,600 - your LOS amount, ( $2,520) = $1,080

LOS- calculation
1. YOS X 2.5% X high 3
21 x2.5% x 4800 = $2,520

DOD % Calculation
2: DOD% X high 3
75% x $4,800 = $3,600

Way for ch. 61 to NOT have a WAIVER
1. Have LOS calculation pay be MORE than DOD% calculation pay (see reference below)

https://www.dfas.mil/RetiredMilitary/disability/crdp/
https://comptroller.defense.gov/portals/45/documents/fmr/current/07b/07b_64.pdf
 
If you have combat injuries, any combat injuries, ALWAYS apply for CRSC. DFAS will do the calculations and send you the higher of CRDP or CRSC. Every year you also get the option to chose between the two if you want to change. So its not like you get stuck with less money just because you applied for CRSC. Dont miss out on money because you didnt undertand the calculations or asked someone else who also didnt understand the calculations.
 
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