Would appreciate help on a CRSC and total compensation estimate

G

Ghazg

PEB Forum Regular Member
Registered Member
Hello,

I just signed my DA 199 and would appreciate some help figuring out what my total compensation (including CRSC) will be.

1. High three pay: $7701.60

2. DoD disability retirement percentage: 100%

3. Years and months of active duty: 2934 points which looks like it translates to 8 years 1.8 months (I'm not sure if this rounds up or down).

Also important to add that I am on blended retirement.

4. VA compensation:
100%
and
$4172.46
plus
I have a spouse and 3 children under 18.

5. My 100% DoD rating is deemed combat related.

6. I will be permanently retired as well. Help figuring that amount out would be much appreciated.


Please let me know if there is any missing info, and I appreciate the help!
 
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If your high 3 monthly base is correct your Chapter 61 retirement pay would be $5,775.75 (75% is maximum by law)

You wouldn't qualify for cany CRSC since your base longevity + VA compensation is less than that amount. So there is no VA recoupment via CRSC.
 
Great thank you. That's what my calculations were getting me and wanted to check.

Would the retirement pay be $4172 (from VA and untaxed) + $1603.29 (from DFAS) or would I have to either pick to get it all from DFAS or just take my previous VA amount?
 
Ghazg said:
Great thank you. That's what my calculations were getting me and wanted to check.

Would the retirement pay be $4172 (from VA and untaxed) + $1603.29 (from DFAS) or would I have to either pick to get it all from DFAS or just take my previous VA amount?
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You got it. If you accept VA compensation it offsets your pension. Since you said one or more of your DOD% was designated as combat related it doesn't matter. You could even decline VA compensation since your entire Chapter 61 compensation would be exempt from taxes. My wife was in the same situation but she was AGR with 17 years equivalent so she could get CRSC to claw back some of the VA offset since the total of her earned longevity + VA compensation was more than her chapter 61 income even at 75% DOD.
 
Provis said:
You got it. If you accept VA compensation it offsets your pension. Since you said one or more of your DOD% was designated as combat related it doesn't matter. You could even decline VA compensation since your entire Chapter 61 compensation would be exempt from taxes. My wife was in the same situation but she was AGR with 17 years equivalent so she could get CRSC to claw back some of the VA offset since the total of her earned longevity + VA compensation was more than her chapter 61 income even at 75% DOD.
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This is very interesting. My Google searching hasn’t turned anything up about Chapter 61 compensation not being subject to tax. Could you possibly point me in the right direction?
 
Ghazg said:
This is very interesting. My Google searching hasn’t turned anything up about Chapter 61 compensation not being subject to tax. Could you possibly point me in the right direction?
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@Ghazg

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 (not VA) 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.

Ron
 
Provis said:
If your high 3 monthly base is correct your Chapter 61 retirement pay would be $5,775.75 (75% is maximum by law)

You wouldn't qualify for cany CRSC since your base longevity + VA compensation is less than that amount. So there is no VA recoupment via CRSC.
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Hello, one more question that came up after signing my retirement docs: my time in service is 12 years 9 months (what my drill pay has been based off), but my retirement orders say: Total Service for Disability Retirement : 8 years 1 month. This is underneath the section that says my basic pay is 12 years 9 months.

Will my retirement pay be based off 75% of the over 8 years pay or the over 12 years pay?

Thank you.
 
Hello @Ghazg

Neither.

75% (if @100%) x average high three base pay = disability retired pay

Ron

added: High three is the total of one’s highest 36 months of pay divided by 36.
 
RonG said:
Hello @Ghazg

Neither.

75% (if @100%) x average high three base pay = disability retired pay

Ron

added: High three is the total of one’s highest 36 months of pay divided by 36.
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Thank you. So if I am in the National Guard currently, is this calculated as if I were active duty during that time?
 
Ghazg said:
Thank you. So if I am in the National Guard currently, is this calculated as if I were active duty during that time?
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Hello,

cc: @Provis

I’ve copied Provis since he was/is NG I believe.

Retired pay — that is not disability.

”The retired pay base for a qualified reserve retirement under the High-36 retirement plan is the total amount of monthly basic pay to which the member was entitled during the member's high-36 months divided by 36. This includes months to which the member would have been entitled if the member had served on active duty during the entire period. Usually this will be the average of the 36 months for the member's pay grade and years of service taken from the pay tables in effect for the 36 months immediately preceding the date that retired pay begins, regardless of when the member stopped participation (i.e. went into the gray area).”

Ron
 
RonG said:
Hello,

cc: @Provis

I’ve copied Provis since he was/is NG I believe.

Retired pay — that is not disability.

”The retired pay base for a qualified reserve retirement under the High-36 retirement plan is the total amount of monthly basic pay to which the member was entitled during the member's high-36 months divided by 36. This includes months to which the member would have been entitled if the member had served on active duty during the entire period. Usually this will be the average of the 36 months for the member's pay grade and years of service taken from the pay tables in effect for the 36 months immediately preceding the date that retired pay begins, regardless of when the member stopped participation (i.e. went into the gray area).”

Ron
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@RonG is correct.
 
Thank you both. I really appreciate it.

So @RonG , going by this by my high 3 is actually $6978, not the higher amount in my original post. I assume I am still not eligible for CRSC for this amount but wanted to ask.
 
Ghazg said:
Thank you both. I really appreciate it.

So @RonG , going by this by my high 3 is actually $6978, not the higher amount in my original post. I assume I am still not eligible for CRSC for this amount but wanted to ask.
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Your disability retired pay would be 6978 x 75% = disability retired pay

It would be reduced by the amount of your VA comp, which you show as 4172.46.

If there is residual (left over) retired pay, you keep it.

Your CRSC if any, would be the lesser of the approved CRSC percentage (amount found in VA comp tables)
OR
The longevity portion of your retired pay.
The number of years and months shown under DISABILTY RETIREMENT IN YOUR orders x 2.5% = disability multiplier
high three x longevity multiplier = longevity amount


Notes:
1. The combination of CRSC and residual retired pay cannot exceed the longevity amount,
2. 2% is used instead of 2.5% for Blended Retirement System
3. “Total Service for Disability Retirement : 8 years 1 month.”

Ron
 
Thanks @RonG . Just did the calculation myself and it looks like I would be due $276 CRSC. I really appreciate your help.
 
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