Need some help

S

Sj81

PEB Forum Regular Member
Registered Member
Good Day everyone;

I have ready every article, forums between CRSC vs CRDP and retirement pay/rank and if you can help guide me would be greatly appreciated.

My situation is as follows:
Branch: Army
TiS: 21 years and 4 months
Rank/TiG: E8 / 1 year and 7 months
Proposed VA Rating: 100%
DoD Rating: Pending (found out today that PEB is finalizing my 199)
According to my MSC, my disability will be mainly due to combat related (PTSD and Mental Health)

A) Do I calculate my retirement as E7 or E8? How I am reading everything is my retirement pay will be as an e7? I maybe wrong though.

B) CRDP vs CRSP. I have read HRC, DFAS, Army Benefits website and I am very confused. I understand that I will be automatically enrolled into CRDP because I have over 20 years and if my VA rating doesn't change at 100%. But according to the websites I read, I am not qualified for CRSP due to I didnt waive VA disability pay or do I still qualify for CRSP?

C) In your opinion, if I am qualified for both CRDP and CRSP, which one will be the most beneficial?

Thank you for reading and thank you in advance!
 
TiS: 21 years and 4 months

Is this all active duty?

Ron
 
Sj81 said:
Good Day everyone;

I have ready every article, forums between CRSC vs CRDP and retirement pay/rank and if you can help guide me would be greatly appreciated.

My situation is as follows:
Branch: Army
TiS: 21 years and 4 months ALL ACTIVE DUTY TIME
Rank/TiG: E8 / 1 year and 7 months
Proposed VA Rating: 100%
DoD Rating: Pending (found out today that PEB is finalizing my 199)
According to my MSC, my disability will be mainly due to combat related (PTSD and Mental Health)

A) Do I calculate my retirement as E7 or E8? How I am reading everything is my retirement pay will be as an e7? I maybe wrong though.

B) CRDP vs CRSP. I have read HRC, DFAS, Army Benefits website and I am very confused. I understand that I will be automatically enrolled into CRDP because I have over 20 years and if my VA rating doesn't change at 100%. But according to the websites I read, I am not qualified for CRSP due to I didnt waive VA disability pay or do I still qualify for CRSP?

C) In your opinion, if I am qualified for both CRDP and CRSP, which one will be the most beneficial?

Thank you for reading and thank you in advance!
Click to expand...
Hello @Sj81

1. Your retired pay will be determined in part, by your average high three base pay.
Total of highest 36 months of basic pay divided by 36 = average high three base pay

2. The higher multiplier (either DoD or your longevity) will be used.
DoD is determined by the board and you mentioned it is pending
Longevity multiplier = 21.3 AD x 2.5% (2% is used for those in the blended retirement program)

3. The higher of number 2, will be multiplied toward the average high three at item one = retired pay

4. If you did not agree to waive retired pay dollar for dollar in the amount of VA comp received, you ARE NOT qualified for CRSC.
In my opinion it is a mistake to NOT accept VA comp because if there is retired pay left over from the waiver/reduction, you get to keep it.

5. CRDP is automatic if otherwise qualified. However, if you declined VA comp---no CRDP will be paid in my opinion. The law changed a few years ago for CRDP and waiver, but the forms have not caught up.

2. DoD Retired Pay and VA Compensation LINK <----
3. Army CRSC Page LINK <—-
4. Collection of CRSC information LINK <—-

Ron
 
Last edited:
More from DFAS:

Comparing CRSC and CRDP​

Retirees cannot receive both Combat Related Special Compensation (CRSC) and Concurrent Retirement and Disability Pay (CRDP). If you qualify for both, in the initial year of your joint eligibility, DFAS will automatically apply the entitlement that is most beneficial to you based on your gross amount of each entitlement. This will remain in effect until the next CRDP/CRSC Open Season. You will receive an initial CRDP/CRSC Election form shortly following your joint eligibility. Complete and return the form within 45 days if you wish to change to the entitlement that we did not select for you. In subsequent years, you will need to make this determination yourself during Open Season. Open season usually takes place in January.

The chart below highlights the differences between the two programs to help you decide which one is better for you.


CRSCCRDP
Qualified Injurycombat-linked disabilitiesservice-connected disabilities
Classification Special Compensation (not subject to rules and regulations governing military retired pay)Military retired pay (subject to rules and regulations governing military retired pay)
Full Concurrent Receipt?Yes - Retirees can receive either part or all of both their military retirement pay and VA disability compensationNo - Restoration of pay is phased in over 10 years (from 2004 to 2014)
Claim ProcessMust apply through Branch of ServiceAutomatic
EligibilityEligible claimants:
  • Are entitled to and/or receiving military retired pay
  • Are rated at least 10% by the Department of Veteran’s Affairs (VA)
  • Are least 60 years old or retired under Temporary Early Retirement Authority (TERA) if they are a reservist
  • Have waived their VA pay from their retired pay
Eligible claimants:
  • Are retired with 20 years Active or Reserve Duty
  • Are receiving retired pay (that is offset by VA payments)
  • Have a 50% + VA disability rating
  • Reservists and national guardsmen must be eligible to retire based on service, normally 60 years old
Retroactive EntitlementMay go back to June 1, 2003, for any month in which all eligibility requirements are satisfied but may be limited to retirement date.

Disability retirees with less than 20 years will be automatically limited to a retroactive date of January 1, 2008 as required by legislation passed by Congress effective 2008.		May go back to January 1, 2004, for any month in which all eligibility requirements are satisfied, but may be limited to retirement date.

CRDP is not payable before January 1, 2004.
Federal TaxationNon-taxableTaxable, according to your current retired pay Federal Income Tax Withholding (FITW) tax rate
Issue of PaymentCRSC payments are deposited to the same account where you receive your retired pay. If your VA disability compensation offset exceeds your retired pay, your CRSC payment will be deposited into the account most recently designated as your current checking address.CRDP is not a new payment, but rather an increase in your retired pay. CRDP decreases your VA waiver so that you receive more of your gross retired pay. Your new pay amount will continue to be deposited into the same account and will not affect your compensation from the VA.
Subject to Division with a Former SpouseNo*Yes
Subject to Collection / GarnishmentYesYes
SBP (Survivor Benefit Plan) Premiums DeductedYes**Yes
**Beginning with the Survivor Benefit Plan (SBP) recurring monthly premiums due in April of 2018, DFAS is deducting SBP monthly premiums from Combat-Related Special Compensation (CRSC) when retired pay is not sufficient to cover the full amount of the recurring monthly premiums.

Find out more about the VA Waiver, CRDP and CRSC on the webpage: Understanding the VA Waiver and Retired Pay/CRDP/CRSC Adjustments

Ron
 
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