Med Retirement or Regular

Kraken21

Well-Known Member
Registered Member
I recently completed my PEB, awarded 70% DOD, 100%VA P&T, and approved for PLD out to my 20 year mark. My question is should I accept a Medical retirement at 20 years (TDRL) or request the waiver & apply for a regular on the same date? Does it make a difference? Appreciate the community help/thoughts!
 
@RonG is the man with the plan on anything finance.

Going to your 20 year mark will most likely be the best way forward because you would then qualify for CDRP. This would allow you to receive your retirement pay and your VA pay.
 
@RonG is the man with the plan on anything finance.

Going to your 20 year mark will most likely be the best way forward because you would then qualify for CDRP. This would allow you to receive your retirement pay and your VA pay.
I second this statement!
 
I recently completed my PEB, awarded 70% DOD, 100%VA P&T, and approved for PLD out to my 20 year mark. My question is should I accept a Medical retirement at 20 years (TDRL) or request the waiver & apply for a regular on the same date? Does it make a difference? Appreciate the community help/thoughts!

I am not familiar with the term, "PLD".

Recommendations/comments:

1. Ensure you reach 20 years active duty (I inferred you were speaking about active duty rather than 20 good years in the reserves/NG).

2. Twenty years active duty qualifies you for immediate Concurrent Receipt (receive both retired pay and VA compensation). Twenty good years in reserve also qualifies one for Concurrent Receipt, but not until the age requirement of approximately 60.

3. There are many retirees who receive a CH 61 retirement but also had 20 years active duty. Personally, I don't see the financial benefit of having the medical retirement when one has 20 years AD. The multiplier for determining the retired pay is usually higher for the medical retirement, but with a CH 61 retirement, the retired pay is reduced by the amount of VA compensation received.

4. Occasionally, there is residual retired pay after the reduction, but the combination of residual retired pay and CRDP cannot exceed the amount determined as the longevity portion of the retired pay. (Multiplier: AD years x 2.5%)

Ron
 
Ron

How does this work if you get medically retired but you also have over 20 years? For simplicity sake, lets pretend you were rated 50% DOD/50% VA.
You are eligible for CRDP either way right?
 
Ron

How does this work if you get medically retired but you also have over 20 years? For simplicity sake, lets pretend you were rated 50% DOD/50% VA.
You are eligible for CRDP either way right?

Great question, except it would be even better if you said DOD 70% because at 20 years you are already 50% DOD by default of a 20 year career. I am interested to hear Ron's answer on this.
 
Ron

How does this work if you get medically retired but you also have over 20 years? For simplicity sake, lets pretend you were rated 50% DOD/50% VA.
You are eligible for CRDP either way right?
Earlier today, I mentioned: "4. Occasionally, there is residual retired pay after the reduction, but the combination of residual retired pay and CRDP cannot exceed the amount determined as the longevity portion of the retired pay. (Multiplier: AD years x 2.5%) "

There are multiple ceilings possible.
a. CRDP cannot exceed the amount of waived retired pay
b. CRDP cannot exceed the longevity portion or retired pay
c. The combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay.
d. Each case is different

Some comments.
--Cases where the residual retired pay is more than the longevity portion of retired pay results in zero CRDP. I worked a case like this only a couple of days ago elsewhere.
--Formula for combined residual retired pay and CRDP.
1. Determine amount of longevity portion of retired pay; AD years x 2.5% = longevity multiplier; longevity multiplier x high three = longevity portion of retired pay and maximum for CRDP.

2. Subtract residual retired pay from maximum CRDP = CRDP payable. CRDP payable + residual retired pay are the amounts paid by DFAS.

There are many possible scenarios. See the "multiple ceilings" remark.

DFAS.
You must be eligible for retired pay to qualify for CRDP. If you were placed on a disability retirement, but would be eligible for military retired pay in the absence of the disability, you may be entitled to receive CRDP.

Under these rules, you may be entitled to CRDP if…

  • you are a regular retiree with a VA disability rating of 50 percent or greater.
  • you are a reserve retiree with 20 qualifying years of service, who has a VA disability rating of 50 percent or greater and who has reached retirement age. (In most cases the retirement age for reservists is 60, but certain reserve retirees may be eligible before they turn 60. If you are a member of the Ready Reserve, your retirement age can be reduced below age 60 by three months for each 90 days of active service you have performed during a fiscal year.)
  • you are retired under Temporary Early Retirement Act (TERA) and have a VA disability rating of 50 percent or greater.
  • you are a disability retiree who earned entitlement to retired pay under any provision of law other than solely by disability, and you have a VA disability rating of 50 percent or greater. You might become eligible for CRDP at the time you would have become eligible for retired pay. [reserves/NG must attain the age requirement]


Ron
 
eerf123,

Re: "Ron How does this work if you get medically retired but you also have over 20 years? For simplicity sake, lets pretend you were rated 50% DOD/50% VA.
You are eligible for CRDP either way right? "

If one has 20 years AD or equivalent (not just 20 good years) and a DoD disability retirement plus a 50% or more VA rating, he/she is entitled to CRDP immediately. See my preceding post.

If one has 20 good years as a reservist/NG and a DoD disability retirement plus 50% or more VA rating, he /she is entitled to CRDP upon reaching the reserve retirement age. See my preceding post.

Ron
 
Last edited:
Great question, except it would be even better if you said DOD 70% because at 20 years you are already 50% DOD by default of a 20 year career. I am interested to hear Ron's answer on this.
Hello.

Example at 70% DoD disability retirement. Twenty years Active Duty and 50% VA compensation without dependents. High three average base pay is 4000 in this example.

1. 4000 x 0.70 = 2800 retired pay
2. 2800 - 893 (50% VA comp) = 1907 residual retired pay
3. 20 years AD x 0.025 = 50% longevity multiplier
4. 4000 x 0.50 = 2000 longevity portion of retired pay (this is the CRDP maximum)
5. 2000 - 1907 = 93 CRDP payable
6. DFAS pays: 1907 residual retired pay plus 93 CRDP = 2000 total
EXCEPT
The retiree waived only 893 which is another ceiling and that becomes the max CRDP. The residual retired pay far exceeds that amount so...zero CRDP would be paid, but the retiree receives the 1907 residual.


Items 1-6 show hows a 70% DoD rating would be computed. The "exception" is an oddity purposely placed to show that effect as well.

CRDP is restored retired pay. The 893 was the amount of retired pay waived/reduced/offset.

Ron
cc: @Guardguy11
 
Top