PDRL and VA Offset Confusion.

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costanzalordoftheidiots

PEB Forum Regular Member
Registered Member
Hello most helpful forum on the internet!

DFAS and VA can't/won't tell me how they are coming up with VA waiver amount after being medically retired. I'm hoping someone much smarter than I can shed some light on it and I thank you in advance for any and all help with this.

Retired with a 90% DoD and 100% VA P&T. I am in receipt of both VA pay and retired pay. VA waiver is close to 25% of retired pay, and for the life of me cannot figure out why I have a waiver at all if receiving retired pay. I was a Guardsman for my entire career if that matters.




YEARS MONTHS DAYS

SERVICE FOR BASIC PAY: 25 06 01

ACTIVE SERVICE FOR RETIREMENT: 17 11 13

SERVICE PER 10 USC 1405: NA NA NA

SERVICE PER 10 U.S.C. 12733: 21.63 (7789 POINTS)
 
Do you qualify for a reserve retirement at age 60?
(20 good years)

Ron
 
While waiting a reply about CRDP, here is what I infer with limited info:

1. Your DoD disability pay is average high three base pay x 75% (max) = disability retired pay amount
2. Your retired pay is reduced/waived/offset dollar for dollar in the amount of VA compensation received.
3. Any residual retired pay (left over) from the computation at item 2 would be paid to you. You would also receive your VA compensation.

The summary here assumes you did agree to receive VA comp and waive retired pay.

Ron

This might apply…more info needed
DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty <—LINK
 
RonG said:
Does your DFAS RAS include a statement on page 2 about CRDP?

Ron
Click to expand...
It does. It states $2780 is my CRDP amount. Total monthly compensation is $3865 minus a $1085 VA Waiver. I'm curious how those figures were computed though. Retired pay is $3865 (minus the $1085), VA is $3885, and I am receiving both monthly. Sorry about the plethora of numbers thrown in here, I am just not seeing how they came up with that VA Waiver number... Apologies if I am missing something in the "DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty <—LINK ."
 
Here is another view of the offset. I will address your CRDP post in next reply.

If you receive VA compensation for your VA disability, military retired pay is reduced by the VA waiver. The VA waiver is where you waive retired pay to receive VA compensation. The reason is because of double-dipping laws that state you can't be paid twice by the government for the same event.

Technically, VA disability compensation and retired pay are not the same event, but that is how it is applied. So more VA compensation means a greater decrease in your retired pay.

Retirees with concurrent receipt might not see a decrease in retired pay, but concurrent receipt ensures retirees receive enough retired pay to compensate them for their years of service.

Concurrent receipt will not restore retired pay above the amount due to years of service. Extra retired pay can occur when someone is medically retired from the military with a high service disability rating.

Concurrent receipt comes in two forms. You are allowed one or the other but not both at the same time. The Defense Finance and Accounting Service or your service's pay agency administers both forms, which are:

  • Concurrent Retirement and Disability Pay (CRDP). You must have 20-plus years of service and a VA rating of 50 percent or higher. If so, the VA waiver in your retired pay is removed and you are paid full retired pay [disability retired pay is processed differently) Read more details about CRDP.
  • Combat-Related Special Compensation (CRSC): CRSC is a separate payment from retired pay or VA compensation. It is separate because it is a tax-free payment. Your retired pay continues to be reduced by the VA waiver. CRSC reimburses you for the VA waiver amount in your retired pay. CRSC is available to any retiree, regardless of VA rating and regardless of years of service. However, the nature of your disabilities must be combat-related as determined by your service.
Ron
 
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costanzalordoftheidiots said:
It does. It states $2780 is my CRDP amount. Total monthly compensation is $3865 minus a $1085 VA Waiver. I'm curious how those figures were computed though. Retired pay is $3865 (minus the $1085), VA is $3885, and I am receiving both monthly. Sorry about the plethora of numbers thrown in here, I am just not seeing how they came up with that VA Waiver number... Apologies if I am missing something in the "DFAS Retired Pay and VA Compensation for Chapter 61 Retirees with Less than 20 Years Active Duty <—LINK ."
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Hello @costanzalordoftheidiots

The first link I provided applies to those not qualified for CRDP, although many of the aspects of the quotation also apply to the CRDP Scenario.

From the info provided :

1. The 1085 is the amount of VA waiver that is in excess of the CRDP amount. Concurrent receipt will not restore retired pay above the amount due to years of service. Extra retired pay can occur when someone is medically retired from the military with a high service disability rating (this is residual retired pay). CRDP is limited to the longevity portion of retired pay.

2. The longevity portion of retired pay is the result of
—active duty equivalent years and months x 2.5% (2% for blended retirement) = longevity multiplier
—average high three base pay x longevity multiplier = longevity amount and CRDP max
—Note: The combination of CRDP and residual retired pay cannot exceed the longevity computation of pay.

Ron
 
I think I am picking up what you are putting down, thank you! The 90% DoD rating (capped at 75% of high three) has yet to come in to play I guess.

As always, thank you for the prompt expertise!
 
costanzalordoftheidiots said:
I think I am picking up what you are putting down, thank you! The 90% DoD rating (capped at 75% of high three) has yet to come in to play I guess.

As always, thank you for the prompt expertise!
Click to expand...
Hi,

It is in play, as shown in the computations. The difference between the amount of disability retired pay computation and the longevity amount is not covered by CRDP.

In simple terms for a case like yours:
— Your DoD Disability retirement pay @75% is reduced/offset by the amount of VA compensation. You keep/are paid any retired pay left over (residual retired pay).

—CRDP restores reduced/offset retired pay, not to exceed the longevity portion

—The combination of CRDP (which is restored retired pay) and residual retired pay cannot exceed the longevity amount.

—VA Compensation is paid in full

Ron
 
Thank you Ron. It is good to know the why the figures are the way they are. Thank you, thank you, thank you.

If TDIU is declared by the VA, does that restore the retired pay to full amount? Apologies for the slip in question.
 
costanzalordoftheidiots said:
Thank you Ron. It is good to know the why the figures are the way they are. Thank you, thank you, thank you.

If TDIU is declared by the VA, does that restore the retired pay to full amount? Apologies for the slip in question.
Click to expand...
You have max'ed out on total payments. IU is paid at 100% and your VA is already 100% per your input.

Your payments will increase due to COLA increases.

The amounts for different payments could change due to a change in VA compensation amounts (downward in your case since you are at 100%), but it would primarily involve shifting money from one pot to another.

Reference: "Thank you, thank you, thank you." Thank you...I've enjoyed working with you. It does not surpirse me that DFAS could not explain the mechanics of your computation or entitlement. I was in the Army finance corps for my entire career and clearly remember explaining more complicated matters at a finance services counter in the finance office.
Today, people push buttons for results. I think that is the way DFAS operates. I retired the year DFAS took over military pay (1991).

Ron
 
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