Reserve Retirement vs Medical Retirement

[JAMP7380]

Question regarding reserve situation:

24 years TIS, 15.5 years points (5550 career points), currently in med board.

If rated 60% DOD and 100% VA, what happens when the reservist reaches the official retirement age - does the concurrent kick in at the previous career points (15.5 years = 38.75%) or does it remain 60%?

 

[rddouglas1213]

Good question, wondering this myself, even if I've got awhile before I hit age 60.

 

[Provis]

Question regarding reserve situation:

24 years TIS, 15.5 years points (5550 career points), currently in med board.

If rated 60% DOD and 100% VA, what happens when the reservist reaches the official retirement age - does the concurrent kick in at the previous career points (15.5 years = 38.75%) or does it remain 60%?

CRDP at non regular retirement age isn't automatic. You need to apply for the non regular retirement at age 60 or less if reduced due to qualified deployments. It will then be the 38.75% for pension but you net more pay since you can get that + your VA disability. Right now with a Chapter 61 medical retirement your VA compensation offsets your pension.

 

[JAMP7380]

CRDP at non regular retirement age isn't automatic. You need to apply for the non regular retirement at age 60 or less if reduced due to qualified deployments. It will then be the 38.75% for pension but you net more pay since you can get that + your VA disability. Right now with a Chapter 61 medical retirement your VA compensation offsets your pension.

Yes, but if the medical retirement percentage is higher than the VA pay you get the difference, right? Question is; when the person is at retirement age (let’s say 55), then does the number stay at 70% (if DOD % is 70) and the VA amount? Or does it revert.

 

[RonG]

Yes, but if the medical retirement percentage is higher than the VA pay you get the difference, right? Question is; when the person is at retirement age (let’s say 55), then does the number stay at 70% (if DOD % is 70) and the VA amount? Or does it revert.

Upon reserve retirement, the computation will still use the higher DoD rate @70%.

Your retired pay will be reduced dollar for dollar in the amount of VA compensation received. You keep any residual.

CRDP will restore the waiver of pay @ 38.75% of the average high three base pay.

The combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay (38.75% x high three = longevity).

I used 38.75% since it was used earlier in this thread.

Ron

 

[Provis]

Yes, but if the medical retirement percentage is higher than the VA pay you get the difference, right? Question is; when the person is at retirement age (let’s say 55), then does the number stay at 70% (if DOD % is 70) and the VA amount? Or does it revert.

Do you have a 20 year letter? If not CRDP isn't an option.

 

[JAMP7380]

Yes I do

 

[Provis]

Yes I do

Okay. Then at age 60 you can apply for your non regular retirement and qualify for CRDP. That may net you more total compensation if your VA rating is high.

 

[JAMP7380]

Okay. Then at age 60 you can apply for your non regular retirement and qualify for CRDP. That may net you more total compensation if your VA rating is high.

So 60% and VA? My backup date will be about 54 or 55

 

[RonG]

So 60% and VA? My backup date will be about 54 or 55

Hello @JAMP7380

The combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay.
The longevity portion of retired pay is: active duty year and months (or active duty equivalent) x 2.5% (2% if blended retirement) = longevity multiplier (you used 38% in another message).

Average high three base pay x longevity multiplier = longevity portion of retired pay.

See the lengthy reply I sent to you this morning via private message. You had asked similar questions in a PM.

Ron

 

[JAMP7380]

Hello @JAMP7380

The combination of residual retired pay and CRDP cannot exceed the longevity portion of retired pay.
The longevity portion of retired pay is: active duty year and months (or active duty equivalent) x 2.5% (2% if blended retirement) = longevity multiplier (you used 38% in another message).

Average high three base pay x longevity multiplier = longevity portion of retired pay.

See the lengthy reply I sent to you this morning via private message. You had asked similar questions in a PM.

Ron

Makes sense now thank you!