CH 61 CRSC Getting Hosed?

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SenorSucio

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I have been corresponding with a pay tech whom i think has miscalculated my CRSC. Am i wrong?

I'm a CH 61 retiree 30%. E6 with 10 years 4 months service. My high 3 is 2,600.

My VA rating is 100% P/T

My CRSC rating is 20%

I am receiving $155 for CRSC. Should i not be receiving $264.00? I have never received a penny of retired pay. It has always been

waived due to my 100% VA compensation. The system output by the pay tech is here:

Here's the system jargon for determining your CRSC amount:

VA Compensation (780) = Min of Retired Pay (780), and VA Compensation (3623.74).
Member has a disability and the disability % (0.3000) is greater than the longevity multiplier (0.2583).
ARP = (Gross Retired Pay / Disability) * Longevity Multiplier, truncate to the nearest penny.
671.58 = (780 / 0.3000) * 0.2583.
EDRP = Gross Retired Pay - ARP.
108.42 = 780 - 671.58.
CRSC = Min Value Between VA Compensation Amount and Tentative CRSC.
155.60 = Min(780, 155.60).

The simplest explanation is that the 20% VA disability dollar amount of $264.02 is for those with over 20 years of service. The dollar amount is essentially prorated to match your time of service.

Copied from your email:
1. My longevity portion is 780.00 div by 30% = $2600 retired pay base pay (high three)
My comment: Yes, sir. This is correct.
2. 10 yrs 4 mo = 10.333; 10.333 x 2.5% = 25.83
My comment: Also correct.
3. $2600 x 0.2583 = $672 longevity portion of retired pay
My comment: 2600 x 0.2583 = 671.58 (we don't round up on this one)
4. The CRSC rate approved by the service is 20%, it is around $263, That is the lesser?
My comment: The dollar amount is set by the VA. For 20%, it is 264.02 with or without dependents (https://www.benefits.va.gov/compensation/resources_comp01.asp), which is what one would receive with at least 20 years of service.

Since your longevity is less than your disability percentage, you receive a portion of the dollar amount set by the VA.

Following your steps of 1, 2, and 3, here's the remaining math:

4. Gross retired pay - Retired pay based upon years of service = EDRP
780 - 671.58 = 108.42 EDRP
5. Combat Related Specialty Compensation - EDRP = member's CRSC pay
264.02 - 108.42 = 155.60
 
Unfotunately, it looks like they are correct...

Retired pay based on years of service: 2600 x .2583 = 671
Retired pay based on disability: 2600 x .30 = 780
CRSC offset (Disability amt - YOS amount): 780 - 671 = 109
CRSC Entitlement (CRSC Award - CRSC offset): 264 - 109 = 155

it is wierd thought, because when you use the DFAS disability retirement calculator it shows yours CRSC should be 264. I don't know how much to trust the calculator though.
 
CHAPTER 61 DISABILITY RETIREES WITH 20 OR MORE YEARS OF SERVICE: Qualifying applicants who are receiving retired pay based on a percentage of disability under Chapter 61, who have 20 years or more service creditable for purposes of computing the amount of retired pay (see section 1208 of title 10, United States Code) and who initially apply for CRSC on or after January 1, 2008, shall have their CRSC entitlement reduced by the amount, if any, that the retired pay under Chapter 61 exceeds the amount of retired pay to which the member would have been entitled under any other provision of law based on the member's service in the uniformed services if the member had not been retired under Chapter 61. Applicants who accepted the Career Status Bonus will have the reduced amount calculated based on retired pay that would otherwise have been computed under section 1409(b)(2) of title 10, United States Code.

CHAPTER 61 DISABILITY RETIREES WITH FEWER THAN 20 YEARS OF SERVICE: Qualifying applicants who are receiving retired pay based on a percentage of disability under Chapter 61, who have fewer than 20 years of service creditable for purposes of computing the amount of retired pay (see section 1208 of title 10, United States Code) and who initially apply for CRSC on or after January 1,2008, shall have their CRSC entitlement reduced by the amount, if any, resulting from the following formula:

Member's disability retired pay under chapter 61 less the amount equal to 2.5 percent times the years of creditable service multiplied by the member's applicable retired pay base.

The years of creditable service are those described in section 1208 of title 10, United States Code. The applicable retired pay base for an applicant who first became a member before September 8, 1980, is the pay base described in the table under section 1406(b)(1) of title 10 United States Code, for a member entitled to disability retired pay. The retired pay base for an applicant who first became a member on or after September 8, 1980, is the member's high 36 months of basic pay as determined under section 1407 of title 10, United States Code.

In some cases, where the Chapter 61 disability retired pay is based on a relatively high percentage of disability and the years of creditable service are relatively few, the computation may result in little or no CRSC due.

Simplified...
CRSC is calculated in two ways depending on how your Chapter 61 retirement is calculated:

If your retirement is based on Length of Service, your CRSC is calculated like any other retired member.

If your retirement is based on your DOD disability percentage, then there is an offset.

In no case can CRSC exceed whatever your waiver is to receive VA compensation.

Try these:

https://www.dfas.mil/dam/jcr:b6204e5f.../RetiredDisabilityIncomeEstimator.pptx

davebarker.portalone.us/CRSC_Calc.xls
 
DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017

[Change in computation for CRSC for Chapter 61 with less than 20 years credible service]

Reduction for periods prior to January 1, 2013

Members retired for disability under 10 U.S.C., Chapter 61 with less than 20 years of creditable service computed under 10 U.S.C. § 1208 and who initially qualify for CRSC on or after January 1, 2008, will have the maximum CRSC payment reduced by the amount, if any, by which the amount of the member’s gross retired pay under Chapter 61 exceeds the amount that is equal to 2½ percent of the member’s years of creditable service multiplied by the member’s retired pay base under 10 U.S.C. § 1406(b)(1) or 10 U.S.C. § 1407, whichever is applicable to the member. [end of reduction info for <20 years prior to January 1. 2013]

Reductions for periods on or after January 1, 2013

Members retired for disability under 10 U.S.C., Chapter 61, with less than 20 years of creditable service computed under 10 U.S.C. § 1208, and who are qualified for CRSC, on or after January 1, 2013, will have the maximum CRSC payment restrictions. The CRSC payment amount, which when combined with any remaining retired pay after VA offset, will not exceed the amount that is equal to 2½ percent of the member’s years of creditable service multiplied by the member’s retired pay base under 10 U.S.C. § 1406(b)(1) or 10 U.S.C. § 1407, whichever is applicable to the member.

Please note the difference in computation between "Prior to January, 2013" and "On or After January 1, 2013." The davebarker reference from several years ago does not address that change.
 
SenorSucio said:
I have waived all retired pay. I receive none just VA comp. I thought the glitch fixed this?
Click to expand...
See post number 5. The remarks (quotations) discuss the change in computation effective 1 January 2013.

Regards,
 
bleacherspy said:
Nice!
Click to expand...
Thank you.

It is just excerpts from DoD 7000.14-R Financial Management Regulation Volume 7B, Chapter 63 * October 2017 .

The quotation you provided appears to have been authored (presented) by TinCanMan, Jun 29, 2008 and was accurate at the time. As mentioned earlier, a major change was enacted effective 1 January 2013.
 
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