Understanding Retirement Order

[Buck Nasty]

Hello, I recently received my retirement order after my PEB. I'm going to be out of town for a few months with no ability to submit retirement documentation so I'm trying to get everything together to submit to Army before I leave, which is before my retirement date.

Army Retirement Order Questions:
1. What is the Allotment Code on the order? The statement is: "Retirement Type and allotment code: Permanent/11"
a. I can't find anything online about that allotment code
2. As far as time in service is concerned, what is meant by Disability Retirement: 14 yrs 2 mos 10 days vs Basic Pay: 22 yrs 5 mos 29 days?
a. Are either of these used in determining longevity? Because points wise, 3606 I only have 10 years of AD service.

Other Questions:
3. With regard to applying for CRSC pay, do they use the 10 years or the 14 years listed above?
4. How do you apply for the VA waiver? Is it automatic when you fill out the DD 2656 and select, "Yes I'm receiving VA PAY?"

My State (National Guard) retirement office will only speak to me after I retire. I will not have that opportunity until after 120 days after I retire. I need to figure this stuff out now so I can submit paperwork early.

 

[Provis]

Hello, I recently received my retirement order after my PEB. I'm going to be out of town for a few months with no ability to submit retirement documentation so I'm trying to get everything together to submit to Army before I leave, which is before my retirement date.

Army Retirement Order Questions:
1. What is the Allotment Code on the order? The statement is: "Retirement Type and allotment code: Permanent/11"
a. I can't find anything online about that allotment code
2. As far as time in service is concerned, what is meant by Disability Retirement: 14 yrs 2 mos 10 days vs Basic Pay: 22 yrs 5 mos 29 days?
a. Are either of these used in determining longevity? Because points wise, 3606 I only have 10 years of AD service.

Other Questions:
3. With regard to applying for CRSC pay, do they use the 10 years or the 14 years listed above?
4. How do you apply for the VA waiver? Is it automatic when you fill out the DD 2656 and select, "Yes I'm receiving VA PAY?"

My State (National Guard) retirement office will only speak to me after I retire. I will not have that opportunity until after 120 days after I retire. I need to figure this stuff out now so I can submit paperwork early.

1. Gobbily gook. Just states you are permanently retired. The code is for service and doesn't affect you.
a. Thats why you can ignore that as its not pertinent information.
2.Disability retirement is converting your points to active duty equivalent time. If you only have 3606 points there may be an error in the caclulations and you may want to ask HRC about it. However, there are membership points etc. and 10 years of AD service is 3650 points in itself give or take since there is probably some leap years in there. Its possible your point statement is off and the longevity calculation is correct. That happened to my wife. They gave her more points than she should have gotten on here 1405 points statement. I would guess this is more the case since you stated 10 years AD is more points than you say your total is.

3. They use longevity pension earned which would be the 14 years 2 months and 10 days. Basic pay just is the period you were on the rolls. For reservists and guard the basic pay is longer since that is the time measured from entering service to leaving service.
4. On the application for VA compensation there is a box regarding the waiver. YOU MUST NOT CHECK IT! If you checked that box you basically opted out receiving VA compensation because you were not willing to waive a portion of your chapter 61 pension. So double check the form you filled out and make sure you did not check the box. If you didn't check the box when applying for VA compensation then you are good. If you did then your VA compensation would stop once your NG retirement started paying out.

 

[Buck Nasty]

Thank you for the response!

1. Gobbily gook. <-- Love this response, explains why there's nothing on the ole interwebs about it.
4. I doubt I checked it but I'll look. Being guard I was able to do all my VA claims and get rated before I got out so I wasn't thinking about it at the time. I had a VA Service Organization help me fill out the paperwork, so I'll have to see if I can find the submitted paperwork.

 

[Buck Nasty]

1. Gobbily gook. Just states you are permanently retired. The code is for service and doesn't affect you.
a. Thats why you can ignore that as its not pertinent information.
2.Disability retirement is converting your points to active duty equivalent time. If you only have 3606 points there may be an error in the caclulations and you may want to ask HRC about it. However, there are membership points etc. and 10 years of AD service is 3650 points in itself give or take since there is probably some leap years in there. Its possible your point statement is off and the longevity calculation is correct. That happened to my wife. They gave her more points than she should have gotten on here 1405 points statement. I would guess this is more the case since you stated 10 years AD is more points than you say your total is.

3. They use longevity pension earned which would be the 14 years 2 months and 10 days. Basic pay just is the period you were on the rolls. For reservists and guard the basic pay is longer since that is the time measured from entering service to leaving service.
4. On the application for VA compensation there is a box regarding the waiver. YOU MUST NOT CHECK IT! If you checked that box you basically opted out receiving VA compensation because you were not willing to waive a portion of your chapter 61 pension. So double check the form you filled out and make sure you did not check the box. If you didn't check the box when applying for VA compensation then you are good. If you did then your VA compensation would stop once your NG retirement started paying out.

Found what you're talking about! It's not checked... PHEW!

So just to understand, the VA Waiver is automatic once you retire from the Army? I will make more in DOD Retirement, and I'm V1/V3 = Yes so no tax on the DOD pay, but want to make sure I apply for CRSC as well.

Thank you again for walking me through this.

 

[Provis]

Found what you're talking about! It's not checked... PHEW!

So just to understand, the VA Waiver is automatic once you retire from the Army? I will make more in DOD Retirement, and I'm V1/V3 = Yes so no tax on the DOD pay, but want to make sure I apply for CRSC as well.

Thank you again for walking me through this.
View attachment 10540

Yes. If your pension is higher than your VA compensation you get the difference. My wife is in that situation because she is an Army Major 04 with 17 years AD equivalent service. Here DOD% was maxed out at 75% and that amount was higher than her VA compensation. So for example lets say your Pension is $6,000 a month and you get VA disability at $4,200 this is how it would work. Your RAS would show $6,000 chapter 61 pension then show a deduction of $4,200 for VA and your net pay would be $1,800. If your chapter 61 pension is tax exempt then those number would stay the same and there would be no w-9 or any taxes due since all income is exempt.

 

[Provis]

Found what you're talking about! It's not checked... PHEW!

So just to understand, the VA Waiver is automatic once you retire from the Army? I will make more in DOD Retirement, and I'm V1/V3 = Yes so no tax on the DOD pay, but want to make sure I apply for CRSC as well.

Thank you again for walking me through this.
View attachment 10540

Also VA waiver is automatic as long as your VA application didn't have box 26 checked when you originally applied for VA compensation. See note on actual form: "Note that if you check the box in Item 26, you will not receive VA compensation, if granted. If you are currently in receipt of VA compensation and you check the box in Item 26, your VA compensation will be terminated, if you are also eligible for military retired pay. IMPORTANT: VA COMPENSATION PAY IS NON-TAXABLE."

If your unsure just call the VA and ask them to ensure you are ready to go once retirement pay comes your way! Also, unless you are applying for CRSC it would not matter if you did waive your VA compensation since all of your pension is exempt from taxes and greater than your VA compensation. However, if you apply for CRSC you must have the VA waiver in order to receive it.