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Retired Pay

RC MEB

PEB Forum Regular Member
Registered Member
I am getting conflicting information

stats
MEB @ 20 YRS 8 mo
High 3 pay 5540
CSB redux took at 15 years
30% DOD
100% VA
Separation date 7 April 2021



So people say I will only get 42.33% because I took redux others say I will get years of service at 51.68% but no one knows for sure. Everything I read says years of service does anyone know the definitive answer to this?
 

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hello @RC MEB ,

You are eligible for CRDP by virtue of having 20+ years of active duty and a VA rating of 50% or more.

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

Your CRDP (which restores some or all of waived retired pay) will be computed using the REDUX formula.

The people who told you that you would receive the full longevity amount were using this provision: "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, CRDP is payable to CH 61 retirees only if they qualify for another type retirement (which is the case for you), The REDUX formula is used for that computation.

Not that it matters, but I have seen possibly three dozen cases like yours and the results from the DFAS computation in several of those.

This summarizes a discussion between a colleague and DFAS in 2015.

I addressed this issue to DFAS and the response from DFAS, received in October 2015, was:

Question:
A recurring question that I see on various veteran websites concerns how CRDP is calculated when a veteran with more than 20 years service has been retired under Chapter 61 but previously opted for the REDUX system.

When the VA disability compensation exceeds the chapter 61 retirement amount, is the amount restored by CRDP calculated at the reduced REDUX retirement factor or at the 2.5% per year of service rate used for Chapter 61 purposes?

For example, a retiree has 20 years service and DOD disability finding of 30% disability. The retiree is retired at 50% based on 2.5% per year of service IAW chapter 61. All of his retirement is offset by his VA compensation. His REDUX retirement would be 40%. Is CRDP dollar amount based on the 40% or the 50% factor?

Answer:
The CRDP dollar amount is based on the 40% REDUX retirement. If you would like an audit of your account or have any further questions they may be directed in writing to:...[retired pay]


Ron
 
Last edited:

RonG

PEB Forum Regular Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
Hello @RC MEB ,

Case with info you provided.

stats
MEB @ 20 YRS 8 mo
High 3 pay 5540
CSB redux took at 15 years
30% DOD
100% VA
Separation date 7 April 2021

Estimate using your info.

1. 30 yrs minus 20 years 8 months active duty = 9.333 yrs unserved to 30
20.667 x 2.5% = 51.67%
51.67% minus 9% for years less than 30= 42.67
4 months x .833 =0.332; 42.67 minus 0.332 = 42.34% REDUX multiplier (small rounding difference)

2. 5540 high three x 42.34% = 2345.64 Retired pay and also CRDP amount


REDUX
The retired pay or retainer pay multiplier for a regular member with a DIEMS on or after August 1, 1986, but before January 1, 2018, who has accepted the CSB and who retires with less than 30 years of creditable service is: a. The product of 2.5 percent times the member’s years of creditable service; b. Minus 1 percentage point for each full year of creditable service less than 30; and c. One twelfth of 1 percentage point for each full month of creditable service less than a full year.

Ron
 
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