Med Retirement Sep and VA Disability

T

Townbiz

PEB Forum Regular Member
Registered Member
Med Separation/Board + VA Disability

Looking for some info + guidance because I’m finding some conflicting and confusing info. I’m currently in the reserve approaching 19 yrs of total service comprised of 9 yrs of active duty service in the army (including about 3 yrs of IN + SF combat deployments) + 9 yrs reserve. I was granted 100% VA P&T disability a few months ago and recently had a significant flare up of a condition which is forcing me to take a physical profile and not be able to do the ACFT for the first time in my military career - long story short, things aren’t looking great for my degenerating body. My original plan was to make it to 20 yrs total service, retire, and wait until I turn 60 (or maybe 58ish since I have combat deployment time) to start drawing a pension of some flavor. Since my body took a turn for the worse, now I’m wondering if I should try to start a med board or med separation process either now (target completion BEFORE hitting 20 yrs total service) or later (target completion AFTER hitting 20 yrs of total service). I understand there is a lot of nuance to CRDP as well as CRSC so any help is appreciated! Thanks all.
 
Just stick it out until you can hit 20 years and then get put in the retired reserves which is gray area retiree. Getting kicked out at 19 years would be disastrous. Basically if you don't hit 20 years then you lose out on your reserve/guard pension because any VA compensation you get would offset it. Since you are 100% VA you would get nothing. Just VA and Tricare.

Too many ways to get screwed if you don't reach 20 good years! If you were to be MEB'd there is only 1 scenario where you come out ahead. You would need to be put in duty related IDES, have unfitting conditions totaling 30% or higher + after being medically retired you would need to apply for and receive CRSC with a high enough % to recoup the money lost due to the VA offsetting your chapter 61 pension..

Most Soldiers are put in non duty related IDES. Most times your branch of service (Especially the Guard) will say your medical issue wasn't caused by them and there aren't any easy ways to protest a non duty related IDES. Even if you get put in duty related IDES if you don't get 30% total from unfitting conditions then you are kicked out. No severance either in your situation with duty related with 20% or less DOD% and that is because accepting severance would cause you to lose your Guard/Reserve Pension. Instead you would be issued a 15 year letter and put in gray area retirement. However, only a 20 year letter allows you to get both your pension and VA compensation. So you end up at age 60 (or slightly less if reduced from qualified deployments) with your VA compensation and Tricare.
 
Thank you for the advice! I had also assumed that sucking it up and getting to 20 total good years before making my health issues noticeable to my reserve unit was the safest bet, but someone I met recently who got out at 19 with CRSC at 70% suggested that it would be in my best interest to follow a similar path that he did because alternatively if I wait to raise a flag about my health issues after 20, then I would be forced into a regular retirement (and not draw any pension until 60 yrs old).

Just to confirm/clarify, are you recommending I get to 20 and then try to seek a medical discharge (med board or med separation?) so I can start drawing pension pay earlier than age 60? I will be 43 years old when I hit 20 yrs of total service.

Any additional info on gray area retirements would help. Apologies for the dumb questions and thanks again!
 
Townbiz said:
Thank you for the advice! I had also assumed that sucking it up and getting to 20 total good years before making my health issues noticeable to my reserve unit was the safest bet, but someone I met recently who got out at 19 with CRSC at 70% suggested that it would be in my best interest to follow a similar path that he did because alternatively if I wait to raise a flag about my health issues after 20, then I would be forced into a regular retirement (and not draw any pension until 60 yrs old).

Just to confirm/clarify, are you recommending I get to 20 and then try to seek a medical discharge (med board or med separation?) so I can start drawing pension pay earlier than age 60? I will be 43 years old when I hit 20 yrs of total service.

Any additional info on gray area retirements would help. Apologies for the dumb questions and thanks again!
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Thinking about it more - I’m wondering if/how a gray area retiree might draw more than VA disability before 60?
 
Townbiz said:
Thinking about it more - I’m wondering if/how a gray area retiree might draw more than VA disability before 60?
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Not possible. Only way to get pension and VA compensation would be medically retiring and maxing out CRSC compensation to recoup the VA offset of the chapter 61 pension. Also, the most you can get by law is the combination of your earned pension and VA compensation. So the longer you can stay in the more points you get which in turn means the more compensation you will get once you are eligible for your guard/reserve retirement.
 
Thanks for the info - makes sense. Sounds like the best move is to link my way through the next 1.5 yrs so I have 20 good years (totaling around 4250 pts as an O5), medically retiring, and hoping to max out CRSC comp. Is it highly unusual to max out CRSC? All of my VA disabilities are combat related….
 
Townbiz said:
Thanks for the info - makes sense. Sounds like the best move is to link my way through the next 1.5 yrs so I have 20 good years (totaling around 4250 pts as an O5), medically retiring, and hoping to max out CRSC comp. Is it highly unusual to max out CRSC? All of my VA disabilities are combat related….
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Sir,
Even if approved, being an O-5 may cause you to not receive any additional CRSC pay due to your higher grade/pay and points. I'm an O-3E causing my residual DoD pay to greatly exceed my VA pay. Even though it is likely I'll max out CRSC, I hit the longevity ceiling with my DoD pay which leaves no room for CRSC. The tax free benefits could be a reason to still select CRSC over your DoD pay, but your DoD could potentially be tax free as well pending results. Completing the chapter 61 retirement formula will tell you the answers.

Dave

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

8.5.2. Reductions for Periods On or After January 1, 2013. 8.5.2.1. Members retired for disability under 10 U.S.C., Chapter 61 with 20 or more years of creditable service computed under section 10 U.S.C. § 1208 will have the maximum CRSC payment restricted to the amount, which when combined with any remaining retired pay after VA offset, will not exceed the applicable retired pay to which the member would otherwise have been entitled under any other provisions of law. A retiree who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under 10 U.S.C. § 1409(b)(2).
 
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Townbiz said:
Thanks for the info - makes sense. Sounds like the best move is to link my way through the next 1.5 yrs so I have 20 good years (totaling around 4250 pts as an O5), medically retiring, and hoping to max out CRSC comp. Is it highly unusual to max out CRSC? All of my VA disabilities are combat related….
Click to expand...
 
DaveK said:
Sir,
Even if approved, being an O-5 may cause you to not receive any additional CRSC pay due to your higher grade/pay and points. I'm an O-3E causing my residual DoD pay to greatly exceed my VA pay. Even though it is likely I'll max out CRSC, I hit the longevity ceiling with my DoD pay which leaves no room for CRSC. The tax free benefits could be a reason to still select CRSC over your DoD pay, but your DoD could potentially be tax free as well pending results. Completing the chapter 61 retirement formula will tell you the answers.

Dave
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Thanks Dave! Gosh they sure make this MFing confusing.
 
Out of curiosity, assuming the Army agrees that all of my many individual ratings are combat related (primarily joint, hip, back, neck stuff driven from carrying heavy things as an infantry and SF guy) my CRSC rating would be 100% based on this calc Combat-Related Special Compensation (CRSC)

Still need to figure out how to do the CH 61 retirement formula correctly lol.
 
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