Medical or LOS & CRDP

Nate73

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Hello,
I am AD USMC with 22 YOS. I’ve been on LIMDU since a MEB in 2015. I was told that by reaching LOS I could take a regular retirement and receive VA benefits through CRDP. I am currently being pressured to take a medical retirement instead of dropping papers for LOS. I can’t seem to get a straight answer on how a medical retirement will affect my pay. With a LOS retirement it seems pretty clear cut. With a medical retirement, I seem to get a different answer from everyone. Some say I will receive full retirement + full VA because I’ve reached 20 and am fully expected to receive at least 50% from VA (previous rating was 100% P&T). Others talk about having to waive retirement pay and offsets. If I’ve earned LOS, why would I have to waive pay? Can anyone help me figure out what pay would look like for each scenario? My high 3 is 9280. Any help would be very appreciated.
 

TXWI

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you will get both since you have done 20 years. the advantage of medical retirement is your retirement could be higher as they go off of your unfitting conditions rating(DOD disability) or time in service whichever pays more. you can get a max of 75 % of your base pay if you are rated that high by the DOD where as your 22 years equals 55%. plus you could get all of your VA ratings done prior to retiring so it would take less time. I would recommend doing the medical retirement but that may not be up to you.
 

Nate73

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Thanks, TXWI. That’s what I thought so I’m confused by all of the waiver and offset talk. If I go the medical retirement route, would my retirement pay still come from DFAS?
 

RonG

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Hello,
I am AD USMC with 22 YOS. I’ve been on LIMDU since a MEB in 2015. I was told that by reaching LOS I could take a regular retirement and receive VA benefits through CRDP. I am currently being pressured to take a medical retirement instead of dropping papers for LOS. I can’t seem to get a straight answer on how a medical retirement will affect my pay. With a LOS retirement it seems pretty clear cut. With a medical retirement, I seem to get a different answer from everyone. Some say I will receive full retirement + full VA because I’ve reached 20 and am fully expected to receive at least 50% from VA (previous rating was 100% P&T). Others talk about having to waive retirement pay and offsets. If I’ve earned LOS, why would I have to waive pay? Can anyone help me figure out what pay would look like for each scenario? My high 3 is 9280. Any help would be very appreciated.
1. If you receive a CH 61 retirement but also qualify for another type of retirement such as “regular, 20 yeas AD” the following will occur:
—Your Retired Pay will be reduced by the amount of the VA compensation.
—If VA comp is =>50%, CRDP will restore the amount of the “reduction” or waiver not to exceed the dollar amount of the longevity portion of retirement pay.
—If you have a VA rating of 10% or more, approved CRSC will replace the reduction or waiver not to exceed the dollar amount of the longevity portion of retirement pay or the approved CRSC percentage, whichever is the lesser.

One must choose between CRDP and CRSC. For those qualified for a regular retirement, CRDP is usually the best choice UNLESS the CRSC percentage is the same as the VA camp percentage.

2. Neither CRSC nor CRSC replaces/restores the dollar amount of waived retired pay that is in excess of the longevity portion of retirement pay.

Ron
 

RonG

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you will get both since you have done 20 years. the advantage of medical retirement is your retirement could be higher as they go off of your unfitting conditions rating(DOD disability) or time in service whichever pays more. you can get a max of 75 % of your base pay if you are rated that high by the DOD where as your 22 years equals 55%. plus you could get all of your VA ratings done prior to retiring so it would take less time. I would recommend doing the medical retirement but that may not be up to you.
Re: CRDP & CRDP for a CH 61 retiree who also qualified for a regular retirement.

There are certain limitations not discussed above.

1. If a retiree receives a CH 61 retirement but also qualifies for another type of retirement such as “regular, 20 yeas AD” the following will occur:
—The Retired Pay will be reduced by the amount of the VA compensation.
—If VA comp is =>50%, CRDP will restore the amount of the “reduction” or waiver not to exceed the dollar amount of the longevity portion of retirement pay.
—If the Retired has a VA rating of 10% or more, approved CRSC will replace the reduction or waiver not to exceed the dollar amount of the longevity portion of retirement pay or the approved CRSC percentage, whichever is the lesser.

One must choose between CRDP and CRSC. For those qualified for a regular retirement, CRDP is usually the best choice UNLESS the CRSC percentage is the same as the VA camp percentage.

2. Neither CRSC nor CRSC replaces/restores the dollar amount of waived retired pay that is in excess of the longevity portion of retirement pay.

Ron
 

Nate73

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Thanks Ron. Am I correct to assume that regardless of the scenario - LOS or Ch61 - my pay in the end will essentially be the same? Just from different pots, so to speak?
 

RonG

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Thanks Ron. Am I correct to assume that regardless of the scenario - LOS or Ch61 - my pay in the end will essentially be the same? Just from different pots, so to speak?
Speaking only about the computation of Retired Pay...

From DFAS

DISABILITY RETIREMENT
The multiplier for disability retired pay is either:
  • 2.5 percent for each year of service, or
  • disability percentage assigned by the service at the time you retire
Either way, the multiplier is limited to 75 percent by law. If you are on the Temporary Disability Retired List, the minimum multiplier is 50 percent while on the TDRL.

DFAS uses the method that results in the largest payment. But if you’d like to choose the other method, please send DFAS your request in writing.

The replacement or restoration of waived retired pay is outlined in my initial post. The dollar amount of the longevity portion of retirement pay is one ceiling for either CRDP or CRSC and in the case of CRSC could be less.

Ron
 

RonG

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There are cases where not all the retired pay is lost thru the reduction in the amount of VA comp (i.e., the VA comp is less than the gross retired pay).

The retiree keeps the residual, but the residual reduces the amount of CRSC (and CRDP in some cases) when that payment is applied.

Ron
 

Nate73

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I really appreciate your expertise and time. They don’t make it easy to understand or maybe it’s just my brain injury making it feel that way. Hoping my VSO can run some numbers. Its very unlikely that I will be eligible for CRSC as most of my issues stem from a stroke I had after returning from deployment. Is it common for someone with over 20 to be placed on the TDRL? I was told I could avoid that by reaching LOS.
 

RonG

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There are at least four different laws that are associated with the info I gave you...it took a long time for me to understand some of it.

I was not a disability retiree so I do not have experience in the TDRL area.
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From your remarks, it appears that you will receive CRDP.

CRDP your case:
—regular retirement = you will receive all your LOS retirement pay and all your VA Compensation

—disability retirement = you will receive the dollar amount of the longevity portion of retirement pay (LOS) plus VA compensation

There are other complexities, but I think the above gives you a rough outline.

Ron
 

TXWI

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Ron I have a question. I have 20 years active duty service and am rated at 80% DOD / 100% VA. Will my DOD retirement be limited by my longevity? I know for the DOD disability retirement technically I should get 75% but with CRDP will I actually get that? I don't think so. I have inquired with my service but have not received any answer.
 

RonG

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Ron I have a question. I have 20 years active duty service and am rated at 80% DOD / 100% VA. Will my DOD retirement be limited by my longevity? I know for the DOD disability retirement technically I should get 75% but with CRDP will I actually get that? I don't think so. I have inquired with my service but have not received any answer.
As a CH 61 retiree who also qualifies for a regular retirement, the following will occur:

Your DoD retirement pay will be reduced by the amount of your VA compensation.

CRDP will restore the dollar amount of the longevity portion of the retirement pay. CRDP does not restore waived retired pay in excess of the LOS amount.

“Special Rule for Disability Retirement
Members retired for disability under 10 U.S.C., Chapter 61, §§ 1201 through 1222 remain subject to the offset required under 38 U.S.C. §§ 5304 and 5305 for any retired pay they receive that is in excess of the amount of retired pay to which they would be entitled under any other provision of law based on service in the Uniformed Services, had they not retired for disability. Since retired pay in excess of the amount calculated for years in service is still subject to offset under the CRDP program, a member with an amount of retired pay remaining after offset of VA disability compensation, that is greater than the amount calculated for years of service, is not eligible for any increase in payment of retired pay under the CRDP program.”

Interpretation: Any residual Retired Pay after the reduction discussed above will reduce the amount of CRDP.

EXAMPLE:
DoD disability retirement = 4000
VA offset = 3000
Residual retired pay = 1000
LOS amount = 2900 & CRDP
CRDP reduction = 2900 - 1000 results in 1900
DFAS pays = 1000 residual + 1900 CRDP results in 2900 paid

Ron
 
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