I just got my ipeb results and I received a permant retirement 80/100%. I plan on applying for CRSC once I’m actually out. While I’m very happy with the results I believe the IPEB should have identified 3 of my conditions as combat related. This designation which I think is warranted according to the DODI would make the entirety of my retirement tax free, which would be nice. I was just curious if anyone has tried to make this argument and whether or not the had any success?
Yukon777,
I have been meaning to follow up with you, for clarity and for the group. Ron and other members have been exceptionally helpful through this process, but I had to call DFAS today, to get clarification on this issue for me....and it is still a work in progress.
For me, I am a Chapter 61 retiree (IAW AR 635-40, CHAP 4), with 22.5 all active duty, who went through the med-board starting about two years ago. I officially medically retired on 21 Nov 21 with 60% DOD and 100% VA and my DD214 states SPD code "SEA" with very clear verbiage that the injuries which caused me to be medically retired are in fact combat related. Blocks 26 and 28 provide the info needed, but do not expect DFAS to pick up on this, if the separating pay office does not do what they are supposed to do and make sure DFAS understands that your retirement should be tax-free from that point forward.
I engaged them no less than 10 times to make sure this was annotated and sent to DFAS upon my exit, but they clearly did not do it, and there is often little you can do, even through warranted harassment. The codes changed in April of this year and there is still a lot of confusion, as it seems. My belief is that the change was to make situations like this easier for us, but who knows if it is actually more convoluted.
BLUF: I will likely have to snail mail them my DD214 with a letter showing exactly what is written on the DFAS website (the one RonG links regularly), because my separating pay office isn't responding to my requests for them to send it via secure fax. I asked if there is a back pay type system for this and there is not. They stated that the IRS would be the ones that pick up the "credit," but here is the kicker... if you have a full retirement via CRDP that is untaxed (LOS + VA), you may have to file a separate form to get a special return for the taxes they take out of your retirement that they weren't supposed to in the first place.
I am hoping that I catch you before you final out. If not, please let me know it went for you!