Reserve retirement MEB rated 60% Army medical and concurrent receipt

[Michelle13]

Good day.
I am a career army, reserve officer. I was deployed during operation Iraqi freedom two to South Central Baghdad. I was subsequently processed out of the army with a medical disability through the MEB board with a rating of 60%. My time for that deployment was March 2004 until July 2005. At present, I am 56 years old and seriously looking at my retirement options. Present I also receive combat related special compensation.

My question, for this forum is as follows:
1. Under a normal reserve retirement, I would not receive retirement pay until age 60. However, I was medically, retired and immediately started receiving my retirement pay at a rate of 60% of 04 pay with 24 years and TRICARE for life.
Will I receive concurrent receipt disability pay?
Or will my retirement revert back to the reserve point system?

2. How is this CRDP initiated? Does DFAS have all of that on file already? I tried calling, but I can’t get a human on the line.
3: Given my time down range, am I eligible to retire before the age of 60?

Thank you for your assistance.
Major United States Army retired

 

[Provis]

Good day.
I am a career army, reserve officer. I was deployed during operation Iraqi freedom two to South Central Baghdad. I was subsequently processed out of the army with a medical disability through the MEB board with a rating of 60%. My time for that deployment was March 2004 until July 2005. At present, I am 56 years old and seriously looking at my retirement options. Present I also receive combat related special compensation.

My question, for this forum is as follows:
1. Under a normal reserve retirement, I would not receive retirement pay until age 60. However, I was medically, retired and immediately started receiving my retirement pay at a rate of 60% of 04 pay with 24 years and TRICARE for life.
Will I receive concurrent receipt disability pay?
Or will my retirement revert back to the reserve point system?

2. How is this CRDP initiated? Does DFAS have all of that on file already? I tried calling, but I can’t get a human on the line.
3: Given my time down range, am I eligible to retire before the age of 60?

Thank you for your assistance.
Major United States Army retired

If retired immediately via chapter 61 then you get your pay immediately but any chapter 61 pay can be offset by any VA compensation you receive. What is the value of your pension? How many points? What is your rating for VA disability? If your chapter 61 pension is greater than the value of the combination of your Reserve pension + VA compensation you will be maxed out for compensation.

CRDP can be paid out when you reach age 60 but will only help you if you have any compensation to recoup. You would need to apply for your Reserve retirement for CRDP to kick in. If your chapter 61 pension is greater than that total between Reserve Pension value + VA Compensation then CRDP wouldn't help. CRSC is capped at that combination too. So first calculate your high 3 and then multiple by 60%. That is your chapter 61 compensation. Now figure out what your earned Reserve pension value is and add that amount to your VA compensation amount. If higher than your chapter 61 pay then you are missing out on compensation due to the VA offset. If the chapter 61 pension is greater than that amount then you don't need to worry about CRDP. CRSC is to recoup income lost due to the VA offset so CRSC is zero if chapter 61 pension is higher than combination of Reserve pension + VA compensation.

If there is a deficit then you can apply for CRSC if eligible. You will be capped at whichever is lower the value of CRSC% pay or the difference you are losing out on between chapter 61 pay and the combination of earned reserve pay + VA compensation. So lets say your high 3 is 9k. 60% of 9k is $5,400. If your Reserve pension is worth $1,200 and your VA compensation is 4k then that total is $5,200. You have maxed out compensation since your chapter 61 pay is higher than the total value of your reserve pension + VA compensation. 2nd example lets say all the numbers are the same except the value of your Reserve pension is $2,000. 2k + 4k =6K. Your only getting $5,400. So you are are $600 short. If you can get CRSC % high enough to hit or exceed $600 then you are maxed out. CRSC % utilized VA pay charts for compensation. If you get 50% for CRSC you are well over $600 since 50% VA chart is about $1,100 and so your CRSC will be $600. If you max out compensation via Chaper 61 pension pay alone or with the combination of Chapter 61 pension + CRSC then you are maxed out as well. In the case of maxing out via CRSC there is no need for CRDP. In fact it would net you less compensation for CRDP since CRDP is restoration of taxable income. CRSC is exempt from taxes.

 

[Michelle13]

Thank you for the detailed feedback.
I’m gonna give you more in-depth detail in hopes that you might be able to help me hone in on this retirement question as it is quite confusing. I’m not sure if all of this is relevant. But this is what I have.

I was medically retired in 2013 with a 60% rating. Gross pay is $5051. It is not subject to taxes. Even if it were not offset by the veterans administration, it would not be subject to taxes. My understanding of why it’s not subject to taxes is because I was injured in a combat environment. With the VA offset my monthly receipt is $127.98.

My combat related special compensation pay is paid at $1247.70.

My VA disability rating is 100% permanent total. I received $4900 from the VA each month.

The following verbiage was found on my retirement order:
Retirement type an allotment code: 11
Component: USAR
Authority: AR 635–40
Statute authorizing retirement: 1204
Disability retirement: 6 years, 8 months, and 15 days
Basic pay: 24 years 1 month and 4 days
Disability is based on entry or disease received in the line of duty as a direct result of armed conflict or caused by an instrumentality of war and occurred in the line of duty during the war period is defined bylaw: yes
Disability resulted from a combat injury as defined and 26 USC 104: yes
Format: 687

Thanks again for your help with this difficult question.