JUST GOT APPROVED FOR CRDP - GOT QUESTIONS

[RonG]

thank you RON

You are welcome; it is a complex and confusing program in my opinion.

CRDP and CRSC for regular retirements (20 year AD) are straightforward. The laws we discussed have additional factors/limitations that apply to disability retirees. Those whose "other retirement eligibility" is for service in the reserves have the age requirement (~60).

The most complex computations are for the Career Status Bonus (CSB)/REDUX program.
REDUX: Members who entered the service after July 31, 1986 are given a choice of two retirement plans when they reach their 15th year of active service:
--High-3 Year Average
--Career Status Bonus (CSB)/REDUX
Military members who elect CSB/REDUX are eligible to receive a $30,000 bonus when they reach their 15th year of active service, but will also have their retired pay calculated at a reduced rate.

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Here are some remarks I initially posted (on another board) circa 2013 and updated in 2017: Waiver of Retired Pay in Order to Receive VA Compensation <----LINK

Ron

 

[MAJ PAINE]

Ron,

Thank you for all your knowledge and sharing with everyone on here. I am currently in the Reserves with 12 years. I was recently granted a 90% VA disability rating with 100% unemployable rating. I have an upcoming PEB board. With the chapter 61 retirement, at under 20 years, what can I expect as far as retirement pay? Is it one or the other as far as retirement pay and VA disability pay? Thank you for all your advice on here.

 

[RonG]

Ron,

Thank you for all your knowledge and sharing with everyone on here. I am currently in the Reserves with 12 years. I was recently granted a 90% VA disability rating with 100% unemployable rating. I have an upcoming PEB board. With the chapter 61 retirement, at under 20 years, what can I expect as far as retirement pay? Is it one or the other as far as retirement pay and VA disability pay? Thank you for all your advice on here.

Hello,

Thank you for your kind remarks.

" With the chapter 61 retirement, at under 20 years...":
1. You mentioned 12 years. I assume those are active duty years or active duty equivalent years.
Your retired pay will be the DoD percentage you receive (unless your longevity multiplier is higher) x your high three average base pay.

2. The longevity multiplier is active duty or active duty equivalent years x 2.5%.

3. Your retired pay will be reduced dollar for dollar in the amount of VA compensation you receive. Any left over/residual retired pay will be paid to you each month.

4. "Is it one or another?" That is a wide-spread misconception that possibly results in some CH 61 retirees losing funds.
Facts:
--In order to receive VA compensation, a CH 61 retiree must agree to waive retired pay. As mentioned at item 3, your retired pay will be reduced dollar for dollar in the amount of VA compensation amount you receive. I recently saw a case where the left over/residual retired pay was >$2000. That individual received their VA compensation plus $2000 retired pay.
Note: Usually the residual retired pay, if any, is much lower than $2000. A couple of hundred dollars is common.

--If you decline VA compensation, you receive only retired pay.

5. Opinion: I can determine no reason to decline VA compensation since any retired pay in excess of the VA compensation amount will be retained. Also, VA compensation is nontaxable.

6. Since you posted in a CRDP thread, that suggests you might have "20 good years" in the reserves. If you do have "20 good years" please replay with that information since that could possibly result in CRDP not to exceed the dollar amount of the longevity portion of retired pay.

7. If you have combat related disabilities, CRSC might be a consideration. See CRSC Information <---LINK

Ron

 

[RonG]

Thread closed; initial questions answered long ago.

New CRDP questions/threads can be posted in the CRDP forum.

CRDP Forum LINK <-----

New thread in that forum:
Click on the red POST THREAD button (upper right of page).

Ron