Indvidual Unemployability and CRSC--Can I receive payment of CRSC at 100% for IU?

RonG

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There was a recent question about IU and CRSC that I cannot find. [added later: It was on another board I visit. RG]
Hopefully, this post will be seen by the veteran who asked the question.

Individual Unemployability (IU) is paid by the VA at the 100% rate to veterans who are rated at 60% or higher and meet certain other conditions.

From the VA: Who Is Eligible for Individual Unemployability?
• You must be a Veteran.
•You must be unable to hold a job as a result of service-connected disabilities. This means maintaining substantially gainful employment. (VA considers odd jobs as marginal employment. They do not affect your eligibility for IU.)
• You must have either:
-- One disability that is rated at 60 percent
--or more Multiple disabilities, with one disability rated at 40 percent or higher, and a total rating of 70 percent or more.

CRSC approval authority is with each service branch. Each has a CRSC web page.

The question was: Can I receive payment of CRSC at 100% for IU?

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

May 2022 63-13

8.1.3. Retired Members Considered Unemployable. Under the laws governing the VA, members who qualify for the Individual Unemployability supplement to VA Disability Compensation under the provisions of 38 CFR 4.16 are entitled to receive monthly VA disability compensation payment equal to the amount that they would receive if rated by the VA as 100 percent disabled. In such cases, DFAS will coordinate with VA to determine the amount of VA Disability compensation actually provided to the member, irrespective of the VA schedule rating percentage. CRSC entitlement will be determined based on the amount of VA Disability compensation actually paid by the VA and the amount of military retired pay waived to receive VA Disability compensation, subject to the other criteria and limitations found in this chapter. See paragraphs 8.2 and 8.5.

*8.2 Adjusted Amount The CRSC payment may not exceed the current reduction in retired pay applicable to the retiree under 38 U.S.C. § 5304 and 38 U.S.C. § 5305. Thus, CRSC is not payable if there is no reduction because the member is not receiving any monthly disability compensation from VA, or because the member is not receiving retired pay (such as a reserve member before reaching retirement age at 60 or other reduced retirement age), or for other reasons (such as a member who waives military retired pay in order to credit military service for a civil service retirement). The amount of a member’s CRSC entitlement will be adjusted to be the lesser of the gross CRSC from paragraph 8.1 or the reduction to the retired pay entitlement.
-----

Added by Moderator: Generally, the amount of CRSC payable to a disability retiree is the lesser (lower amount)
of
a. The longevity portion of retired pay
or
b. The amount in the VA compensation tables for the CRSC percentage approved by the retiree's branch of service.

Ron
 
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