Maybe just Maybe, this is the answer:
(A) A qualified retiree receiving veterans' disability compensation for a disability rated as 100 percent.
(B) A qualified retiree receiving veterans' disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability.
He was rated by the PEB 100% becuase of a heart condition.
If the above is correct, then he would draw 100% from the VA and 100% (75% payable) from the PEB.
Comments?
No, that's not what that section says. Here is the full quote:
"- (1) In general. - Subject to subsection (b), a member or former member of the uniformed services who is entitled for any month to retired pay and who is also entitled for that month to veterans' disability compensation for a qualifying service-connected disability (hereinafter in this section referred to as a "qualified retiree") is entitled to be paid both for that month without regard to sections 5304 and 5305 of title 38. During the period beginning on January 1, 2004, and ending on December 31, 2013,
payment of retired pay to such a qualified retiree is subject to subsection (c), except that payment of retired pay is subject to subsection (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004, in the case of the following:
(A) A qualified retiree receiving veterans' disability compensation for a disability rated as 100 percent.
(B) A qualified retiree receiving veterans' disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability."
So, that section about subsection c sends you to this:
"(c) Phase-in of Full Concurrent Receipt.— During the period beginning on January 1, 2004, and ending on December 31, 2013, retired pay payable to a qualified retiree that pursuant to the second sentence of subsection (a)(1) is subject to this subsection shall be determined as follows:
(1) Calendar year 2004.— For a month during 2004, the amount of retired pay payable to a qualified retiree is the amount (if any) of retired pay in excess of the current baseline offset plus the following:
(A) For a month for which the retiree receives veterans’ disability compensation for a disability rated as total, $750.
(B) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 90 percent, $500.
(C) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 80 percent, $350.
(D) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 70 percent, $250.
(E) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 60 percent, $125.
(F) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 50 percent, $100...."
There are a bunch of years that follow the same format, terminating in 2014. So, the 100% should only serve to eliminate the phase in. It does not mean that you would get CRDP at less than age 60 based on 20 years of reserve service. Only thing I can think of is that DFAS made an error and thought he had active service OR the original post is wrong on some details.