TDRL to PDRL with PEB Comments regarding Pay

Lori

Well-Known Member
Registered Member
My DA Form 199 placing me on the TDRL on 20171220 stated, "The ratings were combined IAW VASRD para 4.25" "70% combined with 50% = 85% which rounds to 90%'

The new DA Form 199 recommends placement on the PDRL dated 20190510 and states,
"The ratings were combined IAW VASRD para 4.25"
"70% combined with 50% = 85% which rounds to 90%"
"Although the Soldier's disability is presently rated at 90 percent, the Soldier will actually receive 75 percent of the Soldier's monthly base pay, or 75 percent of the retired pay base depending on the Soldier's active duty entry date, unless Soldier is eligible for a higher percentage based on years of service. DFAS will calculate the Soldier's pay using the method most favorable for the Soldier.

Does anyone else have this additional DFAS clause on their DA Form 199?

Does the PEB have the authority to limit pay to 75%? Or, what is the appropriate authority that should be cited? I have over 20 years of active duty service with a medical retirement.

Is 10 USC Ch. 71: Computation of Retired Pay from Title 10- Armed Forces Subtitle A - General Military Law Part II Personnel Chapter 71 - Computation of Retired Pay (see link below) the most current pay computation with the most recent changes occurring in 2015?


I have need respond by tomorrow so any advice would be greatly appreciated. Thanks.
 

TXWI

PEB Forum Regular Member
PEB Forum Veteran
Registered Member
the 75% is the limit by law. I have a similar situation. 80% DOD and 100% VA and over 20 year active duty.
also another note is that to get CRDP which is concurrent retirement and VA compensation the CRDP is limited by how much time you put in.
so basically I will get 100% VA compensation pay but only just over 50% for my DOD disability retirement.

If you are getting VA compensation you will only get what your 20 year retirement equals.
if you were not receiving VA compensation then you would get a max of 75% of your monthly base pay.
it is a bit confusing but that is what I understand to be the case.
 

Lori

Well-Known Member
Registered Member
the 75% is the limit by law. I have a similar situation. 80% DOD and 100% VA and over 20 year active duty.
also another note is that to get CRDP which is concurrent retirement and VA compensation the CRDP is limited by how much time you put in.
so basically I will get 100% VA compensation pay but only just over 50% for my DOD disability retirement.

If you are getting VA compensation you will only get what your 20 year retirement equals.
if you were not receiving VA compensation then you would get a max of 75% of your monthly base pay.
it is a bit confusing but that is what I understand to be the case.
Thanks for the reply. I get 100% VA at the w/o dependent rate and I did not get a W2 from the VA last year. I received a W2 from DOD although my disability was 90% and combat rated, does this make sense?
 

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Registered Member
Thanks for the reply. I get 100% VA at the w/o dependent rate and I did not get a W2 from the VA last year. I received a W2 from DOD although my disability was 90% and combat rated, does this make sense?
TXWI was accurate about the 75% ceiling.

1. Your retired will be reduced by the amount of VA compensation. You get to retain any residual (left over retired pay).

2. Since you also qualify for a regular retirement and your VA rating is >= 50%, You will receive CRDP which restores waived/reduced retired pay that is the dollar amount of the longevity portion of retirement pay.

3. Dollar amount of the longevity portion of retirement pay is:
High three for retired pay x (AD years/mo x 2.5%) = longevity portion of retirement pay

Ron
 

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Registered Member
Re: “I did not get a W2 from the VA last year. I received a W2 from DOD although my disability was 90% and combat rated, does this make sense?”

1. VA compensation is not taxable so no 1099-R form is issued.

2. From DFAS:
TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.”

Per DFAS: VA Compensation Deduction: For most members who retired under a non-disability law, retired pay taxable income is simply reduced by the amount of any VA compensation received. For members who retired under the Temporary Disability Retired List or the Permanent Disability Retired List, retired pay taxable income is reduced by whichever of the following is greater:
  • The amount of VA compensation received or
  • A tax-exempt amount of gross pay determined by the following formula:
Step 1:
Military (not VA) disability percentage: %
x (times) Active Duty pay at the time of retirement:
= (equals) Initial amount of tax-exempt gross pay

Step 2:
Initial amount of tax-exempt gross pay:
x (times) applicable Cost-Of-Living-Adjustment (COLA): %
= (equals) Current tax-exempt gross pay

This information is reported by DFAS on your 1099-R.

NOTE: CRDP can be taxable...if the retired pay it restores is taxable, then the CRDP will be taxable.

Ron
 
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