DFAS is screwing my TDRL pay

C

CorporaHernandez

PEB Forum Regular Member
Registered Member
I was placed on the TDRL on 31 Jan 2009. I have a 30% rating from the Marine Corps. My disability is combat related. I am getting my pay taxed. What can I do I was told that my retired pay would not be taxed. Am I incorrect or are they? I called already but they keep telling me to apply for CRSC. I was like wtf? I told the lady that was something completely different from what I was asking. Anyone know how to fix this. Also what are the methods of calculating the retired pay. They did mine with the HIGH3 thing. I was told I would receive the 50% from my base pay at separation. Any info is appreciated.
 
I was only in the Marine Corps for about 4and a half years. I dont understand why they used the hi3 to calculate my retirement.
 
I thought I was supposed to get 50 percent of my base pay at retirement. The lady I talked to there was a complete idiot. She did not know anything about what I was talking about. I also had to wait an hour on hold.:mad:
 
o.k. lets get this squared away by the steps. first off, you said you were placed on tdrl on Jan 29. i'm assuming that was in 2008, if so, are you already getting paid?? if not, then you called DFAS recently, and theres no record of your pay being entered,at 30% you will get 50% while on the TDRL. BUT!! you have to apply for CRSC through the USMC in order for your pay to be tax free, as it is combat related. YOU yourself has to do this, your service wont apply for you. they will however give you CRDP automatically, which is taxable, but you cant have both. heres the fix...download a DD 2860 (application for CRSC) attach all your documents which are listed on the application,retirement orders,3349, DA 199,purple heart orders, everything,, and send it to the USMC (address is listed on the form) they in turn will forward therequest to DFAS (when the USMC approves your application)and if it its shown your injuries have a casual relationship to combat, your money will be tax free. also to collect concurrent pay from the V.A. and the Marine Corps, you still have to apply for CRSC , which is outlined in the 2008 national defence authorization act. this is for all service members. the high 3 you spoke of is "by law" if you entered the military prior to aug 1980, your pay is calculated by the highest rank held satisfactorily. if you joined the service after august 1980, your pay is calculated by your last 3 years average pay. hope this helps. i feel confident in stating this that if you were retired Jan 2008, and apply for CRSC, everything should be fine. dont put it off. it may take up to 60 days for the Marines and DFAS to get everything plugged in. I'm in the same boat except i first joind the USMC in 1979, and therefore paid as an E8, my highest rank held. good luck.my retirement date becomes effective 27 Feb,09. i called DFAS last week and was told the same thing, apply for CRSC, which i had sent it off already as soon as i got my orders in my hands. i have yet to get paid yet, but the military side should be looking at my application pretty soon. the military (as i was told by DFAS last week) pays one month behind, so if you retired Jan 2008, i wouldnt expect anything until atleast march 09....good luck.... Martin
 
martin said:
o.k. lets get this squared away by the steps. first off, you said you were placed on tdrl on Jan 29. i'm assuming that was in 2008, if so, are you already getting paid?? if not, then you called DFAS recently, and theres no record of your pay being entered,at 30% you will get 50% while on the TDRL. BUT!! you have to apply for CRSC through the USMC in order for your pay to be tax free, as it is combat related. YOU yourself has to do this, your service wont apply for you. they will however give you CRDP automatically, which is taxable, but you cant have both. heres the fix...download a DD 2860 (application for CRSC) attach all your documents which are listed on the application,retirement orders,3349, DA 199,purple heart orders, everything,, and send it to the USMC (address is listed on the form) they in turn will forward therequest to DFAS (when the USMC approves your application)and if it its shown your injuries have a casual relationship to combat, your money will be tax free. also to collect concurrent pay from the V.A. and the Marine Corps, you still have to apply for CRSC , which is outlined in the 2008 national defence authorization act. this is for all service members. the high 3 you spoke of is "by law" if you entered the military prior to aug 1980, your pay is calculated by the highest rank held satisfactorily. if you joined the service after august 1980, your pay is calculated by your last 3 years average pay. hope this helps. i feel confident in stating this that if you were retired Jan 2008, and apply for CRSC, everything should be fine. dont put it off. it may take up to 60 days for the Marines and DFAS to get everything plugged in. I'm in the same boat except i first joind the USMC in 1979, and therefore paid as an E8, my highest rank held. good luck.my retirement date becomes effective 27 Feb,09. i called DFAS last week and was told the same thing, apply for CRSC, which i had sent it off already as soon as i got my orders in my hands. i have yet to get paid yet, but the military side should be looking at my application pretty soon. the military (as i was told by DFAS last week) pays one month behind, so if you retired Jan 2008, i wouldnt expect anything until atleast march 09....good luck.... Martin
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Thank you for your input I appreciate it. Thanks 1stSgt/MSgt dont know which. I guess I should have been clearer. I was officially transferred to the TDRL on 31 January 2009. I already have a forecasted amount on Mypay for March. Is that fast or something?
 
Your pay should be tax free. I assume you had a combat related finding for one or more conditions from the PEB. This tax free status is independent of CRSC, which works to restore VA compensation "offset" of DoD pay. For CRSC to apply, you need to have a VA award. This is not to say you should not file for CRSC if eligible. It will be retroactive, if awarded.

I would keep working on DFAS, that is where the problem lies.
 
If your disability is 50% or more you get CRDP (concurrent retirement and disability pay) so that you can get both the TDRL (retirement pay) and the VA compensation. OR in your case you can apply for Combat Related Special Compensation (CRSC) and you can get that with the VA compensation.

VA compensation is not taxable; your retiree pay is taxable. The CRSC is supposed to make up for the fact that some people's VA compensation is lower than the retirement pay. You can choose to take the retirement pay OR the VA compensation-at some point you would have signed some kind of waiver that said you were forfeiting your retirement pay to get your VA compensation-I think it was part of the VA comp application. Does that make sense? Talk to your county veteran service officer-that is what they are there to do-help you. Any other questions I will try to answer if not, I generally know where to go to get info. Good Luck!

In our situation, my husband was rated at 70% but they gave tried to screw him on the CRSC and other programs because all his orders/papers says that it was not related to combat, etc. You don't go to Iraq twice, come home and exhibit all the signs of PTSD and then say "no it was your civilian experiences"-not the fact that you spent over 2.5 years of your life in a combat zone as infantry! In our situations his retiree pay is WAY less than the VA comp should be so we will take that option-have not seen any money yet from either though. Thank God for social security disability or we would have NO pay! We will apply for the CRSC anyway maybe they will disregard what the Army said on paperwork since the VA knows that the Army is full of crap anyway-about 80% of the Army are incompetent, idiots. :( I too am a combat veteran (Army) so for those reading this don't get your panties in a bundle, been there done that!
 
The method they use for calculating your retirement pay when you are placed on the TDRL is part of Title 10, Chapter 61 (section 1401 )-check out this link http://uscode.house.gov/download/pls/10C61.txt. It is a little bit of legal mumbo jumbo but this is what governs how things are done, pay is calculated, etc. Its very specific and if you have any quesitons about it, contact a senator or house representative for your state-its thier civic duty to answer your questions. Sometime it seems like It was just some idiot that chose how to pay you, often civilians working for the military act as though they were the end all be all. But,its all regulated by the congress. Here is chapter 61, its easier to read on the website than here.

CITE-
10 USC Sec. 1201 01/03/2007-EXPCITE- TITLE 10 - ARMED FORCES Subtitle A - General Military Law PART II - PERSONNEL CHAPTER 61 - RETIREMENT OR SEPARATION FOR PHYSICAL DISABILITY-HEAD- Sec. 1201. Regulars and members on active duty for more than 30 days: retirement-STATUTE- (a)Retirement. - Upon a determination by the Secretary concerned that a member described in subsection (c) is unfit to perform the duties of the member's office, grade, rank, or rating because of physical disability incurred while entitled to basic pay or while absent as described in subsection (c)(3), the Secretary may retire the member, with retired pay computed under section 1401:) of this title, if the Secretary also makes the determinations with respect to the member and that disability specified in subsection (b). (b) Required Determinations of Disability. - Determinations referred to in subsection (a) are determinations by the Secretary that - (1) based upon accepted medical principles, the disability is of a permanent nature and stable; (2) the disability is not the result of the member's intentional misconduct or willful neglect, and was not incurred during a period of unauthorized absence; and (3) either - (A) the member has at least 20 years of service computed under section 1208 of this title; or(B) the disability is at least 30 percent under the standard schedule of rating disabilities in use by the Department of Veterans Affairs at the time of the determination; and either - (i) the member has at least eight years of service computed under section 1208 of this title; (ii) the disability is the proximate result of performing active duty; (iii) the disability was incurred in line of duty in time of war or national emergency; or (iv) the disability was incurred in line of duty after September 14, 1978. (c) Eligible Members. - This section and sections 1202 and 1203 of this title apply to the following members: (1) A member of a regular component of the armed forces entitled to basic pay. (2) Any other member of the armed forces entitled to basic pay who has been called or ordered to active duty (other than for training under section 10148(a) of this title) for a period of more than 30 days. (3) Any other member of the armed forces who is on active duty but is not entitled to basic pay by reason of section 502(b) of title 37 due to authorized absence (A) to participate in an educational program, or (B) for an emergency purpose, as determined by the Secretary concerned.
 
Remember, CRDP is currently only for those members with 20 years or more of service (there are some rare exceptions, e.g., those retired at 15 years under Temporary Early Retirement Authority).
 
smritcheyMN said:
If your disability is 50% or more you get CRDP (concurrent retirement and disability pay) so that you can get both the TDRL (retirement pay) and the VA compensation. OR in your case you can apply for Combat Related Special Compensation (CRSC) and you can get that with the VA compensation.

VA compensation is not taxable; your retiree pay is taxable. The CRSC is supposed to make up for the fact that some people's VA compensation is lower than the retirement pay. You can choose to take the retirement pay OR the VA compensation-at some point you would have signed some kind of waiver that said you were forfeiting your retirement pay to get your VA compensation-I think it was part of the VA comp application. Does that make sense? Talk to your county veteran service officer-that is what they are there to do-help you. Any other questions I will try to answer if not, I generally know where to go to get info. Good Luck!

In our situation, my husband was rated at 70% but they gave tried to screw him on the CRSC and other programs because all his orders/papers says that it was not related to combat, etc. You don't go to Iraq twice, come home and exhibit all the signs of PTSD and then say "no it was your civilian experiences"-not the fact that you spent over 2.5 years of your life in a combat zone as infantry! In our situations his retiree pay is WAY less than the VA comp should be so we will take that option-have not seen any money yet from either though. Thank God for social security disability or we would have NO pay! We will apply for the CRSC anyway maybe they will disregard what the Army said on paperwork since the VA knows that the Army is full of crap anyway-about 80% of the Army are incompetent, idiots. :( I too am a combat veteran (Army) so for those reading this don't get your panties in a bundle, been there done that!
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smrictchey,
I know you have done a lot of research and in your case you may be correct, BUT:
While VA is never taxable. "DoD disability retirement is not taxable if the unfitting condition is combat related" or if the individual was obligated to join the military on or before Sept 24 (?), 1975. Not to many of the later left in service. ;)​
 
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