Retirement Pay Estimation: 60% DOD/100% VA

[HIANG Officer]

In anticipation to the reality of retiring soon (but hoping to squeeze another month on appeals, which may or may not be possible in my situation), I was hoping to get a rough estimate of retirement pay (both retired pay and VA Disabiity). Here's my situation: 22 years TAFMS, prior enlisted officer (10 yrs regular AD enlisted, 5 years HI ANG enlisted, 7 years HI ANG Commissioned).


Avg 36 Base pay = $8322

22 TAFMS @ 2.5% = 55%

Retirement pay = $8322 x 55% = $4577

DOD proposed rating = 60% for unfitting condition.

VA proposed rating = 100% ($4000) (without unfitting condition calculated, I still equate to 100% VA rating)

#2. Residual retired pay is $577 ($4577-4000)

#3. Retired pay should be computed at 60%; $8322 x 60% = $4993

#4. I have over 20 years TAFMS so I am eligible to receive CRDP

Is my CRDP the same as my retirement pay of $4577? Is it the same as Longevity computation?

#5. Residual retired pay + CRDP = $577 + $4577 = $5154


Expected total retirement pay (retired pay/w residual retired pay + VA disability comp): $5154 + $4000 = $9154

Does this look about right? Understanding that the retired pay is subject to federal and state income tax (dependent on state). Also, I was contemplating to see if I can get the unfit condition CRSC due to shortly returning from deployment, i received my second pulmonary embolism, which is my unfitting DOD condition for military. Would I be receiving additional compensation due to CRSC?

Any insights, information, and advice will be greatly appreciated!!

 

[Provis]

In anticipation to the reality of retiring soon (but hoping to squeeze another month on appeals, which may or may not be possible in my situation), I was hoping to get a rough estimate of retirement pay (both retired pay and VA Disabiity). Here's my situation: 22 years TAFMS, prior enlisted officer (10 yrs regular AD enlisted, 5 years HI ANG enlisted, 7 years HI ANG Commissioned).


Avg 36 Base pay = $8322

22 TAFMS @ 2.5% = 55%

Retirement pay = $8322 x 55% = $4577

DOD proposed rating = 60% for unfitting condition.

VA proposed rating = 100% ($4000) (without unfitting condition calculated, I still equate to 100% VA rating)

#2. Residual retired pay is $577 ($4577-4000)

#3. Retired pay should be computed at 60%; $8322 x 60% = $4993

#4. I have over 20 years TAFMS so I am eligible to receive CRDP

Is my CRDP the same as my retirement pay of $4577? Is it the same as Longevity computation?

#5. Residual retired pay + CRDP = $577 + $4577 = $5154


Expected total retirement pay (retired pay/w residual retired pay + VA disability comp): $5154 + $4000 = $9154

Does this look about right? Understanding that the retired pay is subject to federal and state income tax (dependent on state). Also, I was contemplating to see if I can get the unfit condition CRSC due to shortly returning from deployment, i received my second pulmonary embolism, which is my unfitting DOD condition for military. Would I be receiving additional compensation due to CRSC?

Any insights, information, and advice will be greatly appreciated!!

CRDP is basically when you get all of your VA compensation and all of your earned longevity pension. So if you have earned an active duty 20 year retirement then you get $4,577 per month from DFAS & all of your VA compensation which would be $4,000 according to your numbers. Were any of your unfitting conditions determined to be combat related by the PEB? If so, since your DOD% is higher than your earned longevity you would qualify to have your pension exempt from federal income taxes. If you get CRDP you don't have to think about the DOD% or chapter 61 retirement amount is because the most you can get is all of your pension and va compensation. So total compensation will be $4,577 + $4,000 = $8,577 total. Getting a higher DOD% than earned longevity will not net you more compensation unless that unfitting condition qualifies your pension to be exempt from federal taxes. That federal exemption won't net you more dollars than the calculations I just gave you. It just means that come tax time you don't have to pay the IRS.

This information is accurate as long as you have 20 or more AFS years and have earned an Active Duty regular retirement. If you haven't and only have 20 good years then its a different story but I don't want to confuse you and go into those details if they don't concern you. There isn't much value in getting CRSC if you have CRDP because you only get one or the other and both have the cap of not getting more than the total of your earned longevity pension + VA compensation.

 

[HIANG Officer]

CRDP is basically when you get all of your VA compensation and all of your earned longevity pension. So if you have earned an active duty 20 year retirement then you get $4,577 per month from DFAS & all of your VA compensation which would be $4,000 according to your numbers. Were any of your unfitting conditions determined to be combat related by the PEB? If so, since your DOD% is higher than your earned longevity you would qualify to have your pension exempt from federal income taxes. If you get CRDP you don't have to think about the DOD% or chapter 61 retirement amount is because the most you can get is all of your pension and va compensation. So total compensation will be $4,577 + $4,000 = $8,577 total. Getting a higher DOD% than earned longevity will not net you more compensation unless that unfitting condition qualifies your pension to be exempt from federal taxes. That federal exemption won't net you more dollars than the calculations I just gave you. It just means that come tax time you don't have to pay the IRS.

This information is accurate as long as you have 20 or more AFS years and have earned an Active Duty regular retirement. If you haven't and only have 20 good years then its a different story but I don't want to confuse you and go into those details if they don't concern you. There isn't much value in getting CRSC if you have CRDP because you only get one or the other and both have the cap of not getting more than the total of your earned longevity pension + VA compensation.

Thanks Provis! I have to reply back to my PEBLO on whether I agree with the findings. CRSC was something I didn’t consider but after quickly skimming through some regs, I think I’m going to contest and see if I can presumptively have CRSC applied to burn pits and pulmonary embolism from deployment.

 

[Provis]

CRSC has nothing to do with what you are currently going through. CRSC can only be applied for after you retire and in your case won't help you nearly as much as others since CRDP makes you whole.

If you mean combat related designated for your unfit condition the way to appeal that is through a FPEB. The standards for that are different as each body is bound by different laws on the books so just because you think its connected to burn pits doesn't mean your appeal will prevail. If you do appeal via a FPEB consider hiring a dedicate attorney.