Question on whether to pursue Chapter 61

I am currently a TPU reservist with over 20 years of service, O-6. I am also already 100% P&T with the VA including PTSD (combat) and a couple of Pact Act presumptives also from Iraq. I have a combat action badge from OIF. I am trying to understand the value and ability to obtain a chapter 61 retirement vs just a non-regular retirement to which I am already entitled.

If I do a non-regular retirement I will receive the following:
-Prior to age 60, 100% VA.
-Non-regular retirement pay starting at age 60 based on about 4300 points.
- At age 60, 100% VA using CDRP, or whatever I can get through CRSC, whichever is more. I suspect I will get at least 50% CRSC based on the PTSD, and perhaps the Pact Act presumptives will add some.
- Tricare for life for myself and dependents, starting at age 60

If I pursue and am granted a chapter 61 retirement, I get the following:
-DoD disability pay based unfitting conditions, high 3 and equivalent years of service (divide points by 365), and I get this immediately, don’t have to wait until 60.
-DOD disability pay may be non -taxable if one or more unfitting conditions are “combat related.” Does combat PTSD likely meet the combat related requirement?
- CDRP or CRSC don’t apply until age 60, but at that time I’d get one or the other in addition to DoD disability pay
- Tricare for life for myself and dependents immediately upon Chapter 61 retirement.

Are these all the the major points I need to consider when deciding whether to pursue chapter 61?

 

[iamthewalrus016]

a couple things worth pointing out…

Tricare for life is different than tricare when you retire. Tricare for life is a Medicare eligible program.

You mention DOD disability pay in addition to CRDP or CRSC. I’m thinking you are meaning VA disability pay in addition to CRDP or CRSC. The most by law you can collect in retirement is 100 percent VA and you earned retirement. The earned retirement can fluctuate between CRDP (now called CMRP) and CRSC based on the tax aspect. But at the end of the day you can only collect 1 check from the VA and 1 check from the DOD.

If you can pursue a LOD chapter 61 retirement that would most likely be the best case scenario for you. It would enable you to be eligible for a pension along with your VA pay immediately upon retirement. The key is the LOD aspect.

 

[Bulldog03]

a couple things worth pointing out…

Tricare for life is different than tricare when you retire. Tricare for life is a Medicare eligible program.

You mention DOD disability pay in addition to CRDP or CRSC. I’m thinking you are meaning VA disability pay in addition to CRDP or CRSC. The most by law you can collect in retirement is 100 percent VA and you earned retirement. The earned retirement can fluctuate between CRDP (now called CMRP) and CRSC based on the tax aspect. But at the end of the day you can only collect 1 check from the VA and 1 check from the DOD.

If you can pursue a LOD chapter 61 retirement that would most likely be the best case scenario for you. It would enable you to be eligible for a pension along with your VA pay immediately upon retirement. The key is the LOD aspect.

Ok, I may not understand everything then.

If I just retire, which would be a non-regular retirement, because I am over 50% service connected I can, at age 60, collect my non-regular retirement and VA 100% disability, and that is through CMRP. As you described, that is 1 DOD check and 1 Va check. Without CMRP, I would have to waive one or the other.

If I am granted a chapter 61 retirement, my DOD check will be much greater than my non-regular retirement would be. That will be the DOD check, but I will start collecting it immediately not at age 60. At age 60, I can also start getting the VA check again, because CMDP kicks in at the point my non-regular retirement would have kicked in, age 60.

Am I mixing things up here?

 

[iamthewalrus016]

That sounds pretty much correct.

I know reserve retirements can be a little different than active duty retirements and I’m not 100 percent familiar with all the rules of reserve retirements. I do know that your best option is a duty related medical retirement. Especially since you already have 20 years. The line of duty medical retirement would allow you to collect your maximum pension/VA disability right away.

I’m also pretty sure you can take time off the 60 years of age requirement based on points/active duty time/deployments.

 

[Provis]

Ok, I may not understand everything then.

If I just retire, which would be a non-regular retirement, because I am over 50% service connected I can, at age 60, collect my non-regular retirement and VA 100% disability, and that is through CMRP. As you described, that is 1 DOD check and 1 Va check. Without CMRP, I would have to waive one or the other.

If I am granted a chapter 61 retirement, my DOD check will be much greater than my non-regular retirement would be. That will be the DOD check, but I will start collecting it immediately not at age 60. At age 60, I can also start getting the VA check again, because CMDP kicks in at the point my non-regular retirement would have kicked in, age 60.

Am I mixing things up here?

Are you close to retirement for your non regular retirement? If you can retire with your non regular retirement soon there isn't much of a benefit. The only way to get more than the combination of your earned longevity non regular retirement and VA compensation is if your DOD% is so high that the net compensation from it exceeds that combination.

The main benefit to retiring chapter 61 via duty related IDES as a Reservist/Guardsman is not waiting for eligible age for your non regular retirement. The gross compensation is the same except for the one way to be higher which is rare. The one downside is that you don't have any control on the timeline of it. If you did want to get medically retired you would need to submit a profile package and medical would need to designate one or more condition as P3. That would necessitate your commander creating a fit for duty exam memo. From there you go to the exam and its usually at the nearest active duty base.

I always recommend hiring a private attorney and its best to hire one at the very start. My wife was an 04 AGR with 17 AFS and 20 good years and with the help of a dedicated attorney that appealed at every step she maxed out her compensation and as a bonus all of her income was exempt from taxes. I'll send you some references in case you are in need of one.