Just got paid by VACP Treasurer for CRSC Amount

AKtrooper345

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Hello all
I started receiving CRSC this month. I was paid my CRSC by DFAS on the first and recieved my CRSC back pay. Then today, I received a direct deposit from VACP TREASURER 310 for the same amount as my CRSC. Does anyone know why I am receiving this from both the VA and DFAS? Thanks
 

RonG

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Hello all
I started receiving CRSC this month. I was paid my CRSC by DFAS on the first and recieved my CRSC back pay. Then today, I received a direct deposit from VACP TREASURER 310 for the same amount as my CRSC. Does anyone know why I am receiving this from both the VA and DFAS? Thanks
Yes.

You would not receive CRSC if you did not receive VA compensation. The receipt of VA compensation causes your retired pay to be reduced by the amount of the compensation.

CRSC replaces some or all of the waived/reduced retired pay.

I think you are confusing the waiver of retired pay with VA comp. Only the amount of VA comp is used in the formula...you do not lose VA comp in this scenario.

Note: I was working another case...

Ron
 

AKtrooper345

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Ron
I understand how it works, I just don't know where this extra payment is coming from.

So far this month, I was paid the following
1) My VA 100% Comp from the VA
2) My retired residual or leftover from DFAS
3) CRSC backpay from DFAs
4) CRSC from DFAS

Then today I received an ADDITIONAL payment from the VA (NOT DFAS) for the same amount as my CRSC. Im trying to figure out why the VA just paid me for CRSC.
 

RonG

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Hello,

The VA does not pay CRSC...ever. If you received CRSC from the VA, you would be the first.
Frankly, it is impossible.

They sometimes pay retroactive VA compensation and refer to it as “CRDP” which is confusing since the DFAS has a pay item called CRDP. Perhaps you had a month of retro VA comp coming.

The following appears to be VA comp:
“VACP TREASURER 310”

I believe the CP stands for Compensation [or] Pension....VA Pension is not retired pay. The VA occasionally presents those words together.

Ron
[See post # 20 for more info.]
 

RonG

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The C&P VA examination that is often discussed is a good example of how Compensation & Pension is shortened to “C&P.”

Note: The source of funding for CRSC is different from VA funding.

DFAS never pays VA compensation.
VA never pays CRSC. [see post 14]
Ron
[See post # 20 for more info.]
 

AKtrooper345

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Registered Member
Those are both from my bank statement.

VA PAY: $3545.67
DFAS RET NET: $629.33
DFAS CRSC PAY: $441.67

^These are my monthly sources and amounts.

VACP TREAS 310: $441.67

^ I have absolutely no idea why the VA paid me this. Hopefully I'll get some correspondence in the mail or something.
 

RonG

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Those are both from my bank statement.

VA PAY: $3545.67
DFAS RET NET: $629.33
DFAS CRSC PAY: $441.67

^These are my monthly sources and amounts.

VACP TREAS 310: $441.67

^ I have absolutely no idea why the VA paid me this. Hopefully I'll get some correspondence in the mail or something.
Thanks for the info.

The best I can offer with the info provided is that the VA payment is an out of cycle payment. Sometimes when DFAS does the CRSC audit they discover that the VA still owes funds as well and that info is electronically shared with the VA. I have experienced that.
I also was the recipient of a DFAS audit that was incorrect to the tune of $5000. Anyway, that is unrelated...

Ron
[See post # 20 for more info.]
 

AKtrooper345

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Thanks a lot Ron! Probably going to push it to the side for a little to make sure it wasn't a wrong payment
 

RonG

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A possibility...

Some of your retired pay received in the past caused the VA to not pay part of the VA comp (because no waiver). Once that retired pay was recharacterized as CRSC, that allowed a simultaneous payment of VA comp.

This is going deep into the well and difficult to explain in a forum, but it does occur.

Please report how this turns out.

Ron
[See post # 20 for more info.]
 

RonG

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AKtrooper345,

I was provided a copy of a VA letter this evening which states they (VA) are going to pay the retiree a certain amount of CRSC. They cited a law that does NOT pertain to CRSC; it was a reference to CRDP which is a different payment.

First, a few comments about funding for certain payments.
--Military Retirement Fund (MRF): Retired Pay, including CRDP paid by DFAS and USCG. Note: CRDP is retired pay that has been restored.

--VA Funding: The FY 2020 budget includes $97 billion (an increase of $6.8 billion, or 7.5 percent) in discretionary funding, including resources for health care, benefit administration, and national cemeteries, as well as $123.2 billion (an increase of $12.3 billion or 11.1 percent) in mandatory funding above 2019 for benefit programs inclusive of Compensation and Pensions, Readjustment Benefits, Housing and Insurance.

--CRSC paid by DFAS and USCG: Although CRSC is not considered retired pay (it is non-taxable compensation), it is funded through the Department of Defense Military Retirement Fund .

The following law was cited in the VA "CRSC Payment Letter":
38 CFR § 3.750 - Entitlement to concurrent receipt of military retired pay and disability compensation
which is CRDP, not CRSC. There are occasions where retro VA compensation is paid to retirees eligible for CRDP under the CRDP program, but it is VA compensation.

In closing:

It appears that the VA has begun to refer to certain payments they make as CRSC. That is technically inaccurate, but I suppose they can call it what they choose.
I suggest that anyone who receives funds from the VA consider it VA compensation (possibly retroactively paid). Of course there are other forms of VA payments but those are rarely discussed on this board.

Ron
[See post # 20 for more info.]
 

RonG

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AKtrooper345,

The recent development of the VA characterizing certain payments made by the VA as CRSC is tantamount to a doctor removing a patient's gall bladder and subsequently telling the patient, "Your recovery from prostate surgery is going well." The point being, one is unrelated to the other.

Perhaps you could share a redacted copy of the DFAS audit that prompted the VA payment (the DFAS shares audit info with the VA). The mischaracterization might have occurred at DFAS, although I doubt it. If it appears that DFAS committed the error, I'll write a letter to the Director, Cleveland-DFAS pointing it out. Although he is not a friend and I have not seen him since 1989, I know the Director. He was once a Staff Sergeant working as the Chief, Travel Branch in Heidelberg, Germany before I moved on to a battalion in Giessen.

Your help in this matter is appreciated.

Ron
[See post # 20 for more info.]
 

AKtrooper345

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Registered Member
Ron
I absolutely will assist. I am still awaiting the letter. I will report back once I receive the correspondence.
 

Camp P Marine

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I had the same issue. The VA withheld your military retirement pay for XX months until you we awarded VA Compensation. Appears to be one month at 30%. Since they withheld that amount, but now you are entitled to it, the VA pays it. You should get a letter from the VA about this.

It is a return of your withheld retired pay, since CRSC now entitles you the previously withheld money.

It reads in part:

Based on your entitlement in your military retired/combat pay and the VA records, you are entitled to a retroactive compensation payment of $444.00. This payment covers the period MM-YYYY through MM-YYYY.
 

RonG

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I had the same issue. The VA withheld your military retirement pay for XX months until you we awarded VA Compensation. Appears to be one month at 30%. Since they withheld that amount, but now you are entitled to it, the VA pays it. You should get a letter from the VA about this.

It is a return of your withheld retired pay, since CRSC now entitles you the previously withheld money.

It reads in part:

Based on your entitlement in your military retired/combat pay and the VA records, you are entitled to a retroactive compensation payment of $444.00. This payment covers the period MM-YYYY through MM-YYYY.
The VA does not withhold retired pay, nor do they pay it and any “CRDP” or “CRSC” the VA shows as a payment is actually VA compensation.

The VA often withholds VA compensation if a waiver of retired pay has not been certified by the retiree. The VA will withhold VA compensation in a retroactive case in the amount that equal the the amount of retired pay that must be waived/reduced...until they receive a copy of the DFAS audit. The VA will pay retro compensation where it was withheld due to the full receipt of retired pay until part or all of that paid retirement pay is recharacterized
as CRSC which releases the previously withheld VA comp. These examples are not all inclusive, others exist.

The replacement of waived retired pay (CRSC) and restoration of waived retired pay (CRDP) are paid from the Military Retirement Fund.
VA compensation is paid from the funds allocated to the VA.

DFAS pays: CRSC, CRDP, and retired pay.
VA pays: VA compensation (irrespective of the language in an accompanying letter).

Part of the confusion in the preceding post is likely due the reduction of retired pay in the amount of VA compensation received.
That is not done by the VA; it is done by the DFAS in accordance with current law. The amount is based on the VA comp received..but the VA does not receive that reduction/waiver.

There are many scenarios that could involve the VA paying retro VA compensation. There are zero scenarios where the VA actually pays CRSC (which comes from the Military Retirement Fund).

Ron
[See post # 20 for more info.]
 

RonG

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RE: CRSC paid by the VA?

To quote the VA: "“Please understand that CRSC is not a VA program. To receive CRSC, you must submit your application (DD form 2860) through your parent military service branch. Each service branch has the authority to determine your eligibility.”

LINK to VA discussion (included) about CRSC <----

As I stated earlier, "The VA does not withhold retired pay, nor do they pay it and any “CRDP” or “CRSC” the VA shows as a payment is actually VA compensation."

One can read about Redesigned Automated Decision Letters (RADL) at

M21-1, Part III, Subpart v, Chapter 2, Section B - Decision Notices

4. Decision Notices Prepared Using the RADL Process


III.v.2.B.4.d. Sections of an RADL-Generated Decision Notice

I did not notice examples of letters; however, they might exist elsewhere. Bottom Line: CRSC is paid by DFAS (and USCG).

Ron
[See post #20 for more info.]
 

RonG

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20 August 2019.

Upon further review...

Although the DFAS pays benefits that have the titles of CRDP (Concurrent Retirement Disability Pay and CRSC (Combat Related Special Compensation), those terms (CRDP and CRSC) are also used by the VA to categorize payments of VA compensation associated with those program. Those payments are made under the authority of those two programs, but have separate funding.

Before explaining in more detail, it is important to remember that the payments made by DFAS under those terms are:
CRDP: Restoration of retired pay or "the mechanism that allows concurrent receipt."
CRSC: Replacement of waived retired pay associated with combat related disabilities.

Payments made by the VA that are associated with CRDP and CRSC are VA compensation. Additionally, the VA does not evaluate nor approve CRSC claims or payments.

Audit Error Worksheets (AEW) (documentation provided by DFAS after an audit) are the source of information that the VA uses to make certain retroactive payments of VA compensation to retirees.

VA Internal Processing of AEWs:
[The Redesigned Automated Decision Letter (RADL) was implemented earlier this year.]

M21-1

III.v.5.A.8.t. Notification of Award Adjustments Associated With the Processing of an AEW


After processing an AEW, notify the Veteran who was the subject of the AEW of any associated award adjustments.

Notes:

Enclose a copy of the AEW with the notice.

Use of the AEW Assistant to generate the notice is mandatory. (The AEW Assistant is accessible through the Letter Creator tool.)

The table below shows the text the decision notice must contain.

If the Veteran is entitled to a retroactive payment of benefits, Letter Creator tool inserts the following paragraph:

Based on the information in your military retired pay files and VA records, you are entitled to a retroactive [CRDP or CRSC] compensation payment of [amount]. This payment covers the period [month, day, and year] through [month, day, and year]. The figures used to calculate this amount are shown on the last page of this letter.

If the Veteran is not entitled to a retroactive payment of benefits because VA did not withhold benefits based on the Veteran’s receipt of MRP, Letter Creator tool inserts the following paragraph:

Based on the information in your military retired pay files and VA records, you are not entitled to a retroactive [CRDP or CRSC] compensation payment. All prior withholdings from your VA compensation payments were for [reason for prior withholdings, such as drill pay adjustments, apportionment adjustments, etc.] and not for retired pay. Therefore, no additional adjustments will be made in your compensation award for [CRDP or CRSC].

If the Veteran is not entitled to a retroactive payment of benefits because the Veteran already received a lump sum payment (representing an award adjustment based on the Veteran’s receipt of CRDP/CRSC) for the same time period covered by the AEW, Letter Creator tool inserts the following paragraph:

Based on the information in your military retired pay files and VA records, you are not entitled to a retroactive compensation payment because according to our records, you were issued a lump sum payment in the amount of [amount previously paid] on [month, day, and year]. This payment represented [CRDP or CRSC] for the period [month, day, and year] to [month, day, and year]. You are not due any additional [CRDP or CRSC] payments from VA. If you think your Retired Pay Center (RPC) may owe you additional [CRDP or CRSC], please contact them at the numbers shown below.

--------------


Opinion: This unusual use of semantics is going to cause some confusion regarding retroactive payments in some cases. It reminds me of George Foreman who gave the name "George" to each of his five sons...

Ron
 
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