TERA versus Ch. 61

S

SD_Brewer

PEB Forum Regular Member
Registered Member
I have a question for those more knowledgeable than myself. The situation is as follows.
- TIS: 15.4 years, AD, USMC, E7, high 3 is $4241
- In the PEB process with proposed ratings of DoD 70% & VA 100%
- All is combat-related so hypothetically would qualify for CRSC.
- What are the advantages/disadvantages of each and which would be the better election?

If anyone could help with dissecting the differences in overall compensation as well as whether there are any other benefits such as PDRL vice TDRL or P&T. Thank you.
 
1. TERA retired pay is initially computed using the length of service retirement formula. It is then multiplied by a reduction factor based on the number of months the retiree is short of 20 years. Active duty pay x Percent Multiple x Reduction Factor = TERA Retired Pay
TERA gross retired pay is also still rounded down to the nearest dollar. A retiree with a 50% VA rating is eligible for CRDP under TERA. The TERA forumula is used to compute the CRDP.

2. Disability retirement with less than 20 years active duty.
Disability retirement percentage x high three average base pay = DoD disability retired pay
The retired pay is reduced by the amount of VA compensation. Understanding the VA Waiver and Retired Pay/CRDP/CRSC <---LINK
There is no entitlement to CRDP.
Note: A reservist with 20 good years can become eligible for CRDP upon reaching the reserve retirement age requirement (~60).

3. CRSC replaces some or all of reduced/waived retired pay. See CRSC Collection of Info <----

Comment: Being eligible for CRDP is a significant benefit over the potential lifetime of a retiree.

Ron
 
SD_Brewer,

You have asked questions that pertain to several different laws. The title of your post is "TERA versus Ch. 61"


Case.
I have a question for those more knowledgeable than myself. The situation is as follows.
- TIS: 15.4 years, AD, USMC, E7, high 3 is $4241
- In the PEB process with proposed ratings of DoD 70% & VA 100% [amount of VA comp not shown nor number/categories of deps]
- All is combat-related so hypothetically would qualify for CRSC.
- What are the advantages/disadvantages of each and which would be the better election?

If anyone could help with dissecting the differences in overall compensation as well as whether there are any other benefits such as PDRL vice TDRL or P&T. Thank you.

Estimate DoD retired pay.
1. 4241 x 0.70 = 2968.70 retired pay
2. 2968.70 reduced by guess VA comp 3000 = zero retired pay remaining
3. No CRDP
4. 15.333 active duty years (note: 0.4 is not 4 months; I assume you meant 4 mo) x 0.025 = 38.33% longevity multiplier
5. 4241 x 0.3833 = 1625.58 longevity portion of retired pay
6. Your CRSC would be the lesser of 1625.58 OR the amount found in the VA compensation tables for the approved CRSC percentage.

Estimate TERA.
1. 15.33 active duty years (note: 0.4 is not 4 months) x 0.025 = 38.33% longevity multiplier
2. 38.33% longevity multiplier x 4241 = 1625.58 x 0. 95333 = 1549.71 TERA amount
The reduction factor is based on 15 years and 4 months (rounded) or 15 * 12 + 4 = 184 months. The applicable reduction factor corresponds to the table entry for 240 – 184 = 56 months. Therefore, 0.95333 is the applicable reduction factor. See this LINK <---
[This is a rough estimate.]
3. CRDP will allow the payment of 1549.71
4. If you chose CRSC, your CRSC would be the lesser of 1549.71 OR the amount found in the VA compensation tables for the approved CRSC percentage.
All your retired pay would be waived.

Ron
 
RonG said:
SD_Brewer,

You have asked questions that pertain to several different laws. The title of your post is "TERA versus Ch. 61"


Case.
I have a question for those more knowledgeable than myself. The situation is as follows.
- TIS: 15.4 years, AD, USMC, E7, high 3 is $4241
- In the PEB process with proposed ratings of DoD 70% & VA 100% [amount of VA comp not shown nor number/categories of deps]
- All is combat-related so hypothetically would qualify for CRSC.
- What are the advantages/disadvantages of each and which would be the better election?

If anyone could help with dissecting the differences in overall compensation as well as whether there are any other benefits such as PDRL vice TDRL or P&T. Thank you.

Estimate DoD retired pay.
1. 4241 x 0.70 = 2968.70 retired pay
2. 2968.70 reduced by guess VA comp 3000 = zero retired pay remaining
3. No CRDP
4. 15.333 active duty years (note: 0.4 is not 4 months; I assume you meant 4 mo) x 0.025 = 38.33% longevity multiplier
5. 4241 x 0.3833 = 1625.58 longevity portion of retired pay
6. Your CRSC would be the lesser of 1625.58 OR the amount found in the VA compensation tables for the approved CRSC percentage.

Estimate TERA.
1. 15.33 active duty years (note: 0.4 is not 4 months) x 0.025 = 38.33% longevity multiplier
2. 38.33% longevity multiplier x 4241 = 1625.58 x 0. 95333 = 1549.71 TERA amount
The reduction factor is based on 15 years and 4 months (rounded) or 15 * 12 + 4 = 184 months. The applicable reduction factor corresponds to the table entry for 240 – 184 = 56 months. Therefore, 0.95333 is the applicable reduction factor. See this LINK <---
[This is a rough estimate.]
3. CRDP will allow the payment of 1549.71
4. If you chose CRSC, your CRSC would be the lesser of 1549.71 OR the amount found in the VA compensation tables for the approved CRSC percentage.
All your retired pay would be waived.

Ron
Click to expand...
Thank you Ron. I apologize if my title was misleading. I’m just trying to make sense of this all and choose the best option. I appreciate your detailed responses!
 
My opinion of TERA. I was MEB boarded and ch 61 retired at 17.5 years. If I had qualified for TERA, I would be making more than 1k per month for life. I wasn’t able to apply for TERA due to the Army policy on Tera at the time. Had I received a dui, or relief for cause Officer evaluation report, I would have been selected for the officer separation board and thus retired under terA.

so in my case being a shitbag officer would have paid me much more than being a sick/ill officer doing his best to try and make it...
 
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