Request for CRSC Estimate

N

NavyICE

PEB Forum Regular Member
Registered Member
Hello - I recently received my CRSC approval and award letter. It's been so long since I applied that I've forgotten how to do the math, I'm hoping one of the fine experts here would be so kind as to assist. Please find my relevant info below:

1. High three base pay average for retirement OR gross retired pay on DFAS RAS: My gross retired pay on DFAS RAS is $5,487.00
2. DoD disability retirement percentage: 100%
3. Years and months of active duty: 9 years and 3 months (9.25 years)
4. VA Compensation:
  • VA Disability Rating: 100%
  • VA Compensation Amount: $4,638.12/month
  • Dependents: Spouse, no children
  • SMC Awarded: SMC Code 01 (found combat-related, not sure if relevant)
5. Approved or expected combat-related disability percentage (application was required)
  • Approved CRSC Rating: 80%
  • Combat-Related VA Compensation at 80% (Wife, No Kids): $2,214.89
6. Do you qualify for another type of retirement besides CH 61 disability (including REDUX): No, I do not qualify for another type of retirement.

Many Thanks!
 
HIGH 3 PAY 7316

DOD DISABILITY PERCENTAGE 75

CRSC AWARD*(DOLLAR AMOUNT) 2214.89

YEARS MONTHS
TIME OF SERVICE 9 3

MONTHLY V.A. PAY 4638.12


CRSC PAY 842.95
RESIDUAL RETIRED PAY 848.88
TOTAL FROM DFAS 1691.83


Total Pay 6329.95
 
NavyICE said:
Hello - I recently received my CRSC approval and award letter. It's been so long since I applied that I've forgotten how to do the math, I'm hoping one of the fine experts here would be so kind as to assist. Please find my relevant info below:

1. High three base pay average for retirement OR gross retired pay on DFAS RAS: My gross retired pay on DFAS RAS is $5,487.00
2. DoD disability retirement percentage: 100%
3. Years and months of active duty: 9 years and 3 months (9.25 years)
4. VA Compensation:
  • VA Disability Rating: 100%
  • VA Compensation Amount: $4,638.12/month
  • Dependents: Spouse, no children
  • SMC Awarded: SMC Code 01 (found combat-related, not sure if relevant)
5. Approved or expected combat-related disability percentage (application was required)
  • Approved CRSC Rating: 80%
  • Combat-Related VA Compensation at 80% (Wife, No Kids): $2,214.89
6. Do you qualify for another type of retirement besides CH 61 disability (including REDUX): No, I do not qualify for another type of retirement.

Many Thanks!
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Side note. You are capped at longevity. So the amount you were missing out on is the $842.95 which is what you were missing compared to paying you your VA compensation + your earned longevity pension. I assumed you were legacy at 2.5%. If you were BRS then your CRSC would be lower than this since your earned longevity pension would be less.
 
Provis said:
Side note. You are capped at longevity. So the amount you were missing out on is the $842.95 which is what you were missing compared to paying you your VA compensation + your earned longevity pension. I assumed you were legacy at 2.5%. If you were BRS then your CRSC would be lower than this since your earned longevity pension would be less.
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Thank you! As ever, you're a scholar and a gentleman.

I am indeed legacy, not blended.

One follow-up: In cases like mine where the veteran is capped on longevity, does the "residual" retirement payment amount from DFAS stay the same and the balance get paid out via CRSC (what you suggested above, if I'm reading it right), or does the residual amount decrease so that more of the DFAS payment comes in the form of (tax-free) CRSC payment? Neither option would impact the total gross payment from DFAS, just how much is taxed and how much is tax-free.

Thanks!
 
NavyICE said:
Thank you! As ever, you're a scholar and a gentleman.

I am indeed legacy, not blended.

One follow-up: In cases like mine where the veteran is capped on longevity, does the "residual" retirement payment amount from DFAS stay the same and the balance get paid out via CRSC (what you suggested above, if I'm reading it right), or does the residual amount decrease so that more of the DFAS payment comes in the form of (tax-free) CRSC payment? Neither option would impact the total gross payment from DFAS, just how much is taxed and how much is tax-free.

Thanks!
Click to expand...
Yes residual is the amount you are getting now after VA offset. So your chapter 61 pension check and VA check stay the same. You get an additional check from DFAS for CRSC for $842.95
 
NavyICE said:
Thank you! As ever, you're a scholar and a gentleman.

I am indeed legacy, not blended.

One follow-up: In cases like mine where the veteran is capped on longevity, does the "residual" retirement payment amount from DFAS stay the same and the balance get paid out via CRSC (what you suggested above, if I'm reading it right), or does the residual amount decrease so that more of the DFAS payment comes in the form of (tax-free) CRSC payment? Neither option would impact the total gross payment from DFAS, just how much is taxed and how much is tax-free.

Thanks!
Click to expand...
Just answering the tax part now. Nothing changes for the compensation you get now. non taxable for VA payment. Taxalbe for residual chapter 61 payment unless you had an unfitting condition that was designated as combat related by the PEB. The CRSC pay is tax free too.
 
NavyICE said:
Understood, thanks @Provis!
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One thing to realize is that your residual reduces the max you can get for CRSC so it's basically "lost to the wind" - MAJ Richard Star Act "might" correct that, but per the Financial Management Regulations (FMR) you're can only get what your longevity + VA compensation (CMRP - formerly known as CRDP), so your Ch 61 retirement pay kinda tips the scales against you. If you were not at 100% VA, such as 80%, any VA increase will decrease the DOD residual to naught, which is why a 20-year AFS retiree needs to be at 90-100% CRSC to maximize the non-taxable benefit of switching to CRSC. Those who are retire under Ch 61 and found to have combat-related conditions, makes there DOD portion non-taxable, specifically for any residual, not really much of a benefit for those who have their Ch 61 pay completely offset by the VA. If that makes sense.

Sorry, @Provis if I regurgitated what you said lol
 
RetiredColonel-MikeT said:
Those who are retire under Ch 61 and found to have combat-related conditions, makes there DOD portion non-taxable, specifically for any residual, not really much of a benefit for those who have their Ch 61 pay completely offset by the VA.
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Am I misreading, or does this contradict what @Provis said earlier. I am a ch61 (ie medical) retiree, whose DOD residual has been taxed all along. With a longevity capped 80% CRSC award, my residual stays the same (and continues to be taxed), but now i'll receive an additional payment of CRSC each month and that portion is tax-free. At least, that's what I thought he was saying
 
NavyICE said:
Am I misreading, or does this contradict what @Provis said earlier. I am a ch61 (ie medical) retiree, whose DOD residual has been taxed all along. With a longevity capped 80% CRSC award, my residual stays the same (and continues to be taxed), but now i'll receive an additional payment of CRSC each month and that portion is tax-free. At least, that's what I thought he was saying
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No what he said doesn't contradict anything I said. @RetiredColonel-MikeT is just getting into the weeds a bit LOL. Basically the residual amount can change if your VA compensation changes. For your current situation you will get tax fee VA compensation, tax free CRSC. And taxable residual pay after VA offset unless your chapter 61 pension is exempt from taxes. Most don't get any residual after VA offset. So if you have a residual you are most likely an officer or warrant officer.
 
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