Requesting CRSC calculation

Thanks to COVID there wasn't much provided in way of separation guidance and services and trying to do this on my own has left me with more questions than not.

Please provide the following in one reply:
1.--Retired Gross Pay 5771.00
2.-- 75%
3. --23 yrs 9 months
4. -- 100% - 3736.40
5.-- 100
6.-- Did not take blended
7.--Yes
8.--No

I'm also a bit confused about the CRDP. My understanding was that CRDP restored retirement to go along with VA disability. My RAS shows -
Gross Pay 5771
VA Waiver 1773
SBP 375.18

And in the message section, it says my CRDP amount is 1963.40. I tried calling DFAS for clarity and the first person told me there was a document still outstanding but that didn't sound right so I called again that day and got another person that told me my CRDP was capped at 3998. None of this is making much sense and even the DFAS provided PPT slides link to references that don't exist anymore.

Marty
 
Hello @Dorsai007

Why your CRDP is 1963.40:
Gross retired pay 5771 minus 3736.40 VA comp = 2034.60 residual retired pay

CAP CRDP: 3998.00
3998.00 minus 2034.60 residual = 1963.40

You should be receiving each month from DFAS:
2034.60 residual retired pay
1963.40 CRDP
TOTAL FROM DFAS: 3998.00
The combination of CRDP and Residual Retired Pay cannot exceed the longevity portion of retired pay (REDUX computation in your case)

You also receive your VA compensation.
====

With regard to your CRDP; it is limited by the REDUX/Career Bonus calculation required by law. The DFAS slides you mentioned are worthless; there are several laws implemented since those old slides were put on the web.

Since you are rated @100% for VA and also 100% for CRSC, your CRSC would be the same amount as you are receiving for CRDP
because the same limitations pertaining to REDUX apply to the CRSC max as well.



Ron

Edited to add:
who accepted the REDUX/CSB have their CRDP computed using the REDUX formula.
4. CSB REDUX Retired Pay Calculation for CRDP

The percent multiplier reduced is by:
  • 1 percent for each full year of creditable service less than 30, and
  • 1/12th of 1 percent for each full month of creditable service less than a full year.
This will also affect your retired pay by reducing the cost of living adjustments (COLA) by one percent.

This reduction remains in effect up to the age of 62. Once you reach age 62, your retired pay will be restored to the same amount paid under the High-3 System. Full COLA rates will be applied to your new computation, but the COLA will continue to be applied at the reduced rate each year following.

Disability Retirees and Reserve/Guard members retiring at age 60 (or younger in some cases) are exempt from all provisions of the CSB/REDUX provisions except the 1 percent COLA reduction. HOWEVER, The CRDP computation uses the REDUX formula.

5. The CRDP discussed above when added to the residual retired pay shown at item 2 cannot exceed the longevity portion of retired pay using the REDUX formula.
 
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Hello @RonG Thank you for what you do- long time lurker- now I have info to provide.

1. DFAS RAS Gross Pay: 1,529.00
2. DoD disability retirement percentage: 50%
3. Years/months of active duty: 8 years, 0mo 4days
4. VA percentage/compensation: 100% P&T - 3450.32, Spouse and child under 18
5. Projected CRSC: 70%
6. Qualify for another type of retirement? No
7. Blended retirement? No
 
airbornetex said:
Hello @RonG Thank you for what you do- long time lurker- now I have info to provide.

1. DFAS RAS Gross Pay: 1,529.00
2. DoD disability retirement percentage: 50%
3. Years/months of active duty: 8 years, 0mo 4days
4. VA percentage/compensation: 100% P&T - 3450.32, Spouse and child under 18
5. Projected CRSC: 70%
6. Qualify for another type of retirement? No
7. Blended retirement? No
Click to expand...
Hello @airbornetex ,

Estimate based on your info:

1. 3058 is your high three base pay.
2. 8.33 AD x 2.5% = 20.83% longevity multiplier
3. 3058 x 20.83% = 636.98 longevity portion of retired pay and max CRSC
4. Your CRSC = 636.98 based on the info you provided.

Ron

I need to repair this...I just noticed I used the days...as months
 
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RonG said:
Hello @airbornetex ,

Estimate based on your info:

1. 3058 is your high three base pay.
2. 8.33 AD x 2.5% = 20.83% longevity multiplier
3. 3058 x 20.83% = 636.98 longevity portion of retired pay and max CRSC
4. Your CRSC = 636.98 based on the info you provided.

Ron

I need to repair this...I just noticed I used the days...as months
Click to expand...
Hello @airbornetex ,

Estimate based on your info--revised:

1. 3058 is your high three base pay.
2. 8 years AD x 2.5% = 20% longevity multiplier
3. 3058 x 20% = 611.60 longevity portion of retired pay and max CRSC
4. Your CRSC = 611.60 based on the info you provided.

Ron
 
Braindrain1234 said:
Hello, LOOOOONG time lurker here. I was recently found unfit (70 TDRL/100 VA) after 22 years and 2 months of active duty service (E-7/USAF). I ran across your question in the CRSC forum regarding eligibility for tax free retirement payments. I am in the final stages of the IPEB process and my ODC lawyer explained that due to the fact that my unfitting condition was identified by the IPEB as combat related (PTSD), my retired Pay (DFAS) would not be subject to federal taxes and that this is automatically applied by DFAS upon retirement. I asked if he may have been mistaken as it sounded like he was describing CRSC benefits, but he clarified that it is not a special compensation and there was no application process. Are you able to verify the validity of this statement? The wording on the DFAS link @RonG posted in response to your question was just vague enough to leave me more confused after reading it.

TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.

Eligibility appears to hinge on whether or not your retirement is calculated based on your VA rating or LOS, which is described in the welcome letter that DFAS sends after retirement. Based on my extremely limited understanding of this statement and the disability retirement rules governing active duty members who have served over 20 years and are subsequently found unfit as a result of the IPEB, I can only conclude (probably incorrectly) that the DFAS retirement could only be computed using years of service due to the LOS cap on CDRP restoration. What information is considered by DFAS to determine which calculation is used? It seems a bit backward to have to wait for the arrival of the welcome letter to find out this information. Any light shed on this subject would greatly assist in making my family's financial picture clearer. Thanks in advance for any assistance anyone can provide!
Click to expand...
Braindrain1234,
I am just following up with you to see how this worked out, because I fear that someone in the long chain of people that I have been dealing with may have dropped the ball, as my retired pay situation, in respect to taxation, has still not been rectified. I have spoken to numerous people about this (to include DFAS) and I want to make sure I am VERY right before I start going higher up the chain.

Can you do me a favor (if you are comfortable with it) and tell me what lines 26 and 28 (sep. code and narrative reason) on your DD214 state? Also, in block 25, what is the separation authority? I have a feeling this forum may see this issue again in the future, as more and more of us GWOT folks medically separate.

For me, is says:
25. AR 635-40, CHAP 4
26. Separation code: SEA
28. Disability, combat related

From my understanding, Separation code "SEA" replaced "SEJ" (Disability, combat enhanced), but the new regulation seems to be fully undisclosed to the public.

Thanks in advance!
 
Re: "What information is considered by DFAS to determine which calculation is used?"

The DFAS automatically pays the higher of:
a. The DoD disability percentage x average high three base pay
OR
b. The longevity computation (AD or AD equivalent years and months x 2.5%) x average high three base pay

Concurrent Retirement Disability Payments (CRDP): CRDP is a restoration of your retired pay, not a separate entitlement. Therefore, if your retired pay is taxable so is any CRDP payments you receive. If your retired pay is non-taxable, your CRDP is also non-taxable.

Ron
 
Bprin10 said:
Braindrain1234,
I am just following up with you to see how this worked out, because I fear that someone in the long chain of people that I have been dealing with may have dropped the ball, as my retired pay situation, in respect to taxation, has still not been rectified. I have spoken to numerous people about this (to include DFAS) and I want to make sure I am VERY right before I start going higher up the chain.

Can you do me a favor (if you are comfortable with it) and tell me what lines 26 and 28 (sep. code and narrative reason) on your DD214 state? Also, in block 25, what is the separation authority? I have a feeling this forum may see this issue again in the future, as more and more of us GWOT folks medically separate.

For me, is says:
25. AR 635-40, CHAP 4
26. Separation code: SEA
28. Disability, combat related

From my understanding, Separation code "SEA" replaced "SEJ" (Disability, combat enhanced), but the new regulation seems to be fully undisclosed to the public.

Thanks in advance!
Click to expand...
Bprin10,

I am sorry to hear that you are having issues with the benefits you you have earned. I actually just officially retired (26 Dec) and have yet to receive compensation from either the VA or DFAS. As for your questions regarding my DD214:

25. AFI 36-3212 (AR 635-40 equivalent reg for USAF)
26. SEK or Temporary Disability (Enhanced)
28. Disability, Temporary IDES

Seeing your narrative leads me to believe that block 28 for me should also state Combat Related to match my PEB findings listed on AF 356 (DA 199 equivalent) and retirement orders. ** SEE BELOW**

(AF form 356)
AF 356.JPG

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(Excerpt from Retirement Orders)
Retirement Order.jpg

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Either way, I should know the verdict as DFAS should be updated to reflect my retirement compensation around 20 January followed by eBenefits on the VA side within the next 60 days. I highly suspect that federal taxes WILL be deducted for me as well.

I believe the "Combat Related" designation in the narrative is also crucial in determining a veteran's eligibility to "buy back" military service time for credit within the FERS (Federal Employees Retirement System). For those who choose to continue Federal service after their military careers were cut short due to combat related disabilities, this is arguably one of the most important benefits as it directly impacts retirement age and pension amount.

Please feel free to PM me as I do not want to loose track of this. Like you mentioned, we are probably not the first nor will we be the last to encounter these issues. At the very least we can publish our outcomes to educate future veterans who will inevitably navigate the same confusing process. At most, we may just uncover mass inconsistencies in how Combat Related Injury PEB findings are translated to the DD214, potentially negatively impacting the veteran's federal tax obligation.
 
Braindrain1234 said:
Bprin10,

I am sorry to hear that you are having issues with the benefits you you have earned. I actually just officially retired (26 Dec) and have yet to receive compensation from either the VA or DFAS. As for your questions regarding my DD214:

25. AFI 36-3212 (AR 635-40 equivalent reg for USAF)
26. SEK or Temporary Disability (Enhanced)
28. Disability, Temporary IDES

Seeing your narrative leads me to believe that block 28 for me should also state Combat Related to match my PEB findings listed on AF 356 (DA 199 equivalent) and retirement orders. ** SEE BELOW**

(AF form 356)
View attachment 7330

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(Excerpt from Retirement Orders)
View attachment 7332

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Either way, I should know the verdict as DFAS should be updated to reflect my retirement compensation around 20 January followed by eBenefits on the VA side within the next 60 days. I highly suspect that federal taxes WILL be deducted for me as well.

I believe the "Combat Related" designation in the narrative is also crucial in determining a veteran's eligibility to "buy back" military service time for credit within the FERS (Federal Employees Retirement System). For those who choose to continue Federal service after their military careers were cut short due to combat related disabilities, this is arguably one of the most important benefits as it directly impacts retirement age and pension amount.

Please feel free to PM me as I do not want to loose track of this. Like you mentioned, we are probably not the first nor will we be the last to encounter these issues. At the very least we can publish our outcomes to educate future veterans who will inevitably navigate the same confusing process. At most, we may just uncover mass inconsistencies in how Combat Related Injury PEB findings are translated to the DD214, potentially negatively impacting the veteran's federal tax obligation.
Click to expand...
Deleted by moderator: duplicate post

See
Can someone run the numbers of what to expect 19 year 4 month med board <---LINK

RonG
 
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