Received Retirement Orders | Not Clear About Final Pay

Cainfopro said:
I’m confused by your post??
PDRL Method B uses longevity and it’s still PDRL, DFAS uses Method A “disability” and Method B “longevity” and pays the member the amount which is highest. Both are still PDRL “Disability Retirement” pay. Method B is not regular retirement all of a sudden because DFAS used the PDRL pay calculation method.

If you are correct, please send the guidance that states if a member elects PDRL Method B it is no longer treated as PDRL pay but regular pay.

If you are correct. DFAS policy punishes members with over 30 years of service by erasing all years of service over 30 years, in my case would eliminate “12” years because I had a medical condition and had to do IDES. Seems illegal and unethical if you are correct.
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Feel free to read the regs yourself. Basically if you are medically retired with a combat related unfitting condition the DOD% must be used for pay purposes. If longevity is higher than you don't get tax exempt retirement. The reason this exists is because it rewards those who's combat related unfitting is more severe than their longevity earned. This just doesn't just affect people like you who are over 75% longevity pension earned. Though your case is quite clear since mathematically it isn't possible. Say you have unfitting combat related condition rated at 30% and have 18 years. Since 18 years longevity is higher than 30% you don't get tax free exemption as you are paid by your longevity and not your disability.

Also, DD214 isn't what tells DFAS your pay regarding tax exempt status. That is the code sheet attached to retirement orders. You will get retirement rolls from DFAS that explains the calculations. In that DFAS retirement rolls they allow you to choose the other calculation but it is one time and irrevocable and would not make sense for 99% of the people out there.
 
Provis said:
Can't do that unless medically retired. What is the benefit? I am not understanding why anyone would want to go through IDES if there is no financial gain. You can't even achieve a tax exempt pension since even a combat related unfitting condition would be less than your longevity
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As far as financial benefits I don’t believe there is any, since he will be maxed on pay. A disability retirement offers Tricare rate lock. I do not have anywhere near the time in service but had over 20 years AFS, I am PDRL, and my DD-214 reflects a disability retirement. I’m interested in this post due to the longevity TIS.
 
CrustyGrunt said:
As far as financial benefits I don’t believe there is any, since he will be maxed on pay. A disability retirement offers Tricare rate lock. I do not have anywhere near the time in service but had over 20 years AFS, I am PDRL, and my DD-214 reflects a disability retirement. I’m interested in this post due to the longevity TIS.
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Regardless we have rate locks based on when we entered service. So if group Group A which almost everyone here is you get that rate for life. The only financial benefit would be tricare select annual fee waived for chapter 61 retirees. So if you prefer the PPO option vs. the Prime HMO option there is some savings. That would not be enough for me to go through IDES considering when you go that route you don't have control of when you get out. Also, most retirees choose Prime for some reason. Probably because they stay near a military installation and can keep continuity of care. I however, love Tricare Select! I utilize the VA for most things but when I go anywhere else there is no referral needed and the $300 deductible for my family is worth having control of who my family can see without the need for referrals.
 
Provis said:
Feel free to read the regs yourself. Basically if you are medically retired with a combat related unfitting condition the DOD% must be used for pay purposes. If longevity is higher than you don't get tax exempt retirement. The reason this exists is because it rewards those who's combat related unfitting is more severe than their longevity earned. This just doesn't just affect people like you who are over 75% longevity pension earned. Though your case is quite clear since mathematically it isn't possible. Say you have unfitting combat related condition rated at 30% and have 18 years. Since 18 years longevity is higher than 30% you don't get tax free exemption as you are paid by your longevity and not your disability.

Also, DD214 isn't what tells DFAS your pay regarding tax exempt status. That is the code sheet attached to retirement orders. You will get retirement rolls from DFAS that explains the calculations. In that DFAS retirement rolls they allow you to choose the other calculation but it is one time and irrevocable and would not make sense for 99% of the people out there.
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Other concern is I believe only a small portion of my disability will be rated as “combat related” rest is just service connected. So not sure if only 5-10% is combat related if totality of my pay is still tax free using longevity, PDRL Method B.
 
Cainfopro said:
Other concern is I believe only a small portion of my disability will be rated as “combat related” rest is just service connected. So not sure if only 5-10% is combat related if totality of my pay is still tax free using longevity, PDRL Method B.
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Where are you in the process? Are you in IDES?
 
Cainfopro said:
Other concern is I believe only a small portion of my disability will be rated as “combat related” rest is just service connected. So not sure if only 5-10% is combat related if totality of my pay is still tax free using longevity, PDRL Method B.
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In IDES early stages, I believe 3-6 months from a decision, 6-9 from retirement.

I’ve read the regs but nothing speaks clearly to someone at 105% (42 years Active Duty) at 100 VA, with limited combat related ratings. Regs take you all over the place and special conditions/circumstances make huge impacts on individual
 
This thread made my head hurt. I'm at 22.5 years, and I keep hearing some of the same information floating around from others going through this MEB/PEB process... My PEBLO specifically said I will only get my Longevity percentage + VA compensation. For context, I'm a CW3 with 4 unfit conditions, and one of them is combat-related. It seems the interaction between DoD disability, longevity, and CRDP, especially with a combat-related condition in the mix, can be really confusing and likely depends a lot on individual circumstances... Honestly, at this point, I just want to GTFO... I honestly just did the MEB to cut my ADSO and know my VA percentage before I move overseas.
 
armyofone said:
This thread made my head hurt. I'm at 22.5 years, and I keep hearing some of the same information floating around from others going through this MEB/PEB process... My PEBLO specifically said I will only get my Longevity percentage + VA compensation. For context, I'm a CW3 with 4 unfit conditions, and one of them is combat-related. It seems the interaction between DoD disability, longevity, and CRDP, especially with a combat-related condition in the mix, can be really confusing and likely depends a lot on individual circumstances... Honestly, at this point, I just want to GTFO... I honestly just did the MEB to cut my ADSO and know my VA percentage before I move overseas.
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Basically a lot of things run concurrently but unless you medically retire and are a high ranking reserve/guard officer with max disability there is no way to exceed longevity + VA compensation. So if you have 10k high 3 and 75% DOD then your chapter 61 pension is $7,500 a month. The most you can get by law other than that formula is earned longevity + VA compensation since you can't double dip. So if Reservist and had a low longevity pension lets say 2k + 4k VA then you get $7,500 instead because your chapter 61 retirement is higher. However, if your get 4k earned longevity pension + 4K VA compensation then you will will get 8K instead of $7,500. The tax free stuff is dependent on other factors. So lets say in the same scenario the PEB ruled that the unfitting condition was combat related. Then you would get $7,500 tax free and another $500 tax free from the VA as you care capped at 8K as that maxes out your compensation.

Medically retiring is there to help Soldiers who get screwed by not being able to reach 20 AFS. For those who already have 20 AFS there isn't much to gain or lose by medically retiring in addition to getting regular retirement + VA. Even those who don't medically retire can still get all of their income tax free if they have a high enough CRSC approval after getting out. Still it can't hurt to medically retire so you have nothing to lose when you have already earned a regular or non regular retirement.
 
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Cainfopro said:
In IDES early stages, I believe 3-6 months from a decision, 6-9 from retirement.

I’ve read the regs but nothing speaks clearly to someone at 105% (42 years Active Duty) at 100 VA, with limited combat related ratings. Regs take you all over the place and special conditions/circumstances make huge impacts on individual
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You will be paid your longevity + VA compensation. Based on the current laws in your situation there isn't anything to gain by medically retiring verse retiring normally. You aren't eligible to earn tax free status on your pension even if medically retired because one of the caveats is that to get tax free with combat related unfitting condition you must have a higher DOD% than your earned longevity %. Since 75% is the cap for DOD% your longevity will be higher in all instances.
 
sorry to hijack but Provis I have a question. I was found 80%dod 90% VA and dd214 says combat related. Would that mean that any residual dod pay would also be tax free? 13.5 afs 25 total years with reserve time.
 
david147 said:
sorry to hijack but Provis I have a question. I was found 80%dod 90% VA and dd214 says combat related. Would that mean that any residual dod pay would also be tax free? 13.5 afs 25 total years with reserve time.
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if combat related and your have residual after VA offset then yes it should be exempt from taxes.
 
So just got my ratings. Was placed on TDRL with 22.5 years of service. Got my V1/V3 code on combat related condition. 80% DoD, 100% VA. Translation? Lol is it still my 55% but tax free for DoD side?
 
armyofone said:
So just got my ratings. Was placed on TDRL with 22.5 years of service. Got my V1/V3 code on combat related condition. 80% DoD, 100% VA. Translation? Lol is it still my 55% but tax free for DoD side?
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Should be tax free but understand that may change if TDRL changes to PDRL. If your DOD% becomes less than your longevity of 55% you lose tax free status. So make sure to keep seeking treatment.
 
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