Resource icon

DFAS Info for Concurrent Payment of Military Retired Pay and VA Compensation--Interpretation of Laws

RonG

Super Moderator
Staff Member
PEB Forum Veteran
Lifetime Supporter
Registered Member
RonG submitted a new resource:

DFAS Info for Concurrent Receipt of Military Retired Pay and VA Compensation--New Interpreation - Concurrent Receipt DFAS DoD Financial Manatement Regulation--Eliimination of Term "CRDP"

Concurrent Military Retired Pay and VA Disability Compensation


There is a general rule of law that a military retiree may not receive both Disability Compensation from the Department of Veterans Affairs (VA Disability Compensation) and military retired pay concurrently. Instead, a military retiree may waive his/her military retired pay, dollar for dollar, in order to receive VA Disability Compensation. This law is located at Title 38 United States Code (U.S.C.)...

Read more about this resource...
 
Last edited:
If member is Chapter 61 PDRL they can receive both Disability retirement and VA Disability.

However, if members Chapter 61 “Disability” Retirement (capped at 75%) using DFAS Method A exceeds “Longevity” (2.5% x years of service, no cap) DFAS Method B then member must waive the difference to receive VA Disability!
 
If member is Chapter 61 PDRL they can receive both Disability retirement and VA Disability.

However, if members Chapter 61 “Disability” Retirement (capped at 75%) using DFAS Method A exceeds “Longevity” (2.5% x years of service, no cap) DFAS Method B then member must waive the difference to receive VA Disability!
It seems that scenario is much like the "old" CRDP rules where residual retired pay (amount remaining after VA offset) plus CRDP could not exceed the longevity computation.
They also received their full VA compensation.

The "new" interpretation, as you described, is receipt of computed longevity amount and also receipt of the full VA compensation.

Ron
 
Hello,

1.3.3. Career Disability Retiree. This is a member who was retired under Title 10, U.S.C., Chapter 61 with 20 years or more of service creditable under 10 U.S.C. § 1405, or at least 20 years of service computed under 10 U.S.C. § 12732, at the time of the member's retirement.

1.3.6. Hypothetical Longevity Retired Pay. This is the amount of retired pay to which the member would have hypothetically been entitled if the member had hypothetically been retired for reasons other than physical disability under Title 10, U.S.C., Chapter 61.

1.3.7. General Waiver Requirement. This is the general rule that a military retiree may not receive both DVA Disability Compensation and military retired pay simultaneously, but may waive military retired pay in order to receive DVA Disability Compensation. See 38 U.S.C. § 5304 and 38 U.S.C. § 5305. The General Waiver Requirement is always subject to the exception under 10 U.S.C. § 1414.

1.3.8. Exception to the General Waiver Requirement. This is the rule enacted in 10 U.S.C. § 1414 to make specific and limited exceptions to the General Waiver Requirement.

1.3.9. Qualified Retiree. This is a member or former member of the Uniformed Services who is entitled for any month to both retired pay and DVA Disability Compensation based on a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the DVA schedule for rating disabilities. A Disability Retiree must be a Career Disability Retiree to be a Qualified Retiree.

1.3.10. Qualified Career Disability Retiree. This is a person who meets both the definition of Career Disability Retiree and Qualified Retiree

2.2 Qualifying Service-Connected Disability A qualifying service-connected disability is a service-connected disability (or combination of service-connected disabilities) that is rated by the Secretary of Veterans Affairs as not less than 50 percent disabling on the DVA schedule for rating disabilities

2.3.2. Qualified Career Disability Retirees - 20 Years or More. Such members may receive concurrent Title 10, U.S.C., Chapter 61 Disability Retired Pay and DVA Disability Compensation but, in certain circumstances, may be required to waive a portion of the Title 10, U.S.C., Chapter 61 Disability Retired Pay.

2.3.3. Nature of the Payments. A Qualified Career Disability Retiree is entitled to be paid Title 10, U.S.C., Chapter 61 Disability Retired Pay concurrently with DVA Disability Compensation. The Qualified Career Disability Retiree continues to receive Title 10, U.S.C., Chapter 61 Disability Retired Pay. The nature of the Title 10, U.S.C., Chapter 61 Disability Retired Pay is not changed because Career Disability Retiree becomes a Qualified Retiree under 10 U.S.C. § 141

2.3.4. Special Rules for Qualified Career Disability Retirees. The law limits the amount of Chapter 61 Disability Retired Pay that remains subject to the General Waiver Requirement. Specifically, a Career Disability Retiree receiving Title 10, U.S.C., Chapter 61 Disability Retired Pay must waive Chapter 61 Disability Retired Pay, but only to the extent that the amount of Chapter 61 Disability Retired Pay exceeds the amount of hypothetical longevity retired pay to which the member would have been entitled under any other provision of law if the member had not been retired for disability under Title 10, U.S.C., Chapter 61. After application of the limited general waiver requirement, a Qualified Career Disability Retirees will receive their Chapter 61 Disability Retired Pay in an amount equal to the dollar amount of hypothetical longevity retired pay. In cases where a Qualified Career Disability Retiree’s hypothetical retired pay computation exceeds their Title 10, U.S.C., Chapter 61 Disability Retired Pay (based on percentage of disability), the General Waiver Requirement does not apply.

——-

Comment: 2.3.4. The disability retired pay for the Qualified Career Disability Retirees is limited to the hypothetical longevity retired pay. The amount in excess of the hypothetical longevity retired pay must be wavived.
His/her entitlement is:
—FULL amount of VA compensation
—disability retired pay in the amount of the hypothetical longevity amount

_______

REFERENCE:
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 64
* February 2023

VOLUME 7B, CHAPTER 64: “CONCURRENT MILITARY RETIREMENT PAY
AND DEPARTMENT OF VETERANS AFFAIRS (DVA) DISABILITY
COMPENSATION”

Ron
 
Last edited:
Ron,

All the references seem to be saying the same thing.

English for the layman:
Chapter 61 “Disability” Method A cannot exceed Hypothetical Longevity aka Normal base pay calculated using Chapter 61 Method B or the excess Delta must be waived to receive VA Disability.
 
Ron,

All the references seem to be saying the same thing.

English for the layman:
Chapter 61 “Disability” Method A cannot exceed Hypothetical Longevity aka Normal base pay calculated using Chapter 61 Method B or the excess Delta must be waived to receive VA Disability.
Hi,

I agree. The FMRs include info from the various applicable laws. The laws are summarized at the end of each chapter I believe.

“English for the layman” is right. Some written laws seem to be in the style of 17th Century English.

Thank you for your input.

Ron
 
Official DFAS Medical Retirement Calculator (high 3)

Hello,

Thank you.

We generally ask for the retiree's Gross Retired Pay on the DFAS RAS and divide that amount by disability percentage = contemporary high three
Example
: $5000 gross on RAS / 60% DoD disability = 8333.33 contemporary high three
The formula could work for longevity if it was higher, Gross retired pay / longevity percentage.

The calculator you suggested will likely help many.

Ron
 
I plugged in high 3, O6, 42 years of service, and the it accurately calculated both:
Method A - Disability at $10,210
Method B - Longevity at $14,123

I believe you can get the calculator to also show your VA Disability on a combined chart!

-Pat
 
I plugged in high 3, O6, 42 years of service, and the it accurately calculated both:
Method A - Disability at $10,210
Method B - Longevity at $14,123

I believe you can get the calculator to also show your VA Disability on a combined chart!

-Pat
Note I changed my DOD disability rating (unknown) to 50% and it dropped my Method A - Disability to $6,806
 
Thank you for testing the calculator.

I like to do them manually, as it is my form of a crossword puzzle.

In 1967, I was computing Army payrolls manually. Not necessarily the good old days...

Ron
 
Thank you for testing the calculator.

I like to do them manually, as it is my form of a crossword puzzle.

In 1967, I was computing Army payrolls manually. Not necessarily the good old days...

Ron
To confirm:

I plan on using Longevity - Method B.

With over 42 years of service, as long as my DOD Disability is 30% or higher I qualify for PDRL Chapter 61 and Longevity method results in MAX O6 (high three) Medical Retirement.

Disability method -A result is all over the place depending on DOD Disability % and is Thousands less for me!
 
Ron,

If I stick with Longevity method = $14,123 and enter that on the RAS is that my final Medical Retirement Pay result or do you make further changes to that figure?

My VA Disability is 100% so I already have that information from the VA.

-Pat
 
Ron,

If I stick with Longevity method = $14,123 and enter that on the RAS is that my final Medical Retirement Pay result or do you make further changes to that figure?

My VA Disability is 100% so I already have that information from the VA.

-Pat
Ron,

Last question:
My attorney is getting advice from someone named Doug who is supposed to be the lead trainer at DFAS. Doug is telling my attorney I should waive out of my medical board because PRDL Chapter 61 LONGEVITY and DISABILITY methods are capped at 75% or 30 years?!?

I stated over and over I am doing PRDL Longevity not Disability and that the 2007 NDAA removed the 75% cap on the LONGEVITY Method B.

Sent all the references…. My attorney keeps saying I need to waive out of my MEB/PEB?? Doug keeps telling her I will be capped 75%??

Do you know what “Doug” is talking about? Am I missing something?
 
Ron,

Last question:
My attorney is getting advice from someone named Doug who is supposed to be the lead trainer at DFAS. Doug is telling my attorney I should waive out of my medical board because PRDL Chapter 61 LONGEVITY and DISABILITY methods are capped at 75% or 30 years?!?

I stated over and over I am doing PRDL Longevity not Disability and that the 2007 NDAA removed the 75% cap on the LONGEVITY Method B.

Sent all the references…. My attorney keeps saying I need to waive out of my MEB/PEB?? Doug keeps telling her I will be capped 75%??

Do you know what “Doug” is talking about? Am I missing something?
I do not know the basis for Doug’s comment. I did not see the limitation regarding longevity except :
2.3.4. Special Rules for Qualified Career Disability Retirees. The law limits the amount of Chapter 61 Disability Retired Pay that remains subject to the General Waiver Requirement. Specifically, a Career Disability Retiree receiving Title 10, U.S.C., Chapter 61 Disability Retired Pay must waive Chapter 61 Disability Retired Pay, but only to the extent that the amount of Chapter 61 Disability Retired Pay exceeds the amount of hypothetical longevity retired pay to which the member would have been entitled under any other provision of law if the member had not been retired for disability under Title 10, U.S.C., Chapter 61. After application of the limited general waiver requirement, a Qualified Career Disability Retirees will receive their Chapter 61 Disability Retired Pay in an amount equal to the dollar amount of hypothetical longevity retired pay. In cases where a Qualified Career Disability Retiree’s hypothetical retired pay computation exceeds their Title 10, U.S.C., Chapter 61 Disability Retired Pay (based on percentage of disability), the General Waiver Requirement does not apply.

___

I have no PERSONAL experience with the PEB or MEB so I cannot comment on getting out of the disability process.
Also, I did not find a limitation on longevity, BUT that does not mean it does not exist. However, I do not think it does.
Maybe you can talk to the mysterious “Doug” and your attorney might be able to facilitate that discussion.

Your situation is the first I have seen with the large longevity…

Good luck,
Ron

Edited to add:

This DoD site states the max percentage is 75% for both computations:
Disability Retirement <—-LINK


Disability Retirement​

Disability retirement is sometimes called Chapter 61 retirement, since the law governing such a retirement is in Chapter 61 of title 10 United States Code. Members who have been determined to be unfit for duty with a disability rated by the military Service as 30% or greater are eligible for disability retirement. A member whose condition is not stable may be placed on the temporary disability retired list (TDRL) for up to five years at which point they must be either discharged, retired or returned to duty. Members whose condition has stabilized at a disability rating of 30% or higher may be placed on the permanent disability retired list (PDRL).

The basic retirement formula is:
Retired Pay Base X Multiplier %

The retired pay base for a qualified disability retirement is determined under either the final pay method or the high-36 month method depending upon when they first entered military service. See Retirement tab for details.
The multiplier percentage is at the option of the member who may chose either the percentage of disability assigned or the years of creditable service times 2½%. In either case, the multiplier is limited to 75% by law.
In the case of a member on the TDRL, the minimum percentage is 50% while on the TDRL.
 
Last edited:
Top