Retirement Options: Medical, Regular, or Other

[jamessong]

I tried to contact VSO in the Bay Area, California, but I am having a very difficult time finding one that is willing to help me through this process.

I recently separated from the US Army Reserves AGR program into the IRR. In which, I am a captain O3E, and I have 23 years, 10 months, and 10 days of service, which 12 years of federal active services. My total points credible is 5609. Furthermore, my VA rating is 100% permanent and total (P&T) - 70% PTSD, 50% Sleep Apnea, and 50% migraine, which are combat related.

For example:

100% VA Disability pay is $3,621.95 alone.

Retire pay is based on rank of captain/O3E pay: $8421.14 * (5609 / 360 = 15.58 * 2.5% = .389 = 39%) 39% = $3,284.24. I know I will not be eligible until I am 58 or so.

And I have an option to retire into one of these categories. However, I am having a tough time figuring out which one is the most beneficial option for my family and myself.

Medical? Is Tricare Prime Remote provided when medically retired?

Concurrent Retirement Disability Pay?

Regular?

Combat Related Special Compensation?

Can anyone help me through this process? I am a visual learner, so numbers would help me.

 

[RonG]

Hello,

Regarding…

For example:

100% VA Disability pay is $3,621.95 alone.

(1)Retire pay is based on rank of captain/O3E pay: $8421.14 * (5609 / 360 = 15.58 * 2.5% = .389 = 39%) 39% = $3,284.24. I know I will not be eligible until I am 58 or so.

And I have an option to retire into one of these categories. However, I am having a tough time figuring out which one is the most beneficial option for my family and myself.

(2) Medical? Is Tricare Prime Remote provided when medically retired?

(3)Concurrent Retirement Disability Pay?

(4)Regular?

(5)Combat Related Special Compensation?

Can anyone help me through this process? I am a visual learner, so numbers would help me.
—-

Comments:

1 above: The average high three base pay (highest 36 months divided by 36) should be used in the computation.

2 above: Disability Retirement is the same as item one except the DOD disability percentage could be used if it is higher than the ~39% for longevity you determined. The TRICARE home page is
at https://www.tricare.mil/ <—LINK

3 above: CRDP for a non-regular retirement (NG/reserves) requires 20 good years, meeting the age requirement, and 50% or more VA comp. One could accept a disability retirement and as they near the age requirement apply for a non-regular retirement.

4 above: Regular retirement requires 20 years active duty.

5 above: One can be eligible for CRSC with any of the retirements discussed here.
Army CRSC Page LINK <—-
Collection of CRSC information LINK <—-

—-
Ron

 

[jamessong]

Thank you for the information. So would a regular retirement be better, as I will receive it at 58 or so?

Or would a medical retirement (disability retirement) be better?

James

 

[RonG]

Thank you for the information. So would a regular retirement be better, as I will receive it at 58 or so?

Or would a medical retirement (disability retirement) be better?

James

I think you are confusing REGULAR retirement and NON-REGULAR retirement. A non-regular retirement is common for Reserves and NG personnel. twenty good years are required, plus meeting the age requirement. I have a regular retirement since I had >20 years active duty when I retired in 1991.

1. Generally, a regular retirement (aka 20 year AD retirement) guarantees CRDP if one had =>50% VA rating. This results in the retiree to receive all their VA compensation and the longevity portion of their retired pay. Note: Nothing you wrote shows you qualify for regular retirement.

2. If you receive a disability retirement and do not qualify for CRDP, your retired pay will be reduced dollar for dollar in the amount of the VA compensation received, but you get to keep any retired pay in excess of the VA offset. The only path to having some of the offset replaced is thru CRSC.

3. You do not show have many Good Years you have for a non-regular (i.e., national guard or reserves). If one has 20 Good Years and had =>50% VA rating. they could receive all their longevity retired pay and all their VA compensation upon achieving the age requirement.

SUMMARY:
--The description of your situation does not show you qualify for a regular retirement.
--If you have 20 Good Years, you will qualify for non-regular retirement upon reaching the age requirement and applying for non-regular retirement (and receive CRDP (restores waived retired pay) plus your VA comp. If you do have 20 Good Years and are offered a disability retirement now, your acceptance would not negate your right to a non-regular retirement later.
--If you receive a disability retirement and do not qualify for CRDP, your retired pay will be reduced dollar for dollar in the amount of the VA compensation received, but you get to keep any retired pay in excess of the VA offset. The only path to having some of the offset replaced is thru CRSC.

Ron

 

[Provis]

I think you are confusing REGULAR retirement and NON-REGULAR retirement. A non-regular retirement is common for Reserves and NG personnel. twenty good years are required, plus meeting the age requirement. I have a regular retirement since I had >20 years active duty when I retired in 1991.

1. Generally, a regular retirement (aka 20 year AD retirement) guarantees CRDP if one had =>50% VA rating. This results in the retiree to receive all their VA compensation and the longevity portion of their retired pay. Note: Nothing you wrote shows you qualify for regular retirement.

2. If you receive a disability retirement and do not qualify for CRDP, your retired pay will be reduced dollar for dollar in the amount of the VA compensation received, but you get to keep any retired pay in excess of the VA offset. The only path to having some of the offset replaced is thru CRSC.

3. You do not show how many Good Years you have for a non-regular (i.e., national guard or reserves). If one has 20 Good Years and had =>50% VA rating. they could receive all their longevity retired pay and all their VA compensation upon achieving the age requirement.

SUMMARY:
--The description of your situation does not show you qualify for a regular retirement.
--If you have 20 Good Years, you will qualify for non-regular retirement upon reaching the age requirement and applying for non-regular retirement (and receive CRDP (restores waived retired pay) plus your VA comp. If you do have 20 Good Years and are offered a disability retirement now, your acceptance would not negate your right to a non-regular retirement later.
--If you receive a disability retirement and do not qualify for CRDP, your retired pay will be reduced dollar for dollar in the amount of the VA compensation received, but you get to keep any retired pay in excess of the VA offset. The only path to having some of the offset replaced is thru CRSC.

Ron

Well said!

 

[jamessong]

I can't find the AR, but I do remember in one of the ARs that if I had 15 years active duty, I should qualify for active duty medical retirement.

Does anyone know about that?

 

[RonG]

I can't find the AR, but I do remember in one of the ARs that if I had 15 years active duty, I should qualify for active duty medical retirement.

Does anyone know about that?

1. An individual (including reserves/NG/Regular) can qualify for a disability retirement in the military with much less than 15 years. However, they will not qualify for CRDP.

2. TERA retirement:
Army:

Temporary Early Retirement Authority (TERA)​

Regular Army: Active Duty

Summary

The Army has ended the Temporary Early Retirement Authority (TERA) program. Service members eligible for TERA must have submitted a request through their chain of command by January 15, 2018 for early retirement consideration. The authority to approve TERA was terminated on February 28, 2018.
The authority to utilize TERA until December 31, 2025 is for force-shaping of active military forces. So while the use of TERA is still authorized, the conditions for its use are not applicable at the present time.

3. TERA, other services: Recommend reviewing TERA info on the service's web page.


============================
4. Reserves/NG only
15 year Notice of Eligibility was enacted in 1999 for physical disabilities not incurred in the line of duty

Eligibility

Historically, the 15 year Notice of Eligibility was enacted in 1999 for physical disabilities not incurred in the line of duty per Title 10 USC 12731B. Title 10 USC 12731b, Special Rule for Members with Physical Disabilities Not Incurred in the Line of Duty, governs issuance of the 15 year Notification of Eligibility (NOE) letter. In the case of a member of the Selected Reserve of a reserve component who no longer meets the qualifications for membership in the Selected Reserve solely because the member is unfit because of physical disability, the Secretary concerned may, for purposes of section 12731 of this title, determine to treat the member as having met the service requirements of subsection (a)(2) of that section and provide the member with the notification required by subsection (d) of that section if the member has completed at least 15, and less than 20, years of service computed under section 12732 of this title. The Selected Reserves is comprised of Troop Program Units (TPU), Individual Mobilization Augmentee (IMA), or Active Guard Reserve (AGR). Individual Ready Reserve (IRR) Soldiers are not eligible for the 15 year NOE.


Effective March 12, 2009, new guidance was issued which reinterprets the intent of Title 10 USC 12371b. Previous guidance indicated eligibility was based on a physical disability not incurred in the line of duty. However, current interpretation of the law indicates that although its title infers applicability, it is only for members with disabilities not incurred in the line of duty; the law, as written, does not make this distinction. Therefore, the Early Qualification Retired Pay at Age 60 provision applies to all Selected Reserve Soldiers whether or not the physical disability was incurred or aggravated in the line of duty.


A Soldier may not qualify for this entitlement if the disability was the result of the member’s intentional misconduct, willful neglect, or willful failure to comply with standards and qualifications for retention established by the Secretary concerned or the disability was incurred during a period of unauthorized absence.

----
Ron

 

[jamessong]

Thank you.