MEB/VA/CRSC

H

HottyToddyUSCG

PEB Forum Regular Member
Registered Member
First of all thank you all for all your help. This forum tends to answer question that I can't even get from the admin people on base....

That said I'm trying to estimate my take home retirement pay and I've found a couple of things and no one seems to be able to answer....

I got my MEB board results back and I'm getting retired with 50 percent combat related. They are going to put me on the TRDL and I'm positive it will turn into PDRL after a couple of years. I found on DFAS that if you are retired on the TDRL/PDRL that your base pay is not taxable... See below... Is this correct?


TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.

That said I'll be retiring as a O3 with the following....

Grade: O3 - 15 years AD and 23 years for Pay with the Reserves.
Base Pay: 20 years AD would be 3367 - For 23 years of total service(AD and reserves) my pay would be 3872. Would I get 20 years or the lower? I'm thinking right at 20 years for pay.
VA - 80 Percent - 1867 - Spouse with one Child age 8.
CRSC - This is where I'll need the help from the board.

Here are my questions if y'all could help...

1) Is my base pay retirement tax free via DFAS?
2) Would I get 20 years or 23 years for retirement?
3) What would CRSC be?

CRSC has zero calculators and I've looked everywhere. If you know of one please post a link....

Thank you all so much in advance!
 
1. Your retired pay will be High Three Average Base Pay x 50% (TDRL) = DoD retired pay
If your military disability rating is combat-related = nontaxable

2. Your retired pay will be reduced dollar for dolllar in the amount of VA compensation. Any residual/left over retired pay will be paid to you.

3. Do you qualify for a reserve retirement (i.e., 20 good years in reserve)? That impacts the possibility of CRDP once you attain the reserve retirement ago, normally 60.

4. If you would like to have a detailed computation, including CRSC, please provide ALL the info cited at Path for Information Required for CRSC Estimate: LINK <---
Note: Your CRSC cannot be more than the waived/reduced retired pay.
For CH 61 retirees with less than 20 years AD, the combination of residuall retired pay plus CRSC cannot exceed the dollar amount of the longevity portion of retired pay OR the CRSC approved rate by service...whichever is less. Both involve the "combination."

Ron
 
Hello,

You said:
Grade: O3 - 15 years AD and 23 years for Pay with the Reserves.
Base Pay: 20 years AD would be 3367 - For 23 years of total service(AD and reserves) my pay would be 3872. Would I get 20 years or the lower? I'm thinking right at 20 years for pay.
VA - 80 Percent - 1867 - Spouse with one Child age 8.
CRSC - This is where I'll need the help from the board.
-------------
Comments:

I do not know where the 3872 comes from. Since your AD x 2.5 is less than the 50% minimum TDRL rate...the multiplier would be 50% for disability retirement. The $3872 divided by 0.50 does not result in a high three that seems to fit an O-3 with 23 years for pay.

I've deleted the computation that was based on multiple inferences.

For an accurate computation:

The information associated with all of the six numbered items below is needed. Incomplete answers will preclude an accurate estimate. Each numbered item below is a factor in the CRSC calculation.

1. High three base pay average for retirement . The high-36 method is the average of the highest 36 months of basic pay. This is generally the last 3 years of service and is sometimes called high-3. EXAMPLE: High three average $3333

2. DoD disability retirement percentage. EXAMPLE: 50% DoD

3. Years and months of active duty EXAMPLE: 11 years and 3 months
Note: The creditable years of service (active duty equivalent) for a reserve calculation is determined by the sum of accumulated reserve points divided by 360.

4. VA compensation:
-- percentage
and
--amount
plus
--identify dependents by category and number EXAMPLE: 60% VA Compensation, $1600, Spouse and 6 children under 18
and
---Any SMCs awarded and amount(s)

5. Approved or expected combat related disability percentage (application was required). EXAMPLE: 70% CRSC approved

6. Do you qualify for another type retirement besides CH 61 disability? EXAMPLE: Yes, Reserve Retirement

Note: All the info listed above is necessary Often, the reply omits much of the needed info, precluding an accurate computation.



Ron
 
Last edited:
This is posted in case you qualify for CRDP (separate from CRSC issues).

Miscellaneous information that clarify some of the considerations if you have reserve time and and qualify for a reserve retirement (and possibly CRDP). Note: The information you have shared does not confirm you have "20 good years" for a reserve retirement. Your info that, "23 years for Pay with the Reserves," does not necessarily indicate you met the service requirements for reserve retirement. In other words, 23 years for pay does not equate to "20 good years" for retirement.

High-Three: Average of highest 36 months of basic pay. For the Disability retirement plan, the multiplier may be the higher of 2.5% for each year of active duty service or the disability percentage assigned by the Service at retirement. However, note that the disability retirement multiplier is capped at 75%.

Active Duty Equivalent for Reserve Time: (Also known as Years of Service for Retired Pay Percentage Multiple) This determines the years of service for computing the retired pay multiplier. This category of years of service includes all periods of active service (counted as one point for each day) plus all points earned through qualifying reserve duty, not exceeding annual limits, divided by 360.

"20 Good Years": Generally, a member retiring with a Reserve (non-regular) retirement must have 20 years of service (also know as "20 good years") for entitlement and they will receive a letter from their Service advising when this criteria has been met.

Years of Service for Retirement Entitlement. This category of years of service includes each one year period in which the person has been credited with at least 50 points, as follows:
--1 point for each day of active service
--1 point for each attendance at a drill period
--1 point for each day of performing funeral honors duty
--15 points for each year of membership in a reserve component

The years of service includes all periods of active service and all periods of Reserve or National Guard service counted day for day as shown above.
Generally, a member retiring with a Reserve (non-regular) retirement must have 20 years of service ("good years") for entitlement and they will receive a letter from their Service advising when this criteria has been met.

Reserve Retirement Age: This is also important for Chapter 61 retirees who qualify for CRDP through reserve retirement eligibility. A member is generally not eligible for Reserve (non-regular) retired pay until they reach age 60. However, any member of the Ready Reserve who is recalled to active duty or, in response to a national emergency, is called to certain active service after January 28, 2008, shall have the age 60 requirement reduced by 3 months for each cumulative period of 90 days so performed in any fiscal year after that date.

Ron
 
You must log in or register to reply here.
Top