I am 100% P&T with VA and I am 100% with DoD. I have under 10yrs.. Injuries occurred in a combat zone/hazardous duty area so I will file for CRSC I think. However do I get the choice in VA/DoD pay, can someone help offer me some light on which way I should go on better figuring out if I should "choose" DoD or VA pay. Thank you!
100% DoD & 100% P&T VA Under 20yrs. which do I choose
- Thread starter nco.mom.wife
- Start date
I can offer that a retiree must be entitled to DoD retired pay in order to meet one of qualifications for CRSC.
Eligibility [from DFAS]
To qualify for CRSC you must:
- be entitled to and/or receiving military retired pay
- be rated at least 10 percent by the Department of Veteran’s Affairs (VA)
- waive your VA pay from your retired pay
- file a CRSC application with your Branch of Service
Combat Related Special Compensation for Chapter 61 (disability) retirees is the lesser of
--a. the dollar amount of the longevity portion of the DoD retired pay
or
--b. the dollar amount of VA compensation for combat related disabilities. (Approved percentage mirrors the rates found in the VA compensation tables.)
Note: Active duty time is used to determine the longevity portion. Reservists can use their total career retired points and divide by 360 to determine the active duty equivalent factor. Additionally, there are scenarios that are much more complex than what is discussed here.
Your primarily question regarding which option is better would best be answered by someone other than me. I never had to make that choice. However, if you are speaking about the VA form where you choose VA comp or military retired pay (usually during an initial claim), one must agree to waive retired pay in order to receive VA compensation, at least in cases where the VA rating is less than 50%. The waiver was no longer required for regular retirees with 20 years AD due to CRDP. In all cases, including my own as a >20 years AD regular retiree...retired pay must be waived in order to receive CRSC.
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When you are medically retired and VA eligible, DFAS will automatically chose the option which gives you the most money. If for some strange reason you want less money, DFAS will include in its decision letter a form for you to chose less money.
If you are approved for CRSC, DFAS will again calculate the best option for you. And as before, if you want less money, DFAS will include a form to chose the less advantageous option.
It is done for you.
If you are approved for CRSC, DFAS will again calculate the best option for you. And as before, if you want less money, DFAS will include a form to chose the less advantageous option.
It is done for you.
Don't waive VA pay for retired pay. VA is tax free DFAS retired pay is taxed.
Here is how mine breaks down (17.5 years active duty:
4437 (high 3 pay at 75% DOD O3E)
- 3277 (VA compensation 100% with dependents)
= 1160 per month DFAS retired pay.
So instead of getting 4437 from
DFAS I get the same amount only most of it comes from VA and this not taxed.
Here is how mine breaks down (17.5 years active duty:
4437 (high 3 pay at 75% DOD O3E)
- 3277 (VA compensation 100% with dependents)
= 1160 per month DFAS retired pay.
So instead of getting 4437 from
DFAS I get the same amount only most of it comes from VA and this not taxed.
Is your DoD rating classified and combat related? If so, you won't pay any tax on the DoD pay so you may want to do some math depending on what your high-3 salary is. Its hard to tell you which one will work out best without knowing all the details. Just based on your length of service, I'm going to guess that 100% VA is going to be a lot more than 100% DoD, plus your DoD pay will be capped at 75% of your high-3 by law. 100% VA for just a veteran with no spouse and no kids is around $2915.55 a month. IF you get approved for CRSC then that monthly amount may go up depending on the rating %.
Re: "And as before, if you want less money, DFAS will include a form to chose the less advantageous option."
That is true in the sense of what one receives from a government agency such as DFAS. However, I have chosen CRSC rather than CRDP (regular retirement) on occasion because I had other income that make the non-taxable aspect of CRSC more attractive even though it was less money from DFAS. (Example: 90% VA rating which CRDP would allow full receipt of retired pay; vs. 80% approved CRSC, same retiree, who will have to waive the dollar amount of the VA comp in order to receive CRSC and CRSC will replace only the dollar amount for the 80% rate approved by his/her service.)
In other words, if one has additional income (e.g., private pension, state pension, W-2 from private employment, etc.), then there is a possibility that taking non-taxable CRSC would be a better choice than the taxable CRDP, even though the CRSC is less.
This comparison applies only to retirees eligible for both CRDP and CRSC. One cannot receive them simultaneously.
That is true in the sense of what one receives from a government agency such as DFAS. However, I have chosen CRSC rather than CRDP (regular retirement) on occasion because I had other income that make the non-taxable aspect of CRSC more attractive even though it was less money from DFAS. (Example: 90% VA rating which CRDP would allow full receipt of retired pay; vs. 80% approved CRSC, same retiree, who will have to waive the dollar amount of the VA comp in order to receive CRSC and CRSC will replace only the dollar amount for the 80% rate approved by his/her service.)
In other words, if one has additional income (e.g., private pension, state pension, W-2 from private employment, etc.), then there is a possibility that taking non-taxable CRSC would be a better choice than the taxable CRDP, even though the CRSC is less.
This comparison applies only to retirees eligible for both CRDP and CRSC. One cannot receive them simultaneously.
Mine is not combat related, zero CDRP and zero CRSC.