Hi, I have a question I hope someone can help me with. I was medically retired in December. I was in 21 years and I decided to take time in service retirement versus the 20% offered. I sent my claim to the VA and I received my rating back today. I was rated at 80% service connected disability. I was wondering if anyone knew how this was going to affect my current retirement pay? And how the va payment works. I'm confused about how it works. Anyone who has any information, I would appreciate if you could help. Thanks in advance!
VA rating @ 80%
- Thread starter parmer
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Parmer,
Congratulations on the 80% rating! This link here
Compensation Rate Table - Effective 12/1/08 (U.S. Department of Veterans Affairs)
shows the current benifits rates based on your rating and also whether you are single, married, have kids, etc. As a 20 year retiree, your VA rating should progressively become concurrent to your regular retirement. I think DOD has been phasing it in so that you can receive all of your retirement, and also your VA rated pay at the same time. It started in something like 2004 with 10% of your VA benifits being concurrent to your retirement, and then goes up each year by 10%. So right now, all things being equal, you should see something in the neighborhood of 50% of your VA rating benifits plus all of your regular retirement. If I understand it right, most everyone agreed it was crap to take away, dollar for dollar, your retirment in order to get VA pay, but it amounted to ALOT of money for the GOV to come up with, so they are "phasing it in" over time.
Lemme preach on it:
If your regular retirement right now is $2000 (just an example) and you are rated at 80%, assuming you have no kids and no spouse (and no parent living with you), you could stand to see $1427 from the VA. I THINK the concurrent rate is 50% (somebody correct me here), which means you would get $2000 in regular retirement and about $713 from the VA in pay ($2713 total) of which only $563 is actually now taxable.
Look at the charts and figure out your rating for your situation,...add roughly half of that to your regular retirement, and you have your pay. Subtract ALL of that VA benifit rate from your regular retirement and you have the amount of TAXABLE income.
Ok, bout to get a nose bleed here. If I am way off, somebody smack me. I hope this helps more than it confuses!
Pretty good review of the CDRP right here as well
http://www.military.com/benefits/military-pay/retired-pay/retired-concurrent-receipt-overview
Congratulations on the 80% rating! This link here
Compensation Rate Table - Effective 12/1/08 (U.S. Department of Veterans Affairs)
shows the current benifits rates based on your rating and also whether you are single, married, have kids, etc. As a 20 year retiree, your VA rating should progressively become concurrent to your regular retirement. I think DOD has been phasing it in so that you can receive all of your retirement, and also your VA rated pay at the same time. It started in something like 2004 with 10% of your VA benifits being concurrent to your retirement, and then goes up each year by 10%. So right now, all things being equal, you should see something in the neighborhood of 50% of your VA rating benifits plus all of your regular retirement. If I understand it right, most everyone agreed it was crap to take away, dollar for dollar, your retirment in order to get VA pay, but it amounted to ALOT of money for the GOV to come up with, so they are "phasing it in" over time.
Lemme preach on it:
If your regular retirement right now is $2000 (just an example) and you are rated at 80%, assuming you have no kids and no spouse (and no parent living with you), you could stand to see $1427 from the VA. I THINK the concurrent rate is 50% (somebody correct me here), which means you would get $2000 in regular retirement and about $713 from the VA in pay ($2713 total) of which only $563 is actually now taxable.
Look at the charts and figure out your rating for your situation,...add roughly half of that to your regular retirement, and you have your pay. Subtract ALL of that VA benifit rate from your regular retirement and you have the amount of TAXABLE income.
Ok, bout to get a nose bleed here. If I am way off, somebody smack me. I hope this helps more than it confuses!
Pretty good review of the CDRP right here as well
http://www.military.com/benefits/military-pay/retired-pay/retired-concurrent-receipt-overview
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Read this thread: http://www.pebforum.com/concurrent-retirement-disability-pay-crdp/6855-determine-your-crdp.html
Your restoration of retired pay is capped at the amount you would receive under a length of service calculation.
Your restoration of retired pay is capped at the amount you would receive under a length of service calculation.
. I'll have to wait and see what it all means. I hope I don't lose all my retirement pay...
Congrats Parmer,
Since you are eligible for CRDP you will pay some back but the amount adjusts down every year. How were you notified of the VA rating? Did it include a summary of payments with adjustments?
My wife also retired as an E7 with 21 years but slightly lower rating. Her first year’s CRDP adjustment is less than $200 a month and like I said it goes down each year.
The VA withheld the CRDP amount from the retroactive payment (from retirement to award) and her first monthly payment and then DFAS took it over the following month (so this month’s VA payment is full and her retired pay is less the CRDP amount).
In the end she’s getting around 90% of her retried pay and her full VA payment.
I hope this helps.
Congrats again and take care
p.s. Each state is different but most have tax exemptions (property, auto, etc) depending on VA ratings. In most cases you have to apply for them but it could be money back in your pocket.
Since you are eligible for CRDP you will pay some back but the amount adjusts down every year. How were you notified of the VA rating? Did it include a summary of payments with adjustments?
My wife also retired as an E7 with 21 years but slightly lower rating. Her first year’s CRDP adjustment is less than $200 a month and like I said it goes down each year.
The VA withheld the CRDP amount from the retroactive payment (from retirement to award) and her first monthly payment and then DFAS took it over the following month (so this month’s VA payment is full and her retired pay is less the CRDP amount).
In the end she’s getting around 90% of her retried pay and her full VA payment.
I hope this helps.
Congrats again and take care
p.s. Each state is different but most have tax exemptions (property, auto, etc) depending on VA ratings. In most cases you have to apply for them but it could be money back in your pocket.
Naaa you would have had to have been in the guard to lose your retirement pay but only until you are 60.
Thank you all for the information. It looks like after a year of worrying and waiting, that I made out okay after all. I am thrilled with my rating...I only expected about 40%. I should receive my full packet in the mail next week and I will get to see exactly what the breakdown is going to be. This forum kept me sane through the process and I will continue to keep up on what everyone is doing. Again..thanks to all.